Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Debt

The Case for Combining Tuition-Free College with Debt Relief

This week, Bernie Sanders launched his campaign to annihilate all $1.6 trillion in student debt. This far exceeds the amount Elizabeth Warren promises to alleviate ($640 billion). Warren pledges to eliminate up to $50,000 in debts for those making less than $100,000 per year. Those who owe more than $50,000 would still have to pay the remaining balance, and those earning more than $100,000 would receive smaller reductions. By contrast, Sanders vows to eliminate all outstanding debt. Sanders also promises to use federal money to make public colleges and universities tuition-free. Warren’s policy on tuition relies on state governments to provide a large percentage of the funding, and that means that Republican governors and state legislators would be able to refuse to participate, in much the same way that they refused to participate in Barack Obama’s Medicaid expansion. This would create a two-tier system, in which Americans living in blue states would enjoy educational rights denied to Americans living in red states. The Sanders plan is the only plan predicated on the principle that further education ought to be a universal right of all Americans, regardless of where they live or how much money they earn.

But there are those who resist the Sanders plan, arguing that cancelling student debt and providing tuition-free college subsidises economically inefficient behaviour and rewards people who made mistakes. Others argue that debt relief is regressive, because college-educated Americans tend to be higher income than those who did not go to college. I think both of these arguments are wrong. Here’s why.

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Why Italy is in Trouble

Italy finally has a coalition government–consisting largely of Lega Nord and the Five Star Movement, two Euroskeptic populist parties. The new coalition was elected to take Italy in a new direction, but this will prove difficult to do. Italy is a great example of what’s gone wrong in Europe. Let me tell you its story…

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If Donald Trump Wants to Help Puerto Rico, He Should Help It Become a State

President Trump said he wants to help Puerto Rico deal with its debt (though his administration immediately U-turned on this). The territory has been devastated by multiple hurricanes and a long-running economic crisis. But while disaster aid and debt relief would be very good for Puerto Rico, what it really needs in the long-run is statehood. Here’s why.

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What’s Really Going on In Venezuela

Many in the western press are oversimplifying the story about Venezuela, blaming its economic crisis more or less exclusively on the socialist policies of President Nicolas Maduro and his predecessor, the late Hugo Chavez. Government policy has contributed to the shape the crisis has taken, but there is a lot more going on than meets the eye. I want to try to tell a fuller story.

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The Siren Song of Austerity and the Erosion of the Centre

I wrote a piece on austerity forĀ In the Long Run, a Cambridge blog. You can read it here:

http://inthelongrun.org/articles/article/the-siren-song-of-austerity-and-the-erosion-of-the-centre