MSNBC ran a spot last Thursday night where they talked about how most people who have their student loans paid for will travel or dine out with their newfound funds. These people, buried under excessive debt, are so creative in how they will spend our money. People who work for a living and play by the rules will now dip into their savings to pay the tuition bill of some unthankful individual who is smoking pot, on vacation, and eating at a five-star restaurant. The others will spend it on gambling or drugs. Isn’t that nice?
This forgiveness of student loans is wrong on so many levels. Joe Biden bought the votes of millennials and Gen-Z by promising to forgive $10K to $20K of any student with an open student loan. His plan ran into some roadblocks and is being bounced around in the courts. Today, Biden’s plan is a no go after being shot down by a Federal Judge in Texas. Biden is not about to stop. The Dems need the votes in 2024 they bought for the Mid-Terms with their plan. The next step for Biden is to ask the Supreme Court to intervene. He may wish it did not get to this point because he has little chance of the Court siding in his favor, and then Biden has run out of options. He will have reneged on his promise, but it did its job. He used it to avoid a massive gain by the Republicans and kept the Senate.
This plan, which some say could approach $1 Trillion, is a massive transfer of wealth. Let’s make it clear. There is no forgiveness here. The students who will benefit from this action will be the winners, but the American people will be the losers. These loans do not disappear. The burden shifts from those who signed a commitment to pay the loans to the rest of America, who derived no benefit and had no obligation to pay the loans until Joe Biden assigned them that obligation.
Biden’s plan will impact every American with an outstanding student loan. There is no provision for future borrowers, but you can be assured that this is the first step towards free college for all. How else can the Democrats justify “forgiving ” today’s loans but not tomorrow’s? It will not happen.
Biden is making a mistake trying to validate his Executive Order with a favorable decision by the Supreme Court. Trying to push a trillion-dollar, unpopular, and possibly illegal initiative upon the American people with the stroke of his pen and thinking the Supreme Court will support him is a foolhardy move. Chances were not good Biden could have gotten this action done legislatively, even with control of both Chambers.
One more impact his plan would have is exasperating the already high inflation rate. This “forgiveness” of student loans would be tantamount to pumping another trillion dollars into the economy. His action will further weaken the dollar and drive the inflation and interest rates higher, something the country does not need. The President does not have the power to spend money in such a fashion, which is what even Nancy Pelosi said a year ago. Finally, Nancy said something that Conservatives can agree. Too bad it took her thirty-five years, but we have been waiting for fifty years for Biden. Unfortunately, we are not done waiting on him.