Student Loan Forgiveness: A Boost For The Middle And Upper Classes Which Costs $300BN• Zero Hedge
While it is all too obvious that the Biden admin is rushing to buy as many votes as it can with its latest $10,000 student debt loan forgiveness sceme just two months left until the midterms...
Unlike draining the SPR- everyone consumes energy- the student loan relief as a vote buying tool is a waste bc the Dems already have 99% of the double-Masters/cat owner demo.— Barbarian Capital (@BarbarianCap) August 23, 2022
... and thus the move makes sense, if only from a political point of view, one wonders if the White House has evaluated every aspect of this latest mini stimulus meant to benefit the middle and upper classes and push the US much deeper in debt in exchange for a fractional GDP boost? Here's why:
Back in 2021 when Biden's plan to forgive anywhere between $10K and $50K in student debt first emerged, Goldman quickly calculated that the proposed debt forgiveness would not benefit the lower class - i.e., those who at least in theory benefit the most from Democrat policies - but the middle and upper classes.