Tag Archives: Homelessness

Kushner-Linked Firm and Gig Economy Set to Reap Huge Profits as Mass Evictions Begin

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By Raul Diego

Source: Mint Press News

In 2014, former Blackstone and Goldman Sachs investment banker Ryan Williams got together with his “college buddy,” Joshua Kushner – Jared’s brother – to form a real estate investment platform they called Cadre. Cadre sought to disrupt the real estate industry in the wake of the 2008 subprime mortgage crisis by tinderizing property deals through a tech platform that brought investors and sellers together. According to Williams, whose other investors include George Soros and Peter Theil, Cadre’s mission is “to level the playing field in an industry that is often tilted toward the biggest players” by taking an “offline” industry online and making it “transparent.”

A pre-Covid initiative to capitalize on its platform came in the form of the so-called “opportunity zones,” that Jared Kushner directly lobbied for inclusion in Trump’s 2017 Tax Cut and Jobs Act, billed as a funding mechanism to help poor and distressed communities, which turned into a multi-billion-dollar land heist by the wealthiest Americans, like the Kushner family. The pandemic lockdown protocols forced Cadre to downsize, laying off 25 percent of its workforce in March.

But now, the company is restarting its predatory engines as the home eviction wave forming on the horizon signals potential windfalls for companies like Cadre, that are in a position to profit. It is doing so by launching a pop-up banking operation called “Cadre Cash,” which will try to lure deposits from “investors” by offering a three percent annualized “reward” to finance a new round of land-grabs as millions of Americans teeter on the edge of homelessness and landlords look to unload un-rentable properties.

Another company, Civvl, is tackling a different side of the burgeoning housing crisis in America with its on-demand service model for eviction crews. Just like Uber, the Civvl app lets “frustrated property owners and banks secure foreclosed residential properties” by connecting haulers and the rentier class.

Civvl’s parent company, OnQall, specializes in mobile app platforms that monetize side-hustles like moving, cleaning and lawn care services. The eviction crew app has, predictably, drawn a storm of criticism since Motherboard‘s article on Civvl this past Monday.

“It’s fucked up that there will be struggling working-class people who will be drawn to gigs like furniture-hauling or process-serving,” exclaimed housing activist Helena Duncan, who also pointed out the clear dystopian contours evident in a scenario where working class people are paid to wage economic warfare on fellow working class people. Civvl puts up a disingenuous defense against the earned invectives, comparing itself to Monster.com. “They’re not evicting anyone,” a Civvl spokesperson told Motherboard, “they’re just the help.”

Both Cadre and Civvl are poised to make a killing as eviction moratoriums abate across the country and millions find themselves on one side or another of evictions – tenants forced onto the streets by small landlords who will have little choice but to sell in a depressed market. Only the CDC’s national eviction moratorium, issued three weeks ago, stands in the way of the avalanche of displacement and dispossession at our doorstep. But, even the risks of fines and jail time doesn’t seem to be discouraging companies like OnQall or landlords, in general.

 

Ridiculous loopholes

Cadre, in particular, is at the head of the pack of “disruptive” real estate tech platforms mostly due to the favor it enjoys in the halls of the Trump administration. “Jared was one of the key people early on. And his contributions were critical,” says Cadre CEO Ryan Williams of Jared Kushner, whose stake is worth over $50 Million, according to 2018 SEC filings.

Despite claims that Kushner sold a “substantial portion” of his shares in the company and that the president’s son-in-law has no role in the business endeavor, recent history surrounding the so-called “opportunity zones” of Trump’s Tax bill revealed Cadre’s and Kushner’s central role in a multi-billion dollar land heist by the wealthiest Americans, like the Kushner family.

Paying lip service to the same “diversity” principles Cadre’s African American founder asserts underlie his company’s vision, the more than 200 federally-designated “opportunity zones” for disadvantaged communities that resulted from the legislation, Cadre’s machine-learning and processed census data was simply serving to make a “ridiculous loophole” available to wealthy investors to buy up land at a serious discount.

The bulk of the opportunity zone funding, some of which was set up by William’s former employer and Cadre investor, Goldman Sachs, went to high-end real estate development projects in affluent areas, retail developments and luxury hotels, such as Richard Branson’s 225-room hotel in William’s home state of Louisiana, less than two miles away from one of the poorest parts of New Orleans. The project had been announced by Branson a year before the tax-cut legislation was signed into law, but nevertheless qualified to participate in the opportunity zone program.

 

Picking up the bodies

The housing catastrophe in the United States is barley gathering steam, and while many landlords and property owners still face legal challenges in cases where eviction moratoriums remain in place, the loose patchwork of laws governing property rights across the nation – not to mention foundational ideology – gives companies like Civvl and Cadre the chance to circumvent these and rely on naked power to drive people away from their homes or convince them to sell it to massive real estate concerns, like CBRE or Kushner’s rich buddies.

