Shrinking Products, Increasing Prices

So does this mean that the original was of subpar quality? This phrase often unnerved me, rather than pleasing me as companies intend.

So does this mean that the original was of sub-par quality? This phrase often disturbs me, rather than making me excited as companies intended.

Companies are constantly trying to spice up their products in order to keep current customers interested, as well as to reach out to a broader consumer base. New flavorings and new packaging are two examples as to how expansionary marketing tactics are implemented. Recently, I noted that the size and portions of many items on the shelves have been shrinking. You should definitely take note of this trend because it will affect your spending habits. At first you might not notice the subtle difference, but over time you will be keenly aware of the fact that you are spending significantly more.

As you can see from the diagram, there are a few steps between production and actually reaching you, the consumer. The more steps, the more hikes in price.

As you can see from the diagram, there are a few steps between production and actually reaching you, the consumer. The more steps, the more price hikes.

Why is it that items are suddenly shrinking in size? Based on the cell phone market, one would think that companies are all thinking that bigger is better! When creating a product, there are various parts that go into production. Labor, equipment, and ingredients all cost money. When pricing a good, companies add up their expenses and then decide on a price that both covers their costs and leaves room for a profit. (Actually, a middleman gets involved between the manufacturer and the store. By the time the item reaches your shelf, the price has been marked up significantly.)  If the cost of any of these inputs goes up, the company transfers the burden on the customer. It makes sense: if the price of an input rises, then the value of the final good is greater than it was before; therefore, a new price is needed to reflect the appreciation in value. Businesses cannot continue to charge the same amount when it costs more to produce-otherwise they would soon go out of business. And since there is inflation, prices have continuously risen over time. However, because wages have gone up at the same rate, people normally do not feel such a pinch on their bank accounts.

Of course, this normally happens in a healthy economy. As I have mentioned in past blogs, the US economy is still very fragile. While it is indeed expanding, growth is very tepid. Businesses are afraid to do anything too drastic, lest they set off a negative response and cause sales to plummet. Knowing that increasing prices is not the appropriate tactic in this scenario, they chose a creative and discrete method in order to offset the rising cost of inputs.

A graph depicting the Law of demand. As the price (on the y axis) goes down, the quantity demanded (the x axis) increases.

A graph depicting the Law of demand. As the price (on the y axis) goes down, the quantity demanded (the x axis) increases.

         Their solution: shrink the size of their goods, but keep prices the same. That way, they would actually be charging customers more, but in such a subtle way that many would not notice. Psychologically, they reasoned, people are more likely to notice a price hike of $0.20 than to notice that an item is 0.5 ounces smaller. This way, they successfully circumvent a fundamental rule in economics, the Law of Demand, which dictates that demand decreases when price increases. Furthermore, by using a new shape, a company appears more modern and dynamic, thereby attracting more attention. Genius!

A conspicuous example of shameless shrinking is evident in the new Chobani yogurts. For a while, I was ecstatic with this Greek yogurt company. Its products are yummy, healthy, and cheap (using this coupon which often doubles). Did I mention that their key lime pie

It might not have as fancy a facade as the brand name, but it tastes just as good. Never judge a book by its cover-in the case of saving money and getting more, the generic brand is a win-win.

It might not have as fancy a facade as the brand name, but it tastes just as good. Never judge a book by its cover- by paying less overall and getting more for what you paid, the generic brand is a win-win.

flips are to die for? The American market shares similar positive sentiments about Chobani, as it has become the latest official craze. Unfortunately, what was originally sold at 6 ounces is now only 5.3 ounces. How did Chobani divert attention from the smaller size? It began labeling the new containers as being “under 100 calories” because it knew that its health conscious audience would respond well to the lower calorie content. Though I eat healthy for the most part, I did not view this positively. As someone who is capable of eating A Lot, I realized immediately that fewer calories mean less volume. (I figured this out with my brain, though, not my stomach.) Unfortunately, many people are not so acutely sensitive to being ripped off; many people I asked did not realize that the Chobani yogurts were smaller. Looking at the shelves in Shoprite, I noticed that the generic Greek yogurts were still the original 6-ounce sizes. Thus, they are not only cheaper than the brand name at face value, but also proportionally, as they cost substantially less per ounce.

The original shape and size of Chobani yogurts. This is 6 ounces.

This is the original size and shape of Chobani yogurt. It is 6 ounces.

