re: EBC Book #1 - Economics in One Lesson by Henry Hazlitt

quote:

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Makes me wonder what the "reckoning" is going to be with student loans. Academic costs have risen exponentially over the past decade and you have to think that financial aid packages supported by the government is at least a little bit of a catalyst.

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Absolutely. Those that complain about universities continuing to raise tuition do not realize that it will continue to rise until the demand is no longer there. At a certain point the risk becomes too great for the private industry, but for the government it is about giving an equal opportunity to those who cannot afford college. They will continue to pay the cost even when it does not make financial sense to do so, raising the rates for all. Goes back to the lesson, looking at the short run benefit of a select group, not the long run effects of all.