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Why college tuition is so high –

One economist testified before Congress that federal spending on higher education is one of the primary causes of rising tuition costs. Dr. Richard Vedder, adjunct scholar at the American Enterprise Institute, argued that this illustrates the Law of Unintended Consequences. Most people believe that federal aid helps students keep up with rising tuition costs. This simply isn't the case, and good intentions aren't enough. Colleges used to have to keep tuition low in order to attract students. However, federal student aid makes this unnecessary by subsidizing the schools. This allows colleges to attract students whether or not they make themselves affordable -- after all, tax dollars will make up any difference. Poorer students get financial aid and wealthier students are able to handle the rising costs, but the middle class gets stuck with higher costs and huge debts.

In our market economy, the universal tendency -- virtually without exception -- has been for products to increase in quality, decrease in price, and steadily become more widely available to more people.  But as Vedder argued, it is no coincidence that the two areas of the economy where the government is most involved -- health care and education -- are the two areas with the greatest price inflation.  In both cases, the solution is not more central control, but less.

From the Federalist Patriot

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