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Chart Of The Day: College Tuition Vs Real Disposable Income
Curious why distinguished, Nobel-prize winning economics professors (most of whom have their own Op-Ed columns and blogs to fill all that free time they have when they are not actually filling impressionable minds with "this time the model will work" ideas, keeping Solitaireoffice hours or coming up with arcane, meaningless equations to explain human behavior) have gone "all in" to defend a system which promotes the ubiquity of cheap credit, and the creation of a generation of nondischargeable debt slaves? Because if it wasn't for said cheap, ubiquitous debt, their salaries would be utterly unsustainable (and for once austerity would hit the academic ivory tower headquarters of Keynesianism located in Cambridge, New Haven and West Philadelphia). And for this they have to thank an economic system they created which is now disintegrating before their eyes, and in which every incremental dollar of systemic debt raises total disposable income per capita by less and less and less.
Source: BloombergBrief
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Johnny give me all your money.......your education is now complete.
Now go find someone to pay your way through life......socialism in 60 seconds.
I would love to see a chart:
"Local School District Superintendant Salaries Vs Real Disposable Income"
Tuition where I graduated 5 years ago has gone up 60 % in that amount of time. They built a nice convention center. What a waste.
My college has also raised tuition by almost 60% since I graduated in the mid 70's. The "edifice complex" is in evidence at all the colleges and universities in this area. You have to wonder if anything will ever be done about it since ZH is about the only place I know of where hard facts and figures are made available.
You should take one of my classes. I hit the students with ZH.
You forgot rule #1
Don't worry. Reality will do something about it. Reality always does something about it.
Only a 60% increase since the mid-70s? Hate to break it to you, but that's a bargain.
Educational institutions and the banks making those loans for those tuitions have been in bed together for years. Disgusting scam.
Yeah, and when you present them, the sheep downvote you because their wittle heads hurt after reading a few facts.
We don't need no stinking FACTS! RIGHT, SHEOPLE?
I just did the math for my own college.
I entered in 1992 and graduated in 1995 (I had some credits already from a community college).
During my first year, tuition was about $7,500 for the entire year. That does not include any rooming or meals cost, just tuition. This was, admittedly, a very good deal for a private college at that time and was part of the reason I chose to go there. When I graduated three years later, the tuition had gone up almost 50% to be a little over $11,000. But because I kept a high GPA, I was grandfathered in at the rate I first paid, which I think was a very motivating policy (again, part of why I chose this school).
I just checked and for the 2012-2013 school year, tuition alone is $30,672. That's a 15% increase every year for the past 20 years.
is actually more like 7.82% annually compounded... but I get your point.
True, I didn't compound it. Just simple increase divided by term. I stand corrected.
A money manager delivering near 8% for 20 years would be a multi millionaire. But 8% compound growth for tuition is easy peasy for libtard governmentcrats sucking on the public teat.
Today's college students taking on all that debt will be future govt slaves.
GA Tech was affordable back in the day. Look at the increases the last 4 years!!!!
Table 6.1 Undergraduate Matriculation & Nonresident Tuition and Fees, Fiscal Years 2008-2012 FY2008 FY2009 FY2010 FY2011 FY2012 5 Year % Change In-State Tuition $4,496 $4,856 $6,070 $7,070 $7,282 62.0% Out-of-State Tuition $22,220 $23,998 $24,280 $25,280 $25,492 14.7% Mandatory Student Fees $1,146 $1,184 $1,536 $1,646 $2,370 106.8%Yep - amazing the increases. My last quarter at Ga Tech in Spring 1977 was the first time that full-time in-state tuition went over $200. Went from $192 to $202. Paid my own way with a co-op job and no loans. Not remotely possible any more.
I was there 85-89 and I think tuition was 2500-3500 or so for in state.
They built a nice convention center. What a waste.
It will only be a waste after they build the next convention center.
The bad news is they won't be able to afford the cops or firefighters to protect it.......oh well.
I paid $30 a semester hour and that was a rip off.
It will make an excellent detention center.
