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Showing posts from May, 2014

Why College Cost So Much And Tuition Risen So Fast And We Still Pay

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There has been lots of talk about the cost of education and how to pay for it these days. Obama has made it part of routine talking points.  It is sure to come up in the election campaigns.  However, nobody is talking about what caused exaggerated tuition increases in the first place.  With my love of the use of analogy to lead the reader to reason, here are two scenarios (one building upon the other) that explain, crudely, what happened.  ( hint, in all the stories in that Bible book, only one type of person made that Jesus character angry enough to take to mild violence.)   Read, enjoy, comment..

The first scenario starts with a "producer" who produces this product called "education". His target market it a group called "the people". Because market "value" is set by the equilibrium point  derived from the price "The People" are willing AND able to pay for the "education", the price is set at $5000 per education. (using numbe…