I returned to college for a day to sit in on a lecture from my economics professor, Jack Chambless. It felt a bit strange to be back on campus but I was greeted warmly by my professor. Today’s lecture was about government interference in the free market and supply and demand, but I’ll just focus on supply and demand.
Valencia College experiences a shortage of available parking spots and right now it costs nothing to park. Professor Chambless proposed a plan that would help solve this problem.
Auction off the parking spots.
According to the Law of Supply and Demand, when supply is low and demand is high, prices must increase in order to reach near equilibrium. The situation we have at Valencia College is, not enough parking spots but high demand.
Professor Chambless suggested that an interactive map (on the college’s website) of every parking lot on campus should be created and students can then enter bids for the parking spots they want. The spots closer to the classrooms would be more expensive due to higher demand.
He also suggested a hanging parking tag instead of a sticker on your car. This would allow a student to rent out their spot when they’re not using it.
The benefits of this plan would be less time wasted “vulturing” around looking for a spot, and less carbon dioxide would be emitted. Additionally, Valencia College would enjoy raking in more profit and the students wouldn’t have to play a dangerous game of musical chairs.
Students with a higher GPA are guaranteed a spot.
Hypothetically speaking, students who have a 3.0 GPA or higher would get first priority on prime parking spots. You might say, “This is unfair to poor performing students!” Would it be fair for a 1.9 GPA student, who doesn’t care about college, to take up a spot? It would be more efficient to auction spots to students who are serious about their education.
No more long lines.
Some of you might suggest, “Get to school twenty minutes early,” but why waste your time and gas when you could be sleeping in for a little longer? Professor Chambless argues, “Waiting in lines is communism.” It sounds a bit ridiculous but within the context of today’s lecture, it makes sense.
In every country that attempted to implement communism or socialism (which is a step down from communism), bread lines were common and people starved or didn’t get the goods and services they needed on time. These lines were common because the government banned businesses from setting their own prices, claiming it wouldn’t be fair to the poor.
Potential problems.
I like Professor Chambless’ plan and I think it would free up more parking spots. Valencia College is an ideal place to implement a test run because it’s much smaller and there are not as many students per campus, compared to other colleges. Most students live with their families so they have enough money to pay for parking permits.
However, I have a few concerns. What happens if a high GPA student fails a few classes due to serious health problems? Would he or she lose their parking spot?
What if a student has a high GPA but they simply can’t afford to shell out more money because they have to pay bills, rent, and other costs?
I know this would be highly unlikely but let’s say eighty percent of students who drive to school all get high grades, but now parking is scarce again. An economist’s solution would be to keep increasing prices, but there’s only so much students can afford before they transfer to another college or take online classes. Valencia’s enrollment would go down and online classes don’t have the same quality of teaching as in-person lectures.
Are there any solutions to my questions? I think more scholarships would be created. If clubs on campus started covering the parking costs for high GPA members, it would increase club membership. Valencia College should allow the clubs to fundraise and keep all of the profit that way they can give out parking scholarships.
Overall, I think this plan is a step in the right direction. It would incentivize students to maintain higher grades and take personal responsibility for their expenses. If you have any ideas on how to solve the shortage of parking on college campuses, feel free to drop a comment.