why would cancelling student loans make inflation worse


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.

In: 0

>they’ll have more money to feed into the economy via goods and services.

You answered your own question, if more people have more money to spend then there is less pressure on prices to stay affordable

Maybe because since its borrowed money, it leads bsck to the banks, and if the banks dont get their money back, it means they dont got the moneys in the bank. And to have the “moneys”, the government prints more moneys. But doing that decreases the value of the USD

No debt -> people buy stuff. The more people buy stuff, the more expensive stuff gets.


lol bro imagine you lend someone half of your life savings and then the government tells you they don’t have to pay you back.. lmao this sounds stupid. Even if the government themselves paid it off, they’d probably do it by printing more money since thats been their recent go-to strategy. Leading to even more inflation. It sounds like a cool idea but super irrational.