alt Hacker NewsDoes the same reasoning apply to student loans? Is the lender engaging in slavery by claiming entitlement to a portion of the student’s future labor?
Does the same reasoning apply to student loans? Is the lender engaging in slavery by claiming entitlement to a portion of the student’s future labor?
No, student loans are not slavery for two reasons. First, the borrower agreed and signed a contract. Second, the debt owner is the one calling it due.
This is substantially different than expecting control on how debt free doctors or engineers spend their time or what jobs they work.
The crux of this is that externalty price analysis is only useful when bounded by real harms and property rights. Otherwise, anyone can call anything they dont like an externality: If my employee quits for a better job- Externality! If a woman wants to go home to their family instead of having sex with me - Externality!