Results 1 to 7 of 7

Thread: Bernie’s Daft Debt Jubilee

  1. #1 | Top
    Join Date
    May 2012
    Location
    life
    Posts
    52,794
    Thanks
    13,341
    Thanked 22,579 Times in 15,814 Posts
    Groans
    249
    Groaned 1,951 Times in 1,862 Posts

    Default Bernie’s Daft Debt Jubilee

    The Democratic presidential aspirants are having a cash-giveaway arms race, coming up with creative ways to shovel public funds into the pockets of likely primary voters, and Senator Sanders’s plan is to forgive all college debt, some $1.6 trillion of it. This story will be familiar to some of you: It’s like Fight Club for people who went to Sarah Lawrence College. Sanders’s plan would write off all of the student-loan debt on the federal government’s books — because what’s $1.6 trillion these days? — but not all of the student debt is government held. Financial institutions hold more than $100 billion of it, and they’d do well under the Sanders program: early repayment of principal plus accrued interest and any outstanding penalties or fees.

    U.S. taxpayers won’t do as well.

    Like a similar proposal from Senator Elizabeth Warren (D., Harvard), Sanders’s program is a giveaway for relatively well-off people, i.e., those who went to college, who on average earn tens of thousands of dollars a year more than those who did not attend college. The median amount of student-loan debt is less than $10,000 — about 100 months’ worth of the average cable bill — and most borrowers pay 5 percent or less of their monthly income in loan payments. A third of all student debt is held by those in the highest income quartile, whereas those in the lowest quartile hold only 12 percent.

    The majority of all student-loan debt is held by people with graduate degrees. What this means is that relatively low-income people who never went to college are being taxed to subsidize the careers of people who went to law school or who took other advanced degrees. Poor people are not as important to the Democratic coalition as they once were.

    Worse, Sanders’s plan creates permanent perverse incentives for young Americans to take on even more debt. For one thing, it may create the expectation that this giveaway will not be a one-time thing. More concretely, it would fix interest rates on student loans at less than 2 percent. With the U.S. inflation rate hovering around 2 percent, it would make more financial sense for students to borrow 100 percent of their education expenses — indeed, to borrow all the money they can — rather than see their families dip into their own pockets. Which means that if the Sanders plan were passed, then the most likely result would be that we would see record student debt just a few years down the road.

    America’s colleges are run by reasonably clever people. Put trillions of dollars in free money on the table, and they’ll figure out a way to absorb it. Indeed, subsidized student borrowing is believed by many economists to be an important driver of tuition inflation.

    Senator Sanders says he would pay for this bonanza with a tax on “Wall Street speculation,” i.e. a tax on savings. That’s the contemporary Democratic party: taxing savings to subsidize debt for relatively affluent people. The Sanders plan would mean paying $25 to the federal government every time you traded $5,000 worth of stock — or five times what you’d pay the typical online brokerage in fees. Over the long term, that imposes serious costs on actively traded funds such as the ones containing many Americans’ retirement funds. For example, if the fund that manages the retirement money of California’s public-sector employees were to sell off its Microsoft position, those retirees would be obliged to pay $11 million in new taxes — on top of what they already are paying.

    This will be a windfall for college administrators, giving them additional headroom to raise tuition. Administrator salaries already are among the fastest-growing areas of college spending: The president of the University of Massachusetts system was compensated to the tune of nearly $800,000 in 2016. Why not give yourself a raise? It isn’t your money.
    21

    This is bad fiscal policy, bad education policy, and poisonous politics. If that is a foretaste of 2020, it is going to be an ugly scene.
    https://www.nationalreview.com/2019/...an-unworkable/

  2. #2 | Top
    Join Date
    Nov 2016
    Posts
    41,961
    Thanks
    3
    Thanked 22,041 Times in 13,848 Posts
    Groans
    0
    Groaned 3,042 Times in 2,838 Posts

