There is a sad fact that will go down in the legacy of one Barack Hussein Obama, and that is that he was a President who loved debt, and had no compunction in using it to bring the nation to the point of insolvency. And on July 19, he even doubled down on this by issuing a report where his administration concluded that the student loan debt burden on a generation of Americans is actually good for the economy.
In a 77 page report from the White House Council of Economic Advisers, the President stamped his approval on ‘voodoo economic conclusions’ made by a select few economists and academics who suggest that young Americans burdened with between $20,000 and $150,000 worth of debt is beneficial rather than harmful to the economy.
The White House just released a big report on student debt that contains all the familiar horrors about for-profit schools, indebted dropouts and students defaulting on their loans. But it has an interesting conclusion: That growing stack of $1.3 trillion in student debt is helping, not hurting, the U.S. economy.
That conclusion is sure to rankle the many student advocates and special-interest groups—from real-estate agents to employers seeking new tax breaks for their young workers—that argue student debt is a big “drag” on the economy. (Hillary Clinton and Donald Trump have each decried the rise in student debt.) But the 77-page report from the White House Council of Economic Advisers backs up its claim with numerous charts and studies from economists and academics. – Wall Street Journal
One has to wonder if the same economists and academics who run the Federal Reserve were the ones who provided the data for this report, as it is well known that the last three central bank chiefs promoted the creation of enormous debt as their catalyst for spurring on ‘economic growth’.
Yet for any real economist, or even someone with a 5th grade education under their belts, non-performing debt obligations are a killer to one’s financial well being, as well as to the overall growth of an economy. This is because those under the Damocles Sword of student loan debt are more likely to refrain from buying a house, getting married and having children, renting their own place, and spending non-discretionary funds on consumer products which in today’s economy, are the primary driver behind economic growth.
Since his time in office, President Obama appears to have surrounded himself with some of the most incompetent administrators ever. From his former Secretary of State and current ambassador to the U.N. both calling the Benghazi attacks the result of an obscure video on youtube, to declaring that climate change is one of the key reasons behind terrorism, it should then come as no surprise when Barack Obama and his white house administration publicly conclude that the debt obligations that will hamstring millions of Americans for a decade or more are a benefit to the economy.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.