As always, Edwards does an excellent job of recognizing the problem before solving it:
American families are working harder to get by. Despite living in the land of opportunity, most families' incomes have stagnated for the past generation. Meanwhile, George Bush's Washington has let corporate interests grow stronger than ever. The result is Two Americas, one struggling to get by and another that has everything it could want. As president, John Edwards will put our government and our economy back in line with our values. Today, he announced his plan to take on abusive lenders, create a new Family Savings and Credit Commission on the side of families who are investing and borrowing, and give families alternatives to high-cost debt.
Now, lets go into some of the solutions that would create One America:
Debt is now a central fact of middle-class life. In Washington, the financial services sector gives more money to politicians and spends more money lobbying than any other sector of the economy. With no limits on interest or fees, loans have become more costly and deceptive. Consumer debt has increased eightfold and foreclosures have skyrocketed in recent years. [Open Secrets, 2006; Federal Reserve Board, 2007]
Now, I am a history major, and I did an independent study on the Great Depression. I found that one of the main reasons for this catastrophe was all the high-interest credit lending that blew up in people's faces. Today, we are disasterously close to that trend once again. Financial Services who are getting fat don't care, but everyday Americans like me and John Edwards do. We simply must curb the amount of high interest debt in the interests of our country.
Edwards goes on to detail these problems further:
Regular Families Are Borrowing to Make Ends Meet: Half of Americans say they live paycheck to paycheck. For most families, wages have not kept up with rising costs for middle-class essentials like health care, housing and child care. More than half of middle-class families do not have enough savings to survive a job loss at 75 percent of their income for even one month. [MetLife, 2003; Warren, 2007; Demos, 2007]
I don't see how anyone can refute this statement. Next:
Credit Card Rates Are Skyrocketing: Interest rates and fees have skyrocketed since rates were deregulated in 1978 and fees in 1996. Penalty interest rates now top 39 percent. One in three accounts is assessed a late fee a year, averaging $35. Deceptive tactics include bait-and-switch marketing on interest rates, penalty rates triggered by unrelated debt under "universal default" clauses, and mailing statements later in an effort to induce more late fees. Credit card debt helped drive increasing numbers of families to the bankruptcy courts. One in 53 households filed for bankruptcy in 2005, more families than got divorced or graduated from college. [NCLC, 2005; Cardweb, 2005]
Anyone who has a credit card knows this. I cancelled mine over two years ago and although I always pay substantially more than the minimum payment, almost two years later I am still paying off a modest balance. Deregulation of this industry is desroying the credit of millions of Americans. These numbers speak for themselves. Edwards continues:
High-Cost Financial Services Exploit Low-Income Families: Financial services companies collect high fees in urban and working-class neighborhoods where there are few mainstream bank branches. Payday loans -- short-term unsecured loans that carry high interest rates -- have ballooned to a $28 billion industry. Annual rates on payday loans typically exceed 400 percent a year. Families pay check-cashing stores as much as $500 a year for services that banks offer for $60. Interest on car title loans quickly exceed the amount borrowed. Low-income tax filers pay more than $1.2 billion a year for the "refund anticipation loans" that are aggressively marketed by tax preparers, even though they could get their refunds from the I.R.S. for free within ten days. [CRL, 2004; Fannie Mae Foundation, 2006; CFA, 2005; NCLC and CFA, 2006]
Again, I think this speaks for itself, and cannot be refuted. Edwards goes on:
Predatory Mortgages Have Led to Millions of Foreclosures: While subprime mortgages are a valuable option for families with poor credit, predatory mortgages have abusive terms that deceive and exploit borrowers. Americans own a smaller share of their homes today than they did a generation ago -- down from 68 percent to 55 percent -- despite the housing boom. Some banks and mortgage companies refinance mortgages with high rates and often deceptive terms. Repeated refinancings create millions in fees for lenders while hurting homeowners. Today's homeowners are more than three times more likely to lose their homes than they were a generation ago. [Demos, 2007; Warren, 2003]
Again, this cannot be refuted. The plain and simple fact is that ordinary Americans are owning less and less of the American dream. It is nice to know that Edwards understands this. The theme: One side of America gets fat, while the rest of us lose ground. Next, Edwards outlines two economies in the two Americas:
There Are Two Economies: The number of Washington lobbyists has tripled in the past decade. Drug and insurance companies write our health care laws, oil and power companies write our energy laws, and banks write our lending laws. It is no coincidence that regular families are finding it harder to get ahead. Working families face less income mobility, more inequality, and more risk.
