Joe Biden's handlers trotted out our dementia president on Wednesday to announce another massive spending measure that will soak taxpayers for hundreds of billions, even as previous gluttonous spending has caused record inflation.
Biden announced that the government will be erasing $10,000 in debt for earners making $125,000 or less and $20,000 for Pell Grant recipients.
"The plan will cost between $300 billion and $980 billion over 10 years, while the majority of relief will go to borrowers in the top 60% of earners according to an analysis by" the University of Pennsylvania's Wharton School, Zero Hedge noted.
The Wharton School also said in its analysis that the plan will also worsen inflation at a time when Americans are already paying near-record level prices for a range of goods and products.
In addition, Biden announced that the current pause in student loan payments, set to expire Aug. 31, has been extended -- just in time for the midterm elections -- until Dec. 31.
Nixing $10,000 of student loans per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to the nonpartisan Wharton analysis. Less than 32% of the funding would benefit Americans in the two lowest income quintiles, while 42% would benefit those earning more than $82,400 per year.
“People in higher income households are more likely to have student debt and they owe more on average. So, most cancellation plans would benefit the wealthy more than middle-or lower-income families,” Cato Institute education policy analyst Colleen Hroncich the outlet.
The Brookings Institute noted in its own report on the issue that one-third of student debt is currently owed by the wealthiest 20 percent of American households, while just 8 percent is owed by the bottom 20 percent. The report said that is largely due to the fact that more degrees are usually required for higher-paying positions and professions.
“Postsecondary education typically results in much higher lifetime earnings — $1.2 million for a bachelor’s degree and $3.1 million for a professional degree like law or medicine,” Hroncich told the Daily Wire.
According to the Wharton School analysis, a permanent cancellation announcement by the White House could also lead student debt holders to “eventually reorganize their financing toward additional borrowing.” That, in turn, will likely lead to universities raising their tuition rates in response because that's what happens when the government hands out taxpayer money hand over fist.
“All federal student aid creates market distortions through tuition and credential inflation,” Hroncich continued. “When government gives people money to attend college, there will be more demand for college. And when more workers have college degrees, employers start looking for workers with degrees even for positions that historically did not require one.”
In addition to convincing more Americans to vote for him and Democrats again in November despite the mess they've made of the country, Biden's handlers are also no doubt attempting to burnish his image and lift his abysmal approval rating.
“[T]he most recent edition of the Harvard Youth Poll indicates that Biden’s approval rating among young voters is a meager 41% — constituting an 18% decline since the spring of 2021. Likewise, the poll showed that young Republicans are more likely to vote than their Democrat counterparts in the upcoming midterm elections,” the Daily Wire reported.
Despite this giveaway of hundreds of billions of dollars, it still isn't enough for the Marxist leftists who essentially run the Democratic Party now. Lunatics like AOC and Sen. Elizabeth Warren think Biden should forgive at least $50,000 in student debt for all debtholders, an amount that could reach up to $1 trillion easily -- even as the U.S. national debt is already nearing an impossible-to-repay $31 trillion.
Our country is circling the drain, and it isn't clear what anyone can do at this point to stave off our total engineered collapse.
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