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US Colleges Face a Shrinking Student Pipeline

Bloomberg Markets
Saturday, August 22, 2026 at 2:35 PM
~4 min read
Inflation

Original Report

US colleges are confronting a prolonged demographic squeeze as the number of high school graduates, after peaking in 2025, is projected to decline 13% through 2041, putting particular pressure on...

US colleges are confronting a prolonged demographic squeeze as the number of high school graduates, after peaking in 2025, is projected to decline 13% through 2041, putting particular pressure on regional schools with limited endowments. Joining David Gura and Christina Ruffini on Bloomberg This Weekend is Carleton College Professor of Economics Nathan Grawe who explains that institutions are cutting programs, competing harder for students and emphasizing affordability and return on investment, while inflation-adjusted tuition at public four-year colleges has fallen 7% over the past decade. (Source: Bloomberg)

Glass House Analysis

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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