He’s got you covered, well, at least through this fall’s election
Student loan debt for those under 30 has increased 56% since 2005! The average college grad now has a debt of $51,000, which obviously is bad especially when job growth is stagnant.
Because President Obama, for whatever reason, doesn’t pursue policies that would encourage job creation, he instead wants to allow bankruptcy on student loans. A good way to get votes: “Sure you don’t have a job, but you don’t have to pay your loans back anymore!” Of course, this would be disastrous for the economy, ruining those banks who lent the money and contributing to the bursting of the student loan debt bubble.
But President Obama’s new Consumer Financial Protection Bureau, which is working to help graduates avoid loan repayment, doesn’t care. As Nicole Gelinas argued recently in City Journal, the Bureau
“may do for credit cards and other financial products what the government did for mortgages: make the poor think that borrowing lots of money is perfectly reasonable. The [Bureau], in sum, is Washington’s new weapon in its war for more debt.”
Critics of the Bureau don’t like the fact that it can make decisions independent of financial regulators, thereby failing to consider the impact of its edicts on investors and lenders. But the Bureau doesn’t exist to help the economy or even protect consumers; it’s a political shield for incumbents, including President Obama. It exists to loudly proclaim to those in debt: “We’re on your side! We’ll help you against the evil banks who lent you money! Just keep voting for us!”
It is a credo of irresponsibility—and when Americans can’t be responsible for themselves they will have to be dependent on government.
Read more about the student loan mess at The Fiscal Times (1 page).
Check out the Campfire Blog’s coverage of the ConsumerFinancial Protection Bureau as a shield for incumbent power (1 page).