The left-wing push to “cancel” student loan debt (aka redistributing across all US taxpayers) has been in the works for quite some time.
Democrats argue that student loan debt is oppressive, unfair, and even racist. They say that Joe Biden must free people of the loans they voluntarily took out and agreed to pay back.
As the president becomes more desperate to salvage his party’s chances of not losing the midterms, he’s now hinting at possible action to redistribute student loans.
However, amid all this talk about canceling student loan debt, US experts are already sounding the alarm, per PJ Media.
What Everyone Needs to Know
According to Urban Institute senior fellow Sandy Baum, the folks with the largest student loans are people working as doctors, lawyers, dentists, etc. Many of these folks are capable of paying back their student loans, yet presumably just don’t want to.
However, if student loan debt were canceled, it would shift at least $250,000 per person across taxpayers. Needless to say, this could amount to billions, if not trillions, in collective taxes that everyday Americans would be on the hook for.
On top of this, if student loan debt cancellation takes place as Democrats want it to, inflation will get significantly worse.
According to Committee For a Responsible Federal Budget (CRFB) president Maya MacGuineas, debt cancellation of this magnitude would give wealthy lawyers and doctors a free ride while increasing the deficits.
As the Biden administration openly talks about canceling student loan debt, MacGuineas is warning this is not in keeping with lowering inflation or consumer costs whatsoever.
Not a Good Economic Decision
Democrats who want student loan debt waived repeatedly say that it will free Americans and give them rosier financial futures. However, this is proven false simply by the fact that inflation is already eating Americans’ finances alive today.
If the president found some way of passing along student loans to US taxpayers, inflation would be worse than it is today. The national deficit would also heighten, making America all but guaranteed to fall into the recession that economists are predicting.
Once again, this is an example of the White House and Democrats doing everything they can to spend money and raise taxes, rather than cutting spending and lowering taxes.
People who voluntarily took out loans should also voluntarily pay them back. These are the terms they agreed to, after all. The responsibility does not lie with the everyday American taxpayer.