Democrats are applauding the president’s plan to offer this debt forgiveness to student borrowers, here are Terry’s thoughts when he heard about this last week: “One, it’s helping disproportionately people that make more money and have higher potential for lifetime incomes. Secondly, I’d say that it increases the likelihood of continued moral hazard, which is this idea that people can make bad decisions.”
Terry is not saying going to college is a bad decision. What he means is there are a lot of kids that just go for the experience, then switch schools, and don’t finish. Then, take on debt because they weren’t incredibly serious about it in the first place. Now they’re off the hook for this, $10,000, maybe $20,000, so it’s just alleviating people from bad decisions and encouraging them to take on debt. And oh, by the way, they just spent $6 to $7 trillion to get out of the COVID response, which is what’s created all the inflation now.
Sawchuk concludes by saying “So, in my estimation, this is only going to make that problem worse. And, you know, I’m not an economist, so I don’t know these things, but isn’t it true? In the end, I just think this is classic Biden-economics, Biden-governing, which is ‘don’t do anything until you have to and do whatever you can to stay in power.’” Not anything to help your people.
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Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.
