Let’s project what would happen if all student loans were “forgiven”.
If the government writes off people’s college bills, why shouldn’t the government write off people’s home bills? Or car bills? Why ONLY student loans? Isn’t it discrimination to write off billions of dollars in debt for 20-somethings, as a group — while ignoring the wants, wishes and needs of 40-somethings, and 50-somethings? Where does it end? Or are there no limits?
Let’s look at it psychologically, too — from the point-of-view of the forgiven students. We will have millions of 20-something and 30-something people who will wake up one day, debt-free. Thanks to Elizabeth Warren, Joe Biden or Pete Buttigieg, they will think, “I’m now debt-free. God bless President Buttigieg”.
But what then? What kind of message does this send to people who got their loans forgiven just because politicians assembled a coalition together powerful enough to do it? What will these politicians now demand of them? What will they next demand of these politicians? Free homes, free cars, free vacations, free everything? Today’s generation of young people isn’t exactly known for its strength and fortitude. Snowflakes would not have weathered the Great Depression or World War II. I think we all know that. I think even THEY know that, in between crying spells. So how will getting rid of their student loans somehow make them stronger and more equipped to deal with the real world?
If the government comes in and says, “I know you willingly took this debt on. But it’s too much. So I’m wiping it out for you”. What will this do to their independence, their sense of self-responsibility, their sense of long-range planning and purpose and their willingness to pay the price for great things?
Wiping out student loan debt through government fiat will undoubtedly harm or even destroy the economy. But what it will do to the 20-something and 30-something former students is far worse. It will destroy their character, their rationality, their integrity — to whatever extent those things have developed in this warped culture and whack-job public school system we have created.
And, one more thing: It’s not Joe Biden or Elizabeth Warren “forgiving” the debt. It’s the entity who made the loan. It’s the big banks. But the big banks won’t be footing the bill. The productive, hard-working taxpayer will. The rest will be through the national debt — which WILL come crashing down on everyone, at some point.
We live in the most insane times imaginable. But it’s only going to get worse if we establish the precedent of forgiving debts and loans people freely took on.
The biggest issue is not economic. It’s character. Forgiving student loan debt will destroy what’s left of it.
Follow Dr. Hurd on Facebook. Search under “Michael Hurd” (Rehoboth Beach DE). Get up-to-the-minute postings, recommended articles and links, and engage in back-and-forth discussion with Dr. Hurd on topics of interest. Also follow Dr. Hurd on Twitter at @MichaelJHurd1, and see drmichaelhurd on Instagram.