Elizabeth Warren’s QE for Students: Populist Demagoguery or Economic Breakthrough?

Published on The People’s Voice, by Ellen Brown, June 17, 2013.

On July 1, interest rates will double for millions of students – from 3.4% to 6.8% – unless Congress acts; and the legislative fixes on the table are largely just compromises. Only one proposal promises real relief – Sen. Elizabeth Warren’s “Bank on Students Loan Fairness Act.” This bill has been dismissed out of hand as “shameless populist demagoguery” and “a cheap political gimmick,” but is it? Or could Warren’s outside-the-box bill represent the sort of game-changing thinking sorely needed to turn the economy around?  

Warren and her co-sponsor John Tierney propose that students be allowed to borrow directly from the government at the same rate that banks get from the Federal Reserve — 0.75 percent.
They argue//

… Which Is a Better Investment, Banks or Students? … //

… Banks Are Good Credit Risks Only Because They Are Backed by the Government: … //

… Investing in our young people has worked before and can work again; and if Congress orders the Fed to fund this investment in our collective futures by “quantitative easing,” ithttp://itsoureconomy.us/2013/06/japan-shows-the-way-monetary-easing-public-works-and-promotion-of-entrepreneurship/ need cost the taxpayers nothing at all. The Japanese have finally seen the light and are using their QE tool as economic stimulus rather than just to keep their banks afloat, and we need to do the same.
(full text with many hyper-links).

Links:

Extreme capitalism of the Muslim Brothers: The neoliberal policy of Egypt’s new president Mohamed Morsi looks very much, on Le Monde Diplomatique/english edition, by Gilbert Achcar, June 2013;

Photo Gallery: Brazil rocked by largest protests in decades, on  Russia Today RT, June 18, 2013;

Iran: Les sanctions ont désormais un fort impact sur l’économie, dans Alternatives Internationales, entretien avec Nader Habibi, Juin 2013;

Retraites: les efforts ont déjà été faits, dans Alternatives Economiques, par Guillaume Duval, Juin 2013.

Comments are closed.