these folks disagree with you and they seem to have a pretty good handle on the topic. It's never 1 thing, it's the cumulative effect of all the things.
"However, at the same time, this is also likely to be inflationary. Expectation of additional debt forgiveness programs evokes a moral hazard incentive for college…
these folks disagree with you and they seem to have a pretty good handle on the topic. It's never 1 thing, it's the cumulative effect of all the things.
"However, at the same time, this is also likely to be inflationary. Expectation of additional debt forgiveness programs evokes a moral hazard incentive for college students to take out more loans and for universities to increase tuition rates.1 To the extent that inflation is inherently persistent, any initial price level increase would also lead to sustained inflation over the near future. The Committee for a Responsible Federal Budget estimates that the Fed will need to raise rates by an additional 50 to 75 basis points to counteract the Biden debt cancellation proposal."
If the basis adjustment occurs, what is the impact on the economy and inflation? What is the impact on the cost of college and that increase has what impact on the economy?
Just because it's a small % of the overall bucket doesn't make it good. It still in an unnecessary program that impacts the economy and has ripple effects. 40% of the student debt is for Grad school, something that the Fed govt has no business being involved with. Those folks should deal with the consequences of their decisions and not put that burden to the American taxpayer.
Your first link (from CFRB) said that student loan reduction would raise inflation by 0.15%-0.20%, if Biden got his full 500 billion plan, which he did not. So he got less than a third of that, perhaps you can say that it would have had a 0.05% inflationary effect.
Meanwhile, actual inflation peaked at 9%. 0.05% is a tiny fraction of that. That's because you're ignoring much larger sources of spending (primarily fiscal stimulus and spending during the pandemic).
You could also play the same game with literally any federal spending and with any tax cut, and call that inflationary. Trump added 8 trillion to the national debt:
Any line item of his excess spending and unfunded tax cuts are also inflationary. He's not planning to run a balanced budget. And he's proposing tariffs on just about everything, which will raise prices on just about everything.
The fact that you decided to hone in on a tiny fraction of government spending likely says more about you, and what you are resentful of, than it does on any rational analysis of government spending and fiscal policy.
Are you angry that you paid for college and you think other people are going to get something for free? Did you not go to college, and look down on people who did? If so, just say that stuff makes you angry, don't give some bogus argument that a small amount of student loan relief has much effect relative to massive amounts of overspending.
But you are ignoring the fact that the courts said he can't do it. Every time he turns around, he's increasing the budget and putting more groups into this plan. That's why I'm not mentioning anything else, those weren't deemed to be illegal or outside the scope of Fed Govt! If you feel i'm too narrowly focused on this, you are too broad!
Yes I am resentful that my tax dollars and plenty of others, are paying for the poor choices of others. This lesson is not taught in my household but now and entire new generation (see 2008 housing crisis) is learning they won't be held personally responsible and their choices might have consequences. There are people in this country that truly need support, and these programs do nothing for them. It's vote bribe and that's it.
My kid is in college today, she's receive nothing in relief, she's paying full price and meanwhile my taxes are paying for others that have no right to this money - as decided by the highest court in the land!
Why talk about any other program, if we can't agree that this program is a waste of tax dollars, illegal, and unnecessary at the federal level? Once you agree that this stupid, then we can talk about other spending.
Here's a perfect one to start with. Yeah, I know it's small, but the best way to start making a dent is to kill off all this stupid BS that the Fed Govt has no business being involved in!
If the courts say that he can't do it, then it's not happening and it's not inflationary.
The government gives handouts to many people, ranging from trillion dollar bank bailouts (under Bush) to trillion dollar tax cuts for billionaires (under Trump). With deficit spending, all of those are inflationary.
You can choose to ignore those things and only get angry about some kids getting help with college costs, but I think that's narrowly focused and shows a poor quantitative understanding of the federal budget.
And I thought vote bribe was Elon giving voters $100 each.
Why does everyone bring up Trump in response to an issue? I'm talking about student loan debt. It doesn't matter what anyone else did, stick to that issue and that issue alone. I assume you feel you are having a discussion with a Trump supporter and that's why so many comments here keep going back to Trump. You know what they say about you when you assume? I'm here to discuss Harris and the current administrations policies. Couldn't care less about what trump did or will do. Sticking to one focus....
The issue we were trying to stick to was what caused inflation over the last few years. You are incorrect to pin that on Biden's student loan policies.
Feel free to be a one issue voter based on student loans, just be honest and say that's you're doing, don't try to pretend that student loan debt repayment is a significant cause of inflation.
I feel like we are probably in agreement more than disagreement but this is not a valid format to have that detailed of a conversation.
It's false to state I'm pinning inflation on student loan forgiveness
It's true to state that loan forgiveness has a negative impact in inflation (not literally of course)
It's false to state I ignore all the other govt spending that leads to inflation.
It's true to state that I prefer to stop most of these programs and feel quite strongly that NEITHER candidate will solve this.
Both the D's and R's are driving us further into debt and completely unwilling to touch any govt entitlement programs that are the top spending categories.
This article is about Kamala. I don't want to talk about anyone other than Kamala and her administrations policies on this thread.
Here's what I have learned from your argument and how you run your household budget:
you: Let's go out to dinner tonight
partner: I thought we were in debt on the cc this month?
you: That's ok, this dinner is only 1% of our budget
partner: let's go, i'm starving
you: ok, then let's go out 2x a week next month since this is just a small percentage of our budget it will have zero impact given how much we are spending!
https://www.richmondfed.org/research/national_economy/macro_minute/2022/mm_10_11_22
these folks disagree with you and they seem to have a pretty good handle on the topic. It's never 1 thing, it's the cumulative effect of all the things.
