{"id":17753,"date":"2022-11-28T13:40:00","date_gmt":"2022-11-28T18:40:00","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=17753"},"modified":"2022-11-28T13:43:26","modified_gmt":"2022-11-28T18:43:26","slug":"17753","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2022\/11\/28\/17753\/","title":{"rendered":"College Graduates Are the New Favored Class of Democratic Largesse"},"content":{"rendered":"
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Libertarian Institute, November 28, 2022\"\"<\/a><\/h3>\n

College Graduates Are the New Favored Class of Democratic Largesse<\/a><\/h1>\n

by Jim Bovard<\/a><\/span><\/p>\n<\/div>\n<\/div>\n

\n

\"\"<\/a>When Americans make lists of the persecuted, downtrodden groups in our society, college graduates rarely top the ranking.<\/strong> But President Joe Biden is offering one bribe after another to convert college graduates into perpetual dependents of the Democratic Party. Biden\u2019s handouts helped prevent a \u201cred wave\u201d of Republican victories on Election Day and he appears hellbent on forcing taxpayers to pay any price to continue buying votes for his party.<\/p>\n

Federal subsidies for higher education have been one of the least recognized boondoggles of recent decades. Federal-backed loans for higher education took off in the 1960s and have skyrocketed in this century. Almost $2 trillion in federal student loans are owed by 46 million<\/a> people.<\/p>\n

Federal aid spurred tuition increases that make it far more difficult for unsubsidized students to afford higher education. A student\u2019s financial \u201cneed\u201d is defined largely by tuition fees. Every tuition increase means an increase in federal aid for students\u2014and thus an increase in the federal aid for the college. A 2012 study by the Center for College Affordability and Productivity concluded that financial aid \u201cinevitably puts upward pressure on tuition. Higher tuition reduces college affordability, leading to calls for more financial aid, setting the vicious cycle in motion all over again.\u201d A 2015 Federal Reserve analysis \u201cfound that for every new dollar made available in federally subsidized student loans, schools\u2026rose their rates by 65 cents.\u201d<\/p>\n

Federal policies have helped turn young people into a debtor class perpetually clamoring for relief from its burdens. Rather than seeing the federal government as a potential peril to their rights and liberties, some debt-burdened young adults view it as the \u201cGreat Liberator\u201d\u2014presuming the right candidate is elected.<\/strong><\/p>\n

Rather than ending the perverse incentives embedded in federal aid, Biden \u201csolved\u201d the problem by canceling borrowers\u2019 obligation to repay their subsidized loans. On August 24, Biden invoked an obscure provision of the post-9\/11 Heroes Act to justify hundreds of billions of dollars of handouts to people who had taken out federal college loans. The Heroes Act permits the Education Department \u201cto waive or modify student loan payments in times of national emergency.\u201d Individuals earning less than $125,000 could have up to $20,000 in federal debt automatically erased; couples earning $250,000 could see a $40,000 forgiveness windfall.<\/p>\n

Biden had previously admitted that the law would not justify blanket forgiveness of college loans, but he and his advisors decided to force Americans to pay any price for Democrat votes in the midterm congressional elections. The Department of Education justified Biden\u2019s decree as \u201ca program of categorical debt cancellation directed at addressing the financial harms caused by the COVID-19 pandemic,\u201d including \u201ccancellation for borrowers who have been financially harmed because of the COVID- 19 pandemic.\u201d But college graduates were doing much better financially than other Americans who get stuck with the bill for their schooling. Their unemployment rate was less than two percent at that time.<\/p>\n

Former Education Department lawyer Hans Bader estimates that the total cost of Biden\u2019s student loan write-offs could exceed a trillion dollars. A Wall Street Journal<\/em> editorial headlined \u201cBiden\u2019s Half-Trillion-Dollar Student-Loan Forgiveness Coup\u201d derided his decision as \u201ceasily the worst domestic decision of his Presidency.\u201d The Journal <\/em>pointed out that Biden based the loan cancellation for more than 40 million borrowers \u201con no authority but his own\u201d power as president. \u201cThis is a college graduate bailout paid for by plumbers and FedEx drivers,\u201d the Journal <\/em>noted. As former OMB director David Stockman observed, \u201cStudent debt is overwhelmingly an investment in professional credentialization that should never have been an obligation of the taxpayers in the first place.\u201d ZeroHedge quipped on Twitter: \u201cHave colleges raised tuition by $10,000 yet or are they waiting a few days first?\u201d<\/p>\n

