Higher Education Bubble: College Tuition Doubled Over the Last 10 Years vs. +52% for Medical Care
The chart above illustrates graphically the "higher education bubble" by comparing the annual increases in the CPI for "College tuition and fees" (7.45% per year since 1978) to annual increases in the CPI for "medical care" (5.8% per year) to annual increases in the median price for new homes (4.3%) to the annual increases in the "CPI for all items" (3.8%). I would have to check to verify this, but I'm not sure there is any other item in the CPI that has gone up faster since the 1970s than "college tuition and fees." We hear a lot about rising medical costs, but those increases (5.8% per year) are relatively minor compared to the increases in tuition (7.45% per year). As as you can see from the graph, tuition increases have accelerated over the last decade. Since 2000, college tuition costs have doubled while medical costs have gone up by "only" about 52%. Read more about the "higher education bubble" at The Enterprise Blog.