As high as tuition is if the govt. Starts covering it you'll see the college's doubling and tripling tuitions. And then the system will go bankrupt
@nowwhat? That's the other problem! High tuitions and profit - where does it end?
Profit is not the problem. Profit is a very healthy market signal. It’s purpose is to clearly indicate to the entrepreneur that resources are being used wisely. Conversely, losses are a clear market signal that resources are being wasted. A business incurring loss is a healthy thing (from the perspective of resource allocation). The business will have to change and stop wasting resources, or go out of business and stop wasting resources.
The issue here is that all of the normal, important market signals have been disabled by government funding. The government floods the market with funds, and colleges aren’t seeing the normal loss side of the equation. They aren’t discouraged to limit these wasteful gender feminist dance studies programs. In a market, they could not support the nonsense. People wouldn’t pay for it. To the contrary, the government money isn’t stopping, and the schools have little choice other than create these low IQ programs to absorb the demand.
Where does it stop? It stops when the government money stops. Prices will fall, quality will again rise. Until then, prices will rise and quality will fall - just like healthcare. #LookAtSimonsChart