Phi Beta Cons

Becker and Posner on Financial Aid

A blog boasting two extraordinarily sharp writers, Gary Becker and Richard Posner, here discusses the issue of student financial aid, particularly the idea that it needs to be increased. Becker, a Nobel laureate in economics, does not find the burden of student debts to be very high in view of the potential benefits. Posner, the amazingly prolific writer on law and economics who somehow manages to find time to serve as Chief Judge on the 7th Circuit Court of Appeals, comments: “If I am right that very few persons who could benefit from a college education are deterred by its cost, the main effect of increasing the subsidy will be to attract applicants who would not benefit if they weren’t being ‘paid’ to attend college. That would be a misallocation of resources.”

George Leef is the the director of editorial content at the James G. Martin Center for Academic Renewal.

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