In a recent statement released by Senator Manchin criticizing the Biden student loan forgiveness scheme, Senator Manchin offered the advice of “going to work for the federal government” as a plan to pay off student loans. While Senator Manchin’s criticism of the Biden plan is well placed, he fails to address the real problem facing many West Virginians and Americans: The Student Loan crisis is caused by an over-inflated Higher Education cost.
      Higher Ed costs in America have risen at an alarming rate. According to educationdata.org, it costs approximately 37 times more to attain a college degree than it did in 1963. The cost of a college education increased 31.4% from 2010 to 2020. There is no logical reason for this kind of increase. CNBC reported in May of 2021 that college education costs have increased 169% since 1980, while the starting salary for a new bachelor’s degree graduate only increased 19%. What is the justification or reasoning behind the increased costs?
      It is the unlimited availability of student loans to borrowers without demonstrating creditworthiness that is the root problem that is not addressed by the Biden plan. There is not even a test to determine whether a person can realistically expect to be able to make a payment on loans for a particular course of education based on salaries available upon graduation. This availability of easy money has allowed higher education institutions to drastically increase costs to students because there has been no constraint applied to increases in tuition through a test to determine the feasibility of repayment for a particular program of instruction.
      While the American dream has historically included higher education matriculation and graduation, it also now includes the nightmare of Student Loan repayment. I personally agree with those that feel borrowers should pay the loans back and that forgiveness is an inequitable move considering more prudent individuals that did not take student loans aren’t receiving a benefit. I wonder, what if we gave all taxpayers making below $125,000 per year that did not receive $10,000 of student loan forgiveness an additional $10,000 income tax reduction? It’s a shame no one in Congress accomplished that task. Yet again, Congress and the President have pursued the lazy solution of printing more fake money to dig ourselves out of a hole. It has never worked before and will not work this time.
      What is even more shocking than the forgiveness is Senator Manchin’s solution to just work for the government. Now, given his glib response, I can somewhat understand how we arrived where we are in West Virginia. When I was born in 1981, the population of our state was approximately 1.8 million. There were 100,000 people (approximately) that worked for the State of West Virginia when I was born. 41 years later, the population is still approximately 1.8 million, but 300,000 people work for the State of West Virginia. This increase was instituted largely during the political career of Senator Manchin. From his time in the House of Delegates to Secretary of State, to Governor, to now US Senator, the number of individuals working for our state has grown almost 3 fold.
      While student loan forgiveness for public employment is vital to attracting and retaining key people in high-demand positions in government, we have got to focus on growing and maintaining the private economy of the United States and the State of West Virginia. We must invest and support the redeployment of the workforce in the private sector from the public sector. If we are to foster liberty and reduce taxes, we must reduce the size and scope of government. We need to redefine “Safety and Security” to move the government away from the overreaching tyrant it has become and refocus its efforts on protecting personal liberty while preserving safety and security.
      Providing incentives to private employers and student loan borrowers to create manufacturing jobs in the United States would be a great first step. States and the Federal Government could provide remarkable tax and interest rate incentives to motivate industry innovators to create jobs here. The reasoning for doing it is also readily apparent. The post-2020 world has taught us that the offshoring of the manufacture of essential goods over the past 60 years in the United States has left us vulnerable as a country and inept at manufacturing the simplest of essential goods.
      As always, it seems the left, including Senator Manchin, shuns a solution that involves hard work and self-reliance. The solution to the left seems to be either a government handout or joining the government. If we want to see an increase in personal freedom in this nation and less of a reliance on government aid and assistance, we have got to reduce the size and scope of government. “More government” has never been a good long-term solution for a society that esteems individual liberty and responsibility. Any discussion of solving the student loan crisis has got to start with the institutions receiving the money.
Unfortunately, our Congressional leaders and the President refuse to address that issue.