Tuesday, June 29, 2004
Since the last time someone proposed price controls for higher ed didn't go so well, the Kerry camp is being careful how this new proposal is portrayed. From the Chronicle article:
In a conference call with reporters on Monday, campaign officials said the idea behind the tuition plan was not to put price controls on colleges. Rather, the goal was to give institutions the money they needed since many states have been forced to cut spending on higher education because President Bush's tax cuts have reduced revenues for state governments.It doesn't matter what you call it, though. The economics are quite clear: Raise tuition above the rate of inflation, and you lose millions of dollars. Only if there were a very high number of students with highly inelastic demand could one go beyond the tuition rate listed. Just because you use a positive rather than negative incentive scheme doesn't make one price controls and the other not. Unfortunately, the Republicans Hopefully this idea dies the same death that haven't doen much better on this idea.
"States were making up for the gap by raising tuition," said Gene B. Sperling, an adviser to Mr. Kerry and a former economic aide to President Bill Clinton. "Senator Kerry does not support price controls."
UPDATE: He better work harder if he wants the Hispanic vote.