We all know that the gap between the rich and poor is widening. Dr. Pikkety, an economist, and Senator Elizabeth Warren, authors on the global topic of this inequality. Examined are the causes, possible solutions such as cleaning up the tax system applicable to the rich, and the historical context that the tax system rests within.
One topic that they address in regards to the rising inequality are student loan debts. Currently, the U.S. is home to $1.2 trillion in student loan debt, with 40 million Americans with outstanding student loans. According to Senator Warren, it’s dragging down the economy. Young people burdened by student loans are unable to participate and pull their weight in the economy by purchasing houses, cars and returning money into society. The inequality of the rich and poor is a trickle on effect to situations like this, and Senator Warren suggests that low interest rates or “forgiveness programs” need to be implemented on all outstanding student debt to relieve their burden. “These are not natural forces that make this happen. It’s a set of rules by which we govern ourselves….I believe we can fight back, I believe we can win.”
Watch the below interview with Huffington Post’s Ryan Grim for more on the issue.