President Obama is trying to buy the votes of Millennials. He’s doing this by promising to keep the interest rates on student loans at 3.4 percent. Without congressional action the rates on the loans will double to 6.8 percent in July.
Here’s what President Obama said to students at the University of North Carolina:
“College education is one of the best investments America can make for our future. . . . This is important for all of us. We can’t price most Americans out of a college education. We can’t make higher education a luxury. It’s an economic imperative. Every American should be able to afford it. So that’s why I’m here.”
If lower interest rates are good for the economy, then why aren’t lower taxes? Any college student worth his or her salt should be asking this question. But they aren’t. They are like most people who believe that government should do more – more for them at the expense of someone else.
It’s unfortunate that most college students rarely get a free market approach to economics. This is by design. Colleges are dependent on tax dollars. Even private colleges are subsidized by students who bring money they got from the government in the form of guaranteed government loans and grants.
There’s another part to the story that is often missed. The rising cost of college is the direct result of government subsidizing education. When the government started paying women who had children out of wedlock through various programs (Wic, EBT, and ADC), more women had children out of wedlock and more men left after the children were born because the government was taking care of the mother and her illegitimate children. Think of the film The Blind Side.
Women trapped in these programs have little choice but to continue to vote for the political party that promises to maintain the programs. Republicans capitulate by going along with the Democrats so they won’t be vilified by the press and the always aggressive liberals.
A similar thing happens with college students. Their debt after graduation — now at $1 trillion and more than all credit card debt — makes them dependent on the State.
With nearly half of all college graduates either employed or underemployed, they have a decision to make. Do they want to be wards of the State or free men and women under God? How they vote in November will make all the difference in the world — literally. Again, it’s not all about the presidency. The House and Senate are equally, maybe even more, important.