Same reason houses are so expensive now. 30-year mortgages allow people to pay ridiculous multiples for the exact same homes that used to cost just one or two year's salary before such mortgages were commonplace. Sucks for anyone wanting to pay cash & stay out of debt.
When I went to a school in the U. of Texas system from 1977 to 1981, tuition was $50 per semester hour, $750 for 15 hours, didn't need a loan for that. When the Federal government guarantees student loans, schools both private and public will make out like bandits getting money from the Federal government, and the more they ask for the more they get. Better to back to heavily subsidized rates like I had. Today that would be $125/sem. hour, so a 15 hour semester would cost $1,875.
Another cost increasing factor is all of the nonsensical electives and remedial courses that are tacked on to the core major classes. I'm really not sure which is a greater help to me being a good engineer...my Interpretive Dance class or my two PE classes...
Peter, your views are always so refreshing and correct. I really like hearing your perspective on how these things like the cost of education or health care are distorted by government intervention. Please keep making these videos on a regular basis, they are very valuable. Maybe put out a "Best of Peter Schiff" video/DVD at some point and give them out at your presentations? Just an idea.
It's amazing to me how comprehensive Peter's understanding of the situation is! I don't see how anyone who understands what he says will disagree. I recommend watching twice if you don't get it all the first time. How this man can have any trouble wining the senate seat is a mystery to me.
The University where I live has lifted a tuition freeze. Now, funding to universities by the government will increase to 7%, up from 5%. Supporters of the freeze say that it reduces barriers to a post-secondary education by low-income families. However, studies suggest that early family influence, not income, is a better determinant in whether or not high school students will pursue post-secondary education.
Peter - One of your best blogs to date. I've heard your arguments on this topic before and am in 100% agreement. Imagine a politician saying to the voters that to help the students the government is going to stop student loans all together...It will be quite the sight!!! I hope you get your chance!!!!!!
After I watch them, I feel like blood is going to shoot out of my eyes. My teeth are going to crack from my jaw pressure, and my muscles are going to pull away from my bones. GOVERNMENT...THOSE BASTARDS! Good research Congressman Schiff. Keep the faith.
Think of this video this way. You want to go to a Broadway show. Tickets are $100 each. The theater fills to capacity every night and more people still want to go. Some will be willing to sell and buy tickets for more than face value, scalping. Now say the show has empty seats every night. To fill the seats the theater will sell those tickets at a discount since the cost of the show remains constant. In a free market, if seats start to run empty, prices will come down. Same with airlines.
He makes some great points here. Similarly, my grandpa immigrated here in the 50s with nothing but $100 and a suitcase of clothes. He was able to pay his way through a good, private college working regular summer/after school jobs. Nobody could come close to doing that today; it's essentially been made to where you can't really go to college unless your parents have saved up enough money over time, or else you're basically forced to take student loans and leave college with $100,000 of debt.
All I can say is is a Thomas Jefferson quote "A government big enough to give you everything you want, is strong enough to take away everything you have." - Thomas Jefferson
As a chair of feminist studies department and adjunct professor of social fairness studies department, and as a president of college association lobby I ardently protest this incideous talk!
LOL, Love it, I watched a 42 minute cartoon on the internet (which they now want you to pay for it) that taught me how money was created and how fractional reserve banking works. I stopped worrying about the bankers taking over the world after I saw that. It's not only fraudulent but very unsustainable during a Depression, it falls apart. It just goes to show that when people want to learn, they can do a better job of teaching themselves than centrally planned education.
A lot of the GIs whom the GI Bill was written for were conscripts, too, so they were being compensated for time and opportunity costs that were TAKEN from them.
Well said Peter! I am an American graduate student here in Poland and one of the primary reasons I chose to go overseas is because of the cost. My entire MA program (two years) cost me only 4500 euro! That's a little over 1100 Euro/semester and it includes books! I am paying for my room/board and tuition from savings from my first job after college. Good luck being able to do that in the States. I would have to go into debt!
As Peter mentioned, with larger universities and more students, you have economies of scale. Those expenses, which tend to not increase significantly with student load and remain mostly fixed, are divided among more and more people, making it cheaper.
