Our beloved leader-in-chief, dear, dear Uncle Joe, has decided and announced he is forgiving $10,000 or $20,000 (I admit to being confused which) of student loan debt for each individual borrower. I guess it depends on the particular type of student loan involved – but all of the types of loans are unpaid loans. Nobody who either paid off their loans – or never had them – is getting anything from sweet ole Uncle Joe.
(The folks over at Paradigm (formerly Agora) call central bank digital currency “Biden bucks” but I think the term fits this give-away also.)
Of course, the denizens of 1600 Pennsylvania Avenue lied about the total costs of this loan forgiveness – which was purely a decree (not even an executive order, so far). We are told that the cost would be $240 billion spread over ten years: 24 gigabucks per year. But… independent third-party estimates tell us it really is somewhere between $400 billion and $700 billion. That means that if we have 330 million people in the Fifty States, that is between $1000 and $2000 PER PERSON – from newborns (those allowed to live) to centenarians. When you figure out who is really paying taxes, it is more like $4000 to $8000 per person.
Lots of people are writing lots about this humongous giveaway.
Lots of people remark on the obvious: all those people who took out student loans and repaid them in full. (That group includes two of us here at TPOL; it took a decade or more). We don’t know anyone like that, but there are those of our age group and younger who paid full tuition without taking out any student loans and obviously made financial sacrifices to do so. Others did not go to college and went straight to work and paid taxes, as two of the younger people did here at TPOL.
What about their sacrifices? Still others paid for college by serving in the military: one of us had three years of college (on a six-year plan) paid for mostly by a military scholarship, in return for eleven years on active duty (not counting the remaining twelve years of service). (That was in addition to working part-time or even full-time for the other four years, PLUS some student loans.)
Today, there are many who paid for college with four-year enlistments (or longer) and were able to get tuition assistance because of their military services. And there are some who are not “means tested” and have to borrow the money for college at a market rate – no government guarantees. And they’ve paid it back, laboriously, month-after-month.
Everyone of those people made sacrifices before, during or after college: sometimes all three! They paid off loans, saved so they didn’t need loans, went straight to work and paid taxes or served in the military.
Joe Biden, we are told, loves hard workers and people like that. He loves kicking them in the teeth. What do they get? Nada? They are now being asked to pay even more taxes to cover the costs of loan forgiveness for doctors, lawyers, and politicians who took out student loans, make good money, and now don’t want to pay it back?
This isn’t a “hare-brained student loan forgiveness scheme” as some claim. It is more than simple unfairness to most Americans. It is a dollar-for-dollar wealth transfer to those who get some or all of their loans forgiven. (Even if they have to pay taxes on the forgiveness.) We can be sure: some are already planning vacations or big-ticket purchases with increased paychecks – not having to make those monthly loan payments. It is going to continue the constant floodng of the economy with money. Even while supply is still short on so many things.
Remember inflation? Economic growth takes another hit.
But so does the lower class and lower middle class. The bulk of the forgiveness goes to the upper middle class and the 25% or so in the top earnings bracket (as reported by Tom Woods, among others). So who pays with increased prices for goods and services – food, housing, fuel, autos, and more? The lowest income people still have all the freebies from governments. It is the lower- and mid-middle class: the same people that cling to their guns and their God. To ideas of liberty: THEY are the losers.
Which is exactly what BOTH wings of the boots-on-your-neck party want. Because that means more power, more wealth, more stability, for them. Or so they think.
What do YOU think?