Biden Helps Wealthy Elite Education Get Wealthier, More Privileged


Biden canceled, by executive order,  the debt of many students… with a (past) yearly income of no more than $250,000 (4 times the US median family income!) 

The move may cost simple minded US taxpayers more than $300 billion in money they effectively lent out that will never be repaid. For some obscure reason, this is viewed as progressive by many “Democrats“. Reaction of the perplexed New York Times:

“But critics — including some members of Mr. Biden’s own party — said the move was deeply unfair.”

Indeed, borrowers will be assessed based on the income they reported in 2021 or 2020. This means that individuals who could be making millions from their degrees will not have to reimburse their debts. NYT:

“Jason Furman, a Harvard economist and former top economist for President Barack Obama, said the plan “would unnecessarily provide tens of thousands of dollars to many high-income households in a way that goes well beyond even what he promised in the heat of a Democratic primary when the problem facing the country was low inflation — not high inflation.

The Republican National Committee released a statement slamming the program as “Biden’s bailout for the wealthy.”

Senator Ben Sasse, Republican of Nebraska, said the plan “forces blue-collar workers to subsidize white-collar graduate students. Instead of demanding accountability from an underperforming higher-education sector that pushes so many young Americans into massive debt, the administration’s unilateral plan baptizes a broken system.”

What is going on here? The usual: Obama-like figures are promoted, so they can lead where the establishment wants to go. Individuals who owe everything to the system and are put in commanding positions: the New York, in the same article, provides unwittingly a striking example:

“I was standing in my dorm room when I heard this, and I just let out a scream,” said Marlene Ramirez, 25, who relied on Pell grants and other aid to pay for her undergraduate studies.

Ms. Ramirez, the first in her family to go to college, used the grants to cover two years of study at a community college, then transferred to the University of California, Los Angeles. After graduating in 2020 with a bachelor’s degree in anthropology, she still has $25,000 in federal loans that she had used to cover her housing and living expenses.

“This will almost wipe that out,” said Ms. Ramirez, who is finishing a master’s degree at the London School of Economics. “I’m shaking right now. This is life changing.”

The screaming, no nerves, no decency, so self-examination Ramirez is the sort of enthusiatic simple minded underlings who act as the best soldiers to the establishment. The LSE is one of the top MBA schools in the world. People coming out of that seat in the C suite right away. Next year, Ramirez, grateful to the plutocracy, will be earning millions and ordering lumberjacks around. It is of course easy to find out that Ramirez will earn an MBA from the LSE. She deserves no loan forgiveness, and especially not as a future grandmaster of the universe, firing all the little people, and hopping around the world in private jets, Obama style.

Elections are coming. Biden, by striking what endoctrinated-by-the-wealthy pseudo-progressives view as… “progressive”, activates the enthusiasm of his excited but deluded electorate. This has no cost… Because Biden’s executive order will be shot down by the courts, and Biden knows this…

The Democratic Party excels at running the world’s plutocracy, with an international oligarchy always grabbing more power… while claiming to be in the opposition, and for the little guy. This has been going on for a century. For a while, the likes of Mussolini, Hitler, Franco, Stalin, even Hirohito, profited. But the same class always grew in power, while, and by, feeding the delusion that they are doing the opposite of what they are truly doing, Relatively speaking, Machiavel sounds like a toddler.

Patrice Ayme

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Tech points: a) Penn Wharton budget modelers report that the cost of Biden’s debt cancellation could be as much as a tillion dollars…

b) President Biden extended a Trump-era pause on payments… (yes, Trump again! Much of Biden is Trump… under an antagonistic sugar pill cover… )

President Biden’s executive order means the federal student loan balances of millions of people could fall by as much as $20,000. Here are answers to some common questions about how it will work:

Who qualifies for loan cancellation? Individuals who are single and earn $125,000 or less will qualify for the $10,000 in debt cancellation. If you’re married and file your taxes jointly or are a head of household, you qualify if your income is $250,000 or below. If you received a Pell Grant and meet these income requirements, you could qualify for an extra $10,000 in debt cancellation.

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One vicious effect is ensuring the march forward of elite hyper expensive education which further feeds the inequality they depend upon. Even the NYT again perceives the problem:

Many economists warned the move could have damaging consequences for students and taxpayers in the future, by encouraging colleges and universities to raise prices with the federal government footing the bill.

Mr. Biden’s plan, including its limits on future loan repayment by borrowers, “would be a massive subsidy to the exact sector that created this mess with ever-rising tuition and fees,” said Melissa Kearney, a University of Maryland economist who directs the Aspen Economic Strategy Group. “We should be taking steps to rein in higher-ed pricing, not further subsidize higher-ed tuition and living expenses.”

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One Response to “Biden Helps Wealthy Elite Education Get Wealthier, More Privileged”

  1. Gmax Says:

    Same same old. Democrats are up to their old tricks. They always work. Fascism presented as progress.

    Like

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