“Some think it’s too much,” Mr. Biden said when he announced his decision, noting the outrage from Republicans and some Democrats. “Some think it’s too little. But I believe my plan is responsible and fair. It focuses the benefit on middle-class and working families, it helps both current and future borrowers, and it will fix a badly broken system.”
The long-delayed move has drawn fierce criticism from Republicans, who describe it as a costly giveaway to many who do not deserve it, including families making as much as $250,000 a year. It has also ignited an intense debate about the economic consequences, with Lawrence H. Summers, the Treasury secretary under President Bill Clinton, warning that it will “contribute to inflation,” and Jason Furman, an Obama economic adviser, calling it a “reckless” idea that will add a “half-trillion dollars of gasoline on the inflationary fire that is already burning.”
The White House and some outside economists, including analysts from Goldman Sachs, say the debt relief will have almost no effect on inflation because it will coincide with the resumption of loan payments for all borrowers, after a nearly three-year pause for the pandemic.
Mr. Biden’s deliberations on the student loan issue underscored his reluctance to fully embrace the progressive agenda of his Democratic rivals during the 2020 presidential primaries. But they also revealed his willingness to change his mind and his desire to be seen as an advocate of the middle class.
As he finished making the announcement on Wednesday, Mr. Biden was asked by a reporter whether it was fair to those who had already paid back their student loans.
“Is it fair to people who in fact do not own a multibillion-dollar business if they see one of these guys give them all a tax break?” Mr. Biden snapped back, referring to Republican tax cuts in 2017. “Is that fair?”
Source Article from https://www.nytimes.com/2022/08/26/us/politics/biden-student-loans.html
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