The rich get richer, the old saying goes. And President Joe Biden wants to keep it that way.
Case in point: The White House has announced a major move on student debt, canceling it for nearly 40,000 borrowers and moving 3.6 million closer to forgiveness. However, student debt relief primarily benefits the better-off.
Yes, like much of the progressive agenda, this is billed as “equity,” with a massive contingent of Democratic lawmakers calling for relief late last month as a way to “advance equity as our nation works to rebuild a fairer economy.” stronger and more equitable. ”
But look at the numbers. A January article from the leftist Brookings Institution showed how unevenly distributed student debt is, with nearly a third of everyone American student debt owed by the richest 20% of households, while the bottom fifth of earners owe less than 10% of that debt.
Students with advanced degrees (doctors, lawyers, and the like) bear 40% of the debt.
And another recent study shows that the universal student debt forgiveness that Democratic lawmakers are calling for would benefit the top 10 percent of earners. five times as well as below.
The student loan freeze that has been in place since the start of the pandemic has already saved these mostly well-off borrowers $195 billion in loan payments, even as economic life has gotten tougher for those more well off. down the economic ladder. Meanwhile, unemployment for those with a college education is below 2%.
That forgiving student loans is a gift to the rich cannot surprise anyone with more than a passing knowledge of life in this country: the vast majority of American adults not they have college degrees, and those who do tend to earn more.
So why the pressure for forgiveness? Well, a large portion of those well-educated, debt-laden voters are Democrats who live in suburban areas where the party is trying to shore up votes. The pardon would also appeal to younger voters, among whom Biden’s support has plummeted.
This is the exact opposite of fairness: a transfer of wealth to the already rich in order to bribe key Democratic constituencies, and insult and hurt the less well-off.