Why Did Baby Boomers Increase the Price of College After Getting Their Degrees?

From the perspectives of those who experienced it firsthand, the increase in college tuition costs is a multifaceted issue with significant historical and economic underpinnings. This article delves into the experiences of baby boomers and their role in the rise of higher education expenses post-graduation.

Introduction to a Generation of College Graduates

During the early and mid-20th century, the baby boomers (defined as those born between 1946 and 1964) had a first-hand look at the benefits of higher education. For many baby boomers, college was not only an aspiration but also a practical stepping stone to a better economic future. My father, for example, was the first in our family to attend college, benefiting from the GI Bill that emerged after World War II, which provided funding for veterans to pursue higher education.

He became a scientist with a great job, setting a precedent for me and my siblings. By the time I was finishing high school, the expectation that I would pursue a college education was almost a certainty. Many of my relatives and neighbors shared this belief, driven by the strong economic performance of college graduates post-graduation. However, access to higher education was not universal, as there were limited spots available.

Academic Competition and Government Involvement

The post-WWII era saw a significant duplication of universities and colleges, fueled by competition with the Soviet Union in fields such as science and engineering. This led to substantial investments in higher education. In the United States, the National Defense Education Act of 1958, among other measures, directed funds toward these critical fields.

These initiatives created not just more colleges but also new campuses and locations, providing more slots for students. However, the growth in educational institutions did not always keep pace with the expansion of the teaching staff. As a result, many professors resorted to consulting or writing as additional sources of income, while still holding their academic positions. This period was a crucial time in the development of engineering and science, where professors' salaries often lagged behind inflation.

The Impact of Inflation and Strikes

Following the oil crisis in the early 1970s, inflation soared dramatically. Professors soon found that their salaries could not keep up with inflation. This led to negotiations for substantial salary increases, in some cases even involving strikes. This period saw a significant push to raise the financial compensation for professors, reflecting the growing recognition of their importance to national and global competitiveness.

Despite these efforts, the gap between rising costs and available funding continued to widen. The number of top professors did not increase proportionally with the number of students, leading to a supply and demand imbalance. To maintain a balanced financial state, colleges and universities turned to increasing tuition fees, which became a contentious issue among students and educators.

The Role of Baby Boomers in Supporting Higher Education

As the first generation to largely benefit from higher education, baby boomers played a crucial role in ensuring that subsequent generations had access to similar opportunities. Many baby boomers used their success in the job market to support their children's and grandchildren's aspirations for college. This intergenerational support was integral to the growth and expansion of higher education. For instance, my own experiences led me to a private university where tuition was approximately $2,500 per year when I was a freshman.

However, with the increase in the number of students, the fixed amount of available funding was spread thinner, leading to rising tuition costs. The financial impact on college graduates today is significantly higher than it was 50 years ago. Despite the substantial increases in tuition, the growth in other costs, such as the price of gold, did not match the increase in educational expenses.

As a reference, when I went to school, it cost approximately 40 ounces of gold for tuition. Today, with gold prices around $1,500 per ounce, the equivalent tuition cost is about 60,000. Meanwhile, wages have increased only about 9 times in the same period, making the financial burden of higher education much heavier on individuals.

Conclusion

The increase in college tuition, driven by historical and economic factors, is a complex issue with significant implications for current and future generations. Understanding the role of baby boomers and the underlying forces that contribute to rising costs is crucial for policymakers and educators in addressing this ongoing challenge.