Countering are policy analysts and economists raising various policy and fairness arguments against it (see Justin Wolfers at Freakonomics, among many others).
So, is the case for student debt forgiveness senseless?
I will argue that it has a deep logic to it. Even if one does not ultimately agree to the proposed policy.
The education system, argues Bryan Caplan, is mostly about signaling.
You prove to employers that you are smart, hard-working, and docile.
So, is the case for student debt forgiveness senseless?
I will argue that it has a deep logic to it. Even if one does not ultimately agree to the proposed policy.
The education system, argues Bryan Caplan, is mostly about signaling.
You prove to employers that you are smart, hard-working, and docile.
To get those papers, a student spends years and a fortune. And might leave with $100,000 in debt.
Going to the job market, one isn't intuitively seeing that his education has neither helped his current job - it mostly does not at all. Not is it visible how it improves one's job prospects.
That CVs of those without a degree are not looked at is true and known. But this is not that visible to be felt and experienced as worthwhile enough.
The full feeling of unfairness is a summary of the multiple factors:
1. The education itself is very wasteful. Not adding much value.
2. The cost is extreme. And it is made expensive by various idiotic and irrational aspects of "the education system"
3. The effects on employment are random. Not all are benefitting. Especially the drop outs.
4. Most effects are not visible enough to feel justified.
Thus, the policy analysts might be right. But those two groups are talking at cross purposes.
That CVs of those without a degree are not looked at is true and known. But this is not that visible to be felt and experienced as worthwhile enough.
The full feeling of unfairness is a summary of the multiple factors:
1. The education itself is very wasteful. Not adding much value.
2. The cost is extreme. And it is made expensive by various idiotic and irrational aspects of "the education system"
3. The effects on employment are random. Not all are benefitting. Especially the drop outs.
4. Most effects are not visible enough to feel justified.
Thus, the policy analysts might be right. But those two groups are talking at cross purposes.
Students straddled with debt, feeling to have been dealt an utter injustice, have a point to feel that forgiving this debt is justice done
.
The policy analysts are doing a completely different analysis. About fairness in total in society, and about the consequences of forgiveness, economically and for future students.
I hope I helped both camps understand each other slightly better.
The policy analysts are doing a completely different analysis. About fairness in total in society, and about the consequences of forgiveness, economically and for future students.
I hope I helped both camps understand each other slightly better.
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