So the White House came out prepared for those arguments. And essentially what they’re saying is that loan repayments starting next year will happen at the same time as there’s specific debt relief, they argue that it will offset.
They also say that the economists they are talking to, whether at analyst firms like Moody’s, will be neutral or disinflationary. Now, of course, there are a number of economists, even Democrats, who don’t agree with that.
The Committee for a Responsible Federal Budget actually estimated that it would cost between $400 and $600 billion. So I spoke to Jason Furman, an economist and Democrat who worked for former President Obama, and he was not happy about this announcement today.
Jason Furman, former chairman of the White House Council of Economic Advisers: I think this is a terrible policy for where we are as a country. Nearly half a trillion dollars of gasoline is being thrown into what is already an inflationary fire that we are dealing with.
The economy cannot absorb this money without generating more inflation, without generating bills that will have to be paid in the future as well. So you are helping a group in the country and hurting a lot of other people in the process.