tag:blogger.com,1999:blog-19727420.post274916623597595713..comments2024-03-23T12:05:13.464-07:00Comments on Ideas: Why Colleges Are ExpensiveDavid Friedmanhttp://www.blogger.com/profile/06543763515095867595noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-19727420.post-3669337483488237232007-10-21T21:19:00.000-07:002007-10-21T21:19:00.000-07:00My thoughts are here: College Educations and Desi...My thoughts are here: <A HREF="http://gazuga.blogspot.com/2007/10/ideas-why-colleges-are-expensive.html" REL="nofollow"> College Educations and Designer Fashions.</A> I tried to create a link, but that didn't seem to be working.Peter Bessmanhttps://www.blogger.com/profile/07492110234410346047noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-75341361714315892702007-09-27T06:52:00.000-07:002007-09-27T06:52:00.000-07:00It doesn't surprise me at all that top colleges ar...It doesn't surprise me at all that top colleges are providing more services, and charging higher prices to pay for them. What does surprise me, however, is that the market doesn't seem to be providing a variety of products. Where are the colleges that provide a high-quality education with no frills for a low price?Markhttps://www.blogger.com/profile/03743336924287387378noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-79131101384406266292007-09-26T19:31:00.000-07:002007-09-26T19:31:00.000-07:00I don't see where all the money is going. Yes, a "...I don't see where all the money is going. Yes, a "gold-plated education," but nothing compared to the increases in prices. I've been meaning to look at the budget.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19727420.post-63322261544046384312007-09-26T05:47:00.000-07:002007-09-26T05:47:00.000-07:00So a possible explanation is that a college with a...So a possible explanation is that a college with a gym offers you a way to pay for your gym with cheap credit while a college with no gym doesn't.Arthur B.https://www.blogger.com/profile/07960779431956791836noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-42786521206307272002007-09-26T00:08:00.000-07:002007-09-26T00:08:00.000-07:00I echo most of Martin's comments and put the blame...I echo most of Martin's comments and put the blame on financing. There were not only banks here, but also government involvement through implicit and explicit guarantees, in a system that operates much like the quasi-government housing market. <BR/><BR/>And what happened there?<BR/><BR/>Hmm... home prices got way more expensive than people could ultimately afford, as well.<BR/><BR/>Sure, the homes got more luxurious, but it was the financing that drove the provision of luxuries. <BR/><BR/>I suggest that the same thing is going on in "higher education".<BR/><BR/>My own higher education was paid for mostly through loans, grants, and part-time work. It was a fairly run-of-the-mill state polytechnical school education, and I lived inexpensively. I still left with about $20k of debt.<BR/><BR/>I remember being completely undeterred at the cost of college because the financing was so easy to get and because it wasn't immediately apparent how much expensive it all was beyond just tuition (tution amounted to probably less than half my costs). But I was surprised when I got out and had so much debt, and with salaries having come down so much in IT, the debt burden was actually formidable.<BR/><BR/>We haven't had an economy as much as a debt bubble in the past couple decades as, and University education is no exception.Aaron Krownehttps://www.blogger.com/profile/10625220296615695247noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-73365204966546408272007-09-25T16:55:00.000-07:002007-09-25T16:55:00.000-07:00I think part of the explanation is on the supply s...I think part of the explanation is on the supply side here. Sometime between the 1960s and now tuition went from being funded by parents to being funded by banks through student loans. Present value of future earnings potential for college grads now is much larger than what parents can save or pay for.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19727420.post-78368629697352176022007-09-25T13:22:00.000-07:002007-09-25T13:22:00.000-07:00I would consider all the things you described as b...I would consider all the things you described as bads. Why would I pay for a high-end gym knowing that I'll never use it (no matter the guilt)? I'd rather get a cheaper tuition and pay to join a gym if I want to.<BR/><BR/>This type of offer is actually reminiscent of price floors, is there such as thing for colleges?Arthur B.https://www.blogger.com/profile/07960779431956791836noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-58527904839192641572007-09-25T09:08:00.000-07:002007-09-25T09:08:00.000-07:00All in all, our colleges and universities have tak...All in all, our colleges and universities have taken a page from the Roman Empire before the Fall and from the British Empire before 1939.<BR/><BR/>May they return to reason and normality with less upheaval and misery!jimbinohttps://www.blogger.com/profile/09684677214800358793noreply@blogger.comtag:blogger.com,1999:blog-19727420.post-36369931458801976752007-09-25T08:53:00.000-07:002007-09-25T08:53:00.000-07:00I saw much of the same while visiting my alma mate...I saw much of the same while visiting my alma mater recently to recruit students for my employer. Lots of new construction designed by big name architects, shiny new facilities, etc.; most glaringly out of place was the new pool and health club facilities (at a school with no particular athletic reputation to uphold).Anonymousnoreply@blogger.com