The Los Angeles Times reports:
Sen. Elizabeth Warren of Massachusetts is unveiling a proposal to wipe out student debt for millions of borrowers, making her the only major 2020 presidential candidate to advance such an ambitious plan to relieve the growing burden of higher-education loans on Americans and the economy.
The proposal would cancel up to $50,000 in debt for people with annual household income under $100,000. Beyond that income threshold, smaller amounts of debt would be canceled, but no one with more than $250,000 in household income would be eligible.
To keep students from accumulating more debt in the future, Warren also proposes making two- and four-year public colleges tuition free, according to a plan unveiled in advance of a Monday evening CNN town hall focused on issues of interest to young voters.
With a price tag of $1.25 trillion over 10 years, Warren’s higher-education initiatives up the ante on an issue that most 2020 Democratic presidential candidates have been trying to address in more modest ways.
At issue is the top economic challenge for a key Democratic constituency — millennial voters, many of whom have gone to college and left school during a decade that has seen an explosion of student borrowing. Student loan debt has more than doubled, to about $1.5 trillion, over the last decade, according to a Federal Reserve report that found the trend has contributed to declining rates of homeownership among young adults.
OK, so here we go again – another Democrat with another trillion-dollar giveaway to “buy” votes in 2020. And don’t think that this idea is not already common among Democrats.
Meanwhile millions of debt-laden millennials are going to think that this is a wonderful idea. But the plan has two fundamental flaws:
*it excuses those who accumulated the debt in the first place. Why should taxpayers bail out students who made bad decisions? Many of these students got worthless degrees like Transgender Dance Therapy or Climate Apocalypse. That is their own problem. Students who got useful degrees are more likely to be able to pay off their debt.
*but even worse, it ignores the real source of the problem which is the left-wing academic elites who have been peddling overpriced and useless college degrees to millions of students for many decades and profiting handsomely off of it.
This whole college system has become a major scam. The idea that “everyone must go to college” emerged in the prosperous 1950s and 1960s when college was relatively cheap and good jobs for graduates were plentiful. Young people went to college as a “rite of passage”. So a guy might study philosophy and then go to work in a bank. No big deal.
The colleges then got the idea that they had an essential commodity to sell, and it wasn’t education. It was the prestige of education, that you paid the cost and that that guaranteed you a future through your university pedigree. The colleges have played on this and jacked up their tuitions astronomically at 3 to 5 times the rate of inflation since the 1970s.
For instance, a gallon of gasoline cost $1 in 1980. It is now $2.70 a gallon in my area, or 2.7 times as much. But an elite college education can now be 12 times as expensive as it was back then, or more.
Yet these same colleges and universities teach their students that the oil companies are ripping us off. That is done to divert attention from the colleges that have been ripping us all off for decades.
And with student loans easily available the colleges let their costs go through the roof without any checks on their greed. Government loans made the problem worse. Students were able to get easy loans to pay skyrocketing tuitions but often ended up with useless degrees that had no value in the marketplace.
The government did nothing about these soaring costs because the leftists in the government were in cahoots with the leftists in the universities and with those in the media who ignored this price-gouging and profiteering by their cronies.
‘Pocahontas’ Warren was a Harvard professor. And Harvard is the leader in this scam but Warren does not point her finger at Harvard (with its $38 billion endowment (savings account)). No, she is pointing her finger at “rich people” whom she wants to pay more in taxes to get all of this student loan debt off of the hook.
It gets worse. Notice this sentence about Warren’s plan:
Warren also proposes making two- and four-year public colleges tuition free
If this happens it means that public colleges will spiral down further into the mediocrity of our ‘free’ public K-12 schools. And remember this fact:
The leading cause of American poverty is our terrible “free” public school system that has failed to educate tens of millions of people in the most basic ways.
Second, these colleges will never be “free”; nothing is ‘free’. This is just a trick to get votes.
And third, if these colleges start with “free” tuition then just imagine a small community college that suddenly gets hundreds more students because it is ‘free’, including lots of kids who shouldn’t be there but who are going to college simply because they don’t have to pay. How are these schools going to handle this big influx?
They can’t. Naturally ‘Pocahontas’ has it all figured out. The Los Angeles Times reports:
Warren said the cost of the program would be covered by some of the $2.75 trillion in revenue that would be raised from the “wealth tax” she has proposed — a 2% tax on Americans with assets worth more than $50 million, with an additional 1% surcharge on wealth over $1 billion.
This comes on top of “taxing the rich” for everything from food stamps, to housing subsidies to illegal immigration.
And since most of “the rich” are liberals like Zuckerberg and Soros and the Twitter and Google guys, Nikitas3.com would say that that might be a good idea.
But history has shown that the more you tax “the rich” the more negative is the impact on the economy.