Who is personally accountable to repay government debt? Taxpayers. The politicians that assume debt are not accountable to repay it. that is all I meant by that comment.
The federal government has a hand in underwriting mortgage financing (they own Fannie and Freddie, and they keep the profits from those entities).
The Student Loans are personal loans, underwritten by the federal government.
I am not saying the federal government should never do these things, or that these programs are the root of all evil. However, the federal government has been generous with these programs. I think the incentives of providing easy money through debt to the economy are easy in the short term, and that this cost-disease is one of the long-term results.
If debt is akin to borrowing from the future, then maybe we borrow from the future at the future's level of inflation.
The federal government has a hand in underwriting mortgage financing (they own Fannie and Freddie, and they keep the profits from those entities).
The Student Loans are personal loans, underwritten by the federal government.
I am not saying the federal government should never do these things, or that these programs are the root of all evil. However, the federal government has been generous with these programs. I think the incentives of providing easy money through debt to the economy are easy in the short term, and that this cost-disease is one of the long-term results.
If debt is akin to borrowing from the future, then maybe we borrow from the future at the future's level of inflation.