Student loan forgiveness may be a handout to a certain sector but it's a way to shape the economy. The problem the US has is vastly expanded educational sector that's also, uh, crap. A more rigorous but less inflated system would be appropriate. But how you get that is hard to see.
The thing is, you have huge sectors; education, public transit, health care etc, that would be reasonable to improve but where privatization based capital investment have resulted in huge, costly and, well, shitty systems.
The only way out is removing a huge group of corrupt operators at the heart of each of these sectors. I don't know what hope there is of this tbh.
Yes, student loan forgiveness would bloat the education sector even more.
You could shrink the education sector by removing subsidies and tax discounts for it. (Of course, that's politically hard to do.)
> The thing is, you have huge sectors; education, public transit, health care etc, that would be reasonable to improve but where privatization based capital investment have resulted in huge, costly and, well, shitty systems.
I agree with your sentiment. I would fine tune the wording too:
'Forgiving loans people take out for an activity, would lead to more demand and greater price appreciation of that activity.'
I think the great harm was disconnecting students from the immediate consequences of their educational spending with easy to get loans.
That economic disconnect has made it ever easier for schools to charge more for less actual value. Whether in poorly directed education (exceptional education in areas with poor career potential), or simply over priced (top heavy admins, and other overhead or expenses beyond providing actual education).
Appreciation means it would increase (i.e. appreciate). Price appreciation = it will cost more. Essentially saying if you give people a bunch of money for X, the going rate of X will increase as that's how supply and demand work.
The thing is, you have huge sectors; education, public transit, health care etc, that would be reasonable to improve but where privatization based capital investment have resulted in huge, costly and, well, shitty systems.
The only way out is removing a huge group of corrupt operators at the heart of each of these sectors. I don't know what hope there is of this tbh.