Heavy Lifting - thoughts and web finds by an economist
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Thursday, August 13, 2009
From the Baltimore Sun:
Would forgiving student loan be good for the economy?
So, those who went through school without any debt - myself included - get screwed? How about a refund on my tuition and fees - I think I have the receipts still.
I think the story is a "fake" in the sense that the story does not identify by name a single person or group in pursuit of such a policy. The story does go to lengths to interview a skeptic of the "proposal," but the straw man of the agitators is never fleshed out.
Not only that. The quote suggests that theft is stimulating to the economy. I mean, sure, if students didn't have to pay back their loans, they would spend more. But what would happen to the institutions who gave those loans and the people who work for them? I suppose the government could pay them off, but then the cost would simply be spread to the tax-payers who would then consume less as a result. Perhaps the hope is that the college student has a larger MPC than the tax-payer, and thus the net-result will be positive for consumption. In that case, more goods will be consumed than will be produced, and this imbalance will have to correct at some future date.Post a Comment
I also have never filled out a student loan application.
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