Skip to main content

Student Debt Impacts Economy

Wage inequality, which has led to flat family incomes and has led to $115 billion in federal loans for college. These college loans equal $7 million in student loan defaults and this in turn had led to a new industry which feeds off student loan debt. The companies are debt collectors who make calls for government contracted debt collectors. The companies making these calls are just one part of a system feeding on federal student loans. There are also debt services, refinance lender firms that help former students avoid defaulting on their loans and for profit schools that makes money as borrowers try to repay more than $1.2 trillion in government backed education debts. The beneficiaries of the loan programs are for the most part not the students, they are companies like debt services like Affiliated Computer Services Inc. Now part of Xerox Corporation and Education Management Corporation, which operates for for-profit colleges and whose largest shareholder is Goldman Sachs Group Inc. The GOP ensured these corporations will not be bothered by lawsuits or be cheated out of their profits by making it illegal for students to file bankruptcy. Just think, if all of this money was just used to pay for free education and not to for-profit schools and debt collectors the students would get an education and come out of college debt free and have a chance to get a good paying job and be able to pay taxes and not paying back inflated student loans, which just makes money to Goldman Sachs’ people and Wall Street. When people start out in their working life straddled with huge debts to repay they cannot purchase anything for their credit is zero. It is like starting out in a foot race and everyone gets a three-year head start. The chances of you winning are against you. This must change and just chipping away at the problem will take too long. We need to elect people who will change the way things are done now and not engage in slow walking. We need and deserve free education, free healthcare, a $15 an hour minimum wage, the right to form or join a union and card check now. Bernie Sanders and Elizabeth Warren could be our last hope for a real change before it’s too late.

Popular posts from this blog

Post Workists and What it Means

To change the abundance of labor in the world is to put more money in the pockets of the laborer to buy the products their fellow workers are making. Otherwise, when there are more products than money, there is slump in the economy. Austerity policies, low wages and automation (robots) were also of concern in the 1950s when Henry Ford II, CEO of Ford, took Walter Reuther, head of the United Auto Workers Union, on a tour of a new engine plant. Ford gestured to a fleet of new machines and said, “Walter, how are you going to get these robots to pay union dues?” The union leader turned to Ford and said, “Henry, how are you going to get robots to buy your cars?” This type of change in the labor has created a new type of working class that swings from task to task in order to make ends meet while enduring the loss of labor rights and bargaining rights. They are called “precariat” workers, a group of workers who live on the verge of collapse due to the instability of the nature of their job…

GOP To Pick-off Remainder of Unions

The last bastion of organize labor is now on the west and east coasts, like New York City, Seattle, and Los Angeles. Labor has mostly given up on the south and the middle of the U.S., is that because unions aren’t up to the fight? We have lost Detroit, Michigan and Wisconsin, which was the start of public unions. These GOP government control states, like govenors Synder and Pence have kicked our union butts. In California, labor has lost all of the rural counties, Orange and San Diego counties; and now San Francisco, Sacramento and Los Angeles counties are our last strong holds. It would not take a lot to lose California. California has elected GOP governors before and with our new federal government now in place and with the Koch brothers, et al, and their money it could be done again. We, union workers, could lose it all. They have started on teachers’ union and they are still trying to break the postal workers union by forcing the pension funds to be funded 75 years ahead of pa…

Gig Economy

The Gig con, which sells people on a more flexible job without fixed hours. This sounds enticing to workers fed up with their 9 a.m. to 5 p.m. jobs. Also, to people without jobs, and to people who have part-time jobs, and need more money. Gig jobs fill in many needs, but the rub is that these jobs or most of these jobs don’t pay into Social Security or Social Disability Insurance so when someone hits retirement age there is nothing to fall back on. Most have been told that Social Security will not have money for them because Social Security will be broke. This is a lie and a con job on the workers. Social Security will be OK if the federal government will keep its hands off the money we paid into it. They think it is their piggy bank. Then what if you get sick or injured on the Gig job, there is no healthcare. We know that we are running out of jobs here and worldwide. This is why we need the universal basic income and unions for all. At this time, the federal government estimates…