Debt

  • 02.08.18

    The Sanders Institute Talks: Student Loan Debt

    Dr. Jane O'Meara Sanders sits down with Sanders Institute Founding Fellow and economist Dr. Stephanie Kelton to talk about Dr. Kelton's new report on the macroeconomic effects of student loan debt cancellation in the United States....

    Dr. Jane O'Meara Sanders sits down with Sanders Institute Founding Fellow and economist Dr. Stephanie Kelton to talk about Dr. Kelton's new report on the macroeconomic effects of student loan debt cancellation in the United States.

  • 02.06.18

    The Macroeconomic Effects of Student Debt Cancellation

    Among the more ambitious policies that have been proposed to address the problem of escalating student loan debt are various forms of debt cancellation. In this report, Scott Fullwiler, Research Associate Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum examine the likely macroeconomic impacts of a on...

    Among the more ambitious policies that have been proposed to address the problem of escalating student loan debt are various forms of debt cancellation. In this report, Scott Fullwiler, Research Associate Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum examine the likely macroeconomic impacts of a one-time, federally funded cancellation of all outstanding student debt.

    The report analyzes households’ mounting reliance on debt to finance higher education, including the distributive implications of student debt and debt cancellation; describes the financial mechanics required to carry out the cancellation of debt held by the Department of Education (which makes up the vast majority of student loans outstanding) as well as privately owned student debt; and uses two macroeconometric models to provide a plausible range for the likely impacts of student debt cancellation on key economic variables over a 10-year horizon.

    The authors find that cancellation would have a meaningful stimulus effect, characterized by greater economic activity as measured by GDP and employment, with only moderate effects on the federal budget deficit, interest rates, and inflation (while state budgets improve). These results suggest that policies like student debt cancellation can be a viable part of a needed reorientation of US higher education policy.

  • 09.23.17

    Why We Must Raise Taxes on Corporations and the Wealthy, Not Lower Them

    When Barack Obama was president, congressional Republicans were deficit hawks. They opposed almost everything Obama wanted to do by arguing it would increase the federal budget deficit....

    When Barack Obama was president, congressional Republicans were deficit hawks. They opposed almost everything Obama wanted to do by arguing it would increase the federal budget deficit.

  • 09.07.17

    Why We Should Abolish the Debt Ceiling

    Most modern democracies don't have debt ceilings. Raising the debt ceiling is always a political football, used by whichever party is in the minority to extract concessions from the majority party or from the majority party's president....

    Most modern democracies don't have debt ceilings. Raising the debt ceiling is always a political football, used by whichever party is in the minority to extract concessions from the majority party or from the majority party’s president.

  • 08.24.17

    5 Facts About Student Loans

    This article from the Pew Research Center describes 5 facts about student loans in the United States: 1. About four-in-ten adults under age 30 have student loan debt. 2. The amount students owe varies widely, especially by degree attained. 3. Young college graduates with student loans are more likely than those ...Read More

  • 12.01.16

    Student Loan Debt By State By School Report 2016

    This article from LendEDU breaks down student loan debt in the United States by state. "Student debt at graduation differs rather dramatically by college and by state. In our report we analysed financial aid data from over 1,000 colleges and universities in the United States... We've broken down the student loan d...Read More

  • 11.12.14

    How the U.S. Government Could End the Student Debt Crisis Today

    This article from Yes! magazine looks at student loans in the United States from a different perspective. Student loans are an increasingly large issue in the United States "In the United States, student loan debt has passed the $1 trillion mark. The burden is now becoming increasingly heavy for middle-class and ...

    This article from Yes! magazine looks at student loans in the United States from a different perspective. 

    Student loans are an increasingly large issue in the United States "In the United States, student loan debt has passed the $1 trillion mark. The burden is now becoming increasingly heavy for middle-class and wealthy students, but especially for those from lower-income backgrounds." This article argues that it does not have to be.

    "At a basic level, the U.S. federal government doesn’t need to scrimp and save to fully fund higher education. It can just spend money rather than lend it, without incurring any significant negative economic consequences."

    This concept stems from an economic theory: "Many economists known as “deficit owls ” have argued for decades that the U.S. federal government doesn’t need tax revenues or bond payments in order to spend money on education or anything else. Rather, the true limits to federal spending are the availability of real resources and the stability of prices."

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