Re:A fraudster got $12M out of a Canadian university
by wongarsu on Wednesday October 10, 2018 @02:38PM
(#18187683)
>It's the end result of applying capitalism to all human activities.
I would argue both extremes work: free education works (see Europe), completely capitalistic education should also work. But America doesn't apply captitalism to education. Schools have all the pressure of competition you describe, but normally the lifetime profitability of gaining a degree as would put a reasonable ceiling on education costs (outside of elite institutions for the rich and gifted). But in the US, student loans with their subsidies and special legal status remove monetary restrictions from the market, allowing most people to pay whatever the schools ask for. And for the supply side of any capitalist market it is only rational to raise prices to what the market is willing and able to pay.
In a free, unsubsidized, unpriviledged market for student loans we wouldn't see massivley rising education costs. Social mobility might be even worse though, so free education is likely still superiour.
I would argue both extremes work: free education works (see Europe), completely capitalistic education should also work. But America doesn't apply captitalism to education. Schools have all the pressure of competition you describe, but normally the lifetime profitability of gaining a degree as would put a reasonable ceiling on education costs (outside of elite institutions for the rich and gifted). But in the US, student loans with their subsidies and special legal status remove monetary restrictions from the market, allowing most people to pay whatever the schools ask for. And for the supply side of any capitalist market it is only rational to raise prices to what the market is willing and able to pay.
In a free, unsubsidized, unpriviledged market for student loans we wouldn't see massivley rising education costs. Social mobility might be even worse though, so free education is likely still superiour.