“Ignorance” of the simple economics of college education drives increased cost and lowers the value of education

The economic world in which some of our leaders live.
The economic world in which some of our leaders live.

Many people in politics are fond of saying that “education” is the answer. More people need to go to college. This will solve society’s problems. Everyone must have a sheepskin. What is never said by these politicians clamoring for more college for everyone, for increased money for student loans etc., is that their campaigns are often funded by people at colleges and universities. Barack Obama’s biggest contributor, even bigger than Goldman Sachs (which was number 2) was the California state college system in 2008. Now do you think all the well healed professors and administrators who threw money Barack’s way had any interest in keeping the student debt game going? You bet they did, and do. Student aid is a direct conduit of taxpayer money to colleges. And colleges have been binging for years and years.

With all the federal money flowing to universities the price of education has understandably risen. It is simple, and I mean simple, supply and demand. But many people, including powerful people who should know better, do not grasp or choose to ignore this fact.

(From Reason)

When a politician says something that indicates a serious fundamental ignorance about economics or crime or really any subject, it can make you wonder whether they truly don’t know what they’re talking about or whether they’re cynically assuming the average voter won’t know enough to realize the flaw.

With Sen. Bernie Sanders it can be a toss-up. He recently tweeted a particularly stupid complaint about college loans, whining that there’s no reason why their interest rates should be higher than for cars or mortgages. It was pointed out that cars and homes can be repossessed or foreclosed upon, thus reducing the risk from the banks for providing the loan and reducing the potential losses.

Does Sanders even understand this? Who knows?

Click here for the article.

ACC is a completely non-partisan organization. We do not support/endorse or oppose any candidate for office. We believe that both major parties are heavily influenced by special interests and will report on crony capitalism wherever and whenever we see it.