This is the new shape you might have begun to see on shelves. New features include a more defined rim, a claim of being 100 calories, and 5.3 ounces label.

This is the new shape you might have begun to see on shelves. New features include a more defined rim, a claim of being 100 calories, and 5.3 ounces label (bottom left).

 

 

 

 

 

 

 

 

 

 

 

Not all foods are shrinking, though. Since the 1970’s, fast food portions swelled in size.  A sad reality in a world struggling with

And we wonder why people are struggling to maintain their weight in today's society...

And we wonder why people are struggling to maintain their weight in today’s society…

an obesity problem, and probably an important contributing factor, value sizing is a way to make consumers feel like they are getting the biggest bang for their buck. The food is already dirt cheap, so companies can afford to increase the portions.

Why is it that some companies are decreasing portions while others are increasing them? I have two possible answers that are based on two different economic concepts.

Firstly, everyone tries to maximize his or her own utility, or happiness. For people who eat healthily, their utility will not be greatly impacted if there is less Chobani. They are trying to maintain their weight and realize that eating this Greek yogurt, no matter how much, is still good for them. People going out for fast food, on the other hand, are concerned with buying food at a low price. The more they get, the greater their utility. Imagine if, at a drive-thru, you get an order of fries that is half the size it used to be. You would not be happy.  Companies realize this discrepancy and act accordingly. Not only does the utility of fast food eaters go up more if the size increases, but also the cost of doing so is significantly cheaper.

blog 5.8 hipster healthy

Hipsters, notorious for being a part of a wealthier demographic, are willing to spend more to eat healthily.

Cost affects consumer behavior as it does business behavior. Elasticity is the degree to which supply or demand is sensitive to changes in price. In the case of changing portion size, elasticity clearly manifests itself. When Chobani changes the size of its product, thereby making it more expensive, demand is highly inelastic- people will continue to buy it despite it costing more.

Ever seen this at a local Drive-thru? Probably not, because people buying there are most likely on a strict budget.

Ever seen this at a local Drive-thru? Probably not, because people buying there are most likely on a strict budget.

To eat healthily, they are willing to pay more. However, when it comes to unhealthy food, demand is extremely elastic. Increase the price by even a small amount, and a large number of people will stop buying. The appeal in this type of food is, after all, in its cheapness; it certainly is not heart healthy. The only way to appeal to more consumers in this case is either by decreasing the price or by increasing portion sizes. Since we live in a time of rising prices, the latter is the more plausible method.

Because of external influences such as store promotions, sales, and tax hikes, prices are always in a state of flux. Since the subtitle of this blog is “financial advice from yours truly”, I feel that it is my responsibility to enable you to legally acquire things for the cheapest price. The first way to do this is by being on the lookout for business tactics that trick consumers into paying more than they need to. Be conscious of prices, but more importantly in this case, beware of the shrinking sizes!

Published in: on February 23, 2014 at 6:28 am Comments (1)

Internships: Paid Slave Labor or Legitimate Learning Experience?

The fact that you can even see one car in this picture is surprising, given the sheer quantity of snow that has fallen in the past few weeks.

The fact that you can even see one car in this picture is surprising, given the sheer quantity of snow that has fallen in the past few weeks. At this rate, they should start offering  internships for snow related professions!

Snow might be covering everything as far as the eye can see, but I know what most of you have on your minds: your plans for the summer. As college students, you can no longer dawdle during your vacation. Ask anyone and they will say that they have applied to a number internships. Internships have exploded in popularity recently and play a critical role in the job sector of the economy.

Apprentices often bring to mind early America (think Benjamin Franklin), when teenage boys worked alongside men in various professions. Internships are the 21st century version.

Apprentices often bring to mind early America (think Benjamin Franklin), when teenage boys worked alongside men in various professions. Internships are the 21st century version.

What exactly is an internship? It is similar to an apprenticeship, but not quite. An apprenticeship is job specific and usually involves working alongside an expert in the field. An internship, on the other hand, is much more broad in nature. It is an opportunity to be exposed to a field in which someone is potentially interested. A successful internship is a learning experience and gives the intern a thorough idea of what a particular job or line of work entails. Since it is an experience, though, it has slowly been transforming into fodder for padding one’s resume. As a result, having one internship in which you actually do meaningful work is often perceived as less impressive than having a plethora of internships in which your main function is to organize a pile of papers. That, then, begs the question: quality or quantity?

