Murphy for WI

So I received this comment today regarding student loan forgiveness:

“Adam Murphy nothing is free. So it is costing us something. Stop living in fantasy land that estimate mean something and stuff is free.”

And here’s an example of common sense. Something anyone and everyone has probably thought - nothing is free.

There’s no free lunch.

And common sense would be wrong.

All our economic growth is based on things being “free.” On their being a surplus for producers and consumers — which is profit for businesses that they reinvest or spend, and prices for consumers that are lower than they would be willing to pay.

I know that seems weird, but it’s how economic growth happens, and it means we are getting something for free - profits or some level of product/service that we would pay more for.

Regarding the student loan forgiveness, the estimates are that it will pay for itself and increase GDP by 0.1% over ten years. In other words, it will cost us nothing, make us ever so slightly richer as a nation, and help tens of millions of people… and yes, for free.

From a professor of economics at Harvard. A breakdown on some of the data associated with student loans now, compared to the mid-1970s.

Part of the problem is that tuitions (and consequently loans) have risen about 4x - 5x the rate of inflation. And much of that has been caused by easily accessible, non-collateralized loans.

Opinion | Why I Changed My Mind on Student Debt Forgiveness Our current system of student loans and college funding is at odds with what we hope to achieve by encouraging people to go to college.

So there’s been a lot of discussion recently about what a recession is or is not.

A generic and publicly used simple definition is: when Real GDP declines in two consecutive quarters.

Real GDP is adjusted for inflation, and has flattened in the last two quarters, that’s true. Nominal GDP (measured in todays dollars) is still climbing. But, for perspective, since Biden took office, Real GDP has grown 7.6% in 6 quarters, which is still well above the pace of the last 40 years. Even with inflation and even with the recent slow down.

The real definition of a recession is much more complicated, involves multiple variables like unemployments changes, wages, inventories, etc., and is determined by the NBER - National Bureau of Economic Research.

Not the media. And not politicians.

As with everything in macro economics, it’s rarely a hard and fast science. This isn’t chemistry. And this last two years has been like no economic period before it.

Here’s some historical and economic context:

WiscoTakes on TikTok with .0 Hi Nick, don't you think it would be beneficial to use your platform to educate your constituents rather than mislead them?