Debt

Debt As Colonialism

April 21, 2021 Joan Chaker, Progressive International. Educate! colonization, Debt, Lebanon, Recession

Debt, according to standard economic assumptions, emerges from a purely private exchange. Independent rational agents willingly enter into a contract in a free market. That market, in turn, sets a fair price for the debt. Freedom and fairness: these are the assumptions that underpin the common narrative about debt and indebtedness. This essay sets out to explode these assumptions. Contrary to the common narrative, the massive dollar-denominated debts in the Global South did not arise from private exchange in a regulatory vacuum. Rather, they are the product of an international financial system carefully designed to facilitate neo-colonial extraction. Debt is a vicious cycle that is neither free nor fair.

We Can Win Student Loan Debt Cancellation

March 29, 2021 Umme Hoque, Commondreams. Organize! Debt, Higher Education, Joe Biden, Student Loans

On March 18, the Biden administration's Department of Education announced that it will cancel $1 billion in federal student loan debt held by 72,000 borrowers who were defrauded by for-profit universities. These students received subprime educations and worthless degrees, and then were burdened with debt often in the tens of thousands of dollars—all while predatory companies and their investors made millions. The only reason this debt is now being cancelled is because debtors got organized. In 2015, students from for-profit, now defunct Corinthian Colleges Inc. launched the country's first student debt strike, refusing to pay their loans because they had been scammed by their school.

This Is Why It Is Imperative That President Biden, Not Congress, Cancels Student Debt

March 1, 2021 Margaret Flowers, Clearing the FOG. Podcast Debt, Executive Order, Joe Biden, Student Debt

The current student debt burden is over $2 trillion and it is crushing the economy. Defaults on student loans are high and for most borrowers, especially those who are people of color, their loan balances are rising instead of falling. Clearing the FOG speaks with Alan Collinge of Student Loan Justice about the impacts of the student loan burden and how to resolve this crisis. He makes a critical point about why it is President Biden, as he promised on the campaign trail, and not Congress, who cancels student debt and why that would be a powerful way to stimulate the economy.

Thomas Sankara: A United Front Against Debt

February 28, 2021 Progressive International. Resist! Africa, Debt, Imperialism, International Solidarity

At the 1987 summit of the Organization of African Unity, Thomas Sankara warned that he would not live to attend another meeting if Burkina Faso were alone in resisting its debt obligations. A few months later, he was murdered in a coup backed by France for calling out the neocolonialist and imperial character of the debt imposed on African countries and calling for African unity and freedom. Mister President, Heads of Delegations, At this moment I would like for us to speak about another pressing issue: the issue of debt, the question of the economic situation in Africa. It is an important condition of our survival, as much as peace. And this is why I have deemed it necessary to put several supplementary points on the table for us to discuss.

Report: Young People In The United States Are Overrun With Student Debt

February 20, 2021 The Jain Family Institute. Educate! Debt, Education, Student Debt, Youth

Young Americans are overrun with student debt. This crisis is the culmination of waning government funding for higher education, wage stagnation, wealth inequality, and a misleading emphasis on obtaining high credentials—all leading to the financial gap between college prices and later earnings. In 2020, aggregate balances reached $1.66 trillion in 2019 dollars, 122% higher in real dollars than in 2010. Not surprisingly, the number of borrowers, the amount they owe, and the number of loans each borrower acquires, have all increased over the time period. In 2019, 18-35 year-olds with student loan debt owed nearly $35,000 on average compared to just over $28,000 (USD 2019) in 2009. Back in 2009 there were only 32 million federal borrowers; in 2019, that number swelled to 43 million.

People In Debt Have Formed A Union To Fight Back

January 5, 2021 Eve Ottenberg, Truthout. Resist! Debt, Joe Biden, Medical Debt, Student Debt

In November, Pennsylvania permitted the resumption of utility shutoffs during the pandemic. In advance, the local Debt Collective, which helps people dispute their debts and fight back against predatory fees, protested. The group helped organize a gathering of between 20 and 30 protesters in Philadelphia to demand the moratorium continue. “We are tired of this,” Pennsylvania Debt Collective organizer Lauren Horner told CBS. “We are tired of the greed displayed by these organizations.” Horner was referring to the Philadelphia Gas Works, the PECO Energy Company, and to what some in the Debt Collective regard as the negligence of the Public Utility Commission.

Polarization, Then A Crash: Michael Hudson On The Rentier Economy

January 5, 2021 Lynn Fries, Global Political Economy. Resistance Report Capitalism, Debt, Economic crisis, Neoliberalism

I'm delighted to have Michael Hudson join us today. He'll be discussing how under a neoliberal shift from industrial to finance capitalism, today's most pressing economic conflict is not simply between labor and employers. It's a conflict in which rentier interests have the upper hand over labor, industry and government together. This is the political economy in which the COVID-19 economic shock is playing out with dire consequences. Michael Hudson is a research professor of economics at the University of Missouri - Kansas City and a research associate at the Levy Economics Institute of Bard College. Michael Hudson's latest book is "And Forgive Them Their Debts."

