On Oct 13, 2011, at 1:30 PM, Jim Devine wrote:

> me:
>> the inflation in the education sector is not due to demand (as David says). 
>> It's more a supply-side phenomenon, the difficulty of raising the 
>> productivity of service labor in a time when service wages have to keep up 
>> with those in other sectors -- along with a tremendous rise in overhead 
>> (insurance, medical, and legal costs, especially). To some extent, 
>> college-cost inflation is a matter of "you get what you pay for": colleges 
>> provide many more services to students than they used to. We had a gym; they 
>> have a health club, etc.
> 
> David Shemano:
>> I absolutely 100% disagree.  Colleges have health clubs instead of gyms 
>> because, as a result of government policy manifested in the student loan 
>> program, there are billions of dollars being allocated to the educational 
>> sector, which manifests itself in huge capital improvements and a 
>> proliferation of administrative jobs.  No student loans, no health clubs... <
> 
> I don't know about other places, but at LMU students have to pay extra
> for access to the gym (which is much like a health club like "Gold's
> Gym" but less expensive).

I was on a panel with a libertarian just this morning. He argued by anecdote 
and metaphor - we need a "purgation" after all that debt, it'd be like the 
"recovery room" after surgery, no mention that he meant that we need an 
unemployment rate of 25% to correct the "excesses of the past." Here too, no 
actual evidence. In fact, federal support for education is flat-to-down over 
the last three decades, and state/local support is down. Tuition, though, is up.

More here:

http://www.leftbusinessobserver.com/College.html

Doug
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