According to an article on Inside Higher Ed this morning: “High levels of student debt are contributing to negative wealth — when a household’s debt is greater than its total assets — and inequality, according to an analysis of household finance data by the Federal Reserve Bank of New York.”
Let me see if I’ve got this right. The analysts at the Federal Reserve Bank of New York have determined that increased “inequality” results from students taking on more debt than they have assets.
Well, no wonder Democrats want to hand out “free college” to everyone! If that prevents debt, it reduces inequality! But why stop there? Just as a country that gets paid to release hostages will, if it is a rational economic actor, seize more hostages, why shouldn’t we all run up our credit card debt? Think of all the “inequality” that could be reduced if all the things we borrow to buy were provided free!