Will the rising cost of college eventually hurt the US economy?

Question

One day I was sitting and reflecting about my time in college and a thought came to me. With everyone needing a college education and as a consequence graduating loaded with debt, can we continue on this path? Will it evetnually catch up to us and if so, when?

Answer 1

The wage premium for education has increased over the last three decades, so the amount students are willing to pay has also increased, but they do not pay the actual cost. The "cost" of education is going up faster than inflation because so far the productivity increases due to technology that has reduced the price of many others goods and services, has not improved the productivity of teachers. It is possible that this will change and the cost of providing education will decline in the future. Most of the cost is not paid by the students even at most private colleges, and the amount students pay is determined mostly by how much and in what way the state and federal government subsidize colleges and students. Since the quality of the workforce is a large factor in the productivity and wealth of a nation, the benefits to they country from educating the future work force still exceeds the subsidies, so government subsidies will adjust so the amount charged students will not grow beyond their willingness to pay.

Answer 2

If the costs of college education exceed the benefits, then fewer people will seek out the education.

But take a look at the job market, this does not appear to be the case. Costs are increasing because demand is high. Demand is high because it is a worthwhile investment. The spread between the earnings of a college graduate and a non-graduate are increasing. As long as that is the case, demand for the education will increase as well.

Answer 3

If Obama is elected along with his one million.7 Trillion present of African and 840 Billion in new Social provider application will improve the present funds for 3 Trillion to 5.5 Trillion. that's a ninety 5% improve in government spending in one term. His investment will could desire to be borrowed even inspite of the indisputable fact that the U. S. can no longer even have the money for to pay the pastime on loans to maintain the present classes working. this could improve inflation and fees of pastime for voters 10 fold. Borrowing funds to furnish to a diverse united states and protecting the U. S. taxpayer responsible for that's INSANE,

Answer 4

It is a falsehood that "everyone" needs a college education. Maybe college tuition should get so high that it won't be considered just an extension of high school and our workforce could get back to the situation where degrees are not prima facie evidence of hire-ability.

Answer 5

Yes, it will. But since most of the college expenses are paid by third parties the issue has not really come to the forefront.