I’m a student at a private college and I believe I can account for why the price is so high, and why we don’t have more schools and more teachers.The system needs to change, and I believe that nothing can bring it the change that is necessary better than the free market.
There are many entrepreneurs that want to start a college simply because it is extremely profitable and it is perceived that schools earn more than a fair return. This is ECON101, and a natural process that has been keeping markets in equilibrium since the dawn of civilization. Unfortunately, new firms can’t enter the market due to extremely high barriers to entry created by the government in an attempt to “protect” what they believe we should be taught. The same can be said about teachers. There are plenty of people out there with valuable information that aren’t qualified to teach at these universities simply because they do not have the credentials that the government deems necessary to teach.
Right now, schools don’t simply consist of students and teachers. Supported by tuition, exploitation, and your tax dollars in countless ways, schools almost necessarily have sports teams, on campus housing, cafeterias, and countless other services. Some colleges, such as mine, make paying for these services mandatory, which is nothing short of exploitation. I’ve been fighting unsuccessfully with the school to get out of my meal plan and living in the dorms, because I don’t want to and simply can’t pay the ridiculous prices for them. In a free market, they could never get away with that, because they would lose so many students such as myself over it. I can’t simply transfer to a different college. I would have to give up all my credits that won’t transfer, and would probably find myself fighting the next school exercising their monopoly power.
Another thing responsible for high tuition, is, of course, loans. Extremely low interest rates and the availability of loans for students has vastly expanded the demand for them. This is why we are experiencing such a shortage, and it also makes it possible for students to pay these ridiculous fees to attend college. Rather than requesting the schools run more efficiently, government tosses more money their way in one way or another and sends the price up some more.
I could rant all day about why I hate the school system, how it is exploiting students, how it is becoming more of a part of the problem than the solution, and what government is doing to make it all worse. If only the Mises institute could offer me a degree [W].