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The rich pay full tuition when the child is born. Eighteen years later, the
child goes to college at nearly two-decade old prices without intervening
inflation. The monetary difference between then and now is made up by raising
tuition on the poor and muddled-class who pay as they go. Thus, like the
traditional Ponzi scheme: The first-in get paid by later suckers.
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The traditional definition of inflation is more money chasing the same goods
and services. Anyone thinks all these schemes to help the muddled class by
grants and tax exemptions ignores the basic definition of inflation. Hillary
Clinton's $350 billion college package is gasoline for the fires of inflation
and fuel for the exploding national debt. And, education will not increase
one iota like Obamacare's throwing money at healthcare. Putting more money
into the buyers' pocket is inflationarily silly when the price solution is
increasing the number of providers or efficiency of product delivery. (Despite
promises, Obamacare has not increased efficiency or productivity of healthcare
delivery.)
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Furthermore, the muddled-class pays the added bureaucratic costs of managing
the various 529 programs. 529 programs are not self-financing. Tax dollars
pay for the crony bureaucrats and obnoxious television ads. Anyone who thinks
politically appointed cronies out-guess hedge funds and private equity firms
is not in their right mind. The muddled-class pays the funding taxes, not
the rich Trumpees.. Adding unneeded middle-men always drives up the price
of any goods or services.
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Increased Federal Debt means de facto Federal College Loan: Anyone
who thinks taking a tax-credit helps a student's education and career igknows
how each tax-deficit credit adds to a jumbo student loan called the National
Debt to be repaid by the students in the future ... with interest! In other
words, the parents are not saving money, rather, they are borrowing money
from the children and grandchildren they think they are helping. Because
of probable social and economic collapse when the national and state debts
are unmanageable, the 529 kids won't have to worry about paying off the debt.
Like the jobless Syrian refugees, the 529 co-enabled, unemployed or
under-employed college students do not and will not worry about either public
or private debt.
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529s are the nexus of igknowance, stupidity and greed of people who think
they can get something-for-nothing but 529s are nothing compared to 401ks:
In one generation, the muddled-class lost 90% of its retirement. It pursued
the sports patho with self, siblings and offspring in the belief that they
could get something-for-nothing by playing funny games with funny numbers
on funny paper.
Pro ...
Con
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