Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search
23 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
INFLATION: How Prices Have Boomed Since The Year 2000 (Original Post) FarCenter Feb 2012 OP
Well I think we can thank GW Bush and his asswipe minions for this. I think they teddy51 Feb 2012 #1
Colleges worse than oil co's BeyondGeography Feb 2012 #2
A lot of that tuition rise mistertrickster Feb 2012 #5
Bingo! SheilaT Feb 2012 #7
Correct about comm colleges, Sheila mistertrickster Feb 2012 #8
I agree with some of your post abowsh Feb 2012 #13
What you say is absolutely correct, SheilaT Feb 2012 #20
Yep, I worked my way through college in the late 70's to the mid 80's.... WCGreen Feb 2012 #22
Yes but it is all connected. When the feds cut support to the states then the states cut support jwirr Feb 2012 #21
A mass greedfest DJ13 Feb 2012 #3
It's amazing ... and now packages in grocery stores continue to shrink, or have lots RKP5637 Feb 2012 #4
They'll only stop when the food riots start. Zalatix Feb 2012 #6
We can only wish... progress2k12nbynd Feb 2012 #10
Inflation depends in a large part SheilaT Feb 2012 #9
Not really quakerboy Feb 2012 #11
Energy prices are up due to deregulation and speculation, mmonk Feb 2012 #12
Lowest inflation since the great depression... cthulu2016 Feb 2012 #14
Out of curiosity raouldukelives Feb 2012 #15
There are two measures of CPI cthulu2016 Feb 2012 #19
In the 60s and 70s, bvar22 Feb 2012 #16
The easy availability of debt has a lot to do with the rise in tuition and fees FarCenter Feb 2012 #17
That is a piece of it, bvar22 Feb 2012 #18
Here's a link to a site showing products that have shrunk their pagaging net weight. Snarkoleptic Feb 2012 #23
 

teddy51

(3,491 posts)
1. Well I think we can thank GW Bush and his asswipe minions for this. I think they
Sun Feb 19, 2012, 12:40 AM
Feb 2012

are responsible for many other fuck-ups as we know.

 

mistertrickster

(7,062 posts)
5. A lot of that tuition rise
Sun Feb 19, 2012, 01:54 AM
Feb 2012

Is a lack of funding by states.

When tax revenues are cut, colleges have to raise tuition.

 

SheilaT

(23,156 posts)
7. Bingo!
Sun Feb 19, 2012, 02:03 AM
Feb 2012

I don't know what the actual numbers are, and I'm feeling too lazy to try to research it, but that's a huge, huge thing.

Back when I first went to college, a summer minimum wage job allowed a student living at home to save enough money to pay for tuition and books at many public universities. The exact numbers don't matter, because they'd sound so absurdly low to a college age person today.

Several years ago, when I told my younger son (now 24) that tidbit, he was totally incredulous, because he'd come of age at a time when public universities cost a heck of a lot more than a summer minimum wage job could possibly pay for.

I will point out that community colleges, while not quite that inexpensive, are still a pretty amazing bargain. And more to the point, those community colleges offer many programs that provide certificate degrees that can lead to good employment. Case in point: my older son has a CAD (computer aided design) from his community college, and has a good contract job with an engineering firm in his city. They want very much to hire him as a full time permanent employee, and keep on extending his contract while trying to persuade the home office this would be good. If they never manage to do that, he'll get another contract job, or a permanent job with some other firm. Oh, and he recently commented that the job pays more than he expected such a job with pay. Son two completed a bachelor's degree at a decent private university, majoring in psychology, minor in marketing. He's earning his living delivering pizza. Although in fairness to him, he's also trying to get started as a stand-up comic, and the pizza delivery job allows him to go to open mike nights at comedy clubs in his city several nights a week. And he is supporting himself.

 

mistertrickster

(7,062 posts)
8. Correct about comm colleges, Sheila
Sun Feb 19, 2012, 02:08 AM
Feb 2012

They haven't raised tuition relative to inflation for the last ten years . . . Probably because they have more flexibility to raise taxes themselves . . .

 

abowsh

(45 posts)
13. I agree with some of your post
Sun Feb 19, 2012, 10:23 AM
Feb 2012

It's not all funding cuts; that definitely has played into it, but there are other reasons.

First of all, a lot of people don't seem to understand what universities actually are; they are not like a government department. They are a private institution that makes their own decisions, but makes some decisions based on guidelines from state and federal governments in order to receive funding. University Presidents are not chosen by the government, they are chosen by a private board of trustees. Sometimes, I feel that people look at state universities as if they are extensions of the department of education, when they are not.

Thus, they have different motivations than a government agency. They are not there to serve, they are there to build the university. The best way to build a university is with faculty. Getting top faculty often costs money. However, sometimes, money isn't enough; the school needs top notch facilities if they want to convince Professor Nobel Prize to come to their state university.

