Canceling Americans’ student debt, as prescribed by Elizabeth Warren and other Democratic presidential candidates, would have an adverse effect on the U.S. economy, a survey of business economists showed Monday.
Sixty-four percent of respondents believe forgiving most or all of student debt in the country would be a net negative for the economy, according to the National Association for Business Economics.
Americans owe about $1.6 trillion in student loans, a number so staggering some borrowers will die before paying off their loans. Advocates have argued forgiving student loans could even the playing field for Americans, reduce the wealth gap, and provide opportunities for a debt-burdened middle class such as buying a home.
When asked about raising the minimum wage, almost two-thirds of survey respondents are in favor of it. However, approximately 40% say it should be raised without exception and 19% believe the federal minimum wage should be abolished altogether. Eleven percent say there’s no need to increase it.
The survey included responses from 226 National Association for Business Economics members and took place July 14 to Aug. 1.