student loans – monoblogue

The trouble with populism

Anyone who has read here over the last 16 years or so can guess that, most of the time, I vote for the Republican candidate in a electoral race. But there have been exceptions over the years, especially when I have a Libertarian or Constitution Party candidate I like better, and 2020 was one of them.

When I endorsed for Delaware’s U.S. Senate race 18 months ago, I noted:

(Lauren Witzke) would be an almost automatic choice except for two places I vehemently disagree with her: one being the idea of incentivizing marriage and family through government policy (as opposed to that of merely not penalizing it) and the other being her stance against right-to-work as some sort of appeal to Big Labor voters – never mind that jobs tend to accrue to right-to-work states when all other conditions are substantially equal. Those are two big strikes against her, and her reaction to RBG’s death was very nearly strike three – somehow she managed to foul it off and stay alive.
“For Delaware 2020,” monoblogue, October 25, 2020.

Thanks to the Libertarians running a right-leaning candidate I voted for Nadine Frost instead, and it turned out I didn’t cost Lauren the race by doing so; in fact, she trailed all four other GOP statewide candidates and I don’t think it was because Chris Coons is all that popular.

The allusion to RBG upon her passing was really controversial, but in looking that gem up I found this quote from Witzke:

“Well the truth of the matter is that the Delaware GOP keeps losing and they think they can beat the liberals by becoming more liberal and that’s not gonna be the case, this is war.”
Roman Battaglia, Delaware Public Media, “GOP Senate candidate retains party backing, despite condemnation of social media posts,” September 21, 2020. Quoting Lauren Witzke.

Perhaps it’s a good thing Witzke hasn’t thrown her hat into the House race (since there’s no Senate race this year) because then how do you explain “becoming more liberal” with this social media complaint?

In full support of Student Loan Forgiveness:

Having crippling student loan debt makes it as difficult as possible for young people to buy a home, get married, and have children. An entire generation has become a slave to debt, signing their lives away at 18-not knowing that the US Government would import the third world to compete with them and push wages down in the workforce.

If the GOP was really the “party of the working-class” they would get behind this and get this done, in addition to seizing college endowments to prevent it from happening again.
Lauren Witzke, Social media post, April 28, 2022.

Never mind she got slaughtered in the comments, I have to say my piece too.

There’s a difference between conservatism and populism. One big worry I had about a Trump presidency early on was that the GOP would be pushed in a more populist direction, but he generally managed to straddle the line well and didn’t let his populist side out too much.

But in Trump’s term, he made two moves toward canceling student loans: in September 2019, before the CCP virus struck us, he signed an executive order that canceled student loan debt for permanently disabled veterans, which he estimated would save veterans “hundreds of millions” of dollars. And of course, during the pandemic Trump began the process of pausing student loan payments and interest that Joe Biden has continued, saving an estimated $90 billion for borrowers.

A pause of payments and interest, though, is a lot different than wiping out their student loan debt. And it wouldn’t necessarily help the working class, according to House minority leader Kevin McCarthy. Bear in mind that graduate degree holders – who don’t tend to be working-class – hold 56% of the outstanding student loan debt, so they would benefit the most from forgiveness.

It was a long, long time ago but I was one of those who took out student loans to go to college and I remember handing Sallie Mae about $120 or so a month beginning six months after graduation. I’m not going to say it was easy or that I always paid them on time, because student loans are a little like medical bills: hard to collect because you’re not taking away the ER visit for the flu, the knee replacement, or the bachelor’s degree if the payments are late like you can for a car or a house. But, over the span of fifteen years and a couple forbearances and refinances, I got my student loans paid off. Even as liberal as we considered Bill Clinton to be back in that era of my student loans, the idea of forgiving them for the masses was not seriously considered.

Aside from the giant issue with seizing college endowments – don’t you love it when government confiscates private property? – there are three huge problems with what Witzke and much of the other regressive community is backing.

First off, I’m still looking for the place where it says our federal government should have a role in education like this. One thing that disappointed me in the otherwise relatively stellar Reagan legacy is that he couldn’t convince the public to warn Congress that the Department of Education was really unnecessary, and maybe they need to think about defunding it if they wanted to stay in Congress. Reagan was a “Great Communicator,” but not so much a lobbyist for creating a public outcry for ridding us of an unnecessary Cabinet post. More recently I was hoping Betsy DeVos would help that process along, but, alas, Donald Trump couldn’t compete with the votes purchased with Zuckbucks and…well, you know what happened. Then again, you read what Trump did with student loans in the grafs above so I don’t believe he was really down with the struggle, either.

