WARS ABROAD, WARS AT HOME
How Homeownership Became the Engine of American Inequality
When we think of entitlement programs, Social Security and Medicare immediately come to mind. But by any fair standard, the holy trinity of United States social policy should also include the mortgage-interest deduction — an enormous benefit that has also become politically untouchable… The owner-renter divide is as salient as any other in this nation, and this divide is a historical result of statecraft designed to protect and promote inequality. Ours was not always a nation of homeowners; the New Deal fashioned it so, particularly through the G.I. Bill of Rights… But both in its design and its application, the G.I. Bill excluded a large number of citizens. To get the New Deal through Congress, Franklin Roosevelt needed to appease the Southern arm of the Democratic Party. So he acquiesced when Congress blocked many nonwhites, particularly African-Americans, from accessing his newly created ladders of opportunity. Farm work, housekeeping and other jobs disproportionately staffed by African-Americans were omitted from programs like Social Security and unemployment insurance. Local Veterans Affairs centers and other entities loyal to Jim Crow did their parts as well, systematically denying nonwhite veterans access to the G.I. Bill… From 1934 to 1968, the official F.H.A. policy of redlining made homeownership virtually impossible in black communities. “The consequences proved profound,” writes the historian Ira Katznelson in his perfectly titled book, “When Affirmative Action Was White.” More
AMERICA IS GETTING RICHER EVERY YEAR. THE AMERICAN WORKER IS NOT.
Stagnant or falling earnings have put a squeeze on working- and middle-class households. The trend has also widened the gap between the rich and everyone else as, overall, the economy has continued to grow overall but the bulk of those gains have ended up in the pockets of the affluent.
These are some of the conclusions from a new working paper by a group of economists investigating the reasons for the decline of the American middle class. While economists have been concerned about recent data on earnings, the new paper suggests that ordinary Americans have been dealing with serious economic problems for much longer than may be widely recognized… For instance, the typical 27-year-old man’s annual earnings in 2013 were 31 percent less than those of a typical 27-year-old man in 1969. The data suggest that today’s young men are unlikely to make up for that decline by earning more in the future. More
What a new report reveals about white economic hardship and Trump’s big win
Roughly a third of white working-class Americans said that they have cut back on food or meals in the past year to save money. A similar share it would be difficult — if not impossible — for them to cover an emergency expense of $400. And among those who live in the same town where they grew up, only 17 percent say the quality of life there has improved… The report reveals the economic and material hardships afflicting the white working class, one of the report's authors says, lending insight into why so many people in this group were willing to gamble on Donald Trump, a candidate with no governing experience… Indeed, when it comes to policy details, the white working class supports many economic proposals associated with Democrats, not Republicans. Fifty-three percent of those surveyed supported increasing the minimum wage to $15 an hour, and 58 percent said the rich should pay more in taxes. (Those figures are similar to the results for the general population.) More
The American Way of War Is a Budget-Breaker
In this century of nonstop military conflict, the American public has never fully confronted the immense costs of the wars being waged in its name. The human costs -- including an estimated 370,000 deaths, more than half of them civilians, and the millions who have been uprooted from their homes and sent into flight, often across national borders -- are surely the most devastating consequences of these conflicts. But the economic costs of our recent wars should not be ignored, both because they are so massive in their own right and because of the many peaceable opportunities foregone to pay for them… Overall, as presently imagined, the Trump budget would hike the Pentagon’s cut of the pie, and related spending on veterans' affairs, homeland security, and nuclear weapons to an astounding 68% of federal discretionary spending. And keep in mind that the discretionary budget includes virtually everything the government does outside of entitlement programs like Social Security, Medicare, and Medicaid. You undoubtedly won’t be surprised to learn that perpetual war and the urge to perpetuate yet more of it leaves little room for spending on the environment, diplomacy, alternative energy, housing, or other domestic investments, not to speak of infrastructure repair. Put another way, preparations for and the pursuit of war will ensure that any future America is dirtier, sicker, poorer, more rickety, and less safe. More
The Conviction of an Activist for Laughing Portends Repression of Protest Under Trump
A year in jail for laughing. That's not a scenario from a dystopian movie set in some far-off future under a repressive government. It's the sentence that Code Pink activist Desiree Fairooz is facing after being convicted in early May of disorderly conduct for -- yes -- laughing during the confirmation hearing of new Attorney General Jeff Sessions… These convictions are a troubling sign of what's in store for our right to dissent under the Trump administration. In the past several months, lawmakers -- mainly Republicans -- in several states have tried to pass, and in some cases succeeded in passing, legislation curbing the right to protest, increasing fines and penalties for those who do engage in protest, or expanding the right of private entities or the state to pursue damages from individuals and groups who engage in protest. In early April, Common Dreams reported that proposed laws in at least 19 states would curtail protest rights -- and that number is growing. More
Puerto Rico’s $123 Billion Bankruptcy Is the Cost of U.S. Colonialism
Puerto Rico is the largest overseas territory still under the sovereign control of the United States, and it is the most important colonial possession in this nation’s history. That relationship produced uncommon profits for American subsidiaries on the island for more than a century, even as the federal government kept claiming that the Commonwealth of Puerto Rico, created in 1952, was a self-governing territory. But now, with a Washington-appointed board directly overseeing the island’s economy, and with a pivotal Supreme Court decision last year affirming that Congress continues to exercise sovereign power over Puerto Rico, the mask of self-governance has been removed.
The old commonwealth is effectively dead. Absent a huge infusion of U.S. public dollars to prop up its collapsing economy, a scenario that is nearly impossible with a Trump White House and a Republican-controlled Congress, that relationship cannot be revived. Political leaders in both Washington and San Juan, whether they like it or not, are being propelled to fashion a new political and economic status for the territory. They will have to finally decide whether to completely annex Puerto Rico as the 51st state or acknowledge that it still remains a distinct nation, with the right its own sovereignty and independence. More
