The second Obama blunder in a single week!

President Obama announced that he wants college to be free for two years. You can read the details here.

Although educating our young people is great, the first thing that I thought about is “who pays?” Yes, you’re right. You do.

The plan is to spend many more billions of dollars that we don’t have, and must borrow so these people can go to college on your nickel. Or the nickel of other countries that are financing our debt until we go bankrupt. As I’ve written before, I think that we will be done in ~2018, and you’ll see soup kitchens again. Be ready to buy Swiss francs before the U.S. dollar collapses.

Our president, in an effort to buy votes for the Democratic Party in the next election, is giving away everything again. Our government spends far in excess of its income and cannot bear to live within its budget, or actually pay down debt. The best it can do is refinance some of it. He wants federal taxpayers to pay 75% of the cost, and the states, 25%. I’m sure that the states will love it. As you know they are rolling in money and have huge amounts of excess funds that they don’t know what to do with.

Our national debt is now over $18 trillion and increasing every second. That’s eighteen million, million dollars! Billions are chump change nowadays.

Our debt is increasing by over $5,000 each and every second. You can see all of the statistics here. You will be horrified.

The colleges will love it, both the soon to be subsidized ones and the four year colleges. Why? Lot’s more money coming in. The junior colleges will funnel the two year students to the four year colleges. They’ll all love it. The people who get something free (similar to Obamacare for the low income people) will love it. The people who actually pay taxes won’t.

Here’s a better idea. Cap the amount of money guaranteed by our college loan program to a reasonable number. The out-of-control colleges beg for students (read… money, money, money), to get the guaranteed student loans from banks (with U.S. government taxpayer guarantees), will have to lower their fees when the “free and easy” money dries up.

Students already have over $1 trillion in student loan debt outstanding. That’s one of our next crises, when they don’t want to or can’t pay it back.