Speaks for itself again doesn't it? One America who has it all writes all the rules for the other America that doesn't. No wonder working men and women can't get ahead. Edwards then goes on to detail the plight of the middle class:
A Generation without Progress: Middle-class families' income has grown slowly in recent years are largely the result of more hours worked, particularly by women. Men in their thirties today earn less in real terms than men of their fathers' generation did 30 years ago. Only 30 percent of Americans think life will be better for the next generation. [Pew, 2007; Edison Media Research, 2006]
Boy, this rings hauntingly true for me, a man in his thirties. My father worked union for a good wage and benefits and didn't need a college education, I am stuck working service type jobs for low wages and no benefits. I would just love to make it to the middle class. Hopefully, soon the education I am recieving late will help. I am one of the many who worry about how life will be for the next generation.
Next Edwards talks about where our economy is growing:
An Economy Only Growing at the Top: Over the last 20 years, American incomes have grown apart: 40 percent of the income growth in the 1980s and 1990s went the top 1 percent. The top 300,000 individuals now make more than the bottom 150 million. If all Americans were sharing in economic progress as they were nearly thirty years ago, families in the bottom 80 percent would be earning $7,000 more a year. [EPI, 2006; Saez, 2007; Summers, Furman and Bordhoff, 2007]
This again speaks for itself. The rich get richer, the poor get poorer, it may be a stereotype, but unfortunately it is what our country has come to. Edwards realizes this like none other running. Next, he talks about the risk to regular families:
More Risk for Regular Families: Families' hold on the middle class is more precarious than ever. Families in their forties are almost three times more likely to fall into poverty than they were a generation ago. The chances that an average person will experience a 50 percent or larger drop in income more than doubled since the 1970s. [Hacker, 2007]
That is just dumbfounding. Think about that last sentence for just a few seconds. 50% or larger drop in income have doubled in my lifetime!! This is way beyond disgraceful!!
So once again, Edwards has done a very good job of outlining many disturbing problems in our society. That is half the battle. Now for the other half, solving them:
Protect Families from Abusive Financial Products: Families need someone on their side to help them get a fair deal from lenders and investment companies. The current crazy-quilt of five federal regulatory agencies share oversight responsibility but overlook consumer protection in favor of bank profitability. Federal law prevents states from effectively regulating financial products offered to their own citizens from out-of-state banks. Edwards will create a new Family Savings and Credit Commission to protect consumers. It will review all financial services products marketed to families, from six-figure exotic mortgages to $30 bank overdraft charges. It will ensure that terms are reasonable and fairly disclosed and oversee all types of financial institutions, whether chartered under federal or state law. To reduce excess regulatory bureaucracy, Edwards will eliminate the Office of Thrift Supervision. [Warren, 2007]
I don't care if you support Hillary or Gravel, this plan should be music to any true Progressive's ears. Far too long have banks and unscrupulous lenders been allowed to prey upon American families. Edwards shows that not only does he understand this, but has the courage and conviction to solve the problem. His Family Savings and Credit Commission should immediately be adopted by all the candidates and the Democratic platform, and a true Progressive should not support them until they do. Enough said. Edwards then goes on to detail how to prohibit the most abusive practices against American families:
Limiting Abusive Credit Card Practices: Edwards will restore balance in the credit card market through a Borrower's Security Act. The strong new law will require credit card companies to: (1) disclose the true cost of making only minimum payments, (2) restore a 10-day grace period before imposing late fees and penalty rates, (3) apply interest rate increases to future balances only, and (4) end the practice of universal default, where a creditor can change borrowers' terms based on their debt and payments to other creditors. [Demos, 2003; GAO, 2006]
A Borrowers Security Act? What a fantastic idea!! We have plenty of politicians watching out for the lenders, it is refreshing to see that at least one cares about the borrowers. Again I say this should be part of our platform and I challenge every single candidate to come out immediately in favor of this. If they don't, they don't deserve the vote or support of ANY Progressive that is serious about change. Edwards doesn't stop there however, it goes on:
Banning the Most Abusive Payday Loans: Edwards will issue national protections on payday lending, including a limit on the number of loans to an individual each year, a minimum term for each loan of at least 60 days, and a right to repay the loan in installments. He will also strengthen states' ability to enforce their laws by banning the rent-a-charter practice that allows payday lenders to get around state consumer protections. [Center for Responsible Lending, 2004]
Again, this is simply genius, and anyone here who argues against it has wondered into the wrong party. Once more, I call on all our candidates to immediately adopt this idea. Edwards moves right along:
Protecting Homeowners against Predatory Mortgages: Edwards will pass a strong national law to prohibit the worst abuses in the mortgage market, such as steep prepayment penalties, mandatory arbitration clauses, balloon loans, loan flipping, and excessive fees. The law will strengthen underwriting standards to ensure that borrowers receive affordable loans suited to their means and reach non-bank lenders and mortgage brokers. To help the estimated 2.2 million families already facing foreclosure, Edwards will create a Home Rescue Fund to help families get into more affordable mortgages and let families shed excess mortgage debt that exceeds their home's value through bankruptcy. [Center for Responsible Lending, 2007; New America Foundation, 2007]
To millions of American the American dream is working and making enough money to live, and owning your own home. Edwards has already shown how he feels on wages, and now his Home Rescue Fund is a wonderful idea to help millions of people not lose their hold on their little corner of the American Dream. Again I say, every Democratic candidate should adopt this idea, and if they don't they aren't fighting for Progressive change.
