Biden’s Risky Student Loan Bet

President Biden recently ⁣made a trip to ​the West ‍Coast to raise campaign funds, but he didn’t stop there. ⁢He also decided to spend some of ⁤your hard-earned money.

On ⁤February 21, Biden made the announcement that he would be canceling $1.2 billion in federal student loans for 153,000 ‌borrowers. This is in addition to the more than ​$130 billion in student debt that he has⁣ already forgiven. According to⁤ the​ Penn Wharton school, these efforts ​will cost a total of $475 billion over the next⁣ decade.

Now, let’s take a closer look at just how‌ terrible ⁢this policy really is.

It’s not debt relief. It’s simply transferring the burden of debt from certain borrowers to the American taxpayer, who is already saddled ⁢with trillions of dollars in federal debt.

The cost of servicing this public debt⁢ is​ projected to soon exceed America’s⁢ defense budget. ⁣Talk about reckless spending.

It’s constitutionally dubious. The Supreme Court has already struck down Biden’s original⁢ debt⁤ transfer ⁣program, stating that‍ he⁢ overstepped his authority. ⁤Yet, he continues to find ways to bypass Congress and the judiciary with his “Saving on a Valuable Education” (SAVE) Plan.

This ⁣plan⁤ is⁢ also vulnerable ‍to legal challenges, as such far-reaching policies require congressional‌ authorization. It’s only a matter⁢ of time before a ⁣Republican state attorney general takes action against the federal government.

It creates moral hazard. By forgiving student⁢ debt, Biden is ⁢incentivizing ‌potential⁢ borrowers to take ‌on more debt, knowing that they will be bailed out‌ by the⁣ government. ‌Colleges and universities also have no⁤ reason⁣ to‍ control tuition costs, as they know the true customer is Uncle⁤ Sam.

This hazard extends beyond just the⁣ economic impact. Biden’s arbitrary exercise of ⁢power emboldens the far-left wing​ of the Democratic‍ Party, who will push for the ⁢transfer of⁣ other forms ⁤of debt to the state.

Laws are meant to⁣ discourage bad behavior, but Biden’s executive action⁤ rewards it.

The plan smacks of desperation. Biden is facing ‌a tough battle ​for re-election, trailing behind former President Trump in key swing states.​ His ​approval rating is also stuck in ⁣the low 40s, particularly among younger voters.

This student debt relief is a desperate attempt to appease a key⁤ constituency, following the old-school Democratic strategy⁣ of ‌concentrating benefits ‍to ‍certain groups‍ while spreading the costs among the⁢ general electorate.

Beneficiaries of this⁢ plan will receive an email ​with the president’s signature, just ⁤so they know who ⁢to‌ thank.

However, Biden’s gambit may not pay off. Despite backing popular ‌initiatives, his job approval remains low. Voters blame ​him for rising food prices ‌and ⁢interest ‍rates, and ​they feel his policies have not helped the middle class.

Biden’s student debt plan is more controversial‌ than ‍the⁤ bipartisan legislation he‍ has signed into ⁤law. It⁣ affects a smaller number of​ voters and creates resentment among those ⁣who have already paid off their loans or did not attend‌ college. It’s yet another⁤ blow to non-college voters who are ⁣struggling ​with high prices and⁢ job losses.

So why is there such ‌a disconnect between Biden’s actions and voters’ ‌attitudes? It’s because the electorate has already judged​ him as incapable of serving⁢ a second term. ‍This puts Biden​ in⁣ the difficult position of trying to ‍please his left-wing base while hoping that ⁣independent voters will⁤ turn‌ against​ Trump and MAGA.

No wonder ⁣he’s​ desperate.