The president recently made a campaign speech about the magnitude of the problem created by student debt and possible solutions. This has caused talking heads on television to rant about the causes. Liberals say tuition increases are a result of decreasing support by government. Conservatives say it is caused by the easy access to borrowed money.
Has the parallel between the real estate bubble and the education bubble escaped everyone but me? A basic law of economics is that too many dollars pursuing too few resources results in rising prices.
Our current extended recession was brought on by the collapse of real estate values, which were artificially high because of liberal government policies designed to make mortgage money available to anyone, without regard for ability to pay. A well-intended desire to make home ownership possible across the economic spectrum combined with the greed of those who would use those regulations for their own profit has impacted the world economy more than anyone could have imagined.
Rapidly rising tuition at our colleges and universities is a direct result of an abundance of money available for limited number of classroom seats. The greed of the institutions has caused the most massive growth of educational facilities we have ever seen.
The collapse of the educational bubble is as certain as that of the real estate bubble.
The solution to each of these issues is the same as the solution to our federal debt and deficit crisis. We must elect candidates who will return this country to sound financial principles. Not only do we need to eliminate the deficit, but we must begin reducing the debt as well.
Many who read this may not understand the difference, but you must before you vote. We can't continue spending what we don't have.