Thursday, September 03, 2009

Explosion in Real Tuition

by Andrew Gillen

Tim Ranzetta points out that inflation was negative from July 08 to July 09, meaning that the nominal increases in tuition work out to be substantially higher in real terms.

By my calculations, it turns out that after adjusting for inflation, tuition and fees increased by 8.68% at public 4 year schools, and by 8.17% at private 4 year schools. To put those numbers in perspective, check out the graph below.*

The red and purple columns represent the real (inflation adjusted) percent increase at public and private institutions, respectively, for each year. As you can see, both of them exploded for the 2008-2009 year. Real tuition increased at private schools at double the next highest rate of the past decade, while the even higher increase at public schools was only surpassed once, in 2004. This represents a massive increase in the financial burden of college on students.

*Tuition data from here. For 08-09 data, I pulled the percentage increase from here (where the language indicated that they were reporting nominal increases, though that was not absolutely clear) and multiplied by the 07-08 values in the DES to get the implied 08-09 figures.


capeman said...

Gee, in a labor-intensive field like education, real charges go up faster than inflation. Just about exactly like dentists' fees.

This may be a problem for people to pay for, but it's not exactly a mystery why it's happening.

And yes, at the public university where I work, they jacked up tuition this year, a lot. After the legislature whacked the higher education budget to pay for things like unemployment benefits, K-12 schools, and state troopers.

And yes, the faculty expect to get paid, especially since enrollment is up, pay is basically frozen, and class sizes are going up.

Cowboy said...

capeman, you are truly an idiot's idiot and continue to demonstrate the need for organizations like CCAP. God knows it's more important to pay people like you who sit on their ass all day and play on the internet and bitch like a sissy then to fund K-12 education and police. If secretaries like you and faculty don't like the pay, they are free to cross state lines. And here again, you set the example for why no pay increase should be forthcoming.

Regarding unemployment: Unemployment is paid by businesses located in your state as a tax and goes into a state trust fund. Money is not moved from other budget categories to the UI trust fund. When the trust fund is exhausted unemployment ends unless the feds subsidize the trust (See: Social Security Act of 1935). Al-Obama's "stimulus" gave money to the state governments (not the private citizens who paid for it). In doing so, the "stimulus" (aka American Recovery and Investment Act) provided money to the state's trust funds for UI. My state (Montana) received $207M - even though they had $197M in the trust already. So get your facts straight. Or at least, try to get at least ONE fact and work from there.

You must work for the government because you have the same arrogant and uninformed predisposition to make claims that cannot be substantiated - pure unmitigated bullshit.

Also, do you EVER have good day? I mean, all you do is bitch and moan. You are so relentlessly negative about everything and you seem like a clinically depressed person. Did life deal you a bad hand? You need to pull the stick out of your ass, open your eyes, and choose to be content and open-minded instead of a self loathing, depressed whiner that has the temerity to lecture those who are much more knowledgeable and more studied on the issues then you.

I don't know why you try to lecture anyone at CCAP with your never-ending unthoughtful, unprincipled, and unsubstantiated attacks. You are a polemical hack.

~ said...

capeman, Baumol's Cost disease, the phenomenon you describe, is presumably in effect each and every year, and thus has great difficulty explaining the variations shown from year to year. Did professors just not need to get paid in 2008?

capeman said...

Cowboy, nice to hear from you, your usual well-reasoned comments. Talk about a sissy bitch! (Do you perhaps have a bit of an obsession with such things?)

How's your master's program at your state-subsidized public university going? Talk about a mixed-up guy!

Re higher ed finances: your level of knowledge is hilarious! You cold even give Daniel, even the Doc, some lessons.

Maybe after you finish your master's, you can get on at their Center and spend your whole life bashing public higher education.

Mister approximate: there are fluctuations from year to year. You can learn about it in Econ 101, or 201, or something. Random walks and all that. Good luck with your studies.

capeman said...

P.S. to mister approximate: re your question about 2008 -- you might ponder my remark above (my initial post) about local faculty pay freeze.

Cowboy said...

"Gee, in a labor-intensive field like education, real charges go up faster than inflation. Just about exactly like dentists' fees." - capeman

Here is where you make another huge bone-headed mistake that I have come to expect from a small-minded, angry, self-loathing, little sissy - absent of any self esteem.

You are comparing a not-for-profit (higher ed) with a for profit endeavor. In the case of the dentist, cost to customers can only be raised to what the market will bear. Your comparison is juvenile and quite embarassing.

I suggest you follow your own advice and bone up on Econ 101.

Just think, tomorrow you will have to wake up and face yet another depressing day in what is obviously a miserable existence.

Are you a "Caped Crusader"? Or do you dress up in a "Super Dumbass" uniform and run around town like a raving lunatic. Watch out for people with large butterfly nets!

capeman said...

cowgirl -- nobody will ever accuse you of being uncouth.

Here is the stupidest thing I've read this month:

"In the case of the dentist, cost to customers can only be raised to what the market will bear."

unlike higher education, where the cost can be raised to arbitrarily high levels?

Why are you in such a good mood?

Did you flunk out of your master's program or something?

Cowboy said...

"unlike higher education, where the cost can be raised to arbitrarily high levels?"

The answer to your idiotic question Super Dumbass is:


For God's sake, try to THINK!

My you are jealous about me earning an MS. It really bothers you doesn't it? Jealousy is truly an ugly emotion.

I have to be uncouth in order to stoop to the extremely low level where you find yourself as a lowly, loser, juvenile, hack. Also, I really get a kick out of your reaction(s). You're such a pushover and a sad sack. Ha-Ha!!