Blog Post on Student Loans and ABCT

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  • #17893
    maester_miller
    Participant

    Dr. Herbener (and others),

    This is a little off-topic, but I wrote a blog post today regarding the recent outrage over the planned interest rate increase for federally-subsidized Stafford loans, invoking the ABCT as a comparison/explanation for the problems that students face when the Feds meddle in the markets. I was hoping you could read it over if you had a few minutes and let me know if I’m on the right track here, or if I am missing something. Thanks!

    http://dudewheresmyfreedom.com/2013/07/03/the-abct-explains-the-student-loan-bubble/

    #17894
    jmherbener
    Participant

    The post looks fine to me.

    There are two drawbacks, however, in making an analogy to the ABCT. First, analogies are more persuasive if they move from the simpler, more familiar case to the more difficult, less familiar case. They help the reader apply what he can more easily see to what he can only dimly see. Your analogy moves from the more difficult to the easier. Second, the ABCT and student loan cases are dis-analogous in at least one respect. The business cycle is self reversing while government subsidies are not.

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