Student Debt Cancellation Is Extremely Unfair – Here Are 10 Reasons Why…
ZeroHedge, Jun 04, 2024 – Authored by Mike Shedlock via MishTalk.com, – Excerpts:
Deeply Unfair – There is something about this “cancel” student debt bill that just feels *deeply* unfair to me.
Why have taxes from plumbers & electricians go towards paying the unpaid bills of college & masters grads?…
10 Reasons Why Student Debt Cancellation is Unfair
- It is unfair to those who sacrificed to pay off their student loans and it’s unfair to those who foot the bill.
- It is an upward transfer of wealth. The plumber pays for someone else’s college education.
- It encourages going to college when there might be better choices such as learning a trade. And It creates incentive to take on new student loans.
- It is blatant election year bribe to college students and college graduates.
- It creates creates a moral hazard for college administrators to sell useless degrees creating another overhang of new student debt.
- It creates a moral hazard for students who might feel that their debt should be forgiven in the future
- It subsidizes poor decision-making such as majoring in useless degrees including gender studies, anthropology, archeology, art history, music, culinary arts, fashion design, philosophy, etc.
- The president has no power to forgive student loans. Doing so creates another precedent for presidential rule by decree. This is too big a financial decision not to involve Congress. The current student loan program was authorized by Congress and contains no such authority to the president.
- Biden is openly flouting the Supreme court, another dangerous precedent.
- Free money is highly inflationary. .
[Note] – As a Senator Biden sponsored a law that made it so student debt could not be discharged in bankruptcy.
Then he was buying donations from the big banks who run their credit card operations out of Delaware.
Now he is buying votes.
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‘Student Loan Cancellation” schemes also: 1) Add to the national debt; 2) Set a bad political (and economic) precedent for future loan forgiveness schemes; 3) Reward idleness; and 4) Effectively penalize those who persevered through hard work and saving to pay off their student loans.
Main Street America Republicans have a plan that corrects these glaring deficiencies.
The Leviticus 25 Plan provides a far more powerful and comprehensive ‘debt elimination’ liquidity flow, a U.S. Citizens’ Credit Facility, that will benefit all qualifying U.S. citizens. It re-incentivizes work and industriousness, and does not add a dime to the national debt.
The Leviticus 25 Plan will revive free market economics and generate massive new tax revenue flows for federal, state, and local governments, resulting in an annual average of $112.6 billion federal budget surpluses each of the first five years of activation.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (17369 downloads )