San José, CA – On July 1, interest rates for federally subsidized student loans to pay for college are set to double, rising from 3.4% to 6.8%. This will affect almost 10 million students who will be taking out new loans this coming year. Over the life of their loans, this rise in interest rates could add about $4000 to the cost of college for a student entering college in the fall of 2013.
On June 21, the Chairman of the U.S. Federal Reserve Bank, Ben Bernanke, gave a very downbeat report on the U.S. economy following a two day meeting of the Fed. Bernanke, who is also a professor of economics, admitted that he didn’t have a good explanation for why economic growth in the United States was so weak and the unemployment rate stuck at about 9%. But Marxist political economy does have an explanation: that economic stagnation is a natural outcome of a capitalist economy.