There are lots of things where we see correlation and assume causation, though there is none. The retirement of Chris Nolan from Batman movies, for example, correlates to really terrible D.C. comic book movies, but it really is not the causation. The rush to compete at the level of Marvel has more to do with it.
But one thing we do know between correlation and causation is that the abundance of student loans, debt forgiveness programs, and federal education grants has caused and directly correlates to the massive increase in college tuition. Colleges have no incentive to keep costs down because the federal government is making it easier and easier for students to go to college with cheap money now that gets expensive later.
Of course Bernie Sanders’ supporters are too stupid to realize that. They think if the government labels something “free,” that unicorns poop money and we all live happily every after. In that spirit, Hillary Clinton is proposing free college to get Bernie Sanders’ supporters on board.
A centerpiece of Clinton’s plan is an executive order that would give federal student loan borrowers a three-month break from making payments. During that window they would be able to consolidate their loans or sign up for other programs aimed at reducing their monthly payments. Those who are delinquent or in default would get “additional rehabilitation options,” the campaign said, though aides provided no details on those options.
Clinton is also seeking to eliminate college tuition at public, in-state institutions for families making $125,000 or less per year. The campaign said the policy would roll out gradually, first for families making $85,000 or less and increasingly the threshold by $10,000 annually through 2021.
As you can imagine, the proposal is heavy on free and light on where the money will actually come from. But we already know where it will come from — more taxes and fees on everyone else. It is economically unworkable, but Sanders’ supporters have no sense of basic economics and Hillary Clinton does not care.
If this plan were to be implemented, colleges would have every incentive to further increase college tuition rates, which already are increasing well above the rate of inflation. If they government is going to poop free money, why oh why should any college want to keep rates low?