As a US citizen, I see the US debt bomb ending it two different ways
1. Sanders/Warren get elected and somehow forgive 1.5 trillion in student loans and make education free going forward.
2. 2008 level crisis
with (2) is the more probable
I think universities tuition is way too expensive in our country, but I'm against (1) currently because I don't think retroactively forgiving debt is a good policy. The students took those loans out, signed the docs, and knew (or should have known) what they were getting themselves into. I think forgiving all of the debt would be obviously ridiculously expensive (1.5 trillion is a lot of money) but also possibly creates moral hazard.
I would be more supportive of (1) if the government took more of a "Canadian pharma industry" approach and just said "this is how much we will pay for this citizen to go to Harvard, take it or leave it". I have no faith that any of the current presidential candidates will be able to negotiate and pass that type of law, so I currently cant support (1).
Is my line of thinking wrong here? I think education should be more affordable but have no faith we have leaders that can get us there.
1. Sanders/Warren get elected and somehow forgive 1.5 trillion in student loans and make education free going forward.
2. 2008 level crisis
with (2) is the more probable
I think universities tuition is way too expensive in our country, but I'm against (1) currently because I don't think retroactively forgiving debt is a good policy. The students took those loans out, signed the docs, and knew (or should have known) what they were getting themselves into. I think forgiving all of the debt would be obviously ridiculously expensive (1.5 trillion is a lot of money) but also possibly creates moral hazard.
I would be more supportive of (1) if the government took more of a "Canadian pharma industry" approach and just said "this is how much we will pay for this citizen to go to Harvard, take it or leave it". I have no faith that any of the current presidential candidates will be able to negotiate and pass that type of law, so I currently cant support (1).
Is my line of thinking wrong here? I think education should be more affordable but have no faith we have leaders that can get us there.