Tags: Ross | Unemployment | School | education

Ross: Unemployment to Stay High Thanks to Flawed Schooling

Wednesday, 09 May 2012 09:39 AM

U.S. unemployment rates will stay high thanks to flaws in the country's educational system, which is failing to train the country's youth to be productive members of society, says noted investor Wilbur Ross, chairman and CEO of WL Ross and Co.

Factories in the future need people who understand math, as machines can do all the heavy lifting.

"Unemployment will stay high due to a failure in education," Ross tells a Bloomberg Markets Magazine luncheon, as reported by Business Insider.

Editor's Note: Sept. 18 Cover-Up Is a Final Turning for America

"High schools aren't turning out people who can work in factories."

Colleges are offering too many degrees that won't help students become more productive members of society.

"It's horrible to sidle a young person with $100,000 of debt," Ross says. "We have a real education problem in this country and we need to fix it."

Turning to more immediate issues, Ross says impasses over taxes and spending cuts could send the U.S. back into recession in 2013.

At the end of this year, the Bush tax cuts and other tax breaks are set to expire, while automatic spending cuts are set to kick in, a combination that could suck hundreds of billions out of the economy.

"That’s too big a hit for the economy to take," Ross says. "We're going to have another freak show at the end of the year."

The U.S. added a net 115,000 net nonfarm payrolls in April, far less than expected.

Experts says number depicts an economy that is inch-worming its way out of the recession.

"We're still growing just gradually," says Nigel Gault, an economist at IHS Global Insight in Lexington, Massachusetts, according to Reuters.

"Hiring is coming back into line with what you would expect with sluggish growth."

Editor's Note: Sept. 18 Cover-Up Is a Final Turning for America

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