Useless convention centers require steel and concrete and labor, so score that a de facto union payout that will find its way to organized crime.
Same goes for stadiums. We are a sneeze away from Weimar.
The divergence started right in 2001, when schools had to fund massive diversity departments, some containing hundreds of staff, and infrastructure upgrades. Neither of these results in a better education or students that employers would want to hire.
Government hires them, well they use to. A lot of government lay offs in the future.
AU5K
We all love a fictional racist explanation regarding everything iwrong with the world. Some of the slower readers may actually for into that victimization trap.
The reality is administration salaries have increased dramaticly. Far outstripping that of an educator.
Those administrators develop closer ties to the local politicos who need to attract money to the municipality.
Thus the viscious building drive.
Our local CC was pretty vibrant in the 70's-80's. Now it's a shit hole. Administration never grasps the necessity of quality education, and I'm putting tech at the top of the list. All they see is the ability to hire part timers when the older real educators retire.
But at the top of the blame list is the local community, we the people. If we aren't involved in the decision making process lacally, if we don't pay attention to who teaches our children what ( And I DO NOT mean the kneejerk reactionary shit espoused by some here) then why complain?
It's your own fucking backyard, why let strangers shit in it?
Get rid of the bold.
economics9698
Fag!
I don't tell you to stop sucking cocks do I?
Winning hearts and minds....one at a time.
Clearly we can't compete with the genius that is you.
lmao
That's the liberal way. Gully and a few other liberals always resort to that anytime you present any idea or comment they don't like. They just can't take it. It's like the 5 year old in the grocery store that is told, "you can't have that candy." Then they throw a fit, start crying profusely. A good ask kicking is all they need.
Come on Gully. Give me some insults. The rest of us ZHs are awaiting your nonsense to laugh at.
Gully, http://www.youtube.com/watch?v=L-7v_6uGlWQ&feature=related
Fuck off GF. Your acting like a complete douchebag with crap like this.
edit: asking why people allow this in thier backyard completely misses the mark. People don't even know their neighbors anymore. It is all tied together with the rat race accelerating into oblivion. It pisses me off as well. But, it ain't gonna change until it after it breaks.
If it makes sense.....it must be racism.
Have you been reading Ann Coulter?
Gully - I hear your rage. You should not be ashamed of being the janitor at your local community college. Off to work, now.
Nothing wrong with being a janitor. Anywhere. It's decent work that has to be done.
Debt may not matter anymore. I heard on the radio, "zero down mortgages are back. Get them while they last!"
Same for the housing market, "Flip houses in your spare time. Join our dedicated team of Flippers."
I never hear about opening savings accounts anymore. How can the economy recover with this attitude?
Also heard the same kind of radio ad lately for a bunch of crooks who had their own call-in show for a while. The local version is a bunch of idiots called the "Hell Yes!" refi specialists who sound like they have copied Jim Cramer's show complete with sound effects. They were forced off the air after 2008 by irate callers who had to be bleeped out. Not a good sign if these parasites are back on the air trying to scam people again.
Why bother saving?
Adding fees, room and board should skew the graph: Government taxes or Banking fees are not supporting the Ivory tower's pay scale, nor their multi-million dollar football stadiums. I also speculate that college students are more transient than ever, purposefully trying to find a school away from home as to not interrupt the college "lifestyle" they expect after decades of hollywood glorification; either that or they're trying to be more competitive by going to a better school in a different geographical location. Out of state = higher room and board costs.
I believe higher education IS still a bubble - just not one conclusively damned by this particular graph.
I'd like to see that graph juxtaposed by one of simply in-state tuition versus disposable income.
