Sunday, April 10, 2011
The Washington Post Co. and the higher-education bubble
A new Hub Blog Rule of Price Bubbles: When an industry is suffering from escalating prices well beyond the rate of inflation, check to see if A.) the government is pouring ridiculous amounts of money into said sector and B.) corporations have their snouts in the trough. The Washington Post Co. has gotten caught with its snout in the trough. …
It’s not a bad piece by the Washington Post about its own corporate parent, though we all know it’s one of those stories the paper was ultimately forced to do because of pressures brought to bear by others. …
FYI I: The snouts of nonprofit higher-education institutions are also firmly in the government’s student-loan trough. Remember that higher-education prices were skyrocketing well before the advent of for-profit higher-ed companies. The nonprofits used to have the student-loan trough all to themselves. Why worry about operational expenses and prices when Uncle Sam keeps writing the checks?
FYI II: Health-care and housing are/were two other sectors that have seen massive infusions of federal dollars over the decades, boosting demand and prices charged by eager for-profit and nonprofit suppliers.
A new Hub Blog Rule of Price Bubbles: When an industry is suffering from escalating prices well beyond the rate of inflation, check to see if A.) the government is pouring ridiculous amounts of money into said sector and B.) corporations have their snouts in the trough. The Washington Post Co. has gotten caught with its snout in the trough. …
It’s not a bad piece by the Washington Post about its own corporate parent, though we all know it’s one of those stories the paper was ultimately forced to do because of pressures brought to bear by others. …
FYI I: The snouts of nonprofit higher-education institutions are also firmly in the government’s student-loan trough. Remember that higher-education prices were skyrocketing well before the advent of for-profit higher-ed companies. The nonprofits used to have the student-loan trough all to themselves. Why worry about operational expenses and prices when Uncle Sam keeps writing the checks?
FYI II: Health-care and housing are/were two other sectors that have seen massive infusions of federal dollars over the decades, boosting demand and prices charged by eager for-profit and nonprofit suppliers.
