Regardless, Biden’s acting as if. He’s talking to foreign leaders. He’s meeting with vaccine makers. He’s making big plans. He’s planning big things. But, apparently, he’s not progressive enough.
This week, for example, an organization called Justice Democrats accused Biden of appointing corporate-friendly insiders. They say these “corporate-friendly insiders […] will not help usher in the most progressive Democratic administration in generations.”
Certainly, Biden’s getting plenty of advice. The political puppet has left many strings to be pulled. Elizabeth Warren and Chuck Schumer want Biden to erase the first $50,000 of a person’s student loan debt. According to Schumer, “Joe Biden can do that with the pen as opposed to legislation.”
Will Biden listen to them? Will he listen to progressive superstar Alexandria Ocasio-Cortez? On Monday, Ms. Ocasio-Cortez, tweeted:
“Student loan forgiveness is good, actually.
“We should also push for tuition-free public colleges to avoid this huge debt bubble from financially decimating ppl every generation. It’s one of the easiest progressive policies to ‘pay for,’ w/ multiple avenues from a Wall St transaction tax to an ultra-wealth tax to cover it.”
Wow! Biden hasn’t even moved into the White House and things have gone stoopid silly. Where to begin?
Cut It Off
Without question, the student debt crisis is a disgrace. There are roughly 45 million student loan borrowers who owe on the order of $1.6 trillion. Most of this debt is from federal student loans.
The federal government is responsible for this mess. It supplied the credit that distorted the world in this way that would have otherwise been impossible. The gas of massive amounts of federal student loans inflated a higher education bubble…and an industry of entitled, fake intellectuals.
The business model generally requires signing credulous 18-year-olds up for massive amounts of government backed student loans. These young adults have been told since before they could count that college was the magical path to a bright future. But as tuition costs ran higher, propelled by more and more student loans, the value proposition no longer penciled out.
Yet forgiving student loans rewards a corrupted education industry. It allows colleges and universities to perpetuate in inflated product. Hence, rather than forgiving student debt, as the progressives desire, we offer another novel approach. That is, cut off government sponsored student loans. Scuttle the gravy train that supplies universities with undeserved wealth.
Now what would happen to all these high paid professors and fancy country club style college campuses without all this government sponsored debt? For starters, tuition prices would fall. Professor salaries would also fall. And college campuses would adjust to their more modest means.
Would the product – the education – be inferior? Not for the technical disciplines that matter. Smaller budgets, however, would help trim the fat, and eliminate many of the nonsense quack ‘studies’ courses. These courses have little redeeming value and only exist because they’re funded by an abundance of federal student loans.
Tuition-free public colleges at the expense of the rich, on the other hand, would certainly result in an inferior education. They would turn college into an extension of high school. Grades 13 through 16 would become daycare for young adults. Students would graduate as unprepared as today’s 12th graders. What a ridiculous waste of time and money.
The U.S. Government Will Inflate To The Bitter End
The point is, $1.6 trillion in government sponsored student loan debt has piled up like a rush-hour wreck on the 405 Freeway through west Los Angeles. This is a problem of the governments making. And government solutions will only make things worse. Here’s why?
Forgiving student loan debt with the stroke of a pen does not make it go away. Debt, remember, is unearned money that’s borrowed from the future. It must either be repaid or defaulted on. Given that this is government sponsored debt, the act of erasing it merely transfers it from student borrowers to the American public – that’s you.
And how will the American public pay for it? U.S. government revenue for fiscal year 2020 was $3.42 trillion. Yet spending was $6.55 trillion. The difference – a $3.13 trillion deficit – was made up with debt.
Nancy Pelosi is currently pushing for Congress to adopt her $3.4 trillion coronavirus bailout package. Tack on $1.6 trillion for student loan forgiveness and we’re up to $5 trillion. And that’s before accounting for Medicare, agriculture, defense, social security, transportation, veterans affairs, and the many other federal programs. And what about all the other demands Biden somehow owes?
The Justice Democrats are calling “for Biden to create an Office of Climate Mobilization on Day 1.” What an Office of Climate Mobilization is, exactly, is unclear. But it sounds expensive. And guess who will get to pay for it? You will.
You see where all roads lead back to, right?
The dead end of dollar debasement. The U.S. government will inflate to the bitter end. And Creepy Joe – with the progressives egging him on – is just the man for the job.
for Economic Prism