Guest Post: How Do We Break The Cycle Of Higher Tuition And More Debt?

Tyler Durden's picture

As we have discussed in detail (here, here, and most recently here), many college students face repaying a mountain of debt upon graduating, and many college graduates end up working jobs that don't require a degree. Even worse, 40 percent of college students drop out without earning a degree, but that does not free them from the debt they have accumulated. In this brief clip, Professor Daniel Lin argues - rightly - that government subsidies are to blame for the continually rising costs of higher education. Although such subsidies are supposed to help defray college costs, they are making the situation worse. A policy that worsens the problem it is supposed to fix should be eliminated - even if it is the government's only credit inflating tool left.


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zuuma's picture

Long Barber Colleges!

Temporalist's picture

You can go to jail for free to learn how to become a barber.  In my next book, "100,000,000,000,000 Ways To Go To Jail Free" you can learn for yourself how easy it is to have free room and board; all for the low low price of only $29.99.

Max Hunter's picture

Nothing worse than an educated moron.. almost nothing..

FL_Conservative's picture

We're from the government and we're here to help.

CheapBastard's picture

I was thinking about enrolling in Chef know, the gourmet one. I can borrow $58,000 and become a Master Chef in no time. I hear the chciks are hot there too.

TruthInSunshine's picture
Education Connection

This chick was a waitress and now she's the chief engineer for CERN.

I'm working for an hourly wage,
I went to high school,
but I didn't do great,
Still i gotta make more cash,
more education is what im looking at
when i get a degree i will make a bigger salary
so now I've got to see
which college is right for me
i went on the internet and found
Education con-nec-tion
i took a some free tests
to find out my direction
im taking my classes online getin my degree at my own time
Education connection
Matched me with the right college for free!

true brain's picture

Let me guess what Obama will do. More loan forgiveness for all college grads and send bill to bernanke who can just print it away.

A college education used to be special; now a day, it ain't worth paper it's printed on. Kind of like fiat currency.

People with college in the old time  used to be able to speak coherently and discuss complex topics.

Now, go to any campus and this what you hear: Like, I said like, you know , like, like yeah, yeah, like it's like , you know , like , what's that, like , yeah, like , like and more like.

Manthong's picture

“government subsidies are to blame for the continually rising costs of higher education”

Heh heh..

Wait’ll you get a load of what it does for any kind of health care.

The fun is only starting.

Supernova Born's picture

Delinquent student loan recipients should be "called to serve" on clean-up crews scrubbing freeway graffiti or working at daycare centers (you get to choose!) for 12 hours a day.

They'd "grow up" to be voters who'd demand .gov stop paying irresponsible assholes for having more kids than they could ever afford.

Bicycle Repairman's picture

These bubbles are necessary for the current system.  "You" can't "break" them.  They may collapse of their own accord, however.  When, if, they do collapse, another will be created.  Money is made by finding a new bubble early and getting a piece of it.  Insider information is paramount.

Meanwhile there are a couple of bubbles that are going nowhere; the MIC and healthcare.  These bubbles can and will be increased as needed. 

As for the education bubble, it will persist at least as long as it takes baby boomers to "educate" their kids.

DangerClams's picture

I've always been more of a small hadron collider fan.  The large hadron collider is like the Wal-Mart of colliders - big, for no reason.

McMolotov's picture

"We're from the government and we're here to help ourselves."


Peter Pan's picture

As Mark Twain once said......I never let my schooling get in the way of my education.....

How do you reduce the cost of tuition? I think less tuition is a good starting place.

Slightly Insane's picture

There are several  things worse then an educated moron, and that's an "educated politician, a Keynesian Economist, a well meaning liberal, a Lawyer, a crooked cop, and a shitty banker.

otto skorzeny's picture

soon all of the jobs available in this country will only be available to convicts for 10 cents an hour-thanks CCA! CCA buys the judges and the judges send them a steady revenue stream-it's all good

dick cheneys ghost's picture

'FAU to name stadium after prison comapny GEO Group'


This shit is fucked up.....

Groundhog Day's picture

nothing a good war can't resolve to clear the inventory of college grads without any job prospects

Peter Pan's picture

Yes, just like a good war would also alleviate the male to female imbalance in China.

