This again?

A recent National Review story makes the claim that Biden is now contemplating the forgiveness of $50,000 in student loan debt. Are you kidding me?

Schumer: Biden ‘Considering’ Forgiving $50,000 in Student Loan Debt via Executive Action

According to the story cited above:

“[Schumer] said they are calling on Biden to take executive action to administratively cancel up to $50,000 in student loan debt for federal student loan borrowers with an income below $125,000, and to do so in a way that the borrowers would have no tax liability when they receive the forgiveness.”

Wait a minute – these students are making up to $125,p000 per year only because the American taxpayer loaned them the money to attend college. So now they want a nice Beemer to impress the ladies/gentlemen, but they can’t afford to pay back the student loan that made it all possible? Really?

I’d like to make a few salient points:

1) If we don’t collect this money from the students who benefited from the loans – money that was collected as taxes from hard-working Americans, money that we are counting on to replenish the accounts from which it was taken – then from whom will we collect? I know it’s easy to see this as “government money”, but it’s not – it’s your money. And without the return of these funds, the government won’t have the money to spend. That means they’ll need to tax you to make up the difference due to this obscene liberal vote-buying scheme.

2) What incentive do students have to work hard and finish college quickly, if staying a few extra years on the government dole will simply be forgiven?

3) What incentive do students have to choose a useful but difficult degree, like something in the STEM disciplines, if they don’t have to repay their student loans? What incentive do they have to NOT fulfill their pet desire for a “college” degree in a subject of great interest (or ease) to them, but of no or limited value to society?

DO NOT forgive these student loans, Mr. Biden. To do so will be an insult to American taxpayers and will incentivize poor decisions by college students. Is the lesson that we are not to be held accountable for our actions, that the government is always there to bail you out, really the message we want to send to today’s youth?

Oh, yeah – I guess it is. How else can we make sure that the next generation is dependent on the government (and thus politicians) for their daily alms?

Silly me…

The dismantling of the Electoral College

An interesting read from the National Review on the left’s ongoing attempt to effectively circumvent the Constitution and eliminate the Electoral College via the NPVIC:

The War on the Electoral College Has Only Just Begun

Frankly, I don’t know why the residents of any a state would allow its electoral college votes to be based on the ballots cast by the residents of another state. It boggles the mind…

Soma for the masses

House passes historic bill to end federal marijuana prohibition

As a Libertarian, I am for more personal freedom and less government oversight – including the freedom to use drugs, even though I personally do not. Also as a result of my Libertarian leanings, I expect drug users to take responsibility for their actions – even those actions committed while under the influence of drugs they willingly consume.

However, I am against any law that adds a tax to a “freedom” (why should a freedom be taxed?!?), particularly when the tax is used to fulfill political objectives. In this case the house bill’s tax component (a 5% sales tax) provides for a grant fund (pronounced “taxpayer-funded, government-controlled political slush fund) to pay for activities not directly related to the regulation of pot retailers or wholesalers. Taxes collected from industry, when necessary, should cover only the costs of regulating that industry and nothing more.

I am also against any law that includes perverse forms of affirmative action or other racial quotas. In this case the house bill noted above requires that the Bureau of Labor Statistics collect demographic data on cannabis business owners and their employees to ensure that people of color/economically disadvantaged people are participating in the industry. I consider such participation requirements as prejudice as those excluding participation, and I cannot support any law that includes such requirements.

Finally, I am concerned that government sponsorship or support of drugs such as marijuana will result in their becoming the “soma” (ref. Brave New World, Aldous Huxley, (c) 1932) of our age. By granting a “right” the government actually controls – particularly one that leads to physical or mental addiction – politicians can retain control over the votes of users. Perhaps that is the true purpose of such laws.

Why I support the 2nd Amendment

People institute governments among themselves to preserve specific freedoms. The two most commonly sought freedoms are the freedom to live one’s life unfettered by others (the right to live), and the freedom to enjoy the fruit of one’s labor (the right to personal property). But without the right and the means to defend one’s life and property, freedom is just a word.

Hence my support for the 2nd Amendment of the United States Constitution.

A new mantra

When government politicians buy votes with taxpayer money via wealth redistribution, they incentivize people to become dependent on the government (and thus these same politicians) for their daily alms. Unfortunately, this also has the effect of dis-incentivizing productivity.

We are products of nature, which tends towards efficiency. What animal works to be more productive than is necessary to meet their desires or needs, and why should people be any different? What do you think will happen when people are rewarded without concern for their relative productivity? Do you really think that they’ll become more productive members of society, or less? And what will be the impact on you when hard work becomes a blank check written against your life for the benefit of others?

I’ve said it before but I’ll say it again: The only way we’ll all have more is if we produce more. It does not matter how much money you redistribute to those willing to spend it on their own needs – if we increase the available money supply (by taking it from investors and giving it to spenders) without producing more then the price of what is already produced will simply increase. If we instead increase production without increasing the money supply (i.e. increase our productivity) then more will be available at a lower cost. We must reward productivity, not idleness, if we all want to have a better life and more “things”.

My fear is that under a government-mandated wealth redistribution scheme people will not work hard to be productive (or at least as productive as required to meet their desires/needs) , but will instead fight to become the least productive with the highest total (government “benefits” + salary) earnings. The goal will be, simply put, to get more out of the system than one puts into it. Those foolish enough to be overly productive will simply have their “excess” productivity looted for the benefit of those less productive.

How will this end? The productive will give up; the lazy will give in. They will each chant a new mantra, one attributable to a long-time friend of mine: “I will become a burden upon society, because society has become a burden upon me.” (copyright BDawg 1991)

Hallelujah!

Neither a borrower nor a lender be…

Landlords and private mortgage holders are expected to suffer losses as a result of the legal protections offered to homeowners and tenants during COVID-19, but the government is billing refinance mortgages (via a fee of 0.5%) to cover their own losses.

Adverse Market Refinance Fee Implementation now December 1

One online story related the new fee to “insurance” meant to cover high-risk loans. But why should low-risk borrowers pay for the risk associated with high-risk loans? Are you expected to pay for the driving habits of your neighbor when insuring your own car? If low-risk individuals are forced to subsidize high-risk behavior, what incentive is there to be low-risk?

Prediction: Since the fee is charged to the originating banks, and since the banks may recoup the fee via higher interest rates, I predict that this fee will result in a disproportionate increase in interest rate among high-risk borrowers. It’s not the result the regulators wanted, but the genie rarely cooperates when it comes to unintended consequences (link to genie cartoon).