Posted on by Californiacontrarian

Aye, Yai, Yai ! …(I, I, I !)

In an obvious move to bribe voters ahead of this year’s midterm election President Biden issued another dictum – this one on student loan forgiveness. Aye-Yai-Yai; ay caramba!

From Richard Vetter on Fox Business:

“When I learned of President Joe Biden’s latest student loan forgiveness plan, seven words, all beginning with the letter “I,” came to mind: I thought the idea was illegal, inflationary, immoral, inequitable, irresponsible, irrational and idiotic. 

Illegal – Nothing in that law (P.L.111-152) allows for the president on his own authority to dramatically change its terms. In fact, several years ago a U.S. Department of Education legal counsel memo found that it would be unconstitutional for a president to unilaterally change the terms of the law.

Inflationary- We are in times of high inflation. Forgiving student loans increases incentives for colleges to raise tuition and fees more aggressively. Even staunch liberal Democratic economists like former Treasury secretary Larry Summers and Council of Economic Advisers head Jason Furman have opposed loan forgiveness because of the impact on prices.

Immoral – It is wrong to tell some borrowers that they need not meet their loan obligations — letting some favored persons ignore legal commitments, but not others.

Inequitable – Is it fair to the millions of student loan borrowers who financially sacrificed in order to dutifully pay off obligations, while other Americans ignored their obligations, lived a bit better and are now being rewarded by the government?

Irresponsible – One estimate (from Penn Wharton) is that this will cost the government some $300 billion in foregone revenues, and that ignores the additional $10,000 in loan forgivenesses ess Biden is offering Pell Grant recipients (a majority of borrowers).

Irrational – It makes little sense to help a subset of the population that on average is fairly well off, especially for Democrats professing to be the party supporting lower-income Americans who mostly did not go to college. 

Idiotic – The assumption that this move will win more Democratic votes in November than it will lose sounds far-fetched to me. How will doubling down on progressive policies that have not heretofore proven popular advance the Democratic agenda leading up to the 2024 presidential election?

President Biden was speaking about the student debt program he ordered when a reporter asked him to comment on the challenge that the policy was unfair to those borrowers who worked hard to pay off their loans.

“Is this unfair to people who paid their student loans or chose not to take out loans?” asked Karen Travers of ABC News.

Biden’s inane insipid response: “Is it fair to people who, in fact, do not own multibillion-dollar businesses if they see one of these guys getting all the tax breaks? Is that fair? What do you think?” Biden inappropriately responded.

“What about people who paid their loans, though, struggled to pay their loans, and now others don’t have to?” asked another reporter.

Biden’s insolent response to that second question demonstrated how insecure he is … he walked out of the room!!!

Inappropriate? Yes, in spades!

And this guy is the President! Aye-Yai-Yai!!

8/26/22

californiacontrarian

145 Replies to “Aye, Yai, Yai ! …(I, I, I !)”

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