Glass Seagull's picture



You will never break the cycle of higher goy debt, so long as there are goy to yoke.

fourchan's picture

the dollar losing its reserve currency status will take care of this.

SheepDog-One's picture

'Tuition'....BAH! The world needs ditch diggers too! Also many grave diggers, and secret deep underground bunker diggers too.

Caddyshack- The World Need Ditch Diggers, Too - YouTube

Rainman's picture

The world needs more undertakers too. Everybody is a future customer and they never complain about the service.

InTheLandOfTheBlind's picture

this is what education gets you

A toothpaste factory had a problem. They sometimes shipped empty boxes without the tube inside. This challenged their perceived quality with the buyers and distributors. Understanding how important the relationship with them was, the CEO of the company assembled his top people. They decided to hire an external engineering company to solve their empty boxes problem. The project followed the usual process: budget and project sponsor allocated, RFP, and third-parties selected.  Six months (and $8 million) later they had a fantastic solution - on time, on budget, and high quality. Everyone in the project was pleased.

They solved the problem by using a high-tech precision scale that would sound a bell and flash lights whenever a toothpaste box weighed less than it should. The line would stop, someone would walk over, remove the defective box, and then press another button to re-start the line. As a result of the new package monitoring process, no empty boxes were being shipped out of the factory.

With no more customer complaints, the CEO felt the $8 million was well spent. He then reviewed the line statistics report and discovered the number of empty boxes picked up by the scale in the first week was consistent with projections, however, the next three weeks were zero! The estimated rate should have been at least a dozen boxes a day. He had the engineers check the equipment, they verified the report as accurate.

Puzzled, the CEO traveled down to the factory, viewed the part of the line where the precision scale was installed, and observed just ahead of the new $8 million dollar solution sat a $20 desk fan blowing the empty boxes off the belt and into a bin. He asked the line supervisor what that was about.

"Oh, that," the supervisor replied, "Bert, the kid from maintenance, put it there because he was tired of walking over, removing the box and re-starting the line every time the bell rang."

SheepDog-One's picture

Yep...what are most of these brilliant little darlings degrees in? Political science and womens studies and whatnot....bunch of rubbish no one needs.

Miffed Microbiologist's picture

Damn near laughed my head off at your story! I could tell you likewise stories in the medical field. Why do I think this scenario replays itself over and over again in the corporate world? We're too far removed from everyday common practical solutions for ordinary problems. Thanks to political correctness,government regulation and petty place seeking, we can't see the obvious. Cerebral doesn't often mean efficient. But I guess it does employ a lot of people.


swmnguy's picture

It is a great story.  But I work on the outskirts of corporate America, and I have a slightly different view of the idiocy of large groups of people, compared to the ingenuity of individuals.  I don't think it's "political correctness,government regulation and petty place seeking" nearly so much as it's an inherent flaw in hierarchical authority systems.  The group dynamics prevent a "boss" from letting the underlings who actually deal with stuff day-to-day to figure out sensible approaches and solutions.  They don't trust or respect their employees enough to manage themselves and solve problems (sometimes rightly so), and they perceive that unless they wield their authority at all times, whether or not it makes any sense, they are irrelevant to the system and will be replaced.  In a bad organization, they're right.  In a good organization, good management fosters self-management, allowing managers to go out and get more business, or make large-scale advances.  But bad management drives out good, so we see all kinds of examples of the idiocy depicted in this very telling anecdote.

Miffed Microbiologist's picture

Whereas I see the validity in your argument I'm standing by my point. Being on the worker end of things I see first hand how management is hamstrung by these issues. I've worked with incompetent people. I mean the kind of people who if not watched carefully will severely harm patients. Why are they not fired? They are of the "protected" classes ( minorities, disabilities etc) Management maneuvers them to locations where there is the least chance of serious harm. The competent individuals must structure their work around these people. I used to complain we could be more efficient if we fostered the talented and got rid of the problem employees. I was branded " not a team player" and was marginalized( though many told me in private they completely agreed with me but would never support me publicly). So I now keep my head down and do my job. I see your point in hierarchal management and it's inherent problems. I just believe the government just adds to the problem.


shovelhead's picture

That story reminds me of a temp job I took at 17 in a high tech woodshop that made patterns, instrument cases and architectural models.