Universities focus on the top end of the spectrum. To someone who is going into medicine, they don't really mind that the school spends insane amounts of money on new buildings and faculty, because they will likely easily make that increased tuition back, and then some. However, the average student, who isn't going to grad school is going to have to pick up some of the tab for the new Medical and Law facilities. This student may never step foot in the $200 million medial building, but she will be paying for it just as much as anyone else. Often, the best way to pay for expenses at the top end of the education spectrum is to make cuts at the bottom and middle. Make professors teach more for less money. Don't replace outdated computers in the library or common areas.

Universities themselves are to blame for much of the increase in tuition costs. Many, including my Alma Matter (Indiana), focus on fancy new buildings, but not on the education of the entire student body. A great example of this was my senior year of undergrad at IU. My roommate finished his undergrad in 2.5 years and was into Law school before I finished my undergrad. One morning, we both had to meet with our advisers. My roommate sent an email to the law school and was told that his personal adviser was out today, but there were many others available to help him. I sent an email to my undergrad adviser, and did not receive a reply. John goes to the law school, finds an adviser and comes back within an hour with all his questions answered. I go to the undergrad advising office and have to sign in and wait for an adviser. I waited in the lobby for over an hour before getting called in. From there, the adviser did not have access to my records, so we had to go off of my recollection of all my grades and scores. It took me more than twice as long to get a basic question answered by an adviser than my roommate in law school with very complex questions.

Universities do not care much about the average student. If they do not see you as someone who will continue to graduate, medical, or law school, their main goal is to just push you through (evidenced by IU constantly making it harder to fail out of college by increasing the probationary period to 3 semesters). Undergrads don't create a lot of profit for universities. Grad-students are where the money is.

 

SheilaT

(23,156 posts)
20. What you say is absolutely correct,
Sun Feb 19, 2012, 06:14 PM
Feb 2012

but I still want to emphasize how relatively inexpensive state universities were forty or fifty years ago. I graduated from high school in 1965, and I could easily afford to attend the University in my city while living at home. Back then, the community college system as we now know it didn't exist.

It's also my observation that the public universities are not at all good to the undergraduates, as you've pointed out. Even back in my day that was noticeable. If at all possible, students should avoid the humongous public universities during their first two years; instead attend the local junior college then transfer.

The big public universities don't need to care too much about the lowly undergrads, alas. Your story of advising is all too typical.

WCGreen

(45,558 posts)
22. Yep, I worked my way through college in the late 70's to the mid 80's....
Sun Feb 19, 2012, 06:28 PM
Feb 2012

Changed my major half-way through so had to go and take more classes.

I had a job and only borrowed about 3 grand over those years.

Paid it off in before I got married in 1988.

I took about a third of my credits at the community college.

jwirr

(39,215 posts)
21. Yes but it is all connected. When the feds cut support to the states then the states cut support
Sun Feb 19, 2012, 06:26 PM
Feb 2012

to cities, colleges and counties. It is a fools dream that cutting at the top will end the responsibility for the needs of the people.

DJ13

(23,671 posts)
3. A mass greedfest
Sun Feb 19, 2012, 01:01 AM
Feb 2012

Every business out there assumes their product and/or service is irreplaceable, and they can raise prices at will to further increase the bonuses their executives want.

Of course, those same businesses never raise wages for their rank and file, and then cant understand why fewer people are using their products.

RKP5637

(67,109 posts)
4. It's amazing ... and now packages in grocery stores continue to shrink, or have lots
Sun Feb 19, 2012, 01:04 AM
Feb 2012

of air in a big box.

 

progress2k12nbynd

(221 posts)
10. We can only wish...
Sun Feb 19, 2012, 03:46 AM
Feb 2012

DU has been posting "The Revolution Has Started" threads since its inception since 2001. Unfortunately nothing has changed in 10 yrs. Even Occupy, which looked great when it started, resulted in no significant legislative change whatsoever.

 

SheilaT

(23,156 posts)
9. Inflation depends in a large part
Sun Feb 19, 2012, 02:08 AM
Feb 2012

exactly what the individual needs to purchase. I'm not attending college, so those increases don't affect me.

I currently live alone, and can be pretty frugal about food. I drive a reasonably fuel efficient car (Honda Civic) and don't drive very far to work, maybe six miles each way. I typically buy gas every other week.

Indeed, the money I allot myself to cover most expenses (food, clothing, gas, cat food & litter, grooming, entertainment) has not increased in several years. Perhaps I actually buy fewer clothes, since I'm working with a fixed dollar amount. My current car is paid for, and I don't anticipate needing a replacement for several more years. I do have a mortgage, and that payment increased a year ago because of escrow needs, and next month it's going back down.

quakerboy

(13,920 posts)
11. Not really
Sun Feb 19, 2012, 06:22 AM
Feb 2012

Inflation is inflation. Food still costs more. Fuel still costs more. That 1/4 gallon of gas to drive to work cost 93 cents instead of the quarter it would have cost in 1999.

