Ol' Peter wants a barrier between rich and poor. The best way to do that is to make education accessible to those that can pay out of pocket. Keeps people in their place.
I wonder... If every college raise their tuition fees over time, shouldnt there be an incentive for them to, in a free competitive market, lower their costs? That is, even if the government guarantee the loans.
@rwoz Why would they have an incentive to lower their costs if the students are always able to borrow the money to pay for tuition?
If you produce widgets and you sell out every year, you raise the price, still sell out, raise the price again, sell out, what incentive exists for you to lower your price?
@voogru Its the same as with any other product: you want as cheap as possible, regardless of whether there is cheap credit for loans or not. I mean, in your example, there should be someone stepping in, lowering the cost and taking all the customers, right? It seem to me that there is a high demand on education, with these high prices, so why isnt there anyone stepping in starting a new school, lowering the prices a loooooooooot and take out all the competitors?
Khan Academy is one of them. Funny thing about it, there was a story about some teachers that really liked Khan Academy, their complaint that it made people learn too quickly and that it should be slowed down.
@voogru But Khan Academy (great channel btw) is purely on the Internet isnt it? There still must be a high demand for regular schools. So I say it again, even though there is access to easy credit, people still want a cheap education.. So why isnt there any schools lowering the tuition fees? Maybe there is a lot of competition between the students, putting a high pressure on them, not the schools. So I can imagine there being a ton of regulations making it hard to start new schools.
@rwoz Because they can benefit from the current status quo. They'll make a lot more money by acting like every other school. The game is rigged in favor of the schools with government loans and nondischargeable student loan debts. Anyone participating in this market is going to want to take advantage of that.
Just like if you saw a briefcase of full of money on the side of the road you would go pick it up.
@voogru I saw a documentary about this today, college conspiracy. They claim that the schools need to higher the tuition fee every time the roof for financial aid are raised. This is because of the "90/10 rule", which claims that no more than 90% of the revenues can come from government money. So as long as the students pay more and more with government money, they need to raise the tuition to stay within the 90/10 rule.
@voogru I think you are wrong... it sounds like you assume the schools are in some kind of a cartel where the schools prop up the prices to a artificially high level. From what I have heard from free market economists, cartels cant hold on forever. Even though every school benefits from the high revenues, they still have the incentive to take students from other schools by lowering the tuition a little bit. This in turn should make the other schools do the same.
@rwoz Cartels can hold on forever when they are assisted by the government, it's the only way a cartel can maintain a stranglehold on the market. There is no incentive to lower prices, because it doesn't matter what they charge, students can always borrow the money.
Once thats no longer the case you would see them cut prices, reduce costs, and compete.
@voogru I agree that government can maintain cartels, but is it so in this case? They have an incentive to lower costs since students dont want to get into debt. Thats just pure logic, the students dont want to owe someone a lot of money, even if its interest free. So if someone lower their tuition fee, more students will go to that school, and that school will earn more money. Simple as that, I think Peter Schiff would agree on that too...
@rwoz But there is no incentive for the schools to do that. You have to understand that people will always do what makes the most money. Whenever the government gets involved like that, the market gets rigged. Look at how housing prices exploded when anything with a pulse could get a loan.
@voogru But is housing really the same thing? People didnt care as much since the common belief was that the prices would always rise, so they saw it more or less like an investment. I dont think people would reason the same way with college.
@rwoz Any time the government interferes with a market, prices skyrocket. Look at how ethanol subsidies caused corn prices to go up. The value of farmland suitable for corn skyrocketed as well.
Kids are told today that 'education' is the 'best' investment and that they'll be on easy street once they have a degree.
I'm not quite sure how to put it.
Would you like to make $100,000 a year, or $250,000 for doing the same job?
@voogru I agree with you there, Im a Ron Paul supporter so. Anyway.,.. Im not going to argue if it is you or me who know this thing best, Im not an economist... this is just a hobby for me so I havent studied these things up close.
