A few days ago, The
Washington Post reported that Joe Biden during a meeting with House
Democrats hinted that he is willing to relieve student loans.
Trump administration had imposed a moratorium on paying off
their student loans due to Covid-19, which lasts the end of August.
If the polls and the mood of the nation are any indications,
it appears that the Democrats are on track to receive an emphatic shellacking in
November during the mid-terms.
Perhaps the Democrats in Washington are beginning to realize
that even their base, particularly the old school Democrats, are turned off by
the Democrat's focus on peripheral issues such as Climate Change, Abortion, and Transgenderism
while they ignore the record-high inflation that is rapidly draining their
savings, the supply chain crisis, the influx of illegal migrants and numerous
other Biden made crisis.
With only six months left for the mid-terms, the Democrats
realize that the only way to enthuse and appease their base is to implement
some of their very radical items that have always been on their list. Freebies
are often used to bribe voters prior to elections with the hope that
misgovernance will be overlooked for short-term gains. The hope is that
the margins of defeat could be reduced and perhaps victory can be snatched from
the jaws of defeat where the races are close.
The other possible motive is that the Democrats want the
consequences of their long-term damage to end up at the doorstep of the GOP who
are likely to take back the House and the Senate in November and the White
House in 2024. This could be a cynical ploy similar to a tenant damaging
the house from where he is being forcibly evicted in order that the next
occupant endures hardships. Also, once the crises arise, the
Democrats and their media allies can blame the GOP.
The forgiving of student loans has always been on the agenda
of far-left Democrats such as Bernie Sanders and Barack
Obama. But now that the far left has taken over the Democrat party leading
to the inmates running the asylum, all ‘centrist’ Democrats such as Biden and
Schumer are compelled to nod in agreement.
During the presidential campaign, Biden supported
a plan of “forgiving student debt for low-income and middle-class
people who have attended public colleges and universities,” and “ cancellation
of a minimum of $10,000 of student debt per person,” for individuals earning
less than $25,000 per annum.
The Biden administration has already canceled more than $17
billion in student loans for 725,000 borrowers through targeted relief,
including for people who are permanently disabled.
It is easy to virtue signal claiming compassion and generosity
for the downtrodden while spending other people's money.
Perhaps Biden will sign an executive order to relieve $10,000
in student loan debts per person? Perhaps the amount will be much
higher?
But someone has to pay for the losses and hence the burden
will fall on, you guessed right, the always exploited taxpayers.
What happens when taxes are raised?
The very wealthy reduce their investments in businesses and
other ventures that generate jobs. If matters persist they transfer their
businesses and finances to business-friendly countries. The result is
businesses close down within the US leading to higher unemployment. For lower
and middle-class people higher taxes will mean less spending on commodities,
which means fewer sales for businesses, particularly smaller and medium-size
businesses. The economy is hit badly.
Let’s say we go down that road and the government forgives all
student loans because education is a right. Why stop there, perhaps home loans
could be forgiven too because every human being deserves to live with dignity
under a roof. Why should only students and homeowners be the beneficiaries? How
about forgiving loans of businesses? They suffered losses during Covid-19
lockdowns and they deserve to be bailed out. Why just small, let's help big
businesses too, they employ thousands of people. What about farmers? They
literally are providers of food, why not waive their loans as well? What about
doctors who have set up practices?
Quite soon, everybody from the big corporates houses to the
smallest borrowers begins to feign poverty because they know the government
will pardon their loans.
What about those who acted with honor and dutifully paid off
their loan working around the clock doing three jobs simultaneously? Are they
supposed to be the losers because they acted honestly? Perhaps the government
pays them as a token of appreciation for doing the right thing?
The case against forgiving loans weakens considerably when
citizens learn of copious, gratuitous, and unaccounted government spending,
especially on foreign nations.
Last month, Congress approved
$13.6bn in assistance to Ukraine, but the Biden administration claims
that the funds were used. Biden is now requesting a $33bn in aid for Ukraine.
The US spending bill has
dedicated $370 million to secure borders of Islamic nations such as Jordan,
Lebanon, Libya, Egypt, Tunisia, and Oman and over $40 million for ‘democracy
programs for Venezuela.’ Military interventions in Afghanistan, Iraq,
Syria, and Pakistan have cost
$6.4 trillion.
Those struggling to pay their loans have a right to wonder if
their government can spend their money on foreign nations, why not them?
What about helping only those ‘in need?”
But who decides the factors that qualify an individual as
someone ‘in need’. For everyone ‘in need,’ there will always be
another individual in harder situations.
Perhaps loan waivers should only be given to the very sick,
very elderly, and the disabled who are struggling financially and really have
no way to repay their loans.
For financially struggling able-bodied individuals, extending
payment periods can be an option. But once again, favoritism towards one group
means those who paid their loans by striving around the clock despite financial
issues within the stipulated period go unrewarded.
There are no easy answers!
Also appears on American Thinker
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