On Canceling Student Loan Debts
August 24, 2022
FROM Chris at Know Your Adversary:
Someone recently asked me what I thought about student loan debt cancellations.
My answer as an economist is straightforward. Any sizeable debt cancellation will indeed increase upward price pressures. And it’s not just overall price pressures per se, with debt cancellation of this size, what we’ll witness will be price pressures in certain sectors over others. While price inflation will trickle down overall to even the price of a can of corn, price growth will concentrate around the areas that these student drone debt slaves concentrate. This means that house prices and rents will continue to find a firm footing.
Look, even the biggest housing bear has to recognize the obvious here and that the government is doing everything it can create massive price distortions in the supply demand equations of basic necessities. The most effected will be housing. You would be a fool not to continue being a landlord.
As an economist, it is a cardinal sin to forgive debt on a wholesale level, regardless of its origin. As an investor, once again, the Democrats will only ultimately help the asset owners. The wage slave working class whose debt is not forgiven will get thrown under the bus. And the benefits that accrue to those whose debt is forgiven will all be arbitraged away and they will be in a worse state within 12 to 18 months because of every rising cost of living increases. All of that largesse will find it onto the balance sheets of the asset owners. Once again, I thank you, Joe Biden.
