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Except that, the way education works in USA, has little to do with the "free market". The free market is vastly distorted by the government guaranteeing student
by pakitan 8y ago
Except that, the way education works in USA, has little to do with the "free market". The free market is vastly distorted by the government guaranteeing student loans. I can assure you the picture would be very different if lenders had to actually assess every single loan candidate and applicants had to put up some collateral for the loan. The endless stream of free money to the universities would then stop and the students will get more careful with choosing a college and a degree.
I'm not saying free market is the best way to go about education but it's certainly better than what USA has now.
- forapurpose 8y agoIMO, this is yet another conservative argument to put more money in their own pockets (by reducing taxes, accomplished by reducing investment in education). No matter how cynical, the results of the argued policies are always the same. Colleges are not victims of some Godlike invisible economic hand; they set their prices as they wish, and before this dogmatic obsession with the market, they set the prices to education as many people as they could - that was their mission, not money. Instead, they are acting as market participants selling a service for which there is inelastic demand - their customers almost can't say no; education is almost invaluable. Therefore they can raise their prices indefinitely - similar to health care. The problem is not that we are funding students. The problem is market pricing for education.