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September 11th, 2011 at 8:04 pm
Thanks Ilene – good article, and the counterpunch fairly completes it. I was in agreement with what Mike said about people using credit to buy food, etc, that sounded odd to me when that started making the rounds. Smacked of quick and dirty thinking.
Tuition has a number of components. I read an analysis several years ago pointing out that customers associate value of a college with cost. This led any number of schools to raise their cost in hopes of catching that effect, and for a time at least, it seems to have worked. Another component for the state schools is the anti-tax movement, which has cut state support drastically. Waddya gonna do, in that situation, but shift the tax burden to the customers, ie the students and their parents. Yet another component is the movement of nearly all "financial aid" into the loan market, and the counterpunch article addresses that.
And something somewhat less visible is the developing of faculty who earn money for the institution. In my field, public health, we support our research – and our salaries – by writing grant proposals, mostly to the NIH. This pays off for the college in two ways – we get our salaries and our staffs paid, and the college collects "indirect costs" which these days run around 60% – 70% of the direct cost of the research, and all goes back into the colleges’ pockets for the infrastructure support they provide. Non-researchers in the medical field, my clinical colleagues, on the other hand, fund themselves by caring for patients. And the real grunt work there lies with the prestige of having a "teaching hospital" – much clinical care is provided by residents and fellows, who around here are paid in the 50 – 70k per year range. In my field, grad students and post docs are the grunts and they’re even cheaper. We in medicine are of value to the institution only insofar as we generate income.