Posted on 04/23/2008 6:39:22 AM PDT by jazusamo
Why does college cost so much?
There are two basic reasons. The first is that people will pay what the colleges charge. The second is that there is little incentive for colleges to reduce the tuition they charge.
Those who want the government to provide subsidies to help meet the high cost of college seem not to consider whether government subsidies might have contributed to the high cost of college in the first place.
In any kind of economic transaction, it seldom makes sense to charge prices so high that very few people can afford to pay them. But, with the government ready to step in and help whenever tuition is "unaffordable," why not charge more than the traffic will bear and bring in Uncle Sam to make up the difference?
The president of a small college once told me that, if he charged tuition that was affordable, even an institution the size of his would lose millions of dollars of government money every year.
In a normal market situation, each competing enterprise has an incentive to lower prices if that would attract business away from competitors and increase its profits.
Unfortunately, the academic world is not a normal market situation.
Some of the ways of cutting costs that a business might use are not available to a college or university because of restrictions by the accrediting agencies and the American Association of University Professors.
There was a time, back in the early 1960s, when my academic career began, when many -- if not most -- colleges had their faculty teaching 12 semester hours and a few had teaching loads of 15 semester hours.
Spending even 15 hours a week in a classroom may not seem like a lot to people who spend 35 or 40 hours a week on the job. However, there is also the time required to prepare lectures, grade tests and do other miscellaneous campus chores.
Even so, 12 hours a week in a classroom is not a killing pace, especially for professors who have taught a few years and have their lecture notes from previous years to help prepare for the current year's classes.
But that was then and this is now. Today, a teaching load of more than 6 semester hours is considered sweatshop labor on many campuses.
Incidentally, since academic class hours are 50 minutes long, 6 semester hours mean actually 5 hours a week in the classroom.
Why was it considered necessary to cut the teaching load in half? Mainly because professors were expected to do more research.
Why was more research considered necessary? Because research brings in more money from the government, from foundations and from other sources.
On many campuses, a beginning faculty member cannot expect to be promoted to a tenure position unless he or she brings research money into the campus coffers.
Once 6 semester hours of teaching becomes the norm, an individual college that tried to economize by having its faculty teach 9 or 12 semester hours could run into trouble with the American Association of University Professors and the accrediting agencies.
The University of Colorado law school had its accreditation by the American Bar Association put in jeopardy simply because they did not spend enough money on books for their law library -- even though their students passed the bar exam on the first try at a higher rate than the law students at Harvard and Yale.
The criteria used by most accrediting agencies are based on inputs -- essentially spending -- rather than results for students.
Competition among academic institutions therefore seldom takes the form of lowering their costs of operation, in order to lower tuition. The incentives are all the other way.
Competition often takes the form of offering more upscale amenities -- posh lounges, bowling alleys, wi-fi, finer dorms.
None of this means better education. But, so long as the customers keep buying it -- with government help -- the colleges will keep selling it.
Thomas Sowell is a senior fellow at the Hoover Institute and author of Basic Economics: A Citizen's Guide to the Economy.
Recommended “Sowell Food”, in order for the uninitiated:
Basic Economics
Applied Economics
Conflict of Visions
Vision of the Anointed
Economic Facts & Fallacies
all his other books in any order
One of the finest colleges in the country does not live off the government teet and it is a bargain - Grove City College.
Very good post!
We love him.
If I’m not on your Sowell ping list, please add me.
TIA!
BTTT!
Adding it to my list of books to read - when I have time ....
Thanks.
Speaking of The University of Colorado and out of control expenses : Ward is still getting his paycheck with benefits ?
Grove City and Hillsdale Colleges are both great!
The socialization of anything is always costly. Education is no exception.
Well give you a lot of nothing for $omething BUMP!
I never cease to be amazed by the amount of money people throw at private universities after they graduate.
When I was in school, I remember that credits were $400 a piece. They had three-credit lectures with over 400 students being taught by a grad student.
$400 x 3 x 400 = half a million
Hopefully the dinasours of the past 40 or so years will slowly be replaced by those “teaching” professors or at least get on a more even footing.
We’ll (Sheesh). (public educachion dontcha no) /sarcasm
Welcome, nmh, you’re on now.
Even so, 12 hours a week in a classroom is not a killing pace, especially for professors who have taught a few years and have their lecture notes from previous years to help prepare for the current year's classes.
But that was then and this is now. Today, a teaching load of more than 6 semester hours is considered sweatshop labor on many campuses.
Incidentally, since academic class hours are 50 minutes long, 6 semester hours mean actually 5 hours a week in the classroom.
Just...wow.
I spend 23 hours a week in the classroom - 24 semester hour teaching load (8 classes at 2 schools)
It's still a lot easier than a standard 40 hour a week job, though I work closer to 50 per week with grading/prep, etc....
Wouldn't have it any other way, for I love teaching.
The Academy is controlled by leftist Democrats. Ergo, according to their economic models, college should be free. Why do these marxists suddenly turn capitalist with their own businesses and maximize profits?
That whole Churchill fiasco is something everyone should be reminded of on a weekly basis and I congratulate you for your efforts.
Bttt
You are to be commended, we need many more like you that loves to teach.
The same also causes the proliferation of “new-age” studies, things like “gay and lesbian studies,” “women’s liberation studies,” “social work studies” etc.... There obviously is no shortage of resources if many of our colleges can sustain these fantasy, political indoctrination majors at $40,000 per year.
Many jobs that really don't need a college degree (Policeman, fireman, news reporter, salesman, etc.) now require a BS just for entry level. "Big College" has effectively taken these out of the work place in order to get a monopoly on the best-paying jobs.
In addition to the abject waste is a carefully planned scheme to extract every-last nickle from every student. First they set an outrageous price (if you can pay it fine-most can’t). Next they offer financial aide (read discount). To get the discount they require your tax forms so they can negotiate with complete knowledge and squeeze out every last penny. If any other business did this they would be in jail.
Maddening. College is one of the biggest hoaxes ever perpetrated on the public, third only to public schooling and modern art.
Of course. But look in the mirror America. This insanity wouldn't continue if Americans didn't bend over for it. As for me and my kids, I couldn't care less whether they go to college. I don't consider schooling and education the same thing. Considering the fact that my kids are homeschooled, they may never set foot in any kind of school. And that would be to their benefit.
“Many jobs that really don’t need a college degree (Policeman, fireman, news reporter, salesman, etc.) now require a BS just for entry level.’
That’s also because you can be borderline retarded and still graduate high school
ping
We like to tease our boys by telling people we have one son in the Navy, two Marines, and one in college. Every family has a black sheep;) He’s majoring in becoming a liberal and losing his salvation. Seriously, he can’t stray too far from the fold cause his brothers will converge on him and kick his butt for him!
LOL! I think you’re probably right, he’ll be fine.
That’s also because you can be borderline retarded and still graduate high school
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Probably true today but it shouldn’t be, it wasn’t that way fifty years ago. I have met a lot of college graduates who could not qualify for a high school diploma if they had to go back to 1960 and take exams.
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