Education
August 26, 2022
Americans Pay For Biden’s Bailout 🤑
Liberals continued their spending spree this week with President Biden’s student loan bailout. There’s no other way to put it: It’s a bad policy that will hurt Americans for years to come.
Here are just a few of the biggest problems with this terrible plan:
- It threatens to make inflation worse. Even liberal economists admit that it risks adding hundreds of dollars to the high costs families are already facing. Take it from one of President Obama’s chief economic advisors, who compared the move to “pouring roughly half [a] trillion dollars of gasoline on the inflationary fire that is already burning.”
- It’s a handout from the middle class to the rich. Under Biden’s plan, a married couple making up to a quarter of a million dollars could have $40,000 in loans canceled. That means Americans who never took out student loans or responsibly paid them back are paying for wealthy people who went into debt for a pricey degree. You know it’s bad when even the liberal Washington Post calls it a “regressive, expensive mistake.”
- It fails to address real problems in higher education. We’ve mentioned before that federal loans help drive up the cost of tuition. Colleges have no incentive to keep prices down because government loans will always be available to help students cover the difference. That’s largely why private college costs have skyrocketed by nearly five times the rate of inflation over the last 50 years. Without addressing this broken system, it’s only a matter of time before a student loan “crisis” happens again.
- It’s likely unconstitutional. No administration has ever transferred so much student loan debt to the backs of hardworking taxpayers. In fact, Rep. Nancy Pelosi (D-CA) and Biden himself have said publicly that he doesn’t have the authority to do this.
Not only is Biden’s executive action unfair—it isn’t economically sound, and it won’t fix the problem of out-of-control college costs. It’s a $500 billion mistake, plain and simple.
→ Read more: Biden’s student debt forgiveness plan may cost taxpayers an average of $2,000, some policy experts say (CNBC)
→ Read more: With debt forgiveness looming, Americans plan to splurge on vacations (Daily Caller)