[bumby]

I’m not against that, but I do think just getting rid of federally backed loans previously causes more problems. (Ie it’s one of those simple cures that may ignore blowback) Do you think there is an opportunity gap to be closed? If so, how do you think that would work?

[eru]

> (Ie it’s one of those simple cures that may ignore blowback)

I actually want exactly the 'blowback': I want student loan creation to fall off a clip.

> Do you think there is an opportunity gap to be closed?

What is an opportunity gap?

> If so, how do you think that would work?

I'm guessing here what you mean by opportunity gap. I think the cheapest way is to open the US labour market to virtually anyone on the globe. That would be good for the US economy, wouldn't cost the tax payer anything (in fact you would save on border enforcement), and the people with the least opportunities globally would benefit enormously.

If you only care about Americans, I would suggest to give poor people money, and let them decide what to do with it.

Eg whatever the cost to subsidise education (including subsidised student loans) right now, just pay it out to poor people. Than they can buy education, or whatever else they deem more necessary.

[bumby]

>whatever the cost to subsidise education (including subsidised student loans) right now

It sounds like you may not understand how the system works. It doesn’t cost the government anything, with the exception of the loan repayment pause surrounding COVID.

I know the simple solutions like “Just give away money” can be seductive, but IMO they generally don’t work well in complex and nuanced problems. People aren’t rational actors by and large, and it’s a mistake to assume they can be modeled as such in many cases.

[eru]

> People aren’t rational actors by and large, and it’s a mistake to assume they can be modeled as such in many cases.

You'd still be on the hook explaining why you know what's better for people than they do.

> It sounds like you may not understand how the system works. It doesn’t cost the government anything, [...]

There are always opportunity costs. But what parts of the 'system' are you talking about?

[bumby]

I'm talking about real costs. The government doesn't lose money by guaranteeing loans (in fact they make money, which is a totally different — but reasonable —argument against the current setup). I assume you mean opportunity costs as in "what else could the govt fund" with that money; if that's your claim, it again belies a misunderstanding of what's going on. You seem to have created this false narrative in your head that doesn't reflect reality.

There is much research, especially in behavioral economics, that shows that more objective decisions can be made by creating systems that facilitate more rational decisions. So my current position is that we should set up systems/institutions to foster those better decisions rather than push everything down to the individual, given the complexities of modern life. So to directly answer your question, there's decades of research that shows individuals aren't great at making rational decisions at the individual level. It's also interesting that you simultaneously seem to claim the "state" should make decisions, but also that institutions don't know what's better than individuals. It doesn't make for a very cohesive take.

[eru]

> I'm talking about real costs. The government doesn't lose money by guaranteeing loans (in fact they make money, which is a totally different — but reasonable —argument against the current setup).

The government guaranteeing arbitrary loans isn't free in economic terms. Just like eg increasing the length of patents from 20 years to 40 years ain't free, even though it won't show up as a cost on any government balance sheet.

[bumby]

So what do you think the non-monetary realized cost is? And that cost compare to the benefit of a more educated populace?

At least with your patent example, we can measure it in economic terms, since patents are a commercial protection. Once we start getting into wishy-washy measures, people can make just about any arbitrary point to fit their narrative.