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Mitt Romney Comes Out In Favor Of Giving Student Loan Money Back To Wall Street Banks

Ballooning student loan debt has become a critical issue for American families who have struggled through the recession to balance those loans with other payments and obligations as they try to make ends meet. Loan debt has increased exponentially in the last 20 years, and in 2011, total student loan debt exceeded $1 trillion for the first time. Despite public protests, Republicans have largely ignored the issue and opposed plans to fix the problem.

One of the attempts to address rising student loan costs was buried in the Affordable Care Act, the health reform law signed by President Obama two years ago. That provision cut large banks out of the federal government’s student loan program, and since it passed, Republicans have taken to calling it a “government takeover” of the student loan industry. Asked what he would do about student loans at a town hall in Ohio today, GOP presidential candidate Mitt Romney took the same approach, decrying the “government takeover” while saying he wished he could find “free money” to help people with their student loans:

ROMNEY: I wish I could tell you that there’s a place to find really cheap money or free money and pay for everyone’s education, but that’s just not going to happen. … I’d like to see more competition in the lenders. Now the government is taking over the student loan business, I think you’ll get less competition. I’d rather have more competition with private lenders as well as governmental lenders.

The “government takeover” of student loans, as Romney surely knows, isn’t really a government takeover at all. The private loan industry still exists; loan reform only takes banks out of the federal loan process. And that reform did, in fact, provide “free money” to students by taking billions from big banks that were acting as middlemen managing the federal loan program and giving it back to students. The reform plan both saved taxpayers money and pumped an extra $100 billion into the economy thanks to the increased earnings of students who could take full advantage of the Pell Grant program.

“I know there will be some who get up in a setting like this and give you a bunch of government money, free stuff,” Romney said. “That’s not who I am.” Instead, Romney appears ready to make student loans more expensive by taking money away from students and giving it back to Wall Street.

Romney Endorser Thad McCotter: ‘There Was No Choice’ But To Rescue The Auto Industry

Former Massachusetts Gov. Mitt Romney (R) narrowly won the Michigan primary last night despite his rampant opposition to the auto industry rescue that saved the state’s largest industry, likely because his main competition for the primary victory also wanted to let Detroit go bankrupt. But in the two weeks before the primary, Romney’s position was criticized by Michigan Republicans, auto industry insiders, and reporters who covered the rescue, many of whom said Romney’s plan would have killed the American automotive industry.

Rep. Thaddeus McCotter (R-MI), a former candidate for president who endorsed Romney after leaving the race, piled onto that criticism last night during MSNBC’s election coverage, telling the network’s panel that not rescuing the auto industry would have hastened the “deindustrialization of America.” McCotter also criticized Republicans who, like Romney, supported the Wall Street bailout while opposing the auto rescue:

MCCOTTER: But it’s not simply the auto industry. It’s about blue collar jobs, white collar jobs, non-unionized jobs, unionized jobs, and the deindustrialization of America that would have even hastened had those companies been allowed to seize up, go into bankruptcy and put hard-working men and women…high and dry. [...]

Now when you also look at what happened with the bridge loan, as we talked about at the time, President Bush authorized that money to come out of the already-appropriated funds that were targeted to the Wall Street people that caused the problems in the first place. So to my fellow Republicans I’ll simply remind them, if you were in Congress at the point in time or if you were President Bush, you could leave all $700 billion of taxpayers hard-earned money with the Wall Street people, or you could take some back to Main Street to keep America a balanced, vibrant economy. To me there was no choice.

Watch it:

Romney’s position on Wall Street bailout has varied, but most recently, he offered support for it in a way that resembled the support many of his fellow Republicans had for the auto rescue. “The TARP program, while not transparent and not having been used as wisely it should have been, was nevertheless necessary to keep banks from collapsing in a cascade of failures,” Romney told Reuters. “You cannot have a free economy and free market if there is not a financial system.”

Unfortunately, Romney never felt the same way about the failure of the auto industry, which, according to one estimate, would have lost 1.3 million jobs without the rescue.

Buffett Rule Sponsor Slams GOP For Telling Buffett To ‘Write A Check And Shut Up’

Billionaire Warren Buffett’s call to raise taxes on the wealthiest Americans has led to a predictable response from Republicans, who think Buffet should just “write a check” if he wants to pay more in taxes. Senate Minority Leader Mitch McConnell (R-KY) has repeatedly urged Buffett to do so, and last week, New Jersey Gov. Chris Christie (R) went farther, calling on Buffett to “write a check and shut up.”

