Former Obama economic advisor Jason Furman thoroughly dismantled President Biden’s newly announced student loan handout calling it “reckless” and “inflationary.”
Biden on Wednesday declared that he will “forgive” $10,000 in federal student debt for most borrowers earning up to $125,000 a year — or up to $250,000 for married couples.
His plan also forgives up to $20,000 for borrowers who received Pell Grants while extending a repayment pause through Dec. 31.
Furman, who was Obama’s chief economist and chairman of the Council of Economic Advisers, accused Joe Biden of pouring “gasoline on the inflationary fire.”
“Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless,” he said in a lengthy Twitter thread.
“Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse,” added Furman.
Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.
— Jason Furman (@jasonfurman) August 24, 2022
Jason Furman: Biden’s Student Loan Handout is ‘Reckless’
Former Obama economic adviser Jason Furman also noted that the White House announcement of Biden’s student loan bailout preys on the emotions of the American people but doesn’t address reality.
“The White House fact sheet has sympathetic examples about a construction worker making $38K and a married nurse making $77,000 a year,” he wrote.
“But then why design a policy that would provide up to $40,000 to a married couple making $249,000? Why include law and business school students?”
I think we know why, Mr. Furman.
The White House fact sheet has sympathetic examples about a construction worker making $38K and a married nurse making $77,000 a year.
But then why design a policy that would provide up to $40,000 to a married couple making $249,000? Why include law and business school students? pic.twitter.com/463YMmCT9g
— Jason Furman (@jasonfurman) August 24, 2022
Furman, aside from frowning on President Biden’s student loan plan, has often criticized the current administration’s economic policies.
He was quick to point out a little over a month ago that ‘real wages’ were dropping at “the fastest pace of decline in 40 years.”
The decline in real average hourly earnings at this point is terrible, the fastest pace of decline in 40 years. pic.twitter.com/92rKJFtQRD
— Jason Furman (@jasonfurman) July 13, 2022
He also warned at that time – before Biden signed the tax hike/global warming spending bill and before the student loan handout – that inflation is “so deeply baked in” the American consciousness that there may be nothing Democrats can do to alter the public perception prior to the midterms.
Furman called the economic crisis “a very negative thing” for his party.
“My guess is that the negative views about inflation are so deeply baked in that nothing can change in the next few months to change them,” he said.
Obama adviser tells New York Times that Democrats are likely doomed by inflation: ‘Nothing can change’ https://t.co/YjQmemdAwG
— Fox News (@FoxNews) July 15, 2022
Biden is an Inflation Machine
Former Obama economic adviser Jason Furman had previously pinned some level of blame for skyrocketing inflation on Biden’s $1.9 trillion COVID stimulus bill.
He told CNBC that all signs pointed to the spending being “too big” and added, “I don’t know any economist” who supported that much.
On May 12, former Obama economist Jason Furman said Biden’s spending is “too big…don’t know any economist” who supported that much pic.twitter.com/fjyPIGD42M
— RNC Research (@RNCResearch) May 25, 2021
$1.9 trillion in Covid stimulus, the biggest climate package in U.S. history, Biden’s new student loan handout, and lest we forget – the administration just announced another $3 billion military aid package for Ukraine.
The $3 billion military aid package that President Joe Biden announced for Ukraine Wednesday shows his administration expects the war with Russia to last for many months or years, and signals Washington is in the fight for the durationhttps://t.co/eHH48wWm4p
— TIME (@TIME) August 25, 2022
Meanwhile, this newly resurfaced video of a frustrated father who paid off his daughter’s student loans only to be told by Senator Elizabeth Warren that he’ll be getting nothing for his efforts is symbolic of the “reckless” attitude of the current Democrat Party.
Flashback to 2020:
Voter: “My daughter is getting out of school. I saved all my money. She doesn’t have any student loans.”
Warren: “God bless, you!”
Voter: “Am I going to get my money back?”
Warren: “Of course not.” pic.twitter.com/8KPshqeFLi
— Philip Melanchthon Wegmann (@PhilipWegmann) August 24, 2022
“I just want to ask one question,” the man says. “My daughter is getting out of school. I’ve saved all my money. She doesn’t have any student loans.”
“Am I going to get my money back?” he asks of the student loan forgiveness plans she had been touting at the time.
“Of course not,” a seemingly shocked Warren replies.
‘Of course not’ is practically the campaign slogan of the Democrat Party to those Americans suffering financially right now.
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Biden’s student loan bailout is not free as some Democrats would hope voters believe. He’s simply robbing one group to bail out another – even those making twice the median household income. That’s something people like Warren and Senator Bernie Sanders used to be disgusted with.
According to the Penn Wharton Budget Model, Biden’s bailout will cost $300 billion, with almost 70% of the benefits going to the top 60% of earners.
The student loan handout is paid for by the average American family through inflation and higher taxes.
Biden is taking $300 billion of our tax dollars and using it to cancel the student loans of people making as much as $125,000 per year.
What message does that send to hard-working people who didn’t go to college or paid off their loans?
It’s wildly unfair.
— Jennifer-Ruth Green (@JenRuthGreen) August 24, 2022
Did you work extra shifts or take a second job to make ends meet? Did you never attend college in the first place? If so, President Biden just gave you the middle finger while he takes your money.
And when you’re wondering if your hard work will pay off or if you’re going to get your money back as a reward just remember – Of course not.
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