The GOP Debate tonight on CNBC was titled “Your Money, Your Vote.” CNBC is extremely focused on the economy, as were many of the questions from tonight’s debate. The economy affects everyone, especially collegiettes. Here are the reasons why you should care about these issues.
1. Student Loans
According to US News, student loan debt rose 56 percent from 2004 to 2014. In another report done by The Wall Street Journal, the average college grad from 2015 would have to pay back around $35,000 dollars in loans. For most of us, being in college means being broke and living off of ramen noodles. Boxed wine is often a treat, and eating out is reserved for special occasions. High student loan rates are dangerous to our futures and will cause stress for decades.
2. Unemployment
The 2014 unemployment rate for college grads was 7.2 percent, according to US News. The national unemployment rate is 5.1 percent. This means that college students and recent graduates have a higher chance of not being able to find a job. Paying off those student loans suddenly becomes a lot scarier, huh?
3. National Debt
At the time that this article was written, the United States national debt was up to almost $18.5 trillion dollars. According to Forbes, the debt ceiling—the maximum amount of debt that congress will let the U.S. have—has been raised 74 times since March 1962. Hearing the amount of debt that our country is in is difficult to wrap one's head around. This debt, divided amongst the American people, would leave each citizen owing over $57,000 dollars. That's even more than those student loans you were worrying about earlier.
4. High Taxes
One way to pay off some of that $18 trillion dollar debt is to raise taxes in the U.S. According to the tax foundation, the average U.S. worker pays 31.3 percent of their income to the government every year—and we're still trillions of dollars in debt! About half of that debt is owed to income taxes, while the rest goes to payroll taxes. This adds up to an average of $16,000 out of your paychecks yearly. Add this to the debt from student loans, and you end up making a lot less than the yearly salary of whatever job you work.
This information on the economy isn't meant to scare anyone, but to show how the economy affects us all. As collegiettes, we should watch the presidential debate carefully and decide which candidate(s), if any, will help our wallets in the long-run.