Paul Krugman Asked About #OWS Debt Refusal On Radio Show New York Times columnist and Nobel-winner economist Paul Krugman was a guest on The Brian Lehrer Show on Monday, and he was asked about the OWS Debt Refusal Pledge from a caller. The exchange between the caller and Krugman is really worth noting, particularly in light of the recent brouhaha over the poorly articulated terms of “loan forgiveness” versus a refusal to pay student loan debt. Here’s what was asked, and how Krugman responded: Caller: “I am an academic. I am a scientist at a major public university here in the area . . . Generally, what I would love to hear is your opinion on the latest out of Occupy Wall Street, which is their occupying student debt movement. Just to give the listeners a little bit of background, what Occupy Wall Street organizers are trying to do is to get a million people to pledge that they will default on their student loans. Now I have my own opinions about the Occupy Wall Street Movement. I . . . I . . . generally am a fan. However, I think this is a terrible, terrible idea both in what’s wrong with the current education system, but moreover potentially very dangerous situation for the economy, and given I am a scientist and not an economist, I would love to hear a Nobel Laureate economist speak to this point a little bit.” Lehrer then asked what Krugman what he thought about that branch of the Occupy movement — that is, the group that is encouraging a million students to default on their student loans. “To be honest, I haven’t done enough homework to figure out what I think,” Krugman replied. “I think the idea that it is a threat to the economy is wrong. It’s just not that big of deal in terms of the economy one way or another, and there is a lot that is wrong with how we handle student debt. Basically, we’ve been using public funds, but running them through the private sector for no good reason, except to provide some extra profits to the financial industry.” Hey, those who are claiming this call for default is “immoral” and God-knows-what-else, did you hear that? Did you just hear that?!? Krugman said it wouldn’t be that big of a deal! Let’s see what he has to say when he has done his homework. But he was pretty non-nonchalant in his response, and he didn’t seem outraged like some folks are at this juncture. Here it is — the caller comes in around the 13:20 mark. Cryn Johannsen is the founder and executive director of All Education Matters (AEM). She is currently writing a book about the student lending crisis and how this mess can be fixed. Read her full HyperVocal archive here, and make sure to follow her on The Twitter @cjohanns. Cryn Johannsen Cryn Johannsen is the author of Higher Ed, Greater Debt: The Student Loan Debt Crisis (Seven Stories Press, 2014. She is also the Founder and Executive Director of All Education Matters(AEM), a 501(c)(4); She is a freelance journalist for The Huffington Post, The Loop 21, and Hypervocal. Cryn has a strong interest in finance and education and her work has appeared in USA Today, Truthout.org and The New England Journal of Higher Education.
Anonymous 29.11.11 @ 10:32 am What I’d really like to hear is Paul Krugman’s views on whether it would be feasible to forgive current student loan debt and to reform student lending to stimulate the economy and to position our society for the 21st century. Such an exciting concept; a far better idea than mass student loan default.
Dorothy 29.11.11 @ 12:05 pm ” It’s just not that big of deal in terms of the economy one way or another, and there is a lot that is wrong with how we handle student debt” – he did NOT address the effects on borrowers at all
C Cryn Johannsen 29.11.11 @ 7:10 pm You’re right, Dorothy. And as an activist, and as I have said countless times, those are ALWAYS the people who come first – at least for me it is.
Guest 01.12.11 @ 6:51 am Why Should Taxpayers Pay Off Your Loans That Each Of You Agreed To? Why Do You Think You Deserve Something Not All Americans Get? Johannsen is not honest, she spins information to hype her view and now seeks to co-opt the occupy movement. It is self centered people like her that will begin the fragmenting of occupy!
Guest 01.12.11 @ 7:04 am No group of Americans deserve special treatment above any other group! Do the rest of Americans get a check to equal the students forgiven debt, what a ridiculous idea that will fail! I know you can’t handle criticism Cryn from seeing you on twitter so freak out and flame.
Info 05.12.11 @ 1:53 pm Unfortunately, Americans who make statements like this completely misunderstand the student debt system… they misunderstand that the current difference between our government and the banks is negligible… Thanks to Cryn this conversation is changing… But BTW I haven’t heard anyone ask the government to pay – unless you’re referring to the loan forgiveness petition which has nothing to do with OWS… no idea what you mean by “co-opt” – the Occupy Student Debt Campaign came out of the OWS Empowerment & Education working group…