Economist Nassim Nicholas Taleb has criticized the Obiden Regime’s controversial student loan debt forgiveness plan.
This from slaynews.com.
Taleb, the author of the bestselling book “The Black Swan” which deals with the extreme impact of rare events, argues that colleges should foot the bill for the scheme and not U.S. taxpayers.
Taleb’s book also argues that systems should be designed to be “antifragile” and build resilience when subjected to stress from adverse events.
He said in a post on Twitter that the cost of Biden’s:
[D]ebt jubilee should be borne by universities, not taxpayers.
The White House says Biden’s student loan forgiveness scheme is estimated to cost $24 billion per year, or $240 billion over a 10-year period.
Under Biden’s sweeping forgiveness plan, taxpayers will absorb up to $10,000 in outstanding student debt for individual borrowers earning less than $125,000 per year or $250,000 for married joint filers.
Republicans have panned the debt wipeout as unfair to people who sacrificed to pay off their student loans or never racked them up in the first place but now have to foot the bill for other people’s debts.
Senate Minority Leader Mitch McConnell (RINO-KY) said in a statement.
Biden’s student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt.
McConnell added:
This policy is astonishingly unfair.
The economist said in a separate post on Twitter that:
[M]iddle-class parents were tricked & fleeced by the implicit promise that a U.S. college degree would guarantee a good job.
“If a U.S. college degree appears to be useless, it is by design,”
He continued by arguing that liberal arts degrees amount to:
[T]raining for upper-class free men (liber) who were above having a profession.
He added:
Vocational and professional schools, on the other hand, are meant to prepare people to take on jobs that pay money,
Taleb’s remarks that universities—rather than taxpayers—should bear the cost of the student debt jubilee dovetails with the view that it’s unfair for America’s working class taxpayers who didn’t go to college to have to pay for the student loans of those who racked up debt for advanced degrees that have proven of little value on the job market.
It’s a view McConnell echoed in his statement, in which he said that:
[E]xperts who studied similar past proposals found that the overwhelming benefit of student loan socialism flows to higher-earning Americans.
Countering claims that the debt forgiveness benefits higher-income individuals while putting the cost burden on working-class Americans, The Regime has said that:
[N]o high-income individual or high-income household—in the top 5 percent of incomes—will benefit from the student loan forgiveness program.
The Penn Wharton Budget Model confirms The Regime’s position that none of the benefits will go to the top 5 percent.
However, the Penn model also estimates that between 69 percent and 72 percent of the forgiven debt accrues to borrowers in the top 60 percent of the income distribution.
Final thought: To those who were comfortable with having successfully paid off their student loan debt, guess again. You’re about to be saddled with someone else’s student loan debt if this unconstitutional farce is allowed to be shoved through.
