I did not want to hijack anyones thread, so made a new one. The author has some valid points for the cesspool we are in.
How do we fix it?
- Debt Forgiveness for Real People — Not Corporations. Wipe the slate for student borrowers and medical debt. Start there. Let humans breathe.
I disagree with wiping debt, generally. Student loans, for example, are purely optional. Don’t go in to debt without a plan to get out. If you’re going to college to become a lawyer, doctor, business professional, engineer et cetera then have a plan. Be intentional like you would be with any debt.
The real problem here is people can now Frankenstein courses together for a degree majoring in Lesbian Cat Sexual Practices with a minor in Black People.
If you’re going to spend money on a loan, make sure it’s worth it. Use a little personal responsibility in your decisions.
I would like to see a shift in K-12 curriculum developing career ready students, however. Or at least “career prepped” the way we now teach towards college prep
2. Universal Healthcare That Doesn’t Suck. If Canada can do it, so can we. We just need fewer lobbyists and more spine in Congress.
*Hard pass. There is a whole thread discussing this scenario but I can’t remember the title to search and link it. In a nutshell, taxpayer based universal healthcare is documented to actually increase aggregate cost, with a few examples of acute costs showing more favorable used in an intellectually dishonest way to support the idea. Just like Obamacare actually increased insurance cost and then gave room for medical providers themselves to balloon service costs, universal care will exacerbate the problem.*
*What could make sense is expanding protections for people who could not get on private health plans previously, but were not bad enough for Medicare. But a universal plan won’t do this, with documentation of failure anywhere it’s implemented.*
3. Flat Tax. No loopholes. No offshore gymnastics. Just a clean, flat 10% tax on everybody — from the gas station clerk to the billionaire tech bro flying strippers to space in a carbon-fueled rocket.
Do you make money? You pay 10%. Period.
I do agree with this. Everybody pays their share. I would also like to see entitlement programs very closely monitored for abuse, and revised for more limited scope
4. Economic National Service. Want your loans forgiven or tax breaks? Serve your country — military, disaster relief, civil engineering, nursing — put skin in the game.
Sure. You’re paying tax another way. I would be more selective than nurses and civil engineers, however.
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And when these 18 year olds ever become parents themselves…teach your kids to not be financial losers.
There really is so much opportunity out there when you think about it….even if you have to temporarily spend years doing something you’re not all too passionate about in order to eventually do something you want.
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Yes. I mean somebody invented q-tips. And the “pet rock” guy in the 90’s became a multi-millionaire. And everybody remembers their early, shitty job/s.
But more generally this is the foresight only experience can provide. Which is why:
This is 100% on point. An ability to lead through your experience while they accumulate their own is exactly how you teach children to be successful, generally adjusted and resilient. It’s also how you become the platform they can launch from to climb higher in their own lives and for your grandkids, if they choose.
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I do think that student debt should be able to be discharged during bankruptcy. There are situations where it makes sense to go into debt, but then something unexpected happens. Say you went to college to become a software engeneer 4 years ago, for instance.
It would also make schools and lenders be a little more rigorous about what programs they offer and who gets the loans.
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Man.. I used to call my dad outside Walmart every day before my shift in college. Just needed the motivation and reminder this was just a moment in my career.
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But why is the lender out of luck because the borrower failed?
Isn’t that how capitalism works? Risk is built into lending.
No, but can you answer the question? I’m sincerely curious to hear why a lender should eat a borrowers hardship.
Ah, the edit. Yes, risk is built in to lending. That doesn’t mean you just discharge debt and stick it to the lender because a borrowers plan failed. Hence risk mitigation. Underwriting, collateral et cetera.
But you’re not addressing fundamental risk in lending, you’re suggesting that borrowers should shirk personal responsibility and see the consequences of their risk absolved and passed to another. I believe charity is what you’re looking for.
Should I lose money if I invest in a bad stock? Should a morgage company lose money if they rubber stamp any applicant? Should a bank that invests in a business that fails lose money?
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That’s not what I said and you know it.
Each situation should see the lender make every attempt to recover lost funds, and does. Circling back to collateral.
Mortgage lenders will keep all money received, foreclose on the home and sell it again.
Banks investing in business require collateral typically as well, and will do the same.
The stock market isn’t relevant. That’s not a loan.
You are being obstinate because you are attached to being right. Don’t be obtuse - you get the point.
Please elaborate.
I don’t think the point is applicable as @Njord was suggesting. In each scenario listed the borrower loses out on their endeavor as well. But with student loans you don’t just lose your degree if the debt is discharged. However if such was the case I could get on board with that being a risk on the bank AND borrower.
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This is an interesting idea, but after thinking about it, I’m not a fan of it.
Isn’t having to declare bankruptcy already enough of a risk? Besides, as collateral, that’s comparing apples to assholes at that point. A lender can’t monitize your degree through any other method than ensuring you generate enough income for you to pay back the loan.
Otherwise it’s just punitive and loses them money and makes people less likley to seek out educational loans in the first place.
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I would be open to a scenario where a lender can track a borrower and resume payment schedules throughout life in the event agreed upon collateral in exchange for failed payment terms doesn’t exist. Especially for federal loans.
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I think that’s a perfectly reasonable idea. And better than the current situation.
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But I’m talking like no new loans, rental upgrades et cetera adding to budget, with budget oversight for the lender post term default.
I kind of agree, but think there has to be some financial flexability to build a life.
What do you think about converting student loans into something like an AOI principal loan?
Edit: I missed the post term default line. Then I do agree.
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