Jason Furman, the former economic adviser to the Obama administration, took to Twitter on Wednesday afternoon to blast President Joe Biden for his student loan handout, Fox News reports.
Furman did so in a lengthy Twitter thread, in which, at one point, Furman referred to Biden’s plan as “reckless.”
“Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless,” Furman wrote. “Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse.”
By the end of his Twitter thread, Furman listed just about every objection imaginable to Biden’s student loan handout, including that it will benefit individuals who don’t need such a benefit, i.e. individuals who will end up in high-income brackets.
At another point, Furman wrote:
There are a number of other highly problematic impacts including encouraging higher tuition in the future, encouraging more borrowing, creating expectations of future debt forgiveness, and more. Most importantly, everyone else will pay for this either in the form of higher inflation or in higher taxes or lower benefits in the future.
Furman finished off with:
Finally, it’s not obvious to me that this is reasonable for a President to do unilaterally. A number of lawyers (and political leaders) have argued inconsistent with the law. Even if technically legal I don’t like this amount of unilateral Presidential power.
Biden’s student loan handout
Furman’s Twitter thread came not long after Biden announced his student loan handout plan, which is being carried out not through Congress but with1 executive action.
Under the plan, a borrower could get up to $10,000 of his or her federal student loan debt canceled and up to $20,000 canceled if the borrower is a recipient of a Pell Grant. All that is required is for the borrower to be earning less than $125,000 per year or less than $250,000 per year for a married couple.
Biden on Wednesday also announced that he has extended the moratorium on federal student loan repayment through Dec. 31.
Biden responds to critics
Ever since announcing the student loan handout, Biden and the White House have been forced onto the back foot as a result of all of the criticism.
The truth of the matter is that, no matter how the administration tries to spin it, Biden’s plan is only going to benefit a few at the expense of everyone else.