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The New York Times published an article by columnist Paul Krugman Thursday that argued people who are concerned about the impact President Biden’s student loan handout will have on inflation are “scaremongers.”
Wednesday Biden announced $10,000 handouts for those with federal student loan debt making less than $125,000 and up to $20,000 for Pell Grant recipients. According to the Committee for a Responsible Federal Budget, this plan will cost taxpayers approximately $500 billion.
In his article “Student Debt Relief Versus the Scaremongers,” Krugman wrote that Biden’s “debt forgiveness was much less generous than many progressives wanted but more generous than many expected,” but he said “it will be a big deal for millions of Americans.”
As for whether it will “significantly increase inflation,” Krugman claimed, “The answer, if you do the math, is a clear no.”
This marks a stark contrast from the view articulated by fellow New York Times columnist Andrew Ross Sorkin, who said the debt handout will make it harder for the Federal…