Today's New York Times front paged one of those stories that reveals much that is wrong with official Washington and our economy.
There are few more vicious participants in the economy than the so-called "pay day lenders" - those store front practitioners of loan sharking that prey on the working poor. With unregulated fees and interest rates often leading to APRs of 400% and higher, it is possible to get very rich off of very poor people.
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March 11, 2010
Move Our Money: Why Universities Should Join the Movement
How much money do you have in the bank? Whether it's $1,000 or $1 million, those deposits cumulatively have a big impact on the local economy, and even more so if you put them in a local bank or credit union. That's the whole idea behind the Move Your Money campaign: taking your money out of the big banks, and putting into a local bank or credit union, can impact your local economy.
Big banks may take the money that is deposited and lend it to major corporations doing things like mountaintop removal coal mining and use it to make risky investments in derivatives, while at the same time charging high fees on credit cards and making predatory loans to low-income people.
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Big banks may take the money that is deposited and lend it to major corporations doing things like mountaintop removal coal mining and use it to make risky investments in derivatives, while at the same time charging high fees on credit cards and making predatory loans to low-income people.
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March 10, 2010
Travel Promotion Act: A Win for US Economy and Taxpayers
With unemployment remaining high and concerns growing about a jobless recovery, Congress recently passed legislation that promises to jumpstart travel, a critical sector of our economy. Best of all, this "stimulus" plan won't cost taxpayers a single dime - in fact it will actually increase federal revenues and lower the federal budget deficit.
The bill is called the Travel Promotion Act, and it was enacted with strong, bipartisan majorities in both the House and Senate (78-18) and is on its way to the President for his signature. The Act establishes a new public-private partnership to promote the U.S. as a leading destination for international travelers and educate them about U.S. security procedures. This partnership will be funded by a modest $10 fee on overseas travelers who do not pay $131 for a U.S. visa and matched by the travel industry.
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The bill is called the Travel Promotion Act, and it was enacted with strong, bipartisan majorities in both the House and Senate (78-18) and is on its way to the President for his signature. The Act establishes a new public-private partnership to promote the U.S. as a leading destination for international travelers and educate them about U.S. security procedures. This partnership will be funded by a modest $10 fee on overseas travelers who do not pay $131 for a U.S. visa and matched by the travel industry.
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March 8, 2010
Robert Rubin: Why Won’t He Go Away?
As Treasury Secretary, Robert Rubin put in place all the pieces that set up the economy for the disaster that we are now living through. He pushed legislation that weakened regulation of the financial sector; he cheered on a stock bubble that eventually grew to $10 trillion and he established an over-valued dollar as a matter of official policy.
He then left to take a top job at Citigroup where he was able to enjoy the fruits of his labor. He earned well over $100 million in the decade after he left the Clinton administration. In the fall of 2008, when Citigroup was saved from bankruptcy with a taxpayer bailout, Rubin quietly slipped out the back door (with his money), resigning from his position at Citigroup.
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He then left to take a top job at Citigroup where he was able to enjoy the fruits of his labor. He earned well over $100 million in the decade after he left the Clinton administration. In the fall of 2008, when Citigroup was saved from bankruptcy with a taxpayer bailout, Rubin quietly slipped out the back door (with his money), resigning from his position at Citigroup.
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Colleges Shift Admissions Policies
Two prominent liberal arts colleges are reshaping their admissions policies in drastic yet opposite ways -- one despite the economy, and one because of it.
Bucking trends, Hamilton College in upstate New York announced today that it will begin to admit students without taking into account their financial need. The New York Times reports that seed contributions from six trustees, amounting to $3 million, will enable the school to adopt a need-blind policy. Tuition at Hamilton averages to $50,000 a year.
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Bucking trends, Hamilton College in upstate New York announced today that it will begin to admit students without taking into account their financial need. The New York Times reports that seed contributions from six trustees, amounting to $3 million, will enable the school to adopt a need-blind policy. Tuition at Hamilton averages to $50,000 a year.
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Humanity And Resilience Theory
I've been thinking a lot about the future of humankind on our planet lately. Nothing special has triggered it, except maybe more than 50 years of life on Earth.
Historically, there have been all sorts of be-all end-all circumstances. Now we face climate change, the ends of institutions, a new kind of economy. No one really knows how all these things will pan out.
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Historically, there have been all sorts of be-all end-all circumstances. Now we face climate change, the ends of institutions, a new kind of economy. No one really knows how all these things will pan out.
