Comments by "Mr. James" (@MrJames1471) on "Top 10 States Dragging the U.S. Down With Poverty" video.
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@iabdgogogo1234letsgo That is a concern regarding student loan "forgiveness", regarding the use of taxpayer funding to pay off the loans willingly taken out by individual persons. However, perhaps look at the situation from a wider angle.
Suppose, that these loans are forgiven. That translates to hundreds of billions of dollars that would've of otherwise been used to pay of debt, going to something else. Which, especially in this day in age, may result in an increase in spending. This sounds good on its face, until you consider that an increase in spending is exactly what we're trying to avoid right now. The Federal Reserve has and seems inclined to continue hiking interest rates in order to cut down on consumer spending, as one of the methods to tame inflation. The conventical thinking being that consumers will avoid buying and borrowing if they have to pay a higher interest rate on these items. Progress had been made thus far, but forgiving student loans stands a fair chance of obstructing this very aim of getting our economic situation under control.
Furthermore, forgiving student loans does not address the root cause. As aforementioned, much of these loans are due to predatory lending practices that were facilitated by our own government. Now, we are to suddenly look to this same institution to fix this problem? Curious, is it not? Nevertheless, all forgiving these loans would do is help lower the burden for the current recipients. It does nothing to actually reform the system, so that we don't end up back at this point in the future. In effect, it is a billion dollar kicking of the can down the road.
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