Leftists/Occupiers/and socialists of all stripes are frustrating. Many of them claim to be frustrated by wealth redistribution to the wealthy, but when I asked a purported “Occupier” about this at a recent protest, she told me that she supported the bailouts!
And then there is nonsense like this piece in support of legislation that would forgive all student loans. Yes, student loan debt — which now amounts to $1 trillion in the US — is a real issue, but such “debt forgiveness” schemes would be terrible policy for many reasons.
For starters, forgiving college debt would redistribute wealth upwards. Only 25% of the population graduates from college. These are the highest earners in our society. Doctors and lawyers pile up even more debt for their extended schooling, do we really need janitors and taxi cab drivers subsidizing them?
And, as the author points out, one bailout is inevitably used to justify another. So, if I’m a student, I’m no longer going to factor in my ability to pay into my decision, I’m going to get the most costly, prestigious, education I can. After all, the taxpayers are footing the bill!
Lastly, it has been argued by the Rio Grande Foundation and others that current taxpayer subsidies for higher education have caused the price tag of a college education to skyrocket. Once the government starts forgiving college loans, there will be no pressure at all to keep tuition prices down.