I understand. But he did use some math! But inflation might be. There are an estimated 43 million student loan debt holders in the U.S. That means that if the max forgiveness per person is just $10,000, we could see up to $430 billion in loan forgiveness. That’s a significant sum — almost 1/4 of the size of Biden’s Covid relief bill back in early 2021. Now, if student loan forgiveness raised inflation by 0.7 percentage points, that wouldn’t be a huge increase, especially with inflation now at over 8%. But it could help cement a popular belief that the U.S. government simply doesn’t care about inflation that much. And that could help kick off a spiral of rising prices, as high expectations become a self-fulfilling prophecy. And that spiral would absolutely necessitate the Fed raising interest rates to punishing levels, causing a deep and painful recession.
This would be like providing amnesty for illegals without halting the influx of immigrants first. Solve the problem at the top, with tuition rates and loan practices. Then worry about forgiveness if needed.
I would like a political system that is capable of addressing problems, but that's not what we have. We have a sorta-king that can decree things within a legally contained framework.
I’m of the belief that when you take out a loan then you’re agreeing to pay back that loan. However it appears the only thing being forgiven is the interest payments on that loan. I have no problem with that because I don’t believe the government should be in the for profit savings and loan business to begin with.
Not trying to call you out here, but if I'm reading right that you never considered that student loans got so out of control that they limited people's economc choices, it makes me wonder how many other people fall into that category. That's literally the entire point. The cost of education has become disproportional to the return on investment, even for successful individuals who had a good college experience and have a good job contributing to their communities.
Is it any moreso than any other kind of debt though? Thats why it's the rat race. Get in debt and forever chase the cheese
Most other debt is dischargeable though, to me that's the major difference. Student loans as they stand are essentially a form of debt peonage.
No offense taken. Guilty as charged. I should not have said that I never considered it. I considered it a bit, but I did not appreciate the full extent of it. I only considered it in terms of limiting career choices in public service less paying sectors. I did not consider how big a weight student loan debt was on recent generations. I freely admit that being a 60 year-old that is relatively comfortable and paid for my daughter's education without having her incur debt, I don't fully appreciate the reality of so many. This isn't the only area. I live very close to downtown where I work and sometimes walk home. I don't appreciate the impact of traffic generally. I also don't appreciate the cost of housing. There is something less if you don't experience it personally. I try to be aware of the fact that the world does not work in the last 15 years the way it did for me when I graduated high school and then college, which were not nearly as pressure filled. My wife and I often note that we just presumed that we could afford a decent lifestyle, a house, educating children, vacations, etc., which has been the case. We didn't have near the same pressures, although our parents had it even easier. That does subconsciously impact my worldview, but I try to make myself aware of it, and aware of the fact that my presumptions that the economy will work if you just participate in a conventional way is a function of an experience from a different time. I try to make myself aware, which is why I read things like that column. And why I noted was a little bit of chagrin that I had not thought of it fully.
I'm enjoying how the dems, unlike those on the right, are principled and not afraid to criticize a policy of a man they otherwise support.
And who's going to pay for the tax breaks Trump gave the rich? Didn't hear any righties complaining about that, did we?
Wonder how much cancelling the interest and not the principle would soften any potential inflationary ramifications.
The cost of private education is out of control. The cost of state universities, such as those in Florida, are very reasonable. People choose to go out of state or to private schools. That’s on them.
To be fair… probably a weak topic that has low impact score — not many Dems will suddenly bolt Right. There are true conservatives here that have been critical of their own ilk on this site. Not so much from some Trumpians.
Dictator Joe Biden Acts Unilaterally in an Illegal Action of Forgiving Student Loan Debt. He has committed an impeachable offense. Joe Biden Announces Decision to Forgive up to $20,000 in Student Debt per Person (breitbart.com) Besides costing over $300 billion, Biden also extended student loan payment moritorium through the end of the year. It's more than the inflation non-reduction action is going to save in 10 years, if anything. This action is highly inflationary. Biden's Student Loan Scheme Would Cost More in First Year Than Inflation Reduction Act Cuts Deficits Over 10 Years (breitbart.com) Biden has acted illegally in an impeachable action which is beyond the power of the executive. It's going to come back to bite him on his butt as well it should.