Yes, some class sizes are smaller and there are more of them. Look at what colleges were many years ago. They were simpler with infrastructure that dwarfs todays college campuses. There are so many more avenues of study and the facilities are enormous. Look at football stadiums and other sports complexes at Unis today. They rival what we would have seen in the past for professional sports teams. The staff sizes for these mamouth institutions are larger than ever before.
These numbers are absolutely terrifying. I never knew it was that shockingly obvious. The figures about having to work 30 days or whatever to go to Yale for a year seems like a pipe dream. Wow...
I am currently putting myself through university and he is right it is absolutely terribly hard to do. i'm exhausted all the time and over 10k in debt.
TODAY Yale is at 67k tuition, wow! Thought 2010 36k was crazy. Absolutely disgusting as I am currently three years into my tuitions in the 20's. All of what was posed to be good is only good for the institutions and governments and sucks us lower in middle class.
What would be interesting to see would be a similar comparison with basic healthcare costs, like cost of a visit to a GP or treatment for a broken leg -- well something that had equivalent medical treatment in the past (one cannot compare cost of using an MRI machine, but diagnosing a cold or putting on a cast is similar).
Peter Schiff is right. Sad thing, is will the constituents of Connecticuit really get hear his message? How many of those people use the internet and are truly informed? Government has to be reigned in. My greatest fear is everyone will be working for the Government.
@turtleblues66 : Schiff is definitely NOT a neocon, drop the label, open your ears, and think independently. This man has some great ideas and is an expert in modern economics.
Partially correct. The reason why people like your father were able to go to college was also that the government paid most if not all of the tuition for public universities. For instance, imagine going to UC Berkeley right now for about $250 per year because the government pays the rest for all students. The reason college is so expensive is that government has significantly CUT direct spending on tuition AND replaced it with student loans. It is the WAY government is involved.
the biggest issue is how government guarantees (and easy credit) drive up the prices on EVERYTHING not just education. They can charge so much for a new car because people are able to borrow enough money to finance that car. The house I live in was built in 1959. It cost about $50,000 at the time. This same house could sell for 200K easy today. Is the house BETTER today than in 1959? No. They can get away w/ charging 200K for a 50K house cuz people can borrow for it. Burn the banks!
if they wanted to compensate those people who served in the world war then give them actual money.. don't force them to give that money to some college..
The US spends more per capita on health care than every other developed nation that has universal health care: US: 16% of GDP Canada: 10.1% of GDP, covering all its citizens, with no bubble to inflate. Life expectancy in Canada is 2 years higher than in the US. When you don't have to pay for a visit to the doctor, you're more inclined to seek early diagnosis and preventative care, when the disease is cheaper and easier to treat. No claims to fill out, so processing costs are much lower.
TylerNull, MERS is the 'silent assassin' for Fannie and Freddie. MERS was created by the mortgage industry to "streamline" mortgages by undermining State & Civil Statues that require the "recording" of paper mortgaes. As a result, MERS is currently in the process of "Foreclosing" on Homeowners despite the obvious fact that they are not in possesion of mortgage (note) itself. MERS & Pretender Lenders seek to be credited with a "touchdown" despite not being in possesion of the "football".
@jasowong76 Yes, they initially did try to raise tuition to protect salaries and programs;however, in the long run they have to match tuition with what student's can afford to pay or they go broke.
Support everything Schiff said here. Interestingly here in the UK where the education system for university has some credentials, the government put a cap on UK residents going to university at a cost of about £3,300 a year. I've no idea what the cost in the US is, but at a cost of about $5000 a year, it really is probably a lot lower than you think for more or less the same standard. Before someone bring up the point, yes, I think this will eventually lead to a sloppy education system.
they already do that its called private vs. public, but like you pointed out before a private degree isn't necessarily more valuable than a public degree yet they still have higher prices.... and there would still be competition if there were a reasonable cap
this was very enlightening. I wish all Republicans spent the time to explain their positions like this; it makes it easily digestible and understandable.
Schiff makes too much sense.
Absolutely he does.
Peter Schiff for president
Mr.Schiff This is one of the best videos i have seen on college tuition ever!!