Secondly, it further erodes the idea of commitment. We already have issues with the concept when it comes to marriage and relationships in a culture where celebrities seem to be having a contest as to who can have the highest number of marriages and divorces and the most kids out of wedlock, with our society either cheering them on (as in “you do you”) or just turning a blind eye. This is how our culture has devolved since the era of our grandparents; an era which Witzke seems to want to restore – she uses the policies of the nation of Hungary as an example* – but this time through generous government subsidies that our ancestors didn’t need and, out of pride, would have likely refused anyway. Having the government step in and say, “yeah, we’ll pay off the student loans you took out for your womyn’s studies degree” just feeds the entitlement society we’ve become. Student loans, then, go from a hand up to just another handout.

Finally, on the college front, the biggest part of the reason those ivory towers have become so fat and happy financially these days – with those endowments that Witzke covets for government seizure in the millions or even billions of dollars – is that they have raised tuition and fees with impunity knowing that the government makes student loans widely available for any warm body they accept. Students don’t even have to get a degree, but the college gets paid for spouting off whatever the woke flavor of the day is and now the taxpayers will be footing the bill. If it were the colleges having to come up with the coin for the failures of their students, you better believe they would be more prudent and careful with who they let in and what is taught, don’cha think? It may make ditchdiggers out of all those “diversity, equity, and inclusion” department hires but the world needs honest labor, too.

There’s been a political cartoon turned meme making the rounds for awhile that makes the point more succinctly than I did, but I’ll go with a paraphrase: You took out a student loan, pay it back. I didn’t say it was easy or without sacrifice, but honor a commitment for once.

(*) I will give Lauren credit in that she writes well in an Ann Coulter vein. But I still disagree with her on this student loan thing.

Losing the middle class

Most of my readers know that, after months of speculation as to his fate, former Delaware Senator and Vice-President Joe Biden entered the 2020 tournament for the Democratic presidential nomination a couple weeks back.

I had the opportunity to find this out a little in advance as I’ve been on his American Possibilities e-mail list for awhile. Of course, that’s morphed into the Biden 2020 mailing list so now I get regular missives from him on a variety of topics. Most of them I ignore, but this one begged for a counterpoint. I’ll pick it up after the formalities and omit the appeals for money as I go point-by-point. He’ll be in italics and I’ll be in regular font since it works better than a blockquote.

Michael, this country wasn’t built by bankers, CEOs, or hedge fund managers. This country was built by the American middle class.

It’s nice that you know my name, Joe, and in many respects you are correct. But most “bankers, CEOs, or hedge fund managers” were once members of the middle class – they just used hard work, talent, and aptitude to rise above the rabble that may not have had those same priorities, abilities, or desire to succeed. And the country needs ditch-diggers, too: there’s no shame in hard work. America was built by this team effort.

But today, the middle class is under attack, and too many families are being left out. They are working longer hours for less pay.

That’s why I’m calling for a $15 minimum wage — so we can build an economy where everyone has a chance to get ahead. (Emphasis in original.)

An hour is really still 60 minutes, but I get the point. But it seemed to me that median wages were increasing faster than inflation was since your successor took office, and government figures bear me out. They also prove that the Trump administration is succeeding much better than your old boss in addressing the situation.

I’ll grant the numbers come in at the tail end of the Great Recession (on the cited chart they begin in 2010) but in constant dollars the time period from 2010-2016 saw a net increase of just $5 a week during that six-year period. Moreover, while women’s earnings increased $10, men’s earnings actually declined $2 a week in constant dollars (based on 1982-84.)

Conversely, under Trump men have increased by a full $10 in nine quarters and women are up $2. Overall, the numbers are up $6 despite a hiccup at the end of 2017 that saw a sharp decrease in all categories. In 2018-19 men are up $11 a week, women $4 a week, and overall we have gained $10 a week. (Remember, that’s in 1980’s-vintage constant dollars. In actual 2018-19 terms the numbers since the end of 2017 are $51 a week for men, $29 for women, and $44 overall. A full $20 of that overall figure came upon the enactment of the Trump tax cuts between 2017Q4 and 2018Q1.)

