“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”-- Milton Friedman
Whatever else Obama studied at Accidental University, it wasn’t economics.
If it had studied economics, he’d understand that the more the federal government throws money at higher education, the higher the costs are going to go.
The College Board recently released statistics that bear this out.
During the Slight Depression of ‘09 and ’10, when deflation was the problem, state and private universities saw “the largest one-year percentage increase in the constant dollar published price for tuition.”
Published prices climbed almost 6 percent in the 2009-2010 school year over the 2008-2009 period.
We know baby. We all feel a little molested by Obama
“Over the past five years,” writes FoxNews, “the tuition sticker price at public four-year colleges is up 27 percent beyond overall inflation, according to a College Board survey. At private schools, the average student's cost has risen 13 percent beyond overall inflation.”
The culprit is the huge increase in government money made available to students, regardless of their ability to pay back the loan.
Obama created a kind of subprime loan for kids to young too know the difference.
Remember all those Internet ads that told us “Obama wants you to go back to school”?
Obama made a big pile of cash available to wannabe students through direct loans, Pell Grants, work-study programs and tuition tax credits, to… ahem… “low income” families through the stimulus program that brought record college enrollment.
The “low-income” limit to qualify for the tuition tax credit was $80,000 for single filers; $160,000 for joint filers.
Under this definition apparently 90 percent of American families qualified as low income.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for September 22nd, 2014 | John Ransom
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