“I just applied to business schools this year. While I see this as the perfect opportunity for me to increase my knowledge capital in bad economic times, some folks are questioning whether the economony will really turn around in 2 years If not, then wouldn’t I be in trouble…lots of debt and a tight hiring market? (I already got into two top 5 b schools ). Any thoughts?”
The Harvard MBA says:
First of all, congratulations on getting into two Top 5 schools. That’s probably quick an accomplishment, since I suspect that b-school applications are way up (they tend to skyrocket during recessions).
While it’s impossible to predict whether or not the economy will have recovered in two years (if you were accepted this year, you’d start in the Fall of 2009, and graduate in the Spring of 2011), I think you’re on pretty solid ground.
It’s my personal opinion that although those who are predicting a recovery in 2009 are utterly insane (the economy is currently undergoing the greatest de-leveraging in history; you can’t clear up the excesses of 5 years of bubble-driven expansion in less than a year of recession), we’ll almost certainly see a recovery by 2011.
Besides, if the economy really does go to heck in a handbasket, wouldn’t you be better off with an MBA than without one? Also, if economic strain results in rampant inflation, your student debts will rapidly devalue anyways. Now that’s what I call looking for a silver lining.
The one caution I’d offer is that bad economic times are often a great time to start businesses. If you think you have a great company that you can bootstrap, strike now while everyone else is curled up in fetal position!
Ask a compelling question, and you just may see it answered right here, by a real Harvard MBA! And it won't cost you one thin dime.
All submissions for Question of the Week will be read, but we regret that only a chosen few can be answered.
Every week, we auction off a thoughtful reply to the highest bidder, so check our
3 Comments
If you can get into a top 5 or maybe top 10 school, you can justify the decision to go to b-school in economic terms. Outside of the top 10 or so schools, the economics don’t work. That doesn’t mean that you shouldn’t go because there are many other reasons to get an MBA.
One thing about b-school is that it is a great chance to re-evaluate the industry in and location at which you work.
FN is absolutely right. I wouldn’t bother with a non-prestigious MBA in this environment. During tough times, there is always a flight to quality.
Food for thought:
If you are entertaining offers from two Top 5 MBA programs during a time of insanely high applications, then you have a good chance of being an excellent candidate in a potentially horrible, post-MBA job market (if it exists).