Question

What do you think will happen to the rate of return on educational investment as the U.S. approaches zero population growth?

Answer 1

The rate of return on educational investment:-

Return-on-Investment analysis is an equipment for improving resource efficiency, means improving the impact of our limited sources. In present time there has been growing interest in adapting this approach to education. Investment in education are an important source of economic growth. Education leaders wants to use money on what works best for students. Returns of investment in education based on human capital theory, that puts forward the concept that investment in education increase future productivity.

In developed countries rates of return on education tend to be lower. But the social returns on educations are particularly high in US.

The private rate of return on investment in education in the US is 10% and social rate is 8%.

It is widely known that immigration has been and will continue to be a main component of growth for the US population without immigration, the size of total population of America would flatline or shrink in the 2030’s and 2040’s.

So in the end we can say that the rate of return on educational investment will fall if US approaches zero population growth.