Today president Obama used his address to talk about the impending student loan interest rate hike that will happen if Congress refuses to act by July 1st. It’s hard to imagine that anyone in Congress would think that doubling interest rates for recent college graduates could be good for the economy. If people are suddenly making larger payments on their loans then that is less money that will be spent in the economy. How can Republicans possibly argue against taking action here? It would be like they want the economy to do worse — oh wait.
Personally, I’d like to see the government do something truly liberal and forgive all outstanding student debt. Jubilee! It would be an incredibly stimulative act if millions of twenty-somethings around the country suddenly had a little extra money each month. I’m sure there are very good reasons not to do something like this, but one of them should not be: “I had to pay off my student loans, why shouldn’t these kids?” I hate that argument.
Previous weekly address here.