Margaret Spellings has recently made a statement which proves that she is, as is usual for the Bush administration, unqualified for the job she holds (Secretary of Education). She asked, why do college tuition costs outstrip inflation?
The answer is simple economics. The inflation rate reflects both the cost of goods and services which are subject to productivity improvements and those that are not. The two offset each other in a way that keeps the rate of inflation lower than it would have been in the absence of productivity improvements. Educational delivery. although new methods have been developed, has proven resistant to productivity improvements. When schools use large lecture hall classes taught by senior faculty, aided by recitation sections taught by graduate students, parents and students complain. When courses are taught via TV or the internet there are also complaints.
All of this leads to costs that outstrip the rate of inflation. The same holds true in the public schools where parents want smaller class sizes, more counselors and increased extra curricular activities.
If MS. Spellings does not understand these simple facts of Educational Economics, perhaps, she should give up administration and become a teacher of something that does not require economic understanding.
