This just in: College is more expensive than it used to be. In fact, it is more more expensive. It makes sense. The demand for college education has risen in the past 30 years. Basic economics teaches us that as demand increases so do prices (thanks, college).
I believe, however, that college prices are more inflated than they should be. To explain: Many college students pay for some part of their education with Federal financial aid. Students take out loans or get grants from the US government to attend a school they cannot afford out of pocket. Regardless, this means the government has effectively subsidized almost every college in the US. Government subsidies consistently have a couple of effects on markets. They prevent inferior firms from succumbing to market forces and closing, and they make products more expensive for consumers (see AmTrak, US Agriculture Industry).
All you need to know: It costs more to go to college, and you are getting less than you pay for. Still like your federal aid?
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