The US could fund every college education by raising $200B in tax revenue, the US advanced $800B to investment banks since Jan 2023.

The US has advanced $800B to investment banks since January so far in 2023. This said to be the most since the 2008 financial crisis. <br><br>If the USA paid for every college education, home loans, and cars at 1% interest, which would still make all of these financial institutions money, could you imagine how vastly different this world would be? For instance the median advanced college degree debt is around 31k. There are around 44 million people paying on college student loans, so that is around 1.4 trillion dollars, which is 3 years worth of the US home loan market and 1/3rd of the car loan market. If the US just forgave everybody's student loans that would be more than a 1.4 trillion dollar stimulus to the economy right now and would likely double the home buying market within a year, and the car buying market within 2 years. If they continued to make 1% interest on all student loans, this is an additional $14B/year or 4X the $3.5B/year it costs to run NASA, or 1/2 of the $29B/year it costs to run the US Navy.<br><br>Likewise 4.5% 30 year home loans are way more profitable than 1% 30 year home loans. As of January 2023 around 9 million homes are for sale. If we assume an average home price of $270k, that is home inventory worth 2.4 trillion dollars. If they forgave every home loan, that would be a stimulus of $2.4 trillion. If they loaned at 1% the government would make an additional $24B/year. If they continued to make 4.5% interest on all home loans, this is $108B/year they could spend on... the military or NASA or road infrastructure. $164B/year is NASA, the Navy, and the Marines combined annual budget. That's the USAF and NASA combined.<br><br>The government could essentially loan everybody money for cars at 1% interest, and pay for NASA, the Navy, Marines, US Army, and the Air Force with just the profits. Of course at 4.5%, it would probably pay for the entire US government. My point is the government has the ability to massively stimulate the economy if they just forgave everyone's loans, then loaned at 1% going forward. This is what this article is saying, but just from the perspective of college loans.<br><br>I know the government is not a bank, but the US government can sell treasury bonds at 4% interest and loan at 1% and that's 3% of profit per year, guaranteed by the US government. I would be surprised at how many investors would want that, guaranteed advanced by the US government. This is pretty much what the US government has done since Jan 2023 to the tune of $800B. The US government just uses money they print out of thin air to buy these treasury bonds.<br><br>If the US government loaned everybody money for homes and cars at 1% interest, they would likely not make a profit their first year, as they would lose a lot in the first year when everybody refinanced their loans, but everybody would have an extra 1-3% of their income to spend on other things and the economy would eventually grow.