September 28, 2022

Biden’s Raw Political Move Advantages the Ruling Class

Using a declaration of a fake turmoil and twisting an imprecise law, President Joe Biden has invoked a massive prosperity transfer that benefits one of the most privileged people in our culture

When I interviewed for a training job at private college in Alabama more than 20 years ago, the recently elected governor had won partly on a platform in which the condition would install a lottery system that would give students the $3, 000 grant designed for college.

As the provost and I discussed the prospects of the new program, he smiled and said, “ Hopefully this lottery passes. Then we can raise tuition simply by $3, 000. ”

(The Alabama legislature, despite being controlled during the time by members of the governor’s party, failed to pass and implement the lottery. )

In the aftermath of President Joe Biden’s announcement that the government can forgive up to $20, 000 of student loan debt pertaining to qualifying borrowers, the reactions are following the political ideology of the commentators. For example ,   columnist Tressie McMillan Cottom of the  New York Times   declared it a “ win, ” even though she then demanded even more loan forgiveness.

Betsy DeVos, who was secretary of education below Donald Trump, took   the opposite position, proclaiming the loan forgiveness to become “ illegal. ” Responses elsewhere ranged from  comparing Biden’s loan forgiveness program to Jesus Christ   dying for that sins of the world and the loan forgiveness during the year associated with jubilee outlined in the Hebrew scriptures to the entire plan being  little more than the usual wealth   exchange to  those fortunate to go to college from  those who did not have that privilege.

College Financial loans Have Helped Drive Upward Higher Education Costs

While government officials are implying this is a one-time thing, we know that the politics system will not put this to rest. After all, the forgiveness is being applied to student loans taken out  during the past , yet college students always take out  new   loans for the coming academic year— and beyond. In fact , Biden’s mortgage forgiveness is going to have the same effect that my job interviewer hoped would be the case when Alabama implemented a state lottery: higher prices for a college education.

That will higher education costs have increased is a given. As  Forbes   explains :

In 1980, the price to attend a four-year university full-time was $10, 231 annually— including tuition, charges, room and board, and adjusted for inflation— based on the National Center for Schooling Statistics. By 2019– 20, the total price increased in order to $28, 775. That’s a 180% increase.

Why tuition and costs have exploded is no mystery. On the supply side, college administrations have grown alongside government mandates tied to identity politics. This development has had two fold effects. The first is to increase overall college costs— even though organizations have little to do with academic achievement. The second has been to increase the power and influence of the identity studies faculty, that is having a devastating impact on higher education as a whole.

However , nonessential to a university education, administrative growth may not be possible without the government’s education loan programs, that are to increased costs what gasoline is to spreading a fireplace. When the Barack Obama administration this year completely nationalized the education loan program, student loans outstanding stood at about $800 billion. Twelve years later, the amount has more than doubled to almost $1. 8  trillion . (One doubts that the  value   of a college education and learning has more than doubled during the same time. )

Student Loans1

To put it another way, student borrowers have financed the slow destruction of higher education, all the while placing enormous financial obligations upon themselves. In the meantime, college administrators and faculty have seen their financial fortunes increase. When one adds national politics into the mix, things become even more interesting.

Bending the Law in order to Reward Democratic Voters

There is no question that the student loan program mainly benefits people who vote Democratic. First, college  administrators and faculty overwhelmingly   lean Democratic, plus college graduates are one of the most important  Democratic Celebration constituencies , as well as the main beneficiaries of Biden’s executive order.

Moreover, one doubts that this could be the end of Biden’s mortgage forgiveness initiatives. Students that will now are borrowing cash to finance their university educations are tomorrow’s Democratic voters, and one doubts that will their party will drop them, especially when it can transfer their indebtedness (at minimum in part) to His party taxpayers.

Perhaps one tweet says everything,   this through Harvard Law School teacher Laurence Tribe , who seem to declared: “ Good news just for thousands of my former college students. I’m grateful on their behalf, Mister. President. ”

It is not an exaggeration to express that Harvard Law graduates are among the elite from the elites in what one may call our “ judgment class, ” and one doubts seriously that a president whom already has demonstrated little restraint when it comes to fiscal issues suddenly will channel their inner Scrooge. Moreover, by employing what only can be called a twisted interpretation of an obscure law to mention loan forgiveness, Biden currently has channeled another chief executive known for his reckless procedures, Franklin D. Roosevelt. David  French writes :

the particular alleged legal basis regarding Biden’s $500 billion plan is found in  the novel reading of the post 9/11 HEROES Act , which does grant the particular secretary of education broad authority to “ waive or modify any lawful or regulatory provision relevant to the student financial assistance programs under title IV of the [Higher Education Act] … as the Secretary deems necessary in connection with a war or other military operation or national emergency. ”

Yet even if one accepts the particular dubious proposition that this vocabulary includes the ability to waive transaction entirely, the Biden management would still have to show that the  covid   emergency   justifies the action.

Like Roosevelt, who used the  1917 Trading with the Enemy Act   to justify their gold seizure in 1933, Biden has used a little-known law to exchange wealth from those will certainly little political influence to the people who make the rules (but do not have obey them). It that the language of the law has nothing to do with the president’s activities. Instead, it is the application of uncooked political power.

Conclusion

This is only the beginning of Biden’s financial shenanigans to benefit his party’s constituencies. Economist  Alex Tabarrok has laid out ways   that each higher education officials and students can further game Biden’s scheme. Regarding the real prosperity transfers involved,   French writes :

one of the essential flaws of the Biden program is that it doesn’t just assist those who need help. Instead, this imposes costs on people who need help to provide a substantial advantage to thousands upon thousands of college and graduate college graduates who don’t.

Understand that Biden invoked  emergency   powers to deal with something which under no circumstances counts as a turmoil to transfer wealth from people with little political impact to those who are in or even moving into the corridors of power. As the federal government continues to expand its reach— thus, making a college degree an even more vital gateway to better-paying occupations— the politically powerful will find more ways to dump their own financial burdens upon those that can least afford all of them.

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