Rising College Tuition Explained

I am going to try to explain what is going on with the cost of higher education in this country. Let’s pretend that you walk into a 1st grade classroom with a box full on candy bars to auction off. Given that the children only have the money in their own pockets, you would probably only get about 25 cents to a dollar for each bar. Now let’s pretend that the next time you attempt to do this, each child is handed 10 dollars beforehand. You would soon discover that the value of your candy bars have gone up to about 5 to 10 dollars per bar. The next time time around the children are given 1000 dollars each and you discover that your candy bars are “worth” a few hundred dollars each. People soon reach the conclusion that no one can afford candy bars without external financial assistance. This is EXACTLY what is going on with all of the funding being pumped into higher education right now. This limitless federal funding of education is falsely inflating the cost of the product and is doing serious financial damage to an entire generation. Twenty-somethings are going to be left with a lifetime of debt for something of limited actual value. This is how asset bubbles work and college tuition is in one right now. Just as the housing bubble collapsed a few year ago, this one is about to come crashing down as well.

Published by

Michael Guyer

Dr. Michael Guyer graduated from Hendrix College with a degree in chemistry and then obtained a medical degree from the University of Arkansas for Medical Sciences. He is now a software developer for Apple Computer. He has formal computer programming training in C++, Objective C, Visual Basic, Java, HTML, and Swift.

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