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In previewing the economic challenges faced by incoming U.S. president Donald Trump, I noted how “bubbles abound” and how “unsustainable debt” was (and is) a huge part of society’s problem.
Obviously, not all debt is inherently bad. Far from it. While there are some who adopt the puritanical view that one should never take on red ink, the truth is responsible borrowing is essential to the functioning – and advancement – of our civilization. Mortgages and business loans, for example, are critical components of our societal framework.
When debt creates value – and when it expands sustainably – it is indispensable to the creation, preservation and expansion of prosperity. When risk is mismanaged, however – and when debt is incurred in the pursuit of things which have no value (or which drain value) – things go off the rails quickly.
Just think of the extent to which our federal government has (for decades) engaged in debt-induced dependency – raiding the productive segments of society to subsidize bloated entitlements, perpetual welfare, misguided imperialism, crony capitalism and all manner of politically correct causes célèbre.
No wonder the national debt just topped $36.1 trillion – with interest payments on it rapidly approaching $1 trillion annually.
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No bubble is more pernicious, though, than the one currently enveloping higher education. Not only does this black hole suck direct appropriations from taxpayers – and rack up additional taxpayer-guaranteed debt – there is also the bubble underlying the “value” it purports to produce: Worthless degrees.
Not to mention the ongoing damage done by generational woke indoctrination…
At last count, more than 43.2 million borrowers had incurred $1.73 trillion worth of student loan debt – that’s an increase of a staggering 232.7% over the past fifteen years, per the Education Data Initiative.
This debt has become the source of significant political friction between the administration of outgoing president Joe Biden and Republican leaders at the state and federal level – with Biden seeking to unconstitutionally forgive billions of dollars worth of student loans during his term in office.
As I’ve often pointed out (as recently as last week), so-called “Republicans” in South Carolina love to talk a big game about their commitment to conservative principles – but when the rubber meets the road they consistently govern like left-of-center liberals.
It is not surprising, then, that South Carolina – where per capita incomes languish near the bottom of the national barrel – has one of the highest percentages of federal student loan debt.
How does that work, exactly?
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Good question… but per the Education Data Initiative, South Carolina’s $52.2 billion in total federal student loan debt works out to $38,770 per borrower – the seventh highest figure in the country. Certainly not all of that red ink is wasted, but it clearly isn’t benefiting overall employment – or enhancing prosperity – in the Palmetto State.
Also, while Georgia and Florida have taken steps to rein in their colleges and universities when it comes to pushing woke propaganda, South Carolina’s “Republican” leaders have done nothing… expect continue to send them billions of taxpayer dollars.
My media outlet has been outspoken it its view that no taxpayer funding should go to institutions of higher learning – either in the form of direct appropriations, loan guarantees or student loans.
Why not? Because higher education is not now – nor has it ever been – a core function of government.
Institutions of “higher learning” should compete for funding – and loans – in the marketplace based on the programs they offer. As should the students who seek degrees from those programs.
In other words, if you can get a bank to lend you the money to pursue a degree in transexual Sanskrit studies or how whale farts contribute to El Niño … knock yourself out. Just don’t expect the American taxpayer to foot the bill.
“It is time to cut this cord once and for all – to push higher education completely into the realm of the free market,” I wrote back in the spring of 2020. “There, individual institutions will sink or swim on the basis of their ability to offer a competitive product – not their ability to get politicians to hand them millions of dollars of your money.“
As core functions of government come under the microscope of Trump 2.0, let’s hope the propagandizing Ponzi scheme that is American higher education finally starts receiving the scrutiny it deserves…
BANNER: Travis Bell Columbia SC Photographers
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ABOUT THE AUTHOR …
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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