{"id":1624168,"date":"2022-08-27T13:03:51","date_gmt":"2022-08-27T17:03:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1624168"},"modified":"2022-08-27T13:04:39","modified_gmt":"2022-08-27T17:04:39","slug":"bidenomics-student-debt-amnesty-could-cost-1-trillion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenomics-student-debt-amnesty-could-cost-1-trillion\/","title":{"rendered":"Bidenomics: Student Debt Amnesty Could Cost $1 Trillion"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/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%2Fbidenomics-student-debt-amnesty-could-cost-1-trillion%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=1624168&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--><p>Welcome to Bidenomics, where the president\u2019s plans to fix the student debt crisis could drive up both <a href=\"https:\/\/www.dailywire.com\/topic\/inflation\" target=\"_blank\" rel=\"noopener\">inflation<\/a> and the overall cost of <a href=\"https:\/\/www.dailywire.com\/topic\/colleges\" target=\"_blank\" rel=\"noopener\">college,<\/a> while doing nothing to fix the root of the problem, and <a href=\"https:\/\/www.dailywire.com\/topic\/national-debt\" target=\"_blank\" rel=\"noopener\">cost<\/a> taxpayers as much as $1 trillion.<\/p>\n<p>According to the Wharton School, the plan is going to cost a bit more than the marketed $300 billion price tag. Biden\u2019s \u201cdebt cancellation alone will cost up to $519 billion, with about 75% of the benefit accruing to households making $88,000 or less,\u201d Wharton <a href=\"https:\/\/budgetmodel.wharton.upenn.edu\/issues\/2022\/8\/26\/biden-student-loan-forgiveness\" target=\"_blank\" rel=\"noopener\">announced<\/a> in a new study.<\/p>\n<p>\u201cLoan forbearance will cost another $16 billion\u201d and \u201cthe new income-driven repayment (IDR) program would cost another $70 billion, increasing the total plan cost to $605 billion\u201d at a minimum based on Wharton\u2019s model.<\/p>\n<p>\u201cDepending on future IDR program details to be released and potential behavioral (i.e., \u2018non-static\u2019) changes, total plan costs could exceed $1 trillion,\u201d the school warned.<\/p>\n<p>For his part, Biden doesn\u2019t believe that massive government spending contributes to inflation. In the spring, the president <a href=\"https:\/\/www.dailywire.com\/news\/im-sick-of-this-stuff-biden-complains-that-the-american-people-believe-increased-government-spending-causes-inflation\" target=\"_blank\" rel=\"noopener\">barked<\/a> that he was \u201csick\u201d of criticism against his administration\u2019s spending plans.<\/p>\n<p>\u201cWe have to talk about it because the American people think the reason for inflation is government spending more money. It\u2019s simply not true,\u201d he claimed. Even the Associated Press <a href=\"https:\/\/apnews.com\/article\/russia-ukraine-biden-covid-health-business-772e1eb45fb5981f3a2b6f2a4b0d201f\" target=\"_blank\" rel=\"noopener\">dinged<\/a> Biden for that false statement, explaining to the president that high spending does indeed contribute to rising prices.<\/p>\n<p>Yet even before Wharton\u2019s astronomical pricetag was released, folks like former President Barack Obama\u2019s top economic advisor Larry Summers were blasting Biden\u2019s bailout. Summers argued this week that the plan will add to inflation woes.<\/p>\n<p>\u201cEvery dollar spent on student loan relief is a dollar that could have gone to support those who don\u2019t get the opportunity to go to college,\u201d Summers <a href=\"https:\/\/www.dailywire.com\/news\/raises-demand-and-increases-inflation-obamas-top-economist-shreds-biden-plan-for-student-loan-cancellation\" target=\"_blank\" rel=\"noopener\">explained<\/a>.<\/p>\n<p>\u201cStudent loan debt relief is spending that raises demand and increases inflation. It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college,\u201d he added. \u201cIt will also tend to be inflationary by raising tuitions.\u201d<\/p>\n<p>Richard Vedder, a senior fellow at the Independent Institute and an economics professor, also recently <a href=\"https:\/\/www.foxbusiness.com\/politics\/student-loan-handout-illegal-inflationary-immoral-inequitable\">explained<\/a> for Fox News that the debt cancellation could lead to students taking out more student loans while colleges hike up prices even more.<\/p>\n<p>\u201cForgiving student loans increases incentives for colleges to raise tuition and fees more aggressively,\u201d Vedder argued. \u201cStudents will be emboldened to borrow more, thinking \u2018I will not ever have to pay the loans back.\u2019\u201d<\/p>\n<p>Vedder noted that the empirical data show that \u201cmost new federal student loan money ends up being absorbed by higher tuition fees; universities and their staffs benefit much more than students.\u201d<\/p>\n<p>Furthermore, Biden\u2019s debt plan does nothing to stop the actual problem \u2014 government-backed loans giving cover for colleges to raise prices. The students taking out loans today will find themselves in a similar situation 10 years down the road, albeit with different payback options.<\/p>\n<p>In short, the preliminary data suggests Biden\u2019s debt amnesty will do <em>zilch<\/em> to fix the crisis or help the economy. In the words of attorney Mark Meuser, \u201c<a href=\"https:\/\/www.dailywire.com\/news\/like-a-band-aid-on-gangrene-why-forgiving-student-loans-is-unconstitutional\">It\u2019s like putting a bandaid on gangrene<\/a>.\u201d That\u2019s Bidenomics in action, folks.<\/p>\n<p><em>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/p>\n<p><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to Bidenomics, where the president\u2019s plans to fix the student debt crisis could drive up both inflation and the overall cost of college, while doing nothing to fix the root of the problem, and cost taxpayers as much as $1 trillion. According to the Wharton School, the plan is going to cost a bit &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1624170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1624168","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\/1624168","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1624168"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1624168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1624170"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1624168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1624168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1624168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}