Originally Posted by operative
I guess so.
The time value of money is hardly an obscure academic concept.
I don't know if it will mean more people will go to college. As I've said, I don't think it's a good idea for an overall increase in college attendance--in fact, a decrease might be in order. I care much more about the quality than the quantity: the most apt students should be able to go to university. We shouldn't discriminate against certain newer immigrant groups because they happen to outperform some lazy and self-entitled whites and blacks (note: just to be clear, this is a subset of the overall population). But we do. The more that we increase the overall attendance of and graduation from college, the less worth the degree will have. That's not really a good thing. While you can make a point that more people going to college increases the intellectual capital of the nation and thus leads to greater productivity in the long run, I don't really accept this premise: many kids who go to college slack and plagiarize their way through with a 2.5, retaining nothing from their education. I do believe that lowering the tax rate will help more deserving students go to college. That's what's important for our society.
I forgot the best part of your plan! Those 18 year olds hoping to go and dilute the intrinsic value of your precious elite group of higher ed grads will have to wait until they are 36 under your invest-your-generous-tax-break-for-college-mutual-fund-that-can-never-be-lost-plan.
But more importantly, I really want to know what low risk investment plan will get me a 5% return right now.