Tuesday, February 22, 2005
Common sense -- not Thomas Paine
If the government gave a $5,000 subsidy to anyone who buys an automobile, do you doubt that the price of automobiles would go up — perhaps by $5,000? Why then does no one see any connection between government subsidies to college students and rising tuition?
Well, not quite five grand, subsidies never work out like that because of varying elasticity. But yeah, it's safe to figure that price'll go up about 2.5 G's or so.
Which means that college tuition is probably up 20 G's or so. Ick.
Well, not quite five grand, subsidies never work out like that because of varying elasticity. But yeah, it's safe to figure that price'll go up about 2.5 G's or so.
Which means that college tuition is probably up 20 G's or so. Ick.
