They’re played a huge role; thus the need for reform. That bit about the GOP was not necessary…….in this case.
From inception PPP was forgivable. The people equating the two are either stupid or liars. The twitterization of the Democratic Party is laughable.
I'm not sure where the disconnect is coming in. "All animals are equal, but some animals are more equal than others." Loans that go to trump cronies and republicans, mega corporations, entertainers, etc. THOSE are "forgivable." But loans that go to a family trying to make an extra 10k a year by taking night courses at a Junior College. Throw em to the wolves. PS. It also makes me so happy that all these phony politicians spouting off about how egregious this measure is is getting absolutely DRAGGED on social media. Dark Brandon.
I am not an economist but it seems to be an oversimplification based upon a lot of speculation. Many segments of society- airlines, financial institutions, farmers, among others have had debt forgiven without the resulting disastrous economic consequences that people are predicting for student loans. Why would the forgiveness of student loans have an impact that forgiveness of other larger and more comprehensive forgiveness packages didn't have? Until someone can answer that question, the objections to the plan have to be viewed as political.
It isn’t political for me, I more often than not vote Democrat. I don’t think there will be appreciable short term impacts as nothing really changes vs the present where nobody is paying anything. I am more concerned with the precedent and the degradation of the system. Once it is done, there will be demands for it to be done again and it modifies behavior. Plus I don’t like the optics of working class non college aged people paying for college debt or middle and upper middle class people.
I didn’t necessarily say he has negatively impacted me personally except for the associated financial loss I (and you) will suffer for years to come. I retired from the commercial healthcare construction business at the end of 2021; most of my hospital clients put the brakes on for many reasons associated with the dismal US economy and related. My volume of work decreased dramatically and played a big part in my decision to retire early. My point was he has harmed this country in so many ways. Surely, there existed issues not of his doing, like the war and Covid. But, he is so weak and frail and ill suited for the job. Do you believe he has done a good job representing the US?
Interesting indeed. I could tell it must’ve been someone young running that account based on the sharpness of the replies
Up next, we’ll find out the validity of these senators “loans”, and what % they pocketed. PPP was rife with fraud across the board, and lots of it unnecessary, so I’d probably STHU if I was high profile. While it is not an apt comparison, they are both at the expense of the taxpayer, and this is some unexpected gangsta shit from the Biden WH.
I think people are leaving out the human element of this loan forgiveness debacle. The majority that will have loans forgiven will be back in just as much debt within 2 yrs. They will see it as an invitation to spend/debt because they will consider it free/found money. It won't be put into mortgages or investments or even pay off other debt. It will go into frivolous vacations, phone/tv /game console upgrades etc. I think we will see credit card debt skyrocket. And the students that are now taking on debt will just sit and wait for the next Dem president to do the same thing 10 yrs from now.
Payments will also start back up, which is deflationary. But I actually think one of the largest impacts will be from the changes to income based repayment. It’s now only 5% of discretionary income (0% if you’re below 225% of the federal poverty line) and you don’t capitalize interest if you make those minimum payments (even a “payment” of $0). Do that for 10 years, and 12k is forgiven, then the rest at 20 years. This kind of structure is going to incentivize students to take the biggest loan possible every semester they are in school, because there’s really no downside. You’ll only be required to pay a nominal amount each month, and can safely carry a high balance, essentially interest free, until it’s wiped away no questions asked after 20 years. Personally, I worked during college and tried to take the smallest loans possible, exactly because I didn’t want a big balance following me and accruing interest after I graduated. If this kind of plan were available back then, I absolutely would have maxed out and not thought twice about it. As people realize this, we’re going to see big effects on student behavior, and likely high localized inflation around college towns as students are suddenly flush with a lot more borrowed cash than usual. IMO we have to strike a balance. I don’t want to burden kids with debt they can’t pay, but at the same time I don’t know if it’s wise to tell them to just borrow everything they can, consequence free. The better course, imo, would be to make all state universities and community colleges tuition free. Have loans available for living expenses, but require they be paid back.
I thought the original $50k blanket forgiveness the far left proposed was ludicrous (and also was obviously never going to happen anyway). $10k with conditions on income seems a reasonable “compromise”. I agree it won’t solve the bigger problem, but it could also help literally hundreds of thousands or millions of people get some small degree of relief, and I don’t doubt for some of these people it will feel like a weight lifted off their shoulders. Sadly $10k or even $20k probably doesn’t do much for those with truly excessive debt - which is the bigger problem. Knocking $10k off $100k basically just changes their payment slightly, but isn’t a game changer. But I’m also not in favor of a blanket forgiveness for larger amounts, I think it needs strings, like a 10 years public service (for teachers or civil servants) or military service. Beyond that, if a person can demonstrate dire financial straights there should be a sort of bankruptcy process specific to these student loans. Still, even though I wouldn’t say I’m a fan of this forgiveness strategy, LOL at anyone stumping for politicians with up to 9 figure PPP loans. Those people are massive hypocrites. Full stop.
Tell me you're a boomer without telling me you're a boomer. "Phone/tv/vidja game console upgrades" Be real.
