Could Student Loan Forgiveness Stimulate the Economy?
After months of stories about corporate execs getting bailed out of their bad debts, many of us are wondering where our economic stimulus plan is. Why is it that hardworking, responsible people have to continue paying off their debts, but the AIG and Citigroup types of the world get a free pass?
One man thinks he has the answer. According to the Huffington Post:
Robert Applebaum, an attorney from New York, thinks so and has an idea on how to help many in his shoes — and trust me, there are many — while stimulating the economy at the same time. The 35 year old started up an online campaign this month to bail out those “hard-working, educated middle class” suffocating in college loan debt on Facebook. He formed the group “Cancel Student Loan Debt to Stimulate the Economy” because he believes forgiving student loan debt for those making under $150,000 annually would help boost the economy from “the bottom up.”
“I struggle to pay my rent and bills and have never defaulted on my student loans,” he said Feb. 4. But I also don’t spend money on consumer goods anymore — not only because I can’t afford them, but because I’m afraid the situation will only get worse…”
He continued, “One-time tax rebates and meager tax cuts do nothing to stimulate the economy. A recession is as much a psychological phenomenon as anything else. Knowing I’d have an extra $500 per month in my pocket will get me spending again. Multiply that across the country and the economy will start to move again.”
Let’s put it to the Queercents readers. Do you think that student loan forgiveness would stimulate the economy by freeing up money for consumer spending? How much would you personally stand to benefit from a plan like this?