Potential interns wait in line and are treated like they are part of a slave auction: they are cheap labor with little to no rights.

Potential interns wait in line and are treated like they are part of a slave auction: they are cheap labor with little to no rights.

Of course, hiring someone to work as an intern raises the issue of money. An intern clearly does not have the title of employee. Do they legally need to be paid? If so, must they also be paid at least minimum wage? At first, I thought the answer was obvious: working as an intern without receiving any form of monetary compensation is akin to slave labor! Legally, as always, the issue is much more complex. There is a six factor test issued by the Department of Labor that dictates the following 6 criteria that qualify an internship to be unpaid:

  1. The internship is similar to training which would be given in an educational environment. (You actually learn something from it!)
  2. The internship is for the benefit of the intern. (The company provides you with the opportunity to be exposed to the field you applied for, and not be forced to do meaningless, unrelated work.)
  3. The intern does not displace paid employees. (The company cannot make you do something in place a current employee so as to avoid having to pay the hired worker.)
  4. The company provides the training and derives no immediate advantage from the activities of students, and, on occasion, the operations may actually be impeded by the training (The company must train you as to what to do, and it cannot use you for worthless tasks, such as fetching coffee.)
  5. Students are not necessarily entitled to a job at the conclusion of the training period. (The intern knows that s/he is not guaranteed a job at the end.)
  6. The employer and the student understand that the student is not entitled to wages for the time spent in training. (Both parties involved know that this is free labor. The company knows that they are getting a good deal, and the intern knows that s/he is getting the short end of the bargain- but is still willing to do so.)

Companies obviously want to avoid having to pay interns at all cost (pun intended) and therefore want to fulfill these criteria. Realistically, though, it is almost impossible for them to do so; most do not care about the intern’s learning experience. As a result, they frequently stretch the truth as to the nature of the internship. Most likely, they lie. You should be well aware of the fact that even a lunch or transportation stipend still does not legally cover the requirement for receiving a wage. Simply put, most unpaid internships are illegal.

Outrageous internship demands have been immortalized in The Devil Wears Prada.

Outrageous internship demands have been immortalized in The Devil Wears Prada.

Many people believe that internships are ethically problematic on multiple levels. One major issue is that of wages. Companies will pay either abysmally or, if possible, nothing at all. In their eyes, the intern is simply cheap labor. Unlike employees who commit to a company, interns come and go. Accordingly, they are viewed as worthless and are given meaningless, tedious work that is unrelated to the job. Companies are notoriously cavalier when it comes to intern exploitation; they have no qualms about asking interns to do petty favors, such as fetching a cup of coffee. It becomes rather difficult, almost impossible, to glean insightful experience about the job when you have no active exposure (except maybe to slave labor)!

 

This is JP Morgan Chase's CEO Jamie Dimon. Recently JP Morgan has come under fire for hiring the children of many Chinese elite in order to win business with their parents.

This is JPMorgan Chase’s CEO Jamie Dimon. Recently JP Morgan has come under fire for hiring the children of many Chinese elite in order to win business with their parents.

Besides for the actual institution of internships, there is also a great deal of controversy regarding those who are actually accepted. There are a plethora of internships available, but because companies sense student desperation, they continue to be selective. You can find them by searching online, or, more specifically, on LinkedIn. Applying is the easy part; the real battle is getting a nonautomated response. The best way to circumvent this annoying roadblock is by getting an internship through a connection. I have frequently witnessed people who get an internship through a family member or a family friend. This method has a higher rate of success in terms of getting a legitimate internship. However, it is very unfair because it reinforces the age-old problem of nepotism. People can will lounge around and passively wait for an opportunity to head their way. Laziness is condoned, while ambition is unrecognized. C’est La Vie.

In economics, the concept of barriers to entry is discussed in relation to the various types of market structures. In a perfect, or pure, competition, no participants have enough influence to be market takers and influence the price of the items. There are many companies that sell the same product, and it is therefore easy for another company to join the market. However, in a monopoly, where there is one party that controls the market of a certain item and consequently, the price, it is nearly impossible for a company to join the market that is already completely dominated.

