Originally Posted by
supertony51
So im writing a paper on why college is so expensive in the U.S. The research I've done so far points to a few major concepts
Baumol's cost disease - While productivity has been rising steadily in most sectors of the economy, teaching has not seen similar improvements. One professor can only teach a class of so many, and higher level classes are expected to limit attendance in order to ensure student access to the faculty. Rising wages without associated productivity gains raises cost disproportionately.
Perverse incentives - US schools all crave high ranking from the US News and World Report publication's annual listing of colleges. One of the primary metrics used is money spent per student. This actually incentivizes schools to spend as much as they can on as few students as possible to increase their ranking. The exact opposite of what we should want to see.
Wasteful spending - Related to the last point, schools now hire an army of administrators that have nothing to do with educating students. Reports have many schools spending more on administrators than on faculty! Dorms are now lavishly appointed and look more like luxury apartments than the kind of simple no-frills housing familiar to people who attended schools decades ago.
Government subsidies - There is no getting around supply and demand. The US government subsidies college tuition because it's expensive, but that causes a malicious cycle. Subsidies raise demand for college, which in turn results in increased tuition, which results in increased subsidies to counteract the higher cost, which raises demand for college, and so on.
Expectation of college degrees - The idea that everyone needs a college degree has become immensely popular in the past decade or two. Students who are not a good fit for college are pressured to go anyway. Many do, since other valid options are not as available as they once were, such as trade schools. (Meanwhile, welding jobs that pay six figures go unfilled while college grads work at Starbucks for lack of better options) Employers require college degrees as a proxy for finding good and reliable employees, despite the fact that many jobs could be ably performed by people without a degree. This raises demand for college unnecessarily, which results in additional price increases.
I was curious as to how MMOC feels about these theirs so far. I'd say the biggest contributing factor that I've seen, is the price increases associated with subsides.