Rep. Cindy Axne: Joe Biden's Deadbeat Bailout isn't inflationary

Rep. Cindy Axne, (D-IA), insists that Joe Biden's Deadbeat Bailout, known by the MSM as Biden's student loan forgiveness proposal, isn't inflationary. Apparently, we've either found a dishonest Democrat or another economically illiterate Democrat. It's possible that she's a little of both.

Rep. Axne is quoted as saying "I hear from realtors that student loan debt is strapping people from buying new homes. When folks buy a property, not only does that help the economy — with, you know, paying for the house to be built and those workers to built it, but it's all the stuff they buy to put in there — that creates jobs in America for appliances and things… if they build a family, all this stuff. It helps build our economy. So, I'm glad to see this is something that will not impact inflation negatively."

That's a lovely theory and anecdote but it's detached from what Jay Powell said at the annual Jackson Hole Symposium on Friday.

Powell said this during his speech: Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.

While Rep. Axne talks about a pie-in-the-sky economy, Jay Powell essentially said the Fed will have to hurt the economy before it gets better. The deadbeats most likely to benefit the most are the people who can most afford it. The current eligibility limits are for individuals making $125,000 a year or couples making $250,000 a year. Here in the Midwest, that's a pretty healthy wage.

For the record, I don't begrudge these people making lots of money. I just don't like them not meeting their contractual obligation. A loan of any type is esssentially a contract. The government borrows the student some money in exchange for the student agreeing to repay the money with interest. The Biden plan is different. Under Biden's plan, a student borrows the money but then doesn't repay the loan. Enter Joe Biden. His plan essentially tells people who didn't borrow the money to pay for the student loan with higher inflation, lower economic growth and more economic pain.

How is that fair to the people who didn't borrow the money? How is it fair to people who worked hard and lived without the newest this or the fanciest that? These people didn't sign a contract. Joe Biden essentially put a gun to these people's head and said 'you're now on the hook' for other people's loans. This overconfident Biden won't play well in Iowa:

This is what Committee for a Responsible Federal Budget President Maya MacGuineas told FOX Business:

What we're hearing is a lot of baseline games, which means people, in order to make the claim that this wouldn't be inflationary, are assuming that this wouldn't be inflationary at all. Compared to something that wasn't the law, you can say it wasn't going to be inflationary. But compared to what was going to happen, it is inflationary."

This will stop whatever momentum that Biden had started to build. Finally, about 7:40 into this video, a man had the line of the week:

The man said "I think he's trying to buy votes with the 20-somethings hoping that they're going to vote for him but he's gonna run off all the 50-somethings who paid off their student loans." I think that man is exactly right. The issue of fairness matters with this issue.