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A decade ago, America Bailed WallStreet banks for 3 trillion dollars. Now, it’s their turn to return the favor. Senator Bernie Sanders is proposing a plan to cancel $1.6 trillion of U.S. student loan Debt. Although many believe that a one clearance of debt does not address the root of the causes for the nation's student debt crisis. Canceling debt is an effective policy because we will see a boost of Domestic spending, as well as create a slew of new job opportunities over the next decade and it will not cost the average taxpayers like you or me a
dime. According to a report from the Levy Economics Institute of Bard College under the legislation to cancel 1.6 trillion dollars in debt, the economy would see a boost of approximately $1.3 trillion dollars over the next decade (or about $108 billion per year).
Consumer spending accounts for 70% of economic growth for the U.S., Student debt is currently delaying traditional stepping-stones of adulthood like buying a home, getting married ad even having kids.
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If my generation is putting off buying homes, at the same time we are also not buying all the things that accompany it, this must have an impact on the economy when you punch in the numbers. Debt forgiveness would give the 45 million Americans crushing under debt the proper resources to buy homes, cars, open business even have more kids.
Karthik Krishnan a professor at Northeastern University who specializes in student debt, CNBC that in 2018 with $30,000 in student debt are 11% less likely to start a business that are those without debt.
(Bernie Sanders: My plan...) and in a study done by the Levy Economic Institue peak job creation after the student debt liberation would create somewhere between 1.2 to 1.5 million new jobs per year. The $2.2 trillion plan would be paid for by a new tax on financial transactions, including a 0.5 percent tax on stock transactions and a 0.1 percent tax on bonds. That levy would raise up to $2.4 trillion over the next decade, according to the senator’s office.
The biggest opposing arguments I’ve heard so far are from older generations saying that this plan is unfair because they paid for their college or debt. Then there are all the people call this debt wipe a band-aid or a temporary solution to a bigger problem. So, everyone’s question is what happens after the student debt? What about future students and their problems? Which are concerning questions that were not addressed in the beginning, but Senator Sanders plan does have a second part, which includes to make all public colleges free to attend for future students, it also provides funding for low-income students to pay for living expenses. As for anyone who attends a graduate school or private undergrad college that will still need to borrow money still will need loans but those will be provided at a much lower cost. as for those who criticize this and claim it unfair because they paid for their own way through school and loans and although it might seem unfair their tuitions were a fraction of what they are now and wouldn’t you want children to have a better chance for an affordable education?.
Student Debt Forgiveness: A Bold Proposal to Boost the Economy and Create Opportunities. (2024, Jan 24). Retrieved from https://studymoose.com/student-debt-forgiveness-a-bold-proposal-to-boost-the-economy-and-create-opportunities-essay
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