March 31, 2013

College Tuition (Inflation)

As a college student I believe that college tuition and costs are too high. On Forbes website I found an article that talk about college costs being out of control. A few things mentioned in the article were the comparison between College Tuition & Fees Vs. Overall Inflation is 498.98 % to 114.85. Also, that state colleges and universities in the past have controlled prices somewhat by throwing more tax dollars at institutions and through private funding. But lately the trend has reversed, the costs are continuing to rise and with less effort to control these costs. There needs to be fiscal accountability for these institutions of higher learning.

The fact is Inflation is why too high for college tuition and isn’t even close to what the overall inflation rate is. Inflation is taxation without representation. So as college students and citizens in the United States we should not allow this extra tax to be associated with our college degrees. Obviously, we need to hold our government more accountable for keeping the purchasing power of the monetary unit as high as possible.  We need a government that isn’t worried about the way they necessarily spend the money they have, but how the money they have is obtained. With inflation and the loss of monetary purchasing power, prices do not change to the same extent. This is what examples the different relationship between college tuition inflation and the overall inflation. Because there will always be prices rising more rapidly than others or falling more rapidly. Why is inflation so high though? One of the main reasons could be because the government is giving out loans, grants, and money to students and colleges that was printed or aka inflation money. Another reason could be that there are subsidies involved, and so many regulations within the government related to these colleges.

The answer to this problem to getting rid of this hidden tax is to have a government that is doing everything it can to keep the purchasing monetary power as high as possible. The way to do this is eliminate as many manipulated unions, and government policies to leave the market unhampered. Make relative price more important and not the price level and you will see inflation not continue to grow as it is.

No comments: