Economics of Higher Education Subsidies
By Arnold Kling
I discuss the economics of government subsidies to higher education.
The end result is that even though government subsidizes higher education, and even though most economists believe that higher education enhances productivity, the government subsidies do not result in higher productivity. Simply throwing money at higher education has the effect of enriching the over-educated (faculty and administrators) while providing little or no benefits to the under-educated and to society at large.
For Discussion. Economists tend to think that subsidies to sports stadiums produce private benefits, not public benefits. Are state universities also a boondoggle?