Nice article, but doesn't go into why the costs are going up. Are the professors not teaching the classes, are they getting paid too much. I suspect the costs have to do with demand, and that the federal and state government subsidize the costs. With grants and now subsidize by allowing most student to have easy terms to borrow money. I can tell you as an average working person say of 35 years old, in the open market place no bank will lend them 30 to 40 thousand dollars as an un-secured bank loan at 5%. this subsidy allows the colleges to raise prices. Then there just are not enough colleges, most colleges were build (physical plant) with wither direct state tax money or in the case of private or relegious universities build with tax deductable donations. Universities do not pay property taxes.
its purely a function of government intervention, both in inculcating public opinion and subsidizing schools. it is economic law that when something is subsidized below market level it follows that it will be overused.
Nice article, but doesn't go into why the costs are going up. Are the professors not teaching the classes, are they getting paid too much. I suspect the costs have to do with demand, and that the federal and state government subsidize the costs. With grants and now subsidize by allowing most student to have easy terms to borrow money. I can tell you as an average working person say of 35 years old, in the open market place no bank will lend them 30 to 40 thousand dollars as an un-secured bank loan at 5%. this subsidy allows the colleges to raise prices. Then there just are not enough colleges, most colleges were build (physical plant) with wither direct state tax money or in the case of private or relegious universities build with tax deductable donations. Universities do not pay property taxes.
ReplyDeleteits purely a function of government intervention, both in inculcating public opinion and subsidizing schools. it is economic law that when something is subsidized below market level it follows that it will be overused.
ReplyDelete