I am sure we all know about rising college tuition. We have all heard about stories where college students are either heavily in debt or working multiple jobs in order to pay for college. Although most people would agree rising tuition is bad, I believe there might be some positives coming from rising tuition. If we analyze the current situation with supply and demand curves of skilled workers, we will see that the increase in tuition might be beneficial for current students. Assuming tuition increases at the same rate, more and more people will rather work after high school instead of going to college. This causes a decrease in the supply of skilled workers as now less people have a college degree. As a result, in the new equilibrium for the skilled workers market, wages will go up. Therefore, rising tuition helps skilled workers. As current students, when they graduate and go look for jobs, they should see this effect through an increase in wages. Overall, rising tuition is becoming a huge problem in society and we need to address it immediately, but sometimes we need to analyze the entire picture before we settle into our conclusions.
http://www.nytimes.com/2011/11/30/education/duncan-calls-for-urgency-in-lowering-college-costs.html
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