77 votes

Peter Schiff: Why the Government Should Not Be in the Student Loan Business

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

school is bogus

i went back to school in the last couple of years for economics. i came out of there realizing that i shouldn't have left my job in the first place to go back to school because the economy is toast. macroeconomics is totally inapplicable, especially 4th year, which makes about 50 ceteris paribus assumptions to derive a pointless solow growth residual equation (the deriving of this equation took about 10 classes). universities are profitable businesses, but their curriculum can't keep up w/ the demands of a dynamic workplace in a constantly changing world.

when a wide-eyed kid tells you they wanna be an astronaut, no1 has the heart to tell em they're probably gonna have to hitch a ride w/ the russians.

My ears are bleeding!

I had to stop watching this video, the voice on this creature from progressive island made my ears bleed.

Natural Order

Progressive island or Jekyll island?

Or are they one and the same?

North Carolina has an election coming up Tuesday

North Carolina 7/17/12
Liberty candidates to Vote For:
[] Dan Forrest Lt. Govenor
[] Richard Alexander Sup. Pub. Instr
[] Mike Causey Ins. Comm
[] Scott Keadle House Rep Dist 8
[] Matthew Ridenhour Mecklenburg district 5 Comm
[] Adam Brooks Comm Randolph County District 5 (not sure if the election day is correct for him)
[] Mark Hopp Comm Alamance County

you really don't think making

you really don't think making sure everyone knows who to vote for in upcoming elections is worth it? I would love to have talked to Mr. Nystrom about my idea on how to make the DailyPaul viable after Nov 6th which would have eliminated the need for me to make multiple posts but I've yet to hear from him. I could just BS around here like so many others, but I decided to actually do some work and inform people.

Joη's picture

if you're allowed, others will think they can too

with much less useful information. It happens over and over. So we don't allow it.

You've already noted your suggestions on Nystrom's thread, so he'll read them.

"You underestimate the character of man." | "So be off now, and set about it." | Up for a game?

fair enough

Typical lefty demagogue ...

Leftists, socialists, fascists cannot yield anything, cannot listen or reason, it's their way. These sound bite TV "interviews" are a waste of time. They win because they ask people to emote and not think. Thinking nearly always loses to emotional sloganeering. Waste of time. Buy gold, buy ammo, store food; the SGHTF.

Bottom Line for me: Without my loan -- no career

I used loans twice in my education and paid them back with interest.
I also worked my way through school; it took both working and loans to pay my tuition and books.

The Pell Grant and The Graduate Student Loan allowed me to finish college and get my master's degree and enjoy my chosen field of work.
If I didn't pay off the loans with interest, I might agree with Schiff, but I doubt private industry would have provided me with payable loans of about 3% interest.

Also, school was affordable then. College now is financially grim.

Gwen Kraft

"Personal Liberty & Personal Responsibility" -- Dr. Ron Paul

"A hero is someone who understands the responsibility that comes with his freedom." -- Bob Dylan

This young lady is right.

It's always right to invest in human resources because, like, we should all be totally in favor of humans and of resources so what could be better than human resources when we're deciding what to invest in. Duh, Peter.

What? The government has an ironclad record of failure when it comes to managing both education and resources and you can prove it?

Ummm. I disagree. Everyone should be, like, brain doctors and astronauts and stuff. You're just a racist, Peter.

Schiff and shill


Schiff is confident in his

Schiff is confident in his arguments, while the young lady isn't so she continually talks over Schiff in the authoritarian manner.

While we are all born free, thus we are equal, some of us have talents with our hands and some with our minds. It's a balance needed to have a good society. And some of these fields really don't need a four-year or longer college degree.

Lets also remember what a poor job the government K-12 education is doing and how a lot of colleges have to offer remedial courses that prolong the stay.

I also agree perfectly with Schiff on college spending. Where I went to school, our student union was 50 years old but well-kept and it had the feeling of a place of education. They knocked it down, constructed a new 150 million dollar student union that has the feeling of a mall. Not a good trade and it is being paid for by fees and a tuition hike.

If you listen

to the first two arguments, Schiff is making an economic argument, and the PPI woman is making a moral/values argument. "Of all the things government can spend money on, education is most important...(sic)". The beauty of the Austrian position, is that, in the long run, free markets are more moral than governments, more stable, offer more benefits for more people, are more flexible and resilient. To turn progressives back into classical liberals, the notion that government is a legitimate agency for moral action has to be exposed as the tragedy it ultimately becomes. It justifies government meddling in markets, from macro bailouts to toilet size, and absurdities like "humanitarian bombing". Schiff and PPI lady are talking at cross purposes on different subjects. Ron Paul frames the problem correctly: what is the role of government?

If the gov't had a toll free number for

gov't backed loans to buy movie tickets...what would happen?
If anyone could call and open an account at 4% interest to buy movie tickets (nobody turned down) and get a card that you swipe at the cinema...what would happen?
If the gov't spent millions advertising this new subsidy and required every cinema to except "moviecare"...what would happen?
The user wouldn't be required to make any payments until the balance hit $25,000 or 4 years later.
Would it be good for business?
Would demand increase?
Would ticket prices go up or down?
Peter's point exactly!

I remember reading that a

I remember reading that a huge problem we have with education is that despite the fact that the economy is demanding more scientists, doctors, and engineers, the level of people graduating with degrees in those fields hasn't changed much in 60+ years (I think it may even be down from its peak).

There is only so much need for forestry and communications majors...

