Now that health care reform has finally been enacted, a host of critical economic issues are taking center stage, including financial reform, unemployment and deeply rooted economic inequality. But it's important to note that with its health care vote, the U.S. House of Representatives actually approved a very important, and often overlooked financial reform: Student lending.
Pedro de la Torre III of Campus Progress explains the current student loan nightmare in an interview with The American Prospect's Rebecca Delaney. For years, the U.S. government has paid massive subsidies to some of the worst-run companies in the country.
Thanks a lot, Sallie Mae
As de la Torre notes, instead of directly making loans to students, the government spent years funneling money to firms like Sallie Mae to actually make the loans. When things went sour, taxpayers covered the lender's losses from student loans that ultimately went bad.
Taxpayers were also footing the bill for the loans and taking on the risk, while private companies and their executives enjoyed the benefits. The executives made quite a haul. In 2008 alone, Sallie Mae CEO Albert Lord took home an astonishing $46 million. Even among CEOs, that's a princely sum-more than double what Halliburton CEO David Lesar made the same year. All of that money could have financed a lot of college educations.
Fortunately, the student loan landscape is almost certain to change as a result of the health care vote. The House bill included a provision to end student loan subsidies and boost funding for direct grants from the government to students.
Since the student loan reform and health care were both eligible for reconciliation in the Senate (meaning only 51 votes are needed for passage instead of the 60 to clear a filibuster), House Democrats decided to move on both at the same time. It's a significant reform, and one that will soon become law with President Barack Obama's signature.
What would an overhaul of the consumer finance industry entail?
The student loan system is just one aspect of the consumer finance industry that needs a major overhaul. On mortgages, credit cards, overdrafts, and payday loans, the banking status quo is one of outright predation. As Heather McGhee of Demos explains to The Nation's Christopher Hayes, there's a reason why federal agencies do a lousy job regulating consumer banking abuses.
Right now there is no agency responsible for consumer protection alone. Every regulator also focuses on making sure banks don't fail, which generally means that regulators support anything that increases short-term profits. Egregiously predatory practices generally lead to big short-term gains in banking.
A new consumer financial protection bureau
Last week, Senate Banking Committee Chairman Chris Dodd (D-CT) introduced a bill that would create a new bureau of consumer financial protection, with no constraints from bank profitability. It's a step in the right direction, but as McGhee notes, there are plenty of problems with Dodd's proposal. Most problematically, the bill gives existing agencies a veto power over any new consumer protection rules. That's a terrible loophole. Existing regulators have actively opposed consumer protections in the past, and there is every reason to expect that practice to continue.
Rapid tax refunds scam the poor
It's late March, which means tax season is getting into full swing. All over the country, mascots from Liberty Tax are spilling into the streets wearing goofy costumes, trying to win your business. But millions of Americans don't realize that Liberty, along with H&R Block, Jackson-Hewitt and hundreds of smaller businesses are engaged in a monstrous scam disguised as a complicated accounting service.
As Alexander Zaitchik emphasizes for AlterNet, these tax preparers have used deceptive advertising and slick salesmanship to con people into taking out "refund anticipation loans," also known as "rapid refunds" and a handful of other pleasant euphemisms. It's a simple gimmick: H&R Block does your taxes, and then presents you with your tax refund, right away, no waiting. But the check you receive is not actually your tax refund-it's your tax refund minus a truckload of fees that you didn't realize were being deducted. This is the tax-time equivalent of payday lending.
When the government sends in your actual, larger tax refund one-to-two weeks later, you won't see it-it goes straight to H&R Block's bank partner. Those banks are making big money taking from your tax returns. Here's Zaitchik:
"In 2008, more than eight million Americans spent nearly a billion dollars paying interest and fees on RALs-often based on misleading or incomplete information-swelling the profits of tax preparers and their partner banks."
The one break low-income people get under the U.S. tax code is the Earned Income Tax Credit (EITC), the nation's largest anti-poverty program. Only about 16% of taxpayers qualify for the EITC, but as Zaitchik notes, nearly two-thirds of the people who take out refund anticipation loans receive the credit. Tax preparers are making a concerted effort to prey on the poor, making the EITC program more expensive and less efficient for all taxpayers-not just those who go to H&R Block or Liberty Tax.