Civvl is confident that they can take advantage of people’s lack of knowledge about their rights to make money as the eviction middle man. Indeed, the company is betting that municipal and federal authorities will see things their way. “This is something that has to be done,” says a company spokesman. “Listen,” he continued, “if someone is killed on the street, someone needs to go pick their body up.”

 

Related Video:

Stories Of Economic Despair From America’s Worst Economic Downturn Since The Great Depression Of The 1930s

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By Michael Snyder

Source: End of the American Dream

The economic pain that we are witnessing right now is far greater than anything that we witnessed during the last recession.  U.S. GDP declined by 32.9 percent on an annualized basis last quarter, more than 100,000 businesses have permanently shut down since the COVID-19 pandemic first hit the United States, and more than 54 million Americans have filed new claims for unemployment benefits over the last 19 weeks.  Up until just recently, a $600 weekly unemployment “supplement” and a federal moratorium that prevented many evictions had helped to ease the suffering for millions of American families, but both of those measures have now expired.  As a result, a tremendous amount of economic pain which had previously been deferred will now come rushing back with a vengeance.  Millions of American families are no longer going to be able to pay their bills, and experts are warning that we could soon see an “eviction crisis” that is absolutely unprecedented in American history.

48-year-old Thomas Darnell of West Point, Mississippi never thought that he would be in this position.  He had been a factory worker for over 20 years until he lost his job in May, and since then he hasn’t been able to find another.  And then on top of everything else, everyone in his house caught COVID-19…

First, he was furloughed for three weeks in April and then laid off in May. Then things got worse: His entire household of seven, including himself, his wife, three kids and daughter-in-law, along with his baby grandson, contracted coronavirus after they saw their immediate family over the Independence Day weekend.

“I’m tired and shaky. Even after a few weeks, I’m still trying to recover,” Darnell says, who has since been cleared of the virus but still has lingering symptoms.

He is concerned that employers will be scared away by his recent illness, and he is becoming desperate because he is running out of money.

With no health insurance and no paychecks coming in, Darnell and his wife have gotten to the point where they have to make a choice between buying insulin or buying groceries…

He can’t afford health insurance, which has added to his anxiety because he and his wife are both diabetic, he says. Like Bolei, Darnell and his wife have been forced to make a grueling decision between either paying for their medications or keeping food on the table.

“Do we buy insulin or groceries? It’s a hard juggle,” Darnell says. “I’m willing to make less money and start working again to get health insurance, but no one is hiring.”

The weekly $600 unemployment supplements from the federal government had helped to keep them going for a while, but now those payments have ended, and the immediate future is looking quite bleak.

In Richmond, Virginia, a mother of eight named Shamika Rollins wasn’t sure how she was going to make it when her hours as a home health aid were reduced.  Unpaid bills started piling up, and then she got an eviction notice a few weeks ago.  The following comes from CBS News…

Shamika Rollins’ eight children share two bedrooms in Richmond, Virginia. But she’s worried about losing their home after she says she received an eviction notice in June.

“First thing, I panic, and then next thing, I look, and I’m like, I got my kids. And it’s like, okay, now you gotta figure this out,” she told CBS News correspondent Adriana Diaz.

If a miracle does not happen, Rollins and her eight children will soon be out in the street, and this is causing her to have “a lot of sleepless nights”…

“I have a lot of sleepless nights,” Rollins said. “My mind is constantly racing, you know, what’s your next move?”

Sadly, there are millions of other Americans in the exact same position.

In fact, experts are projecting that up to 40 million Americans could be evicted from their homes during this pandemic.

Many small business owners are also facing heartbreaking choices during this downturn.  A restaurant owner in Delaware named Alex Heidenberger “hasn’t paid the mortgage on his home the past four months” as he desperately tries to keep his once profitable restaurants alive…

Heidenberger, who typically draws about $20,000 a month in profit from the restaurant, now receives nothing. He says he hasn’t paid the mortgage on his home the past four months. He served lifeguard duty for a couple of weeks, mostly to help a beach crew depleted by COVID-19 quarantines but also to make some cash.

“I’m working harder than I have ever worked in my life,” he says, adding that he puts in about 80 hours a week at the two restaurants. Yet, “I have no money… This is all I think about. I don’t sleep.”

The COVID-19 pandemic has hit the restaurant industry particularly hard.  Americans are not eating out as regularly as they once did because of the virus, and it is probably going to remain that way for the foreseeable future.

In Massachusetts, a restaurant owner named John Pepper once had eight thriving locations, but at this point only two of them remain open…

John Pepper used a PPP loan to pay employees and reopen four of his eight Boloco restaurants when Massachusetts lifted its shutdown order in early May. But with the money spent and business at the restaurants down as much as 70%, Pepper had to again close two locations. The staff of 125 he had before the virus outbreak is down to 50.

“A lot of this is out of our hands at this point,” Pepper says. “At this moment, I don’t see getting my full payroll back.”

Overall, we are facing a “restaurant apocalypse” in the U.S. that is unprecedented in size and scope.

