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

And they are all going to hmmmmmmmmmmmm OK. They bring in votes and money, the Democrats will just cry how underpaid they are a increase their pay.

 

See? Works fine.

 

His land deals do alright, his businesses not so much.

How did we handle ww2? Well enforced rationing for 1, massive fed level interference in all industries, war bonds, doing without, victory gardens, making growing wheat for your own cows interstate commerce (see wickard v filburn) we stole a bunch of **** from our citizens which we put in internment camps, etc.

And we put it on credit essentially.

You understand we are deficit spending, have been for decades, and are trillions in debt right now?

 

I approve. It's sick how Wall Street profits from the debt of students. We shouldn't be paying thousands of dollars in interest to those crooks just to attend higher education.

 

Of you had a 25,000 mortgage you would not. if you got a 150,0000 mortgage you would be paying 6%. you pay 1% of all future earnings for 45 years. in 20 years your going to be making 2x what you made this year, and in 45 years 4x. My first job when I was a senior in high school was bringing home $51 out of a 60 pay check. 45 years later it was 1,250 out of 1800.

My oldest son paid off 27,000 in one year. now, he had to live at home with me and his mother as a 23 year old man but he did it.

 

Why pay all that interest, pay it off with current earnings and get out of debt.

 

Then don't go out and earn it either through scholarships or your labor. But if you are going to borrow it from me pay me the going rate and can get that elsewhere and owe you nothing.

 

Meanwhile Biden has told Millennials not to expect any freebies and to be happy with "social progress".


Biden will almost assuredly be the Democratic nominee shoe-in.

 

Teachers should be funded by the Government as described (treasury issuing the required amount of $US to the Fed to fund the required number of teachers) , because once the infrastructure is in place (and it already is), there is no further draw on the nation's scarce (non-financial) resources. Instead of piling debt onto students (which mainly benefits Wall Street), the nation can fully utilise it's educative capacity.

Hence funding those teachers will not cause inflation. How can it? Inflation results from excess demand on resource capacity, or loss of supply (as in the 70's OPEC oil embargo).

BTW, in general, the productive capacity of the nation is no where near fully employed; that's why MMT offers a Job Guarantee at above poverty minimum wages, by means of Treasury funding of much desired caring services (child care, age care, environment) not attractive to the private (profit driven) sector. Involuntary underemployment itself represents a huge waste of an available resource (labour).

 

you are welcome

 

Education is not a FEDERAL FUNCTION. The states and counties and cities run education. And just printing money and handing it out causes monetary inflation, how does it not? Again we are at historic lowe unemployment and we have a glut of good jobs. Not because of some government spending or guaranty but because the free market when allowed to operated freely will create those jobs and opportunities.

 

Then don't take out loans

 

Sure, as long as the courses you fund are ONLY in fields in which there is a need/plenty of jobs. This will change from year to year, but that's the only sane way to do it.

 

Needs can sometimes be as driven by people in the field as much as the other way around. Computers are a good example of this. Their present state is the result of discoveries in techniques as far apart as electronics and lithography and the next big leap in that area will probably be the first commercial application of quantum mechanics. The kind of funding you describe is short sighted in the extreme. Breakthroughs can't be predicted, that's why they're breakthroughs.

 

But its funding should certainly be managed by the Fed (to take advantage of the US Treasury's ability/authority to issue $US).

1. Teachers are presently being funded (partly) by student debt. Removing the requirement for students to go into debt, by funding teachers directly (ie the Fed credits accounts in the relevant (private sector) banks (known as exchange settlement accounts, for the relevant education institution) simply removes the burden of debt on students, allowing them to move into their chosen careers without that burden at the very beginning (see Ellen Brown's comment at the bottom of this post).

