On Tuesday’s broadcast of the Fox Business Network’s “Cavuto: Coast to Coast,” Purdue University President and former Indiana Gov. Mitch Daniels (R) stated that research by the Federal Reserve shows that when government increases subsidies for student loans, most of that ends up being pocketed by universities in the form of higher costs, and “there’s no reason not to believe that’ll happen” with the Biden student loan debt cancellation plan.
Daniels said, [relevant remarks begin around 3:30] “It’s what, in my healthcare days, we called iatrogenic, meaning the cure makes the disease worse. It’s well-established, Neil, that each time the government has added subsidies, universities have pocketed. One Federal Reserve study said 60% to 70% of that in higher costs. And there’s no reason not to believe that’ll happen again. So, I really think this is a very unfortunate demonstration on the part of those who have discovered the power they believe they can assert to spend over a half-a-trillion dollars without the approval of Congress. I will say that those who assert that right in the presidency by the stroke of a pen really should not be lecturing anyone else about lack of respect for democracy.”
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