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Obama tries to make the case that debt is bad? But still good for government

August 22, 2013
College Funds by Junior Libby

College Funds by Junior Libby

This morning President Obama gave a speech in Buffalo, NY, about the rising costs of college education. Most of it was full of divisive class-based language and standard Keynesian talking points. There was one ironic portion in his speech though. President Obama kept mentioning how bad debt is.

Early in the speech he took at a jab at fiscal conservatives for “not wanting to pay the bills”. He of course has always taken the stance that government debt is not bad; and thus he doesn’t think the government should do anything to reduce the bills owed by the government. His presidency (just like that of Bush before him) is laden with debt and there is little regard for fiscal restraint.

Now we come to Obama’s speech today. He tries to make the case that debt is bad and is holding back the middle class. He even tried to get sympathy because the law school student loans taken out by him and his wife weren’t paid off until just before he became a Senator? It was  hard to follow his logic about how his personal student loan debt held him back? I agree debt is a bad thing, but the same logic he used could be changed to show that student loan debt help him achieve becoming a Senator and then President. That was just a bad talking point Mr President!

Many times during the speech Obama said debt is burdening people when they get out of college. One of his ‘fixes’ to this debt is by sending more people to college? Again, this does not make sense. Currently tuition is running high because of federal student aid programs. Colleges (both public and private) set their tuition rates to take maximum advantage of these student loan policies. If Obama truly wants to reduce the overall debt of college students he would support repealing all federal intervention into the student loan industry. That single step would reverse the trend of skyrocketing costs of higher education. Lower tuition would then mean students need to borrow less money.

Sadly the speech today was not about reducing the cost of education (as he claims). It is not even about reducing student debt (another claim of his). This speech was about his wish to expand the Department of Education and truly nationalize higher education in the United States. Multiple times he mentioned how DOE needs more powers to rate and support “good” colleges. That approach would do little but increase the debt load of the taxpayers. But that may be his true goal. Instead of debt being placed upon people who chose to attend college he wants to increase the debt load on all Americans. Hopefully Congress will not follow his lead.

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