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Your private retirement savings may be nationalized and redistributed under public pressure. Students loan debt forgiveness was the canary in the coal mine. In

Your private retirement savings may be nationalized and redistributed under public pressure. Students loan debt forgiveness was the canary in the coal mine. Instead of addressing the ballooning costs of higher education (which incidentally is a failure), we chose to indulge the rapacious monster that is academic administration and petty careerism. Also, the US constitution has been amended.

gjsman-1000 4y ago
So can anything really, which is scary. In the 1930s, the government banned private ownership of all gold that wasn’t a small amount of jewelry and mandated anyone possessing it exchange it for dollars… with only an executive order. (Executive Order 6102) That was also a canary in the coal mine moment. Amazingly the ban lasted until 1974.
- HyperSane 4y ago
  Seems like it didn't actually affect much since the US economy grew by a huge degree during that time.
- jollyllama 4y ago
  Before factoring in inflation, people who defied the order would have roughly doubled their money during that time period.
lotsofpulp 4y ago
>Students loan debt forgiveness was the canary in the coal mine. Not really a canary when taxpayer funded bailouts have occurred numerous times over the existence of the US. It is just the way societies work, you just need to make sure your assets keep appreciating at at least the rate that the currency’s purchasing power is reduced.
HyperSane 4y ago
Student debt is a bubble created by making it non-dischargeable in bankruptcy.
- lotsofpulp 4y ago
  The bigger factor is the federal government giving out unlimited loans in the first place. Schools ask for $20k, government lends $20k. Schools ask for $30k, government lends $30k. $40k, $50k, $60k, $250k, why should the schools stop? Zero underwriting, zero incentives to not waste money.
- lzooz 4y ago
  If you make it dischargeable can't you just declare bankruptcy as soon as you leave college since you won't have a job or assets?
  - HyperSane 4y ago
    Yes, and that risk would greatly reduce the loans made and prevent colleges from increasing prices so fast. Allowing colleges to garnish a percent of your wages would make a lot more sense actually.
    - lzooz 4y ago
      >Allowing colleges to garnish a percent of your wages would make a lot more sense actually. Is there any legal mechanism to do something like this?
      - HyperSane 4y ago
        We will make it legal. Maybe if the student signs a contract allowing the University to do so.
  - filoleg 4y ago
    In the short-term, yes. However, that scenario you are describing is unlikely to last beyond those people who were given the loans before student loans became dischargeable. Lenders would simply become extremely picky when giving out student loans, in the scenario where student loans are dischargeable. Probably something along the lines of "oh, so your degree is not in CS/engineering/pre-med/<other-high-earning-potential-degree>? And you aren't taking the loan out to attend Stanford/UC/<random-Ivy-school>? And you don't have much in terms of collateral assets to be discharged in case of a bankruptcy either? Well, we cannot offer a loan, sorry". Which would essentially make student loans not an option for vast majority of students.
guntars 4y ago
You should just come out and say that you’re against subsidizing the wrong people. But maybe you’re a libertarian and think government should’t subsidize any of the thousand other things it does, like parents and farmers. I would have called myself a libertarian too some time ago, but now I see it as just youthful naivety.
- remarkEon 4y ago
  >You should just come out and say that you’re against subsidizing the wrong people. The "wrong people" that OP is against subsidizing is the fraudulent higher education business in the United States. Government should subsidize some things, where markets fail (markets are just a tool, after all), but in this case we're going to be giving these universities and institutions a green light to do whatever the hell they want with tuition costs. They'll raise them again, for no real reason, because why the hell wouldn't they? Uncle Sam will pay for it. Perhaps we should just nationalize the endowments instead.
Akronymus 4y ago
> Instead of addressing the ballooning costs of higher education (which incidentally is a failure) Isn't part of the ballooning costs that student loans are easy to get and backed by the government?

gjsman-1000 4y ago

So can anything really, which is scary. In the 1930s, the government banned private ownership of all gold that wasn’t a small amount of jewelry and mandated anyone possessing it exchange it for dollars… with only an executive order. (Executive Order 6102) That was also a canary in the coal mine moment. Amazingly the ban lasted until 1974.

HyperSane 4y ago
Seems like it didn't actually affect much since the US economy grew by a huge degree during that time.
jollyllama 4y ago
Before factoring in inflation, people who defied the order would have roughly doubled their money during that time period.

lotsofpulp 4y ago

>Students loan debt forgiveness was the canary in the coal mine. Not really a canary when taxpayer funded bailouts have occurred numerous times over the existence of the US. It is just the way societies work, you just need to make sure your assets keep appreciating at at least the rate that the currency’s purchasing power is reduced.

HyperSane 4y ago

Student debt is a bubble created by making it non-dischargeable in bankruptcy.

lotsofpulp 4y ago
The bigger factor is the federal government giving out unlimited loans in the first place. Schools ask for $20k, government lends $20k. Schools ask for $30k, government lends $30k. $40k, $50k, $60k, $250k, why should the schools stop? Zero underwriting, zero incentives to not waste money.
lzooz 4y ago
If you make it dischargeable can't you just declare bankruptcy as soon as you leave college since you won't have a job or assets?
- HyperSane 4y ago
  Yes, and that risk would greatly reduce the loans made and prevent colleges from increasing prices so fast. Allowing colleges to garnish a percent of your wages would make a lot more sense actually.
  - lzooz 4y ago
    >Allowing colleges to garnish a percent of your wages would make a lot more sense actually. Is there any legal mechanism to do something like this?
    - HyperSane 4y ago
      We will make it legal. Maybe if the student signs a contract allowing the University to do so.
- filoleg 4y ago
  In the short-term, yes. However, that scenario you are describing is unlikely to last beyond those people who were given the loans before student loans became dischargeable. Lenders would simply become extremely picky when giving out student loans, in the scenario where student loans are dischargeable. Probably something along the lines of "oh, so your degree is not in CS/engineering/pre-med/<other-high-earning-potential-degree>? And you aren't taking the loan out to attend Stanford/UC/<random-Ivy-school>? And you don't have much in terms of collateral assets to be discharged in case of a bankruptcy either? Well, we cannot offer a loan, sorry". Which would essentially make student loans not an option for vast majority of students.

guntars 4y ago

You should just come out and say that you’re against subsidizing the wrong people. But maybe you’re a libertarian and think government should’t subsidize any of the thousand other things it does, like parents and farmers. I would have called myself a libertarian too some time ago, but now I see it as just youthful naivety.

remarkEon 4y ago
>You should just come out and say that you’re against subsidizing the wrong people. The "wrong people" that OP is against subsidizing is the fraudulent higher education business in the United States. Government should subsidize some things, where markets fail (markets are just a tool, after all), but in this case we're going to be giving these universities and institutions a green light to do whatever the hell they want with tuition costs. They'll raise them again, for no real reason, because why the hell wouldn't they? Uncle Sam will pay for it. Perhaps we should just nationalize the endowments instead.

Akronymus 4y ago

> Instead of addressing the ballooning costs of higher education (which incidentally is a failure) Isn't part of the ballooning costs that student loans are easy to get and backed by the government?