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Let’s Start a Learning Revolution




         Michael Karnjanaprakorn, @mikekarnj
              Skillshare, CEO/Co-Founder
                 http://skillshare.com
I’m an entrepreneur based in NYC.
Where is our learning revolution?
Let's Start a Learning Revolution
Let's Start a Learning Revolution
Today, we’re going to challenge the
  traditional notion of education.
Why?
Because today the pinnacle of
education is getting into college.
And not learning.
Which is a massive social problem.
I’m going to tell two stories
around learning and education.
And for fun, I’ll teach you the secret
behind being a winning poker player.
The first story starts here...
University of Virginia
Where I took an Economics
 course on Game Theory.
Which is a theory of competition
stated in terms of gains and losses
     among opposing players.
Zzz.
Boring, right?
But I memorized everything
     for the final exam.
And barely passed!
But, I was so focused
 on passing the test.
I didn’t really learn anything.
I still didn’t understand
       game theory.
Sound familiar?
Fast forward to May 2010.
I’m in Atlantic City with Annie Duke.
Let's Start a Learning Revolution
She’s also my poker coach.
Who gave me a lesson on...
Game Theory and Decision Making.
Poker is a game of decision making
  under conditions of uncertainty.
So, my gains are exactly balanced
 by your losses (sum-zero game).
And my success depends on the
decisions of others (game theory).
As a poker player, my job is
to always make the best decisions.
While you make
the wrong decisions.
Which is how I win
 in the long-run.
I’ll break it down for you.
In poker, once you make a bet, the
    money isn’t yours anymore.
This is called a sunk cost.
So, you shouldn’t make
bad decisions on getting it back.
Another example.
How many of you have friends in bad
  relationships that stay together?
Because they’ve been together
      for “five years?”
This is another sunk cost.
And a really bad decision.
Because you shouldn’t make
decisions based on past investments.
In other words,
your friends should break up.
This is the secret to winning poker:
Decision Making and Game Theory
A topic that I found insanely boring
        turned into the most
    interesting topic of all time.
Because it was something I
passionately wanted to learn about.
The second story starts with Erica
Goldson at Coxsackle-Athens HS.
She gave a valedictorian speech to
    her 2010 graduating class.
Let's Start a Learning Revolution
And she said some remarkable
things against schooling, like...
“I excelled at every subject just for the
purpose of excelling, not learning.”
“We are so focused on a goal,
   whether it be passing a test, or
   graduating as first in the class.
However, in this way, we do not really
  learn. We do whatever it takes to
   achieve our original objective.”
“This is the dilemma I’ve faced with
 the American education system.”
I agree with her.
The U.S. education system is
  fundamentally broken.
So, where does a recent HS
 graduate go from here?
“9 out of 10 American high
school seniors say they want
      to go to college.
    Source: The World-Wide Expansion of
  Higher Education in the Twentieth Century
So, how did this happen?
Before the 19th century, there
 were no systems of public
         education.
In 1900, about half a million
   people worldwide were
    enrolled in colleges.
       Source: UNESCO (2009)
“Just because a boy wants to go
   to college is no reason we
       should finance it.”

          - President Franklin D. Roosevelt, 1939
Today, there are 150 million
 students today enrolled in
  some kind of education
    beyond high school.
      Source: UNESCO (2009)
“We will provide the support
    necessary for all young
Americans to complete college
and meet a new goal: By 2020,
 America will once again have
 the highest portion of college
   graduates in the world.”
                     - President Obama
Why is there so much
 importance on a new
institution like college?
College degree leads to success.
“Over an adult's working life,
high school graduates can expect,
 on average, to earn $1.2 million;
 those with a bachelor's degree,
  $2.1 million; and people with a
  master's degree, $2.5 million.”

         Source: U.S. Census Bureau
College also has intangible benefits.
You experience the world
    for the first time.
You make new friends.
You gain critical thinking skills.
You learn a lot about yourself.
You mature.
All of these are
great and needed!
But, let’s paint a new
 picture of college.
Background Disclaimer:
    I like college.
Background Disclaimer:
I went to college twice.
B.A. from UVA
M.S. from VCU Brandcenter
But, here’s my beef
with higher education.
We need to debunk the myth that a
 college degree leads to success.
It doesn’t.
“17M Americans with college degrees
 are doing jobs that require less than
   the skill levels associated with a
          bachelor’s degree.”

       Source: The Chronicle of Higher Education
What’s the value of a degree from
  college? A job as a waiter?
Richard Vedder from The Chronicle of
 Higher Education debunks the myth
that a college education will result in
        higher paying returns.
“The stats have always been skewed
 for certain subgroups—particularly
relatively disadvantaged groups with
low education outcomes—are higher
than the average marginal returns to
   education in the population as a
                whole.”

       Source: The Chronicle of Higher Education
Focused on a small subgroup of the
   entire education ecosystem.
Here’s the reality...
Not everyone goes to Harvard.
Harvard only enrolls
20,000 students per year.
18.2M students enrolled
in college in the U.S. (2007)

Source: National Center for Educational Statistics
NYU: 50,000 students
Michigan: 41,000 students
Berkeley: 35,000 students
  UVA: 20,000 students
Stanford: 15,000 students
  Yale: 11,000 students
So, where do the other 18M college
    students go in our country?
Since the pinnacle of education is
       getting into college.
I believe higher education has shifted
   from learning to short-term profit
             maximization.
500,000 students
Extremely profitable business.
2009 Revenue: $3.7B
Triple the revenue ($800M)
    of Facebook (2009).
I did learn something in Economics:
When Demand > Supply
$$$
Which is why I believe higher
 education has shifted from
     learning to profit.
Let's Start a Learning Revolution
In other words, colleges act as
corporations like Goldman Sachs.
Speaking of Goldman Sachs.
Remember the housing market crisis?
Well, the college bubble
    is bursting, too.
And it could even be worse.
Students at For-Profit institutions
  represent only 9% of all college
 students, but receive roughly 25%
    of all Federal Pell Grants and
loans, and are responsible for 44%
     of all student loan defaults.
There is an inevitable
student loan crisis coming.
Need more proof?
Check out these headlines.
“Americans now owe more on
their student loans ($830B) than
  their credit cards ($827B).”

