Desperate Elizabeth Warren now says she'll cancel student debt by executive action
by Philip Klein
| January 14, 2020 10:39 AM
In her latest show of desperation, Sen. Elizabeth Warren is now promising to implement her student loan forgiveness plan by executive fiat, adding legal questions to an already reckless proposal.
With less than three weeks to go before Iowa, Warren needs to make a splash in Tuesday night's debate. She's teetering on the edge of disaster in the first Democratic nomination contest, and a poor showing there would doom her presidential ambitions. After her campaign spent yesterday pushing the idea that Sen. Bernie Sanders told her in a private meeting that a woman couldn't be elected president, she's trying out a new gimmick to highlight a popular proposal from earlier in her campaign.
Last April, Warren proposed to offer debt cancellation of up to $50,000 to more than 42 million people, or 95% of those with debt. She claimed that will completely wipe out debt for 75% of borrowers with student loans. The proposal, which would be a slap in the face to those who already struggled to pay off their loans, would create an incredible moral hazard by establishing the standard for young Americans that if they rack up debt, the government will always step in to wipe it away. That will no doubt cause a new wave of borrowers to take out even more debt and incentivize colleges to increase tuition. As Reason's Peter Suderman detailed at the time, it is also a giveaway to a class of Americans (college graduates) who are relatively well-off and connected.
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https://www.washingtonexaminer.com/opinion/desperate-elizabeth-warren-now-says-shell-cancel-student-debt-by-executive-action
