I predicted that the Biden administration would use this “carrot” right up to the midterm election. Guess it starts now:
White House extends federal student loan repayment pause after heavy progressive criticism
This is essentially using taxpayer money (approximately $1.6 TRILLION of it) to buy votes – 45 million of them. With a total voting-age citizen population of ~232 million, this amounts to nearly 20% of the voting population who will be beholden to Biden and the Democrats in the hope that they cancel their student debt.
And it’s wrong. Let me count the ways:
1) It’s $1.6 TRILLION DOLLARS!!! Are you KIDDING ME? That’s damn near the annual budget of the United States.
2) This isn’t non-existent money, fictional money – it was paid out of the treasury, will have to be made up from somewhere. This amount is equal to collecting ~$5000 from each and every person living in the U.S. – legal, illegal, citizen, non-citizen, woman and child. That’s a lot of money.
3) But, don’t worry! The “Squad” will make the 1% pay! Yeah, THAT’S the ticket… make the 1% pay. For the 1% (this is one out of every one hundred people, for you math-challenged, “math is racist” types), this means an additional tax burden of $500,000 per person (not household). How long before they move somewhere else – and take their job-creating companies with them? How long before Tesla is a Japanese auto manufacturer? Think not? Think Detroit…
4) Only the student’s benefited from the money. Why should others have to pay?
5) How is this any different than someone borrowing money to buy a car, then wanting the government to forgive their loan? Why don’t we just forgive their car and mortgage loans? Wouldn’t that put more money into the economy, just like paying off people’s college loans? Oh, wait… inflation from more money not backed by production flooding the economy…
6) Many of us worked through college to avoid graduating with debt – where’s our check? How about those who paid their debt dutifully, before the Democrats promised to pay? Knowing that politicians were willing to buy my vote by paying off my student loans would certainly encourage people to pay their loans, wouldn’t it (yeah, right!)?
There are many other reasons why this is bad; use your imagination. And your vote!