More action needed on jobs
Beyond finance, the U.S. economy has a serious jobs problem. Last week, Congress approved an $18 billion jobs package that is simply far too small to make a serious dent in the nearly double-digit unemployment rate. As Art Levine explains for Working In These Times, the package will create 250,000 jobs at best. That number shouldn't be acceptable to anyone watching the U.S. economy, which has shed about 7 million jobs since the recession began.
There are much stronger options available than the $18 million bill the Senate approved. Rep. George Miller (D-CA) has introduced a bill in the House that would quickly save or create one million jobs, and the House has already passed a separate $154 billion jobs package that would prevent 900,000 lay-offs. If the Senate moved on either one, the result would be a major economic boost.
The link between poor economies and poor health
All of these problems-unemployment, student loan scamming, refund anticipation loan sharking and other forms of financial predation-reinforce economic inequality in the United States, which is at levels unseen since before the Great Depression. That inequality is ultimately actively damaging to public health, as epidemiologist Richard Wilkinson explains in an interview with Brooke Jarvis for Yes! Magazine. Rampant economic inequality in the United States is literally making us sick.
"We looked at life expectancy, mental illness, teen birthrates, violence, the percent of populations in prison, and drug use," Wilkinson says. "They were all not just a little bit worse, but much worse, in more unequal countries."
With health care finally finished, Congress and the administration have an opportunity to make serious headway on the economy. They've got plenty of work to do.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
As grassroots support for the pro-immigration reform March for America grows, anti-immigration groups and their allies are trying to use racial tension to stop the momentum. Opposition groups like NumbersUSA and the Americans for Legal Immigration PAC announced plans this week to partner with Tea Party activists in response to the event, which is expected to draw as many as 100,000 people to the National Mall on March 21.
Their hope? To scare the public into opposing a pathway to citizenship for the estimated 12 million undocumented immigrants living in the United States.
NumbersUSA, a mainstream group that was instrumental in defeating reform in 2007, has discussed the idea of calling immigrant women from Mexico "the new welfare queens," while others are spreading paranoia that immigrants are trying to "steal the next election." The White House is holding a bipartisan meeting on immigration legislation this week and the possibility of reform is worrying opponents. They are now desperately attempting to block reform by appealing to frustration and fear.
Amplifying hate
Along with actions to flood Congress with phone calls and faxes, anti-immigration forces are also spreading misinformation and proposing ways to dehumanize immigrant communities. As Stephanie Mencimer notes in Mother Jones, operatives on the far right are pushing a conspiracy theory that the Obama administration is using immigration to steal the 2012 election.
The magazine reports that the WorldNet Daily, a publication which bills itself as "conservative news website," has come up with an elaborate scheme in which a secret "illegal immigrant registration" will "open the floodgates to fraud." That's despite the fact that undocumented immigrants are legally barred from voting in the first place.
On top of that, in a conference call organized by anti-immigration group NumbersUSA, an organization that is routinely quoted by the mainstream media to oppose reform, participants suggested calling immigrant mothers with Mexican heritage "the new welfare queens." As I report for Campus Progress, NumbersUSA, which worked to kill immigration reform in 2007, held the call this week to coordinate actions against the immigration march.
"I feel the new welfare queen in America today is women coming from Mexico with a bunch of babies," said one caller.In response, NumbersUSA conference moderator Chad MacDonald said "Thank you very much. I appreciate that."
Right after that, another caller suggested that anti-immigration activists not use the word "babies," because it was "emotional." Said the conference participant, "They aren't babies. They're dependents. ... They have dependents. We have babies." While NumbersUSA claims to be against "immigrant bashing," they made no efforts to stop the hateful statements that their supporters spewed over the phone.
Smart politics
While incendiary rhetoric from immigration opponents is alarming, Kai Wright writes in The Nation that such radicalism could be a good impetus for Democrats to embrace immigration reform. "The great thing about racists is they'll always take the bait," claims Wright. "You won't get far into an immigration-reform debate, for instance, before the GOP's more zealous legislators start doing things like criminalizing priests and calling Miami a 'third world country.'"
Politically, most Americans will probably be turned off by hateful and racist language used during the immigration debate, much like they were during the lead up to the confirmation of Associate Justice Sonia Sotomayor. In the end, the disgust factor could end up helping Democrats-if they let it.
