The University of California is considering proposals to raise student tuition by 8 percent, expand financial aid and reduce pension benefits for future employees.Is it me, or is it wildly ironic to charge kids more in this economy to secure a future via a college degree, yet the very same people or generation charging them more will leave them with a state in financial ruin with tons of debt and eventually higher taxes to deal with.
UC President Mark Yudof offered the proposals in an open letter to California and discussed them on Monday.
He said tuition hike and pension changes are needed to help close a $1 billion budget shortfall.
The UC Board of Regents is scheduled to vote on the measures next week.
If approved, annual tuition for California residents would increase by $822 to $11,124. About one third of the money would be set aside for student aid.
Yudof wants to expand UC's financial aid program so that students from families earning less than $80,000 would not have to pay any tuition.
I wonder if college students today really understand how much they are getting hosed. Higher and higher tuition fees, many straddled with more and more college debt, only to come out of college with little chances of finding a job today, and someday they will have to deal with a broken financial system because today's adults fail to rectify their own structural imbalances, which means these young people will probably earn less and be taxed more.
Pay more for now and get less in the future. Is this the new American way for the young? In the coming years of a deflationary cycle, we will see Social Unrest unfold in many ways. One of the focal points maybe a divide among young and old.
We are screwing young people out of a future because we fail to deal with the financial imbalances today. We are only pushing off the inevitable to anther generation. Young people are going to have less opportunities while having to cure state, federal and social security imbalances, which means paying higher taxes. They could easily make less and keep less than prior generations because prior generations are failing to deal with today's financial issues with long term market based solutions in turn for more short term gimmicks (example: Bernanke).
President Yudof is a perfect example of not dealing with budget imbalances. He's essentially taxing the young to continue floating over paid college professors and administration employees within the UC system. It's really just a microcosm of the entire municipal budget deficit everywhere. Higher tuition (taxes) in the long run doesn't work when spending on pay and benefits is out of control, but President Mark is like most leaders or politicians with head in the sand economics.
These imbalances caused by the baby boom generation may cause a divide between young and old in the coming years.
Hope all is well
J.D. Rosendahl, Rosey