Tuesday, December 4, 2012

Here's A Lesson!

There is another government back fiscal balloon that's destined to pop, as did the rest of the artificially created boons. What Washington fails to realize is when you subsidize something, you tend to get more of it, which was possibly their well meant intent when it came to government backed student loans. Offering everyone a higher level of education is of the best intentions, but left unchecked like most government backed fiscal boondoggles, they run amok.

The government subsidized college loan system is exactly like the government intervention into the housing market. Once again both programs were designed with good intentions, but there is a reason this type of activity isn't specifically outlined in the enumerated powers of the Constitution.

The learning institutions have no boundaries, and just like the housing market's inflated prices became it's downfall, the rate of tuition increase knows no ceiling. The money is provided by the government without qualification, no matter what price the Universities decide to place on their services. A recipe for disaster, not unlike the housing market crash that just caused the depression.

And not unlike the housing crash, no one says a word!

Why is that? Because America enjoys the handout without concern for the price of repayment. Our long term vision is blurred by the readily available government cash that brings opportunity to attend an institution that would normally be outside our personal budget. Colleges flourish, students suffer after graduating with a degree that isn't marketable, and a debt that rivals a mortgage of a dwelling in a high end neighborhood. Have you not wondered why you never see the ads on TV asking you to donate to the "college relief fund?"

The don't need relief! In fact most of them are sitting on endowment funds that could fund them for the next decade. Now do they really need to charge that much for higher education, or are they simply milking the golden cow offered by the government?

You decide!

God Bless!
Capt. Bill

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