Student Debt Cancellation Would Increase Wealth, Not Inflation

What Canceling Student Debt Will and Won’t Do

With a two-year student loan moratorium expiring on August 31, President Biden is expected to announce a decision on student debt cancellation in the coming days.

What shouldn’t factor into that decision: inflation fears.

“From energy to trade policy, there are many difficult administrative policy questions that could impact inflation over the next year,” Roosevelt’s Mike Konczal and Alí Bustamante write. “Student debt cancellation is not likely to be one of them.” 

“Our work has shown that student debt cancellation will increase the wealth of millions of Americans who need it the most and promote racial equity—all without increasing inflation.”

Read on for three reasons inflation isn’t a factor.

What’s Next for Industrial Policy Post-IRA

This week, President Biden signed the Inflation Reduction Act (IRA) into law.

A first step toward a greener, more equitable economy, the IRA will bring the US almost 70 percent of the way to its Paris Agreement targets through investments in green industrial development and infrastructure.

In two new issue briefs, Roosevelt experts and allies explain how the Biden administration can pick up where the IRA leaves off, and ensure that these investments benefit people—not corporations: 

• In “Seven Ways the Executive Branch Can Turbocharge Green Industrial Policy,” Arnab Datta, Ashley George, Joel Michaels, and Todd N. Tucker describe the seven executive actions that could help us meet 100 percent of our climate goals.
• In “The Need for Corporate Guardrails in US Industrial Policy,” Lenore Palladino and Isabel Estevez explain how we can protect and prioritize the average American instead of shareholders and profits in green industrial policy investments.

How Family-Friendly Policies Strengthen Our Economy

When states adopt policies promoting the well-being of parents and children, they see a positive impact on female labor force participation, Roosevelt’s Joana Duran-Franch and Ira Regmi find in a new study.

“States have the ability to support women—and state economies—by investing in childcare and parental leave,” they write.

Another finding: There’s a positive correlation between states with family-friendly policies and those that protect reproductive rights.

Learn more in “Family-Friendly Policies and the Motherhood Employment Gap during the COVID-19 Recovery.”

What We’re Reading and Listening To

Democrats Pass Major Agenda Items, but They Have a Lot of Hard Work Ahead [feat. Roosevelt’s Felicia Wong] – Marketplace

5 Ways the Inflation Reduction Act Could Save You Money [feat. Roosevelt’s Emily DiVito] – Washington Post

The Inflation Reduction Act’s Quiet Revolution on Public Power – The American Prospect

Inflation Is Causing Real Pain. But Raising Interest Rates Will Make It Worse – The Guardian