Recent talks by President Barack Obama highlight his personal mission to make higher education more affordable. Affluence at home and around the world increases the demand for education. This increase partially explains the doubling of average tuition and fees at four-year U.S. universities during the past 20 years.
Rising educational costs threaten prosperity, according to David Weisel of the Wall Street Journal. The solution to rising costs, however, must be addressed in terms of two fundamental realities that characterize the educational sector at all levels, namely difficulties associated with increasing productivity and the labor intensity of education.