Posted on 07/03/2023 10:03:57 AM PDT by Oldeconomybuyer
WASHINGTON -- The Supreme Court's decision striking down President Joe Biden's program to forgive student loan debt for about 43 million people could hurt not just individual borrowers, but also the U.S. economy, as billions of dollars of consumers' disposable income are taken out of circulation.
The ruling could spark a "modest headwind" against economic growth, Bernard Yaros, an economist at Moody's, a financial risk assessment firm, told ABC News.
"None of this is enough to tip the economy into a recession," Yaros said. "But this is no doubt a hit."
Thomas Simons, an economist with the equity research firm Jefferies, takes a more pessimistic position than most: he believes that the resumption of loans could be the "tipping point" that begins a recession.
"The consumer was running out of gas already, and they weren't going to be able to maintain their current pace of consumption," Simons said. "This is an additional straw on the camel's back. And it might be the one that puts us into a recession."
This modest economic shock is not expected to be uniform for Americans of different incomes. The pandemic-era pause in student loan repayment made long-term borrowers much more likely to put down a mortgage on their home, improve their credit scores and reduce late payment on other bills, research from the Jain Family Institute has found. Female and minority borrowers were the largest beneficiaries of the measure, as those groups were the most likely to struggle with growing student loan debt, the report added.
(Excerpt) Read more at abc7chicago.com ...
Oh, and I thought it was the inability to pay back the loans obtained to pay for a useless education that was the cause. My bad.
The horror, the horror.
Starbucks and DoorDash to be hardest hit.
So if no one pays back anything they owe the economy would be booming with new spending? I am all for it if credit is completely eliminated. You pay cash or get nothing going forward.
Crybaby grifter bums.
And no borrowing the cash or government handouts. You earning it is the only way to spend it.
Just imagine how much “economic headwind” is caused by Biden failing to “forgive” every home loan, auto loan, boat loan, rv loan, and every other debt. Poor Biden is trying sooooo hard but he just can’t get a break.
That should slow down inflation to some extent.
I dont see how it changes anything. They werent paying anyway.
How much does Mr. Simons owe on his student loans, and did he take a loan repayment holiday for the past three years?
Let me get this straight-now they’re saying making people meet their financial obligations is going to hurt the economy?? Must be the new Bidenomics.
the damned communistic propaganda uses every imaginable angle
but i am still happy that Biden was stopped from giving away MORE BILLIONS of our hard-earned tax money to (excluding anyone who got disabled, etc.) a bunch of deadbeats. The rest of us (a few years ago anyway) were HAPPY that the banks trusted us with student loans when we had almost zero income and most of us had not even established ourselves as self-sustaining members of society. We paid back every penny with... well, almost... joy...at least great gratitude that we were trusted to repay funds we could not possibly show the capacity to pay back when we asked for the $$
These economists must have got their degrees from the same college as AOC. More money in the pockets of the hard working people that earn it is a good thing for the economy—the Biden regime printing more money to pay for the non-productivity of deadbeats is not.
What bunch of crap. Let me get this straight. We don’t have to borrow a trillion dollars so we are going to loose billions. Give me a break. Are people in America really that stupid.
Perhaps we could quit sending untold billions to Ukraine to keep from a recession that is on progress.
These people signed the dotted line on their school loans. They are deadbeats unless they pay on their loans. Just because the have been paying their other bills means nothing because they are deadbeats on a large debt they signed up for.
Hard working people who did not sign up for this kind of debt should not have to suffer hardship to pay for people who benefitted from those loans in order to make their lives even easier..
If Biden will pay for it, I’ll get a vacation home in Florida and an RV. That would help the economy.
The idea that college is a multibillion dollar industry should send people running to audit and pare down colleges and then demand a cut back in tuition to at least inflation rates, which they are not
Kids just out of schools are not going to be the ones to protest this.
Academia has a lot of chumps taking billions with interest from kids
It’s disgusting
And the Supreme Court ruling on Affirmative Action Admissions will save even more money via improved national productivity by admitting students on merit instead of race.
Somehow taxpayer money being wasted or spent does not harm the economy and only helps it?
I never knew. /s
If they want to sue, sue the schools for the outrageous tuition and worthless degrees.
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