Bernie Sanders announced his education plan today. He would forgive all student debt, roughly $1.6 trillion. He previously said that the federal government should spend $47 billion more per year on education. He would pay for it by adding a tax on all stock, bond and derivative transactions.
People are certainly entitled to their opinion. The problem is that Sanders doesn’t even understand the basics of economics. Recently he seemed confused over the difference between revenue and profit. He claims this is a tax on Wall Street. There is no way they could afford it so the costs will be passed along to investors.
I guess I am one of the fat cats he hates so much. I am retired and live on a modest income. I supplement it through investing. This would probably cost me $2,000 to $3,000 a year.
There are too many people like Bernie Sanders who rely totally on their political ideology and prejudices to make policy. Sometimes facts do come in handy.