Not talking the same sky loving christian debt were talking they did go on turning in income and then when they graduate theyre graduating move off what about 100000. 00 u. S. Dollars is a level of debt the average is 30000. 00 and in fact its non dischargeable prior to the what happened with the subprime crisis was people could do the jungle mail lock away students could never walk away from this almost all of it is essentially owed to the government so the government owns you anyway and you cant escape it you cant just jingle mail away from the u. S. Government 30000 is the starting level and i go i could graduate. Something of that scope a year so this starting with the debt to income ratio 100 percent before they even pay the rent a little on consider paying a mortgage max and i graduated before 1991 you all graduated around that sort of time the rate of increase since the 1980 s. A lot happened in the 1980 s. We could talk about. The rate of tuition increase has gone up 8 times faster than income when i went to u. C. L. A. I was able to afford the tuition and my own apartment by working part time and stationery shop you cant do that today dr Michael Hudson when you have to so houses just like the house is worth whatever a bank is going to lend against it and those banks lend more and more for housing the housing prices went up and education is worth whatever a bank is going to lend a start and the government banks drop the Student Loans you pointed out an interesting thing a key point recently the subprime debt was owed to banks but the student debt is now owed to the government so that means that the government could wipe out all the student debt and it wouldnt hurt any creditor at all it could be wiped out without any disruption of the economy and in fact unless its wiped out the economy will be distorted because as steve cain just said if you have to pay a lot of money in student debt you cant afford to get a Bank Mortgage to buy a house of your own in youre going to end up living with your parents you know awol dr Michael Hudson here according to moodys erasing student debt would be a small stimulus but would it create moral hazard nowell however or has it but i wouldnt know what is the morrow if he had worked the moral hazard is if the rich families that can afford to send their kids to School Without an education would no longer be able to lord it over the families that are driven into poverty by student debt the moral hazard is that there wouldnt be a polarizing economy between an oligarchy at the top and a democracy at the bottom thats the moral hazard according to the l. Ike archaean according to the neo liberals printing it back to the sub prime crisis movies unless very much responsible for that now randy you of course. Have been involved with your bernie delegate back in 2016 tell us what bernie thinks of sit it out what his plan is and how that relates to the his hes very popular with the generation z. And the money obviously is very popular because this is one of the single biggest issues holding that generation down and his plan is simply to wipe out all the student debt and then come back later and lower the Interest Rate to below 2 percent i think 1. 8 percent right now the rates are between 4 and 7 and i dont really know i didnt have student at either c. C. I dont really know what happens when you default but i do know anecdotally that when youre paying your taxes and you think youre going to get your stimulus as a refund the i. R. S. Collects for your student debt. So i know that his plan and these are policies they see when my parents met at u. C. Berkeley in 1960 it was free to go to berkeley and you paid for incidentals now its 13 1000. 00 if youre in state and 40000. 00 out of state these are actual policies made by people in government that decide as roberson but whos going to go what and why would 3 universities well they would phase just before i started but they were trivial relative to the costs today because the bureaucracy in universities was trivial the head of the pop and my predecessor effectively would have a meeting with the vice chancellor and talk about the budget that was needed and abuse cost of a lunch and that was the end of the discussion now listen and todd bureaucracy involved in doing that so a huge part of the increase in cost of universities has not the money going to the academics or the citys facilities for students is this enormous bureaucracy which is part of this whole student it the whole overload then what is that thats neoliberalism get it instead of believing you should manages make things work better and it manages to like it it makes well to do but also they say there are surveys are acting like gatekeepers there are small number of jobs where you can make the elite type of Mega Millions and. Folks are willing to pay i went to n. Y. U. Back in the seventys and eightys i was shocked to find out that tuitions out over 50000. 00 a year so you really cant afford that much and even youve got celebrities in hollywood folks adding another 2 or 300000 in bribes to get into a university is going to cost 2. 00 or 300000. 