We are talking about paying off an astromonical debt in a scenario where real incomes are falling.
I know we blame this one and that one - but realistically - we are only screwing ourselves w this mess since these people will be debt slaves their entire lives.
“We are talking about paying off an astromonical debt in a scenario where real incomes are falling.
I know we blame this one and that one - but realistically - we are only screwing ourselves w this mess since these people will be debt slaves their entire lives.”
We will be screwing ourselves if we forgive student loans. Just how we screwed ourselves with T.A.R.P.
Now I say screw the rules (all of them). This is about the survival of my kids, my grandkids and the nect generations. We are devolving into just two classes...those with just enough most of the time and those with more than enough all the time. I am using all my energies to put myself in the latter group and advising my kids to focus on doing the same.
Screw the left. Screw the middle. Screw the right. They are all useless to me now. We will now see Darwin's theory writ large in society.
Now I say screw the rules (all of them). This is about the survival of my kids, my grandkids and the next generations. We are devolving into just two classes...those with just enough most of the time and those with more than enough all the time. I am using all my energies to put myself in the latter group and advising my kids to focus on doing the same.
Screw the left. Screw the middle. Screw the right. They are all useless to me now. We will now see Darwin's theory writ large in society.
I know what you are saying - I really do. But one of the primary principles of Capitalism is that in order for there to be profit, there has to be risk. Sometimes you win, and sometimes you lose. Remove the risk, remove the profit.
I do think that debt owed to the government of any kind should be subject to bankruptcy law, in the same way as any other entity is subject to bankruptcy law. I agree with you in that, as otherwise there is an inequity.
But what happens when the rubber hits the road (wrt student loans) is that the risk is removed. There is no penalty accrued. And since there is no penalty, the market (college) goes oblong and sustains what is otherwise unsustainable...
Because the end user has no risk, there is no real research into making a very good decision... A touchy-feeley approach can be applied instead of hard numbers... Easy-bake degrees are chosen rather than the hard way that actually will pay with a desirable employee for an industry that is actually capable of hiring him and sustaining him life-long...
It is already bad enough because of grants. Allowing bankruptcy will only make it worse. There is a reason why colleges continue to offer education options that lead to nowhere... In fact MOST lead to nowhere... And it is directly attributable to the fact that the college gets paid for a product that is not viable.
If the way is made hard, the risk is great, and the reward fantastic.
When my business went sideways, I contemplated bankruptcy - But I tended to pay vendors before government, so most of my debt load was to the government, and guess what? That debt was likewise not able to be discharged through bankruptcy. It took me four years of very hard work and starvation rations to climb over that hump. But I am glad I did it, and I am a better man because of it.
Why should educational loan applicants have it better than me, when I am the one actually making the jobs and taking risk?