Vulnerable Cindy Axne is the only Democrat from Iowa in Congress and claimed President Joe Biden’s student loan forgiveness program “will bring down inflation” despite what prominent Democrat analysts and economists have proven.
Axne, on KMA Land’s Morning Line program Friday morning, disputed the notion that Biden’s student loan forgiveness scheme will increase inflation. She referred to an analysis by Goldman Sachs from the previous day that indicated the scheme will have “small” inflation impact.
“Goldman Sachs presented an analysis which showed that while the net effect of debt forgiveness and the resuming student loans payments will likely be modest but will slightly disinflationary so it will bring down inflation,” Axne stated, emphasizing that it is not going to negatively impact inflation .”
” People come to me all the time. Axne said that realtors tell him student loan debt prevents people from purchasing new houses.
“When people buy property it not only helps the economy but also creates jobs for American appliances and other goods. If they have a family this will all be great. She explained the reasoning behind this. So, it’s a good thing that this will not negatively impact inflation .”
Last week, Biden announced his decision to forgive $10,000 of federal student loan debt for certain borrowers that make less than $125,000 per year and up to $20,000 for Pell Grant recipients. It was a campaign promise to “working families” that student loans would be affordable.
The Goldman Sachs analysis that the Hawkeye State Democrat referenced was released last Thursday, claiming that the impact of Biden’s plan on inflation would be “small” and boost the gross domestic product (GDP) by about 0.1% next year.
Despite what Axne claimed on radio, multiple analyses from the nonpartisan Committee for a Responsible Federal Budget (CRFB) said that Biden’s student loan forgiveness scheme would cost around $500 billion over a decade and would meaningfully boost inflation by 15 to 27 basis points over the next year.
On Friday, the University of Pennsylvania’s Penn Wharton Budget Model analysis also noted that the “debt cancellation alone will cost up to $519 billion,” but “depending on future IDR program details to be released and potential behavioral (i.e., “non-static”) changes, total plan costs could exceed $1 trillion.”
Additionally prominent Democrat economists warned that Biden’s plan wouldn’t help inflation.
In a series on social media, Larry Summers, treasury secretary under Bill Clinton, and director under Barack Obama’s National Economic Council, stated that “Student Loan Debt Relief is Spending That Increases Demand and Increases Inflation.” It is also likely to increase inflation by increasing tuition
Jason Furman, a former economic advisor to Obama and Bill Clinton in their presidencies, also stated that “Pouring approximately half-a trillion dollars of gasoline on an inflationary fire which is already burning is reckless .”
” Most importantly, everybody else will have to pay this in either higher inflation or higher taxes or lower future benefits,” Furman said.
Axne’s Trump-backed Republican challenger state senator Zach Nunn told Axios Des Moines that he doesn’t agree with Biden’s student loan forgiveness program because it unfairly targets Americans who have paid off debts already and those who didn’t go to college.
Nunn stated that colleges must address rising tuition costs. He also expressed concern that loan forgiveness could reduce incentives to people to pursue under-filled career options like nursing and teaching.
National Republican Congressional Committee spokesperson Mike Berg said to Breitbart News that Cindy Axne was either lying or out of touch in order to represent Iowa at Congress. Joe Biden’s student loans handout will increase inflation .”
Republicans want to replace Axne and Nunn. The House Republicans are seeking a net gain at least 5 seats to win back their majority and remove Pelosi as Speaker.
Along with generic ballot polls showing the Republicans have a good chance at taking back the majority, Breitbart News has chronicled numerous polls that show the battlefield has expanded to more districts than in years prior and, in some cases, even to typically safe seats that Biden carried in the last presidential election by between 11 and 15 points.
One of the polls by RMG Research found that Axne was losing to Nunn eight points. Of the four hundred likely midterm voters in the district from July 29 to August 5, 49 percent said they would vote for Nunn, while only 41 percent said they would vote for Axne — which was outside the poll’s 4.9 percent margin of error. Zwei percent indicated that they would vote for “someother candidate” and eight percent stated, “not certain .”
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In 2018, the Democrats took the House from the Republicans. In 2020, after striving to reclaim it, the Republicans left the Democrats with the slimmest majority in modern history and gave themselves the upper hand in the midterms.
To win the majority, Republicans will need a net gain only of five seats in November. Much is at stake in the Senate and the House. Republicans could win one of these seats, which would mean that Democrats or Biden may have greater difficulty passing their agenda items in the House and Senate before next year’s presidential election.
According to analysts from multiple organizations and news outlets, Republicans are currently projected to win back the majority in the House with anywhere between two and 35 seats, while only needing to net five seats.
Jacob Bliss is a reporter for Breitbart News. Write to him at [email protected] or follow him on Twitter @JacobMBliss.
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