2019 Apr 20, 10:13pm
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When we talk about “inflation,” we generally mean to denote a general rise in consumer prices; but, properly understood, that is the result of inflation, not inflation itself. Inflation itself is an increase in the money supply, and its effects need not necessarily be general. You can inflate the money supply by printing money, but you can also do it by expanding credit. Our friends at the National Association of Realtors and other charter members of the Committee to Reinflate the Housing Bubble, for example, have a keen understanding of the relationship between loosey-goosey mortgage-lending standards and brisk sales in the face of rising housing prices (and rising commissions). Your local new- or used-car dealer knows that he can charge higher prices for vehicles that are to be financed by people who care more about their monthly payment than about the total cost. There are some critics of the federal response to the 2008–09 financial crisis who believe that the recent run-up in the stock markets and the prices of other assets is fundamentally the result of inflation through quantitative easing and other measures. (You don’t have to believe that that was a necessarily bad policy to believe that this is true, incidentally.) Easy credit contributes to higher prices.If you make a few gazillion dollars available to finance tuition payments with underwriting standards a little bit lower than those of the average pawn shop, you create a lot of potential tuition inflation. Another way of saying this is that if Uncle Stupid puts a trillion bucks on the table, there are enough smart people at Harvard to figure out a way to pick it up.So, let’s cut the Gordian knot here. Don’t reform student lending, don’t try to lower the interest rates or create special debt subsidies for college graduates who follow careers of which the people with political power approve. Just get rid of it. With a meat ax.There are lots of smart people at the universities. Or so we’re told. If they can’t figure out how to teach the liberal arts or accounting without dipping into the Bank of Uncle Stupid with both hands and all available snouts, then maybe somebody else should give it a try.
Potential? Just "potential?" Easy loans caused tuition to skyrocket.
Stop the student loans so most people can't get in college. Predictable results: - Americans are more uneducated than other nations- some colleges go bankrupts, other cut budgets, pay packages, lose key people...- key research will not be done in the US but probably in China. And yeah... that would lower college costs.... That sounds great.
Yeah, like 60% of Americans couldn't come up with $2000 for an emergency but they're supposed to pay up-front for college. Let's remove 2/3 of peoples for the education pool. After all, all poor kids must be dumb.... Or they'll get some pseudo education varnish online. Colleges will cut fat and go from $30K/year to $25K/yrs. That is not gonna cut it.