Sure, that's the problem. The question is how do you solve it. Ideally you implement a different solution before removing the existing workaround.

Pretty much every first-world country other than the USA has at least partially solved it. Social safety nets, regulation of utilities/public goods (education for example), and a guaranteed standard of living.

But then, how predatory bankers will survive? Some country needs to protect them...

If there is an existing workaround no one will look for a different solution.

I don't think that's true. And I don't think wrecking some people's lives just as an incentive for others to look for solutions is easy to justify.

On this theory, they shut down mental health institutions. Now what happens is mostly that jails serve as ill-suited, ad-hoc mental health institutions. Turns out making things worse without having a plan doesn't always have salutary results.

“loans distort the clearing prices for …College tuition”

Does it though? I thought the same thing until I started paying tuition for my kids private elementary schools. It’s almost as much as college and no loans around to distort prices.

> "and no loans around to distort prices."

As a result, private school remains kind of a luxury product for people who don't like the free public offering and can afford to pay to send their kids somewhere else.

I can only imagine that if we extended some version of our school loan program to primary/secondary education we would have a lot of highly indebted parents or, god forbid, children, and an explosion of private schools.

Ultimately, it would also drive prices up. The high end would need to be more exclusive (expensive) and everyone else would compete on perceived quality more than price.

Yeah I think that is exactly what would happen. Private school is like 3x more expensive than college probably 5x when you adjust for time value of money

Bad example. There's a free option in the market, so the paid option is for rich people only.

Econ 101 would say that a free option would push the equilibrium price down. I'm not sure I follow your reasoning. There are comments on other stories everyday complaining about how hard it is to price against "free."

Moreover, the owner of the school drives a Toyota. I think my point is that the cost of providing an education is greater than many people think. It's not like colleges are turning a profit off of tuition.

Daycare might be a more compelling one.