In economics, the concept of barriers to entry is discussed in relation to the various types of market structures. In a perfect, or pure, competition, no participants have enough influence to be market takers and impact the price of the goods. Every item is practically identical and therefore costs the same. With  every company selling the same product and bearing the same amount of influence, it is easy for another company to join the market. On the other hand, in a monopoly, there is one party that controls the market of a certain item and, consequently, the price. As a result, it is nearly impossible for a company to join a market that is already completely dominated.

A former professor of mine raised another issue. I knew he would have an opinion on the matter, and he did not disappoint! He argues that the institution of internships ultimately serves the upper class. For one, the wealthy have more pull and connections with top companies. On a more economic level, those who are not financially stable cannot afford to take off from their paid job and spend a few months as an unpaid intern.  The opportunity cost of missing a paycheck is far greater than the experience they could potentially gain from an internship. Furthermore, there is an economic concept called the Time Value of Money, which states that a given amount of money at the present moment is worth more than the same amount in the future. There are a few formulas for calculating future and present value, but the basic gist is this: by saving your money now and investing it, you can make more money. If you spend it, you lose that money plus any interest you could have made on it. Similarly, even if an internship increases the prospects of landing a well paying job in the future, the paycheck you receive now is, in comparison, more valuable. An internship, which is supposed to be an opportunity for learning and growth, therefore services to a privileged demographic. Furthermore, barriers to entry (exactly what it sounds like- something that prevents you from entering) exist for people trying to enter all job fields. However, barriers to entry acutely impact members of the lower class, who lack the many opportunities that are available to the wealthy. Therefore, by not partaking in any internships, they further lose out on experience necessary to break through the barriers to entry of a particular industry and to get a good job.

Because of the unpredictable nature of the economy, it is important to get internships. Granted it is disgusting the way in which many companies are exploiting young workers; often, they use interns as a way to circumvent the cost of paid employees. In fact, I read a recent article in which college graduates could not land a job, but they were hired, time and time again, as interns. It is a sad reality that the competition for internships now is not among college students and their peers, but also rather with recent graduates who should be in the pool of employed workers!

I could have made a fortune as a private SAT math tutor. Instead, I helped underprivaleged high school students who could not afford $100 an hour tutors. In that way, I helped even the playing field of those taking the SAT, so they had just as great a chance to do well as the wealthy students who hired private SAT tutors.

I could have made a fortune as a private SAT math tutor. Instead, I helped underprivileged high school students who could not afford to pay $100 an hour. As a result, I helped even the playing field of those taking the SAT; my students were as prepared to take the test as the wealthy students from private schools.

Last year, I applied ad nauseam to many positions, only to get rejected by all of them. Instead of getting bogged down, I chose to volunteer at Let’s Get Ready instead. I had to work hard (I also took 2 summer classes!), but in the end, the experience was rewarding. I felt that I had truly accomplished something- I had impacted people’s’ lives. Of course, an extra bonus was that I could add that experience to my resume. Future employers would see that I am not just ambitious, but also altruistic. Internships are an important part of any college student’s resume, but do not forget that there are other options, too!

Published in: on February 17, 2014 at 9:17 pm Comments (1)

$hmalentine’s Day

 

I cannot tell you how many times I witnessed a scene like this , in which a couple takes up an entire bench. It would be cute if the scenic view were not Powerdermaker Hall. Not exactly what I would call 'picturesque'.

I cannot tell you how many times I witnessed a scene like this , in which a couple takes up an entire bench. It would be cute if the scenic view were not Powerdermaker Hall. Not exactly what I would call ‘picturesque’.

 

Wherever you go on campus, you will inevitably spot a young couple that is unapologetically in love, especially one on the cusp of engagement. I hope you exhibit more self-restraint than I do by refraining from staring and making a disgusted face; in my defense, they are everywhere! The romantic ambience will only become more visible, or more unbearable, on Valentine’s Day. The fluffy teddy bear, the bouquet of roses, and the box of chocolates are all indelible markings of the painfully cliché, Hallmark sponsored holiday. The good news for all of you single folk is that you can cash in on the many available sales that companies market to all those who are love-struck.

Obligatory Forrest Gump quote: Momma always said, 'Life was like a box of chocolates. You never know what you're gonna get'".

Obligatory Forrest Gump quote: Momma always said, ‘Life was like a box of chocolates. You never know what you’re gonna get'”.

