Economist Stephen Moore, a former senior economic adviser with the Trump White House and founding president of the Club For Growth, says the Biden administration's "outrageous" proposal of eliminating $10,000 in student debt for borrowers making less than $125,000 has no long-term merit.
"What a horrible example the United States government is setting, by telling people, 'You can be deadbeats' and not pay back your loan," Moore told Newsmax on Tuesday while appearing on "American Agenda" with hosts Bob Sellers and Katrina Szish.
Moore then labeled responsible people who have already fulfilled their college loan obligations as "the suckers here, because the government would have [eventually] paid back your loan."
Moore's most pressing concern: What will be the repayment expectations for students seeking college loans in the future?
"What's their motivation?" for paying back any future loan, Moore rhetorically asked. "This is the nail in the coffin for the [federal] student loan program."
Moore also wonders what percentage of the voting populace would embrace student-loan forgiveness, without also factoring in spiraling tuition rates at college/universities, or how irresponsible people might take out more loans to live beyond their means — thus decreasing the dollar's value?
As such, Moore — who recently authored the book, "Trumponomics" — believes this proposal would be "wildly unpopular" with the majority of economy-focused voters.
From Moore's perspective, the Biden administration would only be appeasing a small faction of voters. Perhaps those going to coastal schools.
As an example, Harvard University — for which Moore estimates has an endowment of more than $50 billion — could "charge free tuition from now and until forever" and still be financially secure, "because of the endowment," he says.
But lower costs are apparently a bridge too far, says Moore.
In lieu of the government forgiving student loan debts, for which the American taxpayer would eventually be tasked with making up the difference, Moore says the U.S. government should operate on a simpler level: "How about making college more affordable for the students?"
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