About this video

• Video Title: Why American Education is a SCAM! | Eric Trump
• Channel: The Iced Coffee Hour Clips
• Speakers: Graham, Eric Trump
• Duration: 07:48

Overview

This video clip features Eric Trump discussing his views on the failures of the American education system. He argues that the system does not teach essential financial literacy or practical life skills, instead focusing on what he considers to be less important or even detrimental subjects. He contrasts this with the high costs of education and student debt, suggesting a fundamental flaw in how educational institutions operate and what they prioritize.

Key takeaways

• Lack of Financial Literacy: The education system fails to teach crucial financial concepts like compound interest, mortgages, credit scores, and how to utilize financial tools like 401(k)s.
• Focus on Useless Subjects: There's an overemphasis on subjects deemed irrelevant by the speaker, such as Latin, while practical skills and financial knowledge are neglected.
• Inflated Costs and Student Debt: The cost of higher education has drastically increased, leading to significant student loan debt, which many graduates struggle to repay due to low starting salaries and impractical degrees.
• Concerns about Curriculum: The speaker criticizes the inclusion of certain topics in the curriculum, such as DEI initiatives and what he calls "revisionist history," believing they detract from essential education.
• Alternative Value Proposition: The speaker suggests that investing the money spent on a college degree directly into the stock market or a down payment for a house could yield better financial returns.
• Need for Practical Skills: There's a call for education to include basic trades and real-world skills that individuals can use immediately after graduation.

Eric Trump believes the following financial literacy topics are missing from the current education system:

• How to calculate a mortgage
• The difference between principal and interest
• Compound interest
• How to achieve an 800 credit score
• How to open a home mortgage
• How to get a car lease
• How to calculate interest and principal
• How the stock markets work
• How the bond markets work
• The fundamentals of finance
• How the FICO system works
• Why maintaining a high credit score is important
• How to open a bank account and savings account
• What a 401(k) is and how to utilize it effectively

Eric Trump points to several pieces of evidence to suggest the American education system is "broken" or a "scam":

• Lack of Essential Skills: He states that liberal arts majors graduate without knowing how to calculate a mortgage or the difference between principal and interest.
• Useless Curriculum: He mentions taking "nonsense classes" and "worthless classes" during his own education at Georgetown, including Latin, which he deems unnecessary for practical life.
• High Costs vs. Poor Outcomes: He highlights that despite the high cost of education, graduates often end up with low-paying jobs (e.g., $25,000 a year) and significant debt (e.g., $80,000 in loans over 3-4 years), making it impossible to repay.
• International Ranking: He notes that the US education system is ranked poorly internationally (10th or 30th in the world) despite high spending per pupil.
• Administrative Costs: He observes that after government subsidies, the amount of money per student remained the same, but administrative and staff costs skyrocketed.
• Tuition Inflation: He points to a correlation where the more money is put into the student loan system, the more college tuitions increase, almost perfectly tracking each other.
• Focus on Ineffective Content: He criticizes the inclusion of DEI initiatives and what he calls "revisionist history" in the curriculum, citing an example of confusing gender spectrum discussions with first graders.
• Lack of Practical Skills: He argues that students graduate without basic, real-world skills, such as being able to properly mount a TV or find a stud in a wall.

Eric Trump implicitly and explicitly suggests several alternatives to a traditional college education that he believes would be more beneficial:

• Financial Literacy Education: He strongly advocates for teaching financial literacy, stating there is "nothing more important to the world." He suggests replacing half of the current curriculum with financial education.
• Basic Trades and Practical Skills: He believes that teaching basic trades would be more valuable, enabling individuals to perform practical tasks like hanging a picture correctly or mounting a TV. He argues that this provides more immediate real-world utility than some academic degrees.
• Direct Investment: He proposes that the money spent on a college education, particularly for degrees that don't lead to high-paying careers, could be better invested. He suggests putting that money into an ETF that tracks the S&P 500 or using it for a down payment on a house, expecting a better return over time.
• Career and Savings Focus: He implies that focusing on starting a career and saving money earlier would be more advantageous than incurring substantial debt for a degree that may not offer a good return on investment.