"Immigration reform is an issue where Democrats are served better politically by picking a fight with the GOP than running from one," Wright explains. "The long-term politics are plain: Latino communities nationwide are young, growing and increasingly ready to show up at the polls. And the certain-to-be xenophobic reaction of the GOP's loudest voices today will not only motive Latinos this November, it will alienate independent voters as well."
Out of patience
This week, pro-reform grassroots groups held a press conference on Monday to denounce what they said was increased enforcement under the Obama administration, as the Immigration and Customs Enforcement agency reported at least a 5% increase in deportations for 2009. New America Media reports that advocates at the press meeting pointed out that "livelihoods were lost, local economies affected, and families split apart."
"These are the same enforcement practices that we marched against during the Bush administration," said Angelica Salas, director of the Coalition for Humane Immigrant Rights of Los Angeles, who was quoted by New America Media. The outlet also notes that advocacy groups "contended that the immigration audits or 'paper raids' that have replaced workplace raids under Obama are just as damaging to immigrant communities and the businesses that depend on them."
This post features links to the best independent, progressive reporting about immigration by members of The Media Consortium. It is free to reprint. Visit the Diaspora for a complete list of articles on immigration issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, and health care issues, check out The Audit, The Mulch, and The Pulse. This is a project of The Media Consortium, a network of leading independent media outlets.
Climate legislation is returning to the Senate's docket, and leaders on Capitol Hill are hoping that this version, a compromise bill spearheaded by Sens. John Kerry (D-MA), Lindsey Graham (R-SC) and Joe Lieberman (I-CT), can pass without getting caught in the morass of money and politics that has delayed action so far.
A long, long time ago...
Remember, there was a time when Congress was going to pass climate legislation before the international climate change negotiations in Copenhagen. President Barack Obama was going to show up with a bill in hand and lead the world towards a better climate future. After the House passed its climate bill in June 2009, the Senate began discussing climate change, and a first stab by Sen. Kerry and Sen. Barbara Boxer (D-CA) went nowhere. Now, Kerry has turned to less liberal colleagues to draft an alternative that would appeal to moderates and even Republicans.
Now the Massachusetts senator is promising that climate change isn't dead. A new bill is coming-more information may be in the offing as early as today, as Kate Sheppard reports at Mother Jones.
Third time's the charm
Sen. Kerry is trying a new tactic to pass climate legislation. He's waiting to release his plan until he knows the bill has the 60 supporters it needs to circumvent a filibuster. The details have not been hammered out yet, and even the Senators who've been in talks with Kerry, Graham, and Lieberman don't seem to have a clear sense of what will be in the version that will emerge.
In the House, Rep. Henry Waxman (D-CA), chair of the Energy and Commerce Committee, released an ambitious draft of the legislation, let lobbyists and members of Congress fight over it, and passed a much-changed edition months later. Sen. Kerry tried a similar plan on his side of Capitol Hill (that was the Kerry-Boxer bill), but it did not work.
With this piece of legislature, Sens. Kerry, Graham, and Lieberman are working out the compromises before they release the legislation. Both reporting and speculation about their bill say that it will abandon the cap-and-trade system passed in the House. Cap-and-trade restricts carbon emissions across the economy; a variation on that policy that the Kerry-Graham-Lieberman bill may favor will limit the system to a few sectors.
Will it work?
Kerry's expected bill may be a much weaker plan than any proposed so far, yet it is still not certain that the Senate will support it. The lead authors of the bill have been meeting with conservative Democrats and moderate Republicans, as Sheppard reports, but those targets have not promised support yet. Coming out of a meeting, Sen. George Voinovich (R-OH) told reporters: "There were some interesting things that were discussed in there and like everything else in the United States Senate, the devil is in the details."
From a distance, banner-day climate legislation still seems possible. Environmental groups like the Sierra Club, the National Wildlife Foundation, and the National Resources Defense Council believe that they will see a bill this year that caps carbon. These green groups would be able to live with the incentives handed to industry groups so far, according to Campus Progress' Tristan Fowler.
"There are compromises [that can go] too far. Fortunately, I don't think we're getting near that territory at the moment," Josh Dorner, a spokesman for the Sierra Club, told Fowler.
Sickly green
Before getting too excited about stamping a green seal of approval on Congress' legislation, consider Johann Hari's testimony in The Nation about the relationships between environmental groups and the industries that they oppose.