    Default

    Article is extremely misleading, not up to usual WSJ editorial standards

    "majority of all student loan debt is held by people with graduate degrees?" Pretty blanket statement implying help on student debt will be "subsidizing" future lawyers and doctors all at the cost to poor people and individuals who never went to college. Such an understanding would mean that student debt isn't a problem at all unless you go to graduate school

    Warren's plan, here included in with Bernie's, calls for income qualifications, and Bernie's tax on "Wall Street speculation" is not a "tax on savings," but specifically a tax on such as bundling, derivatives, and credit swaps, not normal trade exchanges as the article again implies

    Not defending Bernie's plan, but if you are going to attack it at least be honest about it, the attempted "fight club" humor at the offset tells the reader this is nothing but a hit job aimed at a certain uninformed audience. This is the type opinion piece you would normally see in the likes of Brietfart and not the WSJ

  3. The Following User Says Thank You to archives For This Post:

    domer76 (06-26-2019)

  4. #3 | Top
    Join Date
    Mar 2011
    Location
    Delray Beach FL
    Posts
    114,996
    Thanks
    124,828
    Thanked 27,335 Times in 22,664 Posts
    Groans
    3,768
    Groaned 3,239 Times in 2,979 Posts
    Blog Entries
    3

    Default

    Quote Originally Posted by anatta View Post
    The Democratic presidential aspirants are having a cash-giveaway arms race, coming up with creative ways to shovel public funds into the pockets of likely primary voters
    This is a perfect description of what the Democratic Party of the Jackass is about these days. They have nothing but freebies and anyone but Trump. I don't see that as a winning message in 2020.
    "When government fears the people, there is liberty. When the people fear the government, there is tyranny."


    A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
    Author: Booker T. Washington



    Quote Originally Posted by Nomad View Post
    Unless you just can't stand the idea of "ni**ers" teaching white kids.


    Quote Originally Posted by AProudLefty View Post
    Address the topic, not other posters.

  5. The Following User Says Thank You to Truth Detector For This Post:

    dukkha (06-26-2019)

  6. #4 | Top
    Join Date
    Mar 2011
    Location
    Delray Beach FL
    Posts
    114,996
    Thanks
    124,828
    Thanked 27,335 Times in 22,664 Posts
    Groans
    3,768
    Groaned 3,239 Times in 2,979 Posts
    Blog Entries
    3

    Default

    Quote Originally Posted by archives View Post
    Article is extremely misleading, not up to usual WSJ editorial standards

    "majority of all student loan debt is held by people with graduate degrees?" Pretty blanket statement implying help on student debt will be "subsidizing" future lawyers and doctors all at the cost to poor people and individuals who never went to college. Such an understanding would mean that student debt isn't a problem at all unless you go to graduate school

    Warren's plan, here included in with Bernie's, calls for income qualifications, and Bernie's tax on "Wall Street speculation" is not a "tax on savings," but specifically a tax on such as bundling, derivatives, and credit swaps, not normal trade exchanges as the article again implies

    Not defending Bernie's plan, but if you are going to attack it at least be honest about it, the attempted "fight club" humor at the offset tells the reader this is nothing but a hit job aimed at a certain uninformed audience. This is the type opinion piece you would normally see in the likes of Brietfart and not the WSJ
    You silly nitwit; the article contains detailed descriptions of each Democratic idiots plan. Refute the facts nitwit.
    "When government fears the people, there is liberty. When the people fear the government, there is tyranny."


    A lie doesn't become the truth, wrong doesn't become right, and evil doesn't become good just because it is accepted by a majority.
    Author: Booker T. Washington



    Quote Originally Posted by Nomad View Post
    Unless you just can't stand the idea of "ni**ers" teaching white kids.


    Quote Originally Posted by AProudLefty View Post
    Address the topic, not other posters.

