Two-and-a-Half Cheers for Elizabeth Warren’s Student Debt Plan

On January 14, Elizabeth Warren released a “Plan to Cancel Student Debt on Day One of My Presidency.”  Warren would use the US Department of Education’s “broad legal authority” to cancel up to $50,000 of debt on behalf of up to 42 million borrowers.

Warren’s plan makes a lot of sense politically.  She’s struggling for traction in the Democratic Party’s presidential nomination race. Big promises to  millions of borrowers and their families could make a big difference in the Iowa caucuses and New Hampshire primary.

As for the larger problem of college costs, Warren’s overall approach is a mix of some bad things ($150 billion in taxpayer money for Pell Grants and “minority serving institutions,” plus the costs of “universal tuition free public college”) and one and a half good things above and beyond her debt forgiveness plan.

The one good thing: She proposes to eliminate the “undue hardship” standard for discharging student debt in bankruptcy.

The half a good thing: She wants to ban federal funding for for-profit colleges.

That second thing would be a full good thing, instead of just half a good thing, if Warren removed the word “for-profit.”

There’s a strong historical correlation between easy availability of student loans and soaring costs of a college or university education.  It’s basic economics. By artificially lowering loan risk to direct money at a good or service, government increases debt and drives up the price of that good or service.

Under the present system, naive 18-year-olds are swindled into borrowing  more and more insane amounts of money to spend on less and less valuable college degrees. Then when they find themselves barely scraping by under the burden of repaying those loans, they can’t resort to bankruptcy.

Think about that for a minute.

I’m 53. If I go out tomorrow and take out a sub-prime mortgage on a home and a loan for a $40,000 car, then max out a bunch of credit cards, I can substantially get out from under that debt in bankruptcy court.

The 18-year-old who trusted others when they said “you need to go to college and here’s how” doesn’t have the same recourse as spendthrift Tom, who was old enough to know better and then some, but partied hearty anyway. That’s not right.

No, everyone does not need to “go to college.” That’s becoming more true than ever as inexpensive distance learning options and non-school certifications in various fields prepare Americans for many jobs better than seeking a degree does. We need to stop lying to America’s kids about both the costs and the benefits of a college education.

I’m all for Warren’s idea of “forgiving” a bunch of the existing debt. But any kind of lasting solution calls for less, not more, government involvement in general.

The Libertarian Party’s platform offers a better direction: “We support ending federal student loan guarantees and special treatment of student loan debt in bankruptcy proceedings. … Education is best provided by the free market, achieving greater quality, accountability, and efficiency with more diversity of choice.”

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Donald Boudreaux: Market Failure, Government Failure and the Economics of Antitrust Regulation (1h6m)

This episode features an interview of economics professor Donald Boudreaux from 2007 by Russ Roberts, host of EconTalk. They talk about when market failure can be improved by government intervention. After discussing the evolution of economic thinking about externalities and public goods, the conversation turns to the case for government’s role in promoting competition via antitrust regulation. Boudreaux argues that the origins of antitrust had nothing to do with protecting consumers from greedy monopolists. The source of political demand for antitrust regulation came from competitors looking for relief from more successful rivals. Purchase books by Donald Boudreaux on Amazon here.

Listen To This Episode (1h6m, mp3, 64kbps)

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Trump’s Democratic Critics Want it Both Ways on Biden, Clinton

US president Donald Trump “elevated his political interest above the national interest and demanded foreign interference in an American election,” Peter Beinart asserts at The Atlantic. “What’s received less attention is what the scandal reveals about Joe Biden: He showed poor judgment because his staff shielded him from hard truths. If that sounds faintly familiar, it’s because that same tendency underlay Hillary Clinton’s email woes in 2016.”

Beinart admits that Joe Biden’s son Hunter’s service as a very well-paid member on the board of a Ukrainian energy company at the same time his father’s portfolio included “fighting corruption in the Ukrainian energy industry” was “a problem.”

But it’s not Joe’s fault, see? His staffers didn’t want to confront him about the conflict of interest. They “feared the vice president’s wrath,” and thought him “too fragile” after one son’s death to hear “upsetting news” about the other’s conduct.