Many committee meetings and consultings took place to discover a method to apply a walnut veneer to a plywood case after fabrication. The problem was compounded by the huge quantity of veneer that had puckered during storage. All methods failed that they made me try and try again.

Having just repaired a torn wetsuit, I had a small sheet of neoprene rubber. Soaking the veneer in warm water and using a water based glue on a large screw press worked perfectly. The stiffness of the dense neoprene with a backer block allowed the veneer to press without wrinkling. Problem solved in 15 minutes by a dumb high school scuba diving kid that eluded 10 engineers who could carve transmissions to casting quality from wood.

The engineers actually got mad when they had spent days to design a custom made wood steamer designed for some giant round wood windows that needed small curved window glass stops.

I brought in a piece of black ABS 4" sewer pipe with end caps I borrowed from my last summer pool job boss, filled it with the molding and warm water and set it in the sun. 4 hours later the molding bent like spaghetti. Every pool guy learns that black pipe with water and sun will burn the shit out of you.

I got a 25 cent/hr. raise.

Having an engineering degree doesn't magically confer intelligence if it dampens common sense in favor of a more 'technical' solution.

cynicalskeptic's picture

Have an Industrial Engineering degree.  The fundamental lesson any IE should learn is LISTEN to those actually doing the work.  Most know how to do their job better, easier and in a less expensive way.  But nobody ever asks them for thier input. In fact most 'management' makes their job HARDER.

Had an interview wioth P&G coming out of college.  They were all excited about this gate they thought they'd come up with for controlling two merging lines.  I wasn't impressed - they felt insulted when I said the same design had been used in the mid 1800's.  (had a decent background in industrial history too).  Not very much new in the world.

swmnguy's picture

No disagreement here.  Government, by the way, is perhaps the archetype of hierarchical management, with all its inherent problems, now that I think of it.

InTheLandOfTheBlind's picture

"Insanity in individuals is something rare - but in groups, parties, nations, and epochs it is the rule." - nietschze

IridiumRebel's picture

"Mom?...can I borrow a million dollars for books?....oh yeah....and Dad left the trillion dollar bill on the counter for  groceries"

SafelyGraze's picture

I like the articles on ZH, but the responses are mostly asinine, usually with the exclamation "bitchezzzz" at end of them.

if you'd be so kind as to not reply, this comment will retain its proper spacing vis-a-vis later comments

PGR88's picture

I like the articles on ZH, but the responses are mostly asinine, usually with the exclamation "bitchezzzz" at end of them.

graneros's picture

Hey Kip I sure as hell hope you got the hell out of Detroit and went back to Idaho.

IridiumRebel's picture

It is a colloquial term here as if we are all part of the team. Ignore it, azzhole. 

Shell Game's picture

Your avatar does this gripe justice..


McMolotov's picture

Bitchez gonna bitch, bitchezzzz.

swmnguy's picture

Asinine responses, bitchezzzz!!!!1!!

ebworthen's picture

I like the articles on ZH and the responses, though some of them have nine asses.

(Gold and Silver bitchezz!)

ebworthen's picture

The backs of the State Universities and Colleges need to be broken.

This would have to happen by having trade schools that spend 1-2 years teaching employable skills hands-on.

Problem is most production has been offshored.  You hear corporate wonks whine about not being able to hire "trained" employees.  This is because the companies are too damn cheap to make a commitment to a human being.  They want someone to walk in the door ready to work but don't want to have to support the trade schools and the students who could become employees.

So instead we have the State University and College Dream Factories, where if you get a Bachelor's Degree you are going to get a corner office and a fat salary with two hour lunches.  Only problem is these jobs only exist for lawyers, Wall Street, and Government.  Good luck with that kids.

Ultimately, there is no need for higher education in a society based on consumption and offshored production.

Higher Education (Higher Affirmation) has become just another consumption sector.

A Lunatic's picture

Mention Trade School to the modern day college age brat and they look at you like you just asked them to wade through raw sewage. I offered to put mine through a trade school of their choice. They instead chose the college "experience". I said experience it on your own dime.