529s: A Summary of An Absurd Policy

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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