Now that the subprime mortgage industry has collapsed, policymakers fear that Americans are shifting their debt to credit cards with deceptive and exploitive terms.
Cox and Alm need to read a disturbing report by the public policy group Demos and the Institute on Assets and Social Policy at Brandeis University. "By a Thread: The New Experience of America's Middle Class" says that only 31 percent of middle-class families are secure.
A report last year from New York-based think tank Demos found that about one-third of cardholders have paid interest rates in excess of 20%, and that borrowers can incur a "cascade" of penalties and end up in a "trap" of high-cost debt.
The nine states that have already passed election-day registration — also known as EDR — have seen an increase in voter turnout by more than 5 percent throughout the entire state, and more than 10 percent among voters in the demographic of 18 to 24-year-olds, according to statistics provided by Solheim and Morfeld.
While the downturn appeared first with the collapse of a relatively discrete sector of the US market-the so-called "sub-prime" mortgages-it quickly exploded, revealing a gaping hole in the credit system itself. As the former Chief Economist at the US International Trade Commission, Peter Morici, recently wrote, "The subprime meltdown reveals fundamental structural flaws in the US banking system.
According to Demos, a policy research group in New York, "American families are using credit cards to bridge the gaps created by stagnant wages and higher costs of living." Americans owe nearly $900 billion on their credit cards.
To make ends meet, working families have been forced to rely more on credit for basic household necessities. According to a recent study by Demos, from 1989 to 2001 credit card debt in the U.S. nearly tripled, from $238 billion to $692 billion. Add into this equation the lack of affordable housing in almost every region in the country, and an ideal environment was created for predatory mortgage lenders to take advantage of vulnerable working families.
Trouble with electronic voting machines and confusion over identification rules frustrated voters across the country Tuesday, creating delays in Florida, Indiana, Ohio, Pennsylvania and Colorado.
Members of the House Government Operations Committee were like pinballs last week, ricocheting between two walls as they worked to set campaign
contribution limits.
John Kerry's defeat in 2004, assumed by many to be the product of perceived Democratic deficiencies in "moral values," gave this conversation renewed energy. And while some in the "new values" camp pointed to the importance of a specifically religious morality, others urged the Democrats to focus on a secular but morally demanding vision of the common good.
Michael Lipsky and Dianne Stewart, Senior Program Director and Director of Public Works at Demos, argue it takes effective government to restore opportunity. After decades of government-bashing, we need to win back support for what we do in common.
America's way of providing health care is failing, too, Cohn writes, and its problems also won't go away on their own. He spoke with NEWSWEEK's Mary Carmichael about how to cure an ailing system.
The people who get clobbered the most are still the working poor and the lower middle class. But the big change we're seeing now is that vulnerability is expanding up into the middle class more than before.
Ms. Draut, director of the Economic Opportunity Program at Demos, a public policy group in New York, got to the heart of the matter in her recent testimony before a U.S. Senate committee looking into higher education costs.
Cindy Zeldin works for Demos, a nonprofit research and advocacy group. She says even the insured are not immune from this growing trend.
"The direction of health insurance is towards greater individual risk, greater out-of-pocket expenses and those expenses are going right on to credit cards," she says.