NB (and this is where MMT presents a significant insight into money creation in the economy): private banks create deposits when they write loans (to credit worthy customers) out of thin air independently of savers' deposits with that bank. That's one way the money supply grows over time, for an increasing population. The central bank ensures the right amount of bank reserves are available, aiming to avoid either inflation or recession - but this is where orthodox neoliberalism often fails, owing to its faulty macroeconomic narrative, so orthodox central bankers rarely see recessions coming - if they really understood how the macro economy works they could avoid recessions. Now, also note: private banks cannot issue currency, only the Fed, via treasury, can do that. Private banks, like households, are users of the currency.

So back to the Fed: it also can create deposits 'out of thin air' when directed to do so by the treasury (as per government policy, eg, to fund teachers) - the US treasury can never "run out of money" because of its sole currency issuing powers; though of course once all available resources - including labour - in the nation are being utilised, then Fed must choose the necessary policies to avoid inflation.

Er….

"Underemployment Is the New Unemployment
Western countries are celebrating low joblessness, but much of the new work is precarious and part-time".

In fact involuntary underemployment in the US is currently c.12%. And your "historic low unemployment" (c.4%) also fails to take account of people who have given up even looking for work - add these three groups together and you get closer to 20% of the working age population with less work (or none) than they want, to avoid poverty. That's why we need MMT's Jobs Guarantee immediately.

Yep - the old neoliberal delusion. Note this from Ellen Brown's blog:

"....the U.S. model has been regressing into feudalism, with workers driven into slave-like conditions through debt. In the 21st century, it is time to upgrade our economic model from one of feudal exploitation to a cooperative democracy that recognizes the needs, contributions and inalienable rights of all participants".

Amen. All power to Bernie.

 

They don't get enough government money to fulfill their mission, unless you want them all to be smaller.

 

There's research and patents, all government sponsored. Hell, the sports teams alone could easily pay for the whole thing. They're supposedly non-profits with a mission to educate students, yet they do less and less of that and charge the students more and more.

 

The problem is competition. They all want the facilities to outdo the other schools. Facilities aren't cheap. Most of the sports teams in colleges end up breaking even, even in places like the University of Alabama. The money making football teams end up subsidizing the women's sports (Title IX requirements) and the men's less popular sports.

 

Willya Stawp, the tv rights alone could pay for 3 new stadiums every season

 

You haven't seen the women's soccer and softball stadiums at UA.

 

There is no constitutional authority nor will the States turn that over to them.

Yea and then their unions will continue to payoff the politicians for higher pay as they already do and already drive up the cost. The student can plan their career to pay for THEIR investment in THEIR higher education. The problem is the infusion of federal dollars into that higher education cartel which allows them to raise tutitions.

The FED controls the currency flowing to banks and the treasury just printing fiat money and injecting it into the economy to pay for new programs will drive inflation. A college education is a product, the students are the customers. The best way to control cost is to get the government out of the picture and let the market forces work.

Yea graduating students always think they should be played more than they are worth and not have to work their way up.

 

Nailed it! I feel Bernie's pain, it is hard for those people with Women's Studies degrees from Harvard to find a job, and now the audacity of asking them to pay for their education. Your second point about why colleges charge so much reminds me of the disaster of Obamcare, nothing in that law did anything about why health care costs so much, it just penalized the people paying for it, stupid is as stupid does, you are correct, Bernie should look at the why as much as the how much.

Also you are correct about the loans, when the government guaranteed these loans, tuition skyrocketed, and the liberal professor super rich class just got richer, all the time bemoaning capitalism to the students. classic hypocrisy.

 

And furthermore......My son as an example incurred college loan debt, became a special ed teacher, busted his ass to pay off his loans, so what does he get for being a responsible person? He paid off $40,000 in loans in about 7 years, will Bernie send him a check for $40,000 or would it have behooved him to default and just wait for the populace to elect a complete idiot to office. I guess he gets penalized for not being a slug. Maybe he should have turned out to be a democrat and just waited for someone else to make good on his obligations, stupid kid.

 

No, that's just greedy capitalist projection.

 

Far from it that is the liberal socialist projection. Pay off their students so they can spend the money on something else.