Representative Alexandria Ocasio-Cortez boasts a Bachelor’s degree in economics from Boston University – but she must’ve fallen asleep during one of her lectures in macro 101.
Following the Federal Reserve announcing that they’ll be stepping in to provide $1.5 trillion in liquidity to the markets yesterday, AOC, having no idea what any of that means, seized upon the news as proof that the money could’ve instead been spent on cancelling everyone’s student loans.
FYI, the amount that the Fed just injected almost covers all student loan debt in the US.
There is absolutely NO excuse for not pausing student debt collections, planning for mortgage &rent relief, etc.
We need to care for working people as much as we care for the stock market. https://t.co/IT6qZA2gtt
— Alexandria Ocasio-Cortez (@AOC) March 12, 2020
The obvious problem with her logic is that the Fed isn’t handing over $1.5 trillion to banks, they’re effectively offering $1.5 trillion in extremely-cheap short-term loans so that banks can meet their short term financial obligations without disruption. Nothing is being spent.
In other words, AOC is effectively proposing eliminating student loans by giving students another loan. A fascinating strategy for sure.
Whether or not she actually knows better or is just trying to exploit a fan-base she knows for sure doesn’t is impossible to know – but sadly she wasn’t the only notable individual pushing this bogus narrative. Countless others misinterpreted the Fed’s move as proof that Zimbabwe economics is viable.
Andrew Yang, who ran for president under the slogan “Make America Think Harder,” used the Fed’s policy as proof America could fund his $1,000 a month cash for life giveaway (no lottery ticket required!).
$1.5 trillion is enough to give $1,000 a month to everyone in the country for 4-5 months. https://t.co/vkElzb5bbb
— Andrew Yang🧢⬆️🇺🇸 (@AndrewYang) March 12, 2020
Meanwhile, the grassroots “People for Bernie” group used their misunderstanding of economics to mock people who are concerned about how to fund their chosen candidate’s $50+ trillion agenda.
But how will we pay for it? https://t.co/T9iheWidnn
— People for Bernie (@People4Bernie) March 12, 2020
As did the Cuba sympathizer they rally behind:
When we say it's time to provide health care to all our people, we're told we can't afford it.
But if the stock market is in trouble, no problem! The government can just hand out $1.5 trillion to calm bankers on Wall Street. https://t.co/szXeqQmalq
— Bernie Sanders (@SenSanders) March 12, 2020
The Clinton administration’s former Labor Secretary also chimed in to confirm over two decades later that he wasn’t qualified for the job:
I'm sick and tired of the establishment saying we can't afford to provide health care for all Americans.
We're injecting $1.5 trillion into short-term bond markets.
— Robert Reich (@RBReich) March 13, 2020
And the rest of the internet left wasn’t much better:
Since we’re canceling everything, let’s cancel the right-wing talking point “but how will we pay for it?” too. https://t.co/zfM9SR9zmM
— Adam Best (@adamcbest) March 12, 2020
— Bad Econ Takes (@BadEconTakes) March 13, 2020
Where the hell are they getting all this money to bail out the financial titans of Wall Street?
Meanwhile, they reply to demands for Medicare, college tuition debt, and climate change with:
"BuT HoW WiLl We PaY fOr It?" https://t.co/KlmpvqWt4e
— BrooklynDad_Defiant! (@mmpadellan) March 12, 2020
The "but how will we pay for it?" crowd awful silent today pic.twitter.com/NRxGNqDzrn
— jordan (@JordanUhl) March 12, 2020
This is what we’re up against folks.