I Totally agree
Please run for POTUS in '16 with Ron.
Yale tuition is now $60,000. Its double in the 10 years since I recorded this video!
columbia will soon require >$6000 just to take calculus lmao
Same reason houses are so expensive now. 30-year mortgages allow people to pay ridiculous multiples for the exact same homes that used to cost just one or two year's salary before such mortgages were commonplace. Sucks for anyone wanting to pay cash & stay out of debt.
OMG BeCkY I'll never own a home. Renting forever is the way to go
When I went to a school in the U. of Texas system from 1977 to 1981, tuition was $50 per semester hour, $750 for 15 hours, didn't need a loan for that.
When the Federal government guarantees student loans, schools both private and public will make out like bandits getting money from the Federal government, and the more they ask for the more they get.
Better to back to heavily subsidized rates like I had. Today that would be $125/sem. hour, so a 15 hour semester would cost $1,875.
Fascinating Peter.
I NEVER thought of it that way.
Thank you VERY much for explaining that.
Happy Halloween.
Peter Schiff is a real patriot, honestly thanks for what you do.
Another cost increasing factor is all of the nonsensical electives and remedial courses that are tacked on to the core major classes. I'm really not sure which is a greater help to me being a good engineer...my Interpretive Dance class or my two PE classes...
pe lmfao
that shit is a scam marketed as "well-roundedness"
Peter, your videoblog is just amazing.
Schiff is an absolute genius! Excellent video. Thanks again, Professor Schiff.
Peter, your views are always so refreshing and correct. I really like hearing your perspective on how these things like the cost of education or health care are distorted by government intervention. Please keep making these videos on a regular basis, they are very valuable. Maybe put out a "Best of Peter Schiff" video/DVD at some point and give them out at your presentations? Just an idea.
I didnt know that the government guaranteed student loans. I have learned so much from mr. Schiff.
It's amazing to me how comprehensive Peter's understanding of the situation is! I don't see how anyone who understands what he says will disagree. I recommend watching twice if you don't get it all the first time. How this man can have any trouble wining the senate seat is a mystery to me.
Peter Schiff always makes sense.
Excellent, I couldn't have said it any better. Thanks for posting.
mind. blown.
Thank you Peter, great video.
Awesome speech, I learn more from Schiff in a You Tube video about economics than I learned in 4 yrs of college.
Thank you for the insight.
The University where I live has lifted a tuition freeze. Now, funding to universities by the government will increase to 7%, up from 5%. Supporters of the freeze say that it reduces barriers to a post-secondary education by low-income families. However, studies suggest that early family influence, not income, is a better determinant in whether or not high school students will pursue post-secondary education.
Excellent and informative once again.
Peter Schiff is EXCELLENT!!!
Well said Peter I couldn't agree more!
Peter - One of your best blogs to date. I've heard your arguments on this topic before and am in 100% agreement. Imagine a politician saying to the voters that to help the students the government is going to stop student loans all together...It will be quite the sight!!! I hope you get your chance!!!!!!
G'dam Peter Schiff. You're a freakin' champion sage of our age.
Well put Mr. Schiff.
Right on Peter, as always :-)
man schiff you are so good at explaining this stuff i think about it but i do not know how to explain it!schiff is the man
great video very informative. thank you.
Simply Awesome!
After I watch them, I feel like blood is going to shoot out of my eyes. My teeth are going to crack from my jaw pressure, and my muscles are going to pull away from my bones.
GOVERNMENT...THOSE BASTARDS!
Good research Congressman Schiff. Keep the faith.
Out of all the economists I've heard, you sir, make the most sense. Respect.
from memory, the von mises institute explains this topic in depth - showing gov't intervention drives up tuitions by leaps & bounds.
fucking hero
Think of this video this way. You want to go to a Broadway show. Tickets are $100 each. The theater fills to capacity every night and more people still want to go. Some will be willing to sell and buy tickets for more than face value, scalping. Now say the show has empty seats every night. To fill the seats the theater will sell those tickets at a discount since the cost of the show remains constant. In a free market, if seats start to run empty, prices will come down. Same with airlines.
thank you, very good information
He makes some great points here. Similarly, my grandpa immigrated here in the 50s with nothing but $100 and a suitcase of clothes. He was able to pay his way through a good, private college working regular summer/after school jobs. Nobody could come close to doing that today; it's essentially been made to where you can't really go to college unless your parents have saved up enough money over time, or else you're basically forced to take student loans and leave college with $100,000 of debt.
