The current situation with student loans is a travesty, no doubt about it. Nearly 45 million people have taken out student loans and together owe over $1.6 trillion. Federal student loans account for a sizable portion of this total.
This shamble is, therefore, the fault of the federal government. The credit was provided by it. The result was higher education bubbles and a workforce of entitled, pseudo-intellectuals thanks to the federal government’s generous provision of student loans.
Signing up naive 18-year-olds for large sums of government-backed student loans is a common part of the business strategy. These kids have been hearing that college is the key to success since they were toddlers. However, the math no longer added up as tuition kept rising thanks to the rising demand for student loans.
Reducing or eliminating student loans would benefit the tainted education sector significantly more than it would help the students who are already in way over their heads. As a result, institutions may keep selling overpriced degrees.
Biden should not forgive student debts but instead, end all federal aid for higher education. Put an end to the easy money being given to colleges.
What might happen to all these well-paid academics and campuses designed like country clubs if the government stopped subsidizing their salaries? Initial benefits would be reduced tuition costs. It would also have an effect on professor pay. And educational institutions would react to students’ lower financial resources.
Would the final result — the quality of education — suffer? No, not in the relevant technological fields.
With reduced funding, however, waste may be reduced and useless “quack research” might be eliminated. The only reason these courses exist is because of the availability of federal student loans, despite the fact that they provide very little value to their students.
With only the swipe of a pen, student loans can be canceled, but it won’t make them disappear. Keep in mind that debt is essentially borrowing money from your future self. Either it has to be paid back or default has to occur.
Because this is a government-backed loan, canceling it just shifts the burden from student debtors to you and me. Everything you buy now will cost you more than you originally paid due to inflation and taxes.
And yet, this is what the public wants. This seems to be their necessary condition.
A populace that becomes used to the government’s ever-increasing hand in their lives eventually accepts it without protest. At some point, over the course of many generations at least, the population’s moral fiber gets twisted. The general public is increasingly receptive to central planning.
It is inevitable that the populace will get used to and dependent upon the welfare state. Politicians that promise them more and more sweets get their votes. They expect the government to eradicate all ills plaguing society.
Political freedom and the will to be free are eroding as a tradition. There is a concentration of power in fewer hands. Individual liberties give way to the more nebulous group will.
Individualism gives way to collectivism, and vice versa; everyone must cater to the weakest. Those who want nothing more than to be left alone just to pursue their own pleasures are also labeled as domestic terrorists.
As roadside attractions, special organizations and bureaus and a maze of laws and regulations are built. They waste time and effort on meaningless compliance procedures instead of developing and delivering products and services.
Keeping track of transactions, filing paperwork, and submitting reports have all become critical functions of modern businesses. Many people in the workforce are tasked only with compliance reporting.
To Be In Accordance With The Law
Government service jobs are promoted as respectable alternatives to the private sector. Adult daycare is provided by government agencies for those who have wasted their college education on meaningless degrees. Be there. Carry out the routine. Make sure you get paid.
Employment security, generous benefits, and generous retirement packages are all included. It makes little difference if the tasks at hand are mostly meaningless and tedious. It must be beneficial if it allows the commissioners to better manage and govern their environment.
The reality is that working for a government office or agency is a net loss of money. The goal of these measures is control and regulation. That’s a waste of real money since it comes from genuine production that these people aren’t using.
The scope of government overreach may be especially ridiculous at the municipal level. The Center for Justice reports that in order to open a restaurant in California, a potential business owner must fork out a whopping $22,648 in 17 separate fees. In addition to typical expenditures and effort involved in operating a restaurant, there are also regulatory difficulties to overcome.
Then why make an effort?
When you can earn more working for the municipal health department, why bother operating a restaurant? You get to leave at 5, you get off on the weekends and holidays, and the pay and benefits are excellent.
Taking into account all of the laws and regulations, establishing a firm has much more drawbacks than benefits. There is a huge onslaught of demands for even the most fundamental things.
Putting an advertisement in the newspaper is all that should be required to launch a home-based teaching company. However, to be in complete compliance in Phoenix, 21 separate regulatory actions are needed.
This is really insane. And it’s extremely harmful…
Economic Ignorance and Controlling Politics
The Department of Labor’s Statistics’ data on worker productivity in the second quarter was a turd, as you may remember. The revised quarterly reduction in labor productivity for 2022 was 4.1 percent. Even though employees put in more time, productivity fell by 1.4%. The labor productivity drop was the largest since 1948, or 74 years ago.
As a result, individuals are putting in longer hours for fewer results. As a result, they are effectively working backward. Because of decreased production, there may be fewer goods and services to purchase. Consistently high inflation amongst consumers is encouraged by this.
So, why has productivity in the workplace cratered?
Workers’ mental and physical capacities to create new products and services while using as few resources as feasible drive productive activity. So that more may be produced for less money. Increased prosperity results from increased productivity.
Yet, despite the accumulation of technology and mechanized improvements since the start of the industrial age, productivity in the workplace has plummeted. The question is, “Why?”
The rationales might be different for each case. But in the end, it all boils down to the basics. Out-of-control government meddling in all facets of the economy and industry, including excessive regulation, excessive taxes, the creation of new money, the manipulation of the credit market, and so forth.
Democrats might gain support in the next midterm elections if they promise to forgive some or all student loans. That is the hope that Biden has. For the central planner’s fantasy of massive political domination and economic doom, this is but another watershed moment.