Here we go again. If it hasn’t been said enough over the last 18 months, President Joe Biden is again abusing his office’s power. During the pandemic, he created a nightmare by issuing mandates and declaring a rent moratorium. By the time the dust settled, the US Supreme Court had ruled his dictate unconstitutional. Still, since when has that mattered to many on the Left?
Biden’s lawlessness was so bad that George Washington University Constitutional Law Professor Jonathan Turley said his court losses were among the worst of any president in his first six months in office.
It appears Bide has learned nothing. On Wednesday, August 24, he did what many believe was unthinkable. He held a press conference and stated he would forgive $10,000 in student loan debt and $20,000 for those with pell grants. The dictatorial fiat impacts 40,000 borrowers, every American living today, and those who have yet to be born. The consequences of this action could be damaging for decades to come.
Does This Make Sense?
Biden’s school debt forgiveness program may very well be the worst domestic policy of this presidency, and that’s saying something. There are a lot of questions about Biden’s student loan forgiveness program. While students and parents signed an agreement to pay a loan, Biden says their choices saddled them with debt. Welcome to the real world. People have credit card debt, car loans, and mortgages. Sometimes, they buy beyond their means. Is that the taxpayer’s responsibility to bail them out for their choices?
The primary difference between school loans and other ones is that school debt is an investment, not an expense. Estimates suggest people who graduate college will earn, on average, $1 million more over their lifetimes than those without a degree. Graduate degree holders earn even more.
The real crux of the matter is why electricians, mechanics, insurance agents, retail workers, or anyone who didn’t go to college should share in the burden. After all, who does Biden think is going to pay for this?
It will be citizens of America — both born and unborn.
This move eradicated any notion the Democrats in Washington made for passing the “Inflation and Reduction Act.” They claimed it would cut the deficit. In less than a moment, Biden reversed it. $300 billion will immediately be added to the national debt. In 2021, Democrats in Congress rammed the American Rescue Act down taxpayers’ throats. Economists warned them it would spark inflation coming out of the pandemic lockdowns. While supplies were low, demand for products and services skyrocketed. The result was higher prices on virtually everything you buy.
For years, economists have warned that bailing out student loan borrowers would harm the economy. Now, here we are. Biden may single-handedly inject $300 billion back into the debt and spark more inflation.
Guess who benefits from this?
It’s not you or me. It’s the colleges who will get a massive payout. Schools like Harvard have enormous endowments. In September 2021, US News reported that Harvard’s endowment was $42 billion. That’s larger than many countries’ GDP. The news outlet added that the average university endowment in 2020 was approximately $1.4 billion.
Now, Biden’s move will incentivize them to increase tuition. The politicians are training school administrators so that they can make more money, and the government will continue to throw more of your dollars their way through bad policy initiatives such as this.
The end result is rising tuition and an impact on inflationary pressures.
Is Biden Breaking the Law?
The chief question once again is, is Biden breaking the law? In recent years, the Supreme Court has ruled the executive branch cannot do as it wishes. There’s a little thing in the US Constitution called the “Separation of Powers.” In this case, Congress did not codify in law that Biden could use the government’s money for this purpose.
So, where did Biden get the authority to bypass Congress?
He used a 2003 law to cancel the debt. Congress passed the “HEROES Act of 2003” to reduce or eliminate student debt for military members during the war on terror. On Wednesday, the Justice Department gave the president an opinion stating the law gave him broad “sweeping authority” to reduce school loan debt.
Critics say the Heroes Act has nothing to do with today’s situation and that Congress did not expressly authorize the president to assert executive power over such a massive part of the US economy. Experts say the forgiveness program would harm many, and someone would likely sue to stop it for legal standing. Among those preparing a potential lawsuit is The Job Creators Network.
So, in reality, no one is going to win. If the courts overrule Biden’s reach, they will be left angry, confused, and bitter. If it goes through, untold numbers of Americans who paid off their college debt will be mortified they are on the hook as a taxpayer for someone else’s debt. If you didn’t go to college, who’s looking out for you?
Here’s the reality. I hate to say this, but it appears like a political gimmick. It’s a stunt. Biden’s appealing to his base ahead of the election. He could have done it six months or a year ago. He didn’t.
There will be a lot of movement in the coming weeks.
I’ll keep you abreast of what’s happening.