Elizabeth Warren’s Glaring Hypocrisy

Dear Rich Lifer,

If you want to get me really worked up, just mention hypocrisy in the White House.

I don’t care if you’re talking about Bush (whichever), Clinton (whichever), Obama, Trump, or any other modern-day resident (or wannabe resident) of 1600 Pennsylvania Ave.

As far as I’m concerned, they have all had major moments of “do as I say, not as I do” behavior.

But Elizabeth Warren might be the worst among folks in the running for 2020.

After all, it’s extremely ironic when a person is demonstrating the very same tactics they criticize others for.

Don’t Just Take My Word for It

Take Warren’s latest promise of what she’ll do during her first day in office. This is taken directly from her website

I have already proposed bold steps to broadly cancel student loan debt, provide universal tuition free public two- and four-year college and technical school, ban for-profit colleges from receiving federal aid, and help end racial disparities in college enrollment and resources. 

“But the Department of Education already has broad legal authority to cancel student debt, and we can’t afford to wait for Congress to act. So I will start to use existing laws on day one of my presidency to implement my student loan debt cancellation plan that offers relief to 42 million Americans – in addition to using all available tools to address racial disparities in higher education, crack down on for-profit institutions, and eliminate predatory lending …

“Here’s how it will work: 

“I’ll direct the Secretary of Education to use their authority to begin to compromise and modify federal student loans consistent with my plan to cancel up to $50,000 in debt for 95% of student loan borrowers (about 42 million people).

 

“I’ll also direct the Secretary of Education to use every existing authority available to rein in the for-profit college industry, crack down on predatory student lending, and combat the racial disparities in our higher education system.” 

 

Warren goes on to explain why she believes the Department of Education has the authority to cancel or modify these debts.

Crucially, she also says:

“I won’t stop fighting for Congress to enact the rest of my college affordability plan — including the wealth tax on the richest people in the country that I have proposed to offset the cost. I won’t stop pushing until Congress has enacted universal tuition free public college, a $100 billion increase in Pell Grants to cover living expenses for low and middle-income students and an expansion of who is eligible for a Pell Grant, a minimum of $50 billion in increased funding for Historically Black Colleges and Universities and Minority Serving Institutions, and a ban on federal funding for for-profit colleges. But we’re facing a student debt crisis, and every day counts for families struggling with this burden and for our economy as a whole. 

“The steps I have outlined here will require clearing a lot of red tape to make sure borrowers get the relief to which they are entitled. I have consulted with leading experts on student debt cancellation who are confident that this plan is permissible under current law. But let’s be clear: our government has cleared far bigger hurdles to meet the needs of big businesses when they came looking for bailouts, tax giveaways, and other concessions. Instead of catering to the needs of the powerful and wealthy, a Warren administration will make the system work for the millions of Americans who worked hard to get an education, only to be trapped in debt.” 

Now, I have explained some of the underlying hypocrisy in Warren’s student loan plan before.

Suffice it to say this plan is coming from someone who personally made several hundred thousand dollars a year as a college professor and whose husband continues to make the same.

All told, the Warrens have made millions from the higher education system.

But Warren doesn’t see the student loan crisis coming from the top down in any way, shape, or form.

Warren Sees the Problem… Differently

She doesn’t suggest outlandish salaries… grandiose campus expansion plans… overly-ambitious sports programs… skyrocketing tuition… unrealistic promises about the value of a college degree… or, dare I say, already-cheap federal funding of all the aforementioned… have anything to do with the current student loan crisis.

Nor can borrowers be at fault, either.

No. It’s all a big conspiracy enacted by predatory lenders.

Thus, her solution isn’t paying Harvard professors half as much… capping tuitions… or creating new restrictions and financial controls on colleges at all. Well, unless they’re “for profit.”  

Warren’s solution is having taxpayers cover all the bad borrowing that has already taken place.

Even if you didn’t go to college.

Even if you didn’t take out a student loan.

Heck, even if you took out a loan at the same time as other people but paid yours back quickly!

Essentially, Warren says we should all be on the hook to make everyone else whole again… even if they’re in a household currently making as much as $250,000 a year.

That’s bad enough.

The bigger problem is that Warren is willing to act like a dictator on this issue by circumventing Congress altogether – i.e. using the same kind of tactics Donald Trump has gotten hammered for.

Here’s what Warren said about Trump back in November of 2018

We must face reality head-on: President Trump’s actions and instincts align with those of authoritarian regimes around the globe. He embraces dictators of all stripes … Americans must demonstrate to this president and to the world that we are not sliding toward autocracy — not without a fight.”

Yet, as a sitting Senator right now, Warren has no problem searching the law for a way to push her own agenda right around Congress the very first day she gets into the White House?

She has no problem taking taxpayer money and just handing it out $50,000 at a time to people with outstanding student loan debt?

She’s not worried about the message that sends to responsible borrowers…

That it could be perceived as simply buying votes…

Or that, by her own admission, it would still require a Congressional consensus to actually get paid for.

The Same Rules “Don’t Apply” to Warren

Does she not recognize that this is just like Trump promising to build a wall without already having the funding lined up?

Of course not. Because this is HER agenda.

In Warren’s mind, Trump’s actions have rewarded “his” people – U.S. businesses and many of the wealthy Americans therein.

She doesn’t see the absolutely obvious parallel…

That her executive action will reward plenty of HER own people – including America’s academic institutions and the highly-compensated people at the top of those institutions.

Maybe corporate executives make billions and college presidents only make millions.

But, philosophically, is there any difference here?

If Warren was truly a champion of regular people, including folks who didn’t go to college … folks who paid off their loans… responsible borrowers who are still reducing their balances every month… and everyone else in between… she would use a more traditional process to ensure her view was accepted by the hard-working taxpayers that will be paying for it.

I suspect she knows that just wouldn’t fly.

To a richer life,

Nilus Mattive

Nilus Mattive

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Nilus Mattive

Nilus is the editor for the daily e-letter The Rich Life Roadmap and a Paradigm Press analyst.

Nilus began his professional career at Jono Steinberg’s Individual Investor Group, where he published his original research through a regular investment column. Later, he worked for a private equity business and spent five years editing Standard and Poor’s...

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