Elizabeth Warren: ‘No evidence’ that canceling student debt will lead to inflation
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While appearing on CNN’s “New Day” on Thursday, Sen. Elizabeth Warren, D-Mass., again called for the cancellation of student loan debt in the wake of record inflation.
Warren, who has repeatedly offered to cancel the student loan nationwide debt, reaffirmed its support for President Biden to cancel up to $50,000 in loans.
Co-host John Berman noted that several people are concerned that this policy will cause inflation rates to worsen as more money is poured into the economy.
Warren, however, denied that debt cancellation would be a problem.
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“So keep in mind that even conservative economists say, ‘No, maybe, maybe it could have about a 0.2 to 1% effect on inflation. There is simply no evidence that canceling student debt contributes to inflation,” Warren said.
In April, several economic experts criticized President Biden’s initial support for the cancellation of $10,000 in student loan debt. They suggested that the policy could increase the current inflation rate between 0.3% and 20%.
Despite the backlash against the plan, Warren reiterated the need to “ease the payment burden” for the working class.
“But here’s what it does. It eases the payment burden for many working families. Keep in mind that only 58% of people who have student loan debt actually have a college degree. The remaining 42% have tried and god bless them but pregnancy they were trying to work three jobs and couldn’t quite hold them they are earning now like a high school grad is earning but they are trying to manage student loan debt and this crushes them,” Warren explained.
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In January 2020, Warren was confronted by an angry father over her desire to forgive student loan debt.
“I just wanted to ask a question. My daughter is leaving school. I saved all my money. She doesn’t have a student loan. Will I get my money back?” asked the father.
“Of course not,” Warren replied, without hesitation.
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She concluded Thursday by saying, “Cancelling $50,000 in student loan debt would be a huge relief for tens of millions of working people. And at the end of the day, I think we need to do more to make this economy work for working people. . That’s what our policy should be directed towards.”
Fox News’ Morgan Phillips contributed to this report.