Posted on 08/26/2022 12:15:48 PM PDT by karpov
It is indisputable that the U.S. faces the worst inflation in 40 years, an outcome that seemingly no one was predicting a few years ago. The impact on Americans of rapid, unanticipated price increases varies. Retired citizens living on interest income from bonds and fixed pensions are badly hurt, for example, while some others, including owners of inflation hedges like gold, land, or real estate could conceivably profit.
In the short run, colleges and universities will be losers from inflation, partially for reasons peculiar to the workings of higher education. To borrow a term once used to describe slavery, colleges are now America’s “peculiar institution.”
Whereas grocery stores, gas stations, and airlines change their prices weekly or even daily, universities set tuition fees that exist for a minimum of one academic year. If the Consumer Price Index is reasonably correct, each dollar of tuition schools collect this fall was worth around $1.08 (in today’s dollars) a year ago, when university decision-makers decided on fees for the year ahead. The more rapid inflation becomes, the more colleges lose purchasing power.
Aggravating the problem, a few years ago large numbers of colleges embraced a tuition price-guarantee program. Students were guaranteed that the tuition fees in place when they entered school would be maintained for four (or even five) years.
Therefore, it is conceivable that some students will be paying tuition fees, in two to three years, that are 20 percent or more below current levels in inflation-adjusted terms. What seemed to be a good marketing ploy for colleges will now damage their finances.
(Excerpt) Read more at jamesgmartin.center ...
Glad to hear it.
I’ve extremely limited sympathy.
Do Colleges and Universities pay taxes?
They’re ludicrously overpriced as it is.
Dump all the admin, DIE “deans” and other Useless Eaters on the payroll with their Public Administration degrees and the costs go down dramatically.
When the Democrats have One Party Rule everything will be Free anyway no matter what country you live in ,LOL
Finally! Some good news on a Friday.
they’ll just raise the rates
Universities - lay off your diversity admins and other admins that are not needed (95% of admns). Lay off educational staff teaching course core subjects that are not employable (gender studies, etc).
China will take care of them.
Good!
Joe’s little debt forgiveness plan likely shoved a dagger in the university. Pity.
“Finally! Some good news on a Friday.”
I think this is just them trying to justify the high cost of tuition that force students to get loans that us commoners get to pay off for the spoiled brats.
So we are the ones paying the colleges. Harvard has $53 BILLION in endowments. Why does college cost so much?
Just the opposite.
I saw a poll of idiot youts who believe this will be an annual event.
They’ll borrow more than ever to spend at uni.
Largely because "Big Education" is a money laundering device to Democrat candidates.
The poorer schools can expect a federal bailout. All they need do is ask. Biden & Pelosi are shoveling money out the door
Fire all that huge DEI staff. Last in, first out.
They are 99% "Non-Profits" and do not pay almost any taxes (other than employer taxes on their employees salaries and benefits).
Fine - they can use their billions to handout free tuition - As Kudlow said these institutions are nothing more than hedge funds with a classroom attached.
May they go bankrupt.
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