President Joe Biden’s decision to cancel hundreds of billions of dollars in student loan debt has taken fire from all sides, but now Florida Gov. Ron DeSantis is speaking out.
“And what else will increase inflation is this big student loan bailout, where they’re doing maybe a trillion dollars-worth of student loans that they’re going to put on the backs of the taxpayer,” DeSantis said at a news conference.
He said Biden does not have the authority to forgive the debt in the first place.
“You also have the situation where this is going to cause inflation to be exacerbated,” DeSantis said. “It’s not just me saying that. One of Obama’s top economists has come out and said it’s like pouring gasoline on the fire to be doing a trillion dollar bailout when we already have inflation raging. Biden doesn’t have authority to do this.”
The Obama administration economist in question, Jason Furman, has been clear on the inflationary effects of the debt cancellation.
Student loan relief is not free. It would be paid for. Part of it would be paid for by the 87% of Americans who do not benefit but lose out from inflation. Part of it would be paid for by future spending cuts & tax increases—with uncertainty about who will bear those costs.
— Jason Furman (@jasonfurman) August 19, 2022