The price of college is rising, and for once, we can’t blame inflation. Spending increased by 38% at the median flagship school (the best known and usually the oldest public university in each state) between 2002 and 2022—and they passed the tab to students, contributing to the $1.6 trillion student debt crisis, according to the Wall Street Journal’s analysis of the 50 schools’ financial statements.
Driving the increase: Over the 20 years analyzed, the median flagship’s salaries and benefits rose by ~40%, spending on athletic coaches jumped by 50%, and millions of dollars were pumped into new construction and renovations, according to data the WSJ analyzed from the Knight-Newhouse College Athletics Database. Administrative costs have also become a greater share of institutional spending, per US News and the National Center for Education Statistics.
But that shiny new student union and all those higher salaries don’t pay for themselves. To afford them, every school in the Wall Street Journal’s analysis increased tuition and fee revenue per student by double digits from 2002–2022:
- At the University of Oklahoma, tuition and fees per student rose 166% in the two decades analyzed.
- Penn State, the most expensive flagship state school, costs the average student nearly $27,000 a year.
Big picture: Schools are spending so much because there’s no one to stop them. Economist James V. Koch found that trustees approve 98% of cost-increasing proposals at large public universities, and Holden Thorp, former chancellor of the University of North Carolina at Chapel Hill, told the WSJ that universities are just “devouring money.”
New York Post & MSNBC
It wasn’t just your LA friends—everyone thought the pandemic would officially kill New York City. But apparently, what doesn’t kill you makes you stronger: The city’s rents have rebounded…and then some.
Average rents in Manhattan hit a record high of $5,588 in July, according to a report from Miller Samuel and Douglas Elliman. It’s also the fourth month of record-breaking prices in the last five months, according to CNBC.
During the pandemic-triggered remote work revolution, economists warned that workers would flee to more affordable states and devastate the city’s real estate market. But despite nearly 400,000 people leaving Manhattan between June 2020 and June 2022, the average rent for apartments in the borough is now 30% higher than it was in 2019.
What happened? For starters, there’s still not enough housing on the island. And soaring interest rates are making it a lot more expensive for people to buy, so they are being pushed back into the rental market, giving prices an even bigger lift. Plus, the cost of housing in the city typically climbs throughout the summer so, spoiler alert: This month will likely break records too.
Record rental prices show that people are choosing to live in Manhattan despite not going in to work there. Manhattan offices were only at 48% of capacity last month, according to Kastle Systems.
Joe Robbins/Icon Sportswire via Getty Images
Stat: A new book has revealed that golf star Phil Mickelson likes to gamble on sports…a lot. Mickelson has bet more than $1 billion over the last three decades on sports, losing about $100 million while doing it, according to excerpts of Gambler: Secrets from a Life at Risk published by Fire Pit Collective. The author says that Mickelson made 858 wagers of $220,000 and more than 1,100 wagers of $110,000 between 2010 and 2014. He even attempted to bet $400,000 on Team USA (which he was playing on) at the 2012 Ryder Cup.
Quote: “Elon works on the technology and dreams up what’s next. I bring it to market.”
In her first TV interview as X CEO, Linda Yaccarino stressed to CNBC that she has autonomy from owner Elon Musk who, despite stepping down as chief executive, still appears at times to be running the ship. Yaccarino also said that the social media company was pretty close to breaking even, advertisers including Coca-Cola and State Farm had returned, and, after gutting its workforce, X is back in hiring mode.
Read: Grimes on living forever, dying on Mars, and giving Elon Musk ideas for tweets. (Wired)
Getting a 5/5 on the Brew’s Weekly News Quiz has been compared to the first bathroom break after a long car ride.
It’s that satisfying. Ace the quiz.
- Virgin Galactic successfully launched its first crew of tourists into space.
- The number of US suicides reached a record high last year, according to preliminary CDC data.
- Waymo and Cruise have gotten permission from California regulators to run robotaxis 24/7 in San Francisco.
- Amazon is scrapping 27 of its 30 private-label clothing brands to a) cut costs and b) fend off regulatory scrutiny, per the WSJ.
- Update: Lil Tay, the social media star whose Instagram account said she died on Wednesday, said she was very much alive and that her account was hacked.
- A New Zealand supermarket’s experiment using AI to generate recipes didn’t go well. The AI recommended meals such as deadly chlorine gas and “poison bread sandwiches.” Chefs, you’re safe for now.
Gas vs. electric cars: Which is cheaper to fill up? Here’s the answer.
Don’t worry about 10k steps. Four thousand per day is enough to keep you healthy, new research says.
Dunkin’ Spiked: What we know about the chain’s new line of hard iced coffee and iced tea.
The best meteor shower of the year peaks this weekend: Here’s what to know.
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Jigsaw: You gotta check out this jigsaw puzzle if you love a) strange musical instruments and b) mountainous terrain. Play the puzzle here.
Each of the nine letters in the equations below represents a different digit from 1 to 9. Your task is to figure out the integer value of each letter.
A + B = 9
B + C = 10
C + D = 9
D + E = 10
E + F = 9
F + G = 10
G + H = 9
H + I = 10