Phi Beta Cons

Peter Schiff Dislikes Obama’s Student-Loan Gambit

Economist Peter Schiff, who was among the first people to publicly predict the collapse of the housing bubble, writes here about Obama’s student-loan gambit. Just like his politically motivated interventions in the housing market, this is just going to prolong and deepen the problem — too many people going to college largely at the expense of others, then struggling to find jobs that pay enough to cover the debts. Many will never find such employment since the labor market doesn’t automatically create high-paying jobs just because more people have a “higher attainment” in formal education. Then the costs are passed along to taxpayers. Obama’s move might reap him some political benefit, but it will lead to more wasted resources. This is another lesson in Bastiat’s “seen and unseen.”

George Leef is the the director of editorial content at the James G. Martin Center for Academic Renewal.