Choosing to do without items that one would once have purchased does not change inflation. It just shifts the effect of inflation from your bank account to your consumption.

mmonk

(52,589 posts)
12. Energy prices are up due to deregulation and speculation,
Sun Feb 19, 2012, 08:04 AM
Feb 2012

not so much as it relates to supply and demand. College tuition is up due to tax cuts and defunding. Both are fixable in a democracy. Too bad we don't live in one. We live currently in an ideology driven country.

cthulu2016

(10,960 posts)
14. Lowest inflation since the great depression...
Sun Feb 19, 2012, 10:49 AM
Feb 2012

Last edited Sun Feb 19, 2012, 03:32 PM - Edit history (1)

the core CPI hasn't touched 3% since 2000 and the world remains on deflation-watch but the claims of inflation just keep coming.

Inflation is very, very, very, very low.

The fact that colleges have found a lever to price-gouge is probably a very interesting story, and made more interesting by he fact that it has occured in an environment without notable inflation.

raouldukelives

(5,178 posts)
15. Out of curiosity
Sun Feb 19, 2012, 11:36 AM
Feb 2012

Have they always measured inflation the same way? I was under the impression that over the years many areas necessary for modern life like oil, food and health care had been removed from the items they chart to monitor inflation. Basically leaving us with TV sets and cat toys as measuring sticks.

cthulu2016

(10,960 posts)
19. There are two measures of CPI
Sun Feb 19, 2012, 05:05 PM
Feb 2012

The consumer price index is a group of goods and services and the contents and weightings do change over time. (Which must be done somehow because the consumer world changes)

Some folks will always disagree with the addition or deletion of particular goods and services, or how the different sectors are weighted, but the government seems, to me, to have a history trying to keep CPI a useful measure.

The core CPI is the consumer price index with food and energy removed because those are volatile (and seasonal).

Since everyone uses food and energy, I have seen people complain that core-CPI is an attempt to deny "true" inflation but that argument is quite selective since core CPI also denies "true" deflation.

Food and energy are, in fact, volatile and the core-CPI is the more reliable measure of inflation in the economy. This chart does a good job of showing why the core measure exists.

bvar22

(39,909 posts)
16. In the 60s and 70s,
Sun Feb 19, 2012, 11:37 AM
Feb 2012

...anyone could attend the State University and graduate DEBT FREE
if he/she were willing to work a part-time job.
He/she could even afford to own and operate a beater vehicle.
This was The NORM, not the exception,
and it was not very difficult.

The current situation is not the result of a particular president,
but is the results of 30 years of bi-partisan conservative economic policy.

Every one could afford a Debt Free education again,
IF we had a political party that represented the Working Class.



You will know them by their WORKS,
not by their excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]
--------------------------------------------------------------------------------------------------------------------------------[/center]

 

FarCenter

(19,429 posts)
17. The easy availability of debt has a lot to do with the rise in tuition and fees
Sun Feb 19, 2012, 03:28 PM
Feb 2012

Lenders are willing to provide large loans to students because the government provides lenders with guarantees and the government passed laws that make student loans not dischargeable in bankruptcy. This means that what would have been a risky loan becomes quite safe for the lender -- and a real long-time burden for the borrower.

The universities are geared up to facilitate borrowing by their students through their "finanical aid" offices, although going into debt is not really an aid to students.

Consequently, students have more purchasing power through going into debt. Whenever the buyers have more purchasing power and willingness to pay, an astute business always raises prices to take advantage of it.

So the student loan programs are one of the drivers of increased prices for tuition and fees.

bvar22

(39,909 posts)
18. That is a piece of it,
Sun Feb 19, 2012, 04:10 PM
Feb 2012

....but in-state tuition at the State University was MUCH more affordable in the Pre-Reagan era,
as were books and housing.
Pre-Free Trade Summer Jobs were also available, and they paid well.
A good education and a degree were within anybody's reach without the need of a loan.
That is no longer anywhere near TRUE.
NOBODY can afford Tuition and Books by working part-time & Summers.


Going to School without a LOAN and working part-time was The NORM at State Colleges, not the exception.
Some had scholarships or grants, many had help from their parents,
but many, MANY worked their way through completely on their own.
I did, and never felt that what I was doing was the slightest bit unusual.
This was more difficult during the VietNam Draft years, because if you sat out a semester to work,
they would DRAFT your ass.

Under the old Democratic Party (and old Republicans too), Education was a Protected RIGHT for everyone,
not a For Maximum Profit commodity. The Loan Schemes you mentioned above are a part of the Education as a Commodity scam.

"In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.

Among these are:

*The right to a useful and remunerative job in the industries or shops or farms or mines of the nation;

*The right to earn enough to provide adequate food and clothing and recreation;

*The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;

*The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;

*The right of every family to a decent home;

*The right to adequate medical care and the opportunity to achieve and enjoy good health;

*The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;

*The right to a good education.

All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

America's own rightful place in the world depends in large part upon how fully these and similar rights have been carried into practice for all our citizens"--- FDR.


Man, I miss THAT Democratic Party.



Snarkoleptic

(5,997 posts)
23. Here's a link to a site showing products that have shrunk their pagaging net weight.
Sun Feb 19, 2012, 09:53 PM
Feb 2012

Many employ trickery to make the package look the same size while keeping the price the same.
http://incredibleshrinkinggroceries.com/

Latest Discussions»General Discussion»INFLATION: How Prices Hav...