Loans For Thee, Repayments For Me

For John, BLUF:  Sometimes we make judgemental errors.  Whose job is it to help us correct (pay for) those mistakes?  Nothing to see here; just move along.

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Is Forgiving Billions in Student Debt a Political Loser for Democrats?

Here is the sub-headline:

It's getting increasingly difficult to see the upside in massive debt forgiveness -- and very easy to see how it could backfire

From Truth or Consequences, by Speechwriter Michael Cohen, 2 May 2022.

Here is the lede plus six:

For several months I’ve been putting off my look back at all the many things I’ve gotten wrong since I began Truth and Consequences last year. That day is still coming, but today I’m doing something similar — I’m going to highlight something that I preemptively got wrong! Ever since word leaked last week that President Biden is inching closer to forgiving tens of thousands of dollars in student loan debt, I’ve assumed that such a move is good policy and smart politics. I’ve written as much and made this argument on Friday’s Zoom Chat.

Yesterday, however, I was discussing the issue with a friend who sees things otherwise. He made an argument that I found impossible to rebut, “How does reliving student debt help my general contractor? Or my union plumber?”

It’s a great point, and it speaks to the significant political danger of student loan forgiveness. While once I saw the political upside in forgiving billions in college debt, I’m coming around to the position that it could actually add to the Democratic Party’s political woes.

The Facts on Student Loan Debt:

Here are a few facts to consider: When measured by income, the poorest one-fifth of Americans hold about 8 percent of all student debt in America. Conversely, the wealthiest one-fifth of American households have a third. In all, approximately 43 million Americans — or one in eight households — are still paying off their student loans.

That means that the overwhelming majority of Americans have no student debt and that most of the Americans who owe money are not poor or working-class but broadly fall into the middle class.

How does it add up to a winning political strategy to forgive billions of dollars in debt for that segment of the population?

I admire the ability to admit when one is off the beam.  Writer Cohen is such a person.

I think Mr Cohen is on the mark.  Are the Republicans smart enough to exploit this?

Hat tip to the InstaPundit.

Regards  —  Cliff