CNN guest Johns Hopkins University professor Marc Goldwein punctured the left’s narrative that student loan debt forgiveness for those making less than $150,000 will not increase inflation during a guest appearance.
“What we really need to do is make college affordable, not send a $10,000 gift to people that already have in many cases advanced degrees,” Goldwein said on the Aug. 23 edition of CNN Newsroom. CNN’s Poppy Harlow, a CNN reporter, rebutted Goldwein and cited a left-economist linked to George Soros (liberal billionaire) who claimed that cancelling student loan debt wouldn’t increase inflation.
Goldwein called those claims “baseline trick” because the student loan repayment pause “was always meant to be a temporary pause. If it’s a permanent pause it’s not student debt: It’s student grants.”
Goldwein also said, “disproportionately student debt is being held by people that have advanced degrees and pretty good income.”
This may not comfort Americans, who could be facing an additional $300 billion in tax burden if 10,000 student loans are enacted for those who earn less than $125,000. According to Penn Wharton Budget Model
Harlow continued to press Goldwein on the additional “burden” that student debt repayment would cause to Americans, but the economist made clear that the other alternative was a recession. Goldwein responded that forgiving student loan debt is “gonna make the Fed’s job harder and that means it’s gonna increase the risk [that] they’re going to have to drive us into recession to get inflation under control.”
Goldwein stated that it is commonsense to repay student loans. “We could send everybody another round of checks to pay for their inflation costs, but that would actually make inflation worse. Now is the time to bring down inflation. One of the easiest ways to do that is to ask people to start paying back the debt they already owe, to start making the principal payments that they already agreed to.”
Goldwein explained that even if one assumes that President Joe Biden’s so-called “Inflation Reduction Act” will reduce the deficit, canceling student debt would wipe out any possible deficit reductions.
“The Inflation Reduction Act saves, maybe, $300 billion dollars in the first ten years. If we do cancel $10,000 in debt and just extend the policy a few months, we’re gonna be at about that much in terms of new costs. All deficit reduction will be eliminated. Gleichzeitig, we’re probably going to do more to increase inflation from debt cancellation than any inflation reduction from the Inflation Reduction Act.” [Emphasis added].
Biden announcedOn Twitter, the government announced that it will forgive student debts up to $20,000 for Pell Grant recipients and $10,00 for others.
My Administration, in keeping with my campaign promise is going to announce a plan that will give middle-class families some breathing space as they get ready to start federal student loans payments again in January 2023.
More details will be available this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
Conservatives under attack. Call ABC News 818460-7477 or CBS News 212-975-33247 to request a report about the inflationary explosion which would result if student debt was canceled by President Obama.