> Ultimately, college is expensive in the U.S. for the same reason MRIs are expensive: There is no central mechanism to control price increases. “Universities extract money from students because they can,” says Schleicher at the OECD. “It’s the inevitable outcome of an unregulated fee structure.”
Why do people always reach for central control, when we have the ultimate mechanism of price control as a core part of our society (competition).
What happens when the government tries to provide for us:
they gaurantee home loans: Financial crisis,
they gaurantee drug costs: Skyrocketing drug costs,
they gaurantee your student loan: Skyrocketing cost of school
By it's nature, anything the government subsidizes is going to be taken advantage of. You either have to take full central control (lets not go there) or let the free market actually work. You can't layer the two.
Why do people always reach for central control, when we have the ultimate mechanism of price control as a core part of our society (competition).
What happens when the government tries to provide for us: they gaurantee home loans: Financial crisis, they gaurantee drug costs: Skyrocketing drug costs, they gaurantee your student loan: Skyrocketing cost of school
By it's nature, anything the government subsidizes is going to be taken advantage of. You either have to take full central control (lets not go there) or let the free market actually work. You can't layer the two.