If only President Obama would treat America’s small business owners as well as he treats delinquent borrowers, the U.S. economy might have a fighting chance at robust growth.
We’ll have to wait until Friday to see how slowly the U.S. economy expanded in the second quarter. But today Team Obama will tell Congress about its latest proposals to spread the wealth around—specifically from private lenders to the people who owe them money on student loans. The goal is to create new ways for borrowers to avoid repayment.
Having recently forced taxpayers to underwrite a series of such measures for loans issued by the government, the White House now wants the shareholders of financial companies to suffer even more when private loans go bust.
Not that there are many private loans left after Mr. Obama and Congressional Democrats seized control of this market with legislation that passed along with ObamaCare in 2010. With roughly $1 trillion in student loans outstanding, close to $900 billion are federal loans, and Uncle Sugar is responsible for more than 90% of recent loan originations. But the existence of a market sliver still occupied by private enterprise gives politicians a handy industry to blame for mounting troubles in a government-dominated business.
Read More at Wall Street Journal