Education: consumption or investment?

A question from Yahoo! Answers:

Is education a consumption or an investment expenditure ?

Under the current national income accounting rules (which were by and large developed by 1925), it is classified as consumption. There were some attempts to reclassify education as investment and restate U.S. national income data (Business Week ran an article about it this back in February).

Source:

http://www.businessweek.com/magazine/con…

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