President Biden’s decision to cancel up to $20,000 in student debt for millions of borrowers will have broad economic consequences, including on inflation, consumer behavior and government budgets, though the degree of those effects is uncertain.

Assuming the plan survives any potential legal challenges, the move to cancel lump-sum of debt for more than 40 million borrowers and change repayment rules could provide a modest boost to longer-term inflation and lead to larger federal deficits, economists say.

This post first appeared on wsj.com

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Small Businesses Stress Test Their Banks After SVB Collapse

By Ruth Simon | Photographs by Caroline Yang for The Wall Street…

No charges filed against Kenosha officers in Jacob Blake shooting

The police officers involved in the shooting of Jacob Blake, which touched…

On Instagram, Palestinian journalists and digital creators document Gaza strikes see surge in followers

Before early October, Motaz Azaiza’s Instagram account documented life in Gaza to…

Why the debt still matters. (Sorry, Democrats.)

Do you know the cost of the Covid-19 relief bill that President…