Khanna: Student Loan Forgiveness Isn’t Inflationary Because Loans Aren’t Being Paid Right Now

On Monday’s broadcast of MSNBC’s “MTP Daily,” Rep. Ro Khanna (D-CA) argued that forgiving student loans would not have an inflationary impact because the loans aren’t being paid back right now anyway, and that if there is an inflationary impact to the move, “you can raise taxes on the billionaires and that would offset the cost.”

Host Garrett Haake asked, “What do you say to people who worry about the inflationary impact of a student loan forgiveness program that that’s essentially just — would ultimately lead to pouring more money into the economy at a time when inflation, voters keep saying, is one of, if not their top concern?”

Khanna responded, “I don’t think it would be inflationary. Because the students aren’t paying it back right now anyway. This would just be formalizing that they don’t have to live with this debt. And to the extent there is any inflationary impact, you can raise taxes on the billionaires and that would offset the cost. And that is another policy I think the president should do. While people are hurting, others are making billions of dollars and they aren’t paying their fair share. They want to see that — people want to see those billionaires taxed appropriately.”

Follow Ian Hanchett on Twitter @IanHanchett