Monday, March 22, 2010
Student loans beget tuition increases
Subsidize an activity through the private sector, gradually getting the public to think of the subsidy as an entitlement. Student loans are a perfect example. The idea that the government shouldn't subsidize tuition is considered highly radical today, even though, as Cato's Neal McCluskey points out, we have decades of evidence that these subsidies have just been captured by tuition-hiking universities. (Do you think it's a coincidence that, as universities have grown rich from public money, they have filled to the brim with advocates for a much more robust federal government?)
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