There was no rationale for blanket cancellation of student debts that would not justify blanket cancellation of almost any debt citizens owed to the government. At the same time that Biden played Santa Claus with student loan forgiveness, his administration was hiring 87,000 new IRS agents and employees to squeeze more money out of working Americans.<\/p>\n

The handouts helped buy Democrats their biggest boost among voters\u2014a 28% advantage over<\/a> Republicans in voters age 18 to 29 in the mid-term elections. Two days after the election, Biden tweeted, \u201cI want to thank the young people of this nation\u201d who voted for \u201cstudent debt relief.\u201d Jon Cooper, a former top Biden campaign operative, tweeted, \u201cYoung people: You saved our butts. THANK YOU.\u201d<\/p>\n

Two days after the election, federal judge Mark Pittman struck down the bailout as an unconstitutional decree: \u201cIn this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government.\u201d Pittman rejected the \u201cemergency\u201d basis of the order in part because Biden had proclaimed in September on \u201c60 Minutes\u201d that \u201cthe pandemic is over.\u201d The following week, a federal appeals court in St. Louis unanimously voted to impose a nationwide \u201cinjunction considering the irreversible impact the Secretary\u2019s debt forgiveness action would have\u201d on \u201cAmericans who pay taxes to finance the government.\u201d<\/p>\n

Some activists believe Biden intentionally swindled young voters with a bait-and-switch scheme. Briahna Joy Gray, who was the press secretary for Bernie Sanders\u2019 2020 presidential campaign, asked, \u201cDid Biden RIG student debt forgiveness to fail, just to help him in midterms?\u201d She explained on Twitter: \u201cThey used the promise of student debt cancellation to induce young voter turn out\u2014knowing it wasn\u2019t going anywhere [because] they relied on faulty legal authority. Hard to convince me the Biden admin didn\u2019t do this intentionally.\u201d A student activist group called the Debt Collective is circulating a petition: \u201cI refuse to pay a debt the President promised to cancel.\u201d<\/p>\n

Biden came up with a Solomonic solution\u2014sawing taxpayers in half\u2014to placate his enraged supporters. He announced on Twitter, \u201cRepublican special interests and elected officials<\/a> sued to deny this relief even for their own constituents. It isn\u2019t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.\u201d On November 22, Biden announced that he was extending the moratorium on repaying student debt until August 2023. That moratorium began in March 2020 during the first COVID lockdowns and has already cost taxpayers $155 billion, according to the Committee for a Responsible Federal Budget. When Biden announced his loan forgiveness decree in August, he promised, \u201cThe student-loan payment pause is gonna end. It is time for the payments to resume.\u201d Biden betrayed that promise, apparently believing that no one should any be obliged to fulfill their legal obligation as long as there was a snowball\u2019s chance in hell that some judge would uphold his scheme. Extending the loan payment moratorium could give a crucial boost to Democratic Sen. Raphael Warnock, locked in a tight December 6 run-off election.<\/p>\n

What happens when the latest moratorium extension ends in August 2023? Biden may be formally kicking off his re-election campaign at that time. And what better way to buy support than by extending a handout to one of his most important constituencies? In the 2022 mid-term elections, \u201c52 percent of voters with college degrees<\/a> supported Democrats while 42 percent of voters without degrees did so,\u201d The Washington Post<\/em> reported.<\/p>\n

Protecting former students from the federal debts they voluntarily accepted has become one of the great human rights issues of our times.<\/strong> Michael Pierce, chief of the Student Borrower Protection Center, is calling for Biden to \u201cmake it clear that the student loan system will remain shut off as long as these partisan legal challenges persist. Borrowers\u2019 fate is in Biden\u2019s hands.\u201d<\/p>\n

And this is the ultimate problem for democracy. Student loan bailouts have extended Biden\u2019s power over a huge swath of American voters. Each new federal benefit program extends political control over both the recipients and anyone forced to finance the handouts. Speaking to an AFL-CIO convention earlier this year, Biden shouted, \u201cI don\u2019t want to hear anymore of these lies about reckless spending. We\u2019re changing people\u2019s lives!\u201d \u201cChanging\u201d means controlling\u2014but only for their own good, or at least for the re-election of their benefactors<\/p>\n