  7. #5 | Top
    Join Date
    Jul 2017
    Posts
    43,479
    Thanks
    12,574
    Thanked 23,756 Times in 16,563 Posts
    Groans
    249
    Groaned 1,622 Times in 1,532 Posts

    Default

    Quote Originally Posted by archives View Post
    Article is extremely misleading, not up to usual WSJ editorial standards
    "majority of all student loan debt is held by people with graduate degrees?" Pretty blanket statement implying help on student debt will be "subsidizing" future lawyers and doctors all at the cost to poor people and individuals who never went to college.
    not "help" -debt forgiveness, and yes it's a subsidy. and it's money to the well off

    Such an understanding would mean that student debt isn't a problem at all unless you go to graduate school
    grad schools are the egregious example- but low cost loans absorbed by any entity is a subsidy
    Warren's plan, here included in with Bernie's, calls for income qualifications, and Bernie's tax on "Wall Street speculation" is not a "tax on savings," but specifically a tax on such as bundling, derivatives, and credit swaps, not normal trade exchanges as the article again implies
    IRA money is bundled into these trades

    Not defending Bernie's plan, but if you are going to attack it at least be honest about it, the attempted "fight club" humor at the offset tells the reader this is nothing but a hit job aimed at a certain uninformed audience. This is the type opinion piece you would normally see in the likes of Brietfart and not the WSJ
    the real problem is it encourages more unfettered borrowing, while costs controls are not being addressed at all

  8. The Following User Says Thank You to dukkha For This Post:

    Truth Detector (06-26-2019)

  9. #6 | Top
    Join Date
    Jul 2006
    Posts
    183,528
    Thanks
    71,923
    Thanked 35,503 Times in 27,049 Posts
    Groans
    53
    Groaned 19,565 Times in 18,156 Posts
    Blog Entries
    16

    Default

    look at these idiots republicans defending making college NOT PAY OFF unless you are already RICH


    the party is still stabbing its self to DEATH


    still full of Dinos stuck in the tar and hoping to drink the tar to try and save them selves

  10. #7 | Top
    Join Date
    Mar 2018
    Location
    USA
    Posts
    34,430
    Thanks
    23,941
    Thanked 19,095 Times in 13,072 Posts
    Groans
    0
    Groaned 5,908 Times in 5,169 Posts
    Blog Entries
    1

    Default

    "The majority of all student-loan debt is held by people with graduate degrees. What this means is that relatively low-income people who never went to college are being taxed to subsidize the careers of people who went to law school or who took other advanced degrees."

    Well that shoots the conservative propaganda down. They claim student debt is held by people who majored in basket-weaving and can't ever pay it back.
    Personal Ignore Policy PIP: I like civil discourse. I will give you all the respect in the world if you respect me. Mouth off to me, or express overt racism, you will be PERMANENTLY Ignore Listed. Zero tolerance. No exceptions. I'll never read a word you write, even if quoted by another, nor respond to you, nor participate in your threads. ... Ignore the shallow. Cherish the thoughtful. Long Live Civil Discourse, Mutual Respect, and Good Debate! ps: Feel free to adopt my PIP. It works well.

Similar Threads

  1. Bernie Sanders a Vietnam War Draft Dodger. See Bernie... to Canada
    By liberalsAREracists in forum Current Events Forum
    Replies: 6
    Last Post: 01-27-2020, 06:49 PM
  2. Bernie Sanders.wants TOTAL BAILOUT for all 45 Million americans w student loan debt
    By Text Drivers are Killers in forum Current Events Forum
    Replies: 113
    Last Post: 07-03-2019, 09:18 AM
  3. Replies: 18
    Last Post: 11-21-2016, 09:55 AM
  4. Bernie's True Colors Prove Bernie Is A Wimp
    By Robo in forum General Politics Forum
    Replies: 0
    Last Post: 07-26-2016, 08:23 AM
  5. Diamond Jubilee Concert
    By cancel2 2022 in forum Off Topic Forum
    Replies: 4
    Last Post: 06-05-2012, 05:48 AM

Bookmarks

Posting Rules

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •