First off, I know education != going to college. But let's be honest, some people who spend years of their life studying full time are probably learning more than people who watch a few videos after work. It takes a long time for most people to learn certain skills and without a dedicated place, timeframe and support network they probably won't learn those skills by themselves.

I don't think spending too much on education is going to cause the next bust of America. I think it will be a case of everyone else spending so much more than the US. In a services-based economy your main capital is your people. Many traditional universities will fail, because there are too many mediocre schools (also cheaper alternatives and expanding high-end schools). This will, however, result in fewer people studying anything past high school.

There are significant problems in the US higher education market but hoping for its demise will not fix things. Good luck competing in a hypothetical free market against far more educated populations.