I found Ron Paul’s answer when discussing Student Loans at the GOP Michigan debate last night very interesting. And I think it warrants some discussion. So what do you think of his idea and the current system? I found myself agreeing with Ron Paul on this issue. We need to find a way to keep costs low. The student loan program has made it possible for some kids to go to college, but it has been a major culprit in soaring college prices.
PAUL: Well, I think you proved that the policy of student loans is a total failure. I mean, a trillion dollars of debt?
And it’s going to be dumped on the taxpayer? And what have they gotten? A poorer education and costs that have skyrocketed because of inflation, and they don’t have jobs. There’s nothing more dramatically failing than — than that program.
So, no, there’s no authority in the Constitution for the federal government to be dealing with education. We should get rid of the loan programs. We should get rid of the Department of Education and give tax credits, if you have to, to help people.
But the inflation is the big problem. It’s three times the rate that the government admits that inflation is, and that is natural and normal. When governments inflate the currency, it goes in the areas that the government gets involved in, housing, high prices, stock market, skyrocketing prices, medical care, skyrocketing, education…
EPPERSON: But how do they pay for it? How do they now pay for college, if they’re not…
PAUL: The way — the way you pay for cellphones and computers.
You have the marketplace there. There’s competition. Quality goes up. The price goes down. Can you imagine what it would have been like if the Department of Homeland Security was in charge of finding one person or one company to make the cellphones? I mean, it would have been a total disaster. So when the government gets involved in the delivery of any service — whether it’s education, medical care, or housing — they cause higher prices, lower quality, create bubbles, and they give us this mess that we’re in. That’s why we have to eventually get our — we have to wise up.
And look at where the bubbles come from. It’s from the Federal Reserve. And we should start by auditing the Fed, and then we should end the Fed.