On Debt and Economic Recovery

http://ivn.us/2012/08/12/student-loan-forgiveness-and-economic-stimulation/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ivn+%28IVN+-+Independent+Voter+Network%29

It would be good economic sense to help re-stimulate the economy.  And I'm not just speaking as a graduated student who has debts of his own to pay off. 

It's a question about how much money is available for people to use to consume within the economy.  If they're hampered with rents, debts, healthcare costs, taxes on the lower and middle end, etc, they have less money to spend in the economy and produce growth that benefits everyone, including the well to do, which gets protected by ineffective policies such as austerity.

You can tax people when they are making a lot of money, because they'll have a lot left over to spend (see the 80% tax on $5 million example, leaving $1 million for the whole year).  Money at this point only gets used in investments which make more money that is, ultimately, not used in the larger economy, and is simply squirreled away in tax havens and bank accounts around the world.

Again, what good is money past a certain point for an individual or a family?  How much really is needed to live the high life?  And, remember, what non-monetary benefits come from having a sound social and environmental worlds for the individual that money can't actually provide?

I've presented this argumentation to members of the Tea Party itself.  And all I got in return was cat-calls, which suggests that they have no reasoned argumentation against it.

What could be wrong with this?

Please.

Think about it.

And answer.

Think about it.