College: Oversold?

I just read a post by respected economist Alex Tabbarok from his blog Marginal Revolution which argues that the loans which many students use to fund their college educations are being wasted because too many of those students major in subjects which "don't help them in the job market." (http://marginalrevolution.com/marginalrevolution/2011/11/college-has-been-oversold.html) He also states that students who carry these majors do not contribute to innovation economy to any great degree in contrast to those who graduate with STEM (science, technology, engineering, and math) majors.

While I see this point...the image of a homeless English major carrying a sign reading "Will read literature for food" is a bit too close to the truth for too many...I think he ignores both some anecdotal evidence to the contrary and some basic tenets of economic theory in his argument. First, there are the college drop-outs like Steve Jobs who have certainly contributed to the economy through their design sense,of not their technical expertise. In the wake of his death, Jobs has been praised not for his technical know-how, but his design sense and aesthetic. Similarly, Mark Zuckerberg is, by current standards, a lousy coder; however, his understanding of human psychology and his willingness to take risks has resulted in the the creation and growth of Facebook, a major economic engine.

Similarly, what were the majors of the Wall Streeters at Bear Stearns, Merrill Lynch, et al? I'm guessing they were STEM folks...particularly math...and their innovations drove this country's economy to its knees.

And, as a final point, suppose that Tabbarok's plea was answered by the masses and the number of STEM majors and humanities majors was reversed? Would we not, due to the law of supply and demand, be accosted by hungry STEM vagrants begging for loose change to use in an internet cafe?

This is to say that I see Tabbarok's argument as overly superficial. Certainly STEM majors are important parts of our economy and we could do a better job encouraging folks to grow into those fields. However, humanities majors also lend significant value to our lives...though perhaps in ways that economists struggle to measure...and we would be a poorer society without them, even if we were "economically" richer.