American universities are supported by demand sure. The problem is if it wasn't for universities constantly pushing back to raise prices, which of course the government is like hellz yea raise prices no one could afford it. Most cant now.
Then of course you have the problem that the universities are pretty much running right along the collapse of having not enough money. All while every general education is like lets make a referendum and build MORE schools...which of course everyone agrees all while taxes skyrocket to build said schools...its really just a mess anywhere..
Not to mention the rich kids going to ivy league schools and spending huge bucks are rioting because they find out, like most of us have, its all a sham and a money grab and they are being fed crap they will never use after they get that nice REALLY EXPENSIVE piece of paper that says they are smart...
Hence the cheaper community colleges) It is more of an inequality (and unequal opportunity) issue, in my opinion. Not an issue with education per se.
It is still an issue, of course. =)