In May 2011, Peter Thiel—PayPal co-founder, venture capitalist, and a member of Facebook's board of directors—predicted that higher education would be the next bubble to burst. According to Thiel, higher education in America bears the same markings as the technology and housing bubbles that preceded it: unbridled investment, wildly overvalued assets, and a lower rate of return than in years past. Like all economic bubbles, Thiel argues that higher education is destined for disaster. Thiel's remarks have generated a great deal of controversy: comparing universities and colleges to commercial markets seems simply preposterous to some. The idea, however, resonates with economists. Like real estate and technology, higher education is a major investment; the average education at a 4-year private college costs well over $100,000 in total.

A quarter of our children drop out of high school every year. Two-fifths of those who do graduate leave high school unprepared for college or career, while 57% (PDF) lack comprehension of even remedial math. Apparently the national disinterest in STEM subjects (science, technology, engineering and math) starts early, as over 61% (PDF) of middle schoolers would rather take out the garbage than do their math homework.