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A blog 'for independent minds'
Barry’s Big Bubble
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Opinion page editor Rick Holmes and other writers blog about national politics and issues. Holmes & Co. is a Blog for Independent Minds, a place for a free-flowing discussion of policy, news and opinion. This blog is the online cousin of the Opinion ...
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Opinion page editor Rick Holmes and other writers blog about national politics and issues. Holmes & Co. is a Blog for Independent Minds, a place for a free-flowing discussion of policy, news and opinion. This blog is the online cousin of the Opinion section of the MetroWest Daily News in Framingham, Mass. As such, our focus starts there and spreads to include Massachusetts, the nation and the world. Since successful blogs create communities of readers and writers, we hope the \x34& Co.\x34 will also come to include you.
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By Rob Meltzer
June 9, 2014 12:05 p.m.



The recent housing bubble was caused, in large part, by the availability of easy credit, which allowed people to buy something they really didn’t need at prices that they couldn’t afford.

To prove that he doesn’t get economics or even recent history, Barry is now in the process, in conjunction with Senator Elizabeth Squaw, of inflating the education bubble. They want to make it easier for everyone to afford a four year liberal arts degree, when it is evident that not everyone needs such a degree, and its not clear that such a degree has the value it once did. The problem is not the interest rate–the problem is that the cost of a liberal arts education is increasing faster than the salaries of jobs for graduates are rising. So, either the cost of education needs to come down or folks need to appreciate that the degree just isn’t necessary and worth the money. For the vast majority of people in our society, a two year associates degree in a public college at $5000 a year is more than adequate. And the additional irony is that for many students paying 60K per year for liberal arts colleges, the first two years are more often than not remedial for the failed vaunted public school education anyway. It is poor thinking, as Barry is now showing, which actually increases the gap between rich and poor, as Barry encourages more people to become less wealthy.

In a time of a bubble, the cure is not more easy credit, but a tightening of credit. What this country needs now is not lower interest rates, but higher interest rates. Higher rates encourage banks to lend, and individuals to save. Higher rates put leveraged assets–whether real estate or education–into closer parity between value and cost. Making it easier for people to borrow for something they don’t need simply inflates the bubble. Is 2008 so long ago that Barry has forgotten what a bubble looks like, or is he simply pandering in the run up to the 2014 election, knowing full well that he will be out of office when yet another bad policy is revealed for what it is?

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