Biden admin lies college debt forgiveness won't be inflationary

Jay Weber Show transcript 6-2-22

It has been many weeks since President Biden suggested that he was going to issue an executive order forgiving all sorts of student loan debt.

Many of us believe it is unconstitutional and wouldn’t survive a court challenge...

But it’s clear Biden and his team really, really want to do it.  

This instance is like Barrack Obama’s decision on the dreamer illegal kids. For years, he and his white house attorneys-correctly-said that they didn’t have the power to do it-and then- when pushed-did it, anyway.

Biden has said several times over the past year that he doesn’t have the power to do this. Until, magically, he did. And now he wants to do it.

Reince Priebus has predicted that Biden won’t do it, and his team is just floating it to placate their activists.

I’ve predicted that Biden-will do it- and probably right around Labor Day when the early voting starts in the earliest states. 

Biden and the dems want to use it to

Gin up excitement among the younger voters-especially young voters of color-

But even that’s a bad bet, given who it is that holds most of the college debt in this country. It’s mostly white suburbanites from well-off families who went for post-graduate degrees.

Only something like 20 percent of the college debt is held by families in poorer more urban districts and lower middle-class homes...

And I noticed that one of Biden’s minions even lied about that, yesterday.

Brian Deece claimed...

The impact on inflation-if hundreds of billions in student debt was magically forgiven-would be quite small.

His words ‘the impact on inflation would be quite small’.

Every economist with a public university degree knows that’s false. 

Of course, it would be inflationary. And significantly, so.

Folks, magically freeing up an extra 200, 300, 500 dollars in a bunch of family budgets- would have all sorts of new money flowing into the economy and juicing more inflation.

Do these democrats know they are lying? Or do they not know how an economy works?

Because it’s either one or the other: these dems know they are lying. Or they don’t know diddly about the economy.

Democrats cannot have it both ways.

They cannot claim that this move is going to boost the consumer economy....and then claim it isn’t going to drive up inflation.

Of course, it will. 

Injecting those final, 12-hundred dollar, covid relief checks into an economy suffering from struggling supply lines and limited goods is what touched off this run-away inflation in the first place-

What would another 380-billion dollars in student loan forgiveness do?

in fact- let’s hear from a venture capitalist named Kevin O’Leary. He was on CNBC yesterday. He apparently also pops up on shark tank (I don’t watch the show, I don’t know)-

But in about a minute and a half-boy does he nail the rank stupidity of this move to wipe out college debt.

He’s right about that, too. And I don’t know if O’Leary is liberal or conservative, but it doesn’t matter for this discussion-because stupid is stupid. Insane policy is insane policy.

And this plan to get taxpayers to pay off the loans of that sliver of America’s young people who have outstanding college loan debt- just as a bribe to have them voting democrat-

Would backfire big time on them. 

When this was floated a few months ago, I did a topic on it, just to prove how worked up people get over this idea. Annoyed and infuriated callers called in for 15 min straight, and we could have gone longer.

Many of the issues that the east coast elites in their bubble think are important, really aren’t out here in middle America. Most voters don’t care about the Sussman trial or free Peloton bikes for congressmen...

But they sure do care when one party is trying to dig into their pockets again-in order to ‘buy’ votes from a different constituency.

Tens of millions of Americans put themselves and/or their kids thru college and were better people and better Americans for doing it.

They feel no obligation to now offer that as a handout to future generations of kids that aren’t there’s: either work for it, yourself, or don’t go to college. Delay college if you must. But pay your own way.

And if Biden does this? And right as early voting gets underway?

The democrats are going to be shocked at the concussion. The backfire. That this creates for them.

photo credit: Getty Images