The Biden administration say they are nearing a decision on student-loan forgiveness, and it looks increasingly likely that the target number will be $10,000 per loan. Democratic leaders (Schumer, Warren) say this would stimulate the economy and relieve many low-income people of crushing debt. While I have supported many progressive initiatives, this is not one of them. The problem I have with it is the issue of fairness, but even more than that, of self-government.
In our family’s case, our childrens’ and grandchildrens’ educations were paid for by work and savings. Student loans are real loans, but differ from others in at least two ways, that they are deferred of payment until after schooling and that they cannot be defaulted through bankruptcy. There are numerous pros and cons that are widely circulated to this issue, but in drilling down on it I have this basic question: can the citizens of a democracy like ours be sufficiently responsible to make important loan decisions like this one?
Fiscal decisions are different from voting decisions in that they affect the decision-maker personally rather than collectively, so there is that. Also, inflation indicates that the economy has already been overstimulated, to me a glaring problem. Am I being too unsympathetic here? Is it a case of an over-protective “nanny state?”