By Jonah
Goldberg
Wednesday,
July 05, 2023
Last
week, the Supreme Court scuttled the Biden administration’s attempt
to forgive more than $400 billion in student loan debt.
As a
matter of policy, broad-based student debt cancellation remains a terrible idea
for a host of reasons.
While
targeting relatively small debts held by lower-income community college
graduates is more defensible, sweeping student debt forgiveness is regressive, rewarding people with an asset—a
college or graduate degree—who are better equipped to pay it off than other
debt-burdened Americans.
At a
time when the government is still fighting inflation, it was “reckless”—in the words of Obama administration chief
economist Jason Furman—to pump billions into the economy.
Finally,
it’s counterproductive on its own terms. The debt payment moratorium,
implemented by the Trump administration and extended by Biden, has led to more
borrowing. According to a University of Chicago study summarized in The Economist, “the pause in student-loan
payments caused borrowers to rack up more debt, not less.”
But if
Democrats want to ignore economic reality and reward a key constituency by
having other people pay their debts, they’re free to do so. There’s just one
hitch. Congress needs to do it.
In 2021,
Joe Biden questioned how much authority he had to cancel
student debt “by signing with a pen” and then-Speaker Nancy Pelosi said he didn’t have the authority to do that.
But under intense pressure from the left of their party, they reversed course.
They discovered a ridiculous pretense under the 2003 HEROES Act
and reversed the Department of Education’s standing opinion.
Fortunately,
the Supreme Court upheld the constitutional separation of powers. Congress, not
the president, has the power of the purse.
“If my
fellow citizens want to go to Hell,” Supreme Court Justice Oliver Wendell Holmes
Jr., famously said, “I will help them. It’s my job.”
Holmes’
reputation as a philosopher-jurist and civil libertarian has long been in need
of a sharp revision. Holmes was a majoritarian, and
because he was a jurist during the Progressive Era, his judicial restraint—a
refusal to strike down government actions during a time of government expansion—was
admired by those seeking to expand the government.
But
Holmes had a point. It’s not the Supreme Court’s job to stop politicians and
the voters who elected them from making bad decisions so long as they don’t
violate the Constitution in the process.
The
problem is that after decades of the judicial and executive branches doing
Congress’ job—often at the behest of a dysfunctional Congress unwilling or
unable to live up to its responsibilities—judicial restraint is now seen as
judicial activism. The court didn’t rule that student debt can’t be forgiven,
it merely said that government has to do it right or don’t do it at all.
Whatever
you think is the right policy on student debt, I think this is very good news
for our politics. The accumulation of power in the presidency has fueled
polarization by making presidential elections look like parliamentary elections
in which new presidents have sweeping authority to do whatever they want. But
our constitutional order is not designed for these kinds of zero-sum politics.
The presidency is not equipped to legislate.
Executive
orders can be reversed by the next executive. Because the bases of both
parties don’t know or care about how policy ends are achieved, every new
administration swings for the fences, trying to do as much as it can get away
with, to the cheers of their partisans in Congress and media. And they’re soon
swept from power as a result.
Hence
the great paradox of American politics today: You can get what you want if you
win more elections, but to win more elections you need to ask for less.
This
cycle of overreach and correction was made possible by a Supreme Court that has
long turned a blind eye to the separation of powers.
The
shift toward a better politics may have already begun. On Monday, Vice
President Kamala Harris told NPR, “Look, we have three branches of government.
The court took rights from the people of America. Congress can put those rights
back in place. We cannot through executive action. Congress can.”
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