HIGHER EDUCATION BUBBLE UPDATE: Reader James Ingram emails:

Sorting out my old papers preparing to move I discovered my 1975 admission letter to a tier one private law school. Tuition was $3800. According to the USDOL BLS web site $3800 in 1975 dollars adjusted for inflation (using CPI) is $15960. Actual 2011 tuition at this school is $47,600 (not counting $3000 in required fees), 3 times inflation.

By contrast, starting salary at a tier one law firm in the city where this school is located when I graduated in 1977 (I was a transfer) was about $22 – 23,000. Adjusted for inflation this would be $82, 033 in 2011. Starting salaries at the same level firms in 2011 (if they are hiring) are $135 – 145,000, about 1.75 times inflation.

Yes, the cost of education — and the debt involved — has increased more rapidly than the payoff at the end. Plus, the payoff at the end has become considerably more uncertain.