Like on Halloween, chocolates on Valentine’s Day are on sale. The difference is that on Valentine’s Day, they are wrapped in quaint, heart shaped pink boxes. While they are intended as gifts for a significant other, there is no reason why you cannot treat yourself to some high quality chocolate. If you are content being single, they will serve as an effective pick me up snack; if you are miserable as the third wheel-a situation that I personally find awkwardly amusing-you can pretend that a lover gave you the gift.

Random fact: this ubiqutous logo actually depicts Lady Godiva, who, according to legend, rode around on a horse nude in midday in order to persuade her husband to ease the tax burden on the people.

Random fact: this ubiquitous logo actually depicts Lady Godiva, who, according to legend, rode around nude on a horse in midday in order to persuade her husband to ease the tax burden on the people. Fascinating story? Yes. Fitting for chocolate? Not so sure.

If you want to indulge on a little bit of fancy chocolate at no expense, look no further than a Godiva store. While the franchise promotes itself as an elite chocolatier for the upper class, it is in fact accessible to everyone. By joining its membership club, which simply entails giving your email, you are allowed one free chocolate a month. No catch at all! Note, though, that the freebies do not roll over and accumulate. As someone who does not quite know the concept of self-restraint when it comes to eating chocolate, I find this policy to be the perfect way to indulge my sweet tooth without feeling guilty afterward. Of course, Godiva is not doing this in order to befriend customers. Rather, the prospect of free chocolate entices people to enter its stores; once there, they are more likely to buy something. I admit that getting the chocolate from the cashier and simply walking out is often awkward. However, one look at the astronomical prices allays my uncomfortable sentiments.

Last year on Valentine’s Day, I saw people pay full price for roses. I was curious as to what would happen to the supply afterward. As I suspected, prices were slashed the following day. Unlike other holiday specific goods that go on sale, flowers die relatively quickly and do not last. The lower prices reflect sellers’ desperation to get rid of something that can only temporarily remain a part of their inventory.

blog 3.4 tulip graph

The price of tulips kept rising and rising, until it suddenly plummeted, just like what happens with every economic bubble.

The sharp decline in the value of roses after Valentine’s Day reminds me of another floral related event that impacted the economy: the Tulip Mania in Holland. In the 1600’s, the price of tulips skyrocketed, and people invested heavily in these popular flowers. Predictably, the bubble soon popped and the value plummeted, thereby leaving many people devoid of life savings and property. While a long line for a bouquet of roses on Valentine’s Day is not quite the same as the Dutch craze for tulips, both events show that even a relatively simple commodity such flowers can have an impact on the economy on a grand scale.

Valentine's Day "specials" are really just a way to lure in customers to spend money.

Valentine’s Day “specials” are really just a way to lure in customers to spend money.

While there are no general sales in honor of Valentine’s Day, you still have the opportunity to save money. Now that the semester is in full swing, you undoubtedly need something saccharine to counteract your bitter cup of coffee. Through some simple cost-benefit analysis, I would suggest that for a college student strapped for cash, a discounted box of chocolates is a much more worthwhile investment than is a teddy bear or a bunch of flowers.

Published in: on February 11, 2014 at 1:56 am Comments (1)

The Skinny on CUNY Professors

Rate My Professors and the Course websites are bookmarked on every QC student's computer the week prior to registration. (I personally keep it on my toolbar I value these resources so much.)

Rate My Professors and the Course websites are bookmarked on every QC student’s computer the week prior to registration. (I personally keep it on my toolbar I value these resources so much.)

As every college student knows, there is a science behind crafting the perfect semester schedule. Of course, you must first consider the subjects, the total number of credits, and when the classes meet. No decision, however, is complete without consulting the courses website to see the grade distribution, as well as Rate My Professors for the reviews written by students. (Warning-the ratings are often extremely skewed; people who post reviews either have terrific experiences with the teacher and shower him/her with praise, or do horribly in the class and consequently trash the professor.) Thus, while the topic is important to note, the choice of professor can effectively deter or encourage a student from enrolling in a particular class. And by this point in the semester, you should be able to tell whether the descriptions you saw beforehand accurately reflect your instructors’ dispositions. What you might not be able to tell, though, is whether they are full time or adjunct professors. At Queens College, there are 1,070 adjunct professors teaching, a whopping 59% of the total teaching staff (far greater than the national average of 47%). As someone who has had numerous adjuncts as teachers, I was curious as to how adjuncts affect the college, as both an institution and as a center of education.

