Psychological Warfare: What the HECS going on?
In my research, I found myself staring at the home page of the University of Sydney. In the headnote, the words "Study with us: Join Australia’s most employable graduates," were written in bold. But is employability really what a university should be selling? Obviously, yes, especially in this climate. However, the idea of employability being more marketable than dream-seeking symbolises the newfound mentality of those who seek higher education. Soon it will be too risky to follow your heart.
As you know, after commencing my double major — International Business and Journalism — I became fixated on nutrition. I started to focus on exactly what I was eating, and to no-ones surprise, I began to feel healthier, mentally and physically. Ever since my goal has been to incorporate this passion into my career trajectory. So, I decided after graduating, I would first accumulate more international experience (travelling alone seems to amplify my ambition more than anything else), and then I would return to my studies, commencing a master’s degree in nutrition science. Who knows? Maybe one day I'd start a health-and-lifestyle magazine I thought, utilising my quiver of degrees. Unfortunately, like most students, I am gazing into a financially foggy horizon, and my dream is becoming more economically unachievable each year.
As of June 1st, student loan indexation increased by 7.1 per cent, and now Australians, who have strived for higher education, are reaping the consequences. Degree holders nationwide owe a combined HECS of roughly $80 billion. In other words, our student debt is greater than the total value of goods and services, otherwise known as GDP, produced within Libya during the last financial year.
Quickly, for those unaware: HECS-HELP is a government loan most Australians incur during their studies, repaying the debt post-graduation, once a workplace offering an annual salary equal to $51, 550 is found — barely enough to repay the debt in the first place. However, year after year, as inflation increases, so does student debt indexation. You’d think wages would increase, but nope. Inflation is soaring, and Australians are suffocating. As a result, I recently made a difficult financial decision. Instead of tomato, I now have canned beetroot in my daily salad — $10 for a kg of the cheapest breed of tomato is criminal. A ridiculous price regardless of what season it is.
So really, what the HECS going on? I thought student debt, appealing as it sounds, was supposed to encourage us to study by removing the upfront cost. But I'm more concerned than ever about my future financial stability. I didn't begin my Bachelor of Arts intending to make large sums of money, but perhaps I should have. So, although I credit my studies to be a catalyst for my ambition, over the last year, I have become aware of dozens of free and cheap resources for knowledge building, resources external to my university. Here’s one I wish I knew of during ATAR English:
blas.com offers a detailed summary, insights, and takeaways from a plethora of books. I have used it before purchasing a novel, so I know what to expect, and I have used it after, to develop my understanding of particular concepts.
I like to think I am entrepreneurial. So, my point is, and I hate to say it, but my studies often feel like a distraction from the master plan, especially the business side. I generally find my work, external to the bells and whistles, is much higher in quality. And although I understand university aims to prepare us for the deadlines of reality, which has been beneficial, if my curiosity has taught me anything, it's that a university degree is not a prerequisite for success. So, with the exemption STEM, the question is raised: Is studying in Australia financially worth it?
But firstly, why has indexation increased in the first place?
This link should cover the bases.
In a nutshell, the new student loan indexation reflects the cost-of-living crisis. Indexation increased for the same reason I substituted beetroot with tomato, inflation. And as you know, the cost of living has effected more than groceries.
Continual indexation growth, increasing course fees, and what I think, is a technological revolution, I fear that soon higher education will be a pipe dream. Universities will be a pool for the rich rather than the passionate.
Student loan indexation — 2013-2023
Former students have had an average of $1,700 added to their HECS. Although criminal nonetheless, $1700 piled on top of $24,000, seems somewhat manageable. Therefore, I believe this is just as much a mental issue as it is financial, specifically for two reasons: Firstly, I predict if indexation continues to follow this trend, the shortage of particular skilled workers, such as teachers and nurses, will increase. These are quality jobs, although, in the grand scheme of things, the debt tied to these professions is unreasonable. And second, high debt, in combination with employability concerns, will see Australian students follow their head rather than their heart — a false dilemma, culling creatives and inflicting psychological warfare on our emerging generations.
So please, cross your heart and hope to die, as I fear inflation will see our debt rise much faster than we can afford to pay it off.
