Here, we make the moral case for refusing to pay your debts. (1/8)
Both Gandhi and MLK Jr. distinguished between just laws and unjust laws. We have a moral obligation to cooperate with just laws, but we also have a moral obligation to refuse to cooperate with unjust laws. A similar distinction exists with debt.
There are just debts and unjust debts. We have a moral obligation to pay just debts, and a moral obligation to refuse to pay unjust debts.
So the question is: what do we really owe and to whom? What should we owe to the 1% and what do they owe to us?
Debt forced on people to meet basic needs like healthcare, housing, education, food, utilities, etc is an unjust debt. There's no moral obligation to pay these debts; they wouldn't exist in a just society.
Our moral obligation to each other is to collectively refuse to cooperate with our own exploitation. There's a double standard of morality when it comes to who has to pay their debts and who doesn’t. The 1% gets to negotiate their debts or even walk away from them all together.
Banks get bailed out all the time, and then turn around and tell us we have a “moral obligation” to pay the unjust debts they claim we owe to them. The real debts that we owe are to each other.
If you get sick or hurt you should be able to get healthcare. This is a moral debt that we are currently defaulting on. People should be able to get an education without mortgaging their future.
Reparations for Black and Indigenous Americans are a moral obligation we have long defaulted on. There is enough wealth to meet these moral obligations, but that wealth is being hoarded by the 1%.
It’s time they coughed up.
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In 2012, we bought over $32 MILLION worth of debt for just PENNIES on the dollar. But instead of collecting it––we abolished it! This is how debt cancellation became a big thing!
Here's why debt is so cheap & how we pulled off such a big stunt that we called "Rolling Jubilee."
All in all, we raised about $700k from small dollar donations and abolished over $32M in student loan and medical debt – a bailout BY the people FOR the people.
How? Well, personal debts get bought and sold for pennies on the dollar by a shadowy network of debt buyers.
Credit card debt, payday loans, private student loans and medical debt get bought and sold as "investment opportunities" on a secondary market for an average of 4¢ on the dollar.
It's an incredibly lucrative, predatory industry because it literally invests in people's pain.
You and your family can go broke.
The United States cannot.
Instead of fearing government deficits, we should ask what the deficits are for. Let's quickly debunk the suggestion that we somehow "can't afford" to cancel student debt for 45 million Americans.
The money for these policies exists. It belongs to us––the public. The federal budget isn't like a household budget. The US government doesn’t have to have the money in advance (by raising it through taxes, for example) because it is the issuer of the US dollar.
The US isn't financially constrained in the way households or some countries are. While federal spending has to be managed and dollars have to be spent in ways the economy can absorb, US gov debt (aka the deficit) is actually sustainable, unlike our personal debt which isn't.
We might sound like a broken record but it's worth repeating: Joe Biden's Education Secretary can UNILATERALLY cancel ALL student debt. It's almost as simple as her waiving a magic wand. Here's some of the legal explanation behind it.
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The Higher Education Act grants ED the authority to “compromise, waive, or release” any claims it has against student debtors. This settlement authority has existed since congress first created student loans – the first loans were created w/ the National Defense Education Act.
The NDEA gave the Commissioner of Education the “power to agree to modification of agreements or loans made under this title and to compromise, waive, or release any right, title, claim or demand, however arising or acquired under” the National Defense Education Loan program.
Fun fact, many of those students are still waiting to get their debt discharged because @arneduncan & @JohnBKing & @BetsyDeVosED would team up to screw them over
We have the receipts
A Biden/Harris admin will need to make a clean break from this disgraceful past
We prepared a simple two page document that would have discharge all debt for all defrauded Corinthian students. All it would have taken is one signature from @arneduncan
. He refused. Most Corinthian students still have their debt as a result.
@JohnBKing could have canceled all of this debt instead of throwing Corinthian students to the wolves after Trump won. He hardened his heart and refused. vimeo.com/194002892
In an effort to dismiss the idea of cancelling all student loans, folks will often say that it would be a "big giveaway" to the upper middle class, or in other words "regressive."
In reality, cancelling student debt would actually benefit low income borrowers the most.
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There's a deep class bias in how we finance higher education. Even though some middle class/wealthier people have student debt, lower-income borrowers, especially Black and brown people, have higher balances and are more likely to leave school because they can't afford to pay.
Cancelling student loans would restore our commitment to education as a right while disproportionately benefitting the people who need it most. Why are we having a hard time paying down our debt?
Because the cost of college has gone up but our pay hasn’t.
This is an important article that gives us all a chance to learn about human capital theory and how it is some bullshit. currentaffairs.org/2019/09/cancel…
Human capital is the idea that the "value of labor is connected to what that labor produces. If you can produce things of high value, but you’re not getting paid an amount that reflects that high value, you’ll go produce value for someone who will pay you more."
Through competition between employers, wages should supposedly approximate the 'value' of labor as measured by what that labor produces. And the value of an individual’s labor—again, linked to the value of what they can produce....