Education Should Be Used Counter The Negative Side Effects On Economic Development

712 Words Oct 31st, 2015 3 Pages
According to Yeager, Nelson, Potter, Weidman & Zullo (2001) in many ways higher education should be seen as a business as it “produces and sells educational services to customer” (as cited by Winston, 1999, p.13). However, at the same time, while education is indeed a business in some retrospect, it should not be regarded as only a business either.
Over the last several decades, many economists have attempted to solve the array of issues surrounding the idea that education should be seen as a way to strengthen society and its ability to maintain a stabilized economy that is ever growing. However, throughout history, an idea that originated by Adam Smith, the founding father of economics, is that education should be used counter the negative side-effects of economic development (Gilead, 2015, p. 625). While his suggestions may not be in agreement with the majority of society today, his insight offers the critical issues surrounding the field of higher education, a perspective which may offer techniques that could be beneficial if used sparingly.
Taking a closer look into Adam Smith’s rejection of the idea that education should be oriented towards increasing production and economic progress, it is interesting to know that his view ended with the formation of human capital theory by the time the1960s arrived. “Theory Theodore W. Schultz, who played a major role in the development of human capital theory, credits Adam Smith with laying the intellectual foundations of this…

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