On Sat, Aug 22, 2009 at 12:51 PM, W. wrote:
I haven't even finished your piece, but I think it's great, interesting topic, good info, and well written. I have a question, I feel is important so I hope you know; Why did "the college tuition rise more than any other good or service since 1990"?
What are the main factors that led to this huge cost in such a short time?
Please let me know or where you found that statistic. Thanks
Thank you for writing.
I am working on a book with the working title "Hacking Education" and I will address this question in an entire chapter. There are many different explanations; the combination of government subsidies, the secondary loan market, and cost shifting from states to the federal government are the top three. Imagine if people could take out a low-interest mortgage from the federal government to pay for their routine health care costs and you'd have pretty much the same situation, with hospitals charging even more than they do now to take advantage of that federal loan money, which was in turn sliced and diced and resold as derivatives.
The source for that fact is the American Institute of Economic Research. I realize people may find it amazing.
All the best,