Thanks for the lesson peter
Great lesson of economy Peter!!!
All I can say is is a Thomas Jefferson quote
"A government big enough to give you everything you want, is strong enough to take away everything you have." - Thomas Jefferson
As a chair of feminist studies department and adjunct professor of social fairness studies department, and as a president of college association lobby I ardently protest this incideous talk!
EXCELLENT VID
This is a very interesting point. I never considered student loans from this point of view before. Very good! It's making me rethink a lot of things.
Would be nice if he could get into congress and make a positive impact. God knows we need more people like him.
you are 100% right
make more videos on this subject
GREAT Video
GREAT VIDEO!!!!!!!!!
I should show this to my son.
He is attending university of Toronto and his tuition is outrageous.
beautiful articulation of the free market
LOL, Love it, I watched a 42 minute cartoon on the internet (which they now want you to pay for it) that taught me how money was created and how fractional reserve banking works. I stopped worrying about the bankers taking over the world after I saw that. It's not only fraudulent but very unsustainable during a Depression, it falls apart. It just goes to show that when people want to learn, they can do a better job of teaching themselves than centrally planned education.
Which is why I gave the example of the international products which aren't tied to any one country.
Exactly!!!! People also don't realize they could succeed completely without college
A lot of the GIs whom the GI Bill was written for were conscripts, too, so they were being compensated for time and opportunity costs that were TAKEN from them.
i loved this!!! thank u!!! u r a smart man!!
i work full time school full time stil cannot afford college--im exhausted and want to collapse
Good point-great video, I am voting for Mr. Schiff
Well said Peter! I am an American graduate student here in Poland and one of the primary reasons I chose to go overseas is because of the cost. My entire MA program (two years) cost me only 4500 euro! That's a little over 1100 Euro/semester and it includes books! I am paying for my room/board and tuition from savings from my first job after college.
Good luck being able to do that in the States. I would have to go into debt!
Thanks for the explanation, Peter.
How is this not obvious to everyone?? Remember, credit diverts production and education is no exception.
1+1= 2
I wish some one who thinks like Peter would run for senate in New Hampshire..Peter another brilliant analogy..
great great Great video!!!
As Peter mentioned, with larger universities and more students, you have economies of scale. Those expenses, which tend to not increase significantly with student load and remain mostly fixed, are divided among more and more people, making it cheaper.
Yes, some class sizes are smaller and there are more of them. Look at what colleges were many years ago. They were simpler with infrastructure that dwarfs todays college campuses. There are so many more avenues of study and the facilities are enormous. Look at football stadiums and other sports complexes at Unis today. They rival what we would have seen in the past for professional sports teams. The staff sizes for these mamouth institutions are larger than ever before.
Excellent explanation Peter. Very logical. My girlfriend needs to watch this video.
These numbers are absolutely terrifying. I never knew it was that shockingly obvious. The figures about having to work 30 days or whatever to go to Yale for a year seems like a pipe dream. Wow...
I am currently putting myself through university and he is right it is absolutely terribly hard to do. i'm exhausted all the time and over 10k in debt.
By any of that I meant those things they didn't have in the 19th century that Schiff just leaves out, like MRIs, particle accelerators, etc.
This makes a lot of sense, I never though of it like this but, this would explain why it's so expensive when things naturally get cheaper.
TODAY Yale is at 67k tuition, wow! Thought 2010 36k was crazy. Absolutely disgusting as I am currently three years into my tuitions in the 20's. All of what was posed to be good is only good for the institutions and governments and sucks us lower in middle class.
Got it. Thanks.
I am disgusted that any time I try to explain this to most of the people I know they don't care.
