Are student loans destroying the economy?


Recoveries are powered by two things. Houses and cars. And young people aren’t buying either, The Atlantic reports. That’s the conclusion from a new study out of the New York Fed, via Brad Plumer, that can be easily read as blaming student debt for holding back the recovery by squashing home and auto sales. This study seems to feed into a familiarly scary story about student debt as a dangerous bubble that is piling unprecedented levels of debt on young people, and is wrecking the economy by preventing them from starting their lives. There’s two problems with that story…

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