University Business - March 2009 - (Page 8)

EDITOR’S NOTE An Idea Just Crazy Enough to Work? remember, In a college lIterature class, reading Jonathan Swift’s brilliant satirical essay “a modest Proposal.” In it, Swift’s character suggests that the Irish could go far in alleviating a host of social ills—including overpopulation, abortion, food shortages, and unemployment—by raising their children to be eaten by the wealthy class. However absurd, the tongue-in-cheek unfreeze and jobs will be created.” argument was well-reasoned and made practical sense. the plan has merit. For one thing, it could lead to the Frankly, that’s what came to mind when I recently read an editorial by Jon chattman called “Forgiving Stu- creation of more teachers and social workers, who curdent loan Debt Would Stimulate economy,” published rently can’t pursue their careers because those jobs don’t pay enough to let them simulon the Huffington Post (www.hurl taneously repay loans and keep .ws/n61). the banking and auto Perhaps debt relief—or a roof over their heads. industries received bailout money, even deferment—could but the striking thing is the so why not bail out students and reconversation that has started on cent grads who are shouldered with help the economy grow. the Facebook page and on the tens of thousands of dollars in stuHuffington Post. many people dent loan debt? Just wipe it off the say they understand and want to honor their obligation books, give everyone a fresh start, and all will be fine. crazy, right? maybe not. Physicist niels bohr once to repay their loans. but, in this economy, that’s getting reportedly told a colleague, “We all agree your theory is harder and harder to do. Perhaps debt relief—or even decrazy. the question is whether it’s crazy enough to have a ferment, as some commenters suggest—could help them and the economy grow and thrive again. chance of being correct.” applebaum’s idea is not a new one. For many years chattman introduced readers to robert applebaum, a 35-year-old attorney, who is himself struggling under there have been efforts to persuade industrialized nations loan debt. applebaum formed a Facebook group called to forgive the debt of third-world countries that could “cancel Student loan Debt to Stimulate the economy” never repay the billions of dollars loaned to them. these dedicated to the cause. He believes forgiving loan debt for haven’t always succeeded, but in many cases, debt levels those making under $150,000 annually would help boost have been reduced or eliminated, giving these nations a the economy from the bottom up. at this writing, the chance at survival. Why not our own citizens? While I don’t fully support the idea, I’m not opposed Facebook group (www.hurl.ws/nwg) has nearly 67,000 to it either. could it work? Is it feasible? I don’t know. “fans.” applebaum makes a reasonable argument. “Forgiving student loan debt would have an immedi- but I think it should be put on the table with every other ate stimulating effect on the economy,” he writes. “re- idea. like Swift’s proposal, applebaum makes a good sponsible people who did nothing other than pursue a amount of practical sense. there is no doubt that these higher education would have hundreds, if not thousands are unconventional times, and I believe they call for unof extra dollars per month to spend, fueling the economy conventional solutions. now. those extra dollars being pumped into the economy would have a multiplying effect, unlike many of the provisions of the plan presently under consideration. as a result, tax revenues would go up, the credit market will Write to Tim Goral at tgoral@universitybusiness.com. I 8 | March 2009 universitybusiness.com http://www.hurl.ws/n61 http://www.hurl.ws/n61 http://www.hurl.ws/nwg http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - March 2009

University Business - March 2009
Contents
Editor's Note
Company Index
Advisory Board
College Index
Behind the News
Human Resources
Viewpoint
Money Matters
Special Report: Higher Ed and the Economy
Helping the Help Desk
Acts of Adaptation
10 Questions & Answers About the Cloud
What's New
End Note

University Business - March 2009