Richard Blumenthal, the Democratic senator from Connecticut,
has put forth a proposal to help those with student loan debt. But this would only apply to those who
get a job at a qualifying nonprofit organization, which would include
Certain employees would see a gradual decrease in their
outstanding student loan debt, with total forgiveness coming after 10 years.
It should be no surprise that a politician wants to buy
votes. But it is especially
interesting that he wants to offer this vote-buying program only to those who
choose not to work for a private, for-profit company.
Blumenthal stated, “Teachers, police officers, public health
workers and other public servants should be applauded and supported – and not
drowned in debt to pay for the degrees many such jobs require.”
So if this is the senator’s stance, then I guess he believes
it is acceptable for private sector workers to drown in debt in jobs that
require a degree.
One of the reasons that many cities and states are in so
much trouble financially is because of promises made to government
workers. In particular, it is the
huge pensions that are being paid to those who worked in professions such as teachers
and police officers.
In other words, Blumenthal wants to hand over more taxpayer
money, in the form of government loan forgiveness, to those who already are
sucking the taxpayers dry.
Some people think I am against teachers, firefighters, and
librarians, but I’m really not.
Some people think they are overpaid and some think they are
underpaid. I don’t really think
either way, but the high demand for these occupations seem to indicate that
they are generally overpaid by market standards. But I’m sure there are some really great teachers and
firefighters who should probably make more, and would make more in a free
The problem is that these are mostly government
occupations. The wages paid to the
government employees are somewhat arbitrary. The wages are not being determined through a free market
pricing system, the way that other wages are determined.
It is no surprise that a Democratic senator in Washington DC
wants to praise government work and buy votes. It is no surprise that he considers them public servants,
while he implies that private sector employees aren’t serving. In reality, he has it mostly backwards.
If his proposed law became a reality, then it would be an
added benefit for government employees.
This means it would be an added expense for taxpayers. Since the free market isn’t determining
the wages of these employees, it is easy for some windbag senator to come in
and attempt to arbitrarily add benefits.
Who is to say whether this is deserved? It certainly isn’t the free market.
This is another case of where the government creates a
problem and then just creates more problems by trying to solve the previous
It is the government that has encouraged and subsidized
student loans, which has also contributed to the enormously high tuitions. Now that the economy is weak and wages
are down (thanks to the government and central bank), many young people are in
over their heads with student loan debt.
It is mostly a government-created problem.
So the solution is obviously more government. Just forgive the student loans and put
the taxpayers on the hook for paying it back. And only give this benefit to those who are in the nonprofit
sector, particularly those who already get their full salary and benefits from
Ultimately, I don’t think this proposed legislation will
pass. It is too blatant of a
vote-buying program. Sometimes the
politicians need to learn to be a little more subtle.