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 13 other subscribers

Archives

Categories

Follow me on Twitter

March 2015
M T W T F S S
« Feb    
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

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

  • Top International Stories to Watch Today: Lithuania, Nigeria & Argentina February 27, 2015
    1) Due to fears of Russian aggression, Lithuania has reinstated compulsory military conscription. The Baltic region of Europe that borders Russia has placed a new priority on strengthening their military. The draft previously ended in 2008.   On Friday, Russia held military exercises just on the other side of the Estonian border. While both Estonia and […]
  • Top International Stories to Watch Today: Syria, Afghanistan, & Ukraine February 26, 2015
    1) More than 220 Assyrian have been abducted by ISIS, an airstrike campaign has started in the region. (Also, we now know who Jihadi John is.)   2) A car full of explosives ran into a NATO convoy in Afghanistan, targeting the Turkish envoy, at least one Turkish soldier died.   3) The United Kingdom will […]
  • World Class Hour on #FTRRadio with @astaroska! February 25, 2015
    Guest: Andrew Staroska   Nuclear Iran https://www.youtube.com/watch?v=d8VuxcQxXgg Secretary of State John Kerry will meet with Foreign Minister Mohammad Javad Zarif in Geneva this weekend to continue on-going nuclear negotiations. The Israeli government has expressed concerns over the talks, so U.S. national security advisor Susan Rice has invited her Israeli counterpart to the White House to […]
  • Back in the Air Again March 2, 2015
    The Antiplanner is in Washington DC today to participate in a debate over the Purple light-rail line–or, as I like to call it, the Purple Money Eater. In conjunction with this debate, the Maryland Public Policy Institute will release a detailed critique of the proposed low-capacity transit line; Antiplanner readers can download a preview today. […]
  • Will Apple Join the Self-Driving Car Race? February 27, 2015
    Apple is planning to put an electric car on the market by 2020. No, Apple is planning to build a self-driving car. No, it’s not. It would be stupid to do so. Rumors about Apple, which has the highest market capitalization of any company in the world, are an industry in itself, so the rumor […]
  • Faster, Cheaper, Safer, More Convenient February 26, 2015
    Smallter Faster Lighter Denser Cheaper, by the Manhattan Institute’s Robert Bryce, argues that human innovation will save the planet from climate change and other projected catastrophes. As the title suggests, most of that innovation has to do with making things smaller, faster, etc., but Bryce especially focuses on power density, that is, the amount of […]