Student Debt Cancellation Is Extremely Unfair – Here Are 10 Reasons Why…

Authored by Mike Shedlock via MishTalk.com,

A recent Tweet by Elizabeth Warren and a short rebuttal to her inspired this post. Let’s take a look at the Tweet and my 10 reasons.

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?

I wish we were building a safety net for ppl in poverty with the $167B. https://t.co/lSJE5Psde1

— Michelle Tandler (@michelletandler) May 28, 2024

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.

Laughable Explanations to Difficult Question

Everything this president does is inflationary. Yet, Biden and economists refuse to admit this.

January 11, 2024: Is Inflation Down? That’s What President Biden Says

February 20, 2024: The CBO Revised the Cost of Biden’s Energy Policies Up by $466 Billion

April 12, 2024: How the Inflation Reduction Act Failed to Reduced Electricity Costs in Pictures

May 11, 2024: What’s the Inflation Rate Under Biden vs 7 Previous Presidents?

Any Questions?

Addendum

I left out a key point.

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.