Ditto Hillary Clinton. As Secretary of State, she was briefed on (and signed papers agreeing to abide by) State Department protocols on the handling of classified information and the use of non-government email systems.  But Beinart lets Clinton off the hook because her chief of staff and other aides failed to “forcefully convey” her obligations to her.

Here’s Beinart’s case — one also made by other Democratic partisans — boiled down to its essentials:

When Republicans act criminally and/or corruptly, it’s because they’re criminal and/or corrupt.

When Democrats act criminally and/or corruptly, it’s because they’re just poor, temperamental, out-of-their-element naifs who of course have no criminal or corrupt intent, but whose staffers — whether negligently, or out of concern for feelings or fear of offending — neglect to button their winter coats for them, take them by their little mittened hands, and carefully walk them across all those busy, dangerous legal/ethical streets.

There are two obvious problems with this double standard.

One is that for the last three years we’ve been told over and over (by, among others, Hillary Clinton and Joe Biden) that Trump is a loose cannon, an eternal man-child who lacks “adults in the room” to help him navigate the intricacies of governing. So why shouldn’t Trump receive the same “Blame the Aides and Get Out of Jail Free Card” that Beinart tries to play on behalf of the other two?

The other is that in arguing that Joe Biden and Hillary Clinton aren’t responsible for their actions because they’re too stupid to discern right from wrong and too simultaneously mean and emotionally delicate to be TOLD right from wrong, Beinart is necessarily also arguing that Joe Biden and Hillary Clinton were and are, by definition, unfit to entrust with responsibilities as weighty as those that go with, say, the presidency of the United States.

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Every One of Your Actions Sets a Precedent

I wonder whether scientists like Albert Einstein and Robert Oppenheimer had any inkling in their youth that their work in physics would one day be used to produce nuclear weapons.

Yet by cooperating with the government that produced these weapons, these men (even Einstein, more indirectly) created the forces that could destroy all life on earth. And they made it easier for more scientists to come to cooperate in the refinement of nuclear weapons and other terrible tools.

Most of us may not live (as they did) to see the long-range results of our actions turn into something quite as bad as atomic weapons. But I’m convinced of the idea that every action we take sets a precedent for how other humans behave. And every action we take brings us closer to or takes us further from our worst nightmares.

If we do a bad job in our work, other people will tend to a bad job in theirs. It doesn’t take long until our world is full of shoddy work.

If we lie, other people will find it easier to lie (and harder to tell the truth). It won’t be long before no one’s word can be trusted in our world.

If we cooperate with tyranny, other people will find it easier to cooperate with tyranny. We shouldn’t be surprised if tyranny takes over.

These changes are slow, but they spread pretty inexorably among people who aren’t awake to the significance of their actions.

The macro problems of 50 or 100 years from now – the breakdown of families, climate change, erosion of individual freedom, what have you – will spring out of behavioral precedents we set now. So in case we needed another reminder to “do unto others” as we would have them do unto us, this is it.

Originally published at JamesWalpole.com.

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Do You Talk About X in Open Borders? Yes!

The modal question about Open Borders is, “Do you talk about X?”  The answer is “YES” for all of the following…

