AUSTRIAN ECONOMICS ADDICT

Students are being exploited by our benevolent Government, just like home buyers during the housing bubble. Home buyers went into debt purchasing a house, the price of which had been inflated by artificially lowered interest rates, and counterfeit money being pushed into the housing market. With little or no down payment, they had no built in equity. When the bubble collapsed, the principle amount of the mortgage was higher than the house was worth. These home buyers will be paying a higher percentage of their present and future production (salary), to the banks. Counterfeiting is theft, and the banks, with the help of the Fed, are stealing peoples production over time. Read previous post here “Government Intervention And It’s Consequences”.

Students are in a different kind of boat than home buyers were in, but they’re floating on the same river of debt which leads to the same place, serfdom. Benevolent Government just wants every student to have the ability to attend college, just like they wanted every person to be able to afford a home. Unfortunately good intentions have unintended consequences. Or are we giving them credit for good intentions when maybe the intent was to bait the student into thinking college is affordable, and get them gut hooked into a huge amount of debt. Just like the housing bubble, cheap credit drives up the price of the good or service, in this case it’s the price of a college education. No matter the intention, the result is the same, students are on the hook for a huge amount of debt. (If you want to figure out the intention of Government, watch the video below.)

Do you have an idea of why you’re going to college? Will your chosen degree lead to a job that will pay enough to support you and your debt? If you’re going to college just to have something to do for the next four or six years, think again, it will be a very expensive discovery process.

Here is a quote from an article titled, “Students: You Are Exploited Debt Serfs” by Charles Hugh Smith at oftwominds.com.

“Apologists for the Education Cartel like to blame Corporate America or the banks, but the reality is that the Federal and State governments and the employees of the Cartel are willing partners in the exploitation and fraud. How did we get to the boiling-water point where students are expected to take on $100,000 or more in debt to attend college–even a mediocre one?”

“Answer: immensely profitable Government-backed loans. If the Central State wasn’t partnered with the Education Cartel, today’s debt-serfdom would be impossible.”

Here is a quote from another article titled,“It’s Time To End The Student Loan Ripoff”, by Charles Hugh Smith at oftwominds.com

“…the entire student loan system is instead a classic simulacrum: behind the propaganda, it is nothing but a highly profitable funding mechanism for bloated, bureaucratic “higher education” fiefdoms and yet another debt instrument which profits Wall Street and banks while indenturing the citizenry in a perverse form of lifelong servitude.”

“I am not saying this to be contrary; it’s simply stating what is “obvious.”

“Here is the key to understanding the fundamental fraud at the heart of the entire U.S. financial system and one of its offshoots, the student loan industry: lowering interest rates and providing limitless credit does not make a good or service “affordable,” it only raises the price.”

This is a video by FAFSA (Free Application for Federal Student Aid), that tries to get students to apply for student loans. It is, from my perspective, the dumbest video I have ever seen, but it wasn’t aimed at my age group.

Your tax dollars were spent on this ad.

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This entry was posted on March 6, 2013 at 3:27 am and is filed under Government and Politics. You can subscribe via RSS 2.0 feed to this post's comments.

Tags: College Loan Debt, Debt, Debt Serfdom, Education Cartel, Student loan

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