Hari has reported on climate change issues for years, and at first, he "imagined that American green groups were on these people's side in the corridors of Capitol Hill, trying to stop the Weather of Mass Destruction. But it is now clear that many were on a different path-one that began in the 1980s, with a financial donation."
Hari argues that as environmental groups began to reach out to polluters, handing them awards for green behavior and accepting support from their deep pockets, they learned to compromise too readily and accept political excuses for delaying action on climate change. While in other realms these compromises might fly, when the stakes are as high as they are on environmental issues, that behavior turns the stomach.
"You can't stand at the edge of a rising sea and say, 'Sorry, the swing states don't want you to happen today. Come back in fifty years,'" Hari writes.
The green future
When Kerry, Lieberman and Graham do release the compromised bill, watch for a tsunami of money and influence that could pack the bill with prizes for specific industries-or derail it altogether. Just this week, the natural gas industry's lobbyists told The Hill, a D.C.-based newspaper, that they were ready to fight with the coal industry over incentives in the Senate bill. At AlterNet, Harvey Wasserman writes that the nuclear industry spent $645 million in the past decade to get back into the energy game, according to a new report from American University's Investigative Reporting Workshop. (Hint: that $645 million is working in their favor.)
In the Senate, the influence of oil companies will play an important role, according to David Roberts at Grist.
"While coal has a lot of power in the House, oil has enormous power in the Senate, particularly over the conservadems and Republicans needed to put the bill over the top," Roberts explains.
No matter what legislation passes and what incentives it contains, environmentalists need to continue putting pressure on their representatives in Congress and on national environmental groups to push back against polluting industries and work to fix the world's climate.
This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Professional pundits and Democratic politicians are in a frenzy over what Martha Coakley's senate seat loss to Republican Scott Brown might mean for American politics.
Immigration reform in jeopardy
As Harold Meyerson of the American Prospect reports, the loss of one seat probably won't derail heath care reform, but it does make the chances of passing immigration reform slimmer. Meyerson writes that immigration reform is "necessary to restore our economic vitality and political equality," and actually passing reform would benefit the Democratic faction. Unfortunately, that means that immigration reform will require 60 votes in order to pass the senate.
The Texas Observer's Melissa del Bosque writes about the slim chances of immigration reform passing in 2010. According to Rep. Henry Cuellar (D-TX), a member of the Congressional Hispanic Caucus, a 2011 target date is "probably more realistic." del Bosque refuses to lose hope, reminding us that Rep. Luis Gutierrez (D-IL) has assured the public that "the Obama administration promised to bring up the issue in 2010." Of course, bringing up an issue and actually passing reform are two very different animals.
Holding on to hope for 2010
In her daily roundup of Spanish-language media, Erin Rosa of Campus Progress also urges a positive outlook "despite the reorganization of the Senate." Rosa relays that Rep. Xavier Becerra (D-CA) assured the media during a telephone conference that President Obama "remembers his promise well." While "most latinos" interviewed are impatient, they hold on to hope that 2010 is the year for reform.
TPS for Haitians
Haitian undocumented that are currently within U.S. borders will be given Temporary Protected Status (TPS), as Julianne Hing reports for RaceWire. The decision only applies to Haitian immigrants in the U.S. prior to January 12, 2010. Hing observes that it is unfortunate that it took "a disaster of this magnitude" to inspire the White House to offer TPS to Haitian immigrants, though it is "a great relief."
What will the recently granted TPS status mean for Haitians that are already in deportation proceedings? Such is the case of Haitian immigrant Jean Montrevil, asAarti Shahani reports for New America Media. Montrevil came to the U.S. on a green card in 1986 to "make it big," but in his efforts, "got stupid," and caught up in selling drugs from his taxi cab. That was 20 years ago, and Montrevil has served 11 years in prison to pay for his errors. Montrevil is now a father of four and a community leader. The Department of Homeland Security considers his prison time proper cause to deport him. Many others feel he has done his time, and is a positively contributing member of our society. Democracy Now! also covered Montrevil's story recently, as noted in the Jan. 7 Diaspora.
