Absent major student-loan reforms, 'my preference would be no relief at all': Obama economic adviser

[Yo_Mama_Been_Loggin]

Jason Furman

President Joe Biden’s student-debt relief plan could fuel inflation and benefit the well-off, Jason Furman, a top economic adviser in the Obama White House, said in an interview with MarketWatch on Saturday.

“The Hippocratic Oath is do no harm,” Furman said at the Jackson Hole Economic Symposium in Wyoming. “It’s hard to argue that whatever number of hundreds of millions of dollars here isn’t doing harm to the central project we have as a country, which is dealing with inflation.”

-snip-

Concerns debt relief would lead to dangerous levels of inflation are “bizarre”, Nobel Prize–winning economist Paul Krugman wrote in the New York Times. “So bizarre that I can’t help suspecting that in many cases they’re coming from people who would rather take a cheap shot than lay out their real reasons for opposing this program.”

In the interview, Furman reiterated concerns other than inflation he has with the plan, including that it could benefit borrowers with high incomes. “If income limits had been half as high, it hadn’t applied to professional schools, I would have been half as concerned as I was.”

https://www.marketwatch.com/story/absent-major-student-loan-reforms-my-preference-would-be-no-relief-at-all-obama-economic-advisor-jason-furman-says-11661617946

Another perfectionist.

[TheProle]

1. His predecessor has said the same

https://www.newsweek.com/larry-summers-art-laffer-agree-biden-student-loan-plan-bad-inflation-1736125

[MacKasey]

2. People are not getting a check for $10,000, correct?

Their loan is being reduced by $10,000, which may slightly lower their monthly payment or if the loan was smaller they could pay it off quicker.

But, when all is said and done, the monthly economy will not change that much, but will put some extra cash in the people who keep the economy running (M1 number)

I was not a fan of Ross Perot, but we need simple graphs or a cartoon to explain these processes to ordinary people so when the nut jobs make up their stories, we can say malarkey.