If Kerry has his way, the price of an abortion will increase dramatically, because Kerry wants the government to pay for them.
For years I’ve maintained that the ridiculous cost of a college class is the fault of the government’s insane college assistance program. Providing funding for the difference between what a student can afford and what a college charges is a salesman’s dream come true.
Imagine if the government did the same for homes. Say I make $75,000 a year and I can borrow up to $250,000 for a house. I want to buy your house, because, by today’s standards, it’s a $250,000 home. But you know the government will pile on any amount I need to make up the difference. You’d be a fool to charge me $250,000. Charge $500,000. $1,000,000. Whatever I’m willing to borrow.
Under such forulae, prices for goods and services reflect the willingness of buyers to borrow, not the perceived value of the good or service itself.
Notice that the two areas of life in which some outside entity appears to be paying the differenc between the asking price and the offer price–healthcare and eduction–are the two segments of the economy that grow 2-5 times faster than the general inflation every year. It’s not a coincidence.
The cost of college tuition has increased at twice the rate of inflation for most of my life, according to the federal government.
Year College Inflation General Inflation Rate Ratio 1958-1996 7.24% 4.49% 1.61 1977-1986 9.85% 6.72% 1.47 1987-1996 6.68% 3.67% 1.82 1958-2001 6.98% 4.30% 1.62 1979-2001 7.37% 3.96% 1.86 1992-2001 4.77% 2.37% 2.01 1985-2001 6.39% 3.18%