EDUCATION IS KEY TO ONE'S SUCCESS IF THE POLICIES ARE SET RIGHT. GOVERNMENT MUST PROVIDE THE SUBSIDIES FOR PEOPLE WHO CAN'T AFFORD BUT MUST REGULATE THE UNIVERSITIES AND COLLEGES TO NOT TAKE ADVANTAGE BY RAISING THE TUITION FEES ALL THE TIME. THERE MUST BE A CAP SET. ALSO, JOBS MUST BE BROUGHT BACK AND NOT OUTSOURCED. PETER SCHIFF IS JUST ONE OF THE 1% WHO GIVES OUT THE PROPAGANDA THAT GOVERMENT IS BAD. GOOD GOVERNMENT WILL SOLVE THIS. PUT THE RIGHT HONEST PEOPLE IN. NOT THE CORRUPT ONES.
I remember in middle school we had to take these "career" tests and I was frustrated that no matter what answers I picked, I couldn't get entrepreneur as a career option...because it wasn't an option. All of the available careers gave a suggested path; all going through college. Thank goodness I rejected that notion and went to tech school instead and a year later was working debt free and have been ever since.
Damn I read the spartan student blog. That's really gotta suck. I knew a couple of people in my first university that were in similar situations. People, after graduating high school are put in a really tough dilemma. Either they save money for college or take up a government loan. Too much pressure to go to college immediately after high school. I think that the real issue here is society failing to adjust to the economy. Rambling here, not enough room for my thoughts!
@omarsalem91 If the government did not guarantee the loans, the students would not be able to go to the colleges, the colleges would be EMPTY until they reduce the prices.
Right now there is no downward force on prices. They could literally ask for 1 million dollars a year to go to college and the kids would still get the loans because the government will always guarantee the loan even if the student doesnt pay it off.
@voogru That's what I was getting at. If colleges experienced a declining rate of applicants every year because students were either saving money to afford college or were out there in the job market, lower prices would be inevitable.
@voogru you are correct. College professions work 13 hours a week, cannot be fired after 2 years, work 179 days a year and make $120,000 a year. The colleges have learned that they can ask any price for an education and the government will give students any amount of money. Worst thing is that the student can never bankrupt the loan. College prices went thru the roof when the government gave anyone loans for any amount.
@voogru I think the problem is also complicated by the fact that there are all these myths about the necessity of college. I think that's driving the kids to want to go to these colleges, and then the government-backed loans allow the colleges to drive the costs up, AND the government is the one encouraging kids to go to these colleges too. So when you look at the whole thing, it's a vicious cycle. Government tells you to go to college, college costs a shitload, government gives loans. Crazy
You should also take into account how many people have successful careers, but their degree that they spent a fortune on has nothing to do with their career.
@voogru Yeah, like this girl here. Poor thing was duped by mainstream society. The government really ought to stay out of education except for public schools.
@kommisar That is true the myths of the necessity of college and even private industries when they hire people may claim if they hire someone they want them to have college education. These known bias's they told to the public that they were not going to hire these people but, these people that they helped created this mess. Then they are frozen, not know what to do to fix it. Ba
ck in the day churchs used to teach the children. Education has only education children to do what?
Ol' Peter wants a barrier between rich and poor. The best way to do that is to make education accessible to those that can pay out of pocket. Keeps people in their place.
fasloc 1 week ago
@fasloc
nonsense.. You're missing the point.. goverment guarantee loans is why it's so expensive.. if you abolish the loans, tutions prices collapse.
xMaXiMuSx 1 week ago
I wonder... If every college raise their tuition fees over time, shouldnt there be an incentive for them to, in a free competitive market, lower their costs? That is, even if the government guarantee the loans.
rwoz 2 months ago
@rwoz Why would they have an incentive to lower their costs if the students are always able to borrow the money to pay for tuition?
If you produce widgets and you sell out every year, you raise the price, still sell out, raise the price again, sell out, what incentive exists for you to lower your price?
None.
voogru 1 month ago
@voogru Its the same as with any other product: you want as cheap as possible, regardless of whether there is cheap credit for loans or not. I mean, in your example, there should be someone stepping in, lowering the cost and taking all the customers, right? It seem to me that there is a high demand on education, with these high prices, so why isnt there anyone stepping in starting a new school, lowering the prices a loooooooooot and take out all the competitors?
rwoz 1 month ago
@rwoz They are.
