President Biden Is About To Make An $85 Billion Mistake

Student loan payments are set to resume on February 1st of this coming year, and if this debt is not cancelled, it is going to wipe out $85 billion from the economy each year. That is how money borrowers have managed to pump into other areas of the economy since the payments were suspended, and the money has helped fuel the recovery. But all of that evaporates instantly in February if Biden doesn't step up, as Ring of Fire's Farron Cousins explains.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

President Joe Biden is on pace to make an $85 billion mistake and that mistake is allowing student loan debt repayment to begin on February 1st of the year 2022, just a couple months away at this point. And we know it's 85 billion because that is the amount of money that borrow, borrowers have saved over the last year and a half when they haven't had to make those student loan payments, $85 billion a year, actually. And that money is going to other things in the economy. You want to know why we're having such a great economic recovery, because people have more money to spend on other things. You wanna know why we're having so much supply chain problems, not a hundred percent of it, but people have more money. They buy more things. And they have more money because they haven't had to worry about these student loan payments and millions of borrowers have already said that once this resumes, they're no longer financially secure. They're once again gonna have to go back to making those decisions about which things they can and can no longer afford each month.

That's what's going to happen. And of course, $85 billion a year pulled out of the US economy, going to the lenders who gave the people these, this money. Whereas if president Biden were to come out and say, you know what, I'm issuing the order right now, we're canceling $50,000 of student loan debt for everybody. Which no, it should not be means tested. If you have $50,000 or less in student loans, gone forever. It doesn't matter if you're a millionaire or if you make 20 grand a year, everybody across the board gets the same thing, forgiving it all. Best of luck to you out there. You no longer have that weighing you down. That's what he could do. And if he did that, it would not inject $85 billion into the economy every year, it would inject $173 billion into the economy every year. That is the projection based on what else that money would do once inserted in the economy. Because if you're saving a hundred dollars a month on your student loan payment, 200, 300, whatever it is and you go and you spend that 300 wonderful, but that doesn't end the economic activity of that $300.

That $300 goes to other people. It pays, it goes to small businesses. It goes to tips. It goes to whatever other things that you can do with it that you previously were not able to and then those people spend it and so on and so forth. The ripple effects throughout the economy are huge for this. And it's 100% in Biden's hands. Not to mention the fact that this would be a massive political victory for a guy that's struggling to get his approval rating back up to 50%. You want an immediate major political win, forgive this student loan debt, watch your numbers go up. But most importantly, watch as millions of Americans stop having to make unnecessary sacrifices because they can't afford to live their lives. That's the most important fact. The economic benefits are second. And of course the political benefits to Biden are last. But politicians can be selfish. So if he's gonna do it for a reason, I imagine it's probably to boost his numbers, but whatever the rationale is, it needs to happen and it needs to happen fast.