Higher Ed Bubble on the Brink

by Ryan on July 21, 2011

in Anything Else,Culture,Economy,Education,Health Care,Politics

Election and political guru Michael Barone has an interesting article about what he sees as the next financial bubble to burst:  higher education.  He makes the argument that higher education costs have all the hallmarks of a bubble, especially since government intervention has coincided with huge tuition increases beyond the rate of inflation.

It’s very similar to the housing bubble in that the government promotes the idea that everyone should be a part of it, whether or not they can affording it or have any business being there, and therefore makes it easier to attend through increased public subsidies.  Case in point:  in the Obama Care law (for some reason), student loans are now primarily controlled by the feds.

Hence, prices skyrocket, more people are in more debt than ever before, and in the current environment, for example, we see the most educated waitstaff ever at TGI Fridays!  This growth of debt cannot be sustained forever; the bubble will eventually burst.

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The Ever Inflating Student Loan Bubble | Axis of Right
August 20, 2011 at 8:28 am

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