Khan Academy is one of them. Funny thing about it, there was a story about some teachers that really liked Khan Academy, their complaint that it made people learn too quickly and that it should be slowed down.
voogru 1 month ago
@voogru But Khan Academy (great channel btw) is purely on the Internet isnt it? There still must be a high demand for regular schools. So I say it again, even though there is access to easy credit, people still want a cheap education.. So why isnt there any schools lowering the tuition fees? Maybe there is a lot of competition between the students, putting a high pressure on them, not the schools. So I can imagine there being a ton of regulations making it hard to start new schools.
rwoz 1 month ago
@rwoz Because they can benefit from the current status quo. They'll make a lot more money by acting like every other school. The game is rigged in favor of the schools with government loans and nondischargeable student loan debts. Anyone participating in this market is going to want to take advantage of that.
Just like if you saw a briefcase of full of money on the side of the road you would go pick it up.
voogru 1 month ago
@voogru I saw a documentary about this today, college conspiracy. They claim that the schools need to higher the tuition fee every time the roof for financial aid are raised. This is because of the "90/10 rule", which claims that no more than 90% of the revenues can come from government money. So as long as the students pay more and more with government money, they need to raise the tuition to stay within the 90/10 rule.
rwoz 1 month ago
@rwoz That's just one piece of the puzzle though.
voogru 1 month ago
@voogru I think you are wrong... it sounds like you assume the schools are in some kind of a cartel where the schools prop up the prices to a artificially high level. From what I have heard from free market economists, cartels cant hold on forever. Even though every school benefits from the high revenues, they still have the incentive to take students from other schools by lowering the tuition a little bit. This in turn should make the other schools do the same.
rwoz 1 month ago
@rwoz Cartels can hold on forever when they are assisted by the government, it's the only way a cartel can maintain a stranglehold on the market. There is no incentive to lower prices, because it doesn't matter what they charge, students can always borrow the money.
Once thats no longer the case you would see them cut prices, reduce costs, and compete.
voogru 1 month ago
@voogru I agree that government can maintain cartels, but is it so in this case? They have an incentive to lower costs since students dont want to get into debt. Thats just pure logic, the students dont want to owe someone a lot of money, even if its interest free. So if someone lower their tuition fee, more students will go to that school, and that school will earn more money. Simple as that, I think Peter Schiff would agree on that too...
rwoz 1 month ago
@rwoz But there is no incentive for the schools to do that. You have to understand that people will always do what makes the most money. Whenever the government gets involved like that, the market gets rigged. Look at how housing prices exploded when anything with a pulse could get a loan.
voogru 1 month ago
@voogru But is housing really the same thing? People didnt care as much since the common belief was that the prices would always rise, so they saw it more or less like an investment. I dont think people would reason the same way with college.
rwoz 1 month ago
@rwoz Any time the government interferes with a market, prices skyrocket. Look at how ethanol subsidies caused corn prices to go up. The value of farmland suitable for corn skyrocketed as well.
Kids are told today that 'education' is the 'best' investment and that they'll be on easy street once they have a degree.
I'm not quite sure how to put it.
Would you like to make $100,000 a year, or $250,000 for doing the same job?
Would you ever pick the $100,000 a year?
voogru 1 month ago
@voogru I agree with you there, Im a Ron Paul supporter so. Anyway.,.. Im not going to argue if it is you or me who know this thing best, Im not an economist... this is just a hobby for me so I havent studied these things up close.
rwoz 1 month ago
@rwoz "So I can imagine there being a ton of regulations making it hard to start new schools."
