Punting the Pundits

The people of Detroit have no rights that corporations and their servants in government are bound to respect. Indeed, the emergency manager laws have been used to disenfranchise the residents of every largely Black city and school district in the state, encompassing more than half the Black population of Michigan. (The people of Michigan rejected the legislation in a referendum, but Republican lawmakers simply passed a near-identical measure, as if nothing had happened.)

The 82 percent Black metropolis is under siege, in the Medieval sense of the term. Just as ancient armies deprived towns under siege of food and water, to starve and thirst them into submission, so Kevin Orr has caused the Detroit Water and Sewage Department to cut off tens of thousands of residents, in an escalating trajectory of systematically inflicted mass punishment and pain designed to make life in the city unbearable for a huge proportion of the population.

This is a war against a Black city, and a blueprint for future aggressions aimed at shrinking “chocolate cities” across the nation. What Katrina accomplished through the sudden advent of flood, the corporate strategists in Michigan intend to achieve by emergency dictatorship, privatization and blatantly racist official barbarism.

Dean Baker: Finance in America: Promoting Inequality and Waste

In the crazy years of the housing boom the financial sector was a gigantic cesspool of excess and corruption. There was big money in pushing and packaging fraudulent mortgages. The country paid a huge price for the financial sector’s sleaze.

Unfortunately, because of the Obama administration’s soft-on-crime approach to the bankers who became rich in the process, the industry is still a cesspool of excess and greed. Just to be clear, knowingly issuing and packaging a fraudulent mortgage is a crime, the sort of thing for which people go to jail. But thanks to the political power of the Wall Street, none of them went to jail, and in fact they got to keep the money.

Since the penalties for ripping off people are trivial to non-existent, the financial sector finds this to be a much more profitable line of business than actually providing financial services. The New York Times recently reported on the boom in the subprime market for auto loans featuring many of the same abusive practices we saw in the subprime mortgage market during the bubble years. Lenders are slapping on extra fees, changing the terms after contracts are signed, and doing all the other fun things we have come to expect from leaders in finance. The used car industry was sufficiently powerful that it was able to gain an exemption from being covered by the Consumer Financial Protection Bureau.

We could look to contain these abuses with better regulation, but there is an easier route: competition. Senator Elizabeth Warren and others have proposed re-establishing a postal banking system. The Postal Service used to provide many basic banking services and postal banks still exist in many European countries. It should be a simple enough matter to re-establish such a system, run on a profit-making basis, that would provide basic services to low and moderate income households.

Eugene Robinson: Republican Lawmakers on Strike

The Republican Party’s paralysis on immigration is so complete-and so utterly irresponsible-that President Obama has no choice but to act on his own.

Just say the word immigration and most GOP members of Congress either change the subject or scurry away. Rather than tackle a suite of genuine issues whose obvious solutions would clearly benefit the nation, House Republicans prefer to pass yet more useless bills that seek-and fail-to take away people’s health insurance. [..]

House Republicans, meanwhile, have been spinning their wheels. Boehner is reportedly seeking agreement on a bill that provides only about $1 billion in emergency funding, far less than Obama says is needed. And it seems likely that the House bill-if there is one-will seek to change a 2008 law that prevents the Central American children from being summarily deported.

A little background about that law is in order. The William Wilberforce Trafficking Victims Protection Reauthorization Act-named after a 19th-century English abolitionist-was signed by George W. Bush late in his presidency. Designed to combat human trafficking, the law provides that any child from a country other than Canada or Mexico who enters the United States illegally must be given a full immigration hearing before being deported. The goal is to determine whether the child has a valid claim for asylum.

E. J. Dionne, Jr.: Paul Ryan’s New Clothes

Paul Ryan is counting on this: Because he says he wants to preserve a safety net, speaks with concern about poor people and put out a 73-page report, many will elide over the details of the proposals he made last week in his major anti-poverty speech.

The Wisconsin Republican congressman is certainly aware that one of the biggest political difficulties he and his conservative colleagues face is that many voters suspect them of having far more compassion for a wealthy person paying taxes than for a poor or middle-income person looking for a job.

So Ryan gave a well-crafted address at the American Enterprise Institute in which the centerpiece sounded brand spanking new: the “Opportunity Grant.” The problem is that this “pilot program” amounts to little more than the stale conservative idea of wrapping federal programs into a block grant and shipping them off to the states. The good news is that Ryan only proposes “experiments” involving “a select number of states,” so he would not begin eliminating programs wholesale. Thank God for small favors.