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deficits and debt media and media people nannyism subsidy

The Giveaway Epidemic

The most recent trend in vote buying is to propose huge giveaways on narrow subjects, like “reparations for slavery” (to people who were never slaves and from people who never enslaved) and “debt cancellation” (a national issue with student debt).

The most recent example comes to us from the nation’s capital, where “D.C. officials plan to cancel as much as $90 million in residents’ medical debt,” according to Jenna Portnoy’s piece in The Washinton Post.

But brace yourself: the rationale is racial. Though medical debt is a huge issue with all races of people, Washington, D.C., is majority black, and this giveaway is characterized as “an effort to ease a burden that data shows disproportionately impacts people of color.”

There is no magic presidential wand, here, however — as with Mr. Biden cancelling student debt. Nor the insane levels of “reparations” contemplated in San Francisco. In this case, the “District will use $900,000 in year-​end surplus funds* to purchase debt, for pennies on the dollar, on behalf of about 90,000 D.C. residents earning up to four times the federal poverty level or whose medical debt is at least 5 percent of their income….”

Similar schemes are in the works in Connecticut, New Orleans, Toledo, and Illinois’s Cook County.

Interestingly, some of this has to do with COVID, or, more properly speaking, the pandemic responses, which were devastating on nearly every level. Including pocketbooks. But the focus is not, here, on fixing America’s amazingly messed-​up health care system, but, instead, race and “equity.”

Over 100 million Americans are said to hold $195 billion in debt.

Before we try to correct for this mess, we might wish to inquire rationally why medicine in America is so messed up.

This is Common Sense. I’m Paul Jacob.


* The tsunami of federal pandemic funds bestowed on local governments is largely responsible for the surplus.

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education and schooling judiciary subsidy

One Way or Another or Another

The courts have not been kind to President Joe Biden’s unilateral attempt to erase some $200 billion to $500 billion in student-​loan debt. (By “erase” I mean force all taxpayers to pay debt incurred by the millions of borrowers eligible for the forgiveness program.)

Last month, a federal judge issued a temporary stay on the program while the litigation plays out.

On November 10, another federal judge, Mark Pittman, ruled that the program is a “complete usurpation” of congressional authority. Per Pittman, the U.S. is “not ruled by an all-​powerful executive [but] by a Constitution that provides for three distinct and independent branches of government.”

In consequence, the Biden administration stopped accepting applications for student-​loan debt relief. By then more some 26 million borrowers had applied.

On November 14, another federal court also blocked the program. So Biden’s debt-​transfer plan is apparently at least thrice bogged down.

Except that another student-​loan-​debt-​erasing thing has been going on since early in the pandemic, a pause on debt payments rationalized by the economic hardship imposed by lockdowns.

This pause was set to lapse at the end of this year, with payments to resume in January. But according to a White House insider “familiar with the matter,” the administration has been making “increasingly firm plans to extend the repayment pause.”

The pause also costs taxpayers money. The original rationale for it no longer exists. Like the mega-​debt-​relief program, extending the pause would also be unconstitutional.

This subsidy is also unlikely to inspire kindness from the courts.

This is Common Sense. I’m Paul Jacob.


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education and schooling subsidy

Education Fraud

It’s a mess.

Families are often sold a bill of goods regarding higher education.

Unless a student pursues a subject like computer science, architecture, engineering, or medicine, it may take decades to pay off student loans.

Graduates who specialized in Advanced Basket Weaving, the Sociology of Postmodern Literary Stylings, and Marxist Techniques for Making White People Feel Guilty just might snag a high-​paying job as an Ivy League professor or senior manager of a corporate “antiracism” task force. But beyond those few spots, opportunities are scant.

And, of course, many people who pursued legitimate studies in the liberal arts or technical subjects also don’t make enough to emerge from massive debt any decade soon. Nor does every STEM grad necessarily cash in. Individual results vary.

What to do?

The Biden administration has decided to wipe out student debt en masse, expanding the Public Service Loan Forgiveness Program so that about 40,000 student-​loan borrowers escape debt immediately and the debt of millions of others is slashed.

But is forcing others to pay this debt through their taxes — parents and children who perhaps carefully avoided taking out student loans — a just and practical answer to the problem?

The long-​term solution is to get the government out of the business of subsidizing higher education in any manner, whether in the form of direct payments to schools or loans to students. Without the massive subsidies, tuition costs would decline.

The short-​term solution? Launch an investigation into whether the U.S. Department of Education, colleges and universities — along with both Republican and Democratic administrations — have engaged in fraud against those who took out the loans. 

If students were defrauded, first seek redress from the perpetrators. Not the taxpayers.

This is Common Sense. I’m Paul Jacob.