1. Do you talk about the historical pattern of global poverty rates?

2. Do you talk about people’s attachment to their country of birth?

3. Do you talk about overcrowding?

4. Do you talk about the global poor’s ability to function in a modern society?

5. Do you talk about global apartheid?

6. Do you talk about the level of illegal immigration?

7. Do you talk about human smuggling?

8. Do you talk about the effectiveness of immigration law at preventing and deterring illegal immigration?

9. Do you talk about immigration as a civil right?

10. Do you talk about whether the plight of the immigrant is our problem?

11. Do you talk about whether there is a right to immigrate?

12. Do you talk about whether this right is absolute?

13. Do you talk about America’s open borders era?

14. Do you talk about how America’s open borders era ended?

15. Do you talk about the potential dangers of open borders?

16. Do you talk about whether we should look before we leap?

17. Do you talk about the Antarctican farmer hypothetical?

18. Do you talk about the connection between mass consumption and mass production?

19. Do you talk about the benefits of immigration for immigrants?

20. Do you talk about the benefits of immigration for natives?

21. Do you talk about how much immigration actually helps immigrants?

22. Do you talk about why immigration helps immigrants?

23. Do you talk about how much a trillion dollars of gains really buys?

24. Do you talk about whether open borders is “trickle-down economics”?

25. Do you talk about how immigration affects native workers?

26. Do you talk about how immigration affects you personally?

27. Do you talk about the effect of immigration on average national incomes?

28. Do you talk about the Arithmetic Fallacy?

29. Do you talk about what open borders would really look like?

30. Do you talk about the effect of open borders on the visibility of poverty?

31. Do you talk about “swamping”?

32. Do you talk about diaspora dynamics?

33. Do you talk about Puerto Rico?

34. Do you talk about brain drain?

35. Do you talk about what good for places versus what’s good for people?

36. Do you talk about zombie economies?

37. Do you talk about how immigration’s fiscal effects vary by immigrant skill?

38. Do you talk about whether open borders and the welfare state are compatible?

39. Do you talk about rival versus non-rival government services?

40. Do you talk about how welfare states prioritize the old versus the poor?

41. Do you talk about the cost of educating immigrants’ children?

42. Do you talk about the effect of immigration on the sustainability of retirement systems?

43. Do you talk about the best way to measure immigrants’ overall fiscal effects?

44. Do you talk about Net Present Value?

45. Do you talk about empirical estimates of  immigrants’ overall fiscal effects?

46. Do you talk about whether more immigration is likely to save Social Security and Medicare?

47. Do you talk about empirical estimates of immigrants’ overall fiscal effects as a function of their education and age?

48. Do you talk about Milton Friedman’s arguments against open borders?

49. Do you talk about the parallels between the fiscal effects of native births versus immigration?

50. Do you talk about how human beings value their cultures?

51. Do you talk about the value of Western civilization?

52. Do you talk about the cultural dangers of admitting non-Western immigrants?

53. Do you talk about terrorism, mass rape, human trafficking, Sharia, and the decline of English?

54. Do you talk about numeracy?

55. Do you talk about the statistics of terrorism, including the share of terrorism committed by foreigners?

56. Do you talk about the Skittles argument against refugees?

57. Do you talk about immigrant crime rates?

58. Do you talk about the effect of immigration on overall crime rates?

59. Do you talk about the “What if it happened to you?” objection to statistical evidence?

60. Do you talk about first-generation immigrant language acquisition?

61. Do you talk about later-generation immigrant language acquisition?

62. Do you talk about immigrant assimilation across generations?

63. Do you talk about how modernity makes assimilation slower?

64. Do you talk about how modernity makes assimilation faster?

65. Do you talk about the social importance of trust?

66. Do you talk about the effect of immigration on national trust?

67. Do you talk about trust assimilation?

68. Do you talk about how much trust a successful society needs?

69.  Do you talk about the cultural benefits of immigration?

70. Do you talk about immigrants’ desire for freedom?

71. Do you talk about immigrants’ disdain for freedom?

72. Do you talk about the danger that immigrants will vote to “kill the goose that lays the golden eggs”?

73. Do you talk about how Democratic immigrant voters are?

74. Do you talk about Indian-American voting?

75. Do you talk about immigrants’ specific policy views?

76. Do you talk about how immigrants’ specific policy views vary by education?

77. Do you talk about the effect of immigration on actual government policy?

78. Do you talk about immigrants’ political assimilation?

79. Do you talk about whether immigrants undermine natives’ support for the welfare state?

80. Do you talk about “Magic Dirt”?

81. Do you talk about research on “Deep Roots”?

82. Do you talk about whether Deep Roots research shows that “trillion-dollar bills on the sidewalk” are illusory?

83. Do you talk about national IQ?

84. Do you talk about the effect of immigration on national IQ?

85. Do you talk about whether you’re virtue signaling?

86. Do you talk about whether IQ research shows that “trillion-dollar bills on the sidewalk” are illusory?

87. Do you talk about the effect of immigration on immigrants’ IQs?

88. Do you talk about human genetics?

89. Do you talk about “keyhole solutions”?

90. Do you talk about imposing admission fees and surtaxes on immigrants to help less-fortune natives?

91. Do you talk about why tax-and-transfer schemes are any better than simple exclusion?

92. Do you talk about restricting immigrants’ eligibility for government benefits?

93. Do you talk about requiring immigrants to learn English?

94. Do you talk about requiring immigrants to acquire cultural literacy?

95. Do you talk about the dangers of Islam?

96. Do you talk about Muslim bans?

97. Do you talk about keyhole solutions for the dangers of Islam?

98. Do you talk about restricting immigrant voting rights?

99. Do you talk about the political feasibility of keyhole solutions?

100. Do you talk about the bracero program?

101. Do you talk about H-1Bs and other work visas?

102. Do you talk about the fairness of keyhole solutions?

103. Do you talk about Sodom and Gomorrah?

104. Do you talk about what utilitarians, egalitarians, libertarians, wealth-maximizers, meritocrats, Christians, and Kantian should think about open borders?