In the eyes of the students, an adjunct bears a tremendous stigma. It is important, though, to understand what exactly adjunct professors are and what they do. By definition, they are part time instructors hired per class on a contractual basis. This in contrast to regular professors, who have the possibility of gaining tenure. With no contract locking them to the job, adjuncts are often PhD candidates or individuals with another job, who plan to keep the position temporarily. From a positive point of view, adjuncts can provide real world experience to students; on a negative note, they are gone within a short time, thereby preventing a student from easily reaching out to them for a letter of recommendation.

blog 2.4 poverty rate chart

Despite the fact that the Quality of Life in America has allegedly improved over the years, the number of people living in poverty has recently skyrocketed. Who would have thought that an adjunct professor could potentially contribute to this statistic?

Of course, Queens College financially benefits by hiring adjuncts. Not only are they cheaper to hire, at an average of $24,000 a year, but they also receive no healthcare benefits. To put that figure in perspective, the poverty line for a family of four is just shy of that salary, at $23,550. That means that any adjunct raising a family must supplement their income by working a second job.

Adjuncts and their abysmal monetary compensation came to light recently during the Petraeus scandal. No, I am not talking about the one where he had an affair with his biographer, only for the story to balloon into a huge federal investigation, and lead to his ultimate resignation as director of the CIA. Once Petraeus resigned, he was inundated with teaching offers from various colleges; such a widely recognized, well-educated man is a hot commodity in academia. Despite having the possibility to teach at Ivy League schools, he chose to accept the offer to teach a seminar at the Macaulay Honors College, a CUNY honors program.

blog 2.6 petraous macaulay letter

This is the letter that was leaked to the public, showing that CUNY was willing to pay General Petraeus $200,000. This letter was signed by the former Chancellor of CUNY, Matthew Goldstein.

Word slowly leaked that for the 3-hour, once a week course, Petraeus would receive $200,000. Put in perspective, that amount is nearly tenfold what the average full time adjunct professor makes. In order to further entice him to teach, CUNY promised him that graduate students would form the curriculum and grade the assignments. Essentially, his job would be to teach 16 students for three hours; he would not have to deal with any of the other classic components of teaching. When I heard this, I was irate. CUNY complains incessantly about being in debt and lacking funds (Remember the printing money for filling out course evaluations?). And yet, they were willing to fork over an amount that could cover ten new adjuncts, or split and distributed among the salaries of existing adjuncts! The salary was consequently reduced to $150,000, a lesser, but still exorbitant, sum; soon thereafter, he ultimately accepted a token sum, and more acceptable amount, of $1 to teach the course.

blog 2.7 harvard

blog 2.8 qc logo

The scandal reflected a bigger, broader issue within academia, that of paying for a name. Elite schools bear intrinsic values in their names, and can therefore charge more. As the saying goes, “you get what you pay for”. In microeconomics, there is a concept known as the Signaling Theory, in which one party conveys information about itself to another. That theory manifests itself, often unfairly, in labels individuals receive based on the college they attend. When looking at two candidates for an internship, one from Harvard and the other from Queens College, the hirer will likely choose the former. The rationale, of course, is that a student from Harvard is more qualified because his college signals more ability than Queens College. CUNY knows its students are faced with this problem, and therefore thought that acquiring such a renowned figure to teach a course for the Macaulay Honors College would elevate the CUNY system’s prestige.

Some of the students from General Petraeus' seminar: "Are We on the Threshold of the (North) American Decade?"

Some of the students from General Petraeus’ seminar “Are We on the Threshold of the (North) American Decade?”

I asked a friend of mine who took the class to describe the experience. While he thought the course material was stimulating and he gleaned a great deal from the professor, he nonetheless believed that the $200,00 salary would have been excessive and inappropriate, considering the salaries of normal adjunct professors as well as the fact that the students were not even paying for the course, as they were on a full ride scholarship.

Professors, and especially adjuncts, are notoriously underpaid. However, students are struggling, now more than ever, with rising tuition costs. In fact, the total amount of student loan debt is $1.2 trillion. On the one hand, having well paid teachers will encourage better performance and will entice people to teach. On the other hand is that the higher the tuition, the more debt that students will rack up; having a generation drowning in debt is not beneficial to an economy already marked by sluggishness and instability. Education is first and foremost an investment; nowadays, however, institutions have transformed it into a business.

Published in: on February 3, 2014 at 11:17 pm Comments (1)

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