Re:Cancelling student debt is essentially printing money
by am1on on Friday August 26, 2022 @12:45PM
(#32609781)
technically it is destroying money due to the way loans are treated on bank balance sheets.
a loan is an asset to a bank and a liability to a borrower.
forgiving a loan destroys it as an asset (money-like) and causes deflation from a money supply standpoint even if it does increase the buying potential of a borrower.
Since all federal student loans are still in payback pauses for covid this will have negligible effects
a loan is an asset to a bank and a liability to a borrower.
forgiving a loan destroys it as an asset (money-like) and causes deflation from a money supply standpoint even if it does increase the buying potential of a borrower.
Since all federal student loans are still in payback pauses for covid this will have negligible effects