The Supreme Court will decide on the Constitutionality of the Joe Biden Student Loan Payout. This should be another defeat for the Biden Team, but they got the mileage they needed from the proposal. After all, the carrot that Biden hung in front of everyone with an outstanding Student Loan balance was done to secure votes in 2020. Biden was willing to spend upwards of $1 Trillion in taxpayer dollars to buy enough votes to secure his election over Donald Trump. If the loans are not forgiven now, Biden can point to the Trump Court for blame and still take credit for the effort.
Biden knew all along that this payout would not fly. Even Nancy Pelosi went on the record to say that the President had no Constitutional right to forgive these loans. Joe can tell you that he knew that too. But he also knows the value of the empty promise he made to millions of students and their parents. He pushed the button, made the promise, cashed in on the votes, and knew it would never come to fruition. Even the failure is working out for him. He can now stand before the American people, claim what he did for them, and blame the evil Republicans, and Trump’s Supreme Court for saying no. He will be loved for the effort, and the blowback on the Right will be lasting.
The protests outside the Court today were loud and emotional. Elizabeth Warren, Pressley, Tliab, Pressley, and Omar played for the crowd. They all claimed the President is within his rights to cancel student loan debt. Unfortunately for them, Nancy Pelosi explained last fall that the suspension of debt is available to the Executive Branch, but forgiveness is not. The one person who came unhinged and delivered the most passionate speech was Randi Weingarten, President of the AFT, the largest teachers union.
Weingarten was out of control, jumping and yelling and, unfortunately, lying. She ranted that the President was within his rights to forgive the outstanding student debt. Nobody addressed the two most important questions like the others who spoke out of hand. If the debt is forgiven, who pays the balance. The other question is, what happens with students coming into the cycle and starting to accumulate loans? This forgiveness looks to be a four to five-year process and the beginning of free college in America.
The entire process of student loan payout, or forgiveness, is a disguised wealth redistribution scam. We have about 13-15% of the population getting a $20,000 gift from the other 85% of Americans. If the package comes in as planned at $500 Billion, the debt to each paying American is $2,500. Most economists predict the cost to be closer to $1 Trillion, raising the debt to about $6,500 per American. That is just for this round. If this is repeated every 4-6 years, the tab per taxpayer will be out of control. Fortunately, I think even some of the more progressive Justices will not want to give this President and future Executives to follow, the power to spend a trillion dollars with the stroke of a pen.