Forgive student debt and boost economy

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Austerity is the wrong answer. Assets have to be used to create additional assets.

If you hoard an asset, it will diminish in value. The transnational corporations and the megabanks are all hoarding assets. Only the government with its fiat currency has the power to increase the circulation of money to its appropriate velocity.

Our greatest asset is our educated youth. And how are we treating them? To a trillion-dollars-plus debt burden of student loans, a shyster form of debtor’s prison.

Can anyone remember the policy of a free public education because it is good for business? One correct step would be for the president to declare a jubilee on student debt and forgive it all at one fell swoop.

The money isn’t going anywhere. It is just bits and bytes on paper and in cyberspace. The relieved students will spend and invest this stimulus on other things rather than interest to banks and the government, which clearly don’t need the money.

Charles Potts

Walla Walla

Comments

PearlY 1 year, 2 months ago

Great! While we're at it, let's have the government forgive all home mortgages, car loans, boat loans, jet-ski loans and flat-screen TV loans. Think what a boost to the economy that would be!

The government can just keystroke in a few trillion bits and bytes to pay off the lenders, who can use those bits and bytes to pay their employees and lend more money, everyone who gets some of those can run out and buy a new I-pad, and pretty soon that new money will be whirling around with the velocity of a tornado. Just like it did during the Weimar Republic in the 1930s. And unlike the Germans, we won't need wheelbarrows to carry around our hyperinflated currency, just a magnetized strip of plastic.

Then the government can declare inflation illegal, like Zimbabwe did in 2007. Teachers were getting paid trillions per month; wouldn't the WEA love that! Of course, a monthly paycheck would only pay for one day's bus ticket, so it wasn't a perfect system. Anyway, that worked so well there that within two years, the Zimbabwean dollar ceased to exist. And finally, we'll get some cuts in government spending: We can close the U.S. Mint and just use other countries' currencies, like Zimbabwe does today.

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chicoli 1 year, 2 months ago

Good to hear from you Charley! In many countries, including Spain and Ireland, college education is free. Students still have to pay for their jet-ski, car, TV and mortgage loans! Wait, students do not frequently get into those kind of loans. But if they do, daddies for sure, will pick up the tab! Tsk Tsk!

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Cowboy01 1 year, 2 months ago

That’s a little over board considering the government gives billions away to other countries every year but yet all those dollars coming in are from the people that have got an education and are spending an arm and a leg for it every month. Truck payment jet ski’s etc. are a different loan and most people that have students loan can’t afford any of that stuff because there paying back at $500 a month for the next 30 years!
But you’re right it would end us as we know it, and by the way the government makes a huge profit off the student loan program.

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chicoli 1 year, 2 months ago

Nice posting! Just one comment in the observation that the government profit is only 3.5%, and not 6.5% as proposed by the Conservative members of Congress.

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Cowboy01 1 year, 2 months ago

yes, those are the starting rates. I have seen them in the 8% and most are 5.5% to 6%.

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VinoTinto 1 year, 2 months ago

I think the federal government should guarantee student loans at a minimal interest rate. Student loans should never, ever go to 8%, and students need to beware of these high interest student loasn. I think a fair interest rate for a student loan is around 2.50 to 3.25 percent. Congress should take action and lower high interest loans to lower interest loans.

I don't think writing off all student debt is wise. When I took out my student loans, at several points while I was signing, I was reminded how burdensome loans can become. Plus, the government cannot continue to reward people for making poor financial decisions. Getting an education and taking out a student loan is a calculated risk ... it usually goes well, but sometimes it does not.

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namvet60 1 year, 2 months ago

Obviously your student loan was a waste of money!

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chicoli 1 year, 2 months ago

VinoTinto, never mind negative people pestering your well thought arguments. The best answer is to ignore HIM!

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VinoTinto 1 year, 2 months ago

NamVet clearly didn't spend any money on an education, so he just probably just shut his pie hole.

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namvet60 1 year, 2 months ago

This post really explains my reasoning for you getting short changed on your student loan. Maybe after you received your student loan you should have attended classes, Ya Think!

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VinoTinto 1 year, 2 months ago

NamVet for someone who didn't go to college you've managed to obtain your BS. In fact, everything that spills from that sour mouth of yours is total BS! You should go back to school ... it's never too late to learn ... on second thought in your case it is. Continue being ignorant, it seems to come naturally for-YA!

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