That's what happens when the government subsidizes something. Healthcare and education are the most obvious examples of government subsidies inflating costs.
Your logic defies basic economics. Subsidies artificially inflate demand, and increased demand causes prices to rise.
Watch as this thread now drops off the board. when you present proof that gets to the real roots of many of our economic problems it most often falls on deaf ears. Case in point: Ron Paul.
When Bush was president libs used to scream bloody murder every time the price of gas went up. According to them it was Bush's greedy oil buddies making obscene profits at the expense of the public. But when the greedy college professors gouge the public with ever increasing tuition libs are silent. Lefties are such hypocrites.
Today's students are discouraged from taking more than 15 hours load. But "full load" tuition generally allows for up to 19 hours. I never took less than 18 hours and took as high as 24 hour (yes, overload tuition). No wonder today's kids rack up huge debts. Inefficient use of money and deliberately extending the time spent in college. Too many "disciplines" where a bachelor's degree is useless. What kind of job can you get with a bachelor's in psychology?
Ayuh,.... With the Government in the middle, between students, 'n Colleges, What else would you Expect,..?? Anytime the Government gets into Anything, it creates it's own Inflation.... Btw,... You list only 2 options for a Career, 'n you completely miss the Best career that ya can build for Yerself,.... Start a Business, 'n be yer Own Boss....
The administrators in the U.S. college system have grown to ridiculous numbers. Today we have 2X administrators to professors. Most of them are..... wait... for.......... it.... PUBLIC UNION EMPLOYEES. It's just another way to suck up more tax and tuition dollars for the unions and Democratic Party.
My tuition is free because I served my country. The higher the tuition rates the less competion for one who has served.
Don't ya know. Since 2008, presidents can't effect the price of gas at the pumps ----- according to those hypocrites.
I'm glad I locked in one of my kids education 3 years ago. Florida Pre-Pay for the win I guess. My other will be tougher since we only locked in 1/2, but we'll figure out a way pay the other 50%. Are professors' salaries rising in lockstep with tuition? If so, that is as scummy as it gets. The interesting part about all of this will be, what happens when we recover? Will tuitions decrease again or will they just keep skyrocketing. There has to be a ceiling where its just not worth going anymore. Your average state school that isn't highly ranked has no place to charge anywhere close to one that ranks higher. I guess toilet paper degrees like University of Phoenix and their ilk will start becoming even more popular. HR still laughs at those.
I thought the Feds are taking over the whole student loan system? If so, they will begin to tell the universities what they can charge like they do to our doctors.
Laughable. Let's break this down. Conservatives, for the most part, agree that any costs a business incur are than passed onto the consumer. I.E., increased taxes, higher gas prices, etc... all make the costs higher for the business, which in turn, increase the prices of the goods they sell in order to compensate. So lets use that and incorporate universities and institutions. They receive federal subsidies ala money from the government. Now, as you suggest, somehow removing money the universities receive will somehow lower the tuition prices? That flies in the face of the previous theory. After all, any increased costs or expenses that the business incur are just passed onto the consumer. So if the universities are receiving less federal subsidiaries, they'll see an increase in the costs/expenses, which in turn increase prices for the consumer ala the students/parents. For what it's worth, as tuition prices have been increasing, federal subsidiaries to colleges have decreased. Your move.
Right, because there are so many schools that just don't give out scholarships. And I don't know how many options you think students have in choosing their colleges, but for most, it's not a huge selection when you consider in costs, geographical location, etc... Your second paragraph is basically a far-fetched reality dreamed up in some Ayn Rand novel.
Unfortunately, college is becoming a bad investment depending on how you look at it. The cost has been rising far faster than inflation, partly due to federal support and excessive spending on education. Wait till inflation kicks in, you ain't seen nothing yet. Many students attend for a semester and drop out before getting a degree. Others quit before graduation, due to mounting costs. How do they repay their college debt, if they can't get a decent job? What we are seeing is similar to the housing crisis in stupidity, yet we keep hearing the same liberal politicians push for increased spending on education. But most colleges are liberal voting sources for the corrupt democrat party, so tuitions will continue to rise. Obama paid some lip service to controlling costs, but we know that he could care less. What he would like to do is make college free for anyone, at the taxpayers expense. Then see what happen to tuitions, though the roof! Obama is a waste!
One main reason why college tuition keeps increasing is because the top universities set aside tens of thousands of slots for foreign students , who pay whatever they are charged. So as long as the foreigners are willing to pay exorbitant prices to attend American universities costs will continue to increase. It might soon reach $100,000 per year.
So let me get this straight. When a business sees it's expenses increase, as would be the case with colleges losing financial subsidies, somehow they'll sell their product for cheaper? That doesn't make any sense considering it's said that any increase in expenses a business sees is passed onto to the consumer via higher prices. Its seems like you have some explaining to do sammy...
Much of the tuition increase, especially in the state supported schools, Michigan State or U.of Maryland (and a host of others) is the direct result of the state legislatures slashing State support for those schools.