GOP Hypocrisy: Why You Should Care

Isn't it quite interesting that GOP leaders have recently been concerned with the nation's deficit, and been the "responsible" party when it comes to proposing mitigation measures? It should be, especially since the GOP was largely responsible for the out-of-control Bush-era spending frenzy. And, since they have no problem digging our great nation a deeper economic grave, so long as it benefits the wealthy in the process.

Recently, the GOP has been all in a lather about the Obama Administration's efforts to allow Bush-era tax cuts for the wealthy to lapse. Permitting these tax cuts to continue would cost the country roughly one trillion dollars, but the GOP has no problem granting the remainder of Americans the pleasure of footing the bill. When it came to extending unemployment insurance, however, the GOP came out in ardent opposition. Keep in mind extending unemployment insurance had a price tag of only 33 billion.

I find it sad, frankly, how the GOP relies on its tired propaganda ploy of raking in support from those who in no way benefit from these tax cuts by insisting they are essential for job creation. The argument simply claims that allowing the wealthy to keep more of their money will provide incentive for hiring the rest of us. This trickle-down theory, though, has been sensibly refuted almost since its inception. Ultimately, granting leniency on the rich does not in any way mean that you will have a job as a result.

Time for a reality check; if your family makes less than 250k annually, the GOP does not care about you. Arguably, even if you do, they only care about the top percentile within that margin. They count on the rest of us to buy into failed arguments. The GOP must honestly have the majority of us pegged as a bunch of rubes.

If you want to ensure better representation and less pandering to the wealthy, I have only one piece of advice I can impart: change the channel from Fox News and try listening to NPR or another source of truly unbiased reporting. You can also study up on economics so you can be savvy when it comes to economic issues that affect us, the working class, the most.

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Making the Case for Student Loan Forgiveness: A Flat June for Jobs and Consumer Spending

Today the news is riddled with the latest numbers on nonexistent consumer spending and job growth. This trend, that has arguably been perpetuating for at least the past two years and will continue for the foreseeable future, highlights a favorite argument of mine: forgive student loan debt - it will do unbelievably more to stimulate our economy than previous measures have to date.

Why, you ask? Well, with stagnant wages (for those who can even manage to find employment), which are grossly disproportionate to tuition rates/student loan indebtedness, its no small wonder why our nation's educated cannot afford repayment, let alone discretionary spending to bolster our economy. The proof, beyond disastrous unemployment numbers, can be seen in the unprecedented rate of student loan defaults coupled with persistently flat consumer spending. Basically, if the countless numbers of graduates flooding the market every year cannot infuse our economy with a much needed spending injection, who can?

Many point to the recent Income Based Repayment (IBR) incentive, and loan forgiveness after ten years if you go into the public sector. This in no way solves our spending woes. First of all, IBR does not apply to private education loans. If you have ever studied abroad, or as is additionally true in my case, studied for the bar, chances are better than not that you financed such endeavors with a private loan. I am in roughly 30k in private loans. Further, IBR sounds like such a breath of fresh air, but when you consider that payments are 15% of your AGI, they lose any semblance of helpfulness when you crunch the numbers. Add those heaping private loan payments, and families are lucky to afford essentials, let alone a mortgage or new car payment. And, forget about taking the family out on the weekends or purchasing luxury items, such as home electronics or that new washing machine you have been eying.

So what is the solution? Well ultimately I feel that our lawmakers have to address the out-of-control tuition problem. In the short term, however, our country can seriously benefit from getting our graduates spending again! I will tell you, with what my fiancé makes, and with what I can expect to make if I can find work, there is no way we will be able to save money, let alone infuse the economy. If, on the other hand, we didn't have to dedicate 15% of our income plus payout to private lenders, then we could make plans to buy a home in the near future or even get married. So we get college grads spending again, by either flatly forgiving student loan debt or substantially lessening the burden on graduates. I know that this means increasing the deficit, but the alternatives are far worse...