Want to understand why nothing ever happens in Congress? Look no further than the idea that Congress can fund the wall with Chapo’s money or that student loans can magically be erased. It is not the ideas that are the problem. It is that politicos who make promises they know they can’t keep. The perfect example is the plan to cancel $1.6 trillion in student debt as well as the plan to use Chapo’s money to build the Donald Trump wall.
Let’s first look at Bernie Sanders’ plan to cancel $1.6 trillion in student debt. Sanders’ plan is supported by Alexandria Ocasio Cortez who argued that it was easier for her to be elected to Congress than to pay off her student loans yesterday.
Erasing student loans sounds like a great idea. Countries are always looking to ensure they have an educated workforce to fund the country’s economic growth. Some countries offer free education and others subsidize the educational process.
America is mired in expensive educational schemes.
As great as the idea is for funding educational opportunities for Americans it misses the single most important thing about America’s economy. America’s economic engine is funded by debt. That is the reason why Donald Trump is arguing about the Fed raising interest rates.
Bernie Sanders argues that if Americans can bailout the banks that it should be able to bail out Americans drowning in student debt. This is precisely why it will never work. The banks were bailed out by American taxpayers because erasing massive debt would have crippled the American economy.
That is the reality that Bernie Sanders likely knows and Ocasio Cortez either knows it or does not understand it.
Erasing debt would be catastrophic for the American economy.
Erasing student debt is not going to happen for that simple reason. At best, student debt would be transferred to the American taxpayers, but it will never be erased.
It is not just the Democrat’s side of the isle.
Consider the other idiotic idea, El Chapo Act.
There is a bill pending before Congress called the “Ensuring Lawful Collection of Hidden Assets to Provide Order Act” [HR2186] that is colloquially known as El Chapo Act. The act, if adopted by Congress, would allocate forfeited drug lord monies to border security.
Ted Cruz first introduced the legislation in 2017. It failed to get any floor votes. Cruz again reintroduced it last January. Representative Vern Buchanan penned a call to arms on Fox News yesterday demanding that the bill be adopted so that the money could be used for funding the Trump wall.
Buchanan argues that “Guzman’s drug empire amassed an estimated $14 billion from narcotics sales” and now that El Chapo has been convicted his drug money can be confiscated.
But here is the inconvenient truth that Vern Buchanan ignores. It is one thing to have a court order, ordering the forfeiture of assets and another thing to actually get the money, or the assets.
Drug dealers do not file taxes. Drug dealers do not open bank accounts in their names. Drug dealers do not buy property in their names.
Before El Chapo was convicted, there was drama about whether he needed a public defender. The issue was that his lawyers had to get special permission from the government to protect any money they received for their service from being taken away from them. The lawyers that represented El Chapo have refused to say whether they were paid or not.
There is no indication that any money that El Chapo may have can be taken by the government.
It gets worse. Chapo’s current wife trademarked the name “El Chapo Guzman” and “Joaquin Guzman Loera” on March 7, 2019 with the United States trademark office. It will be published for opposition on July 30.
Obviously El Chapo’s wife is looking to make money from Chapo’s notoriety. So much for the idea that convicted criminals cannot benefit from their notoriety. Testimony in the courtroom demonstrated that El Chapo’s current wife was an active participant in Chapo’s criminal enterprise. She is a United States citizen. She has no known legal income although she lives an affluent lifestyle.
Now she is trying to profit from Chapo’s drug notoriety.
In other words, Chapo’s wife, his lawyers and other drug dealers are laughing all the way to the bank.
Yet, Vern Buchanan actually believes that the United States Treasury is about to get billions of Chapo’s money that will be used to fund the wall.
Like the erase student debt battle cry, using Chapo’s money to fund the wall is all empty talk.
But it sounds nice and the sad thing is that some voters actually believe it is possible.