Our View

From the Conference

The Obama Economy Is Failing America's Next Generation

Fewer Jobs, Less Income, Little Hope

Apr 27 2012

President Obama's Policies Have Failed

Young Americans and Recent College Graduates

  • According to the Associated Press, one out of every two recent graduates is unemployed or underemployed
  • Graduates lucky enough to find a job will earn 9 percentless than if they had graduated just a few years ago.
    • Recent college grads are more likely to be employed as waiters, waitresses, bartenders and food-service helpers than as engineers, physicists, chemists and mathematicians combined.
  • According to Pew, just 54.3 percent of young adults (ages 18 to 24) have a job – the lowest employment rate since the 1940s.
  • Today, 3 out of 10 young adults are living with their parents – the highest level since the 1950s.

Higher Tuition Costs, Higher Student Loan Debt

  • College students are paying more in tuition and taking on more student loan debt.
  • The cost of a four-year public education has increased by 25 percent under the Obama administration.
  • Annual student loan debt has dramatically increasedunder the Obama administration. 
    • At nearly $1 trillion, Americans now owe more on student loans than they owe on their credit cards or auto loans.

Commonsense Solution to Extending Lower Student Loan Rates

  • Interest rates on subsidized Stafford loans will soon double, but Congress will act to avoid this increase.
  • We got into this hole because in 2010, Democrats raided student aid by diverting $9 billion in college financial aid fundingto pay for an Obamacare slush fund.
    • The federal government typically borrows at 2.8 percent and lends to students at 6.8 percent; the Democrats used almost $9 billion of that "profit" to pay for Obamacare.
  • Now Democrats are split on how to pay for this budget shortfall: some want to increase taxes on energy producers, while some want to take money out of Medicare and raise taxes on small businesses.
  • Senate and House Republicans have introduced a bill that would end the controversial Obamacare slush fund and apply the savings to a stopgap measure to prevent a rate increase on new Stafford loans and deficit reduction.