Prediction markets have proven to be an effective way to predict the outcome of events. Similarly, one can get an accurate assessment of the political ramifications of President Joe Biden’s student loan donation by observing the reaction of vulnerable Democrats in Congress.
Nevada Sen. Catherine Cortez Masto, who has been a reliable footsoldier for the White House and faces a tough re-election battle, has finally found a political issue on which she challenges Mr. Biden. “I disagree” with the president’s decision, she said in a statement, “because it does not address the fundamental issues that make college unaffordable.”
NBC News noted that “When President Joe Biden announced student debt relief…his allies celebrated.” He added, “But a string of Democrats in tight races across the country don’t want much to do with it.”
The news got worse in the days following the announcement. White House officials claimed their latest giveaway would cost $300 billion. On Friday, however, analysts of the nonpartisan budget model at Penn Wharton said the cost was at least $518 billion in loan forgiveness alone, with a total price tag of up to $1 trillion. Beneficiaries will also be exempt from income tax on the amount of canceled debt.
National Review Online’s John McCormack puts this in jaw-dropping perspective.
“A trillion dollars — $940 billion to be precise — was the official 10-year cost estimate of Obamacare by the Congressional Budget Office when Congress was debating the massive expansion of government in 2010,” he said. he wrote on Friday. “Now President Biden may be taking so much money from American taxpayers with one lawless stroke of the pen to deliver a bailout package that will massively benefit Democratic voters months before an election.”
Meanwhile, the Department of Education is at sea as it tries to figure out how it will all work despite the president having had 18 months to work out the details. Axios reported that the government’s financial aid website struggled under the traffic it received after the announcement and that many observers believe the agency will struggle to deal with the intricacies of the relief. debt. The administration does not know how many Americans will be eligible or even when they can expect to see the ledger adjusted.
This all has the makings of another Biden fiasco (“No one is suggesting there is runaway inflation on the way, no serious economist.”). Sen. Cortez Masto and other Democrats may run for the hills, but the Biden economy they helped create remains wrapped around their ankles like a leaden weight.