As you no doubt heard, the latest example of the liberal racket, in which they create a problem with their income redistribution schemes, then confiscate money from the productive to hand out to their friends and mascots, while pretending to solve that problem, is Barack Obama’s plan to help poor, long suffering liberal arts grads suffocating under the crushing debt that they incurred to get their worthless degrees.
Do you think health care costs have skyrocketed over the last ten years? They have, but not as much as the cost of college. Now, I’ll bet most of you will answer the following question correctly, even if you didn’t go to college: did government intervention make college more or less expensive?
From the Michigan (as in University of) Daily:
Tuition data for the University’s Law School show the effect of government intervention. Adjusted for 2009 values, yearly tuition at the Law School in 1950 was $1,884 for state residents and $4,037 for out-of-state students. In 1950, the inflation-adjusted, median personal income was $18,103, meaning that students would have earned enough to pay off a year of tuition in less than three months.
Fast forward 60 years: tuition for the Law School is currently $41,310 and $44,310 for in-state and out-of-state students, respectively. The median personal income is approximately $25,000. Today, the average American would have to work more than 18 months to afford a year of tuition.
What caused the difference? Before World War II, there were no government loans or grants. When these things did not exist, college was inexpensive and affordable. Government intervention in education has caused costs to skyrocket.
Besides driving up the cost of education, the government is driving down its value. Since fewer individuals went to college before World War II, people didn’t stay in school very long before they joined the work force. Today, however, with guaranteed loans, droves of Americans obtain college degrees. Thus, the value of the degree has diminished. This is basic supply and demand. To stand out, a student must obtain a graduate degree or Ph.D. These students spend more years in college, accumulate more debt and delay their entrances into the work force, where they can actually make money.
Today, anyone who wants to go to college has access to a loan co-signed by the government. Students then bid and compete against one another for spots at universities with government money. There is no restraint on the demand, which causes an increase in prices. Universities love this, as it enables them to increase admission costs knowing that the government will guarantee the debt. If anything, college tuitions should be decreasing. We are currently in a recession and demand for highly skilled workers has diminished. Unemployment is high, and incomes and the economy are shrinking — yet college prices continue to rise.
Could colleges afford to charge $30,000 a year if government loans did not exist to support this artificially created demand? The answer should be obvious. These programs mean that colleges have no incentive to bring down costs.
The reality of everything that liberals say is the exact opposite. They always pay lip service to those who play by the rules, but they now they want to reward people who borrowed money and now expect to whine, beat on bongo drums and refuse to take showers so that they don’t have to pay it back. They claim to want to help “working families,” but now want to effectively shovel tax dollars into the coffers of elitist college professors and administrators who took oodles of cash under false pretenses.
Obama’s latest plan is breathtaking in its undisguised political cynicism. Rasmussen reports that most Americans oppose this racket, but that doesn’t matter. Remember, most members of this audience reside in the bottom of the Obama pyramid, the group whose job is to silently submit and pay while the royalty at the top live large, and those in the middle receive the favors they dole out. That’s why most of you will be expected to work until you drop dead so that members of public employee unions, especially school teachers, can retire in their late 50’s at 75% of their average salary. Now you are being asked to also pay for the “educations”, and I use that word very charitably, of spoiled brats whose votes are essential for Barack Obama’s re-election. It’s beyond nauseating, and if the American people allow this bunch to pull this scandalous plan off by not showing up in droves to vote them out, we deserve what we get.
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