Wouldn't the argument be that resuming student loan payments is deflationary because it takes cash out of the economy, and partial student loan forgiveness just lessens the possibility of large scale bankruptcies which could be another shock to an already fragile system?
inflation results from a suddenly plummeting rate of profit - businesses have to increase prices to make up the sudden shortfall. removing cash from the economy can reduce liquidity and make the problem worse.
If the system's heavily inflating it's not really fragile. And Biden is extending the payment moratorium for two more months anyway, isn't he? Though the resumption of payments logic does make sense.
Wouldn't the argument be that resuming student loan payments is deflationary because it takes cash out of the economy, and partial student loan forgiveness just lessens the possibility of large scale bankruptcies which could be another shock to an already fragile system?
inflation results from a suddenly plummeting rate of profit - businesses have to increase prices to make up the sudden shortfall. removing cash from the economy can reduce liquidity and make the problem worse.
If the system's heavily inflating it's not really fragile. And Biden is extending the payment moratorium for two more months anyway, isn't he? Though the resumption of payments logic does make sense.