"However, at the same time, this is also likely to be inflationary. Expectation of additional debt forgiveness programs evokes a moral hazard incentive for college students to take out more loans and for universities to increase tuition rates.1 To the extent that inflation is inherently persistent, any initial price level increase would also lead to sustained inflation over the near future. The Committee for a Responsible Federal Budget estimates that the Fed will need to raise rates by an additional 50 to 75 basis points to counteract the Biden debt cancellation proposal."
If the basis adjustment occurs, what is the impact on the economy and inflation? What is the impact on the cost of college and that increase has what impact on the economy?
Just because it's a small % of the overall bucket doesn't make it good. It still in an unnecessary program that impacts the economy and has ripple effects. 40% of the student debt is for Grad school, something that the Fed govt has no business being involved with. Those folks should deal with the consequences of their decisions and not put that burden to the American taxpayer.
Your first link (from CFRB) said that student loan reduction would raise inflation by 0.15%-0.20%, if Biden got his full 500 billion plan, which he did not. So he got less than a third of that, perhaps you can say that it would have had a 0.05% inflationary effect.
Meanwhile, actual inflation peaked at 9%. 0.05% is a tiny fraction of that. That's because you're ignoring much larger sources of spending (primarily fiscal stimulus and spending during the pandemic).
You could also play the same game with literally any federal spending and with any tax cut, and call that inflationary. Trump added 8 trillion to the national debt:
https://www.crfb.org/blogs/how-much-did-president-trump-add-debt
Any line item of his excess spending and unfunded tax cuts are also inflationary. He's not planning to run a balanced budget. And he's proposing tariffs on just about everything, which will raise prices on just about everything.
The fact that you decided to hone in on a tiny fraction of government spending likely says more about you, and what you are resentful of, than it does on any rational analysis of government spending and fiscal policy.
Are you angry that you paid for college and you think other people are going to get something for free? Did you not go to college, and look down on people who did? If so, just say that stuff makes you angry, don't give some bogus argument that a small amount of student loan relief has much effect relative to massive amounts of overspending.
But you are ignoring the fact that the courts said he can't do it. Every time he turns around, he's increasing the budget and putting more groups into this plan. That's why I'm not mentioning anything else, those weren't deemed to be illegal or outside the scope of Fed Govt! If you feel i'm too narrowly focused on this, you are too broad!
Yes I am resentful that my tax dollars and plenty of others, are paying for the poor choices of others. This lesson is not taught in my household but now and entire new generation (see 2008 housing crisis) is learning they won't be held personally responsible and their choices might have consequences. There are people in this country that truly need support, and these programs do nothing for them. It's vote bribe and that's it.
My kid is in college today, she's receive nothing in relief, she's paying full price and meanwhile my taxes are paying for others that have no right to this money - as decided by the highest court in the land!
Why talk about any other program, if we can't agree that this program is a waste of tax dollars, illegal, and unnecessary at the federal level? Once you agree that this stupid, then we can talk about other spending.
Here's a perfect one to start with. Yeah, I know it's small, but the best way to start making a dent is to kill off all this stupid BS that the Fed Govt has no business being involved in!
https://www.politifact.com/factchecks/2012/feb/20/mark-neumann/uncle-sam-spends-six-figures-study-coked-birds-cop/
If the courts say that he can't do it, then it's not happening and it's not inflationary.
The government gives handouts to many people, ranging from trillion dollar bank bailouts (under Bush) to trillion dollar tax cuts for billionaires (under Trump). With deficit spending, all of those are inflationary.
You can choose to ignore those things and only get angry about some kids getting help with college costs, but I think that's narrowly focused and shows a poor quantitative understanding of the federal budget.
And I thought vote bribe was Elon giving voters $100 each.
So in your world, stealing from taxpayers is the same as a Rich dude using his own money to create a lottery for people? How droll!
Why does everyone bring up Trump in response to an issue? I'm talking about student loan debt. It doesn't matter what anyone else did, stick to that issue and that issue alone. I assume you feel you are having a discussion with a Trump supporter and that's why so many comments here keep going back to Trump. You know what they say about you when you assume? I'm here to discuss Harris and the current administrations policies. Couldn't care less about what trump did or will do. Sticking to one focus....
The issue we were trying to stick to was what caused inflation over the last few years. You are incorrect to pin that on Biden's student loan policies.
Feel free to be a one issue voter based on student loans, just be honest and say that's you're doing, don't try to pretend that student loan debt repayment is a significant cause of inflation.
I feel like we are probably in agreement more than disagreement but this is not a valid format to have that detailed of a conversation.
It's false to state I'm pinning inflation on student loan forgiveness
It's true to state that loan forgiveness has a negative impact in inflation (not literally of course)
It's false to state I ignore all the other govt spending that leads to inflation.
It's true to state that I prefer to stop most of these programs and feel quite strongly that NEITHER candidate will solve this.
Both the D's and R's are driving us further into debt and completely unwilling to touch any govt entitlement programs that are the top spending categories.
This article is about Kamala. I don't want to talk about anyone other than Kamala and her administrations policies on this thread.
Here's what I have learned from your argument and how you run your household budget:
you: Let's go out to dinner tonight
partner: I thought we were in debt on the cc this month?
you: That's ok, this dinner is only 1% of our budget
partner: let's go, i'm starving
you: ok, then let's go out 2x a week next month since this is just a small percentage of our budget it will have zero impact given how much we are spending!