Cost of a College Education

tomar

Ad Honoris
Jan 2011
12,781
#31
**EDIT** Even then, I don't think the savings dictates the pass on to the consumer.
Theoretically, if you are in a competitive environment , your price should go down.... Else it means competition does not work in the education sector (then we'd need to understand why)
 

Edratman

Ad Honorem
Feb 2009
6,177
Eastern PA
#32
Do you believe the starting wage of an occupation to be the sole representation of value in obtaining a degree? For example, think about what you're making now. Would it be possible without your degree? Do you know many good engineers making less than 80K a year?

In regards to the rise being out of proportion, that is unfortunate. However, it doesn't make any difference when more people are going to college today than ever. After all, the college education system in the US is a business.
?
The comparison of the ratio of starting wage vs tuition cost is a simple, irrefutable, direct, comparison between 1973 and today. Inflation and every other relative value is immediately and fully addressed within that relative comparison.
 
Jan 2019
122
USA
#33
Theoretically, if you are in a competitive environment , your price should go down.... Else it means competition does not work in the education sector (then we'd need to understand why)
I don't necessarily agree with that. Competition doesn't mean prices should go down, it does mean that there should be a way that you separate yourself from that competition (athletics for example).

If history has shown us one thing, it's that driving down the price of your product in order to compete in a marketplace is almost always a recipe for disaster.
 
Jan 2019
122
USA
#34
The comparison of the ratio of starting wage vs tuition cost is a simple, irrefutable, direct, comparison between 1973 and today. Inflation and every other relative value is immediately and fully addressed within that relative comparison.
That's fine. What I'm saying is it is a poor indicator of the value in a degree. As explained in the post your quoting.
 

Edratman

Ad Honorem
Feb 2009
6,177
Eastern PA
#35
That's fine. What I'm saying is it is a poor indicator of the value in a degree. As explained in the post your quoting.
The OP does not question the value of a degree.

The OP is about a single point. That question is "Why has the cost of a college degree increased 4 times the rate of inflation over the past 40 years?"
 
Jan 2019
122
USA
#36
The OP does not question the value of a degree.

The OP is about a single point. That question is "Why has the cost of a college degree increased 4 times the rate of inflation over the past 40 years?"
I agree that the article is a bit too conspiratorial. I think there is a more plausible explanation. The landscape has become more competitive and prerequisites for employment have accounted for it.

Americans with a college degree 1940-2017, by gender | Statista

The job market has accounted for the rise in college graduates. In regards to tuition fees? The value of a college education has accounted for the increase in demand for 4-year degrees.

Personally, I think it's simple as opposed to complex.
Perhaps the conversation of value with you bled in from other conversation in this thread. I think it is simple. If a business can charge X, they're going to..
 

tomar

Ad Honoris
Jan 2011
12,781
#37
Regarding the underprivileged, is the system you describe sufficient to guarantee that a poor child gets equal chances at higher education with a rich one? Is this system (which sounds more like a charity than a solid guarantee) available to every poor kid, or is it an exception to a rule of exclusion based on income?
Well, the sad reality is that no, you cannot compensate wealth, health, beauty, intelligence etc.....

The rich, healthy beautiful, intelligent will always have it much better than then poor sick ugly and stupid.... A separate question is why would someone born poor be more eligible for compensation than someone born ugly or stupid.... (its hard to get a higher education if you're stupid, its quite doable if you are poor)

This said if you have high test results (same if you're a good athelete) not only universities but the armed forces, will be falling head over heels to get you to enroll with them.... Discounts in tuition, scolarships and other advantages

Are Your SAT Scores Good Enough for Selective Colleges?

Unfortunately the scores have been falling for the past 10 years or so

 

tomar

Ad Honoris
Jan 2011
12,781
#38
Perhaps the conversation of value with you bled in from other conversation in this thread. I think it is simple. If a business can charge X, they're going to..
In a competitive environment it is usually simple.... business charges costs + margin.... the more competitors the lower the margin..... since there are a lot of competitors and no shortages in the business of education , the margin should be low
For example in the car industry the margin is a mere 2% and that's an industry that has done everything it can to optimize
 
Jan 2019
122
USA
#39
In a competitive environment it is usually simple.... business charges costs + margin.... the more competitors the lower the margin..... since there are a lot of competitors and no shortages in the business of education , the margin should be low
For example in the car industry the margin is a mere 2% and that's an industry that has done everything it can to optimize
The margin is 2% on what in the automotive industry? I'm curious what you mean because I was a project manager for an OEM Automotive manufacturer. I'm very familiar with the margins. The margin is 2% for tier 1s to sell to the OEM, sure. Also, do you know what is happening to the automotive industry right now in the world? Not the best example of a good market strategy. :)

Again, you don't devalue your market when competing in your marketplace. How to you afford innovation? That is where you seperate yoruself form your competition and future proof yourself in an industry. You don't lower margins to account for an increase in growth to compete.
 
Last edited:

Solidaire

Ad Honorem
Aug 2009
5,358
Athens, Greece
#40
Well, the sad reality is that no, you cannot compensate wealth, health, beauty, intelligence etc.....

The rich, healthy beautiful, intelligent will always have it much better than then poor sick ugly and stupid.... A separate question is why would someone born poor be more eligible for compensation than someone born ugly or stupid.... (its hard to get a higher education if you're stupid, its quite doable if you are poor)
It's not a question of "compensation", it is a question whether societies should try to be more egalitarian and soften class distinctions or not. Sure, one could consider that this is not a valid goal, and that on the contrary, the poor should not have the same opportunities in life as the rich. Some might even consider that inherited status, medieval serfdom and feudalism was a better system than the egalitarianism that Enlightened thinking planted into our world view.
 

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