Sen. Sheldon Whitehouse (D-RI), who introduced legislation containing a version of the Buffett Rule, slammed Republicans like Christie and McConnell today, saying that their “write a check” defense the tax code makes taxes “optional” for the wealthy, allowing them to “decide whether or not” they have to pay taxes:

WALDRON: Chris Christie, Mitch McConnell, a couple of the others have criticized Warren Buffett over the last couple weeks and said, you know, if he’s so disappointed he should just write a check.

WHITEHOUSE: You gotta love this idea that if you’re rich enough, the tax code becomes optional for you and you decide whether or not you’re going to write a check. You’re in a special category of people who doesn’t actually have to pay taxes, they just kind of get to if they feel like it. Let’s just say I haven’t heard them say that about working families.

Watch it:

Republicans like McConnell and Christie have done their part to make taxes on the wealthy as optional as possible. Despite the fact that the wealthiest Americans have seen their tax rates plummet even as their income rises, McConnell and his Republican colleagues have fought attempts to end the Bush tax cuts for the wealthy or to close loopholes that primarily benefit the rich. Christie, for his part, recently released a tax plan that would give 40 percent of its benefits to New Jersey’s richest one percent.

Buffett, meanwhile, has offered to write a check — as soon as Republicans do too. In January, he told Time Magazine he’d match any voluntary contribution made by Republicans. “I’ll even go three-to-one for McConnell,” Buffett said. So far, he has had to match only one Republican.

Anti-Tax Crusader Grover Norquist Would Not Raise Taxes In Cases Of War, Natural Disaster, Or ‘Beard Flu’

Anti-tax crusader Grover Norquist — the president of Americans for Tax Reform — has gotten most of the Republican members of Congress to sign his anti-tax pledge, which says that the signing lawmaker will not raise taxes under any circumstances. Last night, during an interview with The Daily Show’s Samantha Bee, Norquist revealed the absurdity of this position, explaining that he is not okay with the government raising taxes even in cases of war, natural disasters, “beard flu,” or to fight “the rise of the apes”:

BEE: Is there a scenario in which you would be comfortable with someone raising taxes?

NORQUIST: No.

BEE: No? War?

NORQUIST: Right now the federal government spends about four percent of GDP on national defense.

BEE: Natural disaster?

NORQUIST: Okay, your house gets knocked down and the federal government is going to raise your taxes? That makes you better off?

BEE: Beard flu?

NORQUIST: Beard flu, I’m not familiar with that.

BEE: What about the rise of the apes?

NORQUIST: If, there, look, there are legitimate [cut off]

BEE: If the chimps took over would you be comfortable raising taxes?

NORQUIST: We’d prefer that not to happen. But I think raising taxes would not solve that.

Watch it:

Norquist then explained that he thought up the ATR pledge when he was 12, prompting Bee to ask, “what other impossibly reductive gridlock inducing ideas did you have when you were 12?”

This interview laid quite bare the absurdity of the ATR position, as the organization believes that there is literally no circumstance, even a global calamity, that justifies the need for more federal revenue. And ATR’s stance has brought Norquist into conflict not only with progressives, but with Republicans as well. “I didn’t know I was signing a marriage agreement that would last forever and I think that the majority of members of Congress understand that you have to have additional revenue,” said GOP Rep. Mike Simpson (R-ID).

Climate Progress

Gas Spike Takes $5 Billion From The 99 Percent And Gives It To Big Oil

The surging price of gasoline means that the 99 percent are giving big oil companies a $5 billion windfall, a Center for American Progress analysis estimates. Oil prices, which averaged a near-record $103 per barrel in 2011, have risen steadily since the beginning of 2012. In tandem with oil prices, gasoline prices are also rising — from an average of $3.30 ending the week of January 2 to $3.59 last week.

Higher gas prices mean that money is flowing out of Americans’ wallets and pocketbooks and straight into the coffers of Big Oil companies. A Center for American Progress analysis finds that each penny rise in the average quarterly (three months) price of a gallon of gas corresponds to a $200 million increase in quarterly profits of the big five oil companies—BP, Chevron, ConocoPhillips, ExxonMobil, and Royal Dutch Shell:

Since the beginning of the year, the price for gasoline increased 29 cents per gallon. If that average increase holds true through the end of March, it will translate to $5.8 billion in additional profits for the big five.

