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Notes -
How will Republicans responds to Biden's student loan giveaway?
Even though the Supreme Court scuppered Biden's plan to forgive student loan debt without congressional approval, he is apparently doing it anyway. So far, it would appear that 4.75 million people have had loans forgiven for a total cost of $167 billion.
Here's a link to a recent Biden administration press release.
I will admit, the devil is in the details. I am not going to comment on the constitutional legality, the many ways to qualify for forgiveness, nor the amount given to high-income earners, which some have claimed is substantial.
But the total cost is staggering. It amounts to over $1000 for every American who pays income tax.
Clearly, this money has electoral implications. The base of people who have large student debts is presumed to be mostly Democratic voters. By giving this group a mean payment of $35,000 each, the Biden administration hopes to increase their enthusiasm to vote. Even the ones who do lean towards Trump might view Biden favorably after getting (almost) enough money to buy a new Tesla Model 3.
Buying votes goes back as far as democracy does. Famously, Julius Caesar was forced to conquer southern Spain after going broke buying votes to become Pontifex Maximus. In recent times, some have argued that farm subsidies amount to vote buying. But, while special interests have always played a large role in American politics, student debt forgiveness is possibly the closest thing to naked vote buying we've seen in our lifetimes.
So... how do the Republicans respond? Whose votes should they purchase with a fig leaf of social justice? I'd propose a group that honestly needs it and creates a lot of value for society: blue collar workers. People who work 30 hours a week or more and make less than $30/hour should get an "earned income credit" of $10,000 a year.
If we're going to just be giving money away, give it to the workers, not to excess elites.
I've advocated leaning into student loan forgiveness, on the condition that most of the funds are seized from university endowments and heavy taxes on the parties who benefit directly from the loans over the decades.
Or, if that angle somehow does not pass muster, then yeah, federal funds to university get cut until the balance is paid off.
Perhaps even better, if you're forgiving student loans, then also create a one-time tax credit applicable to anyone who successfully paid their loans down WITHOUT forgiveness. And then give a one-time payout to anyone who paid their own way though college out of pocket.
AND then provide some incentive/reward to people who eschewed college and went to trade school or hopped right into the workforce. Just full on jubilee, baby.
Just go absolutely ham on handouts ONCE, and try to shift as much of the 'burden' to the lefties, blue cities, and elites that brought stuff to this point.
And finally, tie the package to a requirement that student loans going forward are eligible for discharge in bankruptcy AND add in that no President can unilaterally discharge any such loans without approval from, say, 2/3 of congress.
You have to actually stitch up the gushing wound up after you've performed the lifesaving procedure.
Apparently in improv comedy, they have a rule that you can never say "no", you can only say "yes, and".
I feel that politics works the same way. One group comes begging for a handout. You can't say no because then you're the mean bad guy. So you say "yes, and", then give your own group twice as much.
I agree with everything you said. The floodgates have opened and it's time to "yes and" some payouts to actual workers at a rate much higher than we compensated the slackers. And universities should pay for it.
Republicans got the nickname “party of no” for this reason. They’re the only adult in the room when it comes to not spending ourselves into exponentially untenable inflation (aside from a few irrelevant third parties).
This is a bald-faced lie - the GOP love spending the US into exponentially untenable inflation, they just prefer to do it by throwing tax-payer money into the MIC.
Yes, I’ve heard the “but what about military spending” gotcha plenty. Defense spending is currently the lowest it’s been in over 3 decades by percentages, between 11 and 13%. Socialized medicine and welfare comprise close to 50% of federal spending. And with new proposals to tax unrealized gains gaining momentum, going to war with the federal government over a 2% luxury tax on tea feels quaint by comparison.
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