We learned why UBI doesnt work with the explosion in College costs

[Grummgug]

For those who still seem a bit unclear as to WHY UBI/BIG/basic income guarantee is a horrible idea, one just has to look at what happened to the college education system in the last few decades.

Starting in the 80s and 90s, someone thought it was a good idea to rapidly expand the loan program. The Federal Student Loan program was originally implemented with the promise of making college affordable to everyone. The poor could finally go to college! From 1987 to 2010, the Government loan program exploded.

At first, it looked like it worked. But the problem was you couldn't judge the problem in year or even year 5. By year 10, the critics of 'free money' for college were proved CORRECT. Handing out free money for college only caused college prices to explode in a massive hyperinflation. Now everyone was saddled with huge loans of $50k, $100k, or worse.

Now, college is utterly broken with a warped economy. It probably needs to crash to fix the liberal efforts to make college free.

Now, the same GENIUS liberals want to try the same approach, this time with the ENTIRE FREAKING ECONOMY. They want to hand out $25k per year to EVERYONE. Its basically the Federal Loan Program on STEROIDS, except instead of an individual being on the hook for the loan, it will be every citizen.

And once again, we must warn that it is an incredibly dangerous and stupid idea that requires someone to have not understanding of economics, and also no understanding of why college costs exploded.

Liberals are truly bananas. They want to say "oh oh oh. oh! We gotta try! We gotta try! We can try this! Yes let's do it!"

Holy screwballs they are nuts.

[Spectral]

Something related to this is a frequent hobby horse of Alex Taborrak over at Marginal Revolution. Here's one quick blog post linking to an NBER paper that pretty plainly demonstrates that college subsidies increase costs and revenue for universities without decreasing the tuition burden on students. Basically, these subsidies do nothing but funnel money to people in the education industry.

[Grummgug]

1) How is a loan "free"?

2) How is it the fault of the loans that colleges raised their prices so much?

You're basically saying that mortgages are what raise home prices. You have to prove that relation, not just say that X happened and then Y happened, therefore X caused Y.

Economics 101.

If you inject a massive amount of money into an economic system, prices rise. That's how we know. If you cannot grasp that, you basically know nothing about economics. They injected a ton of money into the college system with the massive college loan program. And rices rose. Textbook example.

[Spectral]

You're basically saying that mortgages are what raise home prices. You have to prove that relation, not just say that X happened and then Y happened, therefore X caused Y.

This seems obviously true. In the absence of mortgages, there would surely be lower demand for purchases of housing.

[Deleted]

But basic income is a means to fill out the void of people that used to make their money from their job (jobs that are lost to automation). That isn't really an apt comparison to student loans (or loans overall).

It isn't injecting the economy with money, it is keeping it at a level that we are used to.

[Mayhem]

Economics 101.

If you inject a massive amount of money into an economic system, prices rise. That's how we know. If you cannot grasp that, you basically know nothing about economics. They injected a ton of money into the college system with the massive college loan program. And rices rose. Textbook example.

You know you could actually show that with graphs that highlight the increase based on the time when college loans were introduced. People will not just take your word for it, especially not with "Economics 101." at the top of your answer.

[Jester Joe]

Not only do we have 2 threads going on about universal basic income, there's not much of a need for one that just repeatedly mocks a political alignment.

If you want to discuss your idea without the political mocking, this thread would be a good location-
http://www.mmo-champion.com/threads/...you-still-work

Closing this.