Take That Money

(Paul Jacob) – I didn’t notice it right away, but President Obama included some strange stuff about student loans in his State of the Union address. He called the current system an “unwarranted” taxpayer subsidy to banks.

Well, yeah. His solution? Another unwarranted taxpayer subsidy.

The president seeks to give families a $10,000 tax credit for sending kids to college. He also insists that no student spend more than 10 percent of his income to pay back loans, and that the unpaid portion of loans be forgiven after 20 years.

Further, if the former student happens to work for the government, the loan would be forgiven in half that time — just ten years!

This amounts to a huge special favor to government workers, of course. It may sound nice and patriotic when the president calls it “public service,” but it seems less so when you realize that government workers now earn, on average, more than private sector workers. Perhaps the fact that public employee unions are a big spending political powerhouse for Obama and Democrats matters in some small way.

Alas, more vote buying.

The president used an interesting phrase, explaining what he’s up to. He instructs us to “take that money” now loaned by banks and “give to families.” This is pseudo-specific. It’s not the same money.

But a politician obscuring the real source of wealth is nothing new.

(Mr. Jacob is chairman of the Citizens in Charge Foundation)