French philosopher Bertrand de Jouvenal warned, \u201cRedistribution is in effect far less a redistribution of free income from the richer to the poorer, than a redistribution of power form the individual to the state.\u201d If Biden\u2019s loan repayment moratorium is extended through 2024, \u201ca typical medical student who graduated in 2019 would effectively have $107,000 forgiven and a law school graduate would have $65,000 forgiven\u2026New doctors receive almost ten times the benefit of the average borrower and $107,000 more than someone who never attended<\/a> college,\u201d the Committee for a Responsible Federal Budget reported. Even The Washington Post<\/em> editorial page slammed Biden\u2019s student debt forgiveness decree as a \u201cregressive, expensive mistake<\/a>.\u201d<\/p>\n

But the inequity is irrelevant if the handouts enable Biden and his Democratic colleagues to perpetuate their grip on powe<\/strong>r. As legal fights over loan bailouts continue, Americans will continue to be assailed by claptrap about ex-students as a holy class of martyrs\u2014or at least oppressed victims. But most of the self-proclaimed \u201cbest and brightest\u201d are not smart enough to recognize how they have been converted into tools for Leviathan.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Libertarian Institute, November 28, 2022 College Graduates Are the New Favored Class of Democratic Largesse by Jim Bovard When Americans make lists of the persecuted, downtrodden groups in our society, college graduates rarely top the ranking. But President Joe Biden is offering one bribe after another to convert college graduates into perpetual dependents of the […]<\/p>\n","protected":false},"author":1,"featured_media":17756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[801,2853,2124,3402,2252,131,3417,3418,45,808,3419,3420,3401,3407,3421,506],"class_list":["post-17753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-bernie-sanders","tag-bertrand-de-jouvenal","tag-biden","tag-briahna-joy-gray","tag-college","tag-dependency","tag-federal-loans","tag-forgiveness","tag-freedom","tag-handouts","tag-heroes-act","tag-jon-cooper","tag-mark-pittman","tag-moratorium","tag-raphael-warnock","tag-subsidies"],"yoast_head":"\nCollege Graduates Are the New Favored Class of Democratic Largesse - James Bovard<\/title>\n<meta name=\"description\" content=\"Biden bought votes for Democratic candidates in the mid-term congressional election by forgiving federal college loans\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jimbovard.com\/blog\/2022\/11\/28\/17753\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"College Graduates Are the New Favored Class of Democratic Largesse - 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The Wall Street Journal called Bovard \\\"the roving inspector general of the modern state\\\" and Washington Post columnist George Will called him a \\\"one-man truth squad.\\\" His 1994 book, Lost Rights: The Destruction of American Liberty, received the Free Press Association\u2019s Mencken Award as Book of the Year. His Terrorism & Tyranny won the Lysander Spooner \\\"Best Book on Liberty in 2003\\\" award. He received the Thomas Szasz Award for Civil Liberties work, awarded by the Center for Independent Thought and the Freedom Fund Award from the Firearms Civil Rights Defense Fund of the National Rifle Association. 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The Wall Street Journal called Bovard \"the roving inspector general of the modern state\" and Washington Post columnist George Will called him a \"one-man truth squad.\" His 1994 book, Lost Rights: The Destruction of American Liberty, received the Free Press Association\u2019s Mencken Award as Book of the Year. His Terrorism & Tyranny won the Lysander Spooner \"Best Book on Liberty in 2003\" award. He received the Thomas Szasz Award for Civil Liberties work, awarded by the Center for Independent Thought and the Freedom Fund Award from the Firearms Civil Rights Defense Fund of the National Rifle Association. Bovard\u2019s writings have been publicly denounced by FBI director Louis Freeh, the Secretary of Agriculture, the Secretary of Housing and Urban Development, the Postmaster General, and the chiefs of the U.S. International Trade Commission, the Drug Enforcement Administration, the Equal Employment Opportunity Commission, and the Federal Emergency Management Agency, as well as by many congressmen and other malcontents.","sameAs":["http:\/\/www.jimbovard.com","https:\/\/www.facebook.com\/jim.bovard","https:\/\/x.com\/jimbovard"],"url":"https:\/\/jimbovard.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/comments?post=17753"}],"version-history":[{"count":3,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17753\/revisions"}],"predecessor-version":[{"id":17757,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/posts\/17753\/revisions\/17757"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media\/17756"}],"wp:attachment":[{"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/media?parent=17753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/categories?post=17753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jimbovard.com\/blog\/wp-json\/wp\/v2\/tags?post=17753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}