529 Ponzi Scheme: A Summary of An Absurd, Failed, Inflationary
Everything done to reduce higher-ed inflation igknows the basic definition
of inflation, that is, more money chasing the same goods and services.
Higher-ed inflation is self-sustaining and inevitable. If you throw money
at inflation then you get more inflation like hosing a fire with gasoline.
Pell Grants not only add fuel to the fires of inflation but have debased
higher-ed into social media centers (if you have ever sat and listened to
college students on campus.)
Relatives who think they are helping their college-bound youngsters with
tax-beneficial accounts igknow, that is, they choose not to know,
how the associated ballooning public debt is a de facto indirect college
loan to which igknowant relatives obligate their youngsters. This national
jumbo college loan is at higher interest rates than direct college loan interest
529s are, overall, a Ponzi scheme with the first-in receiving the maximum
benefits while later participants are stuck with higher debts, taxes and
unemployment. Or, social, economic and political collapse.
Those who can pay the full college tuition when the baby is born are the
ones who get to have college costs of two decades earlier. The pay-as-you-go,
muddled class has to pay higher college costs to make up the difference
between then and now costs.
When has adding a intervening tax-supported bureaucracy lowered the final
cost of any goods or services? 529s increase overall taxation with both deficits
and bureaucracy. And, who pays the taxes? The welfared? The wealthfared?
Or, the well-wells as in "Well, well, that is too bad."
529s are a Ponzi scheme that benefit the rich because, like lottery tickets
and 401ks, the muddled-class igknows basic math. The muddled class believe
they can get something-for-nothing. They fall for saltwater solutions that
taste good at the start but worsens the problem in the long-run.
Based on conversations with 529 middle-class "investors" they don't care
about the inflationary impact since they have tax-deferred benefits. They
don't do the math. They resent the implication that they are igknowantly
self-defeating so they close their minds and walk away from a needed epiphany.
Like the biggest bank robbery in history (401ks), there is a simple solution
to escalating inflation of education.
Education Inflation: Dog Chasing Tail