The Student Loan Debate is the Death of Trickle-Down Economics
It should be the death of orthodox economics, especially the Chicago school and Milt Freidman's brand. It won't be though. Americans aren't curious enough to question the orthodoxy or the media hammering home the constant "how will you pay for it?" refrain that worked so well for RayGun that he almost single-handidly dismantled FDR's New Deal gains over eight years and paved the way for Clinton's brand of neoliberals in the Democratic party.
Economists are running scared from the fear that someone might put some thought into the mechanics of student debt forgiveness. Even Keynesian "liberals", like Reich, Krugman, Summers, etc., are seeking out media exposure to tamp down any thought of "free" college and push the fairness narrative in debt forgiveness. God help them if their contribution to the problem and its roots in economic myth and falsehood should be revealed.
This pause in payments and commuting for my own benefit was equal to over $800 a month. I am far from the exception.
Don't plan on it going forward if you weren't lucky enough to have your debt erased by Biden's reluctant minimal capitulation to progressives who he will need to maintain the slim Congressional majority he has, or to seek re-election if he desires to run. He has pushed his donors to the brink and I'm sure they are demanding that loan payments, and interest, be resumed in January.
While better off than pre-Covid, most Americans are still barely keeping their heads above water. The resumption of student loan payments could raise that water level for millions and throw the economy into recession. Biden's history in the subject, being the primary reason student debt is not subject to cancelation in bankruptcy, would suggest there is little compassion there for the students.
The Fed is trying its best to restrain economic activity by raising rates. This is their usual policy when faced with an economy that loads its debt-laden businesses with higher costs.
How does making everything more expensive while creating more currency in the private sector (interest on the debt) fix inflation? Are we sure it doesn't just provide welfare for the already obscenely wealthy while they wait for labor to cave? I'm thinking this is the "DEFINITION" of inflation, not a fix.
Give more money to the people that spend the money — the middle class!
Congress' deficit spending is the only net source of money in the economy. Hopefully, this will be made a little more apparent when nothing disasterous comes from forgiving student loan debt.
Once we get this figured out we can take on the massive wealth transfer that is our healthcare for-profit system. Then we can move on to the even bigger transfer of working class wealth to the top earners which is our Social Security system where payroll deductions don't pay for our benefits. We just need a slightly smarter electorate that doesn't accept the BS any longer and we really can have nice things like other countries.
