President Joe Biden's plan to wipe away some of the student loan debt is a perfect example of his administration's bad policymaking.
The wrong incentives are provided. Executive power is abused by it. He doesn't spend enough to satisfy his party's progressive base It doesn't do anything to get to the root of the problem.
It is reported that the decision will eliminate $10,000 in debt for borrowers who make less than $125,000. Biden has resisted cancellation of his student debt. Biden is leaving the door open to further cancellation by refusing to restart repayments that were paused during the Pandemic.
The benefit for people whose degrees give them a leg up in the economy will be funded by taxes on working-class people. The advanced degrees of lawyers, bankers and other white-collar professions will be subsidized by the very families who worry about struggling with bills at the kitchen table. Future generations will have more federal debt due to the fact that millions were spared their obligations.
Conservatives should never be accused of taxing the poor to help the rich. Biden is doing it, and he will turn more spending loose in an already inflationary economy.
People who did things the right way are also punished. Yeah, suckers.
If you paid back loans or never incurred them, your reward is to help people who didn't think twice about borrowing tens of thousands of dollars to get an English degree
Biden's policy will encourage irresponsible spending and foolish debt for students. You get more of it if you subsidize something. Get ready for higher tuition and more spending.
The government will pay for the reform of colleges and universities if they can convince young borrowers. Why would a kid take the sober but less-satisfying step of getting basic credits for cheap at a community college when taxpayers will pay for the full four years?
The extension of the moratorium on payments is indefensible. The administration is trying to convince us that the economy isn't real. It redefined recession and celebrated gas-price reductions that still leave us paying at least 50% more than when the president took office. Most of us have known for a long time that we have to learn to live with it.
The administration wants you to believe that no one can be forced to make a payment on their student loans because of the economic harm of the swine flu.
The people who constantly tut-tut about the threat of authoritarianism and threats to our democratic norms are creating a benefit without giving much thought to Congress. The imperial sweep of such policymaking is more problematic for the republic than a few odd people showing up at school board meetings.
There is an issue that needs to be addressed. We don't want a lot of people to build wealth because they were led into bad decisions when they were younger. More than a third of students in Texas carry debt. A bachelor's degree candidate had a lot of money to spare.
Too many people were sold a bill of goods and encouraged to borrow money to finish school.
Better ways exist. There is a legal remedy for people who can't pay their debts. Having the president reveal the big prize is nicer than having him reveal it. A fresh start is provided by the system.
Student debt can't be discharged in Chapter 11. It is a dumb policy that Congress can address.
If there is a lot of loan forgiveness, we should get more out of it. Exchange debt relief for public service, such as years spent teaching in needy schools, working as a doctor or nurse in a rural community, or providing legal assistance to the poor, is possible.
Where will it finish? Is it a good idea for the government to pay off car loans. Business loans, what about them?
If we gave young people money to buy a truck and plumbing or lawn equipment than they would spend less time learning Jane Austen.
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