Given that the average wage is now $23.31 an hour (and has risen about $1.50 since Trump came into office): I think the middle class is doing pretty well in this economy. But let’s soldier on:

And Michael, I’m asking you to stand with me on this, Sign your name to call for an increase of the national minimum wage to $15:

No, you’re standing by yourself on this one, Joe. Aren’t I already on your mailing list anyway? (By the way, that was originally a link to the money page.)

The middle class isn’t a number — it’s a set of values. Owning your own home. Sending your kids to college. Taking care of your geriatric parents.

The cost of all of these things is rising. And wages? Those aren’t.

We need to fix that. (Emphasis in original.)

Didn’t I just prove that wages were rising? Surely not everyone has an equal bump in pay, but as a whole they are.

And let’s talk about these milestones, shall we? One huge issue for the Millennials is the student loan debt they carry thanks to a society (aided by government regulatory policies at all levels) which requires a college degree for most of the desirable jobs. But not every degree is created equal; hence you get the proverbial womyn’s history majors working part-time as a barista at Starbucks while many engineering majors make serious coin. (Moreover, a large percentage of STEM majors are foreign students – look at a list of graduates from any engineering program and you won’t see a lot of common American names.)

And why is college so expensive in the first place? Conveniently, this chart happens to go back to my senior year of college and is in constant 2015-16 dollars – so you can see how the cost has grown so much faster than inflation. It’s been almost twenty years since I set foot on the campus of my alma mater but even in that fifteen years between graduation and my last visit there was a LOT of building on that campus – mainly in the category of student amenities such as a recreation center and complete renovation of the student center. Yeah, there were a couple new academic buildings (and they were gutting and expanding the architecture department building at the time) as well but that’s not what really attracts the kids.

Add to that the multitude (as in growing at a rate twice as fast as student enrollment) of new administrators – who surely receive an upper-middle-class salary and benefit package – and you have the beginning of a rampant increase in costs.

But the kicker was finalized by your old boss. Once the government shifted from guaranteeing loans – a practice for which the modern incarnation began in the early 1990s as a pilot program under Bush 41 – to becoming the sole provider in 2010 as a codicil to the Obamacare act, schools had no incentive to keep costs in line – why not dip your greedy mitts into that sweet manna of taxpayer dollars and keep everyone working on campus fat and happy? They had their money, so who cared if the government didn’t get theirs? That was on the student!

So the graduates (if they finished at all) have no money for a house, which is why many millions still live at home. And since their Boomer parents seldom put enough away (perhaps because they’re still supporting Johnny and Sally) for retirement and old age – believing Social Security and Medicare would somehow be enough to cushion their lavish lifestyles – those Boomers and their kids got a rude awakening when it was time for long-term care: Medicare doesn’t cover it and Medicaid will help itself to your estate for reimbursement.

Maybe it’s time to reconsider how much the government has already “fixed” for the middle class here? And don’t worry, I didn’t forget about ol’ “Creepy Joe.” Here he is again:

We need to restore the basic bargain for Americans so that if you work hard, you are able to share in the prosperity your work helped create.

To do this, we need to start with paying fair wages from the beginning.

Joe, did you forget that the true minimum wage is zero? Chances are, if you work hard and learn the skills needed to succeed in the workplace, you won’t be a minimum-wage worker for long. Yes, you may have to relocate or do tasks you might think are “beneath” you, but there are still paths to success in America – even in states where the minimum wage is set to the federal minimum.

Honestly, if we wanted “fair” wages we would have no minimum wage. That would be the ultimate in fairness as you are paid what you are worth to the employer. Don’t forget: employers aren’t there to give you a job, they are working to make a profit for themselves. If that doesn’t suit you, there are many opportunities to be your own boss – be cautioned, though, that there’s a much smaller safety net underneath you. But you would definitely “share in the prosperity your work helped create.”

I’m asking you to speak up, with me, and call for a raise of the national minimum wage, as the first step of many to have the back of American workers.

I told you no once, Joe. Get the government off the back of American workers.

This is just the first step. I look forward to sharing more about my plan for America in the future. Stay tuned.

Yeah, that’s what I was afraid of. When your plan consists of rightsizing government to conform to the Constitution – that would be a good first step. Until then, you’re just a guy who’s lived on the taxpayer dime for way too long.

You know, Joe, I was only six years old when you were first elected, and in that interim time I’ve worked in the private sector for thirty years or so. (For about fifteen of those I was paying off student loans – and that was only for about $10,000, plus scads of interest.) You made it all the way to vice-president, and I’ll give you props for dealing with the tragedies in your life. But arguably you have less in common with a working man than Donald Trump does, even though you talk a good game and he’s a billionaire or whatever. Trump took risks and had spectacular failures but he’s signed the front of checks for thousands of employees, too.

