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This is the result of entirely understandable forces, with no solution in sight. High school students (and their parents) select Universities based on status fi

This is the result of entirely understandable forces, with no solution in sight. High school students (and their parents) select Universities based on status first (or second), and education quality nearly last. Worse, this is entirely sensible. There is an implicit understanding better ranked Universities are a prerequisite for higher-status jobs, moving up in the economy. Employers making the decision to favour high-status graduates is also rational: with a glut of credentialed applicants, _why_ would you choose a lower-status candidate when an equally good high-status one was available? That's leaving money on the table. Every part of this slow-motion disaster is explainable. Every individual actor is making the best choice available to themselves. And yet, Moloch wins. http://slatestarcodex.com/2014/07/30/meditations-on-moloch/ http://slatestarcodex.com/2014/07/30/meditations-on-moloch/

moduspol 9y ago
It wasn't always this way, though. Tuition rates outpacing inflation has only been over the last few decades. You're right that each actor is making (more or less) rational decisions, but federal subsidies for student loans are what throws a wrench into the mix. Previously, the decisions were all the same, but consumers had much more limited capital and were far more price sensitive. Now they can get bigger loans much more easily, and sure enough, they're willing to pay higher prices. The less the consumer knows / cares about the price of something, the faster that price will increase. See also: health care in the US.