Alexandria Ocasio-Cortez thought the Democrat Party was behind her.
But she was forced to face a painful political reality.
And Alexandria Ocasio-Cortez was blindsided when a top Obama economist made this shocking statement.
For Rep. Alexandria Ocasio-Cortez (D-NY) and her Squad, canceling college loans is a top political priority.
They want a taxpayer funded giveaway to bail out irresponsible borrowers with the government erasing their debts with the stroke of a pen.
This is a personal crusade for Ocasio-Cortez who whines about owing a reported $20,000 in student loans while making nearly $180,000 a year and driving a Tesla.
Far-left Democrats have been pressuring the Biden regime to cancel student loan debt with an illegal executive order bypassing Congress.
Biden has been delaying repayment of student loans while he mulls over canceling some portion of student loan debt.
And on Wednesday, Biden announced he’d cancel at least $10,000 in student loan debt and another $20,000 on top of that for Pell Grant recipients.
Now AOC and her radical socialist pals are pushing Biden to cancel even more, with some like Elizabeth Warren calling for $50,000 to be wiped away by executive order.
But a former top economist for Barack Obama is sounding the alarm about what a disaster canceling student loans would be.
Harvard professor Jason Furman served as Chair of President Barack Obama’s Council of Economic Advisors.
Furman said that canceling student loan debt “benefits recent college grads and hurts most everyone else, both rich and poor.”
“Student loan relief is not free,” Furman said on social media. “It would be paid for. Part of it would be paid for by the 87% of Americans who do not benefit but lose out from inflation.”
Only a small portion of Americans have student loans despite Ocasio-Cortez claiming this is a major problem plaguing the country.
With roughly $1.7 trillion in total student loan debt in the country, spending more debt financed money to cancel it altogether would trigger more inflation.
“Part of it would be paid for by future spending cuts [and] tax increases – with uncertainty about who will bear those costs,” Furman added.
“Student loan relief would lead some people to spend more,” Furman explained. “We can’t make more so others would consume less. The way that happens is inflation. Budget constraint. If you add hundreds of billions to the deficit, eventually taxes will rise or spending will be cut.”
Even an economist for Barack Obama is admitting there’s no such thing as a free lunch.
“Or some tax cut or spending increases that could have happened won’t. Either way a cost. A full evaluation of student loan relief would take this into account,” Furman said.
“You might still like it – it benefits recent college grads and hurts most everyone else, both rich and poor. But don’t assume it is ‘free’ money – it is not,” Furman concluded.
The truth is, canceling student loan debt is an idea so bad that even a top economic advisor to Obama thinks the idea is a disaster.
Alexandria Ocasio-Cortez’s insane idea of canceling student loan debt is yet another crackpot socialist giveaway that harms everyone to benefit a privileged few blue state urban elites.
Stay tuned to Right News Wire for any updates to this ongoing story.