More Socialism, Please!

Underachievers? ...Like the banks? If you are a casual follower of politics, you probably have heard that President Obama is a socialist. As a political junkie, this just didn't seem at all accurate to me. Of course, it is not accurate. It is what is called hyperbole--a claim based on some fact that is blown way out of proportion and used to sway voters that don’t follow every step of every political “player”. For instance, you may have heard that President Obama “socialized” the federal student loan program. I had heard this years ago and I decided to research the issue. What I found is that Obama stopped paying banks to give loans to students and instead restructured the program so that the government would give student loans directly, cutting out banks as the middlemen. Of course, the banking industry didn't like that. Apparently the Republican party didn't either, hence, it was labeled a "socialist" program. But can’t such a change only save the country money? How can it not cost less to make loans to students directly rather than have to pay the salaries and bonuses of bankers in exchange for them servicing the loans? A wikipedia.org article states: "By directly lending to students, the government is projected to save taxpayers $68 billion dollars over the next several years." You would think that would make Republicans, and all Americans happy. The only concern I have been able to uncover from critics of the change is that the banks were “assuming risk” that the US government will now have to assume. OK, that is a valid argument.  But does that make the new program socialism? I believe that any thinking person would have a difficult time accepting that assessment. Furthermore, if there was so much “risk” why would the banks be willing to service the loans? I have a hard time believing that they did it out of the goodness of their hearts, but rather believe they did it because it was lucrative for them to do it. So then, how could it not be more economical to cut them out of the equation? Most people in the country feel that higher education is important for Americans to achieve the American dream and for the country to continue to prosper. That being the case, politicians will always pretend to care about and promote programs that keep student aid available. When interest rates are high, students are not able to pay the interest fees. To keep higher education affordable, the federal government used to pay banks the difference between the high interest rate and a modest rate that students can actually afford to pay. This was an issue during the 2004 presidential election. Interest rates had fallen dramatically yet the federal government was still paying banks the high interest rate. It was a great deal for the banks. Not so much for the US taxpayer and was no benefit at all to students. So if people want to call common sense, cost-saving measures “socialism”, then maybe we should reexamine our fear of socialism. Or at least re-calibrate our BS sensors to recognize political hyperbole. If Republicans have a better plan for student loans, then show us the plan. Explain why it is better. Resorting to such ridiculous rhetoric indicates a weak political position, poor judgment and dishonest manipulation of facts, voters and the system. When politics reaches this low point, the country is in serious trouble. ~R. Charan Pagan information systems technologist, musician, writer, filmmaker Los Angeles, CA 90017 http://www.reclaimingourbirthright.blogspot.com/