(Molly Bruns, Headline USA) Sen. Elizabeth Warren, D-MA, made it clear that she would be happy to see President Joe Biden go full-on authoritarian and fully cancel student loans, The Daily Wire reported.
Warren has long been an advocate for the cancellation of student loans, but came out in open support for debt cancellation via executive order on CBS News’ “Face the Nation.”
“I know you believe the president can just erase it essentially through executive orders,” host Margaret Brennan began. “But both the White House and Speaker Pelosi have said he may not have the authority, that Congress would have to act here. Have you persuaded the White House otherwise?”
“Look, we know that the president has the authority to cancel student loan debt. And the best way we know that is because Obama did it, President Trump did it, and President Biden has now done it repeatedly,” Warren claimed.
“Extending the deadlines, you mean there?” Brennan pressed.
“No, no. They have canceled. Remember, they have canceled debt,” Warren repeated, referring to the past presidents again. “Understand on cancellation, this is something the American people want, and it’s something that tens of millions of people need.”
Brennan responded by pointing out that a key concern for the upcoming midterm elections is the impact of inflation, and asked if Warren believed if waiving the debt would make inflation worse.
“No, it is not inflationary,” Warren objected. “Not paying student loans has been baked in for three years now. But keep in mind, as President Biden himself says, the way we deal with inflation is not by making people poorer. The way we deal with inflation is we attack high prices head-on.”
“Not everything has to go through Congress,” Warren said, again calling for Biden to act alone.
A report from the Commits for a Responsible Federal Budget says cancelling student debt would definitely accelerate inflation, but would not have an immediate effect.
“The inflation effect of cancelling $1.6 trillion in student debt would be small relative to the enormous amount involved, since repayments are spread out over time and the benefits of debt cancellation accrue mainly to higher earners, who tend to save more of their money.3 However, the increase is significant relative to the underlying inflation rate. It would represent a 4 to 20 percent increase relative to the Fed’s latest inflation forecast and a 5 to 25 percent increase above its target,” the report concluded.
The report also warns that extending the payment moratorium could have a similar effect.