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Unleash Prosperity Hotline
Issue #1228
03/24/2025
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1) The More the Feds Subsidize Student Loans, the More Colleges Raise Tuition

Last week we shared some charts ([link removed]) on the utter failure and folly of federal intervention in education for K-12.

An even bigger failure has been the $1.5 trillion student loan boondoggle. As even more federal dollars have flowed into higher education in grants and (largely forgivable) loans. This is the result:
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We got a lot of praise and criticism from readers for our call to impose an excise tax on university tax-free endowments above $1 billion. But what is clear is that almost none of these treasure chests of wealth are being used to make college more affordable. Shameful.
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2) Steel Prices Already Rising Sharply Due to Tariffs

We are open-minded to reciprocity as a bargaining tool to bring tariffs on U.S. products down. But we are always and everywhere against protectionist tariffs. They never work to create jobs, and as we learned from the U.S. auto industry in the 1970s and 80s, they simply subsidize inefficiency and stunt innovation.

They also raise prices and put our domestic manufacturing industries at a cost disadvantage.

Here's a picture that's worth 1000 words:
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The US average price of hot rolled coil (HRC) steel is now about double the price in the rest of the world.
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3) New York's Medicaid “Reform” Is a $5 Billion Scheme to Unionize Workers

Home health care aides are one of the fastest growing segments of the workforce. The Labor Department projects an increase of over 800,000 new jobs by 2032.

Most of home health care is subsidized by either Medicaid or Medicare.

Unions have long wanted to unionize these workers, which of course would only RAISE the cost of home care. California, Oregon, Washington, New York, Illinois, Massachusetts, Vermont, and Missouri allow such unionization. But even in blue states, the unions are using their political muscle to tighten their grip.

New York Governor Kathy Hochul runs a state home health program that is clearly out of control. Enrollment has gone from 12,000 in 2015 to more than 250,000 today, and the cost is now a staggering $12 billion a year.

Hochul wants to consolidate the management of these providers to a single firm, which would makes it easier for the local Service Employees International Union to unionize the caregivers.

Montana Senator Steve Daines, who is the point man on Medicaid reform, says the Hochul gambit would cost the feds $5 billion.

Hochul is right that there are billions of dollars of fraud in the home health care program - and it’s a target rich environment for DOGE. But Hochul’s plan to monopolize the industry won't cut costs. It will raise them.
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4) Snow Woke and the Seven Dwarves

You've probably heard by now that Disney's abysmal remake of Snow White has bombed at the Box Office. The audiences who did see it, gave it two thumbs down in the IMDB ratings.
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The Wall Street Journal reports ([link removed]) that despite its commitment to DEI, the film "created a rift in the dwarf-actor community" because the movie doesn't use real dwarves (as the Wizard of Oz did).

We're economists not movie critics, but one of the subversive themes of the movie is that "who's the fairest of them all" doesn't apply to the beauty of the queen, but rather about economic fairness. The queen is evil because she doesn't share her wealth. It's an ode to socialism.

And it's a towering flop - as it should be. The $270 million film made less than $45 million at the box office over the weekend.
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5) Who’s the Most Liberal of Them All?

That would be college-miseducated women, as this remarkable poll from NBC News shows:
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The often 40 point distance between college-plus white women and white men with no degree, is a gaping chasm on every issue polled:

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College appears to be radicalizing women. This is just another reason not to be subsidizing these schools.
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6) Climate Change? Never Mind!

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