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Accountability deficits and debt national politics & policies subsidy

What a Relief

Based on a quick look at the Edward M. Kennedy Institute for the United States Senate’s splash page, I wasn’t immediately sure what, precisely, the institute’s raison d’être might be. On the top menu bar there’s a slogan: “Just Vote.” Big clue? 

On the About page, though, we are told its mission: “educating the public about the important role of the Senate in our government, encouraging participatory democracy, invigorating civil discourse, and inspiring the next generation of citizens and leaders to engage in the civic life of their communities.”

As for the vision thing, that’s supplied by its namesake, Ted “I Survived Chappaquiddick” Kennedy: “To preserve our vibrant democracy for future generations, I believe it is critical to have a place where citizens can go to learn first-​hand about the Senate’s important role in our system of government.”

I guess that explains why the institute’s Boston location sports a replica room of the U.S. Senate chambers.

Which costs serious money, of course.

Paid for entirely by the ultra-​rich Kennedys?

Fact check: no. 

Some of it is paid for by you and me — courtesy of Congress and COVID!

You see, part of last year’s $350 billion in pandemic relief went to Boston’s memorial outfit for its once-​favored now-​deceased multi-​millionaire politician. Five million bucks, it turns out, was used (the AP tell us) to pay off the institute’s debt. 

But don’t worry: the Kennedy Institute wasn’t singled out. Relief funds — which you might think would focus on struggling local libraries, community centers, and the like — also went to building a posh hotel and a minor league baseball stadium. And much, much more.

While politicians are good at spending money, especially for “emergencies,” they aren’t good at spending it well.

This is Common Sense. I’m Paul Jacob.


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porkbarrel politics subsidy too much government

Up-​to-​Date in Kansas City?

Eight-​hundred million bucks. 

That’s the investment that “Meta” — the umbrella outfit that owns Facebook, Instagram and WhatsApp — has agreed to invest in a patch of land in Kansas City’s Northland. The plan is to build a data center at an 882-​acred development site. 

“Political leaders who gathered at Union Station heralded the news as a major development for Kansas City and the state.” This private investment “would far surpass the scale of recent projects in the region … said Missouri Gov. Mike Parson,” The Kansas City Star relates.

But there’s more.

“Meta spokeswoman Melanie Roe said the company could invest as much as $40 billion at the site in land acquisition, construction, and development of a larger data center.” This is to be a “long term partnership.”

Make that a Big Business/​Big Government partnership. The biggest ever, perhaps.

The Kansas City Council had unanimously approved a development plan for the site last April, with data centers there enabled to access to more than $8 billion in local tax incentives. “Incentive watchdog group Good Jobs First says such an incentive award would be the largest ever in American history,” The Kansas City Star explains.

Take it as a word of caution. This is not laissez faire capitalism. This is not “the free market.” It is favoritism. It unites big business and big government.

And even as an investment in future taxes — which is the ostensible justification for the subsidies — the data complex is slated to employ about a hundred workers.

Politicians don’t make the best investors. But they do make easy marks for big corporations.

This is Common Sense. I’m Paul Jacob.


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ideological culture subsidy

Slackers, Unite!

International socialists may once have rallied around “workers, unite!” but today’s young “communists” are embracing a Non-Workers movement, demanding free stuff and/​or a Universal Basic Income (UBI). 

This came to mind reading a recent New York Times’s op-​ed, “Work Is a False Idol,” and an earlier report, “These Chinese Millennials Are ‘Chilling,’ and Beijing Isn’t Happy.” A new movement in China and elsewhere, known as “Lying Flat,” extols indolence.

Instead of a career? Working hard? 

Do nothing!

Sounds like early retirement.

Very early retirement, for this is a young adult malaise.

Cassady Rosenblum, who took the trouble to author the op-​ed, quoted a poem that asked “what is it you plan to do/​ with your one wild and precious life?” and answered: “Sit on the porch.”

This “Lying flat” slacker movement reminds me of a novel I haven’t read, but whose theme has stuck with me, nonetheless: Ivan Goncharov’s Oblomov. It is about a young nobleman who spends the book recumbent, or so I’m told.

“Oblomovism” was a cultural obsession before the Soviet Revolution and a problem afterward. If no one produces, how could anyone consume?

With the character Oblomov, his lethargy merely drained the capital of his family’s aristocratic past.

With the hero of the new “Lying Flat” movement, Luo Huazhong — author of the mortal classic, “Lying Flat Is Justice” — he lives off odd jobs and his savings. So far, at least, self-sufficient. 

With Ms. Rosenblum, it’s her parents’ porch, and, thereby, their savings.

Think of what would happen were a UBI put in place. More horizontal living and less production (for redistribution). 

Oblomovism triumphs and we all lose.

After all, “Lying flat” is the perfect term for the ultimate in do-​nothingism: what you do in a coffin.

This is Common Sense. I’m Paul Jacob.


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