ALL RIGHT, THAT IS MY RIFF.
JOINING ME NOW, TO WEIGH IN ON
STUDENT LOANS IS MY GREAT PAL
STEVE MOORE, FREEDOM WORKS
COMMITTEE TO UNLEASH PROSPERITY
HOTLINE AND AUTHOR OF
"GOVZILLA."
STEVE, I’VE BEEN READING YOU,
FOX, ELSEWHERE, YOU’RE A BIG FAN
OF THIS STUDENT LOAN THING,
AREN’T YOU?
>> YOU KNOW THE WAY I LIKE TO
PUT IT, YOU KNOW, NORMALLY TO
FORGIVE IS DIVINE BUT IN THIS
CASE --
LARRY: THAT’S GOOD.
>> HUNDREDS OF MILLIONS OF
DOLLARS OF COSTS.
INCIDENTALLY TO PUT A FINE CLOTH
OVER EVERYTHING YOU JUST SAID
ABOUT THE ECONOMY, WE ARE NOW,
IF YOU ADD THE $300 BILLION OF
SPENDING IN THIS BILL, PLUS
WHAT, 600 BILLION IN THE BILL
THEY PASSED LAST WEEK, PLUS THE
A FEW WEEKS AGO 200 BILLION,
THEN THE 3 TRILLION LAST YEAR,
WE’RE ABOUT $4 TRILLION.
I LISTENED TO BIDEN’S SPEECH
ABOUT AN HOUR AGO.
IT IS ALL ABOUT THE GOVERNMENT
JUST GIVING PEOPLE STUFF.
I MEAN IT IS ALL ABOUT THE
GOVERNMENT PLAYING SANTA CLAUS.
THAT IS EXACTLY WHAT THIS BILL
IS.
MORE AND MORE FREE STUFF FROM
GOVERNMENT AS IF IT IS SOMEHOW
MANNA FROM HEAVEN.
LARRY: BY THE BY, LET’S GO BACK
IN TIME, A LITTLE OVER A YEAR
AGO, A LITTLE OVER A YEAR AGO,
SPEAKER NANCY PELOSI WEIGHING IN
ON JOE BIDEN CANCELING STUDENT
DEBT THIS IS JULY 28th,
2021.
TAKE A LISTEN TO THIS, PLEASE.
>> PEOPLE THINK THAT THE
PRESIDENT OF THE UNITED STATES
HAS THE POWER FOR DEBT
FORGIVENESS.
HE HAVE DOES NOT.
HE CAN POSTPONE, HE CAN DELAY
BUT HE DOES NOT HAVE THAT POWER.
THE PRESIDENT CAN’T DO IT.
SO THAT IS NOT EVEN A
DISCUSSION.
LARRY: YEAH, SO THAT DIDN’T
REALLY ENTER INTO TODAY’S
DISCUSSION FROM THE PRESIDENT.
HE IS USING A VERY SKETCHY
EMERGENCY COVID AUTHORITY,
STEVE, WHICH YOU KNOW, I THINK
COULD BE CHALLENGED IN COURT.
I DON’T KNOW IF ANYBODY IS GOING
TO DO THAT BUT HE IS REALLY ON
PRETTY SKETCHY SHAKY GROUNDS I
THINK AND THE OTHER POINT I WANT
TO TALK ABOUT, LOOK IT, WE DON’T
LIKE THE FACT THAT THE MIDDLE
CLASS IS TRYING TO SUBSIDIZE THE
UPPER CLASS ONCE AGAIN BUT
STEVE, WHAT’S WRONG WITH GOING
BACK TO PRIVATE SECTOR BANKING
LOANS, WHETHER IT IS CAR LOANS
OR HEALTH LOANS OR STUDENT
LOANS?
IT WAS OBAMA THAT ENDED BANK
LENDING AND PUT IT ALL INTO THE
EDUCATION DEPARTMENT WHICH YOU
KNOW, BLESS THEIR LITTLE HEARTS,
THEY’RE ALL SITTING AROUND
FIGURING OUT SEX AND GENDER,
CRITICAL RACE THEORY AND YOU ALL
OF THAT STUFF, THEY DON’T KNOW
ANYTHING ABOUT LENDING, CREDIT
RISKS, ANYTHING LIKE THAT.
WHY NOT GO BACK TO THE PRIVATE
SECTOR, STEVE MOORE.
>> SO A COUPLE POINTS HERE.
FIRST OF ALL, YOU’RE EXACTLY
RIGHT ABOUT WHETHER OR NOT THE,
THERE IS A REAL CONSTITUTIONAL
QUESTION WHETHER THE PRESIDENT
HAS THE AUTHORITY TO DO THIS AS
I READ THE CONSTITUTION, I’M NOT
A CONSTITUTIONAL THE POWER OF
THE PURSE LIES WITH CONGRESS,
NOT THE EXECUTIVE BRANCH.
THEY’RE USING THIS EMERGENCY
POWER FROM COVID, COVID HAS BEEN
OVER A YEAR FROM NOW.
WHAT ARE THEY TALKING ABOUT?
THERE IS NO COVID EMERGENCY
TODAY.
I FIND THAT TO BE TROUBLING THIS
PRESIDENT IS ACTING AS IF HE IS
A DICTATOR AND CAN SPEND MONEY
HOWEVER HE WANTS.
NOW YOU’RE ALSO RIGHT ABOUT THE
LENDING POLICIES OF THE
GOVERNMENT.
IF YOU LOOK AT DEFAULT RATES AND
THE DELINQUENCY RATES OF
GOVERNMENT LOANS THROUGHOUT THE,
THROUGHOUT THE GOVERNMENT,
THEY’RE TWICE, THREE, FOUR TIMES
HIGHER THAN THEY ARE IN THE
PRIVATE SECTOR.
SO WHY AREN’T WE USING PRIVATE
BANKS TO -- WHY ARE WE NOT USING
DEBT COLLECTORS -- LOOK, IF YOU
DON’T PAY THE STUDENT LOAN THE
WORST PART ABOUT THIS, LARRY
WHAT KIND OF MESSAGE ARE WE
TELLING YOUNG PEOPLE YOU CAN
TAKE OUT A LOAN, YOU CAN HAVE A
JOB AND YOU DON’T HAVE TO PAY
BACK THE LOAN?
LARRY, I GOT A MORTGAGE.
I DON’T WANT TO PAY MY MORTGAGE
PAYMENT.
WILL THE GOVERNMENT BAIL ME OUT?
THIS SENDS WRONG INCENTIVES.
BASICALLY TELLING PEOPLE IF YOU
DID PAY YOUR LOAN ON TIME AND
YOU DID THE STAND-UP THING
YOU’RE A SUCKER.
ONE LAST THING, LARRY, HOW MANY
PEOPLE GOING FORWARD DO YOU
THINK ARE GOING TO PAY THEIR
STUDENT LOANS?
LARRY: WAIT A SECOND.
I HAVE A, I WILL AMEND THAT.
IF YOU KNOW THAT PRESIDENTS,
WITHOUT THE RIGHT AUTHORITY BUT
THEY’RE GOING TO DO IT ANYWAY,
IF THEY’RE GOING TO CANCEL
STUDENT LOANS AND YOUR DEBT AND,
WELL THEN YOU GO BACK FOR MORE.
YOU WILL KEEP PILING ON DEBT.
>> OF COURSE.
LARRY: BECAUSE THE GOVERNMENT
WILL BAIL YOU OUT EVERY TIME.
I WAS TALKING TO OUR PAL KEVIN
HASSETT.
ED PROS COT, NOBEL PRIZE WINNER.
>> YES.
LARRY: SOMETHING CALLED
PRESCOTT’S DYNAMIC CONSISTENCY.
IN THIS CASE IT IS DYNAMIC
INCONSISTENCY.
NOT LIKE THIS IS ONE TIME
BECAUSE YOU WILL EXPECT BAILOUTS
AGAIN AND AGAIN, CANCELLATIONS
OF YOUR DEBT.
SO WHAT DO YOU DO?
YOU BORROW MORE.
YOU BORROW FROM THE GOVERNMENT.
WE COULD SHOT THAT OFF, REFORM
THAT, FIX THAT, BUT ALL BIDEN IS
DOING, KIND OF AN ELECTION YEAR
BOONDOGGLE, PORK BARREL IN THE
CASE, TRYING TO PICK UP VOTES OR
DEMOCRATIC VOTES AMONG YOUNG
PEOPLE?
>> I WILL SAY SOMETHING ABOUT
THAT BECAUSE YOU’RE EXACTLY
RIGHT.
THAT IS THE MOTIVATION, THE
DEMOCRATS THAT I TALKED TO ALL
SAY THIS IS JUST ABOUT PICKING
UP VOTES, BUT YOU KNOW WHAT?
I THINK THIS WILL BACKFIRE.
I THINK PEOPLE ARE SO ANGRY
ABOUT THIS.
ESPECIALLY PEOPLE WHO DID PAY
THEIR LOANS.
THEY DON’T UNDERSTAND WHY IT IS
THAT THE DEADBEATS THAT ARE NOT
PAYING BACK LOANS SHOULD GET
WRITEOFFS AND QUOTE, FORGIVENESS
AND PEOPLE WHO DID THE RIGHT
THING -- THIS IS THE THING SO
INFURIATING ABOUT GOVERNMENT.
ALL THE INCENTIVES ARE WRONG.
WE HAVE WELFARE PROGRAMS THAT
PAY YOU NOT TO WORK.
WE HAVE A TAX SYSTEM THAT
PUNISHES YOU IF YOU WORK AND
INVEST AND SAVE.
HERE AGAIN, WE, WE’RE PUNISHING
PEOPLE WHO DID PAY BACK THE
STUDENT LOANS.
NOW THEY HAVE TO PAY HIGHER
TAXES.
REWARDING THE PEOPLE WHO ARE NOT
DOING THAT I JUST FIND THAT TO
BE SUBVERSIVE TO THE WHOLE IDEA
OF KIND OF A, YOU KNOW, ACTING
IN A WAY APPROPRIATE AND
RESPONSIBLE AND I’M NOT, I
WOULDN’T BE SURPRISED IF BIDEN
DOESN’T START SAYING WELL, IF
YOU HAVE GOT CONSUMER CREDIT
CARD DEBT, WE’LL PAY THAT OFF
TOO.
LARRY: IT IS ONLY, WE STILL GOT
A WEEK LEFT IN AUGUST.
THERE IS SEPTEMBER, OCTOBER,
PLENTY OF TIME BEFORE THE
MIDTERM ELECTION.
THESE ARE PERVERSE INCENTIVES.
>> RIGHT.
LARRY: YOU WILL GET PERVERSE
OUTCOMES.
THE IRONY FOR ALL OF THIS STUFF,
WE GOT TO GO, SOCIALISM DOESN’T
DELIVER THE GOODS.
ALL THIS BIG GOVERNMENT
SOCIALISM.
>> YEAH.
LARRY: THEIR OWN ESTIMATES,
STEVE, I’M GOING TO TALK MORE
ABOUT THIS AS THE SHOW GOES,
THEIR OWN ESTIMATES, BARELY 2%
GROWTH FOR THE NEXT 10 YEARS.
THAT IS NOT WORTH IT.
NOT WORTH IT.
>> SHOED BE BOOMING RIGHT NOW.
LARRY: BOOMING.
>> I KNOW WE HAVE TO GO, MAKE
ONE LAST PREDICTION, IF YOU PUT
THE POLICY IN PLACE, YOU HEARD
IT FIRST ON THE "KUDLOW" SHOW,
NOT LONG BEFORE COLLEGES ARE
CHARGING $100,000 A YEAR IN
TUITION.
THE UNIVERSITIES ARE THE OTHER
CULPRIT HERE.
THEY BASICALLY ARE CHARGING SO
MUCH FOR FAMILIES I THINK IT IS
OUTRAGEOUS.
THE UNIVERSITIES SHOULD BE ON
RESPONSIBLE FOR SOME OF THIS
DEBT, NOT THE TAXPAYERS.
LARRY: WELL THE GOVERNMENT IS IN
SOME SENSE SUBSIDIZING AND
FINANCING THE HIGHER AND HIGHER
TUITIONS FORCES THE GOVERNMENT
TO DO MORE.
I SHOULD HAVE PUT THAT IN MY