More People In The US Are Paying Rent On Credit Cards

December 2, 2020 Chris Arnold, WBUR. Create! Cancel the Rent, Debt, Evictions, Recession

With their savings running out, many Americans are being forced to use credit cards to pay for bills they can't afford — even their rent. Housing experts and economists say this is a blinking-red warning light that without more relief from Congress, the economy is headed for even more serious trouble. There's been as much as a 70% percent increase from last year in people paying rent on a credit card, according to an analysis by the Federal Reserve Bank of Philadelphia. "If you're putting your rent payments on to a credit card, that shows you're really at risk of eviction," says Shamus Roller, executive director of the nonprofit National Housing Law Project.

World’s Public Banks Gathered At First-Ever Summit

November 16, 2020 Andrea Germanos, Commondreams. Resist! climate crisis, Debt, Fossil Fuels, Public Banks

"There is no excuse for the continued funding of billions of dollars in coal, gas, or oil projects. This must stop now," Sophie Richmond, a coordinator with Big Shift Global, said in a statement. The event in question was the four-day Finance in Common Summit, which ended Thursday. Hosted by France, the virtual summit was billed as a way "to stress the crucial role of Public Development Banks (PDBs) in reconciling short-term countercyclical responses with sustainable recovery measures that will have a long-term impact on the planet and societies."

Paradise For Human Victims Of Corporate Persons

October 27, 2020 Vijay Prashad, Tricontinental: Institute for Social Research. Educate! Debt, International Monetary Fund, Poverty, Zambia

Any day now, Zambia will be the first African country to slip into a private debt default. It can only pay interest on the $3 billion in dollar-denominated bonds if it totally ignores the needs of the Zambian people. The country has suffered from the slowdown of the world economy, which impacted the sale of its copper for a part of this year (although copper prices and future prices have now begun to rise). Cosmas Musumali, the general secretary of the Socialist Party of Zambia, says that the convulsions of indebtedness are not only due to the coronavirus recession but also to the wealthy bondholders and to the ‘cluelessness’ of the government of President Edgar Lungu of the Patriotic Front.

A Debt Reckoning Is Unavoidable

October 21, 2020 Aaron Karp, Waging Nonviolence. Organize! COVID-19, Debt, Recession, Unemployment

The late anthropologist David Graeber, who wrote about the 5,000-year history of debt, spoke about a strange paradox of being indebted. “The first effect of debt is to create isolation, shame, humiliation, a fear of even talking about it. On the other hand, if you look at history, the vast majority of revolts and insurrections are about debt. So in a sense it’s incredibly effective, ideologically, at isolating people. But once people overcome that isolation, the results are always explosive.” We may be heading towards such a moment.

Debt Collectors Have Made A Fortune This Year

October 15, 2020 By Paul Kiel and Jeff Ernsthausen, ProPublica. Educate! Debt, Debt Collection, Pandemic, Recession

Earlier this year, the pandemic swept across the country, killing 100,000 Americans by the spring, shuttering businesses and schools, and forcing people into their homes. It was a great time to be a debt collector. In August, Encore Capital, the largest debt buyer in the country, announced that it had doubled its previous record for earnings in a quarter. It primarily had the CARES Act to thank: The bill delivered hundreds of billions of dollars worth of stimulus checks and bulked-up unemployment benefits to Americans, while easing pressures on them by halting foreclosures, evictions and student loan payments.

Could Your Medical Bills Make You Sick?

October 1, 2020 Lisa L. Gill, Consumer Reports. Educate! Debt, health, Health Care, Medicare for all

Devin Barrington-Ward was doubled over with stomach pain. His chest hurt, too. Though his family urged him to call an ambulance and he was terrified that his condition was serious, Barrington-Ward had another concern on his mind: the expense. Uninsured, he knew he couldn’t afford the ambulance ride. So his mother raced him to a hospital near his home in suburban Atlanta that day in January earlier this year. After several hours in the emergency room, where he saw numerous physicians and got a CT scan and other tests, Barrington-Ward was diagnosed with colitis.

The Case For Debt Abolition

September 22, 2020 Astra Taylor, ROAR Magazine. Resist! Debt, Debt Jubilee, Debtor Union, Recession

In 2008, around the same time Lehman Brothers collapsed and the mortgage market began to melt down, I got a call telling me my student loans were in default. I remember trying to grasp the logic as I spoke to the collector. Because I didn’t have money, they were increasing my principal by 19 percent. My balance ballooned, as did my monthly payments, which meant I was even more broke than before. My credit score tanked, further compounding my financial woes. When I got involved in Occupy Wall Street a few years later, I realized my situation was hardly unique. Most people drawn to the encampments were also in the red.

Make Corporate Landlords Pay The Bills During The Pandemic

September 22, 2020 Sofia Lopez and Sara Mycklebust, Inequality.org. Create! Corporate Bailout, Debt, Landlords, Pandemic, Rent Strike

The Covid-19 crisis has both exposed and exacerbated racial and wealth inequality in the United States. As unemployment skyrockets and tens of millions of Americans struggle with a sudden loss of income, many are unable to pay rents or mortgages and are facing eviction, foreclosure, and possible homelessness. We’ve seen this eviction crisis brewing for months, and despite platitudes about racial justice, our elected officials and corporate landlords haven’t taken any meaningful action to prevent it from hitting poor people of color hardest.

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