re: Trump is lowering the cost of college

quote:

---

and now colleges are having to lower prices as enrollment numbers fall. Amazing what happens when you remove free subsidies.

---

Same thing occurs in agriculture. Equipment, seed and chemical companies have no incentive to reduce prices when the govt subsidizes or bails out farmers in down years. They see farmers getting free money and rather than let the farmer get ahead they raise prices instead. Nobody wants to see farms go out of business but letting the market work would cause lower demand for ag supplies leading to lower prices. And ag suppliers would have incentive to offer deals to help farmers stay in business in tough years because they’d need sales volume if they know there would be no govt bailout.

Food security is important and I’m ok with bailouts during extreme circumstances like severe drought, flood, etc or during say an economic depression where too many farmers go under. But bailouts every time grain prices go low is bullshite. No business is guaranteed a profitable price on goods every year. That’s why you manage money properly and put away money in good years to ensure the bad. That’s another consequence of govt bailouts, it incentivizes poor financial management. You see it at universities too. Look at the LSU athletic budget running tens of millions in deficits. First thing they do is ask for more taxpayer money