Even if all 20 million people eligible for partial debt forgiveness received the full $20K - a wildly over the top scenario - it would amount to about 6.6% of the total federal budget. That's not likely to trigger an acceleration of inflation. It's a blip on the screen.
Even if all 20 million people eligible for partial debt forgiveness received the full $20K - a wildly over the top scenario - it would amount to about 6.6% of the total federal budget. That's not likely to trigger an acceleration of inflation. It's a blip on the screen.
JVL has the cost at $360 billion. That's about 1.7% of current GDP. There is no offsetting revenue here to prevent this from contributing to inflation. Raising taxes to pay for this would spoil all the political fun, but it ought to be done.
Forbes is reporting today that the $400B in debt forgiveness [their estimate] could actually boost GDP slightly while having a similarly minor effect on inflation. IMO, the hair-on-fire response about this program is overblown. Intentionally. There's an election coming up.
Even if all 20 million people eligible for partial debt forgiveness received the full $20K - a wildly over the top scenario - it would amount to about 6.6% of the total federal budget. That's not likely to trigger an acceleration of inflation. It's a blip on the screen.
JVL has the cost at $360 billion. That's about 1.7% of current GDP. There is no offsetting revenue here to prevent this from contributing to inflation. Raising taxes to pay for this would spoil all the political fun, but it ought to be done.
Forbes is reporting today that the $400B in debt forgiveness [their estimate] could actually boost GDP slightly while having a similarly minor effect on inflation. IMO, the hair-on-fire response about this program is overblown. Intentionally. There's an election coming up.
This won't be hitting the economy all at once. Payments aren't changing and their loans all have different end dates.