Opinion: Forgiving Loan will stimulate Economic Growth By The cost of higher education is all time high, and every graduation marks the release of a cohort that owns the government big time. In the society, the idea of owning the government has been used many a time to argue against the debtors. But it goes beyond those words. The debtors are individuals who get in the job market with no guarantee for a job. They are clouded by a mist of uncertainty and constant fear of finding a reliable source of income in the shrinking economy.
Nevertheless, the government has in place some terms of payment that work differently for the loaners (Carey). In reality, no matter how the payment is done, the loans are proving a burden to the graduates even after securing jobs in the in the society. Forgiving the students loans would steer the economy in a number of ways. They would better the society and leave it a better place. One basic aspect that will work with such an education policy is that more people will get a decent education.
The vast majority who were held back by the thought of having to pay back such monies will no longer hesitate to go to class. More people in the society will become literate. There will be increased know-how in technology and innovation leading to the birth of new ideas and inventions. Consequently, the new discoveries and accomplishments will fill a gap in the economy. Actually, education comes with other elements like financial literacy. People invest wisely in the society. Additionally, forgiving the students’ loan is more of a micro policy.
The elements that define microeconomics argue those such aspects as buying power, the power to invest, and the general spending power of a population. Ideally, we have a number of grads who have jobs in place. As much as they are learning, a large proportion of their wages go to the government as a loan payment. With staggering interest rates, what they would have to pay in the long run leave them with little in their pockets. Forgiving these loans would earn them spending ability.
Practically, a spending population sets the economy rolling. There is a continuous flow of goods and services from different avenues in the country. Consequently, business activities will give rise to new gaps in the market in terms of job and other elements. Moreover, having an extra buck to save will earn the population power to invest. The forgiven educated population will earn the ability to fund their innovations and ideas. This will create new sources of income and more job opportunities. These income generating activities will create a great deal of revenue that will trickle into the national economy.
The public will have more to spend and thus have the economy active. There will be established a new era of entrepreneurship that will provide a platform for continuous economic growth. A nation with such economic elements will register high impressive statistics regarding gross domestic product and income per capita. As seen, forgiving students’ loans will stimulate the entire economy and usher prosperity for all. Work Cited Carey, Kevin. A Quiet Revolution in Helping Lift the Burden of Student Debt. 24 Jan 2015.
26th May 2015 .