The President “forgave” $300B in student loan debt this week. If you peel back the layers of the onion on this student loan forgiveness, it becomes even more apparent that the Federal Government has lost its collective minds and has abandoned the Constitution. Here are six layers to the student loan forgiveness onion:

Layer 1: It is an astonishing moral hazard. People are being paid for failing to live up to their obligations, while the people who are going to fund it had nothing to do with it, including people who faithfully paid back their own student loans, people who worked their way through college without loans, people who never even went to college, veterans who earned education benefits by fighting for their country, and people who make less than the $125K that is the threshold for loan forgiveness for others.

Layer 2: Where is the $300B going to come from? The government is already spending more than it takes in. So, more money will be printed, which will mean more inflation, which is a regressive tax that affects poor people more than rich people.

Layer 3: By what authority was the President able to do this? I’ve read the Constitution at least one hundred times, and there is not a word in it that authorizes such an action. This ought to make the blood of every American run cold. One man in our country (the President) took it upon himself with the stroke of a pen to transfer $300B from some people to others, even though it is the responsibility of Congress to generate all spending bills. And no one in the rest of the Federal Government is stopping him.  The Presidency is becoming a dictatorship.

Layer 4: To make the point in Level 3 even more painful, this is purely an act of vote buying by the President. This one man took $300B of our money to buy 27 million votes at the cost of $10K+ per vote. Is your blood running any colder now?

Layer 5: The Federal Government was actually the culprit in the student loan disaster of the last two decades. In 2005, Congress passed a law that made student loans exempt from bankruptcy. Now the rest of us are paying for that reckless decision.

Layer 6: The President’s unconstitutional act does nothing to solve the actual problem. Despite this week’s “forgiveness”, the same student loan disaster continues. Nothing has changed. Another “forgiveness” will necessarily happen again. Nothing was done to fix the high cost of education. Nothing was done to change the perverse incentives that lead students to get useless degrees that do not lead to productive employment. Nothing was done to screen out loan candidates who will be unlikely to pay the borrowed money back.  Nothing was done to verse the misguided legislation of 2005.

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