You may be familiar with Joe Biden’s move to cancel up to $20,000 in student loans for some individuals. This was clearly a move ahead of the midterms to gain support from some of the whining, socialist Bernie Sanders supporters. This is a crowd from Gen Z who thinks they’re entitled to anything and everything.
You also may think it is frustrating and outright immoral to basically force the hard-working and overtaxed Americans to foot the bill for a bunch of unemployed gender studies majors who took on a ridiculous amount of debt to provide nothing of value for society. Well, wait until you see how some will spend the extra money they will now have.
A survey conducted by intelligent.com asked individuals who are poised to receive the debt relief, how they intend to make use of the additional money they will have once their payments are reduced. Here are some of the ridiculous results.
Nearly 75 percent of the applicants said they were likely to spend their extra money on non-essential items, such as vacations, smartphones, etc.
Unsurprisingly, twice as many Democrats than Republicans said it was acceptable to spend the forgiven money on non-essentials.
Almost 80 percent of the debt relief applicants admitted they should use the money more wisely. 40 percent of the applicants said the student loans they have, haven’t negatively impacted their lives, defeating the entire purpose of the debt relief to begin with.
Here is a list of the non-essentials some the applicants said they would spend their money on:
- Smartphone (44%)
- Investing in the stock market (43%)
- Gifts (42%)
- Gaming system (36%)
- Wedding (30%)
- Drugs/Alcohol (28%)
- Gambling (27%)
Let that sink in. Your hard-earned tax dollars are going to work to fund the hedonistic consumerism of ungrateful Gen Z and Millennials.
This is essentially the confiscation of your private property, through taxation on your income, and the redistribution of it to people who will squander it on meaningless items instead of doing something worthwhile with it. You would think that most people experiencing record high inflation would put this money to work in better ways. Like maybe saving more or using to help with the sky high gas and food prices.
On the topic of inflation, this debt forgiveness could certainly exacerbate the price increases we have already seen. As you can see, the people who will receive debt forgiveness are likely to turn around and inject this money straight back into the economy. This will stimulate economic activity, thus raising prices, having basically the same effect as a government fiscal package.
Furthermore, we have dealt with the price of college increasing at a break-neck pace over the past half-century. Over the past 40 years, the cost of college tuition has increased an astounding 169 percent. This far outpaces inflation and is heavily influence by the continued subsidization of college education through federal financial aid. This debt forgiveness will likely lead to colleges continuing to raise prices as they see the government will continue to subsidize it, increasing demand.
However, a federal judge just blocked Biden’s student loan forgiveness program declaring it illegal. So, we’ll see where it goes.
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