I genuinely don’t get it. My brain says if people don’t have this looming debt they have to pay into, they’ll have more money to feed into the economy via goods and services.
ETA: I only have this question because of what Biden is saying. I have a gut feeling it’s misdirection to avoid cancelling student loans, but figured I check.
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> more money to feed into the economy via goods and services
You just answered your own question… more money to spend means more demand for goods and services, which could drive up prices.
But it’s likely not going to be effectively, “here’s $10k!” It might shorten the timespan people pay off their loans, so they keep paying for 5 more years, not 8. Or perhaps the loans are re-caclulated so it’s still the same time, but the payment goes down as a result of a lower balance. So the re-allocation of one’s income/spending won’t all hit the economy now if it were to be done.
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