[jeza]

I agree that student loans don't do the student much justice and there must be a smarter way of funding education. In Australia our HECs loan system essentially funds research which may benefit society as a whole but hardly benefits students when course content is in some cases years out of date. As it's a loan system that graduates don't repay until their income reaches a certain threshold (essentially an extra tax), with government approval this has allowed course fees to creep upwards.

I don't agree with the general comment on inflation. For instance, I'm not aware of Australia's medicare system leading to higher medical treatment costs. If anything it provides a base level of care and limits the amount that any private medical provider could provide.

In any case I'm certain that private insurance companies facilitate the same kind of inflation as they don't seem too concerned about the cost of services rendered when they can simply pass that onto their customers as a higher premium (which they in turn benefit from). At least where government spending is concerned, inflation can be managed.