According to one estimate, we could lose more than a third of all of our restaurants by the end of this calendar year…

As many as 231,000 of the nation’s roughly 660,000 eateries will likely shut down this year, according to an estimate from restaurant consultancy Aaron Allen & Associates provided to Bloomberg News. This will bring the industry’s steady growth to a halt and mark the first time in two decades that U.S. restaurant counts don’t climb. Restaurants have already shed millions of jobs this year, economic data show.

What we are watching is truly horrifying.  So many hopes and dreams went into each one of those restaurants that are shutting down, and countless restaurant owners are going to be completely financially ruined by all of this.

For other Americans, this economic downturn has put their very lives at risk.  In Colorado, 70-year-old Catherine Azar was already dealing with heart problems and diabetes, and now she is in danger of being thrown out into the street…

“It’s hard for me to conceive of someone being willing to put another person out in the street in the middle of a deadly pandemic, and I’m high risk. I’m 70. I have heart issues and I’m diabetic,” Azar said.

Rollins and Azar are just two of the 43 million Americans at risk of eviction in the coming months. For context, about 1 million Americans were evicted in 2010, the year after the Great Recession.

How long do you think that a 70-year-old woman with heart problems and diabetes would last on the street or in a shelter?

And as millions upon millions of Americans get evicted during the months ahead, the shelters are all going to fill up really fast.

America simply was not prepared for an economic downturn of this nature, and the truth is that much bigger challenges are still ahead.

So please do not look down on anyone that needs help right now, because soon you may find yourself in the exact same position.

America’s Despair

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By Vladimir Odintsov

Source: New Eastern Outlook

More and more people in the United States are feeling let down by American capitalism, and the population is being plunged into depression. This was the alarming conclusion reached by two researchers from Princeton University, Anne Case and winner of the Nobel Prize in Economics Angus Deaton. Over the past fifty years, many have been left feeling disillusioned with the American economic model, hyped up extensively within the United States, which even affects life expectancy in America: it has been declining for three consecutive years, a very unusual trend for a developed country. There has been a marked increase in the mortality rate among the white population in particular since the beginning of the new millennium. The number of suicides, as well as deaths from drug and alcohol abuse has increased dramatically.

These are the bleak findings of the research on the situation in the USA conducted by well-known American economists Anne Case and Angus Deaton, who carried out a detailed analysis of the suicide and mortality epidemic that has engulfed America, noting that the United States has been experiencing a “deaths of despair” epidemic since the mid 1990s. The researchers point out that life expectancy for Americans declined for three consecutive years, from 2015 through 2017, something that had not happened since World War One, when the world was gripped by the Spanish influenza pandemic. Among the many different root causes leading to deaths of despair, the study highlights a significant fall in American wages in recent years and a dearth of good jobs, which is weakening core institutions of American life, such as marriage, faith and community. Social spending and housing-related expenses are an increasingly heavy burden for ordinary Americans.

This is despite the fact that the United States had once led the way as the number-one country in the world in terms of reducing mortality rates and increasing life expectancy in the 20th century, and many important discoveries and achievements in medicine have come from the United States.

However, the United States is now leading the way in the opposite direction.

Numerous US researchers believe that the Great Recession which began with the 2008 financial crisis is to blame for today’s greatest woes in America. However, the Great Recession was not what provoked the deaths of despair epidemic among ordinary Americans, although it did lead to the deterioration of living conditions for many people, which provoked anger and division in the United States. The deep-rooted causes of this epidemic can be traced back to a feeling of dissatisfaction with living conditions among Americans which has been there for a long time, and when inequality began to grow, young Americans began realizing that they would never be able to live the lives their parents could afford, while young people without highly professional skills have fallen even further behind.

America’s health care system which has been prescribing more and more opioids is also on the list of “culprits” responsible for the situation America has found itself in today. According to US research, one out of every two unemployed men in the US take painkillers on a daily basis, and these are usually addictive opioids. The national health-care crisis associated with substance abuse has plagued Americans for decades. The opioid epidemic in the United States is largely a failure of regulation and control. This is an area where pharmaceutical companies wield great political influence.

In recent years, there has been a sharp increase in the number of patients reporting pain, difficulties with communication, and depression. Pharmaceutical companies and distributors have taken advantage of people’s growing desperation, seeing an opportunity to promote and ramp up the sales of opioid pain medication such as OxyContin, a legal drug approved by the US Food and Drug Administration even though it is essentially no different to heroin. Between 1999 and 2018, more than 200,000 Americans died of opioid overdoses. Doctors are seeing the increasing amount of harm being caused by these drugs, and have begun prescribing them on a less frequent basis, but these opioids have opened the gateway to illegal drugs: heroin from Mexico, as well as fentanyl from China in more recent years, which is far deadlier. These drugs are causing a huge amount of damage and killing a lot of people. However, when ordinary Americans are faced with hardship and suffering, when there is social upheaval, and people begin to feel that their lives are meaningless, these drugs fill the void, and the number of deaths from drug overdoses goes up, adding to the number of suicides and alcohol-related deaths.

