Student debt cancelation isn’t paid for by the taxpayers, the federal government is the lender.
It’s costlier for the government to hold on to the debt.
Nina Turner @ninaturner
Thought leader. Activist. Senior Fellow at @RacePowerPolicy. Former Ohio State Senator & Professor.
Tweeted on August 21, 2022
[“Thought leader”? Yeah, I can see that. She is thinking of things almost no one else thinks of. Of course that is because she is delusional and/or evil, but still, it is “leading”.
I wonder which political party she identified with to get elected as an Ohio State Senator. Having crap for brains apparently isn’t a disqualifier.
Prepare appropriately.—Joe]
Professor of african-american history and women’s studies at cuyahoga community college. Ok, so “no brains” is certainly a plausible theory.
Before I dismissed her notion out of hand, I wondered if it was possible to be costlier to “hold onto the debt”. I’m not sure how you’d calculate that, since I’m not exactly an accountant, but I suppose that servicing the debt and administering the programs does incur a substantial cost, but could it be possible that there’s an element of truth buried in there?
I do know that student loans are handed out far too easily. My niece racked up 5 or 6 figures of debt in obtaining a fairly useless teaching degree. Since the loan money isn’t earmarked for tuition or associated costs, she spent a fair portion of her loan on clothing and crap. My brother ended up selling his house, in part, to pay off her loan.
I believe that supporting education through loans is a well-intentioned idea, but needs to be entirely more restricted in what colleges and programs are supported and how the money is spent. As far as forgiving loans for all the degrees in gender studies, etc.? Nah….
Government is extremely inefficient but the collection of loans can’t be much different than collecting taxes. If nothing else roll it into the individual’s taxes. The loan payment gets paid from the IRS withholding with the remainder applied to their taxes.
If “debt cancellation” makes sense then so does “tax cancellation”.
You can’t CANCEL the debt – you can only transfer it…
Correctomundo!
Actually, you can cancel debt. You simply zero out those fields in the spreadsheet. Nobody needs to pay it off, since the money was made out of nothing but electrons in the first place.
Debt is money created out of nothing. When you pay it off, the money returns to being nothing. Only while the debt is active does the money exist. The trick is that you have to pay real money as the interest. When debt is canceled, the bank loses nothing but the income stream of interest payments. Ah, the wonders of modern banking.
“Thought leader. Activist. Senior Fellow at @RacePowerPolicy. Former Ohio State Senator & Professor.”
And here I thought Joe Biden and Kamala Harris were a one off. Turns out they truly are the intellectual leaders of the left! Move over Obama!
That’s hilarious! That’s almost as good as the guy worrying Guam was going to roll over because the navy had to many people on it.
None of her friends in her “thought classes”, ever ask her why if the government has all the money. They need to tax us at all? Why not just print and spend whatever they want?
Too funny!
“None of her friends in her “thought classes”, ever ask her why if the government has all the money. They need to tax us at all? Why not just print and spend whatever they want?”
If not the “money shot”, this is the “Money Question.”
Thanks Wendy. Don’t ya wish sometimes you be that ignorant and get paid for it? Just once?
Lord love us. Maybe that’s why he kicks our ass every time we try it!
“Thought leader”. Here’s a thought: what happens if you’re wrong? Who pays the price?
This “thought leader” wants respect and status, and the authority that goes with those things. To that end, rather than doing work that would earn them respect and status, they go get a credential from The Petri Dish Of No Consequences.
Non-STEM academics; Government bureaucracy; Human Resources; The super rich; they make a bad call, egg each other on to make even worse decisions, and someone else has to deal with the fallout. Those are the Petri Dishes Of No Consequences. I’d add the old style media to that list, but I think they’re belatedly getting some consequences.
I’m not saying a good idea can’t come from a Petri Dish of No Consequences. But that’s not the way to bet.
Nina Turner is a black woman Democrat from Cleveland, president of “Our Revolution”, was a national co-chair for Bernie Sanders in 2020, and is currently a member of the Young Turks. That says everything you need to know about her.
This is an expansion based on my previous comment. Please forgive the wall of text. I think it’s important.
With regards to Joe the Usurper canceling some student debts: You have to understand how modern banking works, especially at the federal (“We own the printers!”) level. It costs them nothing in the short term to cancel debt. That doesn’t mean they won’t still raise your taxes, though.
Debt is money created out of nothing. It’s an entry in a spreadsheet. When you pay it off, the money returns to being nothing, a ‘0’ in the spreadsheet. Only while the debt is active does the money exist. The trick is that you have to pay real money as the interest. When debt is canceled, the bank loses nothing but the income stream of interest payments.
Paying off debts is deflationary. The money is returned to sender and destroyed. Canceling debts is inflationary, because the money isn’t destroyed. It’s still out there, being traded around. It’s exactly the same as printing money and handing it out. Okay, well, to be honest, it’s the issuance of the debt in the first place that is inflationary. But if the money isn’t zeroed out again through repayment, it is a permanent net increase in the money supply, making the rest of the currency worth just that bit much less.
Ah, the joys of modern banking. What, you thought that the banks could only lend out money they actually had on deposit? Silly citizen, that hasn’t been the case for decades.
In traditional fractional reserve banking, if a bank maintained a 5% reserve, they could lend out 95% of total deposits. In modern fractional reserve banking, they can lend out 19 times their total deposits. And if you put the loaned money back into a bank account, it counts as a deposit.
As an item of curiosity, the current mandatory reserve rate is: zero. Banks can create all the debt money they like, with no limit. They’re just numbers on spreadsheets, after all. Until the Fed monkeys around with the reserve percentage, forcing small banks to call in their loans, bankrupting small businesses. (Anybody else remember 2008? This is what really happened then to collapse the economy. And when small banks couldn’t meet the new, higher standard, the Fed forced them to sell out to the big banks.) (Never forget that the 2008 recession was a choice the government made. It didn’t happen by accident.)
I just saw a similar notion in the discussion section of the WSJ article on Biden’s action. The writer was claiming that this didn’t cost us anything because money is just stuff that’s printed by the Treasury.
Ludwig von Mises is spinning in his grave.
How?
Debt is an asset (if you are the lender).
It is a liability to the borrower.
Yes there are some administration costs but that is part of why they charge interest.
Having said that, I am well aware that accounting (and accountability for that matter) is not the government’s strong suit.
Debt forgiveness is fine. Even Biblical. Under debt jubilee. Just not the communist picky-choosy part. The who gets how much part.
Should a non-dischargeable loan system be set up in the first place? Was applying it to stupid kids, right? Was there nefarious intent in the first place?
It was pretty much fraud from the start.
It’s safe to say Obama threw the banks a bone as loans are considered an asset. After the ’08 crash they desperately need some way of staying solvent.
Our economy is all about managing eco-bubbles.
And just like running guns to mexican cartels. Giving hard loans to kids was done for the after-effect.
Sweet uncle Joe is saving us! (Even though it was him and Obama, with the communist college system rising prices that made those loans pretty much necessary.)
And the lesson once again? Power, money, control. Use any two, to get the third.
No matter. Nina Turner is still a moron. I one can see her being a communist thought leader quite easily.