Reading Questions – Mark Markov 4/3

The system or “non-system” of financial support for higher education in the United States is evidently in need of great change. However, due at least in part to its complexity doing so through the inside is like untying the Gordian Knot. Is it time to cut the knot? Should there be drastic reform?

Tuition rates have been increasing at rates that are way above inflation. There are many explanations for this, including the need for new equipment, personnel to handle it, rising wages of professors,etc. However, the rate of the increase is such that it is possible that some of the money is not being used in the best fashion. Do you think that there is rent-seeking? If so, where?

Could the increasing tuition rates be viewed as a bubble from the economic lens? If so, what happens if it bursts? Is it and should it be artificially kept together?

Johnstone (2011), argues that the financial situation of higher education is similar across the world (in terms of measuring productivity, faculty size, ect vs tuition). Is there something to learn from these places? Is there something to copy?

Education statistically leads to higher wages. Should it? Do all of the professionals of today need the degree that they received to do their work? Are too many people attending college?