So you want to cherry pick. Is there a particular state you'd like to look at? U of I tuition is expected to go up 20% in the next four years as less money is available from the cash strapped state. I doubt if income will make such a recovery.
http://www.huffingtonpost.com/2010/03/03/university-of-illinois-tu_n_484021.html
Here is the data for U of I tuitions, along with minimum wage and number of 8-hour days of work it would take to pay the tuition at minimum wage, copied from blog comments on Staight Dope:
http://boards.straightdope.com/sdmb/showthread.php?t=627818
YEAR TUITION M. WAGE DAYS WORK 1966-1967 $170 1.25 17 1967-1968 $170 1.40 15 1968-1969 $170 1.60 13 1969-1970 $246 1.60 19 1970-1971 $321 1.60 25 1971-1972 $396 1.60 31 1972-1973 $496 1.60 39 1973-1974 $496 1.60 39 1974-1975 $496 2.00 31 1975-1976 $496 2.10 30 1976-1977 $496 2.30 27 1977-1978 $496 2.30 27 1978-1979 $586 2.65 28 1979-1980 $634 2.90 27 1980-1981 $682 3.10 28 1981-1982 $748 3.35 28 1982-1983 $822 3.35 31 1983-1984 $1104 3.35 41 1984-1985 $1248 3.35 47 1985-1986 $1314 3.35 49 1986-1987 $1406 3.35 52 1987-1988 $1470 3.35 55 1988-1989 $2070 3.35 77 1989-1990 $2130 3.35 79 1990-1991 $2130 3.80 70 1991-1992 $2236 4.25 66 1992-1993 $2486 4.25 73 1993-1994 $2486 4.25 73 1994-1995 $2760 4.25 81 1995-1996 $3000 4.25 88 1996-1997 $3150 4.25 93 1997-1998 $3308 4.75 87 1998-1999 $3408 5.15 83 1999-2000 $3546 5.15 86 2000-2001 $3724 5.15 90 2001-2002 $4410 5.15 107 2002-2003 $5302 5.15 129 2003-2004 $5568 5.15 135 2004-2005 $6460 5.15 157 2005-2006 $7042 5.15 171 2006-2007 $7708 5.15 187 2007-2008 $8440 5.15 205 2008-2009 $9242 5.85 197 2009-2010 $9484 6.55 181 2010-2011 $10386 7.25 179
Just taught my son and daughter how to do their own brake job this weekend...now THAT's useful education.
Life is like a box of chocolats...
when you finished 1 downpayment, there's plenty more to go!
Now thats a subject that I have personal knowledge! my daughter is in her second year and good thing we started he college fund when she was six years old. The cost of school,books,fuel,cloths,and food is outragous! The fools that say there is little inflation are exactly that, fools! I can't help it, FUCK YOU BEND US ALL OVER BERNAKE! Also she was able to apply for an academic scholarship but I did'nt let her apply for it,last week she learned that kids were getting checks for up to $500 from the unused portion on the state academic scolarships! what a mess!
You seem to be handling it fairly well.
at least she (my daughter) understands the value of money, it takes a wrecker truck to pull a dollar out of her hands!
She sounds like a fine individual.....you did a good job Amigo.
caimen garou
Dude, never say shit like that here. Someone will call her the progeny of a "joo banker".
Dude, never say shit
He wouldn't.......he's a classy guy.
Dude, fu......nevermind. Only 2 people to a fight.
That could be good and bad--good in the sense that it is hard work to not get scammed these days, but also bad in the sense that people who are perceived to be "cheapskates" are shunned socially. It's a fine line.
My wife and I constantly get calls from our various alma maters asking for bucks. I always tell them my tuition, fees, room and board were paid in full when services were rendered. These schools give out "scholarships" like candy, but only to Americans. The foreigners pay full freight. And these days, a scholarship is just a one-sided means of price negotiation. Lefty fucking Marxist bastards who have to control everything, that's what you're up against with these schools.
Ya got that right: the full tuition payers fund the scholarships. Interesting socialism.
caimen garou
Had a neice got a full boat scholarship. Third year in had a bad relationship and wound moving to Portland working three jobs to get by.
Our attoney's daughter left law school in Michigan because of a bad relationship. Now she isn't even certain she wants to follow in daddies footsteps.
Have a nephew in FLA couldn't cut it at cc, now he is in a four year state school. Want's to be a lawyer but can barely read. Asshole parents are fake hippies, talk the talk but don't walk the walk, and more or less let him drift along with their shit stream.
