Opinion| IYMI| If you think the cost of sending your kid to college is high now, wait and see what happens if Chuck Schumer and the rest of the Democrats, who have moved so far to the left that they would make Stalin blush, get their way.
It is a basic principle of economics that when you subsidize things the cost goes up. According to InformationStation.com:
‘‘The New York Times recently reported that “86%” of Affordable Care Act enrollees receive government subsidies. While much of the media still believes that healthcare subsidies mean “lower costs” for consumers, they have it entirely backwards.
First of all, subsidies, are not like store discounts. The government actually uses our hard earned tax-dollars to help pay for many people’s government grants, loans, or targeted tax breaks. Secondly, subsidies make goods and services – like health care – more expensive in the marketplace. Think about it. When government chips in to pay part, or all, of the tab, why would providers need to control the cost of their products? They’re getting their money either from us, from government or a combination of both.
Take college education. In 1970, the average American family only had to spend around 16% of its annual income in order to pay for a four-year tuition at a private university. Today, the average family would have to pay 36% of its income in order to pay for the same product. Meanwhile, federal student loans and grants – subsidies — have risen from a mere $20 billion in 1972 to over $150 billion in 2012.’
Now imagine what will happen if Biden takes Schumer’s advice and ‘cancels’ student loan debt …
Fox News is the source for this story, they reported:
‘Sen. Minority Leader Chuck Schumer urged President-elect Joe Biden to bypass Congress and cancel billions of dollars in student loan debt, arguing it should be part of a broader FDR-style agenda implemented during his first 100 days in the White House.
Rosevelt and his ‘New Deal’ are largely credited with the destruction of the original intent of the founders to have a small central government and actual made the Great Depression worse. If Biden follows in FDR’s footsteps the nation will be bankrupt before his first term is up.
Fox News went on: ‘Schumer, D-N.Y., said Biden should enact a plan that he laid out earlier this year alongside Sen. Elizabeth Warren, D-Mass., under which the president could use executive authority to immediately cancel up to $50,000 of student debt per borrower. Biden has called for forgiving $10,000 in student loan debt as part of a broader coronavirus relief package.
Getting rid of student debt,” Schumer said during an interview with The Ink. “I have a proposal with Elizabeth Warren that the first $50,000 of debt be vanquished, and we believe that Joe Biden can do that with the pen as opposed to legislation.”
Outstanding student loan debt has doubled over the past decade, nearing a staggering $1.7 trillion. About one in six American adults owes money on federal student loan debt, which is the largest amount of non-mortgage debt in the U.S. It has been cited as a major hindrance in people’s “economic life” by Federal Reserve Chairman Jerome Powell.
Schumer said that Biden could use existing executive authority under the Higher Education Act to order the Department of Education to “modify, compromise, waive or release” student loans. He estimated it would provide total forgiveness to more than 75% of borrowers and partial forgiveness for more than 95%.
What about those of us who sacrificed to do the right thing and pay our debts? Like usual, the people who did the right thing get to pay for the mistakes of those who built their houses out of straw:
A Father confronts @SenWarren
Father : My daughter is in school, I saved all my money just to pay student loans Can I have my money back?
Warren: of course not
Father: so you want to help those who don't save any money and the ones that do the right thing get screwed? pic.twitter.com/EY8M57tj9F
— JiveBunny (@JiveBunnyMuzik) January 21, 2020
Fox went on ‘Other actions that Schumer said Biden should take during his first 100 days in office include strengthening labor unions, changing the tax code so that it benefits workers rather than companies, passing a broad infrastructure bill and adopting a “big, strong, aggressive climate agenda” during his first 100 days in office that “takes into account racial injustice.”
“It’s a big, bold agenda,” Schumer said. “My job is to get as much of that passed and get the votes for it, which obviously is not something I can snap my fingers and do. I want the boldest agenda that we can get the votes to pass.”
I would bet the farm the the Democrat magically figure out how to win both Georgia Senate seats. Like many Americans I have lost all my faith in the United States Government. I also do not trust electronic voting. I think we need a Constitutional amendment which requires paper ballots, with signature matching, manual counting and ID needing to be shown to vote.