Senator Bernie Sanders wants to eliminate all student loan debt and provide free college to all students, making his plan the most ambitious in regards to college education among Democrat presidential hopefuls. This is an admirable measure, to be sure, though it’s fiscally irresponsible. While most of the democrats’ plans have ideas similar to Sen. Sanders, they are all unified by a common theme. In true liberal fashion, they all attack the branch of the problem, as opposed to the root of the problem. And while I believe everyone should have access to affordable higher education, I don’t believe that subsidizing every student’s tuition at these rackets of academia is the way to go.
Root and Branch Policy
If there’s one thing that liberals excel at, it’s proposing and advocating for policies that don’t solve a particular problem, but rather deal with the effects of that problem. I liken it to a politician throwing fuel on a burning house; with that fuel being taxpayer money. In contrast, conservatives tend to propose policies that attack the root of the problem, thereby, mitigating or preventing the problem from rearing its head in the future. Outside of the student loan and tuition problem, liberals would rather take guns away from a law-abiding citizenry (branch policy), instead of dealing with the factors that contribute to gun violence (root policy). And liberals would rather provide subsidized healthcare for everyone (branch policy), as opposed to fixing America’s corrupt healthcare system (root policy).
Both political sides, however, rarely propose a combination of root and branch policies. These policies not only solve the problem, but also gives aid to those currently afflicted by the broken system. To favor a branch policy is to play an endless game of Whack-A-Mole. Nobody really wins, and it doesn’t get us anywhere.
A Real Solution
In the case of rising tuition costs, we should first develop a plan to retard the rise in tuition costs by placing regulations on public colleges and universities (root policy). A couple of examples of this could be curbing the expansion of university administrators and providing oversight by mandating the publication of an annual justification report on rising tuition costs that would determine education subsidies. Second, we need to develop a plan that provides conditional and subsidized relief to those suffering from the failures of our system (branch policy). For this, we can apply more realistic policy plans from the likes of Sen. Elizabeth Warren by placing relief caps on household incomes over $250,000.
Additionally, the government should remove themselves from providing federal student aid (FAFSA). As long as FAFSA continues to exist, it’ll serve as a guarantee to the universities that they will be paid with taxpayer money regardless of tuition hikes. Indeed, it could be argued that FAFSA had served as the kindle that lit the conflagration of our tuition problem.
A Tax for Wall Street
While I believe Sen. Sanders’ policy plans do nothing to combat escalating tuition costs, his proposed mechanism for funding his plan, however, is absolutely worth considering—for other government programs.
What Sen. Sanders has dubbed as a “Wall Street Speculation tax,” is commonly known as a “financial transactions tax” (FTT) or “financial activities tax” (FAT). These taxes aren’t new, and Great Britain has levied a form of this tax of one-half of 1% on all stock trades since 1694. The United States also had a similar tax from 1914 to 1966, until the growing lobbying power of the financial industry saw to its demise; and the Federal Exchange Commission (FEC) still imposes a fee on selling stock, called the “Section 31 Fee,” used to finance its regulator power of the markets.
The effectiveness of the FTT in generating revenue is significant. The Tax Policy Center in Washington estimates that such a tax of one-tenth of 1% on every transaction could amount to $66 billion a year. That’s a lot of cheddar, y’all. And with that, we could fund government programs that truly merit taxpayer funds, such as K-12 education or infrastructure.
In the end, the problem of crushing student loans and rising tuition costs is of grave concern that demands an immediate solution. The ‘Millennial generation’ is absorbing the brunt of this problem, and as the largest demographic group, they will have the greatest impact on commerce in this country in the years to come. Their financial future is the financial future of America. Liberal policy alone will not solve this problem, but if they work with conservatives on developing a comprehensive root and branch policy, then all students, present and future, will be given compassion, justice, and financial freedom.
Tax data in this article was referenced from ‘A Fine Mess: A Global Quest for a Simpler, Fairer, and More Efficient Tax System’ by T.R. Reid.

