Do you support Socialism?

[!! Shawn]

Originally Posted by Sin City

If this ain't the biggest crock of bull**** I ever heard...

Well, since you do not understand, I will take the time to explain it to you.

It is the same basic tenant as inflation but in an isolated form.

In this example we are going to treat university system as an independent country.

First it is essential that you understand that increasing the available monetary supply within an economy invariably leads to inflation and increase in prices within that economy.

In severe instances, like in Zimbabwe, when the money supply is increased at an absurd rate, so do the prices of every day goods and services.

Now in our example the schools are our country. For this example we will call it Schoolsville.

Now in the past, Schoolsvilles monetary supply was tightly controlled, the prices of goods and services (tuition) within Schoolsville was rather constant.

One day, the Federal Bank of Schoolsville decided to print a large quantity of money (student loans), as per economic theory, the price of goods an services within the economy of Schoolsville increased.

As you can see, the spiraling price of education is directly related to the increasing availability of student loans. With more money in the school system, prices will rise to the point of equilibrium.

If you need any further clarification on how the increased supply of money for education has lead to an increase in the prices of education, let me know and I will do my best to clarify.

[BmoreBrawler]

Originally Posted by !! Shawn

Well, since you do not understand, I will take the time to explain it to you.

It is the same basic tenant as inflation but in an isolated form.

In this example we are going to treat university system as an independent country.

First it is essential that you understand that increasing the available monetary supply within an economy invariably leads to inflation and increase in prices within that economy.

In severe instances, like in Zimbabwe, when the money supply is increased at an absurd rate, so do the prices of every day goods and services.

Now in our example the schools are our country. For this example we will call it Schoolsville.

Now in the past, Schoolsvilles monetary supply was tightly controlled, the prices of goods and services (tuition) within Schoolsville was rather constant.

One day, the Federal Bank of Schoolsville decided to print a large quantity of money (student loans), as per economic theory, the price of goods an services within the economy of Schoolsville increased.

As you can see, the spiraling price of education is directly related to the increasing availability of student loans. With more money in the school system, prices will rise to the point of equilibrium.

If you need any further clarification on how the increased supply of money for education has lead to an increase in the prices of education, let me know and I will do my best to clarify.

Rwned

[Reggie Miller]

:roflbow: @ this fool sin city giving me red k because i posted that obama video..

:smh:

[Mizzou]

Originally Posted by kswizzy99

it all depends. here in canada we have free health care and our university fees are nothing compared to what it costs in the states and that is because of the government support. that to me is amazing and I took it for granted until I heard some of the horror stories with the health care and education system in America but yet American's like to say that its a socialist system we have here and say it like its a bad word. that just boggles my mind cuz I fail to see the problem in our system.

my cousin's univesity fees in the states cost him something like $300,000. my 3 years in University here only cost me about $6000. If that is considered bad, than I don't want good.

Where in the **** did he go to school. You are fudging numbers.

[Mizzou]

Originally Posted by !! Shawn

No, the grants and scholarships are provided by privately funded organizations, and are therefore not socialist, but conform to my assertion that people are generous.

Pell Grants come from taxpayer money.

[Mizzou]

Originally Posted by hinduw

someone must be real bitter and greedy to care so much about money.

I really don't care how much money the gouvernement takes from me as long as I live a happy life, even then i still got enough money to do things i want. I don't have to worry about anything cause i know when something happens to me the gouvernement will help me. In socialism it's mayby impossible to have 8 houses and 20 cars but then again 95 procent of americans won't be able to have that either including you and shawn.

But you make sure you keep a thight grip on your money, i bet it loves you just much as you love him

This is the attitude that makes me sick and makes me have no desire for French style government. You can be a lazy, worthless **** and still have your needs met. Obviously your parents never taught you that if you don't work, you don't eat.

[!! Shawn]

Originally Posted by Mizzou

Pell Grants come from taxpayer money.

But things such as the Bill Gates Minority Scholarship do not come from tax payer money.

[Salty]

Originally Posted by !! Shawn

Well, since you do not understand, I will take the time to explain it to you.

It is the same basic tenant as inflation but in an isolated form.

In this example we are going to treat university system as an independent country.

