Thread by @DrAliBustamante

Takeaways from working on student debt cancellation during the past year:
-It is fair
-It promotes economic security
-It narrows racial wealth disparities
-It does not preclude other public welfare improvements
-It does not increased inflation
A🧵explainer on #CancelStudentDebt

It is fair. It was wrong for the gov’t to shift its responsibility to fund higher education onto students and their families. Public colleges used to be free or have low-cost tuition before gov’t cut funding.

It promotes economic security. Research shows that borrowers will redirect student loan payments to their savings and service other debts. We all benefit from broad economic security, but student loan payments have no marked benefit to anyone.

It narrows racial wealth disparities. Black students are more likely to take out student loans and borrow greater amounts than White students. Student debt cancellation reduces the debt liabilities of Black borrowers and increases their creditworthiness and acquisition of wealth.

It does not preclude other public welfare improvements. Policymaking, like the federal budget, is not zero sum. The payment pause of 3/13/2020 coincided with the largest domestic investments in modern history. Student debt cancellation will likewise have no crowding out effect.

It does not increase inflation. Increases in wealth, especially for those with little or negative wealth, help build economic buffers through increased savings and have very little impact on spending.