Monday, July 19, 2010

Is College Tuition Bubble About to Burst?

Chart of the Day

The price of a college education, compared to the CPI, has risen dramatically since 1980. It has outpaced the housing bubble, and has many of the same characteristics, including a government sponsored credit bubble.

And with competitive quality now in question compared to emerging economies like China, the value per dollar spent for that American college tuition may be even lower.

Observation: The answer to the title question is, yes. And when the bubble bursts we will have the leadership of the current Morrill Gang to thank. Despite what they would have you believe, while they are bailing with their golden parachutes, this did not happen overnight. As with the Pawlenty administration, we are going to be paying for the sins of Morrill Hall well into the future.

Pray that we can recover, if you are of the prayin' persuasion.


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