Although those billions of dollars come from the pockets of the 99 percent, the profits stay at the top. The richest 20 percent in this country get half of all market income, with the top one percent getting 21 percent of the profits. With vanishing corporate taxes and a declining share of the gas tax, less and less of the cost of gasoline goes back into societal benefit — like creating jobs by rebuilding our roads and bridges, or investing in energy efficiency and smart growth that reduce our dependence on oil.

Instead of using their outrageous profits to invest in alternative energy sources or create jobs, the big five and other oil and gas firms spent more than $146 million lobbying Congress last year. The big five oil companies alone spent more than $18 million on federal campaign contributions. Ninety percent of these contributions went to Republican candidates and 10 percent to Democrats. Many of these politicians were the loudest defenders of oil tax breaks.

‘Ohio Manufacturers For Romney’ Received Nearly $1.6 Million In Stimulus Funds

In an effort to head off former Sen. Rick Santorum’s push on manufacturing in the key Super Tuesday state of Ohio, Mitt Romney this morning announced an “Ohio Manufacturers for Romney” coalition. A search of Recovery.gov shows that the corporations of two members of the group received nearly $1.6 million in Recovery Act funds.

Lincoln Electric of Cleveland received a sub-award of $1,125,00 on April 7, 2010 from the Ohio Department of Communications Development for an energy-related project in Euclid, Ohio. RPM International of Medina received two sub-awards in 2010, totaling $458,758 for two U.S. Army projects.

Romney, meanwhile, recently used the occasion of the Recovery Act’s third anniversary to continue attacking the law:

 

The Congressional Budget Office reported last week that up to 2 million people were employed in December because of the stimulus.  Manufacturing jobs have also grown for the past two years in a row after previously seeing no annual growth at all since 1997.

Education

What Are Romney’s Positions On Higher Education? It’s Hard To Tell

2012 GOP presidential hopeful Rick Santorum has had to face days of questions regarding his quip that President Obama is a “snob” for wanting all Americans to have some sort of higher education, forcing Santorum to lay out his thoughts on higher education policy. But where does Mitt Romney, who won both the Arizona and Michigan GOP presidential primaries last night, stand when it comes to higher education? As Inside Higher Ed reported, so far, it’s really hard to tell:

Although President Obama has promoted a push for college affordability as a plank of his 2012 re-election platform since January, education issues of all kinds — particularly those facing colleges and universities — have been largely absent from the campaign for the Republican nomination…Romney, though, emphasizes his business experience and generally steers clear of criticisms of higher education. Education is not even mentioned on his campaign website’s list of “issues,” where several regions of the world get their own position papers; a section on “human capital” includes a brief mention of job training at community colleges, but nothing on student loans, Pell Grants or other issues important to colleges and universities.

However, the one idea Romney has said that he approves of is more participation in the higher education realm by for-profit colleges:

On the campaign trail, Romney has praised Full Sail University, a for-profit college with links to some of his campaign donors, but has not addressed the issues facing the for-profit sector, or the Obama administration’s increased regulation, in detail. In the interview in Ames in January, he said he likes the idea of competition from for-profit higher education providers. “Our institution of higher learning just keep passing on higher and higher costs,” he said. “They don’t recognize that they need to compete, that they need to keep their prices down.”

As we’ve noted time and again, the for-profit college sector leaves students buried in debt and with bleak job prospects. The schools depend almost exclusively on the federal government for revenue, while fighting against regulations aimed at ensuring that the education they’re providing at least somewhat measures up to the sky-high prices that they often charge. And this, evidently, is Romney’s only concrete position when it comes to higher education.

Econ 101: February 29, 2012

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • Mitt Romney won both the Arizona and Michigan GOP primaries last night, one week before 10 states hold their primaries on Super Tuesday. [Yahoo News]
  • Will President Obama and House Majority Leader Eric Cantor (R-VA) come together to pass a bill aimed at making it easier for small businesses to access capital? [Politico]
  • Goldman Sachs and Wells Fargo are both under investigation by the Securities and Exchange Commission over mortgage related investments. [New York Times]
  • Congressional Democrats are pressuring President Obama to open the Strategic Petroleum Reserve in response to rising gas prices. [The Hill]
  • U.S. consumer confidence reached a one year high in February. [CNBC]
  • A new working paper finds that school principals can have a significant impact on student achievement. [Education Week]
  • The U.S. is going to need to spend $1 trillion on water infrastructure in the next 25 years, according to an industry study. [Huffington Post]

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