Column: The President’s Latest Betrayal of the Working Class
(Mario Tama/Getty Images)
President Biden recently made a trip to the West Coast to raise campaign funds, but he didn’t stop there. He also decided to spend some of your hard-earned money.
On February 21, Biden made the announcement that he would be canceling $1.2 billion in federal student loans for 153,000 borrowers. This is in addition to the more than $130 billion in student debt that he has already forgiven. According to the Penn Wharton school, these efforts will cost a total of $475 billion over the next decade.
Now, let’s take a closer look at just how terrible this policy really is.
It’s not debt relief. It’s simply transferring the burden of debt from certain borrowers to the American taxpayer, who is already saddled with trillions of dollars in federal debt.
The cost of servicing this public debt is projected to soon exceed America’s defense budget. Talk about reckless spending.
It’s constitutionally dubious. The Supreme Court has already struck down Biden’s original debt transfer program, stating that he overstepped his authority. Yet, he continues to find ways to bypass Congress and the judiciary with his “Saving on a Valuable Education” (SAVE) Plan.
This plan is also vulnerable to legal challenges, as such far-reaching policies require congressional authorization. It’s only a matter of time before a Republican state attorney general takes action against the federal government.
It creates moral hazard. By forgiving student debt, Biden is incentivizing potential borrowers to take on more debt, knowing that they will be bailed out by the government. Colleges and universities also have no reason to control tuition costs, as they know the true customer is Uncle Sam.
This hazard extends beyond just the economic impact. Biden’s arbitrary exercise of power emboldens the far-left wing of the Democratic Party, who will push for the transfer of other forms of debt to the state.
Laws are meant to discourage bad behavior, but Biden’s executive action rewards it.
The plan smacks of desperation. Biden is facing a tough battle for re-election, trailing behind former President Trump in key swing states. His approval rating is also stuck in the low 40s, particularly among younger voters.
This student debt relief is a desperate attempt to appease a key constituency, following the old-school Democratic strategy of concentrating benefits to certain groups while spreading the costs among the general electorate.
Beneficiaries of this plan will receive an email with the president’s signature, just so they know who to thank.
However, Biden’s gambit may not pay off. Despite backing popular initiatives, his job approval remains low. Voters blame him for rising food prices and interest rates, and they feel his policies have not helped the middle class.
Biden’s student debt plan is more controversial than the bipartisan legislation he has signed into law. It affects a smaller number of voters and creates resentment among those who have already paid off their loans or did not attend college. It’s yet another blow to non-college voters who are struggling with high prices and job losses.
So why is there such a disconnect between Biden’s actions and voters’ attitudes? It’s because the electorate has already judged him as incapable of serving a second term. This puts Biden in the difficult position of trying to please his left-wing base while hoping that independent voters will turn against Trump and MAGA.
No wonder he’s desperate.
Why does canceling student debt promote a culture of entitlement and undermine personal responsibility?
Rising tuition costs, as they know the government will continue to bail out students. This creates a moral hazard where individuals are not held accountable for their financial decisions, and it perpetuates a cycle of debt for future generations.
It undermines personal responsibility. By canceling student debt, Biden is sending the message that individuals are not responsible for the choices they make. It promotes a culture of entitlement and discourages personal accountability. Hardworking individuals who have diligently paid off their student loans are now being punished for their responsible behavior.
It ignores the root causes of student debt. Instead of addressing the underlying issues that contribute to the rising cost of higher education, such as administrative bloat and excessive spending, Biden is simply throwing money at the problem. This approach fails to address the systemic issues that need to be tackled to make education more affordable in the long term.
It prioritizes certain borrowers over others. Not all borrowers will benefit from Biden’s debt cancelation plan. It creates an unfair system where some individuals receive preferential treatment based on their student loan status. This is not a fair or equitable solution for the working class.
In conclusion, President Biden’s latest decision to cancel billions of dollars in student debt is a betrayal of the working class. It transfers the burden of debt onto the American taxpayer, undermines personal responsibility, and fails to address the root causes of student debt. It is a short-sighted policy that prioritizes certain borrowers over others and ignores the long-term implications. The working class deserves better solutions that tackle the systemic issues and provide real relief for all individuals, not just a select few.
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