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

I'm fairly certain

that that is one of the points Peter Schiff is trying to make. That it does make sense to go to school if your intended occupation requires skills that you will learn in school.

However, people like the lady in the video view all schooling as essentially equal, and consider a communications major to be an "investment in human capital" that is just as valid as a medical degree. But, it can't be, if there aren't marketable skills that a person gains as a result of that schooling.

It reminds me of when Keynesian economists use formulas to describe the economy and use the symbol K to represent all capital, without attempting to distinguish any industry from another. "Education" is simply another aggregate, and they don't make a sincere effort to distinguish certain types of education from each other.

Perhaps the Counterpoint Woman is Obama's Economic Advisor?

A sure way to induce clenched teeth and cringe.

It sounds she bought the original Econ 101 text book that was used to drive the Bolshevik Revolution.

She has absolutely no understanding of Utility, Supply and Demand, or Free Market efficiency. Her only solution is to consider every subsidy as being good for mankind, regardless of how it it used. She considers everyone who opposes a subsidy as lacking compassion. No mention of the compassion of stealing money from the productive part of "humanity". No mention of the compassion of equally destroying everyone's standard of living.

This type of thinking dominates the voting majority and illustrates the frustration of those who want to apply useful solutions.

Gene Louis
Supporting a Needed Tool for Government Feedback:
A Citizen-Operated Legal System.

This mindset

is also common among people who support programs like the stimulus plan. None of them have any idea what specific projects any of the spending went to, nor are they curious to follow if any of the spending ever leads to anything successful. But if it is labeled as creating "green jobs" or some other buzzword, then they assume it is all super.

Peter Schiff had another appearance on CNN from a couple of weeks ago:

Another lady arguing against him says we need a "jobs plan." I frequently hear people like this argue that we need "infrastructure spending." If you pressed people like this for specifics, they never know which particular sectors to spend the money, or what infrastructure projects would be a good idea. They assume that astute bureaucrats will figure out the best places to send the money after intense deliberation, and then support any cockamamie scheme as long as it is labeled a "jobs plan."

I am consistently shocked that people are not subject to ridicule for suggesting things like "infrastructure spending" without any specific ideas, suggesting that all infrastructure spending is equally awesome.

Dear Diana, Your recent

Dear Diana,

Your recent interview with Peter Schiff on CNBC on the Student loan crises has drawn the ire of people on the Daily Paul. I do believe it is well deserved. Schiff has got it right. The interest rate being the price of money, and lower prices increasing the quantity of loans, has led to a surge in demand for college educations. That is just not disputable. When demand for a product or service increases, ceteris paribus the price of that product or service will rise as well. Education is no exception.

The result is a poor quality in students, and a poor quality in professors. Everyone and their brother has a PhD now, and everyone and their brother has a degree. So what is the point of having a degree if it doesn't make me any different than the millions of other people? In fact, people like me who actually like studying for its own sake are diminished by the gimmicky student who goes for the straight A model of learning, which is to just buy into everything your professor says, no matter how dubious it may sound.

Then of course you are subsidizing the frat boy and the sorority girl who basically just come in to have a good time and smoke pot and get drunk. They of course graduate college and may not have learned anything but still have the same degree that I do, and worse, sometimes their affiliation with the fraternity gives them a leg up because of the people they know.

Of course you're also subsidizing the NCAA effectively since money is fungible and part of the higher price goes to sports facilities.

Now we're graduating without jobs, and the situation was caused by the exact same kind of subsidies that caused the mess that resulted in our current unemployment situation. Look at government guaranteed housing. You said we should subsidize student loans before housing, but what happens when the student loan bubble pops too? Wont that result in massive layoffs of the most intelligent people, who will then clog the very labor market I am trying to enter?

The answer is yes. If people didnt go to over priced universities, they could have been out learning trades in the real world, or working straight out of high school and saving up till they can make a down payment on these loans. But the student loan subsidies have created a culture where working straight out of high school is frowned upon. People don't "deserve" to go to college. They deserve a fair market where the human capital is what matters, not the seal of approval of a big university that wants to turn people into debt slaves.

Thank You,


What is this fool's email?

I want to email her and tell her to take econ 101, she has no clue.

No, tell her to take Common

No, tell her to take Common Sense 101 instead

i can help her with her arguments

If we dont subsidize education, most people would only study productive endeavors where jobs are waiting and who would would be left to study philosophy and Keynesian economics


Would anybody write me a recommendation to the university of phoenix?

this should be on the front

this should be on the front page

as the old saying goes, its

as the old saying goes, its tough to teach an old dog new tricks


regardless of whether the

regardless of whether the college graduates have jobs or not, the price for college is still inflated by having too much govt interference.

exactly, and i was so annoyed

exactly, and i was so annoyed that all these jersey dumb blonds and "the situation" knock offs would come down to my local university (of delaware) basically to get drunk and go to frat parties until they got a degree that would give them preferential treatment over people who worked out of highschool. Now I didnt work out of highschool, I went straight there, but it always also annoyed me that I was given the evil eye for actually asking questions in class.



Peter = always right... he makes sense... That women progressive democrat... my god, just listening to her made me want to punch the screen.... So blinded, biased and not willing to take a step back and just open her fucking mind... that is all

Unfortunately, I think the

Unfortunately, I think the young women is a product of our education system - love everybody, everyone is entitled to health care and education, a nice home, etc. We will never convince these types that free markets work and price fixing (i.e student loans and insurance) always drives up costs and makes it even harder for poor folks to go to college.