529 Ponzi Scheme: A Summary of An Absurd, Failed, Inflationary Policy

  1. Everything done to reduce higher-ed inflation igknows the basic definition of inflation, that is, more money chasing the same goods and services.
  2. 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.
  3. 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.)
  4. 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 rates.
  5. 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.
  6. 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.
  7. 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."
  8. When has encouraging investing in inflation reduced inflation? The wealthy, paying tuition twenty years early, are investing in inflation with a nice rate of return, the difference between higher ed and everyday inflation rates.
  9. 529s encourage academic nepotism, that is, what institution is going to give the money back if Johnny has low scores? 529s are affirmative action for the low achieving rich kids.
  10. 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.
  11. 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.
  12. Like the biggest bank robbery in history (401ks), there is a simple solution to escalating inflation of education.

Handout ... Necro Education ... 2016 Candidate ... Youtube

Education Inflation: Dog Chasing Tail