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‘Ignore the inflation scaremongers,’ Bidens education loan handout ‘looks very good:’ NY Times Paul Krugman

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THE BRAND NEW York Times published articles by columnist Paul Krugman Thursday that argued those who are worried about the impact President Biden’s education loan handout could have on inflation are “scaremongers.”

Wednesday Biden announced $10,000 handouts for all those with federal education loan debt making significantly less than $125,000 or more to $20,000 for Pell Grant recipients. Based on the Committee for a Responsible Federal Budget, this course of action will cost taxpayers approximately $500 billion.

In his article “Student CREDIT CARD DEBT RELIEF Versus the Scaremongers,” Krugman wrote that Biden’s “debt forgiveness was significantly less generous than many progressives wanted but more generous than many expected,” but he said “it’ll be a problem for an incredible number of Americans.”

For whether it’ll “significantly increase inflation,” Krugman claimed, “The solution, should you choose the math, is really a clear no.”

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Nobel Prize-winning economist and New York Times Opinion columnist Paul Krugman attends The New York Times Food For Tomorrow Conference 2015 at Stone Barns Center for Food & Agriculture on October 21, 2015 in Pocantico Hills City. 

Nobel Prize-winning economist and NY Times Opinion columnist Paul Krugman attends THE BRAND NEW York Times Food For Tomorrow Conference 2015 at Stone Barns Center for Food & Agriculture on October 21, 2015 in Pocantico Hills City. (Neilson Barnard/Getty Images for the brand new York Times)

This marks a stark contrast from the view articulated by fellow NY Times columnist Andrew Ross Sorkin, who said the debt handout can make it harder for the Federal Reserve to create down inflation.

Krugman admitted the “eventual cost to taxpayers may be several hundred billion dollars.”

On inflation, he argued that the move won’t result in a “large” upsurge in private spending, and therefore, won’t drive up prices.

He cited a report by Goldman Sachs that estimated that “education loan payments will fall to 0.3 percent of personal income from 0.4 percent.”

“That is likely to feed the fires of inflation?” he asked.

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NYT columnist Paul Krugman admitted that he was

NYT columnist Paul Krugman admitted he was “wrong” about his initial inflation reports. (Ricardo Rubio/Europa Press via Getty Images))

He dismissed findings that the handout would increase inflation, saying it could add “for the most part, a part of a percentage indicate inflation which seems high if you ask me.”

While he defended offering thousands to people that have college debt as making “it easier to allow them to proceed to better jobs and increases their income,” he didn’t have a remedy for the unfairness to those that never attended college.

“Also to Republicans whining that plan does nothing for blue-collar Americans who didnt head to college, a question: What exactly are you proposing to accomplish for such people apart from cut taxes on the rich and declare that the huge benefits will trickle down?” Krugman wrote.

“And that means you should disregard the inflation scaremongers, whose numbers dont accumulate,” he concluded. “And you ought to evaluate this course of action with regards to political reality with regards to what Biden can in fact do. Once you do this, it looks very good.”

Paul Krugman accused President Trump's economic adviser of a

Paul Krugman accused President Trump’s economic adviser of a “completely boneheaded” method of taxes. (REUTERS/Franck Robichon)

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Critics of Biden’s education loan handout argue it’ll further increase political and economic divides in the us, and that it’s subsidizing a broken advanced schooling system. People will continue steadily to purchase degrees in majors and from colleges that usually do not always result in better employment outcomes.

Joe Silverstein is really a production assistant for Fox News Digital.

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