Amidst the highest level of inflation since Jimmy Carter, the current resident of the White House is considering throwing gasoline on the fire by waving his executive pencil and forgiving $10,000 in student loan debt per borrower.
The administration claims that this will forgive $321 billion in loans, but my back of the napkin figures place that at closer to $400 billion. In any case, that means that another $350 billion or so dollars will suddenly be added to the dollars circulating through this inflationary economy in a time when we should be tightening economic purse strings, not spending like there is no tomorrow.
Inflation will continue to get worse. It’s like a couple of 14 year old kids are playing with a can of gasoline and some matches. In the house.