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Bernie’s Student Debt Plan Creates a Million More Jobs Than Warren’s—She Should Embrace It

Originally published at http://www.commondreams.org/views/2019/10/01/bernies-student-debt-plan-creates-million-more-jobs-warrens-she-should-embrace-it

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I’ll be less kind to Liz Warren.

During the second debate she claimed her plan would “cancel student debt for 95 percent of the people who have it” quite deliberately. Because while technically true, the statement amounts to another demonstration of Warren’s skill with weasel words that place her policy proposals on par with Bernie’s.

Lefty voters, accept no substitutes. Liz is the Trojan horse candidate right out casting central. What role is she auditioning for? Obama 2.0.


Short answer: A “progressive” wouldn’t.

You can do the verbal math from there.


I’m voting for and donating to Bernie anyway, but there is no way cancelling $1.6 trillion in student debt would create 4.4 million jobs over 5 years. It might create 4.4 million man/years of work (880,000 people working full-time for 5 years or 880,000 different people working full time for one year over those 5 years) but not 4.4 million people working full time for 5 years.

At 5% interest and the average payoff of 10 years, the annual payments on $1.6 trillion would be about $200 billion. If half of that or $100 billion were spent in the U.S. economy on goods and services each year (the rest used to pay down other debt or saved or invested in the stock or bond markets, etc.) and assuming a multiplier effect on GDP of 1.25 (because of the purchase of imported manufactured goods), that would translate into a $125 billion higher than otherwise GDP for each of those 5 years.

Wages and salaries run about 40% of GDP so that would be $50 billion more paid in wages and salaries each year. At $56,800 per job, that would be 880,000 more employed full time each year for 5 years…4.4 million man/years of work over that 5 year period.

It is so refreshing to see some candidates exhibiting real bills and not just issuing platitutes. This election is special. I hope they can get elected and actually make some of it happen.


This is par for the course with Warren. Her many plans, are based on her ideology of “save” the system rather than build a new and more functional system that works for the many rather than just the few. All of her plans fall way short of badly needed real and substative solutions. They are more like band-aides on cancer or lipstick on a pig. To be blunt, her plans are useless as they perpetuate the dysfunction and corruption. Her administrative leadership if she becomes president will be as useless as her many plans.

It seems, though, that a lot of self proclaimed progressives who doen’t know neoliberalism from a hole in the ground, prefer pigs with makeup.

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