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Most don't know the difference because we've been miseducated to be compliant slaves.
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It's Communism that has failed, not Capitalism
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owlegrad
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I think there is a misspelling in your thread title. Or maybe not, who knows.
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Wait where is the misspelling?
owlegrad
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Creditism vs Communism. Seems kinda different to me anyway. It's possible I am just not operating at a high enough level to understand the connection though.
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One has to be quite stoned to operate that high (OP's level). Good luck getting there.
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Almost every thread on these forums has roots that can be traced to the nature of our financial system. Capitalism uses savings for investment. Creditism only requires a bookkeeping entry. Can you see why we have all these labor gluts in the HC fields? If creditors had actually skin in the game ( no US govt/Fed Reserve backstop) then maybe somebody would exercise due diligence. Capitalism: "No, Timmy. you can't have a loan for pharmacy school. We don't think you'll be able to pay us back."
Creditism ( communism): "Sure, Timmy, sign on the dotted line and would your brother like to go to pharmacy school?"
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Dang it, I knew I was going to turn out to be wrong!
Capitalism is all about supply and demand, freedom, choice, and incentive. The problem with unconditional federal student loans is that it artificially drives up demand, thereby increasing price. The result is that many degree cost a lot more than they are really worth. These students take out the loans anyways because they don't understand the poor return on investment that they are getting.
If the government offered every person in the united states an unconditional $5,000 loan that could only be spent on a cell phone, what do you think would happen to cell phone prices? The difference between a student loan and a cell phone loan is that a student loan is supposedly an investment, so it is apparently "justified", but not all student debt is a wise investment. Who here thinks that it is wise to invest $100k on an degree in philosophy? In the governments eyes, every degree is of equal value considering the fact that every student can borrow the same amount of money. It has already become a huge problem. People are getting married later and buying houses later because of this debt.
The liberal solution - Free college. This would shift the cost of education from the students themselves to the population as a whole. A kid who graduates high school and become a truck driver would be indirectly paying the cost of his classmates' education through taxes. Graduates who have already paid off their loans would then have to pay for someone else's education on tip of what they have already paid for their own degree.
The conservative solution - I'm not even sure that they have one, and they would be burned at the stake by the liberal media for proposing to eliminate or reduce federal loans.
Another solution that doesn't involve politics is for the parents of these students to actually do their job and direct their kids in the right direction. Why are parents allowing their kids to go to school out of state for twice the tuition "because the campus is nicer"? Parents really need to wake up and do their job too, a lot of their is their fault.
There's not a quick easy fix but if the government never got involved in the first place by offering these loans we probably wouldn't be in this situation. It's another example of well meaning liberals creating another problem, and their solution to the problem is more government.
If the government offered every person in the united states an unconditional $5,000 loan that could only be spent on a cell phone, what do you think would happen to cell phone prices? The difference between a student loan and a cell phone loan is that a student loan is supposedly an investment, so it is apparently "justified", but not all student debt is a wise investment. Who here thinks that it is wise to invest $100k on an degree in philosophy? In the governments eyes, every degree is of equal value considering the fact that every student can borrow the same amount of money. It has already become a huge problem. People are getting married later and buying houses later because of this debt.
The liberal solution - Free college. This would shift the cost of education from the students themselves to the population as a whole. A kid who graduates high school and become a truck driver would be indirectly paying the cost of his classmates' education through taxes. Graduates who have already paid off their loans would then have to pay for someone else's education on tip of what they have already paid for their own degree.
The conservative solution - I'm not even sure that they have one, and they would be burned at the stake by the liberal media for proposing to eliminate or reduce federal loans.
Another solution that doesn't involve politics is for the parents of these students to actually do their job and direct their kids in the right direction. Why are parents allowing their kids to go to school out of state for twice the tuition "because the campus is nicer"? Parents really need to wake up and do their job too, a lot of their is their fault.
There's not a quick easy fix but if the government never got involved in the first place by offering these loans we probably wouldn't be in this situation. It's another example of well meaning liberals creating another problem, and their solution to the problem is more government.
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I find it intriguing that the background music for the first video was that Gotye song.
At >1 hr, I opted not to watch the second.
At >1 hr, I opted not to watch the second.
Conservatives seem to favor reducing or eliminating loan forgiveness options, i.e. PSLF. When you give borrowers options to discharge student loans tax free then it only deincentivizes borrowers from making efforts to minimize their loan burdens, i.e. going to a less expensive school and working during school.
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The student loan debacle is just part and parcel of a retiree heavy society. In the last century finance evolved as nothing more than the old investing in the young for some guaranteed rate of return so they could enjoy a leisurely retirement. Before this you worked into old age until you were dead. Up to the early 90s states themselves financed college educations, most of them 50%+ of tuition costs. Budgets started to strain as more and more public retirees hit the books. States shored this up almost overnight by cutting financial aid and funneling students into loan programs. Now you see the next step in the pension crisis where states and cities are cutting the hours of law enforcement and emergency workers, and teachers can't get raises because they have to pay pensioners. There's too many elderly and too few young to make a buck off of. This is also why you see tech companies with valuations that defy every principle of sound classical finance.
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