If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.
According to the Detroit News, plea for more college aid are intensifying:
Aditya Sathi pays $12,800 annually in tuition as a full-time University of Michigan student. If he had attended the university 10 years ago, his bill would have been $7,224 — or almost half of that.
The 77 percent tuition jump reflects similar increases at the state’s other 15 public universities after an estimated $1 billion cut in state support to higher education during the past decade. The reduction in aid accelerated during the recent recession when state revenues began to fall faster. Local lawmakers pulled back support to universities, leading schools to increase tuition.
As a result, Michigan ranks 39th in the nation for higher education support per student and 10th highest in tuition, according to a 2012 report by Business Leaders for Michigan, a group of chief executives and others.
With priorities soon to be set in the next state budget, Sathi is joining a growing number of voices urging state lawmakers to increase aid for higher education to ensure Michigan’s future prosperity.
“Education is a huge investment in the economy of the future,” said Sathi, 22, of Novi. “Students today are going to change the country tomorrow. Some fail to recognize that.”
As pointed out previously here at MCT, when the government intervenes in the economy by subsidizing higher ed by direct support to Colleges and Universities on one hand, then subsidizing student loans on the other, Colleges are insulated from market forces. They have zero incentive to control costs and even less incentive to provide a quality education to its students.
It sounds counter-intuitive, but the best thing we can do for higher education is letting the market do it job, forcing Universities to innovate and compete for potential students educational dollars.
One other very important point to our 22-year-old student, Aditya Sathi, is the real shortage in the labor pool today is Skilled Trades. While it is to be expected that our student doesn’t know about the shortage of skilled tradesmen, it is strange that our Business Leaders for Michigan don’t. What’s worse, is this shortage is only going to get worse as more and more skilled tradesmen retire and there are very few up and coming tradesmen to take their place:
MILWAUKEE (May 29, 2012) – ManpowerGroup today released the results of its seventh-annual Talent Shortage Survey, revealing 49 percent of U.S. employers are experiencing difficulty filling mission-critical positions within their organizations. Although slightly lower than the 52 percent of employers struggling in 2011, a significant percentage of total U.S. employers continue to face hiring challenges despite continued high unemployment. U.S. employers are struggling to find available talent more than their global counterparts, where 34 percent of employers worldwide are having difficulty filling positions.
According to the more than 1,300 U.S. employers surveyed, the positions that are most difficult to fill include Skilled Trades, Engineers and IT Staff, all of which have appeared on the U.S. list multiple times since the survey began in 2006.
Rather than politicians throwing more money at colleges, how about cutting businesses costs so they can go back to the future and maybe reinstate the old-fashioned apprenticeship programs.