105. Do you talk about whether immigrants have a right to immigrate to your house?

106. Do you talk about who Jesus would deport?

107. Do you talk about the connection between open borders and socialism?

108. Do you talk about immigration and political polarization?

109. Do you talk about why conservatives should favor open borders?

110. Do you talk about why liberals should favor open borders?

111. Do you talk about citizenism?

112. Do you talk about Trump’s views and policies?

113. Do you talk about the best argument against open borders?

114. Do you talk about whether any human is illegal?

115. Do you talk about the best way to frame the immigration debate?

116. Do you talk about immigration as charity?

117. Do you talk about immigration as justice and abundance?

118. Do you talk about open borders with Canada?

119. Do you talk about why you talk so much about the United States?

120. Do you talk about whether you hate America?

121. Do you talk about earlier cosmopolitan transformations?

122. Do you talk about Brexit?

123. Do you talk about public opinion on immigration?

124. Do you talk about scaring people with extremism?

125. Do you talk about the Overton Window?

126. Do you talk about whether open borders is another crazy Ivory Tower Proposal?

127. Do you talk about how to get there from here?

128. Do you have endnotes?  Lots of them?

129. Do you have references?  Lots of them?

130. Do you have acknowledgements?  Lots of them?

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Impeachment: Trump Has Already Confessed to “High Crimes”

Every time a witness testifies behind closed doors in the US House of Representatives’ methodical march toward the impeachment of President Donald Trump, Trump supporters scream “no quid pro quo” while Trump opponents breathlessly inform us that the “smoking gun” has turned up and that impeachment is now “inevitable.”

What’s with all this “smoking gun” stuff? The decision to impeach is political, but in terms of evidence, it’s already a lock. President Trump publicly confessed to multiple “high crimes” before House Speaker Nancy Pelosi (D-CA) even announced the impeachment inquiry, then threw in a corroborating White House document.

Readers, meet Article VI of the US Constitution:

“This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land …”

And now let us consult a lesser-known document, the US government’s  Treaty With Ukraine on Mutual Legal Assistance in Criminal Matters:

“Each Contracting State shall have a Central Authority to make and receive requests pursuant to this treaty. For the United States of America, the Central Authority shall be the  Attorney General or a person designated by the Attorney General. For Ukraine, the Central Authority shall be the Ministry of Justice and the Office of the Prosecutor General. … A request for assistance shall be in writing except that the Central Authority of the Requested State may accept a request in another form in urgent situations.”

Donald Trump is not the Attorney General of the United States, nor has the Attorney General publicly produced a document designating him the US government’s requesting authority under the treaty. Volodymyr Zelensky is the president of Ukraine, not a principal of its Ministry of Justice or Office of the Prosecutor General. A request by phone is not in writing, nor are matters years in the past and already subject to substantial investigation “urgent.”

Donald Trump made a request he had no authority to make, to a person he had no authority to make it of, in a form he had no authority to make it in. That’s at least three violations of the “Supreme Law of the Land.”

So, what’s a “high crime?” It may sound like a synonym for “serious crime” — espionage, treason, assassination, that kind of thing — but it’s actually a “term of art”  more concerned with the person committing the act than the act itself.

As Alexander Hamilton put it in Federalist #65, “high crimes”  for purposes of impeachment are “offences which proceed from the misconduct of public men, or, in other words, from the abuse or violation of some public trust.”

Donald Trump’s public trust, per the Constitution, includes “tak[ing] care that the laws be faithfully executed.” Instead, he violated “the supreme Law of the Land,” then publicly confessed to doing so, then corroborated his confession with evidence.

The “smoking gun” has been there the whole time. The rest is just details and politics.

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