Obama Economist Attacks Biden’s Decision
Even an Obama economist is criticizing this plan, which is definitely not a good sign. We must pray for our economy and taxpaying Americans.
From Daily Caller. Former Obama administration economist Jason Furman took to Twitter Wednesday afternoon to criticize President Joe Biden’s plan for student loan forgiveness.
The White House released an announcement Wednesday declaring that individual borrowers who earned less than $125,000 per year (or $250,000 for married couples) could expect $20,000 dollars of debt relief if they were Pell Grant recipients, or $10,000 if they were not. Furman, former Chairman of the Council of Economic Advisers under President Obama, argued in a Twitter thread that the policy would lead to a small increase in inflation, but also criticized the plan for encouraging further increases in the cost of education, further borrowing and for future students to expect debt forgiveness….
Furman went on to argue that the estimated impact of cancelling about $20,000 in student loans per student would increase inflation by 0.2% to 0.3%, nearly doubling an estimate he made Tuesday evening on Twitter, which in turn cited an estimate by the Committee For A Responsible Federal Budget (CFRB) based on a $10,000 debt cancellation. Furman argued that his initial estimate and that of the CFRB needed to be increased to reflect the new expected amount of loan forgiveness.
The CFRB predicted that $10,000 of forgiveness would cost roughly $230 billion, consuming an overwhelming majority of the estimated $275 billion in deficit reduction from the first 10 years of the Inflation Reduction Act.
Furman stressed that while he characterized the impact the policy would have on inflation as a “small” increase, that the cost would have to be passed on to taxpayers either through “higher taxes or lower spending….”
Share your prayers for the national economy below.
(Excerpt from Daily Caller. Photo Credit: Getty Images)
Partner with Us
Intercessors for America is the trusted resource for millions of people across the United States committed to praying for our nation. If you have benefited from IFA's resources and community, please consider joining us as a monthly support partner. As a 501(c)3 organization, it's through your support that all this possible.
Thanks for Praying!