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The Student Debt Appeasement (Vol. 67)

Updated: Feb 7, 2023

analyticsbox | Sep 01, 2022


Student Loans Forgiven

How does this make any sense?

"Just how much of my hard earned money is someone else entitled to?"

That is a question we should all be asking. The proposal to forgive student debt fails the ‘common sense’ test for many reasons. But let’s start with a few things that seem quite appropriate to bring up:

  • President Biden stated that he would never propose spending that was not paid for, this is not paid for.

  • President Biden and Speaker Pelosi both stated in 2021 that they did not have the power to forgive student debt.

  • President Biden has stated in the past, ‘the reason I'm a Democrat is because the essence of the Democratic Party is an abhorrence of the abuse of power…’

  • President Biden pledged to the progressives he would forgive at least 10,000 of debt, so to appease them, he did it by abusing his power, even though he said he didn’t have that power.

  • This is an additional 300+ Billion of debt relief for a few paid for by many - the taxpayers.

  • This is not a program submitted to Congress for approval. Isn't Congress supposed to deal with spending matters? That is what the Constitution says.

  • Some compare this to the PPP forgiveness program, we might not agree with that program, but that was submitted to and passed by Congress.

Let’s call it what it is: all of us taxpayers paying for something we got no benefit from. How is that fair? What about the folks that didn't go to college, or went and paid for the experience, or those that paid off their student debt, should we give them $10,000 too, ‘to be fair’? Apparently money is no object when appeasing constituents, so let’s appease everyone, buy some more votes?? Who cares? I will tell you who cares, our kids and grandkids, that’s who. With reckless abandon, we are destroying this once great country.

And the debt isn't really forgiven, it is just paid for by others - the taxpayers. And by doing this, we add over 300 Billion to our debt or tax load, depending on how we pay for it. It is more spending no matter what you call it. That is more inflation for all (want to call this Executive Action ‘the Inflation Reduction’ act too?).

The loan recipients got benefits, if they used the money wisely, if they didn’t get value, that is on them, not us. And most of the beneficiaries of this forgiveness are upper income folks, and they have the means to pay them - why should the taxpayers subsidize them? FYI, over 90% of the student debt is paid as scheduled.

If you are not aware, there are already numerous programs to help those with student debts that are struggling to pay them. Another reason that this is not needed, just an appeasement to the progressives, who, by the way, want even more forgiveness.

And if you weren't aware of this, the ‘freeze’ of loan payments extended through year end, is not a ‘deferment’ of interest, it is forgiveness of that interest for over 2 years. This is also costing taxpayers plenty, about $300 Billion which also adds to the deficit (the government student loan program was supposed to earn 100 Billion dollars, it will actually lose 200 Billion Dollars). Just another ‘well intentioned’ government program that didn't work (me thinks the government is at its best when it does nothing).

This appeasement is so unfair, unwise, stupid and bad for the economy, even many of the President’s own party do not support this. That is why it is not proposed to Congress, this would never pass.

BOTTOM LINE

Bad economic policy does not become good policy because it buys some votes. This policy is so bad, and probably unconstitutional, it should never see the light of day. Let your representatives know and have them get this reversed if it survives the legal test, which is sure to come.

LEARN ECONOMICS, THEN VOTE SMART

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