My wife and I spent about a decade getting out of our student loans. We lived frugally, avoided expensive vacations, and deferred retirement savings to make our payments. Two years ago, we downsized our home and used the proceeds to pay off our debts, including our still substantial student loans. If we had let that debt pass instead, we would be nearly $30,000 richer today. Canceling President Biden’s student debt would have changed our lives, but instead, we are missing out…because we acted responsibly.
On social media, the liberals are happily shaming anyone who isn’t genuinely enthusiastic about Biden’s decision. I argue that people who can’t get a well-paying job to pay their own debts because they never went to college are understandably bitter about having to pay relatively low-interest student debt as well. who can get those jobs. Clearly, conservative politicians and media personalities who received PPP loans and Trump-era tax breaks are hypocrites for refusing student loan forgiveness. However, liberals who constantly denounce the transfers of wealth from the poor to the rich are far too quick to change their tone when they are the recipients.
Those who receive loan forgiveness can now spend more on other goods, increasing demand and therefore prices. However low the resulting inflation may be, it will be borne primarily by people earning less than the recipients, making it a regressive transfer of wealth. It’s nowhere near as unfair as the GOP’s tax breaks for billionaires, but it’s far from fair.