Guest Post by Martin Armstrong
The Congressional Budget Office (CBO) is a nonpartisan agency that simply calculates the numbers. The Biden Administration is constantly at odds with the CBO as they repeatedly point out why handouts are never free. Biden’s pre-midterm bribe to cancel student debt will come with a huge price tag — $400 billion.
Borrowers earning under $125,000 annually will receive a $10,000 debt cancelation, while Pell Grant recipients will see a $20,000 reduction. Everyone else will receive a bill in the form of taxes, and even those with loans forgiven will suffer. The CBO calculated the cost of the plan, which will cost $20 billion from September to December 2022 alone. The Biden Administration initially said that the plan would cost $240 billion over the next ten years. Yet, the CBO estimates that the cost of loan cancellation will continue for the next three decades for a total of $400 billion.
Yes, this will cause America’s deficit to rise. Instead of working to lower tuition costs or predatory student lending practices, Biden simply passed along the bill to the taxpayers and pretended the money owed simply vanished. Colleges can simply raise their fees with no repercussions. Glass Stegall has not been reinstated, and those facing bankruptcy cannot erase their student debt.
Glass Stegall was repealed under the Clintons, and even the Clintons’ top financial advisor, Larry Summers, is against Biden’s student loan forgiveness program. “It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will also tend to be inflationary by raising tuitions,” Summers wrote on his Twitter in August. This is simply a gimmick to buy voters who do not understand the repercussions.
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It is not a question of how much it costs, the democrats don’t care how much it costs. they are not paying for it, the important thing is how many votes will it buy?
I keep seeing these headlines. “Student Loan Forgiveness Will Cost” (the taxpayers, the gov, those who paid their own way …).
Haven’t seen as much headiness about what “education” costs. What all those “teachers,” “professors,” & “administrators” cost in money terms, in opportunity cost terms, in all that laying of false foundation terms.
Like Colbert’s “truthiness,” most of schoolish is just foolish. A pointy scam writ much larger than the likes of all the Madoffs there have ever been, combined.
Rule proving exception bits & pieces do not change the fact that it is counterfeit, that most of the people mulcting paychecks from it are counterfeit, that all the “money” involved is counterfeit.
But the opportunity costs are real. The deadend trajectories are real. And the plotting & scheming that has “created” this is real.
Beetles Lodge(in the totem)poles of “personal development,” “self-improvement,” “education,” “the american Dream,” etc & proceed to kill whole forests that refuse to be seen by the trees.
Rage & reggae agin the dyin’ of the light: bring on the lightning. Burn it down, near-oh & far. It is a main engine of the corruptocracy.
They cost a lot more, and do plenty of harm..
$400 Billion? Peanuts..that won’t buy a can of Coke in 10 years…
The government should not throw our pearls before swine. Only degrees earned from high rated colleges and tech schools should be considered in this program; rating programs already exist. Only degrees earned in STEM or other productive subjects should be considered in this program; no payments should be made for degrees in Sports, Marketing, Education, Business, Management, Communications, Black Studies, Ebonics, Government, Finance, Social Science, Art, Music, Community Organizing, etc.