Invisible to the first world
Why are countries like Haiti mostly invisible to first world nations like the U.S. until catastrophe strikes? Leonardo Padura asks, before the earthquake, "Who talked about Haiti?" for IPS News. Haiti desperately needs the emergency aid so generously given today, but the country has needed help for a long time. "Let us hope that tomorrow, when the tragedy no longer dominates the headlines, and the dead are buried," writes Padura, "we will not forget Haiti exists...."
Disappointingly, "U.S. corporations, private mercenaries, Washington and the International Monetary Fund" are remembering Haiti in a rather cruel and opportunist fashion, as Benjamin Dangl reports for AlterNet. At a time of crisis and great human need, Washington D.C. is "promoting unpopular economic policies and extending military and economic control over the Haitian people." This is disturbing, as a long history of economic exploitation helped render the country vulnerable to disaster. The recent earthquake has claimed roughly 200,000 lives so far.
Haiti in context
While borders and border cities bear the brunt of blame when migrants move, the cure won't be found in bigger bails of barbed wire, or harsh enforcement tactics that deny escape from economic desperation or dangerous conditions.
Jocelyn Barnes, reporting for The Nation, provides a much needed contextualization of Haiti. There are many related factors that weakened and harmed Haiti's ability to thrive, not the least of which have been storms and earthquakes. But the privatization of Haiti's infrastructure-which was "championed" by current envoy to Haiti in charge of "leading the quake assistance brigade" former president Bill Clinton-have definitely been instrumental in the country's fate.
Marching against Arpaio
Finally, given the recent holiday celebrating the life and efforts of civil rights hero Martin Luther King, Jr., we would be remiss in overlooking the January 16 march in Arizona protesting Maricopa County Sheriff Joe Arpaio. The event was organized by Salvador Reza, a respected Mexican American activist and community organizer in Arizona. Musician Linda Ronstadt, Co-Founder of United Farm Workers Dolores Huerta, and approximately 5,000 people marched from a park to Tent City, the name for the sheriff's makeshift detention center.
Arpaio is reviled by many in the Latino and undocumented community for his methods of racial profiling and humiliating treatment of detainees. Recently, Arpaio was compared to Bull Connor by an ad published in in the Arizona Republic by 60 black leaders and the Center for New Community.
King's vision was large and led to new horizons; it cannot possibly be contained to one era, or one day on a calendar. The struggle continues, every day, everywhere.
This post features links to the best independent, progressive reporting about immigration by members of The Media Consortium. It is free to reprint. Visit the Diaspora for a complete list of articles on immigration issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, and health care issues, check out The Audit, The Mulch, and The Pulse. This is a project of The Media Consortium, a network of leading independent media outlets.
The next United Nations climate change conference is almost a year away, and health care is still dominating the legislative agenda in Washington. That means climate reform opponents, from the coal industry to the global warming skeptics, have plenty of time to work, out of the spotlight, to derail progress. Here's a glimpse of the enemies of reform-and the companies and individuals that are still fighting for change in 2010.
The Department of Homeland Security's Immigration and Customs Enforcement (ICE) is shifting its focus to silent or "quiet" raids, as Erin Rosa reports for Campus Progress. In quiet raids, ICE conducts "audits" of staff at pre-selected organizations and gives employers a chance to fire all workers who cannot produce documents of citizenship.
Since a lot of y'all will probably be coming to D.C. for the inaugural festivities, I thought I would let you know about two events where you can stop by and say hello. They are also the first two events we've organized to promote my new book, The Progressive Revolution.
The first is a roundtable discussion I'm doing on the future of the netroots and technology, with several other interesting folks, on Wednesday, January 21st, from 2-4:30 pm at the Center for American Progress. You can find out more about the event on my website, including RSVP info, here. Space is limited. I'll also be signing and selling books there courtesy of my friends at Progressive Book Club and Politics and Prose.
The second is that on Thursday the 22nd, I'm speaking and signing books at the weekly Drinking Liberally meetup in D.C., at Timberlake's, which is in Dupont Circle. More about that on my website here.
If you're in town, stop by and say hello. Both are free and should be fun.
Also, we're starting to organize my book tour outside of D.C. and are hitting a whole bunch of cities and towns, including a Philly/NYC swing, an LA/SF trip, a couple of CO events, and a tour of the Midwest. We are adding new events all the time. If you're willing to help organize and bring a crowd in, get in touch with Adam Bink, who is planning the tour and helped organize the two above events, via Adam at theprogressiverevolution dot com.
