{"id":1458669,"date":"2022-04-30T07:15:21","date_gmt":"2022-04-30T11:15:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1458669"},"modified":"2022-04-30T07:15:24","modified_gmt":"2022-04-30T11:15:24","slug":"student-loan-cancellation-would-mean-higher-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/student-loan-cancellation-would-mean-higher-inflation\/","title":{"rendered":"Student Loan \u201cCancellation\u201d Would Mean Higher Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstudent-loan-cancellation-would-mean-higher-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1458669&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>There are many principles involved in canceling all or part of the $1.4 trillion in student loan debt, not the least of which is the moral hazard in forgiving debts freely assumed. But since the words \u201cleftist\u201d and \u201cmoral\u201d rarely roll off the tongue in the same sentence, there are other principles involved that make forgiving student loan debt a terrible idea.<\/p>\n<p>There is the question of fairness. Most of that student loan debt is being held by graduates more than able to pay it back.<\/p>\n<p><a href=\"https:\/\/thehill.com\/opinion\/education\/535517-student-loan-forgiveness-would-be-windfall-for-dentists-doctors-and-lawyers\" target=\"_blank\" rel=\"noopener\"><em>The Hill<\/em><\/a> reports that \u201cThe field with the most loan forgiveness per borrower is dentistry, where the average borrower would offload $250,000 of debt onto taxpayers. Borrowers in the field of medicine would have an average of $174,000 forgiven. And borrowers in law would have an average of $119,000 forgiven.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Sandy Baum: &#8220;We\u2019re now talking about also paying off the [student] debt for people who can afford it. And the people with the biggest debt are people who went to grad school: doctors and lawyers and so on.&#8221; (via <a href=\"https:\/\/twitter.com\/cassandrecoyer1?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@cassandrecoyer1<\/a>) <a href=\"https:\/\/t.co\/6xTPGYES2d\" target=\"_blank\" rel=\"noopener\">https:\/\/t.co\/6xTPGYES2d<\/a><\/p>\n<p>\u2014 Urban Institute (@urbaninstitute) <a href=\"https:\/\/twitter.com\/urbaninstitute\/status\/1520035620491563010?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 29, 2022<\/a><\/p>\n<\/blockquote>\n<p>The moral hazard and the unfairness of student loan forgiveness pale in comparison to the practical reason not to forgive the debt: several experts point to the likelihood that inflation would get a boost with student loan forgiveness.<\/p>\n<p>Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), says that \u201cdebt cancellation may be an extremely appealing political talking point, but it is not good policy.\u201d<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/politics\/biden-canceling-student-debt-make-inflation-worse\" target=\"_blank\" rel=\"noopener\">Fox Business News:<\/a><\/p>\n<blockquote>\n<p>\u201cIt is costly, inflationary, poorly targeted, and fails to address the root problems in our higher education financing system,\u201d MacGuineas said in a statement Thursday. \u201cFull debt cancellation would be a massive hand-out to rich doctors and lawyers, would worsen our inflation crisis, and would cost almost as much as the entire 2017 tax cuts.\u201d<\/p>\n<p>\u201cEven partial debt cancellation would be costly, regressive, and inflationary,\u201d she continued. \u201cForgiving $10,000 per person of debt would cost as much as universal pre-K or a full extension of the expanded ACA subsidies.\u201d<\/p>\n<p>\u201cEither the President is serious about reducing deficits and getting inflation under control, or he is not. The White House can\u2019t have it both ways,\u201d MacGuineas added. \u201cWe need to be focusing on a serious and effective agenda that prioritizes sound policies, not poorly targeted political giveaways.\u201d<\/p>\n<\/blockquote>\n<p>Student loan debt is an easy target for far-left radicals like Senator Elizabeth Warren. But she\u2019s playing a shell game with the economy in proposing it.<\/p>\n<p>Do any Democrats ask what the inflationary impact would be of canceling hundreds of millions of dollars in student loans?<\/p>\n<blockquote>\n<p>Noah Weinrich, a spokesperson for Heritage Action, the campaign-side sister organization to conservative think tank the Heritage Foundation, told Fox News Digital that canceling student debt \u201cwould raise inflation by up to 20%.\u201d<\/p>\n<p>\u201cMake no mistake: this is a handout to wealthy, educated voters that will come at the expense of higher prices for food, gas, and energy for working American families who won\u2019t see a dime of relief \u2014 not to mention higher taxes,\u201d he continued. \u201cThis is an absurd election-year gimmick that punishes most Americans.\u201d<\/p>\n<\/blockquote>\n<p>Manhattan Institute senior fellow Brian Riedl was less emphatic about the inflationary impact of canceling the debt. He thinks its impact on inflation would be negligible. But that doesn\u2019t make it good policy.<\/p>\n<blockquote>\n<p>\u201cThe problems with student loan forgiveness are that the policy would transfer these liabilities over to the taxpayers (raising deficits and ultimately taxes), disproportionately benefit upper-income attorneys and doctors, and also send a signal to current and future college students that they should borrow even more on the expectation of future loan forgiveness programs,\u201d he added.<\/p>\n<\/blockquote>\n<p>That\u2019s it, exactly. Unless there is massive, radical reform of student loan programs \u2014 not just the major programs like Pell Grants and Sallie Mae \u2014 we\u2019re going to be right back where we started 20 years from now.<\/p>\n<p>And radical lefties \u2014 maybe Senator Warren\u2019s kid \u2014 will once again be blaming the crisis on greedy bankers and the rich.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many principles involved in canceling all or part of the $1.4 trillion in student loan debt, not the least of which is the moral hazard in forgiving debts<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1458669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1458669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1458669"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1458669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1458669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1458669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1458669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}