Journal Stargoat's Journal: Student loans are perpetuating the mortgage crisis 5
The massive amounts of Student Loans are perpetuating the mortgage crisis. If we assume that debt is a substitute for debt, then the large numbers of student loans are driving out mortgages. Debt is clearly a substitute for debt, as loans are not made when a large amount of debt exists. There are many people graduating from college with large quantities of debt that they are not allowed to default on. These people have no way to purchase a home. This shrinks the population that can buy homes, thereby reducing demand. When demand is reduced and supply is static, then the price of the good will fall. In this case, the value of homes declines.
Basically, young people have their mortgage debt replaced by student loan debt.
The solution is to increase government subsidies of university education. Wiping out current debt will only contribute to the moral collapse of the nation by creating yet more moral hazard. The US Government, by jacking up the price of education, jacking up the price of student loans (through not allowing default), and essentially requiring student loans, has effectively destroyed Generation Y.
Basically, young people have their mortgage debt replaced by student loan debt.
The solution is to increase government subsidies of university education. Wiping out current debt will only contribute to the moral collapse of the nation by creating yet more moral hazard. The US Government, by jacking up the price of education, jacking up the price of student loans (through not allowing default), and essentially requiring student loans, has effectively destroyed Generation Y.
Why is Education (Score:2)
...which should self-replicate mutifold, managed like a commodity of limited supply?
The fault lies partly in the hierarchy of academic distinction - and the conferred entitlement of higher degrees.
This was inherited from the priesthood. It is one of the aspects of our society that is most contemptible and contrary to egalitarian impulse. No cap and gown ever made a sage of a donkey - and those are in plentitude.
Without an economy of false scarcity, doctoral achievement - otherwise commonplace - would not
Re: (Score:1)
If the internet is any guide, ignorance replicates at least as quickly as education.
Re: (Score:2)
Well, let's assume that only a handful of professors are really awesome at what they do. These men should be able to charge more for educating people. The same is true for the various other grades of professors, with the number of professors naturally increasing as the grades decline.
The same is with students. Only a certain number of students possess the raw IQ to be a successful doctoral student. This is a good reason to have scholarships.
Of course, there should be a correlation between an excellent e
Someone explain this to me (Score:2)
Re: (Score:2)
Student loans are not particularly safe. Despite the fact that you cannot declare bankruptcy on them, as Charlie Brown said, "There is no problem so big it cannot be run away from."
That being said, the government is offering student loans at 7 or 8 percent (I cannot be bothered to look right now). Education is being made too pricey, and it necessarily must impact the cost of housing. We are SHRINKING THE POPULATION and thus shrinking the economy. Hoover did the same damn thing during the last depression