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Only if you ignore competition.

• greedo 10y ago
  Competition between colleges and universities hasn't done much to keep tuition costs in check.
  • lettergram 10y ago
    That's not what the previous commenter was discussing. College/Universities have no incentive to lower the cost of tuition because everyone can get a loan for what ever they charge. The idea being, the government has removed financial competition and there is no "best for your money" because many students can get a loan for where ever. The way to change this, is to obviously not enforce/have the law enforcing the payback of all student loans. This will dramatically drop attendance at outrageously price universities, forcing them to either drop tuition (or just take more out of country students).
    • greedo 10y ago
      Landlords will have no incentive to lower costs either; they have the opposite incentive, charge as much as the market will bear.
  • clavalle 10y ago
    Hasn't it? I see your point. Tuition costs is a good example and I have no doubt that they have risen to capture the money made available through loans and grants. But what makes that different is that student loans can /only/ be spent on tuition and related expenses (college textbooks have done a nice job of capturing that excess as well). Yes, rent is needed and somewhat sticky (people don't like to move a lot), but when you are getting a cash infusion your choices are as large as the market. It is not 'captured money'. I think that if Basic Income is going to have a problem similar to tuition costs to student loans, rent and the housing market in general is where it will show up, perhaps with grocers, too, in constrained areas that have few choices, but I think it will be less of a problem because the 'capture' is very loose compared to tuition and student loans.