The Debacle of National Debt: Student vs Credit Card

When comparing student debt in the United States to credit card debt, it's crucial to understand the nature of each. Many hold the belief that one can be eliminated by the government, whereas the other cannot. However, this argument can obscure the underlying issues and the true responsibilities that individuals must face. Let us delve into an analysis:

Is Student Debt Worth Eliminating by the Government?

Student debt is often championed as a worthy issue for government intervention, especially considering its almost equal standing with credit card debt. Proponents argue that the government should step in to address this issue, arguing that it is controlled by the government and thus can be eliminated. However, this viewpoint is based on a flawed understanding of the nature of student debt and the limitations of government action.

The government does not have the right or the authority to eliminate student debt under its own terms. Student loans are issued to individuals through government organizations, but the responsibility to repay these loans lies entirely with the borrower. While the government can certainly influence loan policies and interest rates, it cannot unilaterally forgive debt that has been legally and contractually determined. The idea of the government eliminating student debt is, therefore, misplaced and impractical.

Can Credit Card Debt Be Eliminated by the Government?

On the other hand, credit card debt is controlled by private companies, which the government cannot directly intervene in. This means that the government has no legal authority to forgive or eliminate this type of debt either. The debt is a result of individual and corporate decisions, and any attempt by the government to intervene would likely be seen as interference in the free market.

Attempting to eliminate credit card debt through a national credit card system is an interesting concept but comes with significant logistical and ethical challenges. It would require a comprehensive and equitable system to be put in place, and even then, the government would still be limited in its ability to unilaterally forgive debt.

Conclusion: Neither is Within the Government's Purview

Ultimately, neither student debt nor credit card debt is the government's problem to solve. These debts are a result of irresponsible behavior and poor financial decisions made by individual borrowers and consumers. It is the responsibility of each individual to manage their own finances and make wise decisions. Parents who did not save or pay for their children's education share some of the blame, but ultimately, the debt is the borrower's responsibility.

While policymakers can certainly work to address the root causes of debt, such as promoting responsible financial education and providing better access to resources, the blunt instrument of debt forgiveness is neither practical nor advisable.

Alternative Solutions

Instead of seeking to eliminate debt, the focus should be on promoting financial literacy and responsible behavior. People should be educated about the long-term consequences of borrowing, including the cost of immediate gratification. By fostering a culture of financial responsibility, individuals can make informed decisions that will benefit themselves and the broader economy.

Moreover, the immediate debt of veterans, which does not contribute to personal financial ruin, should be a priority. Enhancing support for veterans ensures that they are provided with the housing and resources they need to thrive, rather than being left homeless.

In conclusion, both student and credit card debt are issues better left to be resolved by the individual borrowers rather than being a government responsibility. The focus should be on educating and empowering individuals to manage their finances responsibly.