Why is College So Expensive?

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• published: 07 Oct 2016
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Why is college tuition so high? Why are so many students in so much debt? Is it the fault of colleges, the government, or both? And can anything be done? Get the answers in this short video. Donate today to PragerU: http://l.prageru.com/2eB2p0h This video is part of a collaborative business and economics project with Job Creators Network and Information Station. To learn more about JCN, visit https://www.jobcreatorsnetwork.com and https://www.informationstation.org. Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys Join PragerU's text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru You can support PragerU by clicking here: https://www.classy.org/checkout/donation?eid=60079. Free videos are great, but to continue producing high-quality content, contributions--even small ones--are a must! Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful. VISIT PragerU! http://www.prageru.com FOLLOW us! PragerU is on Snapchat! Facebook: https://www.facebook.com/prageru Twitter: https://twitter.com/prageru Instagram: https://instagram.com/prageru/ JOIN PragerFORCE! For Students: http://l.prageru.com/2aozfkP Sponsor a Student: http://l.prageru.com/2aoz2ht JOIN our Educators Network! http://l.prageru.com/2aoz2y9 Script: College can be pretty great whether it’s the football games, learning about business, history, marine biology, or thousands of other topics… or pizza at four o’clock in the morning. But why has college gotten so expensive? In 1980, a year of college cost $3,400. Today, the average cost is more than $23,000. What’s going on? A great deal of blame lies with the government. Government tries to help students by providing loans and financial aid. That is a great intention but when government helps pay for things, people tend to forget how much these things cost in the first place… things like college tuition. Whether it’s from the students or the government, colleges get their money. And when the schools know that students have more money to spend (even if it’s the government’s money), they can raise the cost of admission. Think about that college town pizza place. If the government provided subsidies to buy $5 pizzas, we would all cheer right? And we’d want to buy more pizza for a short time. But before long, the higher demand fueled by these artificially low prices would encourage the pizza place owner to charge more for pizza… knowing that many people were getting government pizza assistance. And this says nothing of the taxpayers stuck paying for the pizza subsidies. So the next time people complain about the high cost of college… explain how government policy that tries to “help” students afford college now actually hurts future students down the road.