Alcohol-related deaths in American society today are simply ballooning out of control. According to a series of studies, “Alcohol-related deaths” have more than doubled in the last two decades. This is well ahead of the population growth rate over the same period. A study conducted over a twenty-year period found that alcohol had been the cause of more than one million deaths! Apart from people who simply drank themselves “to death”, half of the alcohol-related deaths were due to liver disease and drug overdoses from substances taken together with alcohol. Nine states — Maine, Indiana, Idaho, Montana, New Jersey, New York, North Dakota, Ohio and Virginia — have recorded a significant increase in the number of Americans binge drinking dangerous amounts of alcohol, which can lead to fatal car crashes and other fatal accidents, according to a report recently published by the CDC (The Centers for Disease Control and Prevention). Americans almost all over the country who are trying to “drown their sorrows in alcohol” are already addicted to these hard drinks, and have began drinking more heavily and more often, with a 12% increase seen in the last five years alone.

Historically, there have always been more “deaths of despair” among men than women. However, a study published in the journal Alcoholism: Clinical and Experimental Research, found that the largest annual increase in alcohol-related deaths in recent years was seen among non-Hispanic white women.

But these are not the only scourges of today’s American society. According to the January report published by the National Center for Homeless Education funded by the US Department of Education, over 1.5 million schoolchildren experienced homelessness in the 2017-2018 school year. 100,000 (7%) of these homeless schoolchildren spent the night in the open air and slept wherever they could, 7% slept in motels, 12% stayed in homeless shelters, and 74% stayed at a friend’s. And these are only the most modest estimates, but take figures from the American Institutes for Research, for example, which recorded that 2.5 million children had experienced homelessness in the year 2013. This could almost be considered some sort of historical “record”, with one in thirty American children experiencing homelessness! Criminal gangs, drug dealers, pimps and pedophiles are waiting for these children on the streets. In this context, does it really come as any surprise that crime is on the rise in the United States (especially juvenile crime)?

This grim situation in the US is hardly surprising if you look at the draft $4.8 trillion federal budget that US President Donald Trump is going to propose and use to pave the way for his re-election. After all, this budget is a continuation of a trend that has already been observed in federal budgets drafted in the United States, as we’ll see more big safety-net cuts and increased spending on defense, which even the Wall Street Journal has called out.

All of the Trump administration’s wall-to-wall “America First!” slogans cannot hide the glaringly ugly face of American reality we can see today.

This holiday season, American workers have little to celebrate

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By Danny Haiphong

Source: Intrepid Report

Every year, much of the U.S. population celebrates Thanksgiving and Christmas to show appreciation for their families and friends. Thanksgiving normalizes the colonial origins of the United States and erases the brutality of the English settlers who massacred indigenous people to prepare the land for capitalist accumulation. Christmas is the annual holiday of big business. On no other day are workers more encouraged to spend their wages on the latest consumer product to gift to their loved ones. The holidays bring with them a deep pressure to be merry. Yet on this holiday season, workers have little to celebrate.

A new study by Brookings Institution provides a snapshot into the devastation wrought on the working class by American capitalism. Forty-four percent of all workers between the ages of 18-64 are employed in low-wage sectors and earn an average of $16 or less per hour. The study excluded workers who logged over 98 hours per week over the last year as well as certain sections of the college-educated population such as those living in dormitories and attending graduate school. Had these groups of workers been counted, the percentage of low-wage workers out of the total population would likely be even higher. This verifies prior datasets which proved that around half of the U.S. population makes less $30,000 per year.

The growing poverty of the American worker is a major contributor to the growth of toxic stress and mental illness. Half of all U.S. adults will develop a mental illness over the course of their life. Serious mental health conditions afflict nearly ten million people in the United States and over a quarter of these individuals live below the official poverty line. Suicide rates are at a thirty-year high. An obvious connection exists between rising poverty and the worsening mental health of the American worker.

Workers in the United States see no future under the current stage of capitalism. They struggle to afford rent in a nation where the federal minimum wage cannot pay for a two-bedroom apartment anywhere in the country. They indebt themselves in the trillions to attend college and obtain healthcare. They work in redundant, service sector jobs where hours are long and mistreatment, abuse, and injury are all too common. The American worker is increasingly alienated from themselves and each other. Union density rates in the U.S. have fallen to just ten percent of all workers since World War II.

The shrinking labor movement has followed a larger trend in U.S. society. Privatization has decimated the public sector. Workers have few places to socially convene independent of the machinations of consumer capitalism. Workers are competing for fewer jobs, most of which are not worth competing for at all. Homelessness, mass incarceration, and endless war remind workers that they can easily be turned into cannon fodder if they step out of line. In such an environment, addiction and self-destruction is encouraged while organizing for justice is discouraged.

