Fmr. Obama Treasury Counselor Rattner: Biden Loan Plan Is Inflationary, Encourages Tuition Hikes

[mystery-ak]

Fmr. Obama Treasury Counselor Rattner: Biden Loan Plan Is Inflationary, Encourages Tuition Hikes

Ian Hanchett
26 Aug 2022

On Thursday’s broadcast of MSNBC’s “Morning Joe,” Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, stated that President Joe Biden’s student loan cancellation program is an inflationary program that will more than wipe out the deficit reduction in the Inflation Reduction Act and will encourage further tuition hikes.

Rattner said, “There aren’t yet estimates — real good estimates of what the cost will be, but let’s call it something in the $500 billion range. That is pure increase in the deficit and cost of the federal government, and that’s roughly twice the size of the amount of deficit reduction that was in the Manchin/Schumer bill that was just passed. In terms of the size of the spending in the Manchin/Schumer bill, this is larger. … In terms of the economy, yes, it is going to nudge us to the inflationary side. … I would say that that is not — that would not, to me, be a dealbreaker. It’s not ideal. We don’t want to be increasing inflation or inflationary pressures at this point in time. We don’t want to be increasing the size of the deficit and the size of our debt at this particular point in time. The whole point — or one of the points of Manchin/Schumer was to reduce the amount of debt through deficit reduction, not to increase it. And this goes in the wrong direction on that.”

He later added, “I think it is an important point to recognize that this program, or programs like this, do encourage, in effect, more raising of tuition, because you’re subsidizing the students. But other than the government coming in and somehow controlling college tuition, which I’m not sure any of us — at least I would not particularly be in favor of, this is what happens.”

https://www.breitbart.com/clips/2022/08/26/fmr-obama-treasury-counselor-rattner-biden-loan-plan-is-inflationary-encourages-tuition-hikes/

[mystery-ak]

Fmr. Obama Treasury Counselor Rattner: Fairness Is Biggest Issue with Biden Loan Plan, It’s the Same Issue ‘That Gave Rise to the Tea Party’

Ian Hanchett 26 Aug 2022

On Thursday’s broadcast of MSNBC’s “Morning Joe,” Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, said that fairness is the biggest issue with President Joe Biden’s student loan cancellation program and “this basic issue of fairness that gave rise to the Tea Party” in 2009 is “going to be something I think we hear an awful lot about in the coming days.”

Rattner stated, “I think, by far, the biggest issue is the issue of fairness…half of Americans who don’t go to college don’t benefit from this. People like your family that worked hard, took an extra job to put their kid through college so he didn’t have to graduate with debt don’t get anything from this. There are substantial questions of fairness here in terms of who’s going to benefit and who’s going to be left without really getting any benefit from this.”

He later added, “You’ll remember, back in 2009, we passed $75 billion of homeowner relief as part of the response to the financial crisis. As a result of that, literally the day after, Rick Santelli… started a rant that turned into the Tea Party. And it was all over these fairness issues. It was all over the question of someone who had bought a house he couldn’t really afford, put on too much mortgage debt, gone to Disneyworld, whatever, and now is being bailed out by the government, versus someone who acted responsibly. I agree with what the Rev said, that this is a different issue in the sense that people are borrowing this money to go to college, and that’s a very responsible thing to do, in a way, but this basic issue of fairness that gave rise to the Tea Party, in fact, is going to be something I think we hear an awful lot about in the coming days.”

https://www.breitbart.com/clips/2022/08/26/fmr-obama-treasury-counselor-rattner-fairness-is-biggest-issue-with-biden-loan-plan-its-the-same-issue-that-gave-rise-to-the-tea-party/

[cato potatoe]

Larry Summers has been critical of this administration as well.  It's a collection of moonbats, but I wonder if the public has any idea.  If the GOP fails to win back the House, and dems gain a couple of senate seats as expected, the dam is going to break on some highly destructive policies.

[catfish1957]

Hey Ratt....

Every single thing this stupid POTUS has done since his first day in office has been inflationary.

And like a runaway train, this locomotive is getting some steam.

8%?  My ass.......

[Smokin Joe]

The real effect is to subsidize programs of college study that do not provide sufficient ROI to pay back the loans, and in other instances, to subsidize those who will be fully capable of paying off their own debts.

In the case of the former, I heartily recommend the Government get out of the loan business for education, and let the Universities underwrite their students' loans. Not only would this encourage the Universities to offer courses of study likely to produce graduates capable of paying back the loans, it would return the content of that study to the purview of the universities rather than government meddling.