25 years old and deep in debt

[Ed Anger]

And a cupcake business? Jeez. There is some originality there.

[CountDeMoney]

Jake, I think some of have seen way too many people thinking their Sanskrit or other bullshit degree will pull in six figures.

Worked for me, if only for a while.

[Ed Anger]

No degree worked for me.

[crazy canuck]

No degree worked for me.

Probably because the ones you got were not as valuable as a fine arts degree specializing in grammar.

[Barrister]

Not sure she needed even that to make cupcake decorations.

I expect that when she started her undergraduate degree she was not aiming to make cupcake decorations.

I'm a bit surprised by the unsympathetic tone people are taking about this.

They've apparently found a way to run a profitable business. While it has nothing to do with their undergraduate degrees (though I think the Fine Arts degree probably helped a fair bit).

They see an opportunity to expand their business, presumably making more money along the way, but due to their student debt burden they're unable to secure the credit to do so.

Given the amount of student debt the current generation of young Americans carry, it seems like their scope for turning the most American of solutions - being entrepreneurs - is vastly curtailed, hampering both them and the greater American economy.

Being snide about their choice of undergraduate degrees at this point, and about the specifics of their business niche, seems rather beside the point.

Couple of things.

The article never says they are running a profitable business.  It's merely described as a new business.  And to my mind a business making cupcake toppers sounds like a terrible business to get into.  The cupcake fad has long since peaked.  They're trying to sell bell-bottom jeans and disco balls in 1982.

So a couple already deeply in debt is complaining they can't go even deeper into debt.  It sounds like they just don't "get it".

[merithyn]

Not sure she needed even that to make cupcake decorations.

I expect that when she started her undergraduate degree she was not aiming to make cupcake decorations.

I'm a bit surprised by the unsympathetic tone people are taking about this.

They've apparently found a way to run a profitable business. While it has nothing to do with their undergraduate degrees (though I think the Fine Arts degree probably helped a fair bit).

They see an opportunity to expand their business, presumably making more money along the way, but due to their student debt burden they're unable to secure the credit to do so.

Given the amount of student debt the current generation of young Americans carry, it seems like their scope for turning the most American of solutions - being entrepreneurs - is vastly curtailed, hampering both them and the greater American economy.

Being snide about their choice of undergraduate degrees at this point, and about the specifics of their business niche, seems rather beside the point.

I tried to say something like this earlier, but gave up midway through typing it. You said it far better than I would have.

[Ed Anger]

No degree worked for me.

Probably because the ones you got were not as valuable as a fine arts degree specializing in grammar.

I bent my wookie.

[merithyn]

Couple of things.

The article never says they are running a profitable business.  It's merely described as a new business.  And to my mind a business making cupcake toppers sounds like a terrible business to get into.  The cupcake fad has long since peaked.  They're trying to sell bell-bottom jeans and disco balls in 1982.

I'm going to disagree here. While the cupcake businesses (as in storefronts) may have gone by the wayside, it's just now really hitting Mommyville Homebakers. There are still dozens of cupcake decorating classes at the local Joann's, as well as a multi-million dollar industry selling cupcake accoutrements that's been ongoing for decades. It may not be huge money - they're small and sell for very little - but there is definitely a market for them.

So a couple already deeply in debt is complaining they can't go even deeper into debt.  It sounds like they just don't "get it".

Given that you don't know their plans for expansion or potential for capital growth, I'd argue that you're the one that doesn't "get it".

[Admiral Yi]

Couple other things.

She may not have thought she would end up making cupcake decorations when she started undergrad, but she's continuing with another (totally unrelated) undergrad degree while doing so.

Yes student loans are a problem, but it's hard not to be snide when this couple racked up massive debt getting an MFA and a second bachelor's in zoology.

I don't know anyone who popped out of college, walked down to the bank and said "I've got an idea, shoot me a couple hundred thou."  Kids who start up businesses get start up money from their rich parents.  If you go to a bank they want to see collateral.

[merithyn]

And a cupcake business? Jeez. There is some originality there.

The thing is, their little doodads have been sold for years, and sold well. If they were to expand the business to include larger items for cakes, they'd be doing fairly well, I'd think. Hell, just take a peak down any craft store bakery aisle for how much that crap is, and it sells!

Making cupcakes? Bad idea. Making decorations for cakes and cupcakes? Not a bad way to go.

[Ed Anger]

Don't expect me to read the article. I just wave my cane at young people.

[crazy canuck]

So a couple already deeply in debt is complaining they can't go even deeper into debt.  It sounds like they just don't "get it".

But what you are complaining about is why capitalism is supposed to be the most efficient allocator of resources.  If you were a government planner in charge of cupcakes and other baked goods you would never approve of the idea.  But they seem to think they can make a go of it and the only thing holding them back is the externality of their incredibly expensive education.

Which is really the point of the article.  Educating people has become so expensive that the debts incurred is creating a drag on business creation and expansion. 

[Barrister]

And a cupcake business? Jeez. There is some originality there.

The thing is, their little doodads have been sold for years, and sold well.

Where are you getting that from?  It isn't in the article.

[crazy canuck]

I don't know anyone who popped out of college, walked down to the bank and said "I've got an idea, shoot me a couple hundred thou."  Kids who start up businesses get start up money from their rich parents.  If you go to a bank they want to see collateral.

And that is in any way related to this story how?

[Valmy]

Which is really the point of the article.  Educating people has become so expensive that the debts incurred is creating a drag on business creation and expansion. 

Yeah the point is the drain on the economy and society not to build up sympathy for these particular people.