In its bombshell of a report “Discrediting America,” the nonpartisan public policy research group Demos sums up the problem for black and Latinos:
Credit reports largely mirror racial and economic divides, with African Americans and Latinos disproportionately likely to have lower scores. In turn, these communities are more likely to be offered high-priced loan products, which may contribute to more defaults, maintaining and amplifying historical injustice.
Now is the time for citizens, workers, employers, and policymakers to come together once again to rebuild pathways to the middle class, create good jobs with fair pay and decent benefits, and ensure that prosperity is broadly shared for the next generation.
“The middle class is not on the same solid footing that it once was,” said Jennifer Wheary, who cowrote a study on the recession’s impact on middle-class African Americans and Latinos with Brandeis University and the New York think tank Demos.
“If you’re out of work for a long time, you have difficulty paying your bills,” says Amy Traub, coauthor of a June report from the think tank Demos that calls for reform of the credit reporting industry. “If potential employers are looking at credit scores, how on earth are you going to pay your bills then?”
What’s more, the credit bureaus themselves acknowledge there is no proof of a link between a person’s credit report and their suitability as an employee.
"College graduates are less likely to get a job," said Anna Pycior, a spokeswoman for Demos. "If you do manage to get a job, it is getting less and less likely you will be provided with health benefits and you will face the increasingly bleak prospect of a retirement plan.
"All of it while trying to address your $27,000 on average in student debt."
Today, six in ten employers say that they check the credit histories of some or all prospective employees before making final hiring decisions. This traps many jobseekers in a devastating catch-22.
7) Unions are one of the few institutional bulwarks against a corporate dictatorship over all of us: I mentioned their role in the ballot initiative and electoral process, but how are people organized in society? Into factories and electronics assembly shops and big-box stores. They wake up in the morning and - even with strong unions - much of their life is dominated by the company: what time to show up, what time to break (and do we get one?), how fast to work.
But a national debt of more than $14 trillion makes us vulnerable because our economy is the wellspring of our military might, as well as the happiness and self-confidence of a fully employed people.
A study released by Demos, a research and advocacy organization, may shed light on why some working families have credit card debt and others don't.
The study, "Understanding the Debt Difference," is based on survey research of 2,248 low- and middle-income adults between April 2008 and August 2008, and contrasts the demographics, financial habits and economic circumstances of those with credit card debt and those without it.
David Callahan, a senior fellow at the think tank Demos, contends the tax code should differentiate between charities and overtly partisan advocacy organizations. Now neither type of group must reveal the names of its supporters.
This report makes the case that we should create jobs for the unemployed directly and immediately in public employment programs that produce useful goods and services for the public’s benefit.
A picture of the current state of the private retirement system, why this picture bodes ill for the future of retirement in the country, and why that system needs reform.
America's students are facing a serious threat from subprime private loans, and the situation could worsen unless Congress votes to close a potential loophole in the proposed Consumer Financial Protection Agency.
To increase postsecondary success among low- to moderate-income students, we must reform financial aid and provide additional financial supports to help students cover the cost of living expenses.