There are, but the biggest problem is accreditation. Academia pretty much has a monopoly on that kind of stuff. Kinda like the textbook racket.
voogru 1 month ago
EDUCATION IS KEY TO ONE'S SUCCESS IF THE POLICIES ARE SET RIGHT. GOVERNMENT MUST PROVIDE THE SUBSIDIES FOR PEOPLE WHO CAN'T AFFORD BUT MUST REGULATE THE UNIVERSITIES AND COLLEGES TO NOT TAKE ADVANTAGE BY RAISING THE TUITION FEES ALL THE TIME. THERE MUST BE A CAP SET. ALSO, JOBS MUST BE BROUGHT BACK AND NOT OUTSOURCED. PETER SCHIFF IS JUST ONE OF THE 1% WHO GIVES OUT THE PROPAGANDA THAT GOVERMENT IS BAD. GOOD GOVERNMENT WILL SOLVE THIS. PUT THE RIGHT HONEST PEOPLE IN. NOT THE CORRUPT ONES.
rvrola 2 months ago
6:20 "Were you in a sorority?" "No, I'm ugly." HAHA.
jtropeano 4 months ago
I remember in middle school we had to take these "career" tests and I was frustrated that no matter what answers I picked, I couldn't get entrepreneur as a career option...because it wasn't an option. All of the available careers gave a suggested path; all going through college. Thank goodness I rejected that notion and went to tech school instead and a year later was working debt free and have been ever since.
kev3d 4 months ago
What is with youtube's compression of the static image on the video?
byteusa 4 months ago
The whole college loan scam is just another way the government facilitates the banks
pretorious700 4 months ago
If I went back in time I would invest in silver and gold.
PhilippineAmerican 7 months ago
This girl sounds like a tard and a half.
njdevil281 7 months ago
Peter Schiff was right!
kotash2 9 months ago
I agree with most of this but did he infer fabricating your education experiences for your resume? Isn't that illegal or something?
hummer616 1 year ago
Let's have Open University yo!
ntn1987 1 year ago
Damn I read the spartan student blog. That's really gotta suck. I knew a couple of people in my first university that were in similar situations. People, after graduating high school are put in a really tough dilemma. Either they save money for college or take up a government loan. Too much pressure to go to college immediately after high school. I think that the real issue here is society failing to adjust to the economy. Rambling here, not enough room for my thoughts!
omarsalem91 1 year ago
@omarsalem91 If the government did not guarantee the loans, the students would not be able to go to the colleges, the colleges would be EMPTY until they reduce the prices.
Right now there is no downward force on prices. They could literally ask for 1 million dollars a year to go to college and the kids would still get the loans because the government will always guarantee the loan even if the student doesnt pay it off.
voogru 1 year ago 4
@voogru That's what I was getting at. If colleges experienced a declining rate of applicants every year because students were either saving money to afford college or were out there in the job market, lower prices would be inevitable.
omarsalem91 1 year ago
@voogru you are correct. College professions work 13 hours a week, cannot be fired after 2 years, work 179 days a year and make $120,000 a year. The colleges have learned that they can ask any price for an education and the government will give students any amount of money. Worst thing is that the student can never bankrupt the loan. College prices went thru the roof when the government gave anyone loans for any amount.
generalmarks 1 year ago
@voogru I think the problem is also complicated by the fact that there are all these myths about the necessity of college. I think that's driving the kids to want to go to these colleges, and then the government-backed loans allow the colleges to drive the costs up, AND the government is the one encouraging kids to go to these colleges too. So when you look at the whole thing, it's a vicious cycle. Government tells you to go to college, college costs a shitload, government gives loans. Crazy
kommisar 5 months ago 2
@kommisar Absolutely.
You should also take into account how many people have successful careers, but their degree that they spent a fortune on has nothing to do with their career.
They just wasted a fortune.
voogru 5 months ago 2
@voogru Yeah, like this girl here. Poor thing was duped by mainstream society. The government really ought to stay out of education except for public schools.
kommisar 5 months ago
@kommisar That is true the myths of the necessity of college and even private industries when they hire people may claim if they hire someone they want them to have college education. These known bias's they told to the public that they were not going to hire these people but, these people that they helped created this mess. Then they are frozen, not know what to do to fix it. Ba
ck in the day churchs used to teach the children. Education has only education children to do what?
duvexy 4 months ago
@duvexy ???
kommisar 4 months ago