April 24, 2019
Elizabeth Warren this week called for student loan debt to be almost completely abolished.
Apparently, this would cost $640 billion dollars.
The WaPo Editorial Board is as against this plan as the Republican establishment.
TRAILING IN the polls, Sen. Elizabeth Warren (D-Mass.) is running ahead of the Democratic presidential pack in terms of policy specifics. We hope other candidates will emulate her willingness to lay out an agenda. Alas, her latest big idea — to eliminate vast quantities of student debt and make public universities tuition-free — is not a sound idea.
The nation’s households owe almost $1.5 trillion in student loans, according to the Federal Reserve Bank of New York. This represents a burden on many families, which, under Ms. Warren’s plan, would disappear completely for 75 percent of them, and at least partially for 95 percent. That’s because she would forgive debts up to $50,000 — just over twice the average federal student loan balance, $23,000. And she would do so for borrowers with a household income under $100,000 — some 80 percent of the population. Even borrowers earning up to $250,000 would be eligible for some relief, which would total $640 billion overall. Free college would add $600 billion or so more, for a total price tag over 10 years of $1.25 trillion.
No one can accuse Ms. Warren of thinking small. What she really needs is a better sense of proportion. Her premise seems to be that student debt is all burden and no benefit, but this is not true: It represents an investment in skill acquisition that pays substantial long-term benefits. President Barack Obama’s Council of Economic Advisers estimated this lifetime “earnings premium” at about $1 million over a worker with only a high school education. It’s not unfair to expect people to pay back their loans out of that income. What might be unfair is debt relief to the exclusion of other priorities with wider benefits, including to people who did not go to college at all. Ms. Warren proposes a wealth tax to cover the cost, the proceeds of which would then not be available for alternative, possibly more progressive uses. In any case, default rates are actually falling slightly, according to the latest Education Department figures; 84.7 percent of borrowers were current on their obligations as of the end of 2017, according to the New York Fed.
That is, of course, all complete bullshit.
They go on to say that the plan would help out the middle class, and that actually, we should be giving all of this money to poor brown people and immigrants.
I personally do not support giving money to poor brown people. Part of it is that I just don’t really care about poor brown people, but a bigger part of it is that we know for a fact that giving money to poor brown people does not do anything to make them less poor. They waste whatever money we give them and they just stay poor.
Middle class millennials who owe insane amounts of student loan debt, however, are people who have the ability to contribute to society, but were simply swindled by a scam. They were told that if they went to college, the student loan debt would quickly pay itself off because they would make so much more money than if they didn’t go to college. That was a lie, in almost every case.
The student loan program allowed so many people to go to college that the college degrees became worthless, and people with college degrees were forced to work at jobs that historically they would not have needed a college degree for, getting paid the same – usually less, in fact – than the previous generation had gotten for working jobs with no college degree. So it became impossible to pay back these loans.
The whole thing was a gigantic scam.
The social sciences degrees in particular are a literal Ponzi scheme.
The only thing you can do with a humanities degree is work in a humanities department at a university. Seriously, who else is going to hire someone with a degree in history, philosophy, literature or sociology? Pretty much their only option is to become journalists making $30,000 a year (half of what an electrician or a plumber without any student loans makes).
tfw $30,000 a year at 55, universally hated and viewed as a pathetic failure, your father thinks you’re a disgrace
tfw $55,000 a year at 28, having a fun time working with your hands, driving around in a van listening to podcasts, visiting people’s houses and chatting and probably they make you a sandwich
So the people coming in are paying for the salaries of the people who have gotten faculty jobs at the university, even while it is known that no matter how much they expand the staffs of these departments, there aren’t ever going to be enough positions for all the people getting those degrees.
Blaming the Victim
The Republicans have chosen to frame the victims of this scam as lazy, saying that they should have built a ladder to the upper echelons of society out of bootstraps and if they can’t get a job with their worthless college degrees it’s because they don’t have firm enough handshakes. This is simply disgusting.
The WaPo – which represents the mainline Democrat view – frames them as privileged whites who deserve to suffer. This is also disgusting.
There is little difference between these two positions, in fact.
These people are propagandized from the time they are in elementary school, being told that their entire future is dependent on going to college. Their boomer parents back up the education system on this. Expecting teenagers to make these kinds of decisions and then blaming them for doing what they were told to do is evil.
The issue that I have with Warren’s plan is that she wants the taxpayers to foot the bill for the student loan forgiveness. But the taxpayers are not the ones who ran this scam. This scam was run by the universities themselves as well as the banks involved in issuing the loans.
Most of the student loan debt is currently owned by the federal government (and it appears that even the debt they don’t own is guaranteed by them). So apparently, the thinking is that the easiest thing would be to stick the taxpayers with the bill for loan forgiveness.
However, it is much more fair and much more fiscally reasonable to force the universities to pay off this debt. The official number of subsidies that the US government gave universities in 2015 was $80 billion. That said, although the numbers are unclear, when you factor in all the other ways that they get money through these various confusing programs, the number is probably twice that (of course I am excluding student loans in these numbers).
But if we just take the number of $80 billion, that means that the US government could recoup the $1.25 trillion in 15 years by cutting all subsidies to universities.
Without all of this money that the universities receive from the federal government and from the student loan scam, they would be forced to drastically cut these absurdly inflated tuition costs, making it viable for people who want to go to universities for STEM education to figure out a way to pay for it by getting money from their parents and working part time jobs (as every baby boomer who attended university managed to do).
Furthermore, they would be forced to simply abolish all of these pointless “social sciences” courses that are entirely funded by the overinflated tuition costs created by the student loan racket.
University faculty attempting to escape with their social sciences tuition money
You would then have a situation where fewer people felt obligated to go to college in order to ensure an ability to make a living, which would have so many positive effects that they are almost impossible to list off.
But there are a few:
- People would be able to start families with their high school sweethearts, which is the natural way of human breeding
- Women would not be involved in the college “fuckfest” that turns them into total irredeemable whores
- Women would not be brainwashed into believing they have a moral imperative to rule over and destroy men
- All of these worthless women working as college faculty would be out of work, and forced to find men to support them
- The soyboy phenomenon would be completely destroyed, as weak-willed, low testosterone and dull-minded men would not be subjected to “colonial theory”
- The entire headquarters of globohomo, which is the university social science departments, would disappear
And you can think of the rest.
Free College is a Nonsense Plot
The calls for “free college,” which Bernie popularized and Warren also supports, assume that college is good or useful, when in reality, 90% of the degrees have no actual value.
The only person I have heard saying this is Andrew Yang.
The under employment rate for recent college graduates is 44%.
College as a solution to society is absolutely nonsensical. It was a stupid idea to begin with, but we now know that it has failed, so this idea that the problem is getting more people into college is simply looking at the problem completely wrong.
Yang is unlikely to be the nominee.
A few months ago, I was tentatively predicting that Kamala would be the nominee, and that is increasingly looking totally impossible. Right now, it actually looks like Bernie is going to be the nominee.
What I would like to see is Bernie embrace some of these policies being put forward by Yang.
He probably won’t, but that would at this point be ideal. However, even if Bernie did abandon the “college is the most important thing ever of all” philosophy he is promoting, I do not think he would be up for forcing colleges to pay for this loan scam, as being that he is a communist, he believes that everything can be paid for by the government.