After announcing plans to cancel millions of Americans' student loan debt from college, President Biden may think he's Robin Hood. But he couldn't be further from the truth. In fact, not only is Joe's plan entirely unconstitutional, but it's a socialist FAILURE instead. Because instead of redistributing wealth from top earners to the most needy, Biden really is just robbing the poor: 'Man, he's the worst socialist ever.' Glenn explains it all — plus the DISASTROUS effects this student loan forgiveness plan could have on America — in this clip.
Below is a rush transcript that may contain errors
GLENN: So as expected, Biden is going to cancel $10,000 for all federal student debts, up to joint filers earning 250,000 dollars. That includes by the White House's own admission, basically all, but the top 5 percent. The big addition to that is the Pell grant recipients, who have student loans that will get up to $20,000 in student debt canceled.
Now, here's what I love. You know, I feel sorry for the president every once in a while. Because he's -- I don't know. He thinks he's Robin Hood or a socialist. I don't know. But he doesn't even get the redistribution of wealth right.
His plan to cancel $10,000 in student debt for anybody who earns up to $125,000 a year, is possibly the largest single transfer from poor to rich people in American history. Researchers at the university of Chicago have determined that President Biden's plan will shift an estimated $192 billion in earned income, to the top 20 percent of wage earners.
Just 29 billion will go to the bottom 21 percent. That's insanity. The cost to you, will be $427 billion. To put that into perspective, just this loan forgiveness, is more than the gross national domestic product of Hong Kong, and 182 other countries.
If you like social programs, great. This one is 36 times greater, than the federal government spent on Head Start, in 2022.
It was the support defense spending. Great. This is two and a half times larger than the entire budget of the U.S. Army, in 2022.
By the way, this doesn't include the non-cancellation elements of the Biden announcement including proposals to significantly cut many borrower's monthly payments by more -- you know, generous loan forgiveness in the future.
That's just today. So people who go to college, especially those who get degrees, and that's where most of the loan is sitting. In grad school. Okay?
They typically -- typically make 1.2 to $3.1 million more than those who don't get a degree over a lifetime. Job security, because they have a degree. Hmm.
So why are the little people helping out those people? By the way, grossly unconstitutional. Congress, not the president has the spending power. But that hasn't mattered for how long? Experts including former Obama administration attorney Charles Rose has argued that Biden lacks the authority.
Nancy Pelosi has said the same thing. Even the Department of Energy -- or, sorry. Education said, Biden doesn't -- I'm quoting -- Biden doesn't have the statutory authority to cancel, compromise, discharge, or forgive, on a blanket or mass basis. Principal balance of student loans and/or to materially modify the repayment amounts of terms thereof.
STU: Pelosi has now reversed herself on this. She's like, oh, no. It's a bold plan. The Department of Education. Is now they're citing that specifically, as having this authority. Even though, they themselves have said, they don't have it.
GLENN: Unbelievable. Absolutely unbelievable.
Okay. So what happens when we pour roughly another half trillion dollars into the economy. This is gasoline on the inflationary fire. It's already burning out of control.
By Jason Furman, the Harvard economist and former adviser to Obama, he said, the bill will increase inflation by .2 percent or .3 percent.
And that is likely underestimated. The knowledge that a president can unilaterally reduce student loan balances will cause debtors to upwardly revise the view of their own future income, encouraging more spending.
In fact, please play the cut we just played from Elizabeth Warren. Here's what she said, yesterday.
VOICE: Ultimately, what the data shows, is that because of student loan debt, there will be many people who don't move out of their mama's basement, who can't save up money to buy a home, who don't start small businesses. Who don't start a family. You relieve the debt burden some for those people, and we have more economic activity. In other words, canceling student loan debt is good, for the people whose debt is canceled, but it is also good for our economy and rest of America.
GLENN: How? How! We don't want more spending. That's why the Federal Reserve is raising interest rates. To -- to make people stop spending money. The idea of inflation to fight inflation, you've got to get the average Joe to stop -- have you ever heard, we've got to slow this economy down. It's overheating. What does this mean?
It means that they're going to penalize you, through taxes and higher interest rates, to get you to stop spending money. These people are just -- they are criminally insane, or they are just criminals. What they're doing to this country is just criminal. By the way, it's not debt cancellation. It's debt transfer. Here we are, living where food prices are the most since 1974.
Rents are soaring. The median rent payment for Bank of America customers. They're paying 7.4 percent in July, more than last July.
