I’m far from an expert, but isn’t the assumption that the cost of cancelling these loans will also be paid back indirectly now that loan holders have less of a financial burden?
It feels to me like giving people lower levels of debt, access to affordable education, and a social safety net to allow risk taking would improve our economy overall. Of course this isn’t what the government has provided at the moment.
> It feels to me like giving people lower levels of debt, access to affordable education, and a social safety net to allow risk taking would improve our economy overall. Of course this isn’t what the government has provided at the moment.
Right. Student loan forgiveness does nothing about lowering cost of education. If anything it doubles down as people will be more willing to borrow more thinking they will get it forgiven. It also discourages others to pay back their loans. The reason schools are crazy expensive because we encourage students to take out uneconomical loans. Basically a no questions asked loan given to any 18 year old attending an accredited school. Private lenders are more discerning and will consider the cost, major and profile of the student and offer a lower rate than the federal rate for borrowers with strong profiles (e.g. going to med school vs majoring in pottery at NYU)
Exactly.
Better yet: send every adult 10k, no qualifying criteria required. For those that pay taxes, they can think of it as a tax cut. For those that have student debt, they can think of it as debt being cancelled. For everyone else, they can think of it as cash. Or as a "dividend" a la Andrew Yang.
Not saying it's a great idea, but it makes more sense than this govt unintended consequece du jour.
The commonality is the politicians who hand out that money. Politicians who operate on behalf of their donor class and not on behalf of the American people.
https://mitsloan.mit.edu/ideas-made-to-matter/heres-how-much...
Who paid that?
>The people that will pay is taxpayers and consumers through higher prices.
Are these the same taxpayers that now can't even afford cheaper prices because of the students debts or the debts of their children?
The two have nothing to do with each other.
I am against the financial sector bailouts as well, but it's important to note that the 2008 $700 billion bailouts were paid back
>> Early estimates for the bailout's risk cost were as much as $700 billion; however, TARP recovered $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit or an annualized rate of return of 0.6%, and perhaps a loss when adjusted for inflation.[3]
> I am all in for a more streamlined and lean State, but until that time, I think that Raytheon stock holders and Wall Street can share a bit of the current pie with the People
The people that will pay is taxpayers and consumers through higher prices. I'm fairly sure Wall Street will be fine
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati...