Judging Freedom - Biden Answer to Student Loan question.

Episode Date: August 25, 2022

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Resolve to earn your degree in the new year in the Bay with WGU. With courses available online 24-7 and monthly start dates, WGU offers maximum flexibility so you can focus on your future. Learn more at wgu.edu. Hi everyone, Judge Andrew Napolitano here for Judging Freedom. Today is Thursday, August 25th, everyone. Judge Andrew Napolitano here for Judging Freedom. Today is Thursday, August 25th, 2022. It's a few minutes before three o'clock in the afternoon here on the East Coast of the United States. Yesterday at about this time, President Biden announced a form of loan forgiveness for For people who took out student loans to pay for higher education, if you earn less than $125,000 or combined with from, either a $10,000 reduction in the principal you owe back

or a $20,000 reduction in the principal that you owe back. This, of course, has been met with some delight on the part of people that owe money. If they owed $90,000, 80. Or if they owe 90 and they fit in the other category, they now owe a 70. So those people are happy. A lot of Democrats are unhappy because they thought the president somehow, I don't know how you could do this legally, could have and should have wiped out all student loan debt. Republicans are generally unhappy with this because this is going to cost a few hundred billion, billion dollars, which will add to the national debt. But I'm laughing because you'll probably chuckle with me. When the president was asked if it was fair to those who had paid back their loans or fair to those students who went to school and didn't take out loans, that suddenly a category of former students, not current, former students has this loan reduction. Take a look and listen at his rather bizarre response.

Is this unfair to people who paid their student loans or chose not to take out loans? Is it fair to people who, in fact, do not own multi-billion dollar businesses and see why these guys get involved with that business? Is that fair? What do you think? What about people who paid their loans, though, struggled to pay their loans, and now others don't have to? So he obviously didn't want to answer the question, but with the question he posed to the reporter, a little bit of a chip on his shoulder, that doesn't trouble me, but with the question he posed back to the reporter,

he's acknowledging something we've all known for years, the tax code is not fair. It's a social instrument that intends to push people into certain social behavior in order to reduce their taxes. And a lot of very wealthy people like former President Trump and people in that category of wealth manage to avoid paying taxes. I myself am in favor of no taxes. I'm in favor of you want a service from the government, you pay for the service. You don't want a service from the government, you don't pay for it. If there are basic needs, the government has a flat tax. What you owe times 2% equal what you earn times 2% equals what you owe. But that's not what we have. We have a multi-thousand page tax code that very few

human beings can understand. The president just admitted that. Okay. Does he have the authority to forgive these loans? Now remember, here's how the loans work. You're a high school senior. You apply for a federal loan. You're granted the loan. The money comes from a bank, not from the federal government. You agree to pay the bank back. The federal government guarantees that you will pay the bank back.

If you don't pay the bank back and the bank comes after you, let's say you owe $100,000, they come after you and they squeeze $20,000 out of you. What happens to the other $80,000? The feds pay the other $80,000, but you had the obligation to make that payment. Can the president on his own get rid of a portion of that obligation? Let's see what the Speaker of the House of Representatives thought about that just a year ago. People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone, he can delay, but he does not have that power. That has to be an act of Congress. Correct, Madam Speaker. Correct,

Mrs. Pelosi. Even a stopped clock is right twice a day. I don't want to pounce on her, but in this instance, whatever legal advice she got, whatever constitutional understanding she has is correct. Listen, the president doesn't want to address this, but at some point, it's going to be addressed. Someone's going to challenge this and we'll see how the courts rule. The Constitution is very specific. Only Congress can spend money. Only Congress can decide how the money is spent. Only Congress can decide who has to pay the money back, not the executive branch. Why is this happening now? Well, it won't kick in for a few months. It'll kick in when? In the middle of the midterm elections in October, two months from now.

This is almost giving away federal dollars in return for votes from a class of people that the Democrats are afraid they lost. But even worse than that, it's adding to the federal debt in a manner that is profoundly unlawful and unconstitutional. But he might get away with this because in some quarters, as you can imagine, it's quite popular. Judge Napolitano for Judging Freedom. that specializes in personalized learning. With courses available 24-7 and monthly start dates, you can earn your degree on your schedule. You may even be able to graduate sooner than you think by demonstrating mastery of the material you know. Make 2025 the year you focus on your future. Learn more at wgu.edu.