COLLEGE - the next bubble

"One of the oldest economic maxims, 'if you subsidize something, you get more of it' has created the next trillion dollar-plus bubble for which American taxpayers will be on the hook. The National Center for Public Policy and Higher Education discovered that published college tuition and fees increased 439 percent from 1982 to 2007, while median family income rose 147 percent. What is driving those costs? The idea that every high school graduate should attend college, and that government -- meaning taxpayers -- will guarantee loans made to those students. ... [A]s college tuition costs increase, the government makes more funding available to students to pay for them. The more funding available -- guaranteed by the taxpayers, so that colleges never face the possibility of a loan default -- the more they can raise their tuition costs without ever having to worry about getting stiffed. ... If college tuition, aided and abetted by government subsidies, continues to almost triple relative to family income, at some point the amount of debt incurred to obtain a college degree will surpass the additional income one may derive from it. Considering that any attempt to reign in government's role in facilitating these runaway costs is inevitably characterized as 'depriving needy students of critically needed funds,' the trend is likely to continue. Or at least it will until the bubble pops, exactly like the government-abetted housing bubble did. Are Americans ready for another trillion dollar bailout precipitated by irresponsible government?" --columnist Arnold Ahlert (my emphasis)


Mr. Ahlert sees clearly the problem of Government subsidies.  We had all better start listening!