Student Debtors Get Wage Garnishment; Wall Street Gets Bailouts
Newsweek reports the Trump administration resumed wage garnishments for student loan defaults, effectively seizing a portion of borrowers' paychecks without a court order. This move, designed to collect on billions in unpaid debt, comes after years of record corporate profits and tax cuts for the wealthy. During the 2008 financial crisis, the government found trillions to bail out banks and
corporations, with no wage garnishment in sight for those responsible. It appears that when ordinary citizens default, even on predatory loans, punitive measures are swift and surgical. But when multi-billion dollar institutions fail, often due to reckless behavior, they receive generous taxpayer-funded lifelines. One might wonder if the government's fiscal urgency depends entirely on whose pocket
they're picking.