It is a truth universally acknowledged that if you rob Peter to pay Paul, you can count on Paul’s vote. That political axiom is the crux of Joe Biden’s decision to forgive vast quantities of student loan debt.
He needs Peter’s and Patricia’s votes, and he is bribing them with taxpayer money. Taxpayers know it is not a costless gesture. Their backlash is likely to overwhelm any potential gains.
The problems begin with the program’s cost and inflationary impact. Spending another $300 to $900 billion, the estimated cost, raises consumer demand without increasing supply. Since the program is not funded by tax increases, it will be paid for by printing money. The inflationary consequences are predictable.
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