Economic insecurity and alienation place more pressure on families to make up for stagnant wages and exorbitant amounts of debt. More young workers are living with their parents than at any other time in the last one hundred years. Older workers are not only forestalling retirement but also finding themselves without family or community support as siblings and adult children chase the highest paying jobs and the lowest rents and property values. Couples feel compelled to remain in toxic relationships for economic reasons. A strong link exists between domestic violence and poverty.

Contrary to the messages in Hallmark cards or the corporate media, the holidays are far from a time of celebration. Many workers view the holiday season as a harsh reminder of the loss, alienation, and despair that they’ve experienced over the course of their lives. Holidays place added pressure on workers to dismiss the ills of capitalism and the personal stressors associated with them. It should come as no surprise that most workers already struggling with mental health conditions report that the holidays only worsen their symptoms. Instead of embracing humanity, the holidays encourage workers to embrace rampant commercialism and the nuclear family.

To break from a culture steeped in the profit motive, workers will need to create their own traditions based upon solidarity and social transformation. Not everything about the holidays needs to be thrown out in the process. Spending time with family and friends during a day off from work can and should be rewarding to the psyche and to society. The conditions of capitalism prevent the holidays from serving a social purpose. Holidays under capitalism breed despair but brand themselves as moments of pure joy.

While workers may have little to celebrate this holiday season, there are reasons for the working class to be optimistic in the years to come. Teachers in cities such as Chicago and Los Angeles have won key gains in 2019 by using the most powerful weapon at the disposal of organized labor: the strike. At the beginning of the year, the Los Angeles Teachers won smaller class sizes and more support staff. The Chicago Teachers Union massively increased the number of nurses in the school district by forcing the city to hire nurses rather than continue the inefficient and harmful practice of hiring private contractors. The UAW’s strike of General Motors (GM) earlier this Fall made global headlines even if it was unable to win every demand that the workers put forth. These strikes reflect a growth of class consciousness in the United States. The continued growth of class consciousness will be critical toward building the kind of struggle capable of bringing about massive political and economic change for the working class.

Furthermore, workers around the world are leading the way in the struggle against class inequality and foreign-sponsored wars. Massive protests in Haiti, Chile, Honduras, and Algeria are just a few of many occurring around the globe. The protests have mainly targeted repressive U.S.-backed governments and their neoliberal economic agenda. China is leading the world in poverty reduction. Cuba is the most sustainably developed nation in the world. A vast majority of workers around the world want to see an end of the miseries imposed by global capital and are actively fighting to make their demands a reality.

The question is whether workers in the United States can decisively break from the despair, the racism, and the extreme alienation shaping their current condition. Being determines consciousness. At this moment, the neoliberal race to the bottom has rendered most workers too fearful, disorganized, and full of self-blame to fight back. However, millions of workers have rallied behind the political campaign of Bernie Sanders. Labor unrest is likely to continue as neither political party appears interested in implementing Bernie Sanders’ social democratic agenda. Workers in the United States are in desperate need of a revived labor movement to quench their thirst for a better life. Putting our energies into building this movement will go a long way toward shaking the Holiday Blues and giving workers something to really celebrate: a society run by workers, in the interests of workers.

Media Just Can’t Stop Presenting Horrifying Stories as ‘Uplifting’ Perseverance Porn

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By Alan Macleod

Source: FAIR.org

“THIS IS AWESOME!” That’s how Fox 5 DC described its story (5/28/19) about Logan Moore of Cedartown, GA, a disabled two-year-old whose parents were unable to afford to buy him a walker, so employees at Home Depot fashioned one together themselves for him.

“No… it’s not awesome at all. It’s a painful indictment of the state of healthcare in America,” reads the first comment under this tweet by Fox 5 DC (5/28/19).

The story closely resembles another recent CNN report (4/1/19): “A Two-Year-Old Couldn’t Walk on His Own. So a High School Robotics Team Built Him a Customized Toy Car.” That piece noted how Minnesotan toddler Cillian Jackson couldn’t walk due to a genetic condition, and how his parents couldn’t afford treatment. It described the ingenuity of the school children who built him a car, and Cillian’s new found freedom, but did not explore why a baby with a disability had been abandoned by US society.

The clear implication in these stories was that those children would have been left permanently unable to move if not for the help of underpaid employees or the kindness of other children. How many disabled American children with poor parents were not so lucky? The articles did not ask. Instead, they were presented as “uplifting” human interest pieces.

Cillian’s story is part of CNN’s Good Stuff series, which asks its readers:

Want more inspiring, positive news? Sign up for The Good Stuff, a newsletter for the good in life. It will brighten your inbox every Saturday morning.

Unfortunately, these stories are part of a popular trend of unintentionally horrifying “uplifting” news, which we at FAIR have catalogued before (FAIR.org, 8/3/17; 3/25/19), where out-of-touch corporate media give us supposedly charming, wholesome and positive news that actually, upon even minimal retrospection, reveals the dire conditions of late capitalism so many Americans now live under, and makes you feel worse after reading it.

