Wednesday, January 5, 2011

NDP Support Student Debt

So picking on the NDP is like shooting fish in a barrel. So what. This is fun. Eventually I'll get to everyone else, but right now the NDP have the most detailed platform published on their website. The Liberals are starting to talk, they're advocating some kind of National Food Policy. But that's a different post. For now, here's the NDP's statist solution to high tuition costs and student debt:

Social Policy 3.2 Post-secondary Education and Training

1. The establishment of a Post-Secondary Education Act to guarantee stable funding, and protect principles of accessibility, quality, academic freedom, public administration and not-for-profit delivery

No, no, no, no, no, no, no. Let's break this down one by one:

Accessibility – Student loans are great tools; unlike a mortgage, you can't default and unlike a credit card, you can't go bankrupt. The creditor always wins on the student loan. The entire post-secondary process is fraudulent.

School resources are scarce, costs indicate the best allocation of these resources. Consider all the individuals entering post-secondary school with wealth accumulated by themselves, or family members, or even private borrowers. When everything was paid by private capital, things tended to work out. But now consider when the State enters with either stolen wealth or counterfeit money. The idea is to provide accessibility to those who can't afford school, but eventually everyone becomes dependent on student loans. This is why:

Funding –
Schools see an unexpected increase in applicable students courtesy of the loans that never would have been made voluntarily. The increase of students puts pressure on the schools to raise prices, particularly tuition. Seeing the higher prices offset the coercive loan program it's involved in, the State starts funding the schools directly, with more stolen loot. This helps create a cycle for the more funding the school receives, the less private capital is needed, keeping prices artificially high, thus becoming more and more dependent on student loans. But student loans are also driving prices higher, as the influx of new students are a strain on the school's resources. State funding helps drive out private investment that would indicate real costs.

As State funding gets schools to expand their resources, funding, perhaps unintentionally, drives up the price of school. Student loans help drive the tuition price higher as more students pile in and use the school's resources. It's a vicious cycle where price only goes up as more and more loans are made.

Quality – Student debt is a plague that can't be easily shaken off. Is school really worth the price? When a mass of people decide it's not, the bubble bursts. It's unfortunate that some of the most important professions like doctors and nurses, can only be attained by taking on massive debt. The quality of education may be okay but the costs are grossly inflated.

Academic Freedom – I've never attended a university so I don't know how much freedom of speech is tolerated. I've heard bad stories, I've heard good ones. Professors who praise John Maynard Keynes and those that use Human Action as the main textbook. It depends on the school and the quality of education the individual prefers. Why would the NDP advocate using force to interrupt this peaceful process?

Public Administration – Part of the problem. These jobs almost completely rely on the State funding that's been appropriated without any compensation. These bureaus are in charge of keeping the statist quo.

Not-for-profit Delivery – A not-for-profit organization relies on arbitrary calculations based off of a guaranteed money source. Not-for-profits are fundamentally wealth-destroying. Profits indicate the most efficient ways to allocate resources. Without profit, bureaucracies arrive.

2. Increasing post-secondary education transfers to provinces and territories

The State is worse than piracy. It's like an annoying classmate that just keeps talking and won't go away... and constantly steals your lunch money, but then gives it to the kid that brought a lunch.

3. Measures to halt further privatization of education

It should read: Measures to continue on with the status quo.

4. Reducing tuition fees by working in collaboration with provincial governments

That is not going to reduce tuition fees; bureaucrats having meetings will not result in any kind of progress. The good solution is to stop spending money on these schools, the best solution is to stop taxing in the first place. But I digress,

5. Relieving student debt through needs-based grants, maintaining low interest rates for student loans, and simplifying student aid programs; and

No more student loans = no more student debt. It's that simple.

But let's look at the NDP's proposals. Instead of allowing private donors – like charities – to send the poor to school, the statists want to set up a grant system. More debt. The low interest rates will help ensure more debt accumulation for more students. Higher rates will help burst the bubble. Tanstaafl. Wanna simplify student aid programs? Get the hell out of the business!

6. Supporting literacy programs and adult education and training.

It really does sound like a good idea, but people can invest in these things themselves. If the State wasn't taxing everyone all the time then we could afford a higher standard of living. The State gives back less than we put out. The free market produces.

The NDP can fix these problems by coming to power and dismantling government. Starting with taxes.

Does anyone else think Olivia Chow is a major milf?


  1. A major cause for rising student debt is our increasing education cost. Young students don't think too much about the financial hassles that might come in the future. They get attracted to modern amenities and are often tempted to apply for loans.

    Students who're burdened with debt are advised to go for free counseling sessions. These counselors have the knowledge and vision to guide students who're under debt, and can help them restore their credit worthiness. Once we're shown through the solutions, it becomes easier to keep student debt (Student Debt - Rising demand for Student Loan) under control.

  2. Tanstaafl, somebody is paying for these counseling sessions. Regardless, keeping student debt under control doesn't get at the core problem of why there's student debt to begin with. Government loans and funding to schools have created an "education bubble" that will burst. Once upon a time, post-secondary education was affordable.