The Unsustainable Higher Education Bubble; It’s Showing Signs Of Stress, Has The Deflation Started?

Mark Perry:

It’s been widely reported now that the U.S. has a serious and unsustainable “higher education bubble,” not unlike the unsustainable housing bubble in the U.S. that eventually crashed and resulted in a housing meltdown, mortgage tsunami, a wave of foreclosures, and a global financial crisis. The chart above illustrates that the ever-inflating higher education bubble with ever-increasing costs for college tuition and education supplies is starting to make the housing bubble look almost inconsequential by comparison.
The CPI for college tuition has increased almost 12 times since 1978, compared to the 3.5 time increase in overall consumer prices, and the 4.4 time increase in home prices at their “bubble peak.” What the two bubbles have in common is that they have both been fueled by political obsessions: one with homeownership and another with college education. And with those political obsessions comes the government-sponsored coerced taxpayer funded assistance that creates the “politically-motivated air” to inflate the bubbles to unsustainable levels: government taxpayer- subsidized or government taxpayer-provided credit at below market rates to borrowers who wouldn’t qualify for credit from private borrowers.