A lot of these stories involve mothers and the extremely difficult circumstances of raising children in the US while poor. CNN’s “feel good” story (8/24/18) about a teacher sitting in a car with her student’s baby so the new mom could attend a job fair raised far more questions than it asked (which was zero). Why is there so little public childcare in the US? Should a new mother really need to immediately find a job so badly? Is this good for infants’ development?

On a similar subject, Good Morning America (7/17/18) describes the “trendy” new baby-shower gift of donating your pregnant co-worker your days off to give her maternity leave. Every country in the world except the US and Papua New Guinea guarantees paid maternity leave, meaning the trend is unlikely to catch on abroad.

Donated maternity leave is a “trendy” gift you don’t need—unless you live in the United States or Papua New Guinea (Good Morning America, 7/17/18).

Many outlets (CBS, 5/20/16; Huffington Post, 8/6/16; People, 4/11/16) cheerfully reported on how one man did at least 15 years of backbreaking labor as a night shift janitor at Boston College so his children could attend for free. But none even mentioned that if he lived in nearly any country in Western Europe, this wouldn’t have been necessary, as university there is free or virtually free to attend.

In fact, rather than discussing ballooning tuition costs, Yahoo! (11/15/17) used the story to take jabs at disloyal millennials:

Millennials move from job to job in order to climb the ladder…. For baby boomers and other generations…loyalty and dedication to a single company or career drove, and still drives, much of their working lives.

Any of these stories could have been used to explore the pressing social and economic realities of being poor in the United States, and having to work for things considered fundamental rights in other countries. But instead they are presented as uplifting features, something only possible if we unquestionably accept the political and economic system.

Kids Do the Darndest Things

Many of what Think Progress (8/2/18) labels “feel-good feel-bad stories” involve children doing things they wouldn’t have to in any reasonable society. CBS invites us to enjoy an account of a boy selling his Xbox computer to help his (single) mom (4/2/19), and another repairing his town’s ravaged roads himself (4/12/19). The Hill (6/10/19), meanwhile, describes a nine-year-old saving his pocket money to pay off his school friends’ “lunch debts.”

“Hardships were never an excuse for Moseley,” CNN (5/22/19) reports—as they are, implicitly, for homeless teens who aren’t offered millions in scholarships.

NBC (5/22/19) likewise shared the story of homeless Tennessee teen Tupac Moseley graduating high school as a valedictorian and earning many college scholarships, something that was widely reported (BBC, 5/22/19; Newsweek, 5/21/19; Business Insider, 5/21/19). NBC matter-of-factly noted that after his father died, Moseley’s family’s home was foreclosed and they were on the streets, accepting this situation without comment. This was still among the most critical of the reports, however, as many did not even describe why a child in the richest society in history became homeless. CNN’s report (5/22/19), for example, did not explain the background circumstances, let alone comment on them, and frames the story with the sentence, “Hardships were never an excuse for Moseley.”

This sentence is telling: To corporate media, even the trauma of losing a parent and being forced onto the streets is merely an excuse, not a cause for poor grades. The implication is that poor housing, a lack of an adequate safety net, underfunded schools and a decimated public education system are simply excuses from bellyaching lazy people as to why they did not attend the private Boston University (at over $54,000 per year tuition), like the article’s author did.

“No excuses” is a common phrase in “perseverance porn” stories. For example, Today (2/20/17) used it in the headline of a story about a Texas man who is forced to walk 15 miles to work every day. It reveals the ultimate bootstrap ideology of the media, where societal factors are irrelevant and everyone is where they are on merit.

Thus Moseley’s story is effectively weaponized by CNN against anyone who would question the system. Terrible work conditions? No excuses! Homeless? Stop complaining!

In case you thought homeless children were something of an aberration in America, CNN (7/2/19) also recently ran a story about how over 100 homeless children graduated high school in New York City this year alone—again without comment on what this says about US society.

Another reprehensible story treated as heroic by media was that of a Michigan mother who had to quit her job to look after her terminally ill son, who died of leukemia. She could not afford a headstone, so his best friend, 12-year-old Kaleb Klakulak, worked many jobs to attempt to pay for one. Many media outlets (e.g., Associated Press, 12/8/18; Fox News, 12/9/18; NBC Chicago, 12/12/18) celebrated Kaleb’s spirit, but none asked why children are  performing hard, outdoor labor through a Michigan winter so other children can have adequate burials. Such reporting implicitly normalizes this situation, and the system that allows it to happen.

“Sweet” Stories

A common media trope is presenting kids selling lemonade as cute,  sweet stories, no matter how horrifying or depressing the reason, including to pay off school lunch debts (Yahoo! News, 5/21/19; MSN, 5/22/19), or to raise money for their baby brother’s medical treatment (New York Post, 5/28/18; CBS, 5/29/18) or their mother’s chemotherapy (KTSM El Paso, 8/4/18).

Such stories (CBS, 5/29/18) rarely if ever ask why a baby with a life-threatening illness is forced to rely on his nine-year-old brother’s selling lemonade to pay for treatment.

