Posted on Mar 11, 2021
Why is College debt bad, but government debt good?
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Question for the Millennial Generation. I don't know how to "properly" ask this without coming across as judgmental or accusational. Please understand that I am asking this question in earnestness and a true desire to understand thought processes and rationale.
I have seen a whole lot from millennials about how my generation (Gen X) has set them up for failure with skyrocketing tuition costs, overwhelming college debt, and stagnant job growth making repaying those college loans difficult. Many of these same folks believe that the federal government should bail them and/or their peers out.
I understand the argument. I don't necessarily agree with it, but I can understand it, and understand how there IS a certain logic behind the movement.
But here is what I don't understand.... Many of these SAME people, who are complaining about my generation saddling them with an impossible debt scenario, are more than happy for the latest 1.9 trillion unfunded spending bill. They are also happy to saddle the federal government with THEIR debt from college. This is effectively saddling THEIR kids with debt from their generation. And yes - I completely understand this is a "pot calling kettle black" situation. Gen X was NOT good about our demands on the government and our willingness to fund it. We saddled Millennials with more government debt than we had a right to. It was not right, and I, personally, was not happy about it as we did it. But... If millennials really do understand, personally and viscerally, the harmful impact of overwhelming debt, as they appear to do from their college debt, why are they apparently OK with crippling their future (and sometimes CURRENT) kids with generational government debt?
Again, I am not trying to be judgmental, I am legitimately trying to understand the rationale.
I have seen a whole lot from millennials about how my generation (Gen X) has set them up for failure with skyrocketing tuition costs, overwhelming college debt, and stagnant job growth making repaying those college loans difficult. Many of these same folks believe that the federal government should bail them and/or their peers out.
I understand the argument. I don't necessarily agree with it, but I can understand it, and understand how there IS a certain logic behind the movement.
But here is what I don't understand.... Many of these SAME people, who are complaining about my generation saddling them with an impossible debt scenario, are more than happy for the latest 1.9 trillion unfunded spending bill. They are also happy to saddle the federal government with THEIR debt from college. This is effectively saddling THEIR kids with debt from their generation. And yes - I completely understand this is a "pot calling kettle black" situation. Gen X was NOT good about our demands on the government and our willingness to fund it. We saddled Millennials with more government debt than we had a right to. It was not right, and I, personally, was not happy about it as we did it. But... If millennials really do understand, personally and viscerally, the harmful impact of overwhelming debt, as they appear to do from their college debt, why are they apparently OK with crippling their future (and sometimes CURRENT) kids with generational government debt?
Again, I am not trying to be judgmental, I am legitimately trying to understand the rationale.
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Finance
Posted 4 y ago
Responses: 3
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College debt is "bad" because it's just too damn easy to get it, and an absurd amount at that and they are told they'll get a sweet job making 7 figures at Google just for having a BA in Philosophy so don't worry about repaying- it's in the bag." Hey gov! I need $138,000 because I want to go to an out-of-state public school (not including room and board)". "Sure kind citizen, have at it and good luck!"
Boom, kid comes out that much in debt and finds a job making $42k a year. House, car, utilities, insurance, phone, internet, food all need to be paid....and then Nelnet or whomever comes knocking. Person can't afford to live AND pay for the degree they got. (and it's not the government's fault, it's the unchecked universities fault because they just ran up the cost knowing people could get loans). So now they put in for an Income Based Repayment....and the loan continues to not be paid off really.
As for government debt - it's not their problem. They will blame whatever their liberal arts prof told them is the problem - the spendy spendy DoD. Meanwhile we have an EPA who could fund everything if they'd just crack down on violations with fines that actually affect corporations . Like a % of their profits rather than a flat fine.
Boom, kid comes out that much in debt and finds a job making $42k a year. House, car, utilities, insurance, phone, internet, food all need to be paid....and then Nelnet or whomever comes knocking. Person can't afford to live AND pay for the degree they got. (and it's not the government's fault, it's the unchecked universities fault because they just ran up the cost knowing people could get loans). So now they put in for an Income Based Repayment....and the loan continues to not be paid off really.
As for government debt - it's not their problem. They will blame whatever their liberal arts prof told them is the problem - the spendy spendy DoD. Meanwhile we have an EPA who could fund everything if they'd just crack down on violations with fines that actually affect corporations . Like a % of their profits rather than a flat fine.
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In my opinion, Baby Boomers (not Gen X) caused much of the college debt problem. It went something like this:
As they came of age, Baby Boomers were able to attend college during a time when tuition costs were reasonable and their parents earned good wages to help fund college. Then, once they became adults and turned into a political force, the Baby Boomers voted in a bunch of politicians who slashed taxes and also voted in a slew of state-level balanced budget amendments. Those amendments, combined with a refusal to raise taxes, led to states slashing funding for universities (and healthcare) to balance their budgets. This drove up tuition costs as schools tried to offset the funding cuts. Essentially, a college education shifted from being a public good (where Baby Boomers benefited) to becoming a private good (where Baby Boomers benefited again). Basically, Baby Boomers tore down the higher education system that benefited them. The result is that today's youth are saddled with obscene levels of student debt that their parents and grandparents never faced. They just want the same thing their parents and grandparents had.
Here's a follow-up question. Why are the same people who complain about debt to fund this stimulus are the same people who didn't complain when debt was used to fund tax cuts in 2017? A tax cut funded through debt is basically taking money from your kids and grandkids. They will be saddled with repaying that debt.
As they came of age, Baby Boomers were able to attend college during a time when tuition costs were reasonable and their parents earned good wages to help fund college. Then, once they became adults and turned into a political force, the Baby Boomers voted in a bunch of politicians who slashed taxes and also voted in a slew of state-level balanced budget amendments. Those amendments, combined with a refusal to raise taxes, led to states slashing funding for universities (and healthcare) to balance their budgets. This drove up tuition costs as schools tried to offset the funding cuts. Essentially, a college education shifted from being a public good (where Baby Boomers benefited) to becoming a private good (where Baby Boomers benefited again). Basically, Baby Boomers tore down the higher education system that benefited them. The result is that today's youth are saddled with obscene levels of student debt that their parents and grandparents never faced. They just want the same thing their parents and grandparents had.
Here's a follow-up question. Why are the same people who complain about debt to fund this stimulus are the same people who didn't complain when debt was used to fund tax cuts in 2017? A tax cut funded through debt is basically taking money from your kids and grandkids. They will be saddled with repaying that debt.
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LTC Kevin B.
SFC Casey O'Mally - The Covid-19 bill was indeed pitched as an economic stimulus bill, but that wasn't the primary sales pitch. The primary focus has been on selling the "economic relief" benefits to the populace. That approach apparently works because this bill is much more popular than the tax cut ever was.
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LTC David Brown
I disagree a little bit. People started viewing college as a “ necessity “. Boomers told their kids they “had” to go to college. People are ignorant about money, debt and finances in general college debt is terrible because it can’t be gotten out of by bankruptcy. The increased demand for college lead to an increase in cost for colleges. Then kids make dumb choices that lead to bigger problems. I want to go to Southern California. Out of state tuition etc etc etc. kid flunks out thousands upon thousands in debt. There are a lot of cheaper but good community colleges etc. I simply look at it as supply and demand.
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