00 to begin with because they want to get the job at the top of the Banking System that the bank of the ponzi scheme the financialization straightest enormous bodies game if you want access to be at the top of the pond youve got to go through the ivy league youve got to go deep into debt youve gotta pay another huge bribe and that just disenfranchises so many millions of people that wont have any access and also the whole point of universities not education anymore they are acting as gatekeepers to the elite oligarch attentional is i mean i had students tell me theres only a university to get a job originally my father was a universe to get an education and if you make it all about credentialism you end up devaluing the quality of the education itself so in that with a list a genuinely educated workforce and the caliber of the teaching that joining this whole period of increasing costs the student to stop ratios been fooling theres less stuff teaching theres more mocking a load everything is being will make a knowledge of the personal contact is declined so rather than this increase in cost reflecting increase in important quality its actually a degradation of that and just a huge bureaucratic wire over the top well the result of what the talking about is theres been a whole trains in the shape of the how much education adds to your earning power it used to be the more education you go up to the ph d. The more you would earn but know thats been reversed certainly in my field economics once you have a ph d. In economics youre so brainwashed with the vision that the only thing you can do is teach but the universities in order to pay all this money to the administration overhead that steve pointed to they want to hire part timers to. Teach you can only get an edge on professorship for maybe 3000. 00 a cord so the higher your education the less qualified you are to actually work in the real world especially in economics one until the point is i have some Close Friends that were really happy that their daughter got into a very Prestigious School in boston and i asked how theyre going to pay for it was 70000. 00 and they had saved and they had money and she was going to get loans and i asked him point blank based on what she wanted to study i said why dont you just buy her a house in las vegas where you live for 280000 dollars and give her the house and centers of Community College shell have an asset with no debt shell live there and get a skill its a good question meant when youre spending 70000 a year and she would emerge she may not have debt but others could come out of there with 1250000. 00 a sound 5 guys burger chain has started the dad said i can send you to college so i can start some business together they started 5 guys burgers now theyre all going to florida by University Getting back to what max the saying about the gatekeepers the problem doesnt just begin with tell it it begins in kindergarten here in new york city it costs more to go to kindergarten and grants go. To college and in fact you remember in the stock market crisis when the citibank was having a fraudulent stock broker the deal with the stock broker is we will get your daughter into kindergarten if you give a good stock Market Report here and that. The weeding out process begins already in grade school to go to a school that can get you in to the Prestige College so it really is hereditary aristocracy thats emerging were talking about i knew you were going to say this because thats why i wore my kindergarten out. Because i thought this was going to come up in fact weve had this scandal as well not only do we have the celebrities and the powerful people apparently paying bribes to get their children into these schools. Which shows you that even though they have this huge wealth that the importance of getting that degree from a particular university regardless of what you actually learn at university is so important now in our economy and we have the hereditary issue is Something Like 40 percent like a huge percentage especially white americans at harvard or you know certain select universities are actually children of families that are powerful or when theyre this is the definition of like an aristocracy or all the darky that is being entrenched in this economy right didnt universities were and libraries are built by the rich to give back now the pendulum has swung the other way theyre using them to ossify calcify their place as the elites by saying these job rate is that once you get over the bridge they pull it up and everyone else is left adrift right so if there are no Public Institutions then there is no Public Domain and there is the common good and we have not escaped the monarchies of europe and weve brought back a central bank whats the difference now between you know where we were 200 years ago before we even bother with the declaration of entitlement ellen association i mean thats thats the the point is should we actually be charging for education because this is we charge for things is because its a benefit to the person whos buying it and thats the audiology that took over education about 30 or 40 years ago but the perspective of education was originally that education is a benefit for society in general i wouldnt want to live in a Society Without doctors or engineers all saw just what happened without economists. Saying it of being a profit benefit ignoring the public means that ignoring that the skill by says we need for a Sophisticated Society and putting the burden of that school vices on the individuals and what we turned it into is just now the churn Institution PublicHigher Education become a form a version of a realist i. Scam that is not the basis for a functional society were going to be back after the break so you can go to school on us right after this thats the way. Im going to fulfill the repeated promises ok politics to the people and come out you know weve all pots to. Be. Pretty. Pretty good bertha now you want to 1st correct that. You know. For. Coming out my yacht. Seems wrong. Dont blow just dont call. Me. Yet to see palin does the become active. And engaged to be close to trail. When so many find themselves worlds apart we choose to look for common ground. Thousands of american men and women choose to serve in the countrys military. Every thing came to a complete. The day that i was raped. You know told a shot to kill me and i see how would destroy. Any screamed at me and he made me come in and he grabbed my arm and he right means berthing area if you take into account that women dont report because of the extreme retaliation and its probably somewhere near about half a 1000000 women have now been sexually assaulted in the u. S. Military base a very very traumatizing thing have happened but ive never seen trauma like ive seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished from the offender and almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an hour in violence male sexual predators for the large part of target whoever is there to prey upon whether thats a man or woman. Welcome back to front running 2020 with max kaiser and stacy arbor before the break we were talking about 1. 