microeconomics, usaFor the last 30 years, the price of a college education has been going up faster than inflation. Why?
On the demand side, the return on human capital means that investing in education gives higher returns on investment. In addition, increased government benefits (guaranteed student loans) causes even more demand. But, that should just mean an increase in supply.
Is the problem on the supply side? Are their costs going up? Are we having to pay more to professors to prevent them from going to private industry? Or is there a branding issue? There are a fixed number of Ivy League schools, or a fixed number that win NCAA championships.
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