Is tax money used? Is anyone profiting from the program? Do colleges lose money? Please don’t make this political. I’d genuinely like to understand without all the talking point bullshit.
In: Economics
>Is anyone profiting from the program?
Without getting into the political discussion of the *efficacy* of this measure, the theory is that the government ultimately profits in the sense of getting additional tax revenue by having a better educated populace.
For example (and we don’t need to debate how realistic this is) an average person with a degree may make more money than if they didn’t have the degree. That income is taxed, so the federal government, and in some states the state government as well, gets more money. The person with the degree may then go spend that money on things they wouldn’t otherwise buy, like a more expensive car or a boat or jewelry or even just more things from the grocery store. Local and state governments earn tax money every time that money changes hands. Furthermore, those businesses selling those products are also employing people that are paying income tax. Finally, citizens may invest money in the stock market etc. and thus pay capital gains tax.
In general, federal programs like this are playing the long game. They are literally investing in the citizens in hopes of getting a return on their investment later in the same way you might invest in a stock in hopes of getting a return on investment.
Latest Answers