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I’m disgusted

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Student Loan Bonanza

Illustration by Victor Juhasz

Over the last five years I’ve become more and more disgusted by both our federal government and our financial industry as a result of our entire country, and government, becoming financialized. All that matters now is how much profit can be made, regardless of the consequences to human lives, and protecting the worse financial actors from the recent financial meltdown that caused a worldwide recession.

A couple of days ago, Matt Taibbi, wrote a lengthy piece in Rolling Stone Magazine about the student loan scandal that threaten our nation’s economy.

Ripping Off Young America: The College-Loan Scandal
The federal government has made it easier than ever to borrow money for higher education – saddling a generation with crushing debts and inflating a bubble that could bring down the economy

I didn’t read this story two days ago when it was published. I wish I had since my voice now will make little difference – everyone’s moved on to the next scandal or reality show highlights. 

However much Taibbi’s rhetoric seems over the top, his actual story is accurate. A couple of years ago, the Higher Ed. journal he mentions published a story on the rapidly rising cost of a college education.

Although the journal didn’t go into the whole funding of students loans issue, the publication did lay most of the blame on institutions that went on a spending binge during the last decade, which universities defended as needing to do to “attract students”. According to the schools, competition among colleges required spas, hot tubs, outrageously expensive sports stadiums, cafeterias rivaling the best restaurants, and so much more. 



Money was cheap so colleges spent lavishly, expecting the public through taxes, to pick up the bill even as students were being saddled with higher tuition costs. Not long after that journal article came news of the UC Berkeley Chancellor being given a million dollar salary and a completely renovated (real) mansion (at the UC system) multi-million dollar expense. Within months, news broke of other chancellors receiving million dollar incomes…and other expensive perks. Like the dramatic increase in C-suite salaries, competition, you know. 



Then as the states’ began to deal with massive lost revenues following the financial crash, states cut back on higher educational funding, putting even more pressure on students in yet higher tuition costs. Even now under Obama’s Administration, as Taibbi notes, the federal government expects to make billions of dollars in profit off of student loans, especially since students cannot discharge those loans under bankruptcy. Nor were students and parents informed or warned of the hazards and total costs of those government backed loans. Now, we have millions of our young people’s lives being destroyed by the cost of loans they never understood and never expected.

To those of us who were paying attention, the inability of discharge student loans in bankruptcy is old news. The GOP Congress, under Bush 2, pushed it through, even though huge numbers of groups and people lobbied against it at the same time they turned over the student loan program to banks. What happened under that GOP sponsored and driven legislation is that student loans became one of only two financial obligations that cannot be erased in bankruptcy. The other is taxes owed. 



Taibbi is also correct about the degree requirement for even low skill workers. When I worked for Oracle back in the ’90s, even our receptionists were required to have 4-year degrees. Why, I have no idea; it’s not like someone answering the phone and forwarding calls needs an elevated education. 

Yet, in our increasing “information” economy, a degree has become a necessity…unless you agree with the recent GOP mantra that only some should attain a degree while the vast majority should forego college. To become what: checkers at Walmart or burger flippers at McDonalds? Even getting into a qualified tradesman program (not hyped for-profit ripoff programs), like plumbing or carpentry which cannot be outsourced, that actually trains apprentices and helps them with jobs are few and far between.

I keep asking but no one answers, why do we citizens continue to permit our entire economy to be financialized to the detriment of millions of families, both now and in the future? Why do we allow ourselves to be conned and lied to and abused? Why aren’t we fighting back not only with our votes but with our power to demand changes in electoral laws that protect our interests, rather than just the interests of the powerful, wealthy and connected?

As long as the voting public unwisely protects the lobbyists and wealthy donors who have far more power, influence, donor money, and ability to get their preferred message listened to and across to legislators, average Americans, and our future generations, will be nothing more than insignificant chess pawns.

It’s obvious that Obama is not really going to stand up for you. Neither will anyone on the GOP bench. Supply side, neo-liberal economics which has destroyed our jobs and our economy is all the GOP offers. And Obama’s Administration is not a whole lot better. Obama is not a progressive or a socialist or liberal. He’s center right on almost every issue. Even Republican TR was more progressive and more concerned about average Americans and new businesses and against the excesses of Wall St than Obama has been.

But nothing…absolutely nothing…will change until we voters demand that the entire campaign financing system be rebuilt from the bottom up. Corporations, so-called non-profit Super-PACs and unions are not people as all of our founders concluded and should not have First, Fourth and Fifth Amendment rights. They are nothing more than legal fictions, which our greatest legal minds stated long ago. Moreover, TR eloquently wrote when money became heavily involved in the political process, corruption occurred either by bribery of legislators or by legislators blackmailing companies. In both cases, the public loses even as legislators grow more wealthy.

The current system of financialization of our entire economy and political bribery and blackmail are killing our country and destroying the lives of our children and grandchildren. Just throwing these “bums” out and replacing them with another set of bums changes nothing since the incentives remain the same. Nothing will change but the faces. If America is to recover, the voters must demand new and strict new election donor laws, including a Constitutional Amendment and prohibitions on party gerrymandering, that puts power back into hands of voters again.

As voters, parents and workers, we must demand real change that protects our interests. Ask and demand all legislative candidates promise in their first term to promote election changes that prohibit lobbying donations and lobbyists writing legislation, make all campaign donations even to SuperPacs transparent and online within 24 hours, and a Constitutional Amendment that eliminates all non-human entities First, Fourth and Fifth Amendment rights.

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Written by Valerie Curl

August 17, 2013 at 3:54 PM

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