Telling the stories that the mainstream media no longer tell.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 15 other subscribers

Archives

Categories

Follow me on Twitter

June 2016
M T W T F S S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930  

Do student loans cause income inequality?

Do student loans cause income inequality?

Engineering Professor - complains about the destructive effects of capitalism requiThe distribution—and redistribution of income—is back in the news. The Economist reported on study of the persistence of income distribution from generation to generation, which generated some discussion.

Then, Gary Becker and Richard Posner jumped into the debate with some often overlooked observations.  Judge Posner, however, flag a growing problem that is just getting some attention:

And it must be borne in mind that some programs that purport to reduce inequality, such as the federal student loan program, may well increase it, by imposing debt burdens disproportionate to the value of the education that they finance.

Seems only a few years ago, the discussion of higher education focused only on the benefit side: How much more money will you earn with a BA, MA, or Ph.D.? Now, the discussion starting to turn to the costs: Will the bump in income more than offset the additional cost of debt?

Do student loans cause income inequality? | Economics International Blog.

Enhanced by Zemanta
Similar posts

1 Comment

  1. March 18, 2013    

    It’s time we did something about sky-rocketing college costs and the huge federal aid programs that support them. My daughter is a junior at a major university. Although she is a pre-med student, she is forced to take BS courses in diversity, film appreciation, women’s studies, etc. Eliminating the chaff would allow colleges to hold the line on costs while enabling graduates to earn degrees that will help them earn enough to pay back their loans.

This site sponsored by:

YOU! Your message could reach thousands of online consumers. Click CONTACT to inquire about advertising rates.

Paid advertisement

  • Washington’s Mass Timber Opportunity May 26, 2016
    The post Washington’s Mass Timber Opportunity appeared first on Washington State Wire.
  • Regional Councils Prepare Workforce Plans for 2016-2020 May 25, 2016
    The post Regional Councils Prepare Workforce Plans for 2016-2020 appeared first on Washington State Wire.
  • Finally A Primary. Why Vote? May 24, 2016
    Primary election Day, Sort of It’s a great day for Washington citizens. They get to have a primary. A presidential primary. It’s not Iowa, or New Hampshire or New York, but not just because it’s late in the spring. Don’t look for CNN or Fox News satellite dish feeds popping up at the Secretary of […]
  • Today’s Top 3 International Stories: Syria, Libya & Uganda February 23, 2016
    1) The U.S. and Russia have come to a decision on a ceasefire for Syria, which will include all warring parties except the two largest terrorist blocks, Al-Nursa and ISIS. Previous agreements to stop violence and provide aid have failed to stay in place. Sec. of State John Kerry said if the current deal fails […]
  • Today’s (Late) Top 3 International Stories: Bahrain, Libya & Russia February 18, 2016
    1) On Sunday, four American members of the press were arrested in Bahrain, while covering protests marking the anniversary of Bahrain’s 2011 Arab Spring uprising. Family members now report that on Tuesday, Bahrain released Anna Day and her camera crew after being interrogated. They have left Bahrain. The government claims the four participated in an […]
  • Today Top 3+ International Stories: Egypt, Mexico, France Plus Syria February 12, 2016
    1) In Egypt, thousands of doctors in Cairo turned out to protest after reports circulated that two doctors at a hospital in the capital had been beaten by police. It is not clear why the doctors were targeted, but it could be because they treated or sympathized with dissenters in opposition to former military leader […]
  • Columbus Wins $90 Million Burden June 28, 2016
    Columbus, Ohio won the competition for a $40 million “smart transportation” grant from the federal government (plus $10 million from Paul Allen). The city must match this with $90 million in local funds, so it is questionable who is the real winner: Columbus or the cities that applied but didn’t win. Columbus’ application is somewhat […]
  • Class Consciousness June 27, 2016
    In a reversal of stereotypes, “Democrats have become a party of the wealthy” admits Fredrik deBoer in the Washington Post. Meanwhile, Republicans–much to the chagrin of some Republican “elites”–have become a party of the working class. The Antiplanner was reminded of this when I saw a report saying that 29.4 percent of Americans were now […]
  • Honolulu Rail More Boondoggly Than Ever June 24, 2016
    The Federal Transit Administration’s latest estimates suggest that the Honolulu rail line now under construction could cost nearly $10.8 billion, or more than twice the $5.1 billion originally promised. That’s the “highest possible cost” calculated by its estimation process, while the “likely range” is $7.2 to $8.0 billion. However, two years ago, the highest possible […]