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Discussion » Questions » Finance » Is it truly beneficial to the economic health of the country when the government passes sweeping legislation to forgive personal debts?

Is it truly beneficial to the economic health of the country when the government passes sweeping legislation to forgive personal debts?

Specifically hundreds of millions of dollars in debt in a year’s time.
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Posted - April 11

Responses


  • 29303
    Of course not. 
      April 11, 2022 9:50 AM MDT
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  • 215
    If the first President Bush could bail out the banks and insurance companies, then why not forgive student loans?  There should be no such thing as "too big to fail."  Can't make it?  Go out of business.
      April 11, 2022 11:59 AM MDT
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  • 48300

     

      How about other types of loans besides those specifically for education, do you have to same outlook?
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      April 11, 2022 2:01 PM MDT
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  • 215
    If you mean mortgages or loans to buy equipment, no I don't think they should be forgiven.  
      April 11, 2022 9:11 PM MDT
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  • 48300

     

     Thank you. Technically speaking, I wasn’t only referring to loans per se, it was the broader sense of any monies owed by one party to another, or to an institution.  It partially came about when I pondered the original necessity for this wording on US currency: “for all debts, public and private”.
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      April 11, 2022 10:48 PM MDT
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  • 215
    Undertood.
      April 12, 2022 9:52 PM MDT
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  • 48300

     

      I just noticed that you’re missing an ‘s’.


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      April 13, 2022 7:15 AM MDT
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  • 215
    I needed it for something else. :)
      April 13, 2022 8:40 AM MDT
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  • 48300

    Lol!


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      April 13, 2022 9:00 AM MDT
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  • 10956
    I'm not sure that, say, the federal government has the legal authority to dictate the forgiveness of private sector debt, such as an auto loan or bank mortgage. Even with student loans, I believe it can only forgive those issued or guaranteed by public entities such as Fannie Mae.
      April 12, 2022 7:22 AM MDT
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  • 14518
    A lot should depend upon the nature of the debt. Student loans? Absolutely, in civilised countries higher education is dependent on the ability of the student, not their capacity to pay. Huge borrowing for a casino which then fails? Not a penny of it.
      April 12, 2022 6:28 PM MDT
    3