What would be interesting to see would be a similar comparison with basic healthcare costs, like cost of a visit to a GP or treatment for a broken leg -- well something that had equivalent medical treatment in the past (one cannot compare cost of using an MRI machine, but diagnosing a cold or putting on a cast is similar).
Common sense is so simple that people think there must be some scam, so they repel from common sense.
SCHIFF IS THE MAN!!!!!!
"The financial meltdown of 2008 demonstrated beyond any doubt that banking is thoroughly controlled by the government." it's the other way around...
Peter Schiff is right. Sad thing, is will the constituents of Connecticuit really get hear his message? How many of those people use the internet and are truly informed? Government has to be reigned in. My greatest fear is everyone will be working for the Government.
How are we going to stop this Government from spending?
Its insane.
@turtleblues66 : Schiff is definitely NOT a neocon, drop the label, open your ears, and think independently. This man has some great ideas and is an expert in modern economics.
Partially correct. The reason why people like your father were able to go to college was also that the government paid most if not all of the tuition for public universities. For instance, imagine going to UC Berkeley right now for about $250 per year because the government pays the rest for all students.
The reason college is so expensive is that government has significantly CUT direct spending on tuition AND replaced it with student loans.
It is the WAY government is involved.
the biggest issue is how government guarantees (and easy credit) drive up the prices on EVERYTHING not just education.
They can charge so much for a new car because people are able to borrow enough money to finance that car. The house I live in was built in 1959. It cost about $50,000 at the time. This same house could sell for 200K easy today. Is the house BETTER today than in 1959? No. They can get away w/ charging 200K for a 50K house cuz people can borrow for it. Burn the banks!
We have the popular notion of 'brand' re Yale, something thats mushroomed the last 50-80 years. Also increased demand for specialised knowledge.
Wow, I never knew this!
this man.....this man is so smart....it creeps me out just listening to him. I love this guy, SCHIFF FOR SENATE!!!!!
your right
if they wanted to compensate those people who served in the world war then give them actual money.. don't force them to give that money to some college..
Peter Schiff nailed the flaws spot on.
The US spends more per capita on health care than every other developed nation that has universal health care:
US: 16% of GDP
Canada: 10.1% of GDP, covering all its citizens, with no bubble to inflate. Life expectancy in Canada is 2 years higher than in the US.
When you don't have to pay for a visit to the doctor, you're more inclined to seek early diagnosis and preventative care, when the disease is cheaper and easier to treat. No claims to fill out, so processing costs are much lower.
TylerNull, MERS is the 'silent assassin' for Fannie and Freddie. MERS was created by the mortgage industry to "streamline" mortgages by undermining State & Civil Statues that require the "recording" of paper mortgaes.
As a result, MERS is currently in the process of "Foreclosing" on Homeowners despite the obvious fact that they are not in possesion of mortgage (note) itself. MERS & Pretender Lenders seek to be credited with a "touchdown" despite not being in possesion of the "football".
@jasowong76
Yes, they initially did try to raise tuition to protect salaries and programs;however, in the long run they have to match tuition with what student's can afford to pay or they go broke.
Peter, can you recreate this video? I know you’re talked about it many times, but not in a single short video.
Absolutely correct.
Support everything Schiff said here.
Interestingly here in the UK where the education system for university has some credentials, the government put a cap on UK residents going to university at a cost of about £3,300 a year.
I've no idea what the cost in the US is, but at a cost of about $5000 a year, it really is probably a lot lower than you think for more or less the same standard.
Before someone bring up the point, yes, I think this will eventually lead to a sloppy education system.
Peter is right on point! And Yale endowment is $31 billion!! Can you say GREEDY!!
I wish I had seen this video in 2009 while I was in college taking out loans.
good video!
they already do that its called private vs. public, but like you pointed out before a private degree isn't necessarily more valuable than a public degree yet they still have higher prices.... and there would still be competition if there were a reasonable cap
this was very enlightening. I wish all Republicans spent the time to explain their positions like this; it makes it easily digestible and understandable.
I'm poor, a senior at a public university, and I've worked full time in order to pay for my $3500 / semester tuition.
Once again, great video peter. The way Peter explains it, anyone with half a brain can understand it.
Great video peter.