Fri 5 Mar 2010
How *not* to cut tuition costs
Posted by Tom VanAntwerp under Blog
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In response to this particularly horrible column by a couple of SDS members in the Daily Tar Heel yesterday, UNC-CH College Libertarians member Will Harris wrote this letter to the editor:
I appreciate Sarah Baker’s and Ana Maria Reichenbach’s support for accessible higher education for the poor and for undocumented aliens, but their demands are based in the ideology of entitlement rather than in sound economics or finance.
College tuition has been increasing much more rapidly than inflation since the early 1980s. Part of the reason for progressively higher rates is government aid. As available government aid has continually increased, so have tuition rates. It’s counter-intuitive, I’ll admit, and I’m not saying there should be no financial aid, but there is evidence to this effect: A Cato Institute study looking at 16 years of data found a correlation between rising aid and rising tuition of 0.97—nearly a perfect correlation.
In economics, when demand increases faster than supply, prices rise. When much of student expenses are government subsidized, more students will want to attend college. As demand rises more quickly than the number of professors and class room seats, so too does the tuition rate rise.
Baker’s and Reichenbach’s recommendations do nothing to address this major problem. Rather, they favor robbing the private sector. This is an impulsive suggestion that reveals their poor grasp of economics. With the economy in tatters and unemployment as high as it is, it makes no sense to attack RTP. Singling out and increasing the taxes for that vital sector of the North Carolina economy would not lower college costs. It would merely cause economic hardship for the companies and their employees by increasing their overhead. This could ultimately drive high-tech jobs out of North Carolina.
The cost of college is a serious issue facing millions of Americans, and it deserves equally serious contemplation. I do not believe throwing tantrums and advocating the plunder of legitimate business is a worthy solution. Please grow up. You’re making college students look like spoiled brats.
William McLeon Harris
Junior
History, Political Science