Sanders to propose canceling entire $1.6 trillion in US student loan debt

You still haven't studied MMT (as promoted by Stephanie Kelton, economic adviser to Bernie in the 2016 campaign)?

Two basic axioms:
1. All nations face real resource constraints.
2. Governments with currency issuing capacity face no intrinsic financial constraints, ie it's impossible for such governments to "run out of money" (unless it has net debt denominated in foreign currency; only c.5% of US debt is held by China).

Interesting observation re education: once the required physical infrastructure is established, there is no additional demand on scarce physical resources as a result of education, because the 'resource' consumed in the education process itself is the time and mental effort of teachers and students, a 'resource' (ie "mental effort") which is as 'free' as the air we breathe.

I'm not sure how much Bernie understands of MMT, but yes the US Treasury can issue the currency to the extent of authorising the Fed to fund the teachers (possessors of the desired knowledge to be passed onto students). Obviously - without increasing real resource 'demand' in the economy - obviously.

 

So just how does canceling someone else's debt affect you? It's not money you have to pay because it's being canceled. The college is the "loser" and they're getting government money anyway. I always wondered how schools that got taxes in support came off charging anyhow.

But wait, I see, since you had to pay everyone should, everyone equal, right, So you're going to confiscate the rich man's college fund and make his kid have to go into debt too. Wow, you guys are bigger commies than me, welcome to the revolution comrades.

 

More college educated people we have the more we produce more and better goods and services, other countries know this and fund free education to all levels. Increased prosperity pays for itself many times over. Everyone wins, great idea from Bernie, as usual

 

Agreed: but MMT as a school of macroeconomics has yet to be accepted by mainstream neoliberal economists, who would have to admit they have been following unreal economic models for decades (hence the GFC requiring massive government bailout of the private sector, all around the globe). The 'free' education you mention is in fact paid for by more progressive taxation regimes, in nations still locked into the false neoliberal narrative of the mainstream (eg. "government debt is bad" etc).

 

Who do you think will pay for "free" college tutitions? The college already has its money and will continue to get its money and will continue to increase those tutitions. And quite frankly you make no sense here.

 

So the more lawyers and women's and black studies majors we have the more we produce? The more 17th European literature majors we have the more productive we are and the better services we have? We have more college grads than ever and all I hear from the left is how wages have been stagnated and the middle class losing ground for decades.

 

You didn't respond to my questions.

Which would inflate the currency and teachers don't work for the federal government which has not authority to be paying for them. Teachers work for cities and counties.

 

Because we KNOW how much we're being ****ed now. You just want your ignorant peasants, happy for the scraps from His Lordship's scullery. And the problem there is that unless you really WERE in Bill Gate's mansion last weekend YOU'RE ONE OF THE PEASANTS YA ****ING DWEEB

 

The same place we get the wherewithal for public education before college, the increased taxes from the greater money that comes from a more educated workforce.

 

These entitled bed wetters won't be happy with just free tuition. It's unfair that they should be made to go to school. The government should just give them a diploma and save a lot of money. You can't have class time getting in the way of gaming time.

 

We should start putting up "Don't Feed the Students" signs for comedic effect.

 

Even if we were foolish enough to bailout their debt, how would we ever deprogram their indoctrinated brains? It's their brains that have been permanently damaged.

 

Inflation. Do you know what that is?

 

Yes, and it's not a problem until you exceed the nations's excess capacity, And we are nowhere near that now.

 

post deleted timeout problem

 

So, to be clear, your position that a government can continue printing money with abandon and there won't be any effect on inflation?

Yes please tell me more about this ocean front property in Arizona. I find myself intrigued.

 

Thanks for that insightful reply.

 

The college isn't the loser. We the taxpaying population are. Student loans are not from colleges. They are from government corporations, like Sallie Mae. State colleges charge tuition because the states don't give them enough money to cover costs without tuition.

 

Was that Irish or Kentucky this morning?

 

What I would like to see is for borrowers to pay 1% of future earnings for every 25,000 of debt. you make 50000 you pay back 500 a year for life as your salary goes up with raises and inflation your payment goes up.

 

I know nothing about that, MAGA Properties, I believe

Excess capacity is how we were able to come up with $300 billion (4 trillion in today's money,) to pay for WWII after a 10 Depression, and THEN rebuild Europe. You can't print your way solvent forever but there's a LOT more than people think

 

Then tell the colleges they can't charge any more. They ALL get government money, how can they charge anyway?

 

Why only 1%, hey I'd love to have to just pay 1% of my earnings towards my mortgage.

"College graduates, on average, earned 56% more than high school grads in 2015, according to data compiled by the Economic Policy Institute. That was up from 51% in 1999 and is the largest such gap in EPI's figures dating to 1973.

Since the Great Recession ended in 2009, college-educated workers have captured most of the new jobs and enjoyed pay gains. Non-college grads, by contrast, have faced dwindling job opportunities and an overall 3% decline in income, EPI's data shows."

How about they take 25% of the 56% and pour it into their student debt and get out of it. They may not live quite the lifestyle they prefer or believe they deserve, but that's the choice you made. They average student debt is in the mid $30K. The average college grad makes about $30,000 more a year than a non-grad. Take $10,000 of that for 3 1/2 year and pay off the debt. It's THEIR investment not mine.

 

I'm a Scot, it's gotta taste of peat or I won't have it.