What do these two charts below have in common? They relate the affordability of two major household expenditures that are heavily subsidized by the federal government. When something is subsidized heavily, its price will rise much, much faster than supporting incomes. Inevitably this relationship can't continue, and the "bubble" bursts. We're still seeing the effects of that ripple through the economy. What do you think will happen to tuition prices when the artificial support eventually causes that to burst?
And more generally what will happen when the bubble in overall government spending deflates? Why does government think this is any more sustainable than the bubble it created in housing and college tuition. There is a lot of wishful thinking in Washington, but economics eventually intrudes.
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