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L.A. Sparks Revolt Against Wall Street Shakedowns, Abuses
What do the titans of Wall Street do for an encore after their reckless investments and lending wrecked the global economies, they created the country's worst recession since the 1930s and then conned the U.S. taxpayers out of trillions in loans and guarantees -- all the while foreclosing on millions of loans and refusing to lend to small and mid-size businesses?
How about shaking down cities with costly, toxic "swap deals" supposedly designed to hedge risk for revenue-starved municipalities -- and then forcing them to pay tens of millions in excess interest payments after they economy tanked and
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How about shaking down cities with costly, toxic "swap deals" supposedly designed to hedge risk for revenue-starved municipalities -- and then forcing them to pay tens of millions in excess interest payments after they economy tanked and
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March 5, 2010
Today’s Jobs Numbers Do Not Tell the Full Story of Men and Their Families
Even as the economy benefits from the American Recovery and Reinvestment Act, or ARRA, and continues to show some signs of being on the mend, today's unemployment numbers continue to demonstrate how badly workers are faring--especially if they are low-wage and/or low-skilled men. In February, those with the least amount of education had an unemployment rate of 15.6% as compared to the general rate which remained static at 9.7%. The unemployment extension that was signed by President Obama earlier this week and the pending jobs bill should provide some relief. However, low-income men are facing serious challenges that reach beyond the impact of the recession and that affect their children and families.
Antipoverty programs are often built around serving women and children, leaving many low-income men out in the cold. Policies focused on children and families must include a greater focus on men, being mindful of the fact that many of these men are fathers who can and do make positive contributions to their children's lives while also helping to lift the economic burden from the backs of low-income women who far too often bear the majority of the cost associated with childrearing. To some this is simply a statement of the obvious. However, many Americans continue to carry negative stereotypes about poor men especially if they are people of color, lack stable employment, face difficulties financially providing for their families, have a criminal record, or possess a combination of these factors.
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Antipoverty programs are often built around serving women and children, leaving many low-income men out in the cold. Policies focused on children and families must include a greater focus on men, being mindful of the fact that many of these men are fathers who can and do make positive contributions to their children's lives while also helping to lift the economic burden from the backs of low-income women who far too often bear the majority of the cost associated with childrearing. To some this is simply a statement of the obvious. However, many Americans continue to carry negative stereotypes about poor men especially if they are people of color, lack stable employment, face difficulties financially providing for their families, have a criminal record, or possess a combination of these factors.
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The Age of Discontent in the Americas? Not Really
According to the UN Commission Trade and Development over 60 percent of the population south of the Rio Grande is under 35 years old. Latin America's young people will have an impact on political stability and the economy not just in their home countries but also in the U.S., where Latin America accounts for 20 percent of U.S. exports and is the major source of narcotics consumed in the U.S. There's also the issue of immigration, where a backlash against Hispanic immigration has fueled a growing desire to close borders and sometimes spilling over into an ugly racist anger against immigrants already within our borders. With the huge demographic bubble south of U.S. border, the lack of economic opportunity faced by many of the young means that in the years ahead larger numbers of them will be knocking on U.S. doors for entry.
Drawing from surveys conducted by the AmericasBarometer at Vanderbilt University in 2008 that examine youth attitudes and activities compared to their older counterparts Mitch Seligson and I discovered that in fact Latin American youth are not turning against democracy nor are even that pessimistic about their futures. (For a graphic display of the survey data, please go to http://www.americasquarterly.org/node/1357 )
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Drawing from surveys conducted by the AmericasBarometer at Vanderbilt University in 2008 that examine youth attitudes and activities compared to their older counterparts Mitch Seligson and I discovered that in fact Latin American youth are not turning against democracy nor are even that pessimistic about their futures. (For a graphic display of the survey data, please go to http://www.americasquarterly.org/node/1357 )
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March 2, 2010
Will Global Natural Disasters Compound Global Financial Disasters?
Every enduring agrarian society learned to store surplus harvests for infertile times. Conversely, during the last global credit bubble, most countries followed an unwise philosophy of simply spending more.
As the global economy has somewhat stabilized for the moment, the global environment has not. Recent large-scale tragedies include earthquakes and tsunamis in Haiti, Chile, China/Russia/North Korea, Hawaii, and Japan. All of these damaged regions require aid from those more fortunate.
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As the global economy has somewhat stabilized for the moment, the global environment has not. Recent large-scale tragedies include earthquakes and tsunamis in Haiti, Chile, China/Russia/North Korea, Hawaii, and Japan. All of these damaged regions require aid from those more fortunate.
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