Economic Update: Professor Wolff on Student Debt


The next update has to do with this perennial
crisis that is only getting worse. The crisis of student debt, which is now totaling, in this country, over
1.5 trillion dollars. More than all credit card debt. I mean, it’s extraordinary. But there’s new research that comes from CNBC,
and from Market Watch, and several other sources, about the consequences of student debt. Listen to these studies and what they show. The level of debt is causing young people,
who carry that debt, students, to either postpone or forget about marriage, to either postpone
or forget about having children, to either postpone or forget about buying a home. And you know something? All of those things have enormous social but
also economic costs in the United States. Home foreclosures are now increasingly connected
to student loans. They can’t cover, the young folks, the cost
of a house and the cost of their student loans. And so they are loosing their homes. Here is what the economic conclusion is. It’s irrational, in our capitalist system. The losses that are being suffered as a consequence
of student debt are greater than the profits earned by the colleges which is why the students
have to borrow to go, because it’s so expensive. It would be more rational to lose the profit
for the private corporations cause that’s less than the social costs of having student
debt. You know, that reminds me of prisons. Turns out it costs more to put a human being
in jail for a year than it would to give him or her a decent job, paying 35 grand a year,
because it’s more expensive to put them in a place from which they never recover. And from which society does not recover either. The irrationalities of the system are mounting
and they’re all around us.

4 Comments

  • This is the only way to force change,let it continue to grow until it chokes the system, you can not have a thriving capitalist society where many of its participants are so far in debt that they simply can not consume the goods that the market produces. in time this will doom the economy and the debt will have to be written off. Millions of empty homes, unsold cars, unsold goods, a reduced workforce, less people getting married and having kids, higher crime, this all in the next 2 generations all will result in devastating blows to capitalism and only push people further into embracing socialism. So its in the smart capitalists literal interest to forgive these debts and convert these students into cyclical consumers.

  • This is a growing problem. I hear these things he is talking about with my friends. How do we solve this issue?

  • Bernie Sanders 2020. reduce student loan debt

  • Surely only the 1% are in favour of this madness!!

Leave a Comment

Your email address will not be published. Required fields are marked *