Now, we have seen how Edwards would change the rules to make it harder for dishonest lenders to prey on American families, but what alternative does he offer to these unscrupulous lenders? Well, read on my friend!!:
Supporting Alternatives to High-Cost Credit: Because commercial banks rarely make personal loans anymore, high-interest credit cards and payday loans are often the only option for families with unexpected expenses. Edwards will help non-profits and states administer low- or no-interest emergency loans directly to taxpayers. States could choose to use state tax refunds as collateral. Because neighbors have a stake in one another, Edwards will help community groups establish up local revolving loan funds. [Center for Financial Services Innovation, 2006]
Again I think this plan is great and shows Edwards devotion to fairness for all Americans. The other candidates should once again embrace this idea, and if they don't they are not interested in Progressive change. Edwards continues:
Helping Families Save and Get Ahead: Savings are how families cushion themselves against bumps in the road. Edwards will create new "Work Bonds" to help low-income workers save up to $500 a year. He will subsidize banks to offer free savings accounts to the 56 million Americans without them, giving them a way to save and avoid exorbitant check-cashing fees. Finally, he will give taxpayers the option of directly depositing their tax refunds into a retirement account. [Center for Economic Progress, 2004; BEA, 2007; Barr, 2003]
Once more, great ideas all. They show Edwards deep understanding of the problems and offer hope to millions of Americans that they will be able to save and get ahead. It also effectively negates huge check-cashing fees. Finally Edwards adds this:
Modernizing the Community Reinvestment Act: For decades the CRA has led financial institutions to serve millions more families, helping them save. However, lower-income families, people of color, and rural Americans are still underserved and President Bush has weakened the law's requirements. Edwards will modernize this important law by expanding its reach to non-bank finance and mortgage companies, securities firms, insurers, and services in areas without bank branches. The new CRA will reward financial institutions for marketing financial products at fair terms to underserved consumers and collect the data we need to ensure that all Americans have equitable access to financial services. [Woodstock Institute, 2006; NCRC, 2007]
A modernized CRA? Expanding its reach to mortgage companies, securities firms and insurers? Rewarding financial institutions that are fair with consumers? Ensuring that all Americans have equitable access to financial services? Am I the only one who sees the common sense in all this? Once again I call on every Democratic candidate to immediately endorse this plan for progress for all Americans. If they do not, once again I say they are just paying lip-service to our party and America.
So there it is. Another bold new initiative to create real Progressive change in our time from John Edwards. I challenge the supporters of other candidates to not smear Edwards with another post about his house, his haircut, or any of the other garbage they have posted about him, and seriously come out and refute the many ideas proposed in this one policy proposal of many.
John Edwards has shown once again that he simply gets it. No matter who voted for what, when, where, and why in the past, Edwards is the candidate who is fighting for Democratic values and Progressive change and hope for all Americans once again. He is the only candidate who truly offers to build one American for all once again, just like our fore-fathers envisioned.
Join our campaign of hope and change for everyone. The Edwards campaign considers every new supporter a personal victory and offers respect to all. To make these ideas reality, and to truly build one America we need the help of everyone who shares this vision, and I respectfully ask you to join us in changing the world. You can support Edwards and this vision here:
https://secure.actblue.com/...
Best wishes to everyone!!
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