Agreed just like subsidized student loans cause tuitions to skyrocket.
There is one solution the one way to provide subsidies without causing increased costs and that is if you only subsidize providers whose costs are less than the average cost for whatever field they're in. Then what happens is all the providers are forced to keep lowering their costs to try to be one of those that is below the average cost so they can receive the subsidy and thus they receive the influx of the majority of the patrons because most people will be using subsidized whatever.
This is why Medicare is such an important and effective regulator of costs because despite bitching about it all hospitals and doctors want all that Medicare patient volume so they continue to keep their costs down and in compliance with Medicare because they're simply aren't enough people who could afford inflated prices to make up for the profit they would lose if they lost all those Medicare patients because they charged too much for Medicare to allow them to be receiving Medicare patients.
this could work with the student loan program in other words all it would change would be needed is the student loan program would say no one can get a Pell Grant no one can get a guaranteed student loan and no one can get any of the other tuition subsidies the government offers unless the school they're going to charge us less than half the average going right for tuition in america. Suddenly you would see Harvard in all the ivy leagues and everybody else race to the bottom in terms of providing their tuition. Because they all need those students that can only afford to go to school if they have those student loans and student subsidies..
Crackinjokes 1 points 13 hours ago
Agreed just like subsidized student loans cause tuitions to skyrocket.
There is one solution the one way to provide subsidies without causing increased costs and that is if you only subsidize providers whose costs are less than the average cost for whatever field they're in. Then what happens is all the providers are forced to keep lowering their costs to try to be one of those that is below the average cost so they can receive the subsidy and thus they receive the influx of the majority of the patrons because most people will be using subsidized whatever.
This is why Medicare is such an important and effective regulator of costs because despite bitching about it all hospitals and doctors want all that Medicare patient volume so they continue to keep their costs down and in compliance with Medicare because they're simply aren't enough people who could afford inflated prices to make up for the profit they would lose if they lost all those Medicare patients because they charged too much for Medicare to allow them to be receiving Medicare patients.
this could work with the student loan program in other words all it would change would be needed is the student loan program would say no one can get a Pell Grant no one can get a guaranteed student loan and no one can get any of the other tuition subsidies the government offers unless the school they're going to charge us less than half the average going right for tuition in america. Suddenly you would see Harvard in all the ivy leagues and everybody else race to the bottom in terms of providing their tuition. Because they all need those students that can only afford to go to school if they have those student loans and student subsidies..