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this post was submitted on 05 Apr 2024
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The economic loss of losing a generation and a half of workers who will be unable to save for retirement and will put a giant strain on the economy in 40-50 years when their brains and bodies are shot, but they can't afford to retire because the money that they could have set aside went to paying student loans. It's going to be way cheaper in the long run and a better investment to forgive student loans now, than to wait for all those people to hit retirement age and not be able to afford to retire, holding down jobs that should be opening for new generations and screwing over the youth once again. Not that newer generations will be as big, since those strapped with student loans are choosing not to have kids because they can't afford it. Also if our social safety net for retirees (Social Security, Medicare, etc) is already strained, we'd better give people the best chance we can at being able to afford to save for their own retirements.
If anything, the ROI on paying off student debt is better long term than the auto and bank bailouts - because the cost of not doing it is going to affect the economy for generations.