Trust the private sector, not Washington, to get job training right

  @FortuneMagazine February 27, 2014: 7:44 AM ET
EAS17 graph
(Fortune)

Five years into his administration -- five years into an economy with historically high unemployment rates and a frightening portion of Americans simply giving up on the idea of work -- President Obama has finally declared plans to overhaul federal job training. That's a tall order for Vice President Biden, tapped to lead the effort.

Washington's job training is an expensive, bureaucratic, ineffective mess. Start with the more than $18 billion spent on 47 training programs across nine agencies. Job Corps alone spends as much as $76,000 per person, often to place young people in minimum-wage jobs, according to a 2012 report by Oklahoma Sen. Tom Coburn. On top of that, the nonpartisan America Forward calculates that when all workforce-development programs are included, the price tag to taxpayers is closer to $60 billion a year. Just imagine all the political interests in congressional districts with long-term addictions to those federal contract dollars. Change won't come easily.

Join the Conversation
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.