Sen. Kevin Cramer, R-N.D., addressed Democrats' runaway spending Tuesday, saying the Inflation Reduction Act and potential student loan forgiveness will exacerbate inflation and contribute to "reckless" economic decision-making on "Mornings with Maria."
SEN. KEVIN CRAMER: The loan forgiveness suggestion in my mind would create so many perverse incentives starting with the increase of tuition costs. This is what an oversupply of money in a low-demand market creates, it creates inflation. So, right away, if you gave every kid in America $1,000 toward the next semester of college, the price of college goes up by $1,000. What they ought to do if they want to spend $10,000 per person on forgiving student loans, they ought to buy several thousand copies of Dick Armey's memoirs or pay for a supply-side economic course, and the whole country would be much better off than simply flooding this economy with more money and then creating these perverse incentives.
If you look at statistics of freshmen who don’t finish college but they take out student debt, in order to experiment with college. If you forgive that first $10,000 for people, that enhances reckless decisions. We ought to have people making more thoughtful decisions, applying good economic principles as well as personal circumstances. Then you have more fairness and a much more economically literate electorate.
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