Culling Creativity
As a student enrolled in a Bachelor of Arts, I have particular interest regarding my second argument — students will follow their head rather than their heart. Therefore, you can expect the remainder of this article to concern mostly this argument.
During high school I wanted to become a musician. So, after graduating, without much thought, I decided after my gap year I would study music production, although, I kept this plan quiet. There were only a few people aware of my musical ambition, and some of them did attempt to redirect my career trajectory. In fact, when I told my stepfather of my plan, he told me to think realistically. Soul-crushing, but I can't blame him. He is traditionally working-class and comprehended the small probability of success. For this reason, I took his advice with a grain of salt — I’m stubborn, and find it difficult to take advice from people who I believe lack the experience to give it. That said, I have not studied music production. I changed my mind. Not because of peer pressure, but rather a cultural revelation acquired throughout my gap year. I stand by my decision, my musical drive is much less significant than it was four years ago, and honestly, my newfound priorities do not provide the time of day to focus entirely on music.
If you study music you must be willing to work hard for financial success. A job is not guaranteed post graduation, it boils down to an individuals determination. You must be captivated by the music, gravitating toward it like an irresistible force, analysing each note to develop the optimal sound for the masses — for society’s benefit, these people must follow their passion. Sadly however, if Australia’s economic situation follows its recent trajectory, I predict student loan indexation will result in a decline of creative revolutionaries. They will conform to peer pressure, ignoring their gift and follow a path where employability is more probable — well, in individualistic countries anyway. An unfortunate reality creatives will have to put up with.
The Financially Tortured Artist
Before proceeding, I need to make something clear. If you are willing to expose your cards and give whatever the subjective ‘it’ is 110 per cent, do not let financial uncertainty restrain you. When lying on your deathbed, a piece of mind will be more valuable than the capital you own. After all, HECS is better than no HECS at all. Now, let’s discuss our education system.
Over the last year, I have become fixated on making a living in the way I intend, not how the institution suggests. Although I am still discovering how I will do this exactly, the flame has been ignited, and as a result, I have fallen into the rabbit hole, otherwise known as the Tim Ferriss Show.
Here is the show description: “Each episode, I deconstruct world-class performers from eclectic areas (investing, sports, business, art, etc.) to extract the tactics, tools, and routines you can use. This includes favourite books, morning routines, exercise habits, time-management tricks, and much more.”
One episode in particular passes frequently through my mind. In episode #484, Ferriss discusses free education as a byproduct of Sweden’s culture with Spotify chief executive, Daniel Ek. They ponder whether Sweden's cultural approach to education is more effective than America’s, which is highly similar to Australia's. Click here for Hofstede's cultural analysis tool.
Western Australia in particular, I believe has a potent working culture. I'm assuming most West Aussies do not associate, let's say, writing, with hard work. Instead, we picture the Aussie Battler, suffering spinal stenosis, hunched over a shovel at 7 a.m. on a Tuesday. In reality, however, the battle against cognitive resistance (as you know from my last post) is just as challenging. Nevertheless, the financial net is much thinner for those who embark on a creative venture, compared to Scandinavian countries anyway. In consequence, I think those who work in professions which are considered to be working class often stigmatise artistic dream-seekers. For example, why do you think accounting is Australia's most common degree? This is my opinion, but it could be because we are prisoners of our nation, restrained in golden handcuffs. As children, we constructed grand ideas for ourselves, we said “When I grow up, I want to be an astronaut,” or “When I grow up, I want to be in a band.” I’m sure some children dreamt of building an empire, and sure, the skills acquired through an accounting degree would contribute to this. However, I feel as though the value of an accounting degree is generally realised later in life, after the dream is set-in-stone and its business-building advantages are understood.
Most of us pick a degree at 17, and most of us — I believe anyway — have not generated enough external experience to understand ourselves. So, we follow the voices close to us, deciding the best alternative in reaction to our peer's thoughts rather than our own. Logistically speaking, it makes sense to choose accounting. Regardless of passion, it is financially safe. But if you are like I was — reluctant to consider finance, and drawn to the idea that I must create something of my own — I suggest, before buckling down, take time off, understand yourself, and ponder what exactly it is you want to build.
