President Joe Biden’s plan, announced Wednesday, would forgive up to $10,000 in federal student loan debt for borrowers who make under $125,000 a year — and up to $20,000 for some low-income borrowers. But as many remain skeptical, the Biden administration has taken to accusing GOP lawmakers who took out Paycheck Protection Program loans — which were designed to keep businesses afloat during forced government shutdowns and be forgiven — of hypocrisy.
“Many businesses took that money. They took that money not out of greed, but because the government had shut down their businesses,” Shapiro said. “They took that money because the government was begging these businesses to keep their employees afloat.”
“This is morally reprehensible; it’s disgusting,” said Shapiro in a monologue Friday. “If you are a business owner who just wants to operate and keep your employees employed, the government will shut you down, they’ll destroy you financially, they’ll promise you help, and then two years later, they’ll destroy you reputationally. They’ll tell you that you’re a good person for ensuring your employees can support their families, and then two years later, they’ll use that as leverage to force you to support their politically driven plan to bail out their favored political constituencies.”
Biden’s plan has also been criticized in mainstream Democratic circles, including the Washington Post’s editorial board and former Treasury Secretary Lawrence Summers. Last year, House Speaker Nancy Pelosi (D-CA) was also skeptical of unilateral plans to cancel student loans, explaining to reporters that Biden didn’t have that kind of power.
Nixing $10,000 of student loan debt per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to a nonpartisan analysis from the University of Pennsylvania’s Wharton School. A report from the Brookings Institution observed that one-third of student debt is owed by the wealthiest 20% of households, while only 8% is owned by the bottom 20% — likely because graduate degrees are often necessary for the most lucrative professions.
“Democrats believe that everyone should be able to follow their passion on your dime. And so they are happy to slander you as a deadbeat for being responsible, while praising deadbeats for following their dream to become a professional finger painter. You’re the bad guy. After all, you’re the one who pays the bills. And only suckers pay their bills.”
Shapiro also noted that Biden doesn’t seem to want a legal reason for debt forgiveness, just as he didn’t need a legal excuse for past unconstitutional actions.
“Just like he didn’t need an actual legal excuse to use the Occupational Safety and Health Administration to cram down vaccine mandates on 80 million Americans before he was stopped by the Supreme Court. Just like he didn’t need an actual legal excuse to use the CDC to cram down eviction moratoria before he was stopped by the Supreme Court.”
“If you own a business, they hate you. If you paid your student loans, they hate you. If you are a responsible member of the free market economy, they hate you,” Shapiro said.