Bacon's Rebellion

No, Reduced State Subsidies Do Not Drive Tuition Increases

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James A. Bacon
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3 responses to “No, Reduced State Subsidies Do Not Drive Tuition Increases”

  1. TooManyTaxes Avatar
    TooManyTaxes

    One thing for sure, it’s a safe bet this study won’t get much play in the WaPo.

  2. Reed Fawell 3rd Avatar
    Reed Fawell 3rd

    The huge expansion of reimbursed cost of faculty research is likely a far bigger driver of escalating tuition costs at many selective institutions than the retrenchment of state subsidies. These exploding unreimbursed research costs that range from capital, hiring, regulatory, and administrative costs, take many forms. Most importantly, their risk profile is often very high.

  3. LarrytheG Avatar
    LarrytheG

    I think you could probably make this argument about ANY entity that receives DIRECT tax dollars to subsidize some product or service whether for-profit or non-profit.

    Further, I do not trust anything ANY agenda-driven think tank (left or right) produces unless it is replicated by other peer groups especially those without ideological or political agendas.. so whatever comes out of AEI or CEI or similar is presumed slanted until I see other non-partisan, non-ideological groups replicate it.

    Too much propaganda and ideological offal coming out of these groups these days.

    Subsidies that go to the customer/student (instead of the entity) WILL introduce customer choice . Just look at food stamps.. the recipients can maximize them by shopping at a Walmart rather than a local mom/pop store.. and they do…

    Just imagine what would happen if the subsidy went to Walmart of mom/pop to “help” lower income folks..

    If State support sent directly to the Student and only covered just the instructional and the student had to come up with the additional for the add-ons including room&board.. COMBINED with the College Scorecard – some level of competition would be introduced. …

    I’m actually surprised that AEI or CEI have not addressed this aspect .. but apparently they’re so busy pumping out agenda-driven propaganda.. it’s not
    a priority.

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