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Universities Create Wealth

April 30, 2011

Filed under: education,money — Terry Wohlers @ 06:23

Someone once said that our university system is the envy of the world. I don’t know whether this is true, but I do know that we have many special institutions of higher education within our borders. One is Massachusetts Institute of Technology, an organization that has produced more than I would have ever thought.

MIT graduates have founded 25,800 companies, according to the January 22, 2011 issue of The Economist. These companies employ 3.3 million people and generate annual sales of $3 trillion, according to the article. This is more than three times the gross domestic product (GDP) of Australia, Austria, Belgium, Finland, Sweden, Taiwan, Thailand, and many other countries.

Another article in the same issue of The Economist stated that 41% of millionaires worldwide live in the U.S. This is an extraordinary percentage when considering the world population. The article went on to say that the world’s most wealthy are entrepreneurs that started a business.

Our university system has undoubtedly contributed greatly to entrepreneurism, which has led to personal and national wealth. If one university can do what it has done—albeit MIT—imagine what the more than 4,800 colleges and universities spread across the U.S. are achieving. Regardless of what you might hear from others, supporting higher education is a wise investment.