04/12/2017

New York State Wants To Make Tuition 'Free.' Here Are 5 Reasons It Won't Be.

Aaron Bandler, Daily Wire

New York recently became the first state to offer tuition-free college to those in the middle class or below.

The law passed by the state legislature over the weekend provides those in the income brackets of $100,000 a year or below in 2017 with a scholarship to attend a state or city college for free; that number will rise to $110,000 in 2018 and $125,000 in 2019. The law does not cover the cost of housing or textbooks, and illegals will not be covered. 

"College is today what high school was 50 years ago," New York Gov. Andrew Cuomo (D) said on New York radio station AM 970. "If you're a young person who wants success and a career, a college education is necessary."

However, the concept of "free" college will actually be quite costly for the state of New York. Here are five reasons why.

1. Taxpayers will shoulder the increasingly heavy burden. The program is expected to cost $163 million in the first year alone; Tyler Durden noted at Zero Hedge that "like all other entitlements, [it] will only grow over time." New York already has the highest tax burden in the country, meaning that as the program expands, every taxpayer in the state will get whacked by onerous taxes.

2. Colleges will ultimately be forced to raise the cost of tuition even higher. It's a matter of basic economics: as demand increases, prices increase; eliminating college tuition for numerous people at the $125,000 income bracket and below increases demand; therefore, tuition costs will increase. There is already evidence to suggest that expanding the availability of federal subsidies increased the cost of tuition; back in July New York Times article examining Hillary Clinton's free college plan – which was similar to New York's new program – pointed to a New York Federal Reserve study that "looked at three different increases in federal subsidies in recent years and found that each had produced a significant increase in college tuition." 

The Times article also noted:

Under Mrs. Clinton’s plan, most students would not feel the pain of tuition increases. The government would pay their bills regardless. But that could make it easier for colleges to raise prices, as they would not need to fear a loss of customers.

The same logic would apply to New York's new program. 

Read full article



You May Also Like:

Reports: Kushner Had Multiple Undisclosed Conversations With Kislyak, Discussed "Back Channel" Comms Jennifer Van Laar, Townhall

The Real Reason Zuckerberg Supports A Universal Basic Income TDB, Zero Hedge

Obama Administration Transferred MS-13 Gang Members To Placement Centers Across The Country Warren Mass, New American

Poland Stands Up To EU On Forced Quotas: We’re Not Taking Your Migrants – Your Blackmail Won’t Work On Us Damien Cowley, The Gateway Pundit

Progressively Bankrupt Richard A. Epstein, Hoover Institution

Obama Attempts Government In Exile Wesley Pruden, The Washington Times

Report: Insurance Rates Could Skyrocket Under Border Adjustment Tax Americans For Prosperity

Memo To CBO: Obamacare Is Unsustainable Charles Hughes, Economics21

Paid Parental Leave Proposal Increases The Cost Of Employment And Burdens States Trey Kovacs, Competitive Enterprise Institute

LEFTISTS SILENT: CBO Confirms Repeal Of Obamacare SAVES BILLIONS Kelly Beasley, The BlackSphere

No, CEOs Don't Make 347 Times More Than American Workers Luka Ladan, Washington Examiner

Don’t Just Blame Sean Hannity For The Seth Rich Conspiracy Theory Robert Tracinski, The Federalist

Obama Lectures Trump Over Walls, Builds One Around D.C. Home Edmund Kozak, PoliZette

Confederate Monuments And Civil Discourse William Watkins, Independent Institute

For More go to the Home Page >>>

Search

Bookshelf

FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference

In Search Of History

Cambodia's Deadly Experiment

In the 1950s, students started gathering in Paris. They were reading Karl Marx. They were forming book clubs. They were trying to come up with a better version of society. One that moved away from the division of labor. One that moved away from the capitalism in the big cities that they so despised. ... One of those students would change his name to Pol Pot. He and his colleagues formed a new political party, a takeover in Cambodia. They called themsevles the Khmer Rouge. ... Under Pol Pot and the Khmer Rouge, one out of four people in that country died in less than four years. 

-- Matt Kibbe,

Shadow Stats Snapshot


FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.4%
    FreeMarket Central Shadow Stats: 22.1%
  • Inflation:
    FreeMarket Central April Year-to-Year: 2.20% (CPI-U*)
    FreeMarket Central Shadow Stats: 10.0%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]