democratic socialist Alexandria Ocasio-Cortez isn’t used to hearing the word no, at least from those within her own party. If baby wants student loan debt forgiveness then baby gets it. But grandpa Joe said “no,” and now AOC is speaking out on Twitter, as per the usual.
During his disaster of a town hall last night, President Joe Biden was asked if he’s going to cancel $50,000 worth of student to which he responded “I will not make that happen.”
Biden says that students who went to schools like Harvard or Yale shouldn’t have their debts forgiven and instead wants to send that money to making community college tuition-free and put the rest of it in early childhood education. Moreover, Biden doesn’t think he has the authority to just dismiss that much debt.
“My point is: I understand the impact of debt, and it can be debilitating,” Biden said. “I am prepared to write off the $10,000 debt but not $50 [thousand], because I don’t think I have the authority to do it.”
Biden has promised in the past to forgive $10,000 worth of debt for students as part of a Coranvirus relief effort and extend freezes through September, but naturally, the further left you go the more this move isn’t good enough. AOC wants the magic wand of debt forgiveness to be waved completely.
“Who cares what school someone went to? Entire generations of working class kids were encouraged to go into more debt under the guise of elitism, “she tweeted. “This is wrong. Nowhere does it say we must trade-off early childhood education for student loan forgiveness. We can have both.”
“The case against student loan forgiveness is looking shakier by the day,” she continued in a follow-up tweet. “We’ve got the *Senate Majority Leader* on board to forgive $50k. Biden’s holding back, but many of the arguments against it just don’t hold water on close inspection. We can and should do it. Keep pushing!”
The case against student loan forgiveness is looking shakier by the day.
We’ve got the *Senate Majority Leader* on board to forgive $50k. Biden’s holding back, but many of the arguments against it just don’t hold water on close inspection.
We can and should do it. Keep pushing!
— Alexandria Ocasio-Cortez (@AOC) February 17, 2021
AOC and her squad of like-minded hard-leftists along with her army of loyal clapping seals can “push” as hard as they want but it’s not going to matter. Biden is right when he said he doesn’t have the authority to do it and it’s unlikely that debt forgiveness on this level is even going to happen. It’s likely that the resolution introduced by Sens. Chuck Schumer and Elizabeth Warren even believe it will happen and it’s more of a way to endear themselves to AOC’s ilk than it is to actually make anything happen. It’s a political game playing at the expense of the hard-left.
What’s more, AOC is mistaken if she believes this will help Americans. It would push some cash in their pocket, but it would benefit the wealthy most of all. As Fox Business reported, a working paper from the University of Chicago’s Becker Friedman Institute for Economics tells us that the rich would only get richer thanks to the debt forgiveness, which AOC claims is the opposite of what she’s trying to accomplish:
Still, canceling student loan debt may disproportionately benefit wealthy Americans: A recent working paper published by the University of Chicago’s Becker Friedman Institute for Economics shows that erasing all student loan debt would distribute $192 billion to the top 20% of earners in the U.S., but just $29 billion to the bottom 20% of U.S. households.
Under a universal loan forgiveness program, the average individual among the top-earning borrowers would receive $5,944 in forgiveness, while those with the lowest incomes would receive $1,070 in forgiveness, according to the study, authored by economists Sylvain Catherine and Constantine Yannelis.
Such sweeping executive action by Biden would almost certainly face a legal challenge, and it’s unclear whether it could survive. Critics have argued that using such power exceeds the president’s authority granted by Congress.
This isn’t even considering the fact that this much debt forgiveness would add trillions to the national debt, but that has never been a concern for the politicians in Washington.
Either way, AOC can stomp her foot and shake her fist all she wants. Student debt forgiveness on that level is not going to happen.