Search This Blog

Wednesday, March 13, 2019

Tuition Costs: 1964 v 2019

Yesterday we talked about the #1 reason so many young people are attracted to socialism and its pie in the sky lies..

Crippling student loan debt stunting their present and future

So now we're going to do some number crunching to show that if you believe tuition rates are just too high and wages haven't kept up with costs meaning more and more loan dependence, well obviously you are correct
We're going to look at 1964 to the present and use two tools - a statistical tuition chart from the National Center for Education Studies and an inflation calculator provided by the Minneapolis Fed

We'll just focus on tuition..  Figure for room and board, the figures provided would need to be doubled

In 1964, the average cost for tuition for a school year was $243 for public school and $1,088 for a private institution

Using the inflation calculator, $243 translates today to $1,968 and $1,088 is $8,803
The average cost for a year of tuition today at a public school is $9,970 which means with inflation factoring in, it costs a student today $8,002 more per calendar year than it did their grandparents

For private universities, the average cost today is $15,160 which is an inflation adjusted increase of $6,357 - interesting that public institutions on average have gone up a higher rate than private

In 1964, the median income was $6,600 which when adjusted for inflation is $55,081 - This is before the fake-feminist moment destroyed the family and the husband's ability to provide for it

A man could still comfortably support his wife and children on one income and the wife had the Choice to work if so desired instead of today where everyone is forced to based on economic necessity and the children forced to be latchkey kids
Today, the median income is $59,055

So in 55 years tuition has risen about $6,300 to $8,000 more a year and yet the median income has only risen by $4,000

Doesn't seem like all that a big deal until you take into consideration all other expenses one has in their life which have dramatically risen
For instance a new Ford in 1964 cost about $2,300 which adjusted for inflation is $18,630

Obviously there have been many technological advancements in automobiles over the years but one did not need 48 to 72 months to pay off a car back then

Today the average car costs $30,900
In 1964, the average new home costs $13,000 which in today's money would be a little over $105,000

Today the average new home costs $275,000

This is the real financial killer for families - 30 year mortgages were unheard of back then and based on the 1964 median income of $6,600, just statistically speaking 2 years of work equals one home purchase

Today at a median income of $59,000, it takes 4.5 years
And what caused this more than any one event in US history?

Answer - Nixon taking the US off the gold standard so to devalue the currency to be able to afford paying the interest on the Vietnam War debt

So as we said, if you are frustrated by the rising cost of tuition as well as everything else, you've good reason to feel so

Now you have a better understanding of things.