Two-and-a-Half Cheers for Elizabeth Warren’s Student Debt Plan

On January 14, Elizabeth Warren released a “Plan to Cancel Student Debt on Day One of My Presidency.”  Warren would use the US Department of Education’s “broad legal authority” to cancel up to $50,000 of debt on behalf of up to 42 million borrowers.

Warren’s plan makes a lot of sense  politically.  She’s struggling for traction in the Democratic Party’s presidential nomination race. Big promises to  millions of borrowers and their families could make a big difference in the Iowa caucuses and New Hampshire primary.

As for the larger problem of college costs, Warren’s overall approach is a mix of some bad things ($150 billion in taxpayer money for Pell Grants and “minority serving institutions,” plus the costs of “universal tuition free public college”) and one and a half good things above and beyond her debt forgiveness plan.

The one good thing: She proposes to eliminate the “undue hardship” standard for discharging student debt in bankruptcy.

The half a good thing: She wants to ban federal funding for for-profit colleges.

That second thing would be a full good thing, instead of just half a good thing, if Warren removed the word “for-profit.”

There’s a strong historical correlation between easy availability of student loans and soaring costs of a college or university education.  It’s basic economics. By artificially lowering loan risk to direct money at a good or service, government increases debt and drives up the price of that good or service.

Under the present system, naive 18-year-olds are swindled into borrowing  more and more insane amounts of money to spend on less and less valuable college degrees. Then when they find themselves barely scraping by under the burden of repaying those loans, they can’t resort to bankruptcy.

Think about that for a minute.

I’m 53. If I go out tomorrow and take out a sub-prime mortgage on a home and a loan for a $40,000 car, then max out a bunch of credit cards, I can substantially get out from under that debt in bankruptcy court.

The 18-year-old who trusted others when they said “you need to go to college and here’s how” doesn’t have the same recourse as spendthrift Tom, who was old enough to know better and then some, but partied hearty anyway. That’s not right.

No, everyone does not need to “go to college.” That’s becoming more true than ever as inexpensive distance learning options and non-school certifications in various fields prepare Americans for many jobs better than seeking a degree does. We need to stop lying to America’s kids about both the costs and the benefits of a college education.

I’m all for Warren’s idea of “forgiving” a bunch of the existing debt. But any kind of lasting solution calls for less, not more, government involvement in general.

The Libertarian Party’s platform offers a better direction: “We support ending federal student loan guarantees and special treatment of student loan debt in bankruptcy proceedings. … Education is best provided by the free market, achieving greater quality, accountability, and efficiency with more diversity of choice.”

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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It’s Not Just Trump Supporters: Politics is a Pile of Shared Psychoses

Photo by Marc NL. Public Domain.
Photo by Marc NL. Public Domain.
Dr. Bandy Lee, a psychiatrist affiliated with Yale University, posits a “‘shared psychosis’ among just about all of Donald Trump’s followers.”

Her claim came in the context of a discussion of Alan Dershowitz’s use of the word “perfect” to describe his sex life, mirroring Trump’s use of that word regarding a well-known phone call with Ukrainian president Volodymyr Zelensky.

Dershowitz has complained to Yale about the claim. He considers it an ethical violation of psychiatrists’ duty not to diagnose conditions absent personal examinations.

This particular version of the claim has a pretty thin basis, but it’s not incorrect. The big problem with it is that it’s too narrow. Donald Trump isn’t some lone Typhoid Mary of “shared psychosis,” nor are his supporters its only victims. Politics as we know it is made up almost entirely of shared psychoses.

The National Institute of Mental Health defines “psychosis” as “conditions that affect the mind, where there has been some loss of contact with reality. … Symptoms of psychosis include delusions (false beliefs) and hallucinations (seeing or hearing things that others do not see or hear). Other symptoms include incoherent or nonsense speech, and behavior that is inappropriate for the situation.”

If that doesn’t sound like the daily grind of American politics to you, you haven’t been paying attention to Trump’s Twitter timeline, the Democratic Party’s presidential primary debates, or Congress’s perpetual bickering.

The primary delusion of politics is the notion that someone out there is more qualified to run your life, or at least your neighbor’s life, than you or your neighbor.  In the advanced stages of the psychosis, the victim becomes convinced that he or she IS that someone and decides to seek political office.

By any measure, the psychosis is pandemic. In the US, more than  45%  — at a bare minimum, the entire adult population minus the half who don’t vote and the tiny percentage who vote Libertarian — clearly suffer from it.

To make a bad situation worse, the American political system is set up to ensure that the most delusional patients get put in charge of running the asylum.

While I’m a partisan Libertarian, I have my doubts that we can vote our way out of this epidemic by electing my fellow partisans to office and having them re-jigger the system to stop spreading the contagion and exacerbating its symptoms.

Perhaps we should consider adding clozapine to the water supply.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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Trump versus Iran: Power Doesn’t Just Corrupt, it Deludes

Lord Acton, with Döllinger and William Gladstone, 1879
Lord Acton, with Döllinger and William Gladstone, 1879
On January 8, US president Donald Trump addressed the American public concerning a casualty-free Iranian missile attack on US bases in Iraq, where just last week Iranian general Qasem Soleimani was killed in a US drone strike.

If the speech was remarkable in any way, it was for the comparative restraint Trump displayed: Rather than pledging another round of tit-for-tat, he announced new sanctions on Iran, vowed that “as long as I’m president of the United States, Iran will never be allowed to have a nuclear weapon,” called on NATO to “become much more involved in the Middle East process,” and rambled aimlessly about the “Iran nuclear deal” that his administration abrogated in 2018.

What was unremarkable — and unfortunate — in the speech was the obvious assumption underlying it: That the United States enjoys, and SHOULD enjoy, absolute power in international relations.

Trump is hardly unique in publicly stating, or in operating on, that assumption. The claim of such absolute power has been the tacit US doctrine of foreign relations since at least as far back as the end of World War Two.

America emerged from that war as the world’s sole nuclear power and, unlike other combatant countries, with its wealth virtually unscathed and its industrial capacity increased rather than demolished. Its rulers saw themselves as able, and entitled, to dictate terms to almost everyone, on almost everything.

“Power tends to corrupt,” wrote Lord Acton, “and absolute power corrupts absolutely.”

Acton was referring to individuals (“great men are almost always bad men”), but his observation is just as true of institutions. And above and beyond corruption, absolute power creates delusion.

The post-war “consensus” on American power around the world began to fray almost immediately.

The Soviet Union acquired “the bomb” and settled in for half a century of dominating eastern Europe.

The US found itself fought to a draw in Korea and defeated in Vietnam when it tried to throw its newfound weight around.

Even after the collapse of the Soviet bloc, the US learned that Michael Ledeen’s re-formulation of the doctrine — “every ten years or so, the United States needs to pick up some small crappy little country and throw it against the wall, just to show the world we mean business” — tends toward big price tags and negative returns.

Yet the delusion persists. It substitutes hubris for humility, sacrificing the blood and treasure of Americans and foreigners alike on the altar of a false god and in pursuit of an imaginary paradise.

The foreign policy recommended by Thomas Jefferson in his first inaugural address —  “peace, commerce, and honest friendship with all nations, entangling alliances with none” — was, and remains, the common-sense alternative to the nonsensical assumption of absolute American power.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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