Monday, September 28, 2015

Governments indirectly causing higher tuition rates at universities

You have students graduating waiting on tables and driving taxi cabs with $50,000 to $100,000 worth of debt. They majored in nothing. They studied Liberal Arts. They wasted their time. They wasted money. There’s no hope of ever paying it back. It’s a typical example of how the government destroys everything it gets into. The government wanted to make college more affordable. They made it more expensive.

The government all of a sudden sees a bunch of college students and they want their votes. So how do they get their votes? “Hey, we’ll make it easier for you so you don’t have to go out and get a job to go to college. You don’t have to do that. We’ll loan you some money. We’ll guarantee your loans so you can borrow money at a really low rate of interest. It will be like a U.S. Treasury [Note]."

The government solution is, “We’ll make more money available. We’ll make more loans. We’ll make more scholarships.” The universities say, “Great! We can raise our prices even faster now because our customers have even more government money to pay the tuitions.”

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009