By Colin Hanna, Let Freedom Ring
President Biden’s so-called student loan forgiveness plan is one of the worst public policy schemes ever foisted on the American taxpayer. It is also one of the most cynical and reprehensible vote-buying schemes in our political history. Let’s examine why.
First, the reality of the program is not what was sold to the public. The Democrat party and its sycophants in the major media insist on calling it debt forgiveness or debt cancellation. It is neither. Instead, it is debt transfer. No debt will be truly cancelled, it will simply be transferred from those who owe the debt to those who do not, the average American taxpayer.
The borrowers are students who paid sky-high tuitions to get a degree that, at least in theory, would result in the borrowers earning more money by virtue of being college graduates, with the expectation that those higher earnings would exceed the cost of paying back the loan – a reasonably sound investment.
College tuition has gone up at a crazy rate because the colleges are playing a funny money game. They raise tuition and it is paid for by higher and higher loans. They operate outside of normal market forces. The result is that students are saddled with hundreds of thousands of dollars in debt, burdens that can crush the graduates’ plans for achieving financial freedom, buying a house, or raising a family. The colleges themselves are the villains in this play, yet they bear no burden for their villainy.
Now that the first student debt transfer program has been put into effect, there will be more. It is virtually guaranteed. You can bet on it, if you are able to find anyone foolish enough to take the bet. The student debt transfer program will give rise to other debt transfer programs. How about credit card debt? American households now owe more in credit card debt than at any time in history except one brief period just before the COVID pandemic hit, and they’re on track to exceed that. How long do you think it will be before some politicians decide that they can buy votes by offering to “cancel” some of that debt? After all, there are more voters with credit card debt than with student loan debt.
Students who paid off their student loans are arguably the worst victims of Biden’s debt transfer program. If they recently paid off the last $10,000 of their student loan debt, they will get nothing from Biden’s plan, except for the bill to pay for the debt of those who didn’t pay off their loans. The Biden plan thus penalizes those who acted with financial responsibility and rewards those who didn’t. What’s the message that sends? Buy, buy, buy, run up debts, and then vote for the politician or political party that offers to relieve them of that debt? That’s insane, an outrage of the first order. But that’s exactly the stage that the Biden plan sets for the future. Americans will become ever more dependent on government bailouts, and thus ever more loyal to the political party that promises to bail them out. At some point, the world’s largest economy will collapse.
The Biden plan is a much more radical step towards socialism than the Obama healthcare plan. It must be exposed as the dangerous fraud that it is before we reach the point of no return. In fact, it may already be too late, because vote-hungry politicians will find it irresistibly attractive to continue down the road that Biden has laid out for them. It’s not a pretty picture.