I usually don't weigh in on these issues; however, I have seen/heard this statement for several years and it has not been true to my experience. While it is completely true that PhD training is totally unnecessary for private sector, not for profit/non for profit, or policy related careers, more and more there is a glass ceiling for those without PhDs. I have an MA from Columbia in Quantitative Methods and work at a policy oriented research center and CANNOT be promoted above my current level. I realize that my current job has slightly more stringent rules than other organizations, other students from my MA program have had the same experience in general. Even if you can get promoted, you are often looked down upon by the PhDs in your workplace (of whom there are more and more every year). Furthermore, while some places will promote you after 5+ years (time it takes to get a PhD I realize), you will most likely never be reach the upper echelon with the current trend towards degree inflation. More and more almost everyone gets MA/MS degrees. If you want to be respected within a policy center, you need a PhD. I realize this may sound excessively negative, but it is the truth. I know, I don't plan on being the VP of a Non-Profit Policy Center, but I just think you have to aim high to reach some where in the middle. I just wanted to add my experience to this discussion as it does get incredibly frustrating to constantly face a glass ceiling.