EconAir

UPDATE. In the 15 years since I wrote this, college tuition continues to rise faster than the overall price index, admin costs continue to go up, and full-time faculty number are going down. But the most outrageous change is that as state and federal aid goes down, students are assuming much of the cost of college in the form of student loans. Many were from private colleges that were frauds; some have been closed down. Total student debt is around $1.8 trillion, more than credit card debt. About an average of $40,000 per borrower. A high percent are in arrears or default. And, unlike credit card debt, student debt does not disappear in a personal bankruptcy. Students learn a new,  scary lesson - about compound interest.  A report published on August 16, 2010, using the largest database of information on higher education (IPEDS), has concluded that a major reason for the rapid increase in the cost of higher education has been the increase in the number and cost of administrati...

OK, who do you fear more, big government or big business?   Historically, Americans saw a relatively small government with regulatory powers as a check on monopoly and big business.  But the rise of big government because of the Great Depression, World War II, the Cold War, and the Great Society changed that.  Americans had a choice.  There was a general consensus that we had to spend a lot of money for national and international security during the Cold War.  But the expansion of the social welfare state and environmental regulations changed attitudes towards the federal government.  The two largest programs of the social welfare state, Social Security and Medicare, have been financed by very large tax increases. These tax increases are somewhat offset by federal income tax cuts.   Since the 1980s, there has been a well-financed campaign to roll back the regulation of big business, espe...

Introduction The United States has been the world’s only superpower since the collapse of the Soviet Union in 1991.   In some ways it is more difficult to manage foreign policy without concentrating on one big rival. The United States is vastly stronger in military strength than any possible coalition of enemy forces.   But since 9/11 we are feeling less secure despite huge military and domestic security expenditures.   Our military and national security expenditures of around $1.1 trillion are greater than the military expenditures of next ten countries combined (and most are allies).   This is a consequence of a professional military, a result of eliminating conscription after the Vietnam War, and the highly technical (capital intensive) nature of American military forces and strategy.   There is almost no national debate on U.S. military interventions in other countries.   One reason is that most Americans have no direct involvement...