The Econmist recently quoted Kevin Carey: “…if the lifetime wage premium for a college grad is a million dollars over 40 years, then how much is four years of college worth today? Answer: about $300,000 or so. That’s $75,000 per year…”
Yikes! If a college education is worth this much, then college costs are bound to go up, right?
Many say yes because college costs are unregulated, but take away loans and government subsidies and the cost of college would follow lower demand and be reduced.
But, as Kevin Drum writes: “…you’ll be accomplishing that [lowering tuition costs] by ensuring that a whole lot of potential students decide not to go to college, which will ultimately mean poorer Americans and lower GDP.”
Whats’ the answer?