529s: A Summary of An Absurd Policy
Everything done to reduce higher-ed inflation igknows the basic definition
of inflation, that is, more money chasing the same goods and services. Higher-ed
inflation is, thus, self-sustaining and inevitable. If you throw money at
inflation then you get more inflation like hosing a fire with gasoline.
Relatives who think they are helping their college-bound youngsters with
tax-beneficial accounts igknow how the ballooning public debt is a de
facto indirect college loan to which igknowant relatives obligate their
youngsters. This national jumbo college loan is at higher interest rates
than direct college loan interest rates.
529s are, overall, a Ponzi scheme with the first-in receiving the maximum
benefits while later participants are stuck with higher debts, taxes and
unemployment. Or, social, economic and political collapse.
Those who can pay the full college tuition when the baby is born are the
ones who get to have college costs of two decades earlier. The pay-as-you-go
muddled-class has to pay higher college costs to make up the difference
between then and now.
529s are a Ponzi scheme that benefit the rich because, like lottery tickets
and 401ks, the muddled-class igknows basic math. The muddled class believe
they can get something-for-nothing.