[jmj42]

The problem with Caplan is that he fails to prove that signaling is socially detrimental. The signaling theory makes sense, and I accept that it could be at work, but I'm not convinced that signaling is inherently bad, nor that there isn't intrinsic value in higher education.

Further Caplan tends to focus on liberal arts education, and ignores hard science and engineering. This, of course, means that only part of the education equation is being considered.

I fear, (and this is at risk of completely throwing my argument off the rails with fallacy), that what may be at work (Caplan) is more a case of dogmatic adherence to libertarian ideology. With a lack of demonstrable social implications, signaling becomes largely irrelevant as an argument against the system, as it is.