Thursday, March 25, 2010

A Victory for Capitalism!

Part of the Senate HCR reconciliation package included reform of the federal student loan program. According to the NY Times,

"The measure ends billions of dollars in subsidies paid to commercial banks for making federally backed student loans in which they bore almost no risk, and expands direct federal loans to students instead."

Pro-business capitalists will no doubt applaud the end of harmful government subsidies to these private banks, which of course violate the principles of free market economics. Next up, ending subsidies to farmers.

Predictably, Republicans voted against the measure. Republicans have a major problem giving federal subsidies to low income citizens for health insurance coverage, but are OK with giving them to giant banks and millionaire farmers. Naturally.

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