Wednesday, September 8, 2010

POP! That is sound of the"bubble" about to burst in the market for Higher Education...Can colleges escape the laws of supply and demand? I think not...

There has been lots of talk about how to control over-spending in the housing and healthcare markets.  Major legislation has been passed and political capital has been expend to address these problems. How about the potential "bubble" in higher education? Is this issue important to college students?? Well, yes.  Has it been seriously addressed? Well, you decide for yourself as you write checks to pay for your college expenses...

The first graph pulls out the price of College Tuition  (Dark Red Line) over time and compares it to prices as a whole (CPI-Blue Line) and the price of housing ( Bright Red Line)


The second graph pulls out the price of College Textbooks (Blue Line) and compare it to prices as a whole (CPI-Dark Red Line) and the price of housing (Bright Red Line)
Graphs courtesy of Carpe Diem
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