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The World's Nicest Holding Pen (College)
Tech Central ^ | Arnold King

Posted on 03/28/2005 5:45:42 PM PST by shrinkermd

College tuitions have increased at a rate of 2 or 3 percent more than general inflation over the past thirty years, according to Cornell University's Ron Ehrenberg. This means that the real cost of going to college has nearly doubled in that span.

When a price increases by this magnitude, it is important not to lose track of the law of supply and demand. A clear implication of basic economics is that it is impossible to explain the increase in college costs by looking at only one factor. This type of sustained price increase can only occur if both demand is rising and costs are going up. Without cost increases, higher demand would induce more supply, with only modest price changes. Without increased demand, cost increases would translate into a market with fewer consumers, rather than more consumers paying higher prices.

(Excerpt) Read more at techcentralstation.com ...


TOPICS: Culture/Society; Extended News; Government; Unclassified
KEYWORDS: academia; college; costs; highereducation; inflated; keys; tothekingdom
An older article, but even more true today. College's hold the keys to the kingdom of success or so many believe. Will the Internet result in competition?
1 posted on 03/28/2005 5:45:43 PM PST by shrinkermd
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To: shrinkermd

Bill Cosby commented in a book that after looking at the cost of tuition for 1 year for his daughter, he asked if any other students would be attending college that year.


2 posted on 03/28/2005 5:55:43 PM PST by crazyhorse691 (We won. We don't need to be forgiving. Let the heads roll!!!!!!!!!)
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To: shrinkermd
It doesn't take a genius to figure out why college prices are increasing faster then inflation.

Hint, If I'm a college administrator and the gov't tells me they will pay (no matter) for some students or most students or whatever, I'm going to raise tuition as high as I can and as often as I can.

3 posted on 03/28/2005 6:01:28 PM PST by Sonny M ("oderint dum metuant")
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To: Sonny M

It doesn't help that college professors are overpaid, in many cases scandalously so..... that a charlatan like Cornell West can pull down more than $200K per year suggests that the institutions that have paid him such sums (Harvard and Princeton) are absurdly over-funded and ought to be squeezed until they return to rationality. Most colleges can't attain quite that level of excess, perhaps, but then consider that a fraud like Ward Churchill has been raping the U. of Colorado for $100K per year and you realize that even many public universities need to go on a strict financial diet.


4 posted on 03/28/2005 6:22:58 PM PST by Enchante (Kerry's mere nuisances: Marine Barracks '83, WTC '93, Khobar Towers, Embassy Bombs '98, USS Cole!!!)
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To: somniferum

bump


5 posted on 03/28/2005 6:40:40 PM PST by somniferum (All warfare is deception - Sun Tzu)
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To: Sonny M
You're one of the few who understand gov't $$$ have shattered the traditional supply/demand analysis. Take away gov't $$$ and the demand would drop like a rock in water. As it is now, the demand for college is artificially high, which has led to thousands of kids in college who have no business there. Imagine having to take a years worth of remedial courses. Also, the money is so easy, you have a lot of "institutions of higher learning" that are little more than babysitting services.
6 posted on 03/28/2005 6:41:05 PM PST by Founding Father (Another pearl of wisdom from my imaginary mind.)
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To: Founding Father
You're one of the few who understand gov't $$$ have shattered the traditional supply/demand analysis.

That depresses me.

I think if somone logically showed some guts and explained this out, alot of kids would get the message as would the people.

Common sense should be common, not some kind of hidden truth.

7 posted on 03/28/2005 6:45:55 PM PST by Sonny M ("oderint dum metuant")
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To: Enchante
that a charlatan like Cornell West can pull down more than $200K per year suggests that the institutions that have paid him such sums (Harvard and Princeton) are absurdly over-funded and ought to be squeezed until they return to rationality.

As much as I hate it, I'd have to cut Harvard some slack, simply because their biggest source of money is probably from their in house investment fund.

That fund makes them a fortune, by using alot of wise and shrewed investment strategies (not to mention a consistant and rational investing strategy and proper diversification) its been the equal of having a major bank or donor in your pocket.

Now add to that, that they do milk the government, but less so then many other schools. I'd much rather see these schools forced to generate income to supplament their incomes off of investing instead of seeking out the gov't and tagging them for handout for every kid (alot of whom are not prepared nor should even be there).

8 posted on 03/28/2005 6:51:13 PM PST by Sonny M ("oderint dum metuant")
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To: Enchante

Victor Davis Hanson had an excellent article on the 3/24
N.Review Online titled "The Seven Faces of "Dr." Churchill.
Churchill is exposed as a total academic fraud. It's
very revealing as to how and why he could so easily
hoodwink a susceptible academia. Incidentally, college
costs are rising partly due to massive public grants to
students but also because colleges and universities
spend enormous sums on such things as athletics, professorial sabbaticals, specialized research and other
things that do not financially assist most undergraduates.


9 posted on 03/28/2005 7:04:55 PM PST by T.L.Sink (stopew)
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