College Has Become a Wealth Destroyer

Chart of the Week #64

Earlier this week, Doug Casey and Matt Smith's revolutionary vision for what young men should do instead of going to college finally came out in "The Preparation."

The timing couldn't be better. Because right now, we're witnessing the complete implosion of the higher education system—and the numbers are absolutely staggering.

You've probably heard that young people today graduate with unprecedented debt loads. But seeing the actual trajectory is still shocking. Just take a look at this chart.

From 2006 to 2024 alone, average student debt jumped from $17,297 to $37,850—more than doubling in less than two decades.

And here’s the thing. Plenty of students are actually walking away with $60,000, $80,000, or even six-figure debt loads. Why? First, they're chasing prestige at increasingly expensive elite colleges where annual costs can easily top $70,000. Second, more students are pursuing graduate degrees—master's programs, law school, MBA programs—piling debt upon debt in the belief that more education equals better prospects.

Think about that for a moment. We're asking 18-year-olds—who can't even rent a car without a co-signer—to make financial decisions that will haunt them for decades. Except unlike a house, which appreciates and can be sold, or a car that at least provides transportation, a college degree can't be returned, traded, or discharged in bankruptcy.

And here's the real kicker: this debt explosion hasn't made graduates more employable or financially successful. If anything, it's created a generation of debt slaves who spend their twenties and thirties paying for an education that didn't prepare them for the real world.

But the individual tragedy is just the beginning. The systemic damage is far worse. Look at this second chart showing total outstanding student debt.

In just twenty years, we've gone from about $500 billion to $1.8 trillion in outstanding student loan debt. This makes it the second-largest category of consumer debt after mortgages. That's more than credit cards. More than auto loans. It's a number so large it's hard to comprehend.

This isn't just money that students owe. It's $1.8 trillion of productive capital that's been largely wasted. Now, you might think some of this debt funded genuinely valuable education—future doctors, engineers, scientists. But even if we generously assume half of it went to truly productive degrees, we're still talking about hundreds of billions of dollars squandered on credentials with little real-world value. Money that could have started businesses, funded innovations, or built real wealth. Instead, it's trapped in a system that enriches university administrators while impoverishing the very people it claims to help.

Meanwhile, we're living through the fastest technological transformation in human history. AI is reshaping entire industries faster than universities can update their curricula. The half-life of technical skills is shrinking rapidly. Yet our educational system is still preparing students for jobs that won't exist by the time they graduate.

This brings us right back to what Doug and Matt have created with "The Preparation"—and why it's so crucial. They're not just critiquing the current system—they're offering a completely different path. One that builds real competence, practical skills, and financial independence without the crushing debt burden.

Instead of four years accumulating theoretical knowledge that may be obsolete before graduation, they propose hands-on learning, entrepreneurship, and the kind of education that actually prepares young people for an uncertain future. Real skills. Real experience. Real value.

And this Monday, August 25th, you'll get a chance to dive deep into this revolutionary approach. Tom Dyson, the brilliant Investment Director at Bonner Private Research, will be joining Matt Smith for a live discussion about "The Preparation" on Substack Live at 10:00 AM Eastern.

Tom is uniquely qualified to discuss this topic. He's been influenced by Doug Casey's thinking for nearly two decades—ever since Doug planted the homeschooling seed during a car journey across Paraguay in 2007. Since then, Tom has homeschooled his own children, incorporating Doug's educational philosophy and studying the works of von Mises, Thomas Sowell, and other thinkers Doug recommended. His son Dusty is now turning 18 and represents exactly the kind of young person "The Preparation" is designed for.

The conversation will explore the core philosophy behind "The Preparation," why traditional college is failing catastrophically, and practical alternatives that build real competence and independence. They'll also discuss how to navigate a world where AI is rapidly changing the job landscape—something universities are completely unprepared for.

Tom rarely does live discussions like this, so Monday's session promises to be both fascinating and potentially life-changing for any young person in your orbit.

[Click here to add this event to your calendar and join the live stream]

Now, I recognize that most of our readers aren't college age. But many of you have children, grandchildren, or other young people in your life who need a path to success. And if you care about them, you probably don't want to see them make the same financial mistake that's already destroyed so many futures. Consider sharing this with them—it might be the most valuable thing you pass along this year.

Hope you enjoy the rest of your weekend!

Lau Vegys