When public health officials and politicians locked down the economy in March 2020, then-candidate Joe Biden retreated to his basement. He was able to fundraise and campaign for president from the comfort of his Delaware beach house. Most Americans weren’t so lucky.
As the government forced businesses to close, tens of millions of Americans were heading to the unemployment line and millions of small businesses were heading for bankruptcy. This was an unacceptable outcome, which is why I worked with Democrats and Republicans to create the Paycheck Protection Program.
My plan was as simple as it was innovative: create a federal grant for small businesses to keep their employees on the payroll. This wage subsidy, deliberately structured as a forgivable loan, had one key condition: that 80% of the funds go to payroll. When some lobbyists (and even Democratic lawmakers) in Washington demanded a blank check from small businesses, I refused. This temporary program was intended to keep employees on the payroll during what we were told would be a two-week lockdown to “slow the spread”.
BIDEN ANNOUNCES STUDENT LOAN DOCUMENT AS NATIONAL DEBT SOARS
Two weeks turned into two months and, in some places, nearly two years. But through it all, the Paycheck Protection Program kept Main Street from sinking. It was a stunning success.
Don’t take my word for it. Take the word of economists, who predicted in May 2020 the loss of 8 million jobs and the highest unemployment rate since the Great Depression. Thanks to the initial $150 million payroll subsidies, we not only avoided this catastrophic outcome, but we actually gained jobs, including 2.5 million.
BIDEN CANCEL $10,000 OF STUDENT LOAN DEBT PER BORROWER – WHAT TO KNOW
In total, the Paycheck Protection Program saved 55 million jobs, with an average company size of just 20 employees, including 6.1 million jobs in my home state of Florida. That’s why former director of the Congressional Budget Office, Doug Holtz-Eakin, called it “the most effective fiscal policy ever undertaken by the government of the United States.”
It was a temporary government program – a real rarity in American history – designed to respond to a particular moment. And it paid off. Main Street would have been decimated without it, as would the livelihoods of tens of millions of working Americans in small businesses.
BIDEN’S STUDENT LOAN PLAN IS NOT A “FORGIVENESS”. STEAL FROM THE POOR TO PAY THE RICH
President Biden’s student debt cancellation plan couldn’t be more different, despite his lame attempts to draw similarities between the two.
Let’s start with the obvious: Federal student loans were just that, loans. The idea was that students would take out loans to pay for an education that would lead to a job that would pay them back (and the massive accrued interest).
There are also other practical differences. The president is now asking those same small business owners and employees, most of whom never went to college, to shoulder the burden of college debt for others.
Again, don’t take my word for it. In the words of President Barack Obama’s chief economic adviser and Harvard economist, Jason Furman: “Student loan relief doesn’t come free. [will] be paid for by the 87% of Americans who don’t profit but lose from inflation.”
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That’s why it won’t do anything for the people the Democrats claimed to be protecting: working families with little or no student debt. Unlike my wage subsidies, canceling student debt will not create jobs, save small businesses, or reopen the American economy.
There are many valid criticisms of the US higher education cartel, which is why I introduced legislation to remove predatory interest rates attached to federal loans. But so far the Democrats refuse to support my LOAN Act. This is because they are beholden to the higher education industrial complex.
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Do they honestly think that this radical and illegal loan guarantee will cause Harvard, Yale or Princeton to contain their spiraling costs? Of course not, and Democrats have no interest in that happening.
President Biden and his media puppets greedily lie to the American people because the truth is not popular.
This is a document that primarily benefits the highly educated and already well off, laptop liberals, and misfit Marxist activists who have never run a business, paid payroll, or cared about anything else. only pronouns to use.
This shows where the Democrats’ priorities really lie — and it’s not with American workers.
Republican Marco Rubio represents Florida in the US Senate.