“Game of Loans” ~ College Tuition Costs (ECON 101)

| UPDATED TODAY |

There is a law in economics, it deals with artificially propping up businesses, “goods” politicians deem necessary, production, etc. George Gilder notes this in a clip I isolated in an interview:

  • “A fundamental principle of information theory is that you can’t guarantee outcomes… in order for an experiment to yield knowledge, it has to be able to fail. If you have guaranteed experiments, you have zero knowledge”

R-PT’s note: this is how the USSR ended up with warehouses FULL of “widgets” (things made that it could not use or people did not want) no one needed in the real world. This economic law enforcers George Gilder’s contention that when government supports a venture from failing, no information is gained in knowing if the program actually works. Only the free-market can do this.

This applies to the real world in many ways, one being the co$t of college. Here is a very short video explaining this well:

OF course, one of my favorite videos of ALL TIME shows how students “benefit” from a subsidizing of college majors when in reality if they had to pay for college themselves it would be (a) cheaper, and (b) they would go into careers other than their majors… like sign flippers and bartenders (or other fields that are hurting):

The great conundrum of the U.S. economy today is that we have record numbers of working age people out of the labor ‎force at the same time we have businesses desperately trying to find workers. As an example, the American Transportation Research Institute estimates there are 30,000 – 35,000 trucker jobs that could be filled tomorrow if workers would take these jobs–a shortage that could rise to 240,000 by 2022.

While the jobs market overall remains weak, demand is high for in certain sectors. For skilled and reliable mechanics, welders, engineers, electricians, plumbers, computer technicians, and nurses, jobs are plentiful; one can often find a job in 48 hours. As Bob Funk, the president of Express Services, which matches almost one-half million temporary workers with emplo‎yers each year, “If you have a useful skill, we can find you a job. But too many are graduating from high school and college without any skills at all.”

The lesson, to play off of the famous Waylon Jennings song: Momma don’t let your babies grow up to be philosophy majors.

[….]

Kids commonly graduate from four year colleges with $100,000 of debt and little vocational training. A liberal arts education is valuable, but it should come paired with some practical skills.

Third, negative attitudes toward “blue collar” work. I’ve talked to parents who say they are disappointed if their kids want to become a craftsman–instead of going to college.This attitude discourages kids from learning how to make things, which contributes to sector-specific worker shortages….

(HERITAGE)

(For full disclosure, my degree — theology — is one of the lowest paying degrees out there, and the lowest in employment opportunities.) In a short debate of the issue, Peter Schiff notes this “propping up” of useless degrees:

In the above discussion, Diana Carew seems to want jobs created by the government to fit the degrees earned. Otherwise, how would you force the private sector to create such opportunities unless you artificially demand [create] such opportunities? ~ There was zero unemployment in Soviet Russia, but all this “opportunity” collapsed due to economic laws… “this is how the USSR ended up with warehouses FULL of “widgets” (things made that it could not use or people did not want) no one needed in the real world. This economic law enforcers George Gilder’s contention that when government supports a venture from failing, no information is gained in knowing if the program actually works. Only the free-market can do this.” (Peter Schiff gets into the weeds a bit in this video.)

Here is another great PRAGER U video discussing the issue:

This is one of the areas Gary Johnson was correct — supply and demand:

FORBES notes well that most on the Left-end of the spectrum “don’t hate entrepreneurship and innovation,” but that their Econ 101 “part of the brain that deals with economics tends to shut down when discussing sectors like higher education (or healthcare).” A WASHINGTON FREE BEACON post relates findings from a Federal Reserve Bank (NY) study showing that the federal student loans have increased the cost of college tuition while at the same time college enrollment did not increase:

The expansion of federal student loans has caused tuition prices to increase without increasing college enrollment numbers, according to a report from the Federal Reserve Bank of New York.

The report evaluated student financial data as well as federal student aid programs “to identify the impact of increased student loan funding on tuition.”

According to the report, yearly student loan originations grew from $53 billion to $120 billion between 2001 and 2012, an increase of about 126 percent. During this time frame, average sticker-price tuition nearly doubled, rising from $6,950 to $10,200 in constant 2012 dollars.

The report found that for each dollar of federal aid applied, tuition increased as well.

“We find that each additional Pell Grant dollar to an institution leads to a roughly 55 cent increase in sticker price tuition,” the report says. “For subsidized loans, we find a somewhat larger passthrough effect of about 70 percent.”

[….]

The report makes reference to a hypothesis put forth by William Bennett, the Reagan-era secretary of education. The so-called “Bennett Hypothesis” holds that “increases in financial aid in recent years have enabled colleges and universities blithely to raise their tuitions, confident that federal loan subsidies would help cushion the increase.”

Many have compared the market for postsecondary education to the housing market…. [see video at the top]

Which brings me to finish this post with a humorous look at the hipster douche-bags scratching his or her head in regard to high tuition costs via REASON-TV:

The Inconvenient Truth About the Democratic Party (BOOM!)

  • “…virtually every significant racist in American political history was a Democrat.”

~ Bruce Bartlett, Wrong on Race: The Democratic Party’s Buried Past (New York, NY: Palgrave MacMillan, 2008), ix;

  • “…not every Democrat was a KKK’er, but every KKK’er was a Democrat.”

