The Government’s Education Noose

Sunday, February 22, 2015
Posted in category Public Uneducation

According to a Bloomberg story, the nation’s second largest source of debt is government loans to provide for college. The national student loan balance sits at just over a trillion dollars, and that is triple where the balance stood in 2005. Delinquencies are rising and sit above 11%. A compelling quote from the story:

“Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student-loan balances and delinquencies is concerning,” Donghoon Lee, research officer at the New York Fed, said in an e-mailed statement. “Student-loan delinquencies and repayment problems appear to be reducing borrowers’ ability to form their own households.”

Noah Smith wrote an article for Bloomberg, also found in the Chicago Tribune, suggesting that perhaps we could relieve the burden on the millennials by allowing them to expunge some or all of their student debt because the government can borrow at low or zero interest rates and can therefore share the freebies. The writer, a finance professor and writer, doesn’t question the government intervention required to arrive at and sustain that borrowing rate that hovers at or near zero, and he doesn’t speculate about what happens when “near zero” begins to spiral upward as the current interventions become unsustainable.

Smith refers to this relief of debt as part of the battle against poverty, ignoring the fact that the entitlement-oriented millennials can afford every technology device known to man, new cars, vacations abroad, and all else. Every time I indulge in fine dining at pricey restaurants, half the place is packed with these “poverty-ridden” millennials spending oodles of bucks eating/drinking out while they cover their lack of real disposable income with the government’s other noose, credit cards. The notion of ‘free everything’ and debt forgiveness has never been more directly associated with the entitlement mentality of a White House regime until the ascent of the current Forgiver-in-Chief. Google has it covered:

obama

 

Be Sociable, Share!
You can leave a response, or trackback from your own site.

Leave a Reply