Senator Elizabeth Warren and members of the Left Squad in Congress are making serious efforts to erase student loan debt.
Student loan debt reached $ 1.6 trillion in 2019, according to US News and World Report.
Warren: “The Biggest Stimulus”
At a New York Times summit, Senator Warren Joe Biden, who the media said won the presidential election, called on student debt to be reduced and said it was the “biggest stimulus” for economic growth after the coronavirus.
“My job is to Joe Biden and Kamala Harris to do the things we can do to cancel student loan debt for tens of millions of Americans. [the] The biggest stimulus we could add to the economy, ”said Warren.
Senator Chuck Schumer said this week that he was working with Warren to advance a plan to cancel the first $ 50,000 in debt for every American, which Biden could do through executive action “contrary to the law.”
RELATED: Biden Spokesperson Says Ocasio-Cortez and the far left wouldn’t be disappointed with his agenda
Warren suggested in a tweet that student debt was a racist issue, stating that “canceling student loan debt will create wealth for black and browns and help fill the racist wealth gap.”
Generations of discrimination have left color communities with less savings and intergenerational wealth, forcing them to borrow more equally. Termination of student loan debts will strengthen black and brown wealth and close the racial wealth gap.
– Elizabeth Warren (@ewarren) November 18, 2020
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Members of the left “cadre” such as Alexandria Ocasio-Cortez and Ilhan Omar, as well as other members of Congress, join their plan.
A popular argument is that since the U.S. government loves to bail out large corporations at huge tax costs, it should also bail out student loan debtors.
Student Loan Forgiveness: THIS IS ACCIDENT
Corporate bailouts: Understandably, have a nice day
– Donna Imam (@donnaimamTX) November 19, 2020
Student loan forgiveness is actually good
– Alexandria Ocasio-Cortez (@AOC) November 16, 2020
Women have $ 929 billion in student loans, nearly two-thirds of our total student debt, and black women have more debt than other women.
In an economic crisis that is already affecting us more, debt relief for students is a feminist issue. pic.twitter.com/gXQRvXu2fk
– Women’s march (@womensmarch) November 18, 2020
It is really easy. We want to wipe student and medical debts because we believe education and healthcare are human rights.
– Cori Bush (@CoriBush) November 18, 2020
No instructions required, the answer is yes.https: //t.co/axQGEGNUY7
– Ilhan Omar (@IlhanMN) November 18, 2020
RELATED: Elizabeth Warren Calls on Biden Bypass Congress to Adopt “Most Advanced Platform for Economic and Racial Justice … Ever”
Serious criticism from economists
However, the plan has had serious critics, not only from right-wing commentators but also from economists.
Adam Looney, an economist at the Brookings Institute, said student debt relief was “not a great form of incentive,” as the biggest winners from it would be higher incomes.
Economists argue that low earners are more likely to fuel the economy by spending more than saving, and therefore with a higher degree you would be more likely to get a higher paying job if you graduate.
Total student debt relief would reach a whopping $ 1.56 trillion.
As NPR points out, various plans by Warren, Bernie Sanders, and others would cost the government well over $ 1 trillion. The government is of course funded by taxpayers.
The debt does not go away because someone has to pay it.
Like workers who didn’t go to college.
Student loan forgiveness means taking money from workers (plumbers, firefighters, garbage collectors, transit workers) and giving it to middle-class kids who haven’t studied for 4 years and have a lot of sex. Tuition fees will go up and more children will borrow. Clever! https://t.co/I22xpnNhL2
– James Altucher (@jaltucher) November 19, 2020
Allocating student loan debt does not mean that the debt will go away. It just means that your burden is now on everyone else. SMH.
– Joy Villa (@Joy_Villa) November 18, 2020
For his part, Biden said he wanted to cancel some student loan debt immediately when he took office, albeit the first $ 10,000 instead of the $ 50,000 that Warren and Schumer proposed in their plan.
Ironically, Breitbart’s Joel Pollak noted that Joe Biden was responsible for supporting the law that prevented the forgiveness of student loan debts on bankruptcy.
Ironically, @JoeBiden supported the law that prevents student loans from going bankrupt. https://t.co/R0BiQ5LC7W https://t.co/HXODmbA9WR
– Joel Pollak (@joelpollak) November 19, 2020