David B. Shemano wrote:
> I will agree with you [i.e., yours truly] as follows.  Much of the behavior 
> we see at college campuses, whether public or private, subsidized or 
> unsubsidized, is simply a reflection of the age cohort of 18-22 year olds 
> leaving home and with little responsiblity.  Comparatively, we do not see 
> such behavior in professional programs, where the students are significantly 
> older.<

That's true. It's unfortunate that this kind of irresponsibility is
encouraged, cultivated, and rewarded in some walks of life, e.g., high
finance. Some people can earn megabucks by acting like drunken
sophomores, using other people's money rather than alcohol. However, I
hear they use a lot of cocaine... (I wouldn't know. That drug has
always been far out of my league. It seems like god's way of telling
you you're too rich.)

> However, the point about educational subsidization is about the student on 
> the margin, the 18-year old who must decide whether to enter the adult world 
> or go to college.<

There's a real problem with this proposition. It presumes that we know
who the "marginal student" is ahead of time (just as ignorant
employers often assume that they know who the "marginal worker" is
ahead of time). The fact is that for large numbers -- perhaps a
majority -- of students, no-one knows if they're marginal or not until
_after_ they attend a semester or a year of college. Cutting off
financial aid to the allegedly marginal masses (as David seems to be
advocating) would prevent these students from making this discovery.

Note that cutting off this aid would involve cutting off subsidies at
the junior and community colleges, which would effectively kill one of
the great institutions in the US: people can go to community colleges
as a way of cleaning their high school records, getting a fresh start
at any point in their lives.

Instead of allowing only the well-to-do "marginal" students into
college (as David's financial rationing scheme would do), what we
should do is to have a special RDK tax, a special levy to prevent the
richer marginal students from wasting the time and effort of the
people who work at colleges and universities. The richer kids who
weren't dumb, lazy, feckless, and otherwise Dubya-like could be given
special scholarships, based on merit (e.g., for helping the homeless).
The less well-to-do "marginal" students would be discouraged from
going to college by the fact that they really need to have income to
survive (they can't live off of Daddy's wealth) and going to college
is costly in terms of time, preventing them from earning that income.
This last  part of this plan is how it  works at present.

A less controversial plan is to allow both the well-to-do and the
poorer folks in and then weed them out using higher _academic_
standards. It's like the University of Illinois when I was in high
school: they let in everyone who met some minimal criterion and
charged rock-bottom fees[*] and then flunked out large numbers during
the first semester of the frosh year. I think this system worked
pretty well. The more irresponsible students -- the heavy drinkers,
etc. -- left quickly.

Of course, back then, people didn't want to leave college because the
alternative was being drafted. But there are other inducements to
going to college nowadays, including an extreme emphasis on getting
credentials to gain high salaries.

>Furthermore, educational subsidization has the effect of not only distorting 
>the decision-making for the student on the margin, but also is the major 
>factor in education cost inflation, which raises the price of college for 
>everybody and creates debilitating student indebtedness.  The point here, to 
>emphasize, is that when you subsidize something, whether education, mortgages, 
>unemployment,, etc. there is going to be a tradeoff, and mocking those who 
>recognize the tradeoff is not going to prove your point.<

I mocked only Milton Friedman.[**]  He did not believe in trade-offs.
There was only _one_ acceptable unemployment rate in his thinking (the
so-called "natural" one), for example. If Thatcher hadn't said it
first, MF would have shouted out the basic slogan of free-market
totalitarianism loud and often: "there is no alternative!" (no
alternative to bowing down to the Almighty Dollar).

The main reasons for academic price inflation have nothing to do with
admitting the less-than-wealthy marginal students into college. It has
to do with overhead (legal costs[***] & insurance, etc., etc.) and
what William Baumol called the "cost disease of the service sector."
On the latter, salaries and wages in academia largely rise in step
with those in other sectors (because of competition in the labor-power
market) but as in other service sectors, it is very hard to raise
labor productivity. This means that unit labor costs ([total wages and
benefits and related costs]/[output] = [wage, etc. per worker]/[labor
productivity]) rises more than in other sectors.
-- 
Jim Devine / "If heart-aches were commercials, we'd all be on TV." -- John Prine

[*] This meant that almost everyone at my relatively well-to-do public
high school could claim to go to college, which raised that high
school's status.

[**] Making fun of Dubya is at this time not mocking him. Rather, it
is giving him attention he does not deserve. He should be facing
prosecution instead.

[***] Perhaps a big tax on lawyers would be a good idea. It could be
used to finance public education.
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