Obama's plan for student loans

The federal deficit is a problem because while everyone's against it in theory, no one is for the spending cuts and tax increases it takes to reduce it in practice.
Another fun fact. To balance the budget by 2020 without raising more revenues (forget any tax cuts) federal spending across-the-board would have to be cut by 25 percent.
Running for office on the "we're taking 25 percent from your Social Security check" would not be popular. Tax increases would be just as if not more unpopular. We're committed to being the world superpower, and that's expensive, too.
Something will eventually give. The way our polity is organized, my guess is that spending on old people (I'm soon to be one!) will be cut drastically, and some form of VAT enacted to raise revenues in a way that does not disturb large holders of capital.

 

No, it's about priorities. Spend tax dollars on programs where there is a tangible return, like building bridges and other infrastructure; paying off student loans so young people have money to buy houses, etc.; spending money on education, or to continue to flush billions away on defense and on a military budget that never, ever goes down, or hundreds of millions on military equipment that gets blown up or abandoned.

Every blown up Hummer equals a bridge that could have been repaired, and used for the next 40 years.

Oh that's right, you can't fix education or anything by just throwing money at it. Unless it's defense or the military.

 

Paying off loans for young people, so that they can have money, is not a tangible return.

 

Subsidizing a college educated work force is a perfectly normal policy around the world. Of course it's a worthy goal. The "fuck you buddy" political philosophy is not going to serve our nation well. A citizenry with no stake in common outcomes is headed for major problems incompatible with constitutional democracy.

 

But why now? Timing seems curious.

 

Is it really so hard to read the details?

20 years for most.
10 years for public sector work.

And all the while you have to keep making payments on your loan.

Here's Mr. Farrar's post again:

 

Agreed. The know-nothing posse and their enablers in the media will spin this as just another welfare program, the way they've done with the earned income tax credit. Of course, you have to be working in order to be eligible for the EITC, but this fact usually gets lost in the shuffle of another excuse to bash the poor.

We'll see how this plays out.

 

Yes, Boom, we know you and your pals would prefer that Obama never do anything, anytime.

Sorry.

 

Seriously?

If that extra money enables them to afford a house instead of renting, it most certainly is a tangible return.

If it enables them to buy a (modest) new car, instead of driving a 10-year-old junker, it most certainly is a tangible return.

If it enables them to take a vacation, thus spending that money on tourism goods and services, it most certainly is a tangible return.

If it enables them to buy some consumer goods, it most certainly is a tangilbe return, since consumer spending spurs the economy.

Extra money in YOUR wallet, instead of in the bank's, is the best economic recovery plan there is. Consumer spending drives the economy.

 

Now because the State of the Union address is when all Presidents trot out stuff like this.

 

The mods seem to be giving us opportunity to discuss some important issues. Please stick with topic if you want to add something. Personal attacks will insure no discussion at all.

 

Ah, yes, the ol' Vlade Divac flop in the lane routine.