Barack Obama and the Senate Democrats want to help college graduates drowning in student debt refinance. Republicans, naturally, are against it. Natalie Kitroeff, who has reported on the ruthlessness of the agency that enforces such debt, explores the long-term damage: apparently student debt is one reason the housing market isn’t recovering.
Really and truly: if you’re not a fanatical partisan Democrat by now, you’re simply not paying attention.
Megan McArdle points out that there are other people than indebted college graduates who are worth helping, and also that there’s an alternative to the Warren/Obama proposal for debt relief: changing the rule that makes student debt undischargeable in bankruptcy. I agree on both points. We could also cut back radically on incarceration and use the savings to restore the savage cuts to public higher-education budgets. (Fifteen years ago, California spent 9% of its budget on higher education and 3% on prisons. Those numbers have now been reversed.)
I’d merely point out that Megan can’t find any actual elected Republicans willing to vote for any of those programs, any more than they’ll vote for the Warren/Obama plan. In the real world, we don’t have a choice between Democrats and an alternative party that cares about the needs of people under financial pressure but prefers a different set of programs to help them; we have a choice between Democrats and plutocrats. That – and not the details of debt-relief policy – is what I claim Megan and her fellow libertarian-leaning but socially concerned pundits aren’t paying attention to.