An Immoral Wealth Transfer – Kiowa County Signal
By Jason Smith
U.S. Congressman Missouri District 8
It’s getting harder and harder to watch the news or leaf through a newspaper without being indignant at all the madness coming out of Washington. Thanks to the disastrous leadership of the left, our border is in chaos, the cost of living is the highest it’s been in 40 years, and energy costs are so high that nearly one in six Americans are behind their utility bills.
And with November fast approaching, President Joe Biden and Democrats in Washington are racing with their desperate demands to reward their supporters with lavish perks. There’s no better example of this than Biden’s recent executive order that will forgive up to $20,000 in student loan debt for households earning up to $250,000 — an executive order that Biden and the president of the House Nancy Pelosi (California) declared themselves unconstitutional as recently as last year. With the stroke of a pen, Biden is pumping $330 billion in taxpayer dollars into wealthy doctors and lawyers to pay off their student loans. In fact, 56% of all student loan debt is owed by the 14.3% of people with advanced university degrees. These are the same people with much higher lifetime incomes than the average American.
Not so long ago, pressure from the left to write off student loan debt was deemed too extreme for many Washington Democrats, including Biden, who said “I don’t think I have the power to do that. by signing the pen” at a CNN town hall in 2021. Pelosi, speaking at a press conference last year, said only Congress — not the president — has the power to overturn student loan debt.
No matter how the Democrats in Washington try to spin it, this is an immoral wealth transfer. I’ve been saying this since the moment I saw Biden’s bailout bill last year – this president is determined to reward his friends, allies and political donors with as much funding as he thinks the public will let get away. Climate activists who prioritize electric vehicles and tree equity over well-paying jobs? 400 billion dollars. Woke college activists who want more freedom to prioritize protest over a paycheck? $330 billion. Liberal big city mayors who even now want to shut down our communities? Hundreds of billions of dollars in funding that comes with no strings attached for them to spend on priorities like benefits and stimulus checks for illegal immigrants.
Under Biden’s plan, 87% of adults without student loans will be forced to subsidize the 13% of adults who chose to take out loans. Why should someone who chose not to take out student loans foot the bill for those who did? Worse, why should someone who worked hard to pay off their student loans see someone else rewarded with a free, no-strings-attached Washington Paper?
As the son of working class parents, I was taught the importance of personal responsibility. I learned the hard way that actions have consequences. When I was in high school, I thought long and hard about my future and made the decision to pursue a college education, knowing that I would need to take out student loans to cover tuition, textbooks, and living expenses. I went to class during the day, worked at night, and saved every penny I could to make sure I could repay my loan. To this day, I continue to make regular payments on the loan debt I voluntarily incurred.
The left claimed that canceling student debt would make college more accessible to working-class Americans. In reality, this will only increase tuition fees. Knowing that the next Liberal Democrat president will forgive student loan debt, colleges have less incentive to cut tuition because they know American taxpayers will foot the bill when students default on their loans.
On top of that, canceling student loan debt will do nothing to discourage individuals from going into debt just so they can go to college to major in areas like performing arts – one of lowest-paying university majors. We should encourage more people to consider apprenticeships or trade schools, which prepare workers for in-demand, well-paying jobs.
What is the greatest threat facing American families today? The highest cost of living in 40 years, fueled by spending by Washington Democrats. Washington Democrats control the White House, House and Senate. Their actions are adding fuel to the fire of inflation and will make life harder, not easier, for hard-working American families. You do not believe me ? Larry Summers — an Obama economic adviser, Clinton Treasury Secretary, and current Harvard president who correctly predicted that Biden’s US bailout would trigger the current cost-of-living crisis — recently voiced his opposition to the plan , claiming it would be “inflationary” and better spent going to people who didn’t have the opportunity to go to college. Even liberal economists can see that this action is a recipe for disaster, and I will continue to do whatever I can to fight the left’s relentless attacks on the American working class.