How We Punish People for Being Poor
by
Rebecca Vallas
"This past weekend, I was part of a panel discussion on MSNBCs Melissa Harris Perry with New York Times reporter Michael Corkery, whose reporting on the rise in subprime auto loans is as horrifying as it is important.
In what seems a reprisal of the predatory practices that led up to the subprime mortgage crisis, low-income individuals are being sold auto loans at twice the actual value of the car, with interest rates as high as 29 percent. They can end up with monthly payments of $500more than most of the borrowers spend on food in a month, and certainly more than most can realistically afford. Many dealers appear in essence to be setting up low-income borrowers to fail.
Dealers are also making use of a new collection tool called a starter-interrupter device that allows them not only to track a borrowers movements through GPS, but to shut off a car with the tap of a smartphonewhich many dealers do even just one or two days after a borrower misses a payment. One Nevada woman describes the terrifying experience of having her car shut off while driving on the freeway. And repossession of their cars is far from the end of the line for many borrowers; they can be chased for months and even years afterward to pay down the remainder of the loan.
Predatory subprime auto loans are just the latest in a long line of policies and practices that make it expensive to be poorsomething I saw every day representing low-income clients as a legal aid attorney."
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http://www.commondreams.org/views/2014/10/13/how-we-punish-people-being-poor
1StrongBlackMan
(31,849 posts)Whenever I read about the "Class War" or the 1%, it inevitably is in the context of income inequity between the top and, really, what amounts to the middle; rather than, the top versus the bottom (or the middle versus the bottom).
I suspect this is understandable, since who wants to fight an economic battle where one benefits only on moral terms.
Personally, my income inequity efforts are focused on helping those at the bottom get more of what I have. For example, I am active in job readiness/job networking activities (since January, I have been directly involved in helping 40 low-income persons obtain employment ... jobs paying livable wages with benefits; what's more, I remain in contact with these individuals advising them how to negotiate the work world), I mentor youth helping them to develop life management skills (my Fraternity sponsors a group of, as of last month 57 young males, between the ages of 11 and 17. We meet weekly for organized activities or just to discuss life as young men), I volunteer at homeless centers/"soup kitchens" (though to be honest, this activity is my least favorite. I see the homeless/hungry spending so much of their time meeting that need, they have little time or energy to move forward).
I see these activities as far more useful than me riling against the "1%" because this is a battle that I can fight and see results. At the end of the day, my "war against the 1%" is just me talking about what I want.
whatthehey
(3,660 posts)Few people want to stand up and proudly say they cannot pay their bills and have ruined their credit to the point where these deals are their only option - even if it's true.
Fewer still want to base their political reputations on supporting those who have not paid their bills, no matter how valid the reasons why. And you don't fall into the 29% bracket without not paying back a creditor or three. It's walking into ads that say "X stands with deadbeats and credit cheats. I stand with hardworking responsible people like you who pay what you owe."
Even if you find that brave noble candidate, they face an electorate like this - in an election historic for minority and youth turnout, doubtless since made far worse. Yes I know income and credit are not the same thing, but somebody at the upper end can buy a useful car cash to avoid the 29%.
So you can only make this kind of thing the focus if you want to bet your election on people who don't vote very much and are very unsympathetic in the minds of those who do. Nice ethics, lousy politics.
To forestall the vitriol (perhaps....one can hope) this post reflects what is true, not what I personally wish were true.
1StrongBlackMan
(31,849 posts)ETA:
But politicians are followers ... When we the people focus on the bottom; rather than (frankly), themselves ... the politicians will follow.
unrepentant progress
(611 posts)It hollowed out the used car market, removing most of the decent mid-age vehicles, leaving the true clunkers because their owners couldn't afford to buy even with the grant, and driving used car prices through the roof. Where I live 20+ year old cars with 200,000 miles are being sold for $2,000-$3,500.