The Real Reason College Costs So Much

I firmly believe that economic freedom is only achieved by navigating one path, that being, education.

To that end, I applaud President Obama and Secretary of Education Arne Duncan for their efforts to improve secondary education in our country via the Race to The Top.

President Obama is now laying out a new initiative to make college more affordable for those pursuing higher education. On the surface, who would be averse to making college education more affordable. But let’s dig a little deeper.

In doing so, I think we might gain a greater understanding as to whether Uncle Sam is more part of the problem than part of the solution to higher education being so exorbitantly expensive.

The WSJ highlights the work of Richard Vedder who has studied this issue extensively.

Mr. Vedder, age 72, has taught college economics since 1965 and published papers on the likes of Scandinavian migration, racial disparities in unemployment and tax reform. Over the last decade he’s made himself America’s foremost expert on the economics of higher education, which he distilled in his 2004 book “Going Broke by Degree: Why College Costs Too Much.”

I would only wish that we might have an open forum discussion and debate in which our President and Professor Vedder could engage each other. Vedder maintains that the president’s

 . . . plan addresses just “the tip of the iceberg. He’s not dealing with the fundamental problems.” College costs have continued to explode despite 50 years of ostensibly benevolent government interventions, according to Mr. Vedder, and the president’s new plan could exacerbate the trend.

To get the real ‘sense on cents‘ on this issue, I strongly recommend anybody interested in the cost of higher education to read Richard Vedder: The Real Reason College Costs So Much and then compare his points to those made by our president.

After reading the points laid out both by our president and the professor, I hope those from those both sides of the aisle will share thoughts and opinions on this most important topic.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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