Idiotic Incentives
06/10/2014 | | Economic forecasting, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Graphsandlaughs, MLS, Multiple listing service, Public speaking economist, econ70, economist on TV, economist on radio, eisenberg and economics, funniest economist, funny housing economist, graphsandlaughs and eisenberg, housing sales, mortgage banking, politics and economics
President Obama’s decision to give student loan borrowers the option of limiting loan payments to 10% of their income and to forgive all balances after 20 years — 10 years if the borrower works for government — is harmful. It not only encourages government employment, but it spurs colleges to build increasingly fancy buildings to lure students since borrowers know they will never have to pay off their huge debts.