Also, if your an accountant, I’m sorry if I have offended you. That is not my intent, and I’m certainly not trying to wage a war with the taxation office. In fact, over the years, as I have become more knowledgeable and my focus has shifted, accounting is a sector of commerce I now have a particular interest. The skills accountants acquire, are in my opinion, the most valuable for money generating compared to any other commerce degree — proper understanding and navigation of the stock market is a valuable tool, a tool I wish I could better use.
Back to my point…
Have you ever been criticised for studying the arts? Or perhaps found yourself in a conversation concerning your future employability potential? If your answer is yes to either of these questions, I’m sure you can relate.
Before spiraling, I was edging towards this idea; financial insecurity is culling creatives. Most humanities degrees, as I've been told more times than I can count with my fingers, are high risk and low return — very optimistic coming from a journalism student. However, to some extent, I disagree with this (read this). Much like our nation's culture, the risk associated with the arts in Australia is highly individualistic. For example, one who studies nursing, who never spends their free time reading medical literature, is almost guaranteed a role in their field — the nation is short of medical professionals. Whereas, a fine arts student who rarely practices their craft external to university, will most likely never become a financially stable artist. I think this is reasonable. Although passion often dies when art becomes work, this is an expensive revelation. And at this point, the theoretical fine arts student is already two years deep. It makes sense to finish? I know I would, at least your CV would prove you intend to finish what you start. New statistics support this recurring situation. 72 per cent of Australians reported being dissatisfied in their workplace last year — it's shocking that this statistic isn't. So, with almost three-quarters of our population unhappy with their profession, our nation must learn from our Scandinavian friends.
What about logical thinkers? You know, those who pay more attention to the clock than their craft. Those who followed their head rather than their heart, studying a field they despise, settling into the golden handcuffs as they become increasingly tighter — this is where the Nordic approach could save us. Although one may rightly argue Scandinavians make up for student loans in tax (often the same people who complain about European backpackers), this is beside my point. Nordic countries utilise taxes to fund the sectors which matter, health care and education. Plus (although, in the grand scheme of things, it's not great), the housing crisis is less critical. My argument is, as chief executive EK confirms, feminine culture offers greater security. If you believe you have an eating disorder, you can visit a nutritionist without re-examining your budget. Although most importantly, the Scandinavian approach offers citizens higher education free of charge, eliminating financial anxiety. For example, a Swedish teenager with a raging musical drive is highly likely to pursue their passion. Whereas, Australians would likely tuck it away, only recindiling their passion during a mid-life crisis, with their foot firmly pressed against the distortion. In Nordic countries dream-seeking is the most favourable alternative, financially and mentally. There is no risk factor. The only asset lost is time, but when you enjoy the learning process without monetary cuffs, the argument for time-wasting becomes irrelevant.
From iconoclast artists to groundbreaking inventors, it comes as no surprise that Scandinavian countries are amongst the world's most intellectual. University is no one-time thing, instead, students return whenever they want, studying whatever they want, and remaining financially secure throughout the entire process. For example, the theoretical Swedish musician previously discussed could return to university and begin a new degree, at peace with the fact they first acted on their true passion.
During the podcast, Ek said, “I think the reason why Sweden … has so many talented songwriters and musicians that are doing so well, comes exactly from that. A music education in Sweden is free and if you want to try and make a living as a musician you know the base is taken care of. Meaning, you can be on welfare for a period of time and that’s an okay situation … while you go for your dreams, and because music education is free, everyone can afford to do that, everyone can follow their curiosity and wherever it takes you.”
My point is, as EK argues, Scandinavian countries offer psychological safety. There is a base level of security, “everyone should have food on their table,” he says. However, regardless of the impediments of the education system, learning is a privilege and should always be considered so. Some say free education leads to a minority of clueless students studying worthless degrees. Students who take advantage of higher education, enrolling because they can, not necessarily because they want to. I would have to disagree. I think taking advantage of free education is a great plan. Universities could be approached from an experimental perspective, initially studying a range of subjects before settling on the one path you will see through to its end. Those without a defined goal can develop one through trial and error. Through a university's available resources, students can build unique careers, fostering newfound creativity and implementing it into a niche they never knew they had the skills required to excel. EK cements this statement, magnifying the benefits of cheaper education.