And comparing his economic record to that of your former boss – well, I don’t think there are too many who want to go back to that malaise. I know I don’t.

I don’t know what your domestic situation is, but I would be curious: what do you pay your hired help? Hopefully it was more than your charity giving once was.

Anyway, it was nice talking to you, Joe. Good luck in the debates – you’ll need it.

Larry Hogan’s maintaining an O’Malley legacy

By Cathy Keim

So who needs Martin O’Malley when Larry Hogan will carry on his work?

I was astonished to read that Governor Hogan is expanding the You’ve Earned It! mortgage assistance program from the original $20 million to an additional $70 million. (Hat tip: Gwen Cordner.)

The program is aimed at assisting potential buyers, particularly members of the so-called “Boomerang Generation,” who are employed and have good credit but are saddled with student debt that is proving a barrier to homeownership. These young people are more likely to live with their parents than were young people one or two decades ago and they are saddled with significantly more student loan debt than their predecessors.

The student loan debt in America is over $1 trillion dollars and growing. The federal government supports 95% of student loans and is making billions of dollars of profit on them. There is no incentive by the Feds or by the colleges and universities to cut the spigot. As tuition rises each year, the students borrow more money only to find out when they graduate that there are no jobs for them to earn enough to support themselves and pay their loans.

Another neat trick is that you cannot get out of paying back your student loans by going bankrupt. There is no escape. Is it any wonder that young people who are graduating with a national average of $29,000 in college loan debt must live in their parents’ basement because they cannot pay their loans and live independently on a barrista’s salary?

In a Wall Street Journal interview, Dr. Richard Vedder of the Center for College Affordability and Productivity links the tuition increases to “the 50-fold growth in federal student financial assistance programs since 1970. Former Education Secretary Bill Bennett was mostly right when he said federal aid programs enabled colleges to raise tuition fees, helping to fuel the academic arms race.”

Why do so many people need a college degree? Many of the jobs that require a college degree did not require it in the past. We can thank the government for that also. Businesses used to administer tests to see if the potential employee had the skills necessary to fill the position. The government struck down testing as unfair, so many businesses switched to a college degree requirement as a way to screen applicants without running foul of the government.

Over time the value of the bachelor’s degree was diminished and now many jobs require a master’s degree forcing more students into school longer and causing more debt.

This situation is a serious problem for all of us. We need our younger generation to be buying consumer goods, especially cars and homes, to keep the economy humming. They must do their part, even if the government has to step in to “help” them again. It helped them acquire student loan debt and now it can help them acquire mortgage debt.

But the story doesn’t end there. These mortgages must be for homes in a certified sustainable community. And who determines what is “sustainable?” This group:

Sustainable Maryland is a certification program for municipalities in Maryland that want to go green, save money and take steps to sustain their quality of life over the long term. Sustainable Maryland Certified is a collaborative effort between the Environmental Finance Center (EFC) at the University of Maryland and the Maryland Municipal League to replicate the success of theSustainable Jersey initiative throughout the Mid-Atlantic States, beginning in Maryland.

To become a certified sustainable city, the city must have a green team comprised of municipal workers, city leaders/businessmen and diverse citizens. This is a standard tactic to get leaders onboard a project and others will follow because if “Joe” is on it, then it must be ok. The city can apply for tax credits and grants to bring improvements such as bike paths or renovating old buildings. The municipal workers on the green team get paid for their efforts (it is part of their job), but the citizens are volunteers because their hearts are in the right place.

(Note: Salisbury is registered, but not certified yet. Snow Hill and Berlin are certified sustainable cities.)

(Editor’s note: one of the Sustainable Maryland “primary partners” is the Town Creek Foundation, which never met a Radical Green program it didn’t like.)

Once these debt-laden former students are ensconced in their subsidized mortgage home, they will be ready to marry and produce the next generation of liberty-loving citizens. The next generation will be taught in the fully implemented Common Core method, which will ensure that they never hear of their heritage as Americans. They will be assessed and evaluated from pre-school to the workforce. The thousands of data points gathered will ensure that they are nudged gently into the correct attitudes so that they will fit into the new world order. Teamwork and cooperation will be their strong suit while individuality and thinking deeply on any subject will be discouraged.

The water in the pot is almost to a boil. If we don’t jump this presidential election, I fear it will be too late.