Political Calculations has a nice two posts on the higher ed bubble that has been getting some newsworthy attention of late. Essentially, as federal government outlays have increased for education, tuition has skyrocketed. There is a correlatin to these numbers as the graph below suggests:
There is a lot of information in these two posts, but essentially, we have the higher federal government expenditures to blame for the rising tuition–as well as I would say, state cutbacks in educational support. Snip:
These high and increasing levels of correlation between total federal spending and the average cost of college tuition strongly indicates that the federal government is directly responsible for the escalating cost of attending college for the vast majority of students.
So much for the cost explosion of college educations in recent years being unexplainable.
And you do realize that with this kind of relationship, a tool you can use to predict what the average cost of college will be several years into the future can’t be far behind….