Student Loan Socialism

[arp76]

i took out a student loan (in Canada) paid it off. It sucks, I got an education and am now in the highest tax bracket --almost 50% of my salary goes to the damn government in taxes. I should have never taken that student loan and been a contributing member of society

[Markam44]

This doesn't add to the national debt or the deficit. It reduces both. For some reason people forget about basic banking principles just because he government is involved. If you open a bank on Dec. 31st and make a loan for $1000, then close for New Year's Eve, have you posted a loss of $1000 for the year? Of course not? That loan is a capital asset for your bank, not a loss or a revenue item. You calculate the NPV of the future cash flows. So does gov't.

[hexzerg]

@Markam44 You make no sense. How can the government loan when the government is in debt? In fact it is in trillion $s in debt. How can it loan what itself does not have? It has to borrow, increase taxes, or print money. I'm sorry but the money for student loans do actually have to come from somewhere.

[Markam44]

@hexzerg Every bank is in debt to its creditors/investors who provide the capital for the bank to loan out. A loan is not money out the door, that is a grant. A loan is an asset. Think accrual accounting. Except for one type of federal student loans, all direct student loans are currently running negative subsidies which means they are projected to make money over the life of the loan. They only appropriate the difference, which is less than $0 in this case.

[locknes2008]

@hexzerg yep they print away federal reserve which is a privately owned collects intrest on the debt

[illnastic]

government loans or private loans....well I'd rather not get raped in the ass so Im gonna go ahead and go government.  Debtors prisons were outlawed years ago its not like they're gonna lock me up and throw away the key....

[DonJack1776]

Hey, why doesn't the federal government just stop insuring student loans? It costs us billions of dollars to do that? Or better yet, why don't banks get out of the student lending business altogether? It would save the tax payers much more money if the federal government would do it. Oh right! I forgot. The CEI is a corporate propaganda mill that has no problem with the corporate welfare that the student lenders get. My bad.

[hyperseauton]

It's HowTheWorldWorks as a shopping network presenter!

[CodisOmodis]

Lee is such a right wing tool. I bet he would blow any conservative on capital hill.

[dannidandannikins]

You should be careful asserting that people you dislike are closet homosexuals. People may question the psychology from which those insults spring.

[TheAtomicSkull]

I like most of what your saying but I can't, after researching this one myself, agree with ya here

[freesk8]

Marvelous video!

Great job, folks.

[ObamaWatch1212]

Slight Mozy parody?

[whoo689]

Otherwise, I'm afraid the CEI will embarass itself and show just how much in the tank they really are for big business.

[whoo689]

No offense, but it seems to me like every video I watch the CEI comes off as just corporate shills. I understand that a lot of policies designed to "reign in greedy bankers" or 'greedy' this or that are bad for the economy and consumers overall, but the CEI NEVER seems to defend consumers against corporate abuses of power, esp. when it's clear consumers would not benefit from pro-corporate policies at certain times. And you guys don't mention how the GOP is the party of Wall St.

[anti0918]

Corporate fraud is handled by the courts. If you're talking about policies that favor corporations - thank the source of the force, namely, the government that created the policies. Obviously the companies that influence such politicians are acting irrationally, but so long as politicians are free to create laws that violate rights in order to favor certain companies, those companies will be willing to buy the politicians.

[Scammington]

You might be interested in the book written by CEI's former Journalism Fellow, Tim Carney. It's titled "The Big Ripoff: How Big Business and Big Government Steal Your Money." Available on Amazon. It won 1st place in the 2008 Templeton Enterprise Awards!

[whoo689]

And doesn't the gov't ALREADY subsidize banks for student loans? Or at the state level, institutions like MOHELA from my home state of Missouri? Are you proposing keeping the status quo or a return to totally free-market "student loans"? I'm a libertarian myself, so I obviously am no Marxist, but I highly doubt totally free-market student loans would work. It obviously didn't work before. Unfortunately, I think we have to admit gov't has some role here, and banks do not lend easily.

[whoo689]

Isn't the student loan 'industry' pretty much a creation of the federal gov't anyway? I mean, there weren't a whole lot of student loans and students getting college BEFORE the end of ww2, that's for sure. Why do you think we had a GI Bill and the introduction of so many student loans in the 60s? Not that there aren't problems, but let's not fool ourselves into thinking students loans are a free market by any sensible meaning of the term.

[whoo689]

Was the CEI for or against the bank bailouts? I really don't remember if you guys even made a video on that. The CEI, if it wants to prove itself as pro-market AND pro-consumer, needs to expose corporatism, subsidies and other forms of corporate welfare which give barriers to entry and an unfair advantage against smaller businesses in industries.

[SDNihil1]

Either Palin/Dement 2012 or Palin/Rand Paul 2012. Also stop with he nwo stuff. My channel has factual debunks w/ proof(not from the news either) debunks to the 9/11, fema,illuminati, 2012 Planet X Theory, heck just click my playlists. There's debunks 4 all these conspiracies. Yes every 9/11 conspiracy. Yes it has been done. I list the sources in the descrptions too. Google The Alex Jones Deception. I even debunked Loose Change 2nd Edition. I even used ur source vids & info 2.

[TheJosephPrice]

The New World Order is coming bro.

[Scoforever]

LEE DOREN! LEE DOREN!

Lee you would never work for the government. Good thing too because you would convince people too support the government.

[DCStream]

I'm sold. The Fed should pay for more of these.