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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: koan who wrote (94001)2/9/2009 1:40:48 PM
From: benwood1 Recommendation  Read Replies (1) of 116555
 
The problem with guaranteeing that the public pick up the tab for higher education no matter what is that college education will have costs that continue to escalate faster than inflation, as they have been for decades.

Ditto housing.

Ditto medical, where so many people can get treatment and never need to ask if something is necessary nor competitively priced.

For medical, it's nearing the point where it must change due to so many people shooting off the end of coverage.

For higher ed, something has to break through to the course level to cause widespread increases in efficiencies and a reduction in costs. A blank check will never do it. A competitive cycle will do it. Exactly how we get there however I've no idea, but a recession as we are having now is forcing universities to figure this problem out finally because state funding is being cut. Private universities will have to follow this path as private donor contributions are bound to fall.
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