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De Omnibus Dubitandum - Lux Veritas

Friday, May 20, 2022

Cancelling Student Loans: More Poor-to-Rich Redistribution from the Left

May 2, 2022 by Dan Mitchell

It is very common for politicians to cause a problem with government intervention and then use the problem as an excuse for even bigger government. I call this the lather-rinse-repeat cycle   of government failure.And the current controversy over student loan forgiveness is a perfect example.

  • Politicians decided to subsidize student loans.
  • Colleges and universities predictably responded by increasing tuition so they could grab this additional money.
  • Politicians are now responding to the government-created crisis by pushing loan forgiveness.

I could write a column about how this will make a bad situation worse. Heck, I already have written that column. Several times. But I want to focus today on a different aspect of this issue. Biden on his allies in Congress are pushing a policy that will redistribute money from lower-income people to higher-income people. Let’s look at some of the findings of a new study by Professor Sylvain Catherine at the University of Pennsylvania and Professor Constantine Yannelis at the University of Chicago...........To Read More....

 

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