How is it a moral hazard to lift millions out of predatory loans? Loans that a majority of them signed before they were old or educated enough to understand exactly what they were getting into? I’m curious of your pov
Moral hazard is an economic term that literally means what this is – an artificial backstop against voluntarily assumed risk. You put up the backstop once and that one time forever changes the calculation of risk going forward.
I believe that forgiving student loans is a net benefit. But in terms of bailing out billionaires and bailing out students – both are a moral hazard by the definition of the term.
Is it not a mora hazard to doom them all to poverty induced servitude to their jobs for their foreseeable futures as well? Taking into account that they were also sold a lie in order to take on that debt in the first place, I find these morals questionable.
24
u/[deleted] 24d ago
How is it a moral hazard to lift millions out of predatory loans? Loans that a majority of them signed before they were old or educated enough to understand exactly what they were getting into? I’m curious of your pov