Somebody Has to Pay for Student Loan Forgiveness
August 24, 2022 by Michael Maharrey
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President Biden is expected to announce student loan forgiveness on Wednesday (Aug. 24). The plan will reportedly cancel $10,000 in student loan debt for anybody making less than $125,000 per year.
A lot of people think this is like waving a magic wand — poof — the debt is gone. But somebody has to pay and that somebody is the American taxpayer.
Nothing the government does is free. Ultimately, student loan debt forgiveness will add to the already massive budget deficit. That means Uncle Sam will have to borrow more money that taxpayers will have to repay, either in higher taxes or the inflation tax.
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And we know who all pay — the Taxpayers.
The economy will have more inflation to deal with and the moral hazards keep piling up!