Professor Daniel Lin, who is an economics professor at American University, explains why college tuition has risen so much during the past few decades and makes it easy for the average person to understand. In fact, he does a much better job of explaining this than I can!
Like Eddie Caldwell has been suggested repeatedly on this blog, this scam is designed to benefit the bankers and government cronies and has nothing to do with actually helping people go to college without accumulating massive debt in so many instances and turning them into indentured servants. This needs to be emphasized if one is to talk to an attorney general and tell them about how these federal student loans are possibly unconstitutional according to the uniform bankruptcy provision in Article 1, Section 8 of the United States Constitution.
College tuition is a problem of too much demand due to the belief that having a degree would lead to better chances of employment and the federal government artificially propping up demand through subsidized student loans, which distort the market. There is definitely an engorged education sector and it seems that the politicians have no incentive to stop it from growing worse. Debt slaves mean more votes for these politicians who are controlled by banker cronies. 2/3 of college students don't graduate in four years, while 40% of them drop out, meaning the United States currently has the largest college dropout rate in the world according to this LearnLiberty video!
In the end, eliminating these price control subsidies and encouraging more apprenticeship programs are the best solutions to remedy a problem that has gotten out of control. I would also add that abandoning useless prerequisite courses that have nothing to do with a field like engineering or nursing, unless it's a necessary math or science course, would also help cut the amount of time that people spend in college. State funding cuts alone aren't the primary cause in college tuition rising 1,120% in only a matter of 30 years!
4 comments:
Does the US constitution really deal with this mess?
Thank you for everything you have done.
But I cant help thinking that there is something bigger than everyone out there called student loan debt that is bigger than the us constitution and having lived under all of this for many years I would assume it is a loophole in the US constitution?
Does anybody care?
There are a number of problems with your statement. Calling the issue "bigger than the us constitution" is a strange way to frame the issue. The Constitution is available to protect those that read it and say to the courts, I know my Constitutional rights. Someone out there should declare bankruptcy and say to the court, I have a Constitutional right here. Student loans can not be excluded from bankruptcy because that violates Article 1, Section 8.
Second don't assume there is a loophole in the Constitution. Rather, the evidence is that bankers have set up this scam and have fooled millions into believing they are not protected.
That doesn't mean a court will rule with students the first time such a maneuver is attempted. If enough people made Constitutional claims against the bankruptcy exclusion eventually the exclusion will fall.
So, yes I like to think I care. I built this site for students and their families in debt to this banker regime. I am not in debt anymore for school loans. I see my nation enslaved by debt and would like to bust the bankers' hold on the situation. I would like to see the Federal Reserve shut down too.
If there was any way to do this right now, I'd replace the Federal Reserve with a George Selgin influenced free banking system or even a free market fractional reserve banking system, but sadly, I don't see it ending anytime soon, so really the best the Fed can actually do is remain as passive as possible. They've gone overboard with QE2 and QE3 and should have stopped after the first quantitative easing so prices and the money supply would have been stabilized and set the inflation rate to 0. After that, it's really unnecessary, because all they're doing after that is just printing money, though they don't really physically print money anymore.
Yes, the kind of banking system I'm picturing of would be decentralized. There wouldn't be a central bank if this were to happen and people would be able to use whatever currency they wanted, even if it were some type of fiat currency. I have my doubts about whether returning to the gold standard would be effective. In fact, for much of U.S. history, we were actually on a silver or a bimetal standard. The Bretton Woods system was basically a "gold exchange standard" and not quite the same thing as a gold standard itself. Bitcoin is looking very promising right now.
I got off-topic, but I thought I would share some of my thoughts that came to my mind.
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