Gov. Michelle Lujan Grisham’s proposal to close the tuition gap for all residents, regardless of income or immigration status, seems well-intentioned, but will it actually accomplish what it aims to achieve?
Economics 101 teaches what should be self-evident: When goods are scarce, everyone can’t have everything they want, and therefore goods are rationed – either by free-market prices or by government dictates. As we’ve seen in health care, when a third party pays the tab, costs rise uncontrollably.
Will Lujan Grisham’s plan bend down the curve of rapidly rising college costs and bring about a higher rate of college completion?
The evidence indicates otherwise. Although correlation doesn’t always equal causation, in many countries with tuition-free or ultra-low-cost college, there are actually fewer college graduates proportionally compared to countries where higher education is much more expensive.