Tuition Inflation

I’ve touched on this topic in prior posts– the cost of tuition and the pace at which it has inflated.  This article shows a good real-life example and presents some good analysis and opinion on the matter.   Tuition loans are an enormous  source of debt for the younger generations, and this will certainly contribute to the debt-deflation cycle (mentioned in my previous post).  In the short-term, education subsidies may have pulled demand for education forward, but in the long run, the price has adjusted upward, artificially driven by increasing subsidies.  The end result is a younger generation saddled with greater loads of debt, while wages are stagnating and unemployment is rising.   This chart shows that % of the US population with bachelors degree began to level off since the late 80’s.

-BRV

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