Tuesday, April 29, 2014

John T. Harvey — Student Loan Debt Crisis?

But, despite it’s search-engine popularity and the associated journalistic sensationalism, it’s not at all evident that we are witnessing the development of another speculative bubble. In fact, once you break down the facts, it turns out that the parallels are relatively few. That said, however, student debt loads are a problem, and a serious one. Not only do they create a significant drag on short-term economic activity, but they will stunt our long-term growth as well. And the situation is deteriorating. The disease is real, it’s just more subtle and insidious than a financial market boom and bust.
Forbes — Pragmatic Economics
Student Loan Debt Crisis?
John T. Harvey | Professor of Economics at Texas Christian University

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