A lot of things in America are really cheap, but there are a few areas where we are denied cost effective options. I like colleges as an example because you don't need any domain specific knowledge to see the excess.
I went to a cheap state school. The buildings were made of red brick, the paths were paved with brick and replaced every 3 years, and the gardens were meticulously maintained...the place was meant to look like a palace, and this was one of the most cost effective options I could find. If I don't strike it rich, I'll probably never live or work in a place as fancy as where I went to school.
Of course there are ugly colleges too, but the point is that the price of tuition includes a lot that has nothing to do with education, and a lot of this is stuff people wouldn't pay for if given the choice.
Does it make sense to pay for an upper middle class lifestyle when you're a broke 19 year old? Don't worry, the government will give you a loan...
> the price of tuition includes a lot that has nothing to do with education, and a lot of this is stuff people wouldn't pay for if given the choice.
This is a very good point. There are colleges that are quite a bit less expensive, but as a whole the fact you can get a loan for pretty much any amount without needing to justify the return on investment guarantees that colleges will keep increasing their expenses to get students to spend their debt at their school.
I went to a cheap state school. The buildings were made of red brick, the paths were paved with brick and replaced every 3 years, and the gardens were meticulously maintained...the place was meant to look like a palace, and this was one of the most cost effective options I could find. If I don't strike it rich, I'll probably never live or work in a place as fancy as where I went to school.
Of course there are ugly colleges too, but the point is that the price of tuition includes a lot that has nothing to do with education, and a lot of this is stuff people wouldn't pay for if given the choice.
Does it make sense to pay for an upper middle class lifestyle when you're a broke 19 year old? Don't worry, the government will give you a loan...