170 POINTS BY WAY OF SUMMARY AND EMPHASIS
COST TRENDS (Chapter 1)
|Rise of Expenditures. Over a period of sixty to seventy years, educational and general expeditures for higher education have risen much more than
gross national product, the best measure of the size of our economy.|
|Expenditures Corrected for Prices. Since the price of higher education has risen much more than general prices, the gains of education vis-à-vis
GNP are not so great as they at first seem.|
|The Lag of Unit Expenditures. But the rise of expenditures per
student has not nearly matched that of per capita income. Hence the standards
of higher education have not risen pari passu with those of the economy.|
|Gains a Maximum without Inflation. On a per student basis the largest
gains seem to come in periods of growth, without inflation--e.g., in the 1920s.|
|Why Costs per Student Rise. Continued rises in per unit costs in stable
dollars over this period of sixty to seventy years--despite the trend toward
low-cost education and the increased size of the unit, a factor tending to reduce
costs--may surprise many. Among the explanations are the rising standards in
the economy which spill over to higher education through competition for
goods and services, the difficulties confronting higher education in matching
productivity gains in the economy, the rising proportion of students in the
upper two years and graduate work, and the change in the product--e.g., the
use of expensive equipment, provision of health, social activities, research.|
|Recent Gains in Expenditures and Needs in the 1960s. We need rises
of 140 to 150 per cent in expenditures in the 1960s. At the rate of rise (in
stable dollars) from 1950 to 1958, it will take twelve (not ten) years to
achieve our objectives.|
THE 1970 BUDGET (Chapter 2)
|How Much? Operating expenses in 1960 dollars should require $9 to
10 billion as compared with around $4 billion in 1960. Rise of enrollment,
increased pay levels, and matching the rise in the standards of the economy
are especially relevant.|
|Where Will the Money Come From? I suggest a large absolute
increase from all sources, but especially from government and tuition, and a|
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Higher Education:Resources and Finance.
Contributors: Seymour E. Harris - Author.
Place of publication: New York.
Publication year: 1962.
Page number: xxi.
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