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» The Ornery American Forum » General Comments » Answering Ted Cruz's valid question (Page 2)

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Author Topic: Answering Ted Cruz's valid question
Pyrtolin
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quote:
In fairness it's not the job of government to increase incomes, however, the government has gone out of its way to interfere in the financial markets, lending market, housing market, health insurance markets, employment markets and pretty much anything else it can plausibly (or implausibly) justify, which has created the environment where real income has been going down for everyone but the wealthy
That's the natural state of any market. All interference by representative government is specifically because that natural tendency needs to be offset though public action in order to provide sustainable income across the board. Every system collapses toward feudalism unless active effort is made to protect people from the exploitative practices that lead to it.
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Pyrtolin
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quote:
Originally posted by AI Wessex:
Is it the job of the government to increase incomes? Isn't that what business is all about? All government can do is control taxes.


It's also the governments job to create and spend money. Net private income is equal to the public deficit; the only way to increase incomes is for the federal government to spend more.

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Pyrtolin
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Honestly, the biggest driving factor of tuition has been top level income growth. The sticker price on tuition is purely what the school thinks it can get from the top buyers. It can, through internal "grants" effectively negate tuition as much as it wants for any given student. Only the top tier students and those that don't bother to try to negotiate with the school for aide come up paying the full price. (Orthose students that the school actually wants to try to price out)

On the other hand, the prime driver of actually needing to rely on tuition for funding has been stagnation in federal research and arts grants. On top of switching to a purely grant based federal tuition support system, instead of the current regressive tax/banking giveaway that are effectively the nature of the loan system, the best thing the federal government could do would be to issue institutional grants purely based on the merits of the applications presented and not applying any artificial caps to total available funding.

Most of the pathology comes from schools needing to try to use tuition as their primary source of funding instead of a supplement to just cover the difference between their core functions and classroom support; there's a lot of breakdown down because of the lack of research funding leaving them struggling to find ways to keep operating. (Not to mention huge losses of productivity as competitive grant writing has progressively eaten into useful research time)

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