Sunday, September 6, 2015

Government Subsidies to Students Drive Up College Tuition

Awhile ago someone pointed me to a meme somebody else made with my photo. Although I did not say what was included as the caption, I generally agree with the sentiment. Mundane economics indicates that when the government subsidizes consumers, they will demand more. Recently William Shuggart explained why it is true that when government money is poured into the hands of demanders of higher education, the demand for college increases, resulting in higher tuition. A recent study by the New York Federal Reserve Bank corroborates this principle.


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