Or how about the story of a New Mexico girl selling lemonade trying to fund her mother’s kidney transplant? People magazine (5/9/18) applauded her resolve, and local radio described it as “heartwarming” that she had raised over $1,000. The massive problem is a kidney transplant in America can cost over $400,000. To anyone with a heart, what this story actually represents is the desperate struggle of a child trying in vain to save her dying mother. Worse still is the fact that if she lived in Sweden, Spain or Saskatchewan, she would be given a kidney free of charge and without question.

Any of the numerous other outlets (ABC, 4/30/18; Good Morning America, 5/1/18; Albuquerque Journal, 4/30/18) that picked it up could have used the story to discuss the dysfunctional healthcare system that is the leading cause of bankruptcy in the country, while producing some of the worst health outcomes in the developed world, or to scrutinize how corporate healthcare gouges the sickest and most vulnerable Americans, including children. Surely the most basic function of government should be to prevent its citizens from needlessly dying? Not if you wholly accept the tenets of neoliberalism, where education, housing and healthcare are not basic, inalienable human rights, but commodities to be bought and sold and bargained for on the market.

To be clear, while we can admire the never-say-die attitude of those in tough conditions, this is no substitute for guaranteed public programs to help those in dire need. The problem with perseverance porn is not the brave subjects of the articles, but the lack of any journalistic scrutiny examining the failings of society that placed them in such desperate circumstances to begin with.

What these articles highlight so clearly is not only the grim, inhuman and unnecessary conditions so many Americans are forced to live under, but the degree to which mainstream corporate journalists have completely internalized them as unremarkable, inevitable facts of life, rather than the consequences of decades of neoliberal policies that have robbed Americans of dignity and basic human rights. Because corporate media wholly accept and promote neoliberal, free-market doctrine, they are unable to see how what they see as “awesome” is actually a manifestation of late-capitalist dystopia.

The Evidence Pours In: Poverty Is Getting Much Worse In America

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By Paul Buchheit

Source: Occupy.com

A White House report recently proclaimed that the “War on Poverty is largely over and a success.” United Nations Ambassador Nikki Haley said it was “ridiculous for the United Nations to examine poverty in America.”

Well-positioned Americans must talk like this, of course, because admitting the debilitating state of poverty in America might provoke feelings of guilt for 35 years of oppressive economic policies. Wealthier people need to take an honest look at the facts. They need to face reality as it sadly exists in America today.

1 in 7 Americans is Part of the World’s Poorest 10%

According to the Credit Suisse 2018 Global Wealth Databook, 34 million American adults are among the world’s poorest 10%. How is that possible? In a word, debt. In more excruciating words: stifling, misery-inducing, deadly amounts of debt for the poorest Americans. And it goes beyond dollars to the “deaths of despair” caused by the stresses of inferior health care coverage, stagnating incomes, and out-of-control inequality.

Numerous sources report on the rising debt for the poor half of America, especially for the lowest income group, and largely because of health care and education costs. Since 2008 consumer debt has risen almost 50 percent. The percentage of families with more debt than savings is higher now than at any time since 1962.

It could be argued that Scandinavian countries face the same degrees of debt as Americans. But far less of the debt is for health and education costs. And the Scandinavian safety net is renowned for its generous provisions for all citizens.

Half of us Are in or Near Poverty

$1 in expenses twenty years ago is now $1.25. $1 in earnings twenty years ago is now still $1.

More and more Americans are facing financial difficulty. Estimates of adults living from paycheck to paycheck range from half to 60 percent to 78 percent. Any sign of a recession would be devastating for most of us.

It’s estimated that a typical U.S. household needs about $60,000 annually to meet all expenses. That’s only manageable if two adults are working full-time for $15 per hour. Beyond that, little cushion exists. No American adult in the bottom 40% has more than $31,124 in total wealth, including house and car and savings (Table 3-4).

Booming Economy, Low Unemployment, and Other Deceptions

While 1 in 7 Americans is part of the world’s poorest 10%, nearly 3 in 7 Americans are part of the world’s richest 10%. The economy is booming for THEM. Yet the Wall Street Journal has the arrogance to claim that “Americans traditionally left behind…are reaping the benefits..”

How about the “jobs for everyone” fantasy? The official unemployment rate, according to the Bureau of Labor Statistics (BLS) itself, is based on employees “who did any work for pay or profit during the survey reference week.” The BLS workforce includes contingent and alternative employment arrangements that make up about 10% of the workforce. It includes part-time workers (even one hour a week!), who make up about 16% of the workforce. And, inexplicably, it fails to count as unemployed those who have given up looking for work – 4% more Americans than in the year 2000.

Many of today’s ‘gig’ jobs don’t pay a living wage, and most have no retirement or health benefits, no job security, no government regulations backing them, and usually a longer work day, with many people putting in 10- to 12-hour days for $13 per hour or less. According to a New York Times report, “41.7 million laborers – nearly a third of the American work force – earn less than $12 an hour, and almost none of their employers offer health insurance.”

