Hillary Clinton’s plan to make college free for low- and middle-income families does not address the most fundamental challenges in higher education. No matter who pays, universities have become costly and wasteful and do a poor job of equipping young people to earn a living.
In this century, college tuition and fees are up 149 percent, whereas health care and overall consumer prices have increased only 81 percent and 42 percent.
University presidents are quick to cite cuts in public funding for higher education. Since the financial crisis, states have reduced per student contributions by about 17 percent, but that has not kept university administrators from spending ever larger sums.
From 2007 to 2013, enrollment at state-sponsored institutions increased 12 percent, while outlays jumped by twice as much.
A year or two of training beyond high school or a college degree increasingly is required to obtain a decent paying job, because the number of routine positions – such as assemblers in factories and clerical workers – has generally stagnated.
Meanwhile, the demand for specialized technicians – such as those servicing factory automation equipment – and workers with executive skills and expertise normally associated with a college education – such as project managers and engineers – continues to grow.
President Obama has urged young people to extend their education beyond high school and to borrow to pay for it – outstanding student debt has reached $1.2 trillion. However, fewer than 40 percent of 12th graders are ready for reading and math at the college level.
This post was published at David Stockmans Contra Corner on July 15, 2016.
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