The Scandal of Higher Education Costs

With three teenagers and three college educations to pay for in the next decade, the scandal of higher education cost inflation is hitting me right where I live.   In the news over the weekend was this story:

The cost of obtaining a university education in the U.S. has soared 12 fold over the past three decades, a sign the educational system is in need of reform, according to lawmakers in both parties.  

The CHART OF THE DAY shows college tuition and fees have surged 1,120 percent since records began in 1978, four times faster than the increase in the consumer price index. Medical expenses have climbed 601 percent, while the price of food has increased 244 percent over the same period.

Here's the chart:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And here's an attempt at an explanation of why this divergence is happening that seems persuasive to my admittedly right-wing sensibility:

 

 

 

I have a lot of thoughts on this subject, but I'll share them in a separate post.