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> There is no "cancelling" debt. There's only forcing other people to pay. Not really, given that in the US, the central bank could just take over those public
by thatfrenchguy 5y ago
> There is no "cancelling" debt. There's only forcing other people to pay.
Not really, given that in the US, the central bank could just take over those public loans, not collect on them, and likely not much would happen. They’ve already proven that during Covid with corporate bonds.
The real issue with cancelling student loans is that it doesn’t fix the tuition cost for the next generation. We need a 20-year tuition freeze.
- gruez 5y ago>Not really, given that in the US, the central bank could just take over those public loans, not collect on them, and likely not much would happen. Isn't that just helicopter money with extra steps?
- thatfrenchguy 5y agoThis is not really helicopter money in that sense, you’re not giving out unallocated free money, you’re just doing cash flow relief. I think there is a good argument to make that cancelling that debt, and fixing the US college system, would likely result in more innovation: folks who come from (lower) middle class backgrounds could finally take more risk and try new jobs / start startups that they can’t today because of the money they need to put into debt service.
- gruez 5y ago> This is not really helicopter money in that sense, you’re not giving out unallocated free money, you’re just doing cash flow relief. That's if you're only looking at the repayment stage of the loan in isolation. The way loans work is that: 1. you get money upfront in exchange for nothing 2. you pay it back If you take out the second step ("cash flow relief"), then all you have left is "you get money upfront in exchange for nothing" which is the definition of helicopter money.