Son is out today checking out an engineering degree. He wants the money and has the desire. We taught him to work hard, be responsible, and think instead of parroting what everyone else says.
What money would that be?
+ 3,141592
Engineering is such an awesome field here, I am looking overseas. This isn't the '60s any more and I am tired of being managed by idiots. At least there is still some respect for the field elsewhere until the corporate world kills that, too.
And good luck finding a good engineering school, if one still exists! If it isn't research it doesn't exist. Applied Science is the place to go but an Engineering Technology degree just isn't the same (apparently).
My alma mater Georgia Tech is a good engineering school - and just ranked as the #1 value in US colleges today in terms of income upon graduation compared to tuition paid.
http://i.mktw.net/_newsimages/pdf/college-rankings-20120925.pdf
So there are good engineering schools out there. The kids graduating from Tech are smart, practical, and work hard. Not a party school. Grads "get out" rather than graduate, and Ma Tech finds many ways to give students the shaft. But wish my business could afford to hire more of them.
How long ago did you finish (if you don't mind me asking)?
I talked/worked with Aero grads (my field) from Purdue, Virginia Tech, and Ohio State and the story was the same - not so great. Maybe just that field is shot here in the States, but the ME guys I ran into weren't so hot either. More like a degree factory than a place for learning. That or just graduate student factories. This was about 5-6 years ago. I am just saying compared to 20 years ago, they don't teach anything any more.
I also wonder how the rankings are calculated and if scholarships are a factor. I know the state of Georgia has a great in-state scholarship program - I wish I could have taken advantage because Georgia Tech was one of my top picks for schools.
Im dropping out, putting my tuition into a monster box, then going back to school when its cheaper
Good call.....you'll save a hell of a lot on gas. That's really gonna tick off the boys in Brazil however.
Interesting. This chart looks identical to a chart in Chris Martenson's book "The Crash Course" pg 86 describing bubbles, in particular the housing bubble.
Is it such a bad thing though if tuition prices decline?
This chart looks so much more funny when normalized to 100 in 2001.
Michael Burry noted the chart of US incomes vs house prices and how the gap kept growing as home prices took off. He knew it just wasn't sustainable.
And the rest is history.
History rhymes (or is beginning to) indeed.
What the gov and schools are doing to students is immoral. This is not a buyer beware situation only. No rational saver would EVER loan these students money. Only a government could trigger such a wave of lending stupidity and debt enslavement.
If they want to voluntarily become debt slaves I don't give a crap but I do care when that same government and the debt slaves want to further enslave my children/grandchildren to pay for their stupidity. They already have their greedy hands in my pocket to build ridiculously expensive buildings and to fund programs as it is. And it's never enough..
Obama Student Loan Forgiveness
Student Loan Forgiveness Programs Short On Funds
Those thieves want more
Learn What the Student Loan Forgiveness Act Could Mean for You
I'm okay with with voluntary....I'm even okay with caveat emptor...but who's the buyer here? I say the lender is the one who should "beware". The burden should be shared by the lender to do everything they can to make sure this kid gets a marketable education thus helping to ensure payback. When there is no marketable education, there is no payback. period.
School, to absorb all the kids who should not even be in college have created all these fluff degree programs just to give them a chair to sit in to justify their debt. This is absurd. Schools that do not create a market for their degreed graduates should be penalized with lower (to zero) student loans eligible for that degree field.
One thing you learn in philosophy class in college--morality doesn't mean a damn thing. Whose morality? Where? Morality is completely situational. Everything you get taught is how flimsy morality is, which is correct. Now, if you want to talk about ethics, that's another issue. They still don't care, though. They practice situational ethics, too.
The lenders--our banking friends--aren't stupid; they profit handsomely with this scheme.
Just wrote a check for one semester of college ($28,500).One effect of this is that i have cut my discretionary spending almost to zero.Many students now graduate with degrees that qualify them fro work at Starbucks.There are so many subjects now taught at colleges that are utterly useless and are taught only because of government mandates.
