Is Denmark’s lack of student loan debt killing its economy?
In seemingly stark contrast to concerns in the U.S. that $1.2 trillion in student debt is hindering economic growth, corporations and politicians in Denmark are worried about the adverse effects of “no tuition fees and generous grants,” according to Agence France-Presse.
They argue that too many students “pursue ‘fulfillment’ and too few the science and engineering degrees needed in well-paid growth sectors critical for the nation’s future,” the wire service reports.
Despite the rising availability of engineering jobs, young Danes keep opting to pursue arts and humanities in college, “with only one-third the OECD average contemplating an engineering career,” the AFP notes.
Denmark has been slow to recover from a 2008 housing bubble burst, and lays claim to the weakest economy in Scandinvavia. Government ministers have projected 1.4 percent growth in 2014 and have said they will lower public investments in 2015, according to Bloomberg.