    Source: Wall Street Journal, August 9, 2010
“Consumers who have questioned
whether it is worth spending $1,000 a
square foot for a home are now asking
whether it is worth spending $1,000 a
 week to send their kids to college.”

      Source: Wall Street Journal, August 9, 2010
$300B of the $830B student loan debts
have been incurred in the last 4 years.

         Wall Street Journal, August 9, 2010
To put this in perspective,
 the US economy is burdened with
$4 trillion of excess mortgage debt,
         which is 30% of GDP.
At this rate, we’ll break
1 trillion ($1,000,000,000,000)within
the next year for student loan debt.
And to make matters worse, the
    “defaults on student loans are
skyrocketing amid a weak job market
  and steadily rising tuition costs.”

       Source: Wall Street Journal, April 21, 2009
“Default rates for federally
 guaranteed student loans are
expected to reach 6.9% for 2007.
 The highest rate since 1998.”

    Source: Wall Street Journal, April 21, 2009
“College seniors who graduated
 in 2009 carried an average of
 $24,000 in student loan debt.”

      Source: Project on Student Debt
“Unemployment for recent college
graduates climbed from 5.8% in 2008
to 8.7% in 2009 – the highest annual
 rate on record for college graduates
           aged 20 to 24.” ”

         Source: Project on Student Debt
And it’s happening everywhere.
     Even in our backyard.
“N.Y.U. enrolled students without
 asking many questions about
  whether they could afford a
  $50,000 annual tuition bill.”

    Source: The New York Times, May 28, 2010
“Then the colleges introduced the
 students to lenders who underwrote
big loans without any idea of what the
    students might earn someday.”

       Source: The New York Times, May 28, 2010
Sound familiar?
“It’s just like the mortgage lenders
who didn’t ask borrowers to verify
           their incomes...”

     Source: The New York Times, May 28, 2010
It gets even worse.
You can not walk away from
 student loans in the same
 way as mortgage holders.
Federal bankruptcy law
makes it nearly impossible to
discharge student loan debts.
And tuition will always increase.
Because the government is a huge
mandated buyer and guarantor on
       student loan debt.
Which means that tuition
will always go up. Forever.
Let's Start a Learning Revolution
But, we can fix this.
Not everyone has to go to college.
Yep, I said it.
Not everyone has to go to college.
Yes, it has obvious benefits.
And we will always need an
institution for higher education.
But, why not challenge the
traditional notion of education?
Is a college education really
worth a $20,000 student debt?
That will take the next
20+ years to pay off?
What happens when you
   switch careers?
Get laid off?
Or work an underpaying job?
Because you decided to take
  the road less traveled to
    pursue your dreams?
College is not the
holy grail to success.
Having a college degree will not
ensure that you will be successful.
So, what can we do?
Here’s one simple idea.
Who made up the rule that we
have to attend college for 4 years?
Why not 2-years?
This reduces tuition which will
reduce the amount of student loans.
It allows students to spend the
    2 years doing something.
Maybe travel around the world?
How about starting a business?
The possibilities are endless.
Here’s another idea.
Why not pay students to quit college?
Peter Thiel pays would-be
   entrepreneurs under-20
$100,000 to drop out of school. 
But, that’s not really scalable.
Here’s an even easier,
  scalable solution.
Why not go back to the
true goal of education:
   learn new skills
Where is our learning revolution?
But, even bigger than the student loan
      crisis is the “people crisis”
We are misleading our kids down the
 wrong path & promising them the
        wrong things in life.
At TED 2010, Sir Ken Robinson stated
  “many people go through their whole
lives having no real sense of what their
  talents may be, or if they have any to
               speak of.”
“Education dislocates people from
  their natural talents. And human
resources are often buried deep. You
    have to go looking for them.”
“You have to create the
circumstances where they
    show themselves.”
This will only happen if we bring
    learning back into the US
        education system.
And by debunking the myth that a
 college degree leads to success.
The pinnacle of education should be
   learning, not going to college.
We need to stop creating a cookie-
cutter experience around education.
We need a learning revolution inside
   and outside of the classroom.
Here’s our solution:
Let's Start a Learning Revolution
Platform to learn anything
from anyone in your community.
Learning shouldn’t be confined to
  the four walls of a classroom.
Your city, network & community is
 the world’s biggest university of
   excess knowledge and skills.
It just needs to be shared.
What do you want to learn?
Better yet, what can you teach?
Want to learn how to
green your rooftop?
Bake the perfect cupcake
 from Magnolia Bakery?
Or how to increase
 your happiness?
You can gain this knowledge
and more through Skillshare.
Because piquing your
interest, finding new passions
 & learning new things should
     be a life-long process.
Because everyone should be
    a life-long learner.
We need a learning revolution.
Thank you.
"The only thing that interferes with
  my learning is my education."
                    - Albert Einstein

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