The Old Man has been harping too long and heavily an on the absurdities of the economic scene, but this is too outrageous to ignore. An article in The New York Times this morning, about scammers preying on young Americans struggling to pay off student loans, started off by revealing that “Student loan debt hovers at more than $1 trillion, a threefold surge from a decade ago….” That’s roughly $700 billion that private lenders plowed into the business in the past decade.
During that decade the federal government has been pouring trillions of dollars into the economy at the top, on the theory that private lenders would invest the money in job creation. That theory has fizzled, and one reason is that roughly $700 billion of it was invested, not in job creation, but in job seeker creation.
“More than half of recent graduates are unemployed. And if they do have a job, it is probably a low-paying one that does not require that expensive college degree.”