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Student Loan Crisis

We have a crisis on our hands.

The Student Loan Crisis:

Government subsidies through student loans and grants have artificially inflated the cost of tuition in American higher education.  Similar to the housing bubble that was fueled by cheap and easy-to-obtain credit, student loans increase demand for degrees and inflate the price. Unlike the housing bubble however, student debt doesn't go away once you file for bankruptcy.    

 

Are Student Loans the Next Housing Bubble? by EconomicFreedom.org:

Related Freeman Articles

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Government Is Always the Answer, Even if Government Was the Problem

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The President's plan to further subsidize college just repeats the mistakes of the housing bust--but what matters is that it will buy him votes.

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Artificially low interest rates wreak havoc again.

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Thus just as inflation induces people to invest too much in longer term production processes at the expense of consumer goods, so subsidizing of college induces people to invest too much in the longer term production process and higher order human capital associated with higher education.

ARTICLE

Why on Earth Do We Have a Student Loan Crisis?

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NOVEMBER 01, 2008 by GEORGE C. LEEF

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The United States' corporate tax burden is the highest in the world, but innovators will always find a way to duck away from Uncle Sam's reach. Doug Bandow explains how those with the means are renouncing their citizenship in increasing numbers, while J. Dayne Girard describes the innovative use of freeports to shield wealth from the myriad taxes and duties imposed on it as it moves around the world. Of course the politicians brand all of these people unpatriotic, hoping you won't think too hard about the difference between the usual crony-capitalist suspects and the global creative elite that have done so much to improve our lives. In a special tech section, Joseph Diedrich, Thomas Bogle, and Matthew McCaffrey look at various ways these innovators add value to our lives--even in ways they probably never expected.
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