Monday, August 26, 2013

Obama admits many Americans can’t pay college loans in his economy

How bad is the economy?

So bad that “our economy can’t afford the $1 trillion in outstanding student loan debt, much of which may not get repaid because students don’t have the capacity to repay it,” President Barack Obama told college students at the University at Buffalo, N.Y.

So bad that “if you drop out of high school today, you’re basically condemned to poverty and social failure,” Education Secretary Arne Duncan told reporters prior to the president’s speech.

“There are no good jobs out there. If you have a high school diploma, there’s almost nothing for you,” Duncan admitted.

Each year, roughly 1.3 million Americans drop out of high school without diplomas. That’s about a third of all youths, suggesting that more than 50 million Americans do not have a high-school diploma, amid intense federal oversight of the government-run education system.

The numbers are worse for minorities that Obama says he want to aid.”Only 56 percent of Hispanic, 54 percent of African-American … students in the U.S. graduate with a regular diploma, compared to 77 percent of white students and 81 percent of Asian Americans,” according to the Alliance for Excellent Education.

The top-level confessions of economic paralysis came amid a rash of bad news.

The reports show a sustained drop in wages and family income, a gradual shift in employment from full-time to low-wage part-time work, and job growth that barely keeps pace with population growth and new immigration, despite four years of deficit-funded stimulus funding that have pushed the federal debt above $17 trillion.

The bad news comes as Obama pushes for an immigration rewrite that would invite 46 million foreign workers — most of whom would be the unskilled relatives of recent legal and illegal immigrants — over the next two decade to compete for jobs against the huge pool of unemployed and underemployed Americans.

That pool is estimated at 20 million to 57 million Americans, and includes people who are now looking for full-time jobs and those who would take jobs if wages were growing in a vibrant economy. The Senate immigration bill, passed in July, would allocate only up to 15 percent of green-cards to skilled immigrants.

Obama argued that the fix to the tightly-regulated, indebted economy is more federal spending and more regulation, plus more federal control of colleges and universities.

“Higher education cannot be a luxury — it is an economic imperative. Every American family should be able to afford to get it,” Obama declared, as he announced plans to leverage federal control over student loans into more federal control over colleges’ operations and admissions policies.

Full article: http://dailycaller.c … oans-in-his-economy/

Share on Tumblr Flattr this