How about -- how -- hey. How is your energy bill? How is that air-conditioning bill?
Do you know that one in every six Americans are behind in their energy bill to the point of being cut off?
One in six Americans owe around $800 that they just can't pay. Energy is through the roof. And what are these people doing? What are they doing?
They're -- Biden, he's shutting down our minds, while sending our money to Canada, to their minds.
I mean, this is taxing us. Oh, nobody is going to -- well, the average person is going to cost -- is going to have to pay now, two had to dollars. Just for this, the average American has to pony up two grand.
Okay. Where are we going to get that? Where are we going to get that?
STU: Makes perfect sense though, right? Everyone ponies up two grand to pay 20 percent of the population ten grand. Right? That's just a transfer of wealth.
GLENN: Amazing. That's all it is. That's all it is.
STU: If you're not a recipient here, you'll lose badly. And if you are a recipient here, it will feel good for a short period of time, that it will screw up with the economy so badly, that you'll wind up losing all these benefits anyway.
That's what happened with inflation. They gave all these trillions of dollars away, during covid. And then all of it got wiped out with inflation, within a couple of years. How about deficit reduction? We just passed this Inflation Reduction Act.
Which, one of the main selling points of it, was it was going to reduce the budget debt by $300 billion over ten years.
In eight days, they spent all of that money, plus another 70 percent. In eight days!
GLENN: By the way, they think this is going to be -- because we'll be in even more problems with the loan situation, by 2025. They're expecting another one. At $1.6 billion. No. Sorry, $16 trillion.
STU: We don't comment with bills -- we just gave 3 billion to Ukraine yesterday. We didn't even comment on it.
GLENN: Yeah. This is crazy.
This is absolutely -- listen to me: Please, everything we've talked about over the years, it's happening. It's all happening. And you have got to understand that things can go awry. All we're waiting for is an event.
I mean, think of this. Think of -- we get into a real energy situation. Which, we could this winter. We get into a situation, where people cannot afford to heat their house.
We're going to have another bailout. But that's just putting a Band-Aid on the problem. In fact, it's reinjuring another part of your body. It will only make things worse.
And what are they doing? They're getting rid of all of our energy. And they're saying, this is a good thing for us.
It is not a good thing. These people have got to be stopped.
We have got to get out and vote -- if we could possibly win the Senate. I don't know how that's going to happen. But if we could possibly win the Senate, that's the best thing that could happen to us.
But we have to win the House. Have to. This stuff has got to stop. And the Republicans aren't going to do anything, except stop it. But if they don't stop it in its tracks, if we don't -- this is insanity. Insanity.
You're going to have blackouts. Imagine, having blackouts, throughout the country. That means you can't pump gas. That means your bank is not going to be working.
How long do you think -- remember Katrina. You have 72 hours. Seventy-two hours. People don't think that something is going to happen. That good guys are coming. You've got 72 hours of safety, before the bad guys start to go, oh. There's nobody coming. This is going to go on for a while.
It's not good. By the way, this is exactly what we said would happen in 2009. You know why we're in this situation? Because Barack Obama insisted on putting and taking all -- all loans on to the federal system in 2009. He said, no, no, no, no.
The bank shouldn't be involved in that. We'll take that on for ourself. And we told you at that time, stop listening to people that have lied to you, or who have just been so dramatically wrong. It was more important for them to score points, and say, oh, what an idiot he is. What a conspiracy theorist. I don't care what their motivation is.
But just recognize who has been telling you, what's really been going on.
Do not dismiss these warnings. Please. We told you in 2009, this is what's going to happen.
No. That's crazy! Look, here's the -- here's the one thing that you really need to know.
Socialism and Marxism has collapsed this country. We are not the America we have been before. We are not a constitutional republic. It has to be restored. It has to be restored. It has to be saved. Even if it's in the hearts of her people. It has to be saved. It has to be preserved.
Biden, if he's a socialist, man he's the worst socialist ever. He's robbing the poor, to pay the rich. That doesn't make you Robin Hood, man. That makes you the sheriff of Nottingham. You're not Robin Hood.
They tried to make it always look, we're Robin Hood, is what we are.
But when you're the king, and you have an army or a bunch of sheriffs that come to the doors of the common man, to demand taxes, and it all goes to the rich and connected. You can't claim to be the good guy. You're the reason why Robin Hood existed. He was fighting you.