Dude, that is completely ridiculous. There is nothing you can't learn better on your own with that kind of coin. I hope you're going to MIT or Caltech or something...
Starbucks at least has benefits for their employees. :)
Those "Nobel-prize winning economics professors" need to realise if you are going to use Keynes then every other nation in the world must use it to and at the same rate.
If not you end up with a disparity of over or under inflated economies.
China - under inflated. The west - over inflated.
The cost is then pulled to the under inflated line (students incomes) relative to the asset over inflated line (tuition costs). Then through lack of affordability you get a contraction all kept going with money trees.
Keynes having been used for so long now is in everything we touch. I bet he never realised he would be a plague on economies.
Where is MillionDollarBonus when you need him to defend the ivory towers of academia?
My undergrad, Case Western, 1974-78:
Tuition: Then- $2,600 Now- $40,120 15.4 X increase
Room and board: Then- $2,600 Now- Approx. $18,800 7.2X increase
I could not afford to attend this college today. Not even close.
Sure you could! You'd just have to spend the rest of your life with bill collectors calling you at 2 a.m.
Here's my proposal..
Break down all school by degree programs.
If a school can only place 90% of it's graduates into jobs, in their degreed field, then the school can only receive up to 90% of tuition/room/board loans for students in that degree field.
If a school can only place 20% of their graduates into jobs in there degreed field then they are only eligible for 20% loan rates.
There are some schools that place near 100%....good for them.
If you want to get a degree in Panamanian Art then I completely support that, but you pay cash for that degree.
If you go to a school that's places it's Panamanian Art majors in museums around the world then you're loan eligible.
Yes, this means we'll have to have an annoying audit process, and it will be gamed like everything else. but it's a starting point.
How about we eliminate subsidy, what you're actually intending works out the same, and we don't have to account for unforseen moral hazard.
In 1970 tuition at the University of California was $106/quarter. It is currently $4700. Of course, the classes are much more crowded now and the quality of the education has declined.
University of Michigan 1972 $696.00 a year for in-state.
People pay for this stuff?
http://www.youtube.com/watch?feature=player_embedded&v=YlVDGmjz7eM
Actually, that's not Keynesianism.
Ironic that in the end it's going to be the tax payers that end up stiffed from all the student loans in default. These loans that were made to pay off the bloated corrupt Universities, and their tenured professors that spout on about the wonders of big government. This chart looks just like the housing price chart a bit before the crash. I suspect we will see a lot of these schools go out of business at some point as the easy credit dries up and students just say no to this crap. I mean it's not like that piece of paper guarantees you anything at this point, and soon the loan default rate will get so large that even big government won't be able to paper it over. When you think about the Fed printing money to finance bad student debt...well you realize just how screwed up the system really is. They are clinging to the delusion that things will get back to normal. They couldn't be more wrong.
We let mortgage people, credit card people, go bankrupt yet the people going back to school trying to get an education so they can get a job in nation that sent the other jobs overseas or outsourced or Affirmative Actioned, or VISAed away, get BURIED under debt because even 3rd rate universities charge more and more for tuition and textbooks cost on average about $150 a book. Let me tell you about someone close to me, gets the anthropology book, which is essentially, WHITE = BAD, non-White = GOOD, from the previous semester, but the BITCH COMMIE PROF, uses the NEXT edition, the SOLE change is pagination, that is it, so the $100 spent on the used text, NO GOOD says Comrade Prof, HAVE to buy the new one, again nothing but pagination, so have to spend ANOTHER $165 buying the MFer. So you pay through the ASS and then sit there being told Whites are the DEVIL and minorities are HANDED privileges and so forth and you ask yourself, WHO IS GETTING SCREWED HERE? And you have the answer already. If the MFing BANKSTERS can get SEVEN TRILLION DOLLARS of our taxpaying suckers money, which we all are, then MAYBE just MAYBE the government should permit FORGIVENESS on these SCAM STUDENT DEBT, because the teaching jobs are going to Jose and Juanita and LaDorian and Jamila who get a ride, see Bill Gates' MILLENIUM SCHOLARSHIPS...all the way to PhD.