(The Daily Signal)—Past is prologue when it comes to the student-loan policy of progressive grandees. Hoping to hear an adoring public applaud one last time, the Biden-Harris administration released a fourth round of rules canceling student-loan debt on Oct. 25.
First came the mammoth $430 billion plan birthed before the ’22 midterms that made the student loans of 40 million borrowers eligible for cancellation.
That died the following spring at the Supreme Court only to be succeeded by the “Saving on a Valuable Education” plan, which drastically reduced the income borrowers must contribute toward repaying their loans at an estimated 10-year cost of $475 billion.
SAVE, which two Democrat-appointed judges enjoined in April, was then followed by four related rules canceling the debts of borrowers who have spent a long time in repayment without actually repaying their loans.
The latest proposal is another example of the administration’s ingrained reflex to respond to its own unpopularity with spending. Although the general objections to it are familiar, still, specific features of the latest plan are worth examining, especially because of their timing.
At this stage, the proposed rules would not be finalized until 2025. Moreover, the rules’ stated pretension is to provide an avenue for debt cancellation for “student loan borrowers for generations to come.”
The rules create two new paths for cancellation: a one-time automatic cancellation initiated by the secretary of education for loans at risk of default and an ongoing option that borrowers can access by application that “holistically” demonstrates the borrower’s hardship.
Purportedly, these address borrower needs not “sufficiently” covered in the preceding rounds of rulemaking or by readily available loan deferrals. That may be the closest the administration gets to acknowledging the redundancy of its plan that layers forgiveness atop forgiveness.
Much like the previous efforts, there’s a good deal of dissonance in how the administration presents the rule to different audiences. The Department of Education heralds the rules publicly as a courageous achievement, power procured through a righteous fight to provide “hope to millions of struggling Americans,” something no other administration has done before.
At least that last bit is true. But the rules themselves attempt to speak softly and modestly to a mostly legal audience, insisting that they are not the creation of some strange new power, but only a specification of how the secretary intends to apply the discretion that he has always had.
And though the rule is supposed to help “millions,” the secretary assures would-be critics that he will exercise his discretion only in “relatively rare” circumstances where “the costs of enforcing the full amount of the debt are not justified by the expected benefits.”
So, rest assured, dear taxpayer, these rules will save you money despite all appearances that your money is being given away.
Officious paternalism works tolerably well as a description of the rules’ tenor. The administration promises to anticipate and address borrower needs before they even arise by authorizing the Department of Education to cancel loans automatically if the department deems them at risk of defaulting.
How does the department make that determination? By consulting a “non-exhaustive” 17-factor list, of course. How else?
The borrowers the administration hopes to assist are evidently so distressed that they have not even bothered to apply for relief. Perhaps after years of COVID-19-based transfer payments and the gratuitous benefits of previous loan pauses and cancellations, borrowers are just accustomed to receiving without asking.
But then it falls to the rest of us to ask: Does any other segment of the population receive this much financial solicitude from the federal government?
The proposal’s most audacious quality is not its indulgent attitude toward borrowers, but its insouciance toward the matter of legal authority.
Since it took office, the Biden-Harris administration has combed the statutes for the few stray words they could morph into transformational debt-cancelling authority.
Keep it simple. Avoid the scams. Let Genesis rollover your retirement accounts into a self-direct IRA backed by physical precious metals.
To date, they’re still searching for a rationale that would satisfy a judge. But the fact is, they are out of plausible alternatives, so they are recycling the same tortured reading of the Higher Education Act used to justify two of the preceding attempts.
Courts have already previewed the merits of this argument: Two Democrat-appointed judges have found that opponents of the rules are “likely to succeed on the merits” of their legal challenges. But that has in no way dissuaded the administration from this fourth attempt because the administration refuses to take the hint.
In the twilight of Biden-Harris administration, its policy approach resembles a movie studio that has misunderstood its audience and run out of ideas to keep them engaged.
These rules are sequels that appeal only to the most niche audience—the coalition of organizations dedicated to the abolition of student debt and their enablers within the Department of Education.
With the broader American audience, the approach is a liability. A poll conducted by University of Chicago Harris School of Public Policy found that 40% of Americans “strongly disapprove” of the Biden-Harris administration’s repeated intrigues to transfer student debt to taxpayers. Another poll from the libertarian Cato Institute found that roughly 70% of Americans disapprove of student-loan cancellation when apprised of its effects on taxes and inflation.
Nevertheless, the administration persists in offering the same non-cure for the student-debt ailment. Despite the administration’s professed interest in addressing “root causes,” these rules, like their predecessors, barely acknowledge, let alone address, the variables that have made higher education such a debt-intensive undertaking or the variables that make the American economy one in which it is difficult for borrowers to repay the burdens they have assumed.
Instead, it cues up another installment of bourgeois socialism, a redistribution of monies to those who have spent too much money to attain fewer privileges than they would like.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.