00 trillion dollars in student debt and we left off on this idea of competitiveness stacey yes germany has Free Education america has expensive education and yet it seems that germany is out competing us steve basically risen because youre not relying upon the students so to get into university but to get a good mark youve got to be an intelligent person to get and not a model well see want to want somebody whos borrowed money consequently you can afford as an academic to file the students if they dont do addition job whereas if you try to file students with a pipe i think they have boarded and they deserve to get what they paid for which is a degree and that is that subverts the whole purpose of education of experiences over a 30 year 40 year period in academia and ive seen the quality of the capacity to file bad students simply collapse so what is happening universe is graduating people with credentials but not in education but the fact is we do have a problem with household formation it is at a record low and a lot of this many economists say is because of the student debt so when people argue against forgiving this debt and remember Elizabeth Warren and Bernie Sanders definitely want to forgive this debt but the argument against it is like it dont create the moral hazard and all these other people paid and they worked hard to pay and why should we forgive these debts which is better for the economy however that those debts get made whole and that they pay their pay it off or household formation how important is household formation to an economy you have to put it in the context of how competitive the economy is in terms of how many jobs it has in the 1st place no take the case of germany where steve mentioned if you dont. Can go to school and dont have to pay tuition that means that you can afford if youre a doctor to provide medical services or an engineer to provide Engineering Services or you can afford to work for a income that does not require you to add on a payment of student debt in america if you graduate with a for a deficit of 300000. 00 of student debt from and or use a dental school youre not going to be able to afford to take most jobs that dont pay enough to pay the student debt so youre going to default now so the real question about moral hazard is it worth polarizing the economy and impoverishing the whole class just for the principle that all debts can be repaid when a steve and i say we know the debts cant be paid me and then the way to follow this false dream that somehow the economy can afford to pay its debts and somehow the rich people deserve to impoverish the 99 percent of the economy this further and further and that the real moral issue is should the 99 percent be indebted for student debt mortgage stepped. All the other forms of debt to the one percent that thats the moral issue and should america give up its hope for competitive economy just to make students pay for a loan so that you can afford to have the rich families monopolize education and lock out families that cannot afford the 40000. 00 that it takes to get into kindergarten in the american. Way you also have as weve mentioned earlier that tuitions have gone up there is that the tuition prices for their private University Public universe a Public University is a pyre and these are wages wages of state but the wages if you do the wages of professors theyve gone down and down and down because they can only get part time jobs as professors so the professors jobs are going down whole the university because their. Our time is right the universe they call for going up because their office a big bureaucracy is what i think of as the neo liberalism and neo liberalism seems to have really come in after we went off the Gold Standard you can create all sorts of money you could create also today in credit and the boomers were 1st then were not saying theyre horrible people they were lucky they got to be the 1st one on this near mit scheme and now there is a battle there is a reconciliation to be made that the millennial are stuck with these huge debts and how is this going to resolve itself its going to resolve itself through revolution as bernie says our revolution or its going to resolve itself at the ballot box and i think that as more people get fed up and they get interested in casting their ballot on these issues that are basic issues and im indebted to the one percent and im basically working a dead end job ive done radio shows where people call in and said i did the bear can dream i got 2 degrees you know i went to school and im up to my eyeballs in debt and i get paid less than 40000. 00 dollars d a year in wake county North Carolina ill never be out of debt and yet they did what they were told to do this will be resolved at the ballot box and thats exactly why bernie is incredibly popular with millennialism jonesy its a contrast to prochoice or sanders wants to make college for a while Elizabeth Warren has proposed a billionaires tax that she said would pay to eliminate up to 50000. 00 and education loans are either of those viable are that is there any difference between those 2 how would you characterize the if you went that we said before nobody has to suffer the government doesnt need the money the government either prints the money or it can raise the taxes a large part of the problem arise from people saying we have to pay for things like education using taxes and thats a benefit but on the state lets impose a burden on the individuals who are benefiting from education instead the. The opening thesis is wrong it is the government has to tax in the order to be able to be spent just band and part of what is called modern