~ Ann Coulter, Mugged: Racial Demagoguery from the Seventies to Obama (New York, NY: Sentinel [Penguin], 2012), 19.

Did you know that the Democratic Party defended slavery, started the Civil War, founded the KKK, and fought against every major civil rights act in U.S. history? Watch as Carol Swain, professor of political science at Vanderbilt University, shares the inconvenient history of the Democratic Party. [See my larger page addressing many of these issues.]

What’s Wrong with Socialism? (Prager University Videos)

Before delving into the below videos, one should keep in mind that what socialism does is produce giant monopolies. THAT is the theme you see in all socialist countries. Criminal, governemtn, or corporate monopolies — Milton Friedman:


We’ve read and watched the news of Venezuelan society collapsing under the weight of socialism. But how bad is it really? See this firsthand account from documentary filmmaker Ami Horowitz.

Many of America’s legal and illegal immigrants fled nations that were ruined by corrupt politicians and failed government policies. But once here, they support the same things. Why? Gloria Alvarez, Project Director at the National Civic Movement of Guatemala, explains. (Here is her interview on Dennis’ radio program.)

Is Bernie Sanders right? Are people living under socialism better off? Brazil is a good case study. Felipe Moura Brasil, a journalist and Veja magazine columnist, explains how his country has fared under socialism.

What is democratic socialism? What makes it different than regular socialism? Has it been tried? Could it work in the United States? Comedian and political commentator Steven Crowder, host of Louder With Crowder, explains.

Which is better: socialism or capitalism? Does one make people kinder and more caring, while the other makes people greedy and more selfish? In this video, Dennis Prager explains the moral differences between socialism and capitalism, and why anyone who wants a kind and generous society must support one and oppose the other.

Was America once socialist? Surprisingly, yes. The early settlers who arrived at Plymouth and Jamestown in the early 1600s experimented with socialist communes. Did it work? History professor Larry Schweikart of the University of Dayton shares the fascinating story.

“The Progressive Income Tax” is one of those economic terms that gets bandied about, but few actually know what it means or how it works. This tale of three similar brothers with three different incomes (but one shared expense) helps explain the tax system under which we live. Adapted from an article by noted investor and economist, Kip Hagopian, and narrated by actress Carolyn Hennesy of “General Hospital” and “True Blood” fame, this animated story will change the way you think about how you pay your taxes.

Dennis Prager first read from an AP story about Jamie Foxx visiting the death hole known as Venezuela (see the Free Republic post: http://tinyurl.com/z8phhkz). Later in the show he actually gets a call from Caracas, Venezuela. I teared up a bit during the call, as did Prager apparently. Good stuff Maynard!

Here is Dennis’ Facebook comment:

Actor Jamie Foxx will pay no price for his visit with Venezuela President Maduro. A rare combo of doing evil — supporting a brutal dictator — and being stupid. Foxx will get picked up by a limo and go home to his mansion in California while the people of Venezuela starve and wait in line for toilet paper thanks to the socialist revolution.

Leftists don’t care about people, they care about ideas. This is Jamie Foxx. He care doesn’t care about the Venezuelan people. He cares about an idea. He loves the idea of equality. It’s painful. Just painful. Will there be a price paid for such radical stupidity? There is nothing a a left-winger could do that would elicit criticism.

Is capitalism moral or greedy? If it’s based on greed and selfishness, what’s the best alternative economic system? Perhaps socialism? And if capitalism is moral, what makes it so? Walter Williams, a renowned economist at George Mason University, answers these questions and more.

Cultural depictions of capitalism are almost all negative. There’s the Monopoly guy with the top hat and cigar. There’s Gordon Gekko saying, “Greed is good.” And, most recently, there’s the hedonism of the “Wolf of Wall Street”. The message is clear: capitalism is selfish. Socialism, or something like it, is selfless. In fact, the opposite is true. Renowned social critic George Gilder offers this startling insight: capitalism, at its core, is first an expression of altruism; that is, of giving. An entrepreneur can only succeed by satisfying a customer’s need. This is why capitalism, and only capitalism, can create the prosperity that all societies crave and why all other economic prescriptions are doomed to failure.

This election season there’s a lot of talk about corruption, about politicians being “bought and sold”, and about “crony capitalism”. What do those terms mean? Why should we care? Is there a way to reduce corruption and restore our trust in government? Author Jay Cost, staff writer at The Weekly Standard, answers these questions and proposes a solution that every society could benefit from.

Small businesses employ over 57 million Americans. And yet, the government’s taxes and regulations overwhelmingly favor big businesses at the expense of small ones. Why? Find out in this short video.

How big should the government be? And what is its proper role in the daily lives of Americans? The Left and Right have opposite answers.

From transportation to energy, and everything in between, should the government invest money in as many promising projects as possible? Or would that actually doom many of those ventures to failure? Burt Folsom, historian and professor at Hillsdale College, answers those questions by drawing on the fascinating history of the race to build America’s railroads and airplanes.

With the smartest experts and the best economists, could the federal government run the U.S. economy? Could it keep America’s $17 trillion economy going like a well-oiled machine? Steve Forbes, Chairman and Editor-in-Chief of Forbes Media, explains why no one person or group can “run” the economy, and why any attempt to do so can only make things worse.