SHOCKING new study: Colleges respond to financial aid by raising tuition

The government promises kids financial aid or virtually unlimited loans to cover high college tuition and, as a response, colleges raise tuition. This is obvious. In fact, colleges would be stupid not to raise prices.

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money.cnn.com
Under Sanders, income and jobs would soar, economist says
Bernie Sanders' economic plan would create nearly 26 million jobs and increase median income by more than $22,000, according to University of Massachusetts Amherst economics professor Gerald Friedman.
By Tami Luhby

Median income would soar by more than $22,000. Nearly 26 million jobs would be created. The unemployment rate would fall to 3.8%.

Those are just a few of the things that would happen if Bernie Sanders became president and his ambitious economic program were put into effect, according to an analysis given exclusively to CNNMoney. The first comprehensive look at the impact of all of Sanders’ spending and tax proposals on the economy was done by Gerald Friedman, a University of Massachusetts Amherst economics professor.

Friedman found that if Sanders became president – and was able to push his plan through Congress – median household income would be $82,200 by 2026, far higher than the $59,300 projected by the Congressional Budget Office.

In addition, poverty would plummet to a record low 6%, as opposed to the CBO’s forecast of 13.9%. The U.S. economy would grow by 5.3% per year, instead of 2.1%, and the nation’s $1.3 trillion deficit would turn into a large surplus by Sanders’ second term.

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salon.com
In the age of all-American anger: Bernie Sanders, “The Big Short” & a nation that’s had it up to here
Nearly a decade after plutocrats exploded the economy, we're just as unequal as ever — and people are fed up
By Edwin Lyngar

We are always told that life isn’t fair, and most of us accept that truism. I have to be honest and tell my kids that they might not be the smartest, fastest, luckiest or richest people out there. That’s just how it goes. However, “fairness” isn’t the same thing as justice.

The biggest financial crime of my lifetime, the financial collapse of 2008, is a historic injustice that has gone unpunished. The people who caused it also profited from it. The plutocratic class, spanning from Wall Street to Silicon Valley,   manipulate politicians to get whatever they want, while the rest of us get almost nothing for our votes. This state of affairs is obvious to anyone who cares to look, and it’s the driving factor behind Bernie Sanders’ strong performance in Iowa. If this election becomes a referendum on that unaddressed outrage, Sanders can and should become the next president.

The housing collapse and subsequent bailout of Wall Street was a graft of Biblical proportions and an animating factor in my own political evolution from Republican voter to liberal. Trillions were spent bailing out banks, eventually making the financial class even wealthier, while the rest of us suffered job losses, declining asset prices and a reversal of hard fought fortunes. There was no reckoning for the kleptocracy.

Conservatives and liberals often agree about the stupidity and injustice of bailing out Wall Street, while leaving the rest of us hanging, but conventional politicians on both sides of the aisle have done nothing to rectify this historic wrong. I would add that this incident stands as Barack Obama’s greatest failure. Regular people paid the tab for the graft and corruption of Wall Street, and frustration and resentment have been brewing ever since, driving the rise of the Tea Party, Occupy Wall Street, Donald Trump and growing white mortality. Despite the greatest economic reaming since 1929, consumers and taxpayers have answered only with self-destruction and impotent rage, while our slimy, gutless and corrupt political class begs more campaign cash from the same people who caused the mess.

I just happened to catch “The Big Short” last week, which nicely rehashes why we should all be so upset at the people and institutions that screwed America. The film follows outsiders who saw the crash coming, and the audience is put in the backward position of wishing for the collapse to come. But even when the scheme collapses, the people who caused it get even more money in the form of free cash from bailouts and the fed.

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contrakrugman.com
Ep. 21 Did the Financial Crisis Occur Because the Fed Was Too Timid? | Contra Krugman
Krugman evaluates the claims of market monetarists, who blame the Fed for the crisis because its policy was allegedly too timid. Krugman doesn’t agree (and on that he’s correct!), and he also finds it weird that “free-market” economists would say the Fed “caused” the crisis by not intervening. Isn’t not intervening what free-market economists are supposed to favor?
All governments, however, are firmly resolved not to relinquish inflation and credit expansion. They have all sold their souls to the devil of easy money. It is a great comfort to every administration to be able to make its citizens happy by spending. For public opinion will then attribute the resulting boom to its current rulers. The inevitable slump will occur later and burden their successors. It is the typical policy of après nous le déluge. Lord Keynes, the champion of this policy, says: “In the long run we are all dead.”

But unfortunately nearly all of us outlive the short run. We are destined to spend decades paying for the easy money orgy of a few years. Inflation is essentially antidemocratic. Democratic control is budgetary control. The government has but one source of revenue— taxes.

No taxation is legal without parliamentary consent. But if the government has other sources of income it can free itself from this control. If war becomes unavoidable, a genuinely democratic government is forced to tell the country the truth. It must say: “We are compelled to fight for our independence. You citizens must carry the burden. You must pay higher taxes and therefore restrict your consumption.” But if the ruling party does not want to imperil its popularity by heavy taxation, it takes recourse to inflation.
— 

Ludwig von Mises, Omnipotent Government

And he’s using the word “inflation” as it was originally used and understood: an expansion of the money supply.

Surprise! Data shows job markets grinding to a halt in cities with recent minimum wage hikes

People who don’t understand economics will be thoroughly baffled by this new data. As it turns out, when salaries are based on anything but fair market value, job markets take a dive. Government bureaucrats and labor union lobbyists fail to understand this time and time again, and the people who stand in the picket lines demanding a higher wage don’t realize that they’re really killing their own chances of getting a job at all.

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