Occupy abolishes $4 million in other people's student loan debt-- OOOHH! Me next!

[the2real4mafol]

sc94597 said:

the2real4mafol said:

That sounds interesting but how do we know if University would be affordable like that still if University wasn't interfered by government (I assume they are mostly private in America, most British universities are public and was free at point of use till 1997). 

In the 60s, the economy was very strong, debt was low, everyone was working and disposable income was very high. But the strong economy that existed in the 50s, 60s and early 70s couldn't last forever and i'm not sure if government can be blamed for the majority of problems. Ironic as it was, there was little competition for America back then and so it could do very well. 

And if you don't think better funding is the answer, how would you make it so university is actually affordable for everyone? 

Well we know the cause of the high inflation rate in education (government subsidies) so we know what the problem is. Of course we can't assume that nothing else would've occured to cause high inflation rates, but it is better to address the problem we know exists than the one we can only speculate of. In the 60's the economy was (relatively) strong, meaning that growth was very high. It wasn't absolutely stronger though. I'd rather live today than in the 60's to be honest. The cost of living is cheaper and I have more opportunities. It just so happens that growth is slower/non-existant in this era. Anyway, that's besides the point. In periods like the 90's, which had higher stability than the 60's, we can still see huge inflation rates for all education, but especially higher education, and of course we are speaking relative to the average rate of inflation (which reflects the monetary policies of the era/accomodates for the changing economic viability.) 

How would I make college more affordable? Introduce it to a competitive market in which lower prices force educators to reduce costs and disables their ability to change prices. The colleges will become price-takers and not price-makers. How does one do that? Reduce the amount of subsidies colleges gain. Honestly I think online education and developing community colleges are already ahead legislation in this matter. Universities are so frightened by these entities that they beg the state to remove them from the scene in addition to creating very strict and irrational accreditation policies. Subsidies also have the secondary effect of allowing students to major in whichever failed/unsucessful subject they want to, on the dime of others. There are a plethora of psychology, english, and liberal arts majors for example who have no job opportunites after they graduate, in turn, forcing them to default on loans and reducing the viability of the system for everyone. Without subsidies people would make more sound-proof decisions when they choose their major because it's their money and not debt they are spending. People would only take loans if they felt that they needed them. As it is now there is a student loan bubble not so much unlike the housing bubble of 2008 caused by government "stimulation." 

Thats an interesting perspective but do you think any government help is necessary. What if someone is smart enough to go to university but can't afford it? even if prices fell dramatically with an open market. 

I would like to see such a system work in practice but i think for a free market to work you need a level playing field at first (especially in education) which is quite ironic but thats just how i see it. I can see how governments rig markets though to help certain companies (everything not just education) but they need to be in certain areas like welfare and education. But unfortunately like anything they get corrupt. Also i just struggle to see how a truely free market can sustain itself if its not free for all parties involved. We were supposed to have free markets in the 19th century but workers rights were non-existent and trade unions were seen as agitators with many being illegal. It was free for bosses, not workers back then