Showing posts with label Vox. Show all posts
Showing posts with label Vox. Show all posts

Wednesday, September 6, 2023

Europeans die while Americans get rich off the Ukraine war: Is this a great country or what?

 Bruce Catton, the great chronicler of the Civil War, began one of his books with a quote from a chaplain in the Union Army who was struck by the fact that the war was devastating the South while bringing prosperity to the North.

“What a marvel is here!” wrote the chaplain. “Something new under the sun! A nation, from internal resources alone, carrying on for over eighteen months the most gigantic war of modern times, ever increasing in its magnitude, yet all this while growing richer and more prosperous!”

Americans should likewise be astonished. The United States is funding an all-out war with Russia, a conflict that has left a half million Russians and Ukrainians either dead or wounded. And yet Americans are prospering under Bidenomics. It’s an economic miracle! And all this new wealth has been conjured up by President Joe Biden, a demented criminal!

Unfortunately, America's growing wealth hasn't been distributed equitably. I, for example, haven't made a dime off the Ukrainian ruckus in spite of the fact that I'm a registered Democrat. 

The defense contractors, however, are making out like bandits.  Rob Rooke, writing for a socialist online publication, points out that a third of the Defense budget goes to just five corporations: Boeing, Raytheon, Northrup, General Dynamics, and Lockheed Martin. Undoubtedly, the Ukraine war has sent a lot of business their way.

Europeans are noticing that Americans are profiting from the Ukraine war while Europe suffers. As one senior European official put it: 

The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S. because they are selling more gas and at higher prices, and because they are selling more weapons. (As reported in The Economic Times)

 Is the defense industry sheepish or embarrassed about the money it's making off the war between Russia and Ukraine? Not at all. The Ukrainian embassy in DC recently hosted a reception celebrating the 31st anniversary of the founding of the Ukrainian military. 

Who sponsored this gala event? The American defense industry! The logos of these four defense contractors appeared on the friggin’ invitation: Northrop Grumman, Raytheon, Pratt & Whitney, and Lockheed Martin (as reported by Jonathan Guyer in Vox).

The defense industry and its lobbyists are significant contributors to our nation's elected politicians. Perhaps this explains why most of them support the Ukraine war--both Democrats and Republicans. 

I'm all in favor of people making money. After all, that's what this nation's all about. Nevertheless, I oppose American involvement in the senseless Ukraine war. Can't America's business sector make an honest buck that doesn't involve the slaughter or dismemberment of thousands of Europeans?

Photo credt: Vox








Tuesday, March 17, 2020

Joe Biden and the 2005 Bankruptcy Reform Act: "It's not personal. It's strictly business."

The 2020 presidential election is about eight months away, and I'm not going to tell you how to vote. If you hate Trump, you'll vote for Biden. If you think Biden is suffering from dementia, you'll vote for Trump.  And by election day, Biden or Trump will probably be your only choice.

Regardless of their political affiliation, all student-loan borrowers who are drowning in debt will want the next President to do one thing: reform the bankruptcy law. Specifically, they will want the next President to pressure Congress to repeal the Bankruptcy Reform Act of 2005 and to remove the "undue hardship" language from the Bankruptcy Code.

The Bankruptcy Reform Act of 2005--named with unintended irony--made it more difficult for Americans to discharge credit card debt in the bankruptcy courts, and it made the bankruptcy process more expensive and more difficult for beaten-down debtors.

 According to Senator Elizabeth Warren:
After the bill passed, bankruptcy filings went down permanently by 50%, and the number of insolvent people went up permanently by 25%. By making it harder for people to discharge their debts and keep current on their house payments, the 2005 bill made the 2008 financial crisis significantly worse: experts found that the bill “caused about 800,000 additional mortgage defaults and 250,000 additional foreclosures.” 
The law also made private student loans almost impossible to discharge in bankruptcy. Before its passage, debtors could not discharge federal student loans in bankruptcy unless they could show "undue hardship." After the bankruptcy reform law was passed, private loans were also nondischargeable unless a debtor could show undue hardship.

The law was a Republican-backed bill, which Senator Ted Kennedy scathingly criticized. “This legislation breaks the bond that unites America, it sacrifices Americans to the rampant greed of the credit card industry,” Kennedy said.

But many Democratic senators crossed party lines and voted with the Republicans.  One of those aisle-crossing Democrats was Joe Biden. Senator Biden claimed the new law would cut down on abuses in the bankruptcy system. In fact, there was little evidence that debtors were scamming the bankruptcy courts.

In my view, Biden disguised his motives for voting in favor of the bankruptcy reform bill. In reality, Biden was doing the bidding of the corporate banks, which have donated millions to his campaign coffers over the years. To borrow a quote from The Godfather, Biden's vote wasn't personal; it was strictly business.

Now, however, Mr. Biden is singing a different tune. As reported by Matthew Yglesias in Vox,  Biden recently changed his position on the 2005 law. He now endorses the views of Senators Elizabeth Warren and Bernie Sanders, who have called for its repeal.

This is good news for student-loan debtors, but I think Mr. Biden needs to express his change of views more forcefully. Student debtors need to hear Biden explicitly call for the repeal of the 2005 Bankruptcy Reform Act and the abolition of the "undue hardship" language in the Bankruptcy Code. If he does that, Biden will win a lot of votes in the November election.



Biden and the 2005 Bankruptcy Reform Act: It wasn't personal. It was strictly business.