One of the leading ideas among liberals right now is to forgive students debt, which is crushing a lot of college graduates. It’s one of Bernie Sanders’s favorite ideas.
There’s just one problem: it might widen the wealth gap between whites and blacks. Oops.
A new report, however, shows that calls to ease the student-loan debt load, including plans unveiled by all three Democratic presidential candidates, could have a significant effect on the racial wealth divide—and not necessarily in a good way.
The joint report by Demos and the Institute on Assets and Social Policy, two progressive think tanks, found that getting rid of all student-loan debt—writing off the amount college grads borrowed to get a bachelor’s degree or to complete graduate school—would help white households far more than African American ones and would actually increase wealth disparities between the two groups.
What’s a good progressive to do? As for me, I’m stocking up on more popcorn.