How do government subsidies make college more expensive?
what happens when you increase demand for something without increasing supply?
with subsidies a larger number of people try to attend college, this drives prices up.
Why did you add all of those irrelevant tags to your post?
They spend money on college students. They give out scholarships or grants, or subsidized loans, which allow more students to enroll in college and thus demand is stimulated. Becaue more money gets spent on going to college, the price rises.
What happens when people are willing and able to pay more for something?
It depends on whether or not they are even more willing and able to spend more on something else instead. [:P]
You should’ve just said “What happens when people spend more on something?” [;)]
[insert ceteris paribus]
I’m sorry. This was my first post and I didn’t know if it mattered what tags I put. Thank you everyone for answering the question.
I tell you after I graduate [:P]
In this video, Peter Schiff explains just that:
It is a property of government, take a good thing, smash it with a hammer, blow it up, then scoop up the remains and set them on fire…
You would have just emulated the government’s results on anything it touches…
I am not sure that it does, per se. You would think if more money was being thrown at an industry, that more providers of the good or service would pop up to absorb the demand. Also, if the government is using taxes to pay for it, that would mean people would have less disposable income themselves to pay for it.
I would guess the cost of “higher” education has more to do with inflation and government interference into education.
With guaranteed loans issued without regard for ability to repay or likelihood of success, nobody has any incentive to economize.
People do have to pay back loans, so there is still plenty of incentive for people to get as cheap an education as possible that is still as marketable as possible. Which means schools need to offer as low of rates as possible to be competitive.
yup, there are campuses all over the spectrum in terms of cost and quality of education in particular fields.
However, I think the cost of higher education in general has been going up and that’s what folks are addressing. As far as new universities being built to absorb the money from increased demand, I don’t got all the details or anything but I think most public universities have their land becaues of land-grants (or at least that’s how it is in some states) so they have an advantage in that a new school would have to buy/rent land.
And this would be why I say I think it has more to do with government interference into education.
ah, i missed that part [:$]
Much in the same way it interferes with the health care industry -
Increasing demand - many folks now feel that they are virtually entitled to or seduced into getting a college education; many feel they are entitled to or have become dependant on full service health coverage (Johnny has a fever, better take him to the doctor, no worry the insurance will cover the $90 aspirirns)
Restricting supply - private schools have trouble competing with state schools due to too many regulations; health care providers are prevented from practicing affordable medicine by AMA monoploy, FDA corruption, and miles of red tape (my uncle had a school for emotionally disturbed children from the early sixties to mid eighties when he decieded to close its doors soon after recieving his PhD due to many legal hasslese and nort enough time left over to properly tend to his students and staff)
Unintended consequences of gov. policies include a decrease in the quality of education and the value of a diploma, less effective health care and many doctors putting profit before the patient. (My uncle was recently murdered in a hospital when they ‘accidently’ gave him a lethal dose of ‘medicine’)
I have a suspicion that the ‘doctor’ shows on TV like ‘House’ etc are a type of propaganda to increase demand for health services much like the copper shows like ‘Law n Order’ etc. increase demand for police services. (Now folks are calling 911 when the order is bad at Mickey Ds … lol)
[:(]
exactly (except I don’t believe the TV shows are propaganda. I think they’re just folks tryin to make TV shows that get good ratings, lol)
Also, sorry to hear about your uncle. Pretty messed up stuff there. But as for dying from a lethal dose of medicine, you gotta realize that hospital workers are human like the rest of us and make mistakes. That’s why I ain’t really for people hyping up others in a profession just for having a piece of paper that says they know stuff. They’re humans like the rest of us and can mess up. They ain’t infallible.
I’ve been without tv for a long time by choice but do know that the tube is perhaps the greatest propaganda tool ever devised.
I remember a few months before the first gulf war, my friend and I witnessed a subliminal screen flash of “War is Good” (bold black print on white background) during some newscast. Albeit, we were both in a highly sensitized state of conciousness when this occurred, otherwise we probably wouldn’t have caught it. Both of our jaws dropped then we looked at each other and verified what we just witnessed.
While that is the only subliminal propaganda I’ve ever caught (and remember … lol), it’s easy to find subtle ones with examples of doublespeak and blatant ones like the new series ‘Homeland Security USA’ (just guessing on that one, haven’t seen it but the title assumes it)
There’s an old seventies movie called ‘Network’(?) which pretty much nails today’s media on the head.
Thx for your concern on my uncle, I know people make mistakes but perhaps they’d make less under a free market? My Auntie is now going to be adding to the malpractice lawsuit stats. My uncle was terminal but not overnight.