Monahorns
10,000+ Posts
I think y'all are talking about the symptoms not the cause. Universities have more money to spend on infrastructure and non-teaching administrations because they have more money. Not the other way around. Those things don't generate money they consume it.
I think Statalyzer is correct that college degrees increase a potential employee's attractiveness. That increased demand. That leads to higher cost.
But the other side of the that is that the government also made it easier to get loans, even for more money than the degrees would economically justify. This facilitated many more people going to college who would either not go or go to cheaper schools or work and school part time. That increased the $s into universities even further.
At the same time the government controls licensing and entrance of new universities into the market. Supply is restricted which means increasing prices don't do what they do in a free market which is signal others to enter into the higher education market which would stabilize the price.
I think Statalyzer is correct that college degrees increase a potential employee's attractiveness. That increased demand. That leads to higher cost.
But the other side of the that is that the government also made it easier to get loans, even for more money than the degrees would economically justify. This facilitated many more people going to college who would either not go or go to cheaper schools or work and school part time. That increased the $s into universities even further.
At the same time the government controls licensing and entrance of new universities into the market. Supply is restricted which means increasing prices don't do what they do in a free market which is signal others to enter into the higher education market which would stabilize the price.