The UK Economy lingers in Recession thanks to Inflation caused by High Tuition Costs and High Utility Bills

Posted by PITHOCRATES - December 23rd, 2012

Week in Review

The Democrats have attacked health insurers with a vengeance for the high prices of health care.  They blame them for these soaring prices.  As well as greedy doctors, hospitals and pharmaceutical companies.  The Left is always ready to attack some greedy business for their ‘excessive’ profits driving up their prices.  And all businesses are guilty of being greedy profit whores.  With a couple of exceptions (see No Happy New Year for UK as Gloom Worsens by Holly Ellyatt posted 12/21/2012 on CNBC).

With gloomy economic forecasts, falling consumer confidence and poor retail figures adding to concerns over talk of the U.K. leaving the European Union, 2013 is set to be a tough year for the country, analysts say…

“There’s been a lot of discounting in the high streets because the shops are trying to shift stock and it’s not working,” Jane Foley, senior currency strategist at Rabobank, told CNBC…

Foley told CNBC that growth had been disappointing mainly due to inflation and low wage growth.

“[Inflation] took money out of our pockets and made our real wages negative. Many economists were anticipating that by now we would have positive wage growth but no, again we have sticky inflation and inflation at high levels because of university fees and utility bills going up.”

Funny how universities and the utilities are never labeled as greedy profit whores.  No, they never get attacked like those in business do.  Instead they attack greedy taxpayers who don’t volunteer to pay more in taxes to help subsidize the high cost of education and utilities.  They’re the greedy profit whores.  Who oppose those in education and the utilities from living a better life than they do.  How selfish.

University professors brainwash their students into being good liberal voters.  The utilities are unionized.  Both do a lot to elect liberals to office.  And keep them in office.  Therefore those who attack health insurers, doctors, hospitals and pharmaceutical companies never attack those in education and the utilities.  Even though they are gouging consumers far more than health insurers, doctors, hospitals and pharmaceutical companies.

For all the talk about leveling the playing field and looking out for the little guy the Left sure likes taking care of their own.  In a country where there is no nobility there is an aristocracy.  Government workers.  And those who help the government gain and maintain power.  These people live the good life.  While the rest are attacked for being greedy.  Pay high tuition costs.  And pay high utility bills.  The aristocracy has to pay these things, too.  But with the generous pay and benefits package they give themselves they can easily afford these things.  Thanks to the power they have to make us pay high tuition costs and high utility bills.  As well as high taxes.

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FT91: We vilify doctors, hospitals, pharmaceuticals and insurance companies for rising health care costs but we don’t vilify professors or universities responsible for rising tuition costs.

Posted by PITHOCRATES - November 11th, 2011

Fundamental Truth

Greedy Taxpayers are Blamed for the High Cost of Higher Education

Both health care and tuition costs are rising.  They’re out of control.  Both are crises.  We hear about it all the time.  And we’re doing something about it.  Interestingly, though, we’re trying to solve these crises differently.

We’ve identified villains in the health care industry.  Doctors who order unnecessary procedures.  Hospitals that carry out unnecessary procedures.  Greedy pharmaceutical companies that make seniors choose between food and medicine.  And greedy insurance companies who keep raising their premiums while aggressively denying claims.  All who contribute to the rising cost of health care.

So we know who wears the black hats in the health care crisis.  It’s a little different in the tuition crisis.  Do you know who the villains are there?  We are.  The greedy taxpayers.  Who have nothing to do with the rising cost of tuition.  No.  Our crime is our opposition to ever higher taxes.  So we can subsidize ever more of the high cost of higher education.

The Rich Fat Cats above the Professors live like Wall Street Fat Cats

So why are costs so high?  And why aren’t we blaming those who make these costs so high?  Like we blame doctors, hospitals, pharmaceutical companies and insurance companies?

Universities are awash in cash.  From tuition.  From the state.  From corporations.  From benefactors.  From alumni.  And, of course, from college sports.  A multibillion dollar industry.  That doesn’t pay a dime to the athletes that generate all that cash.  So universities have a lot of cash.  Yet tuition costs keep going up.  Why?

What are the costs of a higher education?  There are classrooms.  But these are long-term fixed assets.  That last decades without any improvements.  There are textbooks.  They’re very expensive.  Rarely less than $100.  Which is odd.  Because it’s rare to find a book at Barnes and Nobel for more than $100.  So that’s a profitable enterprise.  Textbook publishing.  While all other publishing is bleeding red and going out of business.  And there are, of course, faculty.

The life of a university professor is pretty sweet.  You get to hide from the real world on campus.  You have great working hours.  You get a lot of time off.  Sometimes all summer.  And have graduate students do all of your busy work.  It’s a charmed life.  And students pay them well for it.  And once they get tenure they can pretty much do whatever they want.  And no one will ever fire them.  No matter how many of their graduates can’t find a job.

And then you have all the rich fat cats above the professors who do even less.  Who drive the same kind of cars the Wall Street fat cats do.  And live in the same kind of houses the Wall Street fat cats live in.  But no one protests these rich fat cats.  Who got rich by ripping off students.  Via the ever rising costs of higher education.

Getting into the University System is like being Knighted in the Old World

The university system is a microcosm of Old World aristocracy.  Getting into the system is like being knighted in the Old World.  And university life is like the Old World.  Where no one challenges your privilege.  Because that wouldn’t be proper behavior.  And lacking the respect due to the privileged class.

Of course this isn’t a problem when you produce great doctors, scientists and engineers who make the world a better place.  We thank those professors who work tirelessly for the betterment of society.  But to those who sucker kids into worthless degree programs?  Where there’s no math?  Only ‘no right or wrong’ essay questions?  And no jobs waiting for them in the private sector?  Well, we’re not quite as enamored with these professors.

Because we’re left to clean up their mess.  From students defaulting on their student loan debt.  Because they can’t get a job.  To the mess they make while protesting Wall Street greed.  Because they can’t get a job.  All the while those responsible for their plights are preparing to raise tuition costs yet again.  As they always have.  And always will do.  Free from blame.  Even though they are more blameworthy than those on Wall Street.

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