Safety Net Failures

While it’s true that the U.S. spends a greater percentage of its GDP on social safety net programs than developing countries, Americans generally have to face much higher costs for housing, heating, transportation, child care, and other basic expenses.

Beyond this, there are significant shortcomings in American social protections, as pointed out by the UN. These include the “shockingly high number of children living in poverty” and the “reliance on criminalization to conceal the underlying poverty problem.” Furthermore, with the call for work requirements comes the realization that the job market for the poorest Americans is “extraordinarily limited.”

Poverty: Not Just a Number

Poverty is living without health care, and choosing the life-threatening alternative of opioid painkillers. Poverty is the stress of overwhelming debt; the steady decline of jobs that pay enough to support a family; the inability to afford a move to a desired neighborhood; the deadening impact of inequality on physical and mental well-being.

The United Nations describes America as a nation near the bottom of the developed world in safety net support and economic mobility, with its citizens living “shorter and sicker lives compared to those living in all other rich democracies,” with the highest infant mortality rate in the developed world, the world’s highest incarceration rate, and the highest obesity levels.

Low-income Americans are often surrounded by food deserts, with insufficient access to clean water and sanitation, and with the pollution levels of third-world countries. The poorest among us are even susceptible – unbelievably – to rare tropical diseases and once-eradicated scourges like hookworm.

The extreme levels of American poverty and inequality are ripping apart once-interdependent communities with mental health and homelessness problems, and with a surge in drug and alcohol and suicide“deaths of despair.”

Part of the definition of poverty is “the state of being inferior in quality.” As one of the most unequal nations in the entire world, America is also, in many ways, one of the most poverty-stricken.

National (In)Security In the United States of Inequality

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By Rajan Menon

Source: Unz Review

So effectively has the Beltway establishment captured the concept of national security that, for most of us, it automatically conjures up images of terrorist groups, cyber warriors, or “rogue states.” To ward off such foes, the United States maintains a historically unprecedented constellation of military bases abroad and, since 9/11, has waged wars in Afghanistan, Iraq, Syria, Libya, and elsewhere that have gobbled up nearly $4.8 trillion. The 2018 Pentagon budget already totals $647 billion — four times what China, second in global military spending, shells out and more than the next 12 countries combined, seven of them American allies. For good measure, Donald Trump has added an additional $200 billion to projected defense expenditures through 2019.

Yet to hear the hawks tell it, the United States has never been less secure. So much for bang for the buck.

For millions of Americans, however, the greatest threat to their day-to-day security isn’t terrorism or North Korea, Iran, Russia, or China. It’s internal — and economic. That’s particularly true for the 12.7% of Americans (43.1 million of them) classified as poor by the government’s criteria: an income below $12,140 for a one-person household, $16,460 for a family of two, and so on… until you get to the princely sum of $42,380 for a family of eight.

Savings aren’t much help either: a third of Americans have no savings at all and another third have less than $1,000 in the bank. Little wonder that families struggling to cover the cost of food alone increased from 11% (36 million) in 2007 to 14% (48 million) in 2014.

The Working Poor

Unemployment can certainly contribute to being poor, but millions of Americans endure poverty when they have full-time jobs or even hold down more than one job. The latest figures from the Bureau of Labor Statistics show that there are 8.6 million“working poor,” defined by the government as people who live below the poverty line despite being employed at least 27 weeks a year. Their economic insecurity doesn’t register in our society, partly because working and being poor don’t seem to go together in the minds of many Americans — and unemployment has fallen reasonably steadily. After approaching 10% in 2009, it’s now at only 4%.

Help from the government? Bill Clinton’s 1996 welfare “reform” program , concocted in partnership with congressional Republicans, imposed time limits on government assistance, while tightening eligibility criteria for it. So, as Kathryn Edin and Luke Shaefer show in their disturbing book, $2.00 a Day: Living on Almost Nothing in America, many who desperately need help don’t even bother to apply. And things will only get worse in the age of Trump. His 2019 budget includes deep cuts in a raftof anti-poverty programs.

Anyone seeking a visceral sense of the hardships such Americans endure should read Barbara Ehrenreich’s 2001 book Nickel and Dimed: On (Not) Getting By in America. It’s a gripping account of what she learned when, posing as a “homemaker” with no special skills, she worked for two years in various low-wage jobs, relying solely on her earnings to support herself. The book brims with stories about people who had jobs but, out of necessity, slept in rent-by-the-week fleabag motels, flophouses, or even in their cars, subsisting on vending machine snacks for lunch, hot dogs and instant noodles for dinner , and forgoing basic dental care or health checkups. Those who managed to get permanent housing would choose poor, low-rent neighborhoods close to work because they often couldn’t afford a car. To maintain even such a barebones lifestyle, many worked more than one job.

Though politicians prattle on about how times have changed for the better, Ehrenreich’s book still provides a remarkably accurate picture of America’s working poor. Over the past decade the proportion of people who exhausted their monthly