Two days ago, Forbes ran an article about Senator Elizabeth Warren (Dem-MA) wants to cancel student debt in the next stimulus program. However, no where in the piece did the writer reveal how much student debt was outstanding.
Further, nothing in the article said anything about what to do about the students who have already paid back the money they borrowed. House Speaker Nancy Pelosi and other Democrats also support the idea. It’s all about “free stuff” from fedgov.
And, Warren wants to make public college tuition-free. No estimates of that cost were discussed in the article.
Student debt is somewhere near $1.5 trillion. Forbes estimates it to be $1.56 trillion; the Federal Reserve Bank of New York says its lies just short of $1 trillion.
As for the cost of “tuition-free college educations,” that would be $79 billion a year, according to the Department of Education. That’s a year. Four years would put it a $316 billion. And, it would go on forever – until fedgov goes bankrupt.
For the next stimulus program, Pelosi wants $3 trillion in her HEROES Act; Mitch McConnel has said that $1 trillion is his number. Probably somewhere in the middle and closer to $3 trillion. More recently, Trump has supported a payroll tax cut, which, of course, would reduce fedgov revenue and result in a still larger federal deficit.
Because of the likelihood of still more stimulus spending, gold and silver opened higher today. Gold above $1840 and silver above $21. And, the gold/silver ratio dropped to 87, which should give silver investors renewed confidence in their purchases.