President Biden’s SAVE College Debt Repayment Plan Puts The Motivations In The Wrong Places
Imagine fathers at the little league baseball fence. The first brags, “My son is batting 200!” You should be thinking, “That’s not very good.” The second intones, “Oh yea, well my son is batting 175!” “Hold it,” you’re thinking, “this is going backwards.” And your suspicions are confirmed when the third yells out, even louder, “Here comes my son, batting 150!”
As all three dads high-five each other, you look at the name on the uniforms and it reads “Bidenomics.” You think – like Alice – you’ve fallen down a rabbit hole into Wonderland, but soon you realize, this is the economic world the progressives intended. Losers are applauded, the winners chided, and covetousness is the over-arching narrative.
The new Biden plan to reduce student loan payments will be based on income with some payments being zero.
It’s called SAVE for “Saving on a Valuable Education.”
Who saves? Well, like most socialist plans, this one puts the motivations in all the wrong places by encouraging lower incomes, just as the little league ads were encouraging lower batting averages.
In Atlas Shrugged, Ayn Rand explains how rich folks “shrugged” when taxes got too high. It’s actually an effective explanation of the Laffer Curve, by Arthur Laffer, which shows that at higher levels of taxation, people reduce their contribution. We all “shrug” at some level of taxation. The Biden SAVE plan encourages college graduates to “shrug” as soon as they graduate. Don’t go for a higher paying job, go for the lower one.
Just a few months ago Dallas Mavericks owner Mark Cuban was fined $750,000 by the NBA for