California students protested this week when the State hiked tuition by a staggering 32%.  In-state tuition at the UC system will rise from $7,788 to $10,302 to cover the reduction in subsidies imposed by California's ongoing fiscal train wreck.

But Tim Haab at Environmental Economics argues the protesters are misguided: given a finite pool of education, raising tuition has the predictable effect of reducing the number of middle-income students who attend— the students unable to afford it but not so poor as to qualify for aid.  Maintaining tuition at current levels and limiting enrollment would have even more dire and unpredictable effects. 

In a system where demand exceeds supply, and in which iresponsible leadership has brought the state to the verge of bankruptcy, there are no good options.  Someone is going to lose.  So do you provide as much education for as many as you can, or do you provide a fewer number of slots at lower cost?  Haab argues that the State has made the right decision under the circumstances.