The government hasn't built a broken system encouraging the buying of Ferraris and subsidizing the same. Government backed student loans shouldn't exist, and the only good way to deal with the problem is to write off the whole system and to start anew.
Or just stop offering the loans and still require payment of existing ones.
The long term effects on the economy would be substantially better if we just forgave them. Like, from an economics perspective it makes way more sense than ending loans and forcing repayments.
The difference is this money has already been distributed. There is no net cost to forgiveness if future loans are not offered, but there is a substantial cost to tax rebates or refunds that would come from the budgets of other programs. The student loan system is largely funded internally and not by appropriated funds, it is completely apples to oranges.
I'm not a Democrat. This is my proposal.
We disagree on the economics
They're no longer funded directly by the government.
Please give me a logical explanation of how relieving all student loan debt and no longer providing any student loans will hurt GDP
Erasing any receivable reduces the balance sheets. That money could be put to debt service or used to allow further tax reductions elsewhere and at this point the populace who doesn’t have outstanding loans would have simply been pillaged by those who do
I'm not saying it's the case here, but in macroeconomics, people frequently make the mistake that good economics needs to be a play on good morality. The people that caused the housing credit crisis that nearly lead to a depression got bailed out. It wasn't because they deserved it. Or that it was morally right. It was because they needed it or else the entire economy would have completely collapsed.
Sorry. That's what I saw in 2008. And guess what. I go with the flow.
1) Because he intends to keep the government in the loan business.
That's not even an argument, that's just nonsense as it falls outside if the things a fiduciary contract allows.
This was a decision done to stabilize the portfolios of the companies, as balances were out of line with home values and some mortgage payment is worth more than zero mortgage payment. The duty of the FHFA is to stabilize the two corporations so that they can eventually be released back to the market without imploding. This was a measure that was in-line with that goal, while wiping out their balance would be a blatant violation of their duty and which would result in dissolution of both companies.
They reduced the amount of mortgages, can you not read?
Reducing mortgages to make people reliably pay them back because they are in line with actual market values rather than hyper inflated values is in-line with fiduciary duty. Forgiving all loans is not.
Your reading comprehension isn't the best. The federal government has no fiduciary duty with regard to student loans, unlike mortgages. They hold them directly, not through a company they are in conservatorship of, and can therefore forgive them without breaching any duty
Fiduciary duty is a legal term that applies to specific contracted arrangements. The government does not, in the legal sense, have a fiduciary duty to taxpayers. Even if they did, as I said, it could be argued that the benefits of loan forgiveness would far outstrip the current system. But they do not, so it is a moot point in the very real sense of the term.
Not necessarily. It just means that you are required to act in the best interest of a trustee. You could say that they have a fiduciary duty to citizens to uphold the US constitution, I guess. But that would be weird and probably never said by anyone ever.
What about that impacts your opinion on burning down and looting private businesses?
It makes me think how native American people have felt when white people looted and stole their land, how black people felt when white people looted their bodies, stole their labor and when they rose, white people continued to kill them....
Cool, so burn a bunch of stuff owned by people unrelated to your problems?
What do you mean "unrelated"? What land are you living on? What labor was used to build up this land/country/property?