First it is essential that you understand that increasing the available monetary supply within an economy invariably leads to inflation and increase in prices within that economy.

In severe instances, like in Zimbabwe, when the money supply is increased at an absurd rate, so do the prices of every day goods and services.

Now in our example the schools are our country. For this example we will call it Schoolsville.

Now in the past, Schoolsvilles monetary supply was tightly controlled, the prices of goods and services (tuition) within Schoolsville was rather constant.

One day, the Federal Bank of Schoolsville decided to print a large quantity of money (student loans), as per economic theory, the price of goods an services within the economy of Schoolsville increased.

As you can see, the spiraling price of education is directly related to the increasing availability of student loans. With more money in the school system, prices will rise to the point of equilibrium.

If you need any further clarification on how the increased supply of money for education has lead to an increase in the prices of education, let me know and I will do my best to clarify.

Your logic is flawed, it's an increased demand of students able to pay for the college system which causes the prices to rise. The increased availability of credit therefor is the cause of this price rise. This means that in the coming few years prices should fall dramatically as who is going to give a student a hundred thousand dollar loan in times where banks wont even lend to each other? At least with a house loan you have equity, these students can just declare themselves bankrupt.

However i'm guessing the prices will not decrease, therefor the problem is supply based. The private institutions in this case are not accommodating enough positions in order to provide cheap tertiary education. They are keeping places at a minimum so that the same profit levels can be achieved by supplying less than required. This is where socialism is particularly helpful.

You do not have vital institutions such as university's which are of great importance for the society, being driven purely by profit. No, right now they are not working at potential output, thus are inefficient and artificially driving up the price of tertiary education for their own sole benefit.

[BmoreBrawler]

Originally Posted by Salty

Your logic is flawed, it's an increased demand of students able to pay for the college system which causes the prices to rise. The increased availability of credit therefor is the cause of this price rise. This means that in the coming few years prices should fall dramatically as who is going to give a student a hundred thousand dollar loan in times where banks wont even lend to each other? At least with a house loan you have equity, these students can just declare themselves bankrupt.

However i'm guessing the prices will not decrease, therefor the problem is supply based. The private institutions in this case are not accommodating enough positions in order to provide cheap tertiary education. They are keeping places at a minimum so that the same profit levels can be achieved by supplying less than required. This is where socialism is particularly helpful.

You do not have vital institutions such as university's which are of great importance for the society, being driven purely by profit. No, right now they are not working at potential output, thus are inefficient and artificially driving up the price of tertiary education for their own sole benefit.

You are both right about half of the situation. If there was no expansion of credit, prices wouldn't be so high. However, supply creates its own demand. In this case, a supply of cheap credit caused by GOVERNMENT money printing and GOVERNMENT loans has led to higher than normal demand for schools as well as higher than normal prices FOR schools. Prices will decrease unless they are propped up by the government through more cheap credit. Private institutions will be able to adjust, while government schools will suck more tax/printing press money to stay competitively priced. This is all assuming of course that the government can't re-flate the bubble and give us inflation/hyperinflation.

[Salty]

Originally Posted by BmoreBrawler

You are both right about half of the situation. If there was no expansion of credit, prices wouldn't be so high. However, supply creates its own demand. In this case, a supply of cheap credit caused by GOVERNMENT money printing and GOVERNMENT loans has led to higher than normal demand for schools as well as higher than normal prices FOR schools. Prices will decrease unless they are propped up by the government through more cheap credit. Private institutions will be able to adjust, while government schools will suck more tax/printing press money to stay competitively priced. This is all assuming of course that the government can't re-flate the bubble and give us inflation/hyperinflation.

Price levels hardly ever decrease even in times of recession, they generally stay at the same level or increase, but hardly ever decrease. Either way it's simply a lack of supply of degree's, if they wanted to improve the standard they could increase the prerequisites to entry. That would raise the overall standard of the student body, however they instead have decided to increase the cost of it.

At the uni I am at you need to be in the top 20% of the students graduating to even be considered, then depending on the demand the students who get the higher grades are placed first until all places are full. That way the brightest and hardest working students fill the positions, not those who can afford huge fees.