He says, “I’ve been more of a tinkerer, a wanderer, and I’ve always, because I felt the safety, felt that I could think bigger and try new things. Because honestly, the consequences of failing were minimal.”
So, what the HECS going on? Australia's youth will soon ponder the financial return of their passion with an abacus, following their head until their heart is no longer beating. To wrap things up, although I fear economic uncertainty will cull Australia’s creatives, it is not all doom and gloom. It is worth noting that in 1990 student loan indexation reached 8 per cent, so it has taken more than three decades for an indexation spike of similar significance to occur. Plus, as I conclude this article, the minimum wage has just been increased by 5.75 per cent — nothing substantial, especially for those with HECS, although, significant enough to loosen the shackles. For all I know, this could be the work of our nation's concrete force of accountants, threatening our psychology with graphs, charts, and statistics.
Someone I find inspiring as of late…
George Heaton
Freedom within boundaries
In my previous post, I wrote about Fergus Crawley. I discussed how his athleticism has inspired me to train harder than ever. I also mentioned his podcast, and last week he hosted George Heaton, a name I was unfamiliar with at the time of its release.
Here is the episode.
George founded Represent, one of the fastest-growing streetwear brands worldwide. In addition to streetwear, they sell fitness attire under the name 247. Though Represent's trajectory is admirable, what I find particularly inspiring, is the clear distinction between George’s values and the brands. Behind every great artist is a disciplined business person, and like George, you have to excel in both arenas for financial success.
George is highly routined, from diet and exercise to time allocation, he believes structure to be the foundation of discipline — and so do I. Routine is like compound interest, there is no instant gratification. However, the accumulation of beneficial habits eventually results in a highly productive lifestyle, ultimately leading to success, however you may interpret it.
Here is a link to Represents Youtube. If you have the time, check out the Behind the Brand series. It visually demonstrates the values of George and his colleagues, drawing the line to distinguish the balance between cognitive and physical discipline.
A song I’ve been listening to…
This time (I’m Gonna Try It My Way) | DJ Shadow
Here is a link to the Genius page.
Lately, I have been listening to this tune in the evening while I cook dinner, it tends to lift my spirits. Also, it's rather funky, and as a result, so are my sliced vegetables.
For me, This Time is a product of Discover Weekly, though it is not my first time hearing of DJ Shadow. Last year in NSW, as my friend and I drove up and down the coast, I noticed he would play one tune consecutively. It may have been Midnight in a Perfect World, but don't take my word for this. Therefore, I found it rather coincidental that in the days after returning home a friend of mine was gifted the vinyl for Endtroducing, DJ Shadows 2006 LP.
Something to think about…
“My aunt worked several years in what Americans call ‘sweatshops.’ It is hard work. Long hours, ‘Small’ wage, ‘poor’ working conditions. Do you know what my aunt did before she worked in one of these factories? She was a prostitute. The idea of working in a ‘sweatshop’ compared to that old lifestyle is an improvement, in my opinion. I know that my aunt would rather be ‘exploited’ by an evil capitalist boss for a couple of dollars than have her body be exploited by several men for pennies.”
“That is why I am upset by many Americans’ thinking. We do not have the same opportunities as the West. Our governmental infrastructure is different. The country is different. Yes, factory is hard labour. Could it be better? Yes, but only when you compare such to American jobs.”
Here is the article that stirred the pot. And here is David Pouge's analysis of the diverse reactions.
Months ago whilst reading the Psychology of Money, I came across this passage. It's not so much a quote, but a response to an article written by Pouge, concerning the outrageous working conditions hosted by Foxconn in Taiwanese factories.
The philosophical connotations to which this passage alludes became a recurring point of reference in a recent essay of mine regarding business ethics — an essay I intend to keep private as I fear it may ruffle some feathers.
Though, I will say this. The core message is similar to that of my last post — context builds the boundaries for what we understand to be the norm. The world is diverse, and so are its people. Thus, my point is, personal experiences lead to vastly different views on particular concepts, so we can not expect one side of humanity to always agree with the other.