- When government-guaranteed checks keep rolling in, there's no incentive for colleges and universities to lower their prices. In fact, they do the opposite.
"In Basic Economics, Thomas Sowell wrote that prices are what tie together the vast network of economic activity among people who are too vastly scattered to know each other.
Prices are the regulators of the free market.
An object’s value in the free market is not how much it costs to produce, but rather how much a consumer is willing to pay for it.
...The Problem with Government-Backed Student Loans
... According to Forbes, the average price of tuition has increased eight times faster than wages since the 1980s.
In 2018, the Federal Reserve estimated that there is currently $1.5 trillion in unpaid student debt.
...The government’s backing of student loans has caused the price of higher education to artificially rise; the demand would not be so high if college were not a financially viable option for some.
Young people have been led to believe that a diploma is the ticket to the American dream, but that’s not the case for many Americans.
...Nor can student loans be discharged by filing for bankruptcy..."
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