New Debt Law Punishes the Sick

While bill sponsor Senator Chuck Grassley (R-Iowa) claims that the recent growth of bankruptcies is due to "irresponsible consumerism," Tamara Draut of the economic policy group Demos disagrees. She attributes the growth in bankruptcies - over 1.5 million personal bankruptcies in 2004 - to a weak job market, rising tuitions and healthcare expenses.
Draut also points to abusive practices in the credit card industry as a major contributor to bankruptcy.