On colleges and health care

The economic models we have in place to assist people with both paying for college and health care are atrocious. In both cases, we provide the ultimate consumer with free or very low cost funds to pay for their bills. There is a compassionate reason behind this but poor economics. By increasing the inexpensive money supply to help people pay for school or health care, we create inflation in the costs of both. With a large, easy to get money supply available to them, schools and health care aren't going to leave money on the table. They are going to increase their expenditures and charge higher prices to make sure they get every penny that they can. A loose money supply is not the only contributing factor to the increasing costs of schooling and health care, but it is a major contributor. Once the consumer feels like they aren't playing with their own money, they stop questioning the price, and once they stop questioning the price, organizations stop feeling pressure to keep their prices low and their operations efficient and cost effective, and we all sit back and wonder how college or health care became so unaffordable.