Things are so bad even the White House insiders are now telling us the truth.
President Joe Biden’s multi-billion-dollar student debt forgiveness initiatives have sparked significant controversy and criticism, including skepticism from some members of the White House press corps, who usually support his administration.
Recently, Biden’s administration announced another wave of student debt relief, this time amounting to $7.7 billion for 160,500 borrowers who are public service workers, such as teachers and nurses. Overall, Biden has now eliminated $167 billion in student debt for approximately 4.75 million people.
While the recipients of this debt forgiveness may experience financial relief, the responsibility for this debt doesn’t vanish. The funds these students borrowed were already paid to educational institutions, which are not returning the money. Consequently, the federal government needs to borrow money to cover these debts, effectively transferring the burden to taxpayers. This process increases the national debt and obligates the public to shoulder the interest and principal payments arising from Biden’s debt forgiveness program.
Critics argue that Biden’s debt forgiveness is essentially a redistribution of wealth. It favors college graduates over those who have repaid their debts, never borrowed, or didn’t attend college at all. This policy is seen not as an act of social justice but as a selective benefit for a specific group, raising questions of fairness and equity. NBC’s Peter Alexander questioned this approach directly, asking why individuals who didn’t receive debt cancellation shouldn’t also receive financial compensation.
White House press secretary Karine Jean-Pierre responded by emphasizing the financial struggles of those in debt. However, her remark that these individuals are “literally being crushed” by their debt was met with skepticism. Another reporter pointed out the hyperbole, to which Jean-Pierre clarified she meant “financially.”
Jean-Pierre’s exaggeration, though misguided, highlights the broader issue of financial strain in Biden’s economy. High inflation, exacerbated by government spending, has led to soaring interest rates on mortgages, car loans, and credit cards. According to the Federal Reserve, consumers are burdened with a record $12.8 trillion in housing debt, $1.62 trillion in car debt, and $1.1 trillion in credit card debt.
While no one is “literally” being crushed, the financial pressure is real. Rising interest rates have made life harder for millions, especially those without college degrees. The Federal Reserve’s Economic Well-Being survey revealed that 65% of people feel worse off financially due to inflation, with 19% saying their situation is “much worse.” Additionally, 17% of adults reported being unable to pay all their bills in the previous month.
Voter dissatisfaction with Biden’s economic management is palpable. Many express a preference for former President Donald Trump’s economic policies, which included tax cuts that benefited a broad swath of the population. In contrast, Biden’s economic initiatives appear to favor specific groups, leading to a perception of biased governance and selective generosity.