Key Obama Adviser Shreds the Biden Student Debt Reconciliation Plan

Jason Furman, the Harvard professor who headed the Council of Economic Advisers during the Obama administration, tore apart President Joe Biden's reckless student debt cancellation plan on Wednesday.

“Everyone else will pay for this either in the form of higher inflation or in higher taxes or lower benefits in the future,” Jason Furman tweeted to start off a long thread discussing the issue.

On Wednesday Biden announced that non-Pell Grant recipients will receive $10,000 in student loan debt cancellation, with Pell Grant recipients getting $20,000 in debt cancellation. Anyone who makes less than $125,000 per year is eligible.

Furman used a series of tweets to expose how bad the move was:

“Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless. Doing it while going well beyond one campaign promise ($10K of student loan relief) and breaking another (all proposals paid for) is even worse,” he wrote.

“You can’t use one baseline (interest payments suspended) to argue this will constrain demand & then a different baseline (interest payments restored) to describe the benefits. That is incoherent, inconsistent & indefensible cherry picking–I hope the White House doesn’t do it,” he wrote.

“There are a number of other highly problematic impacts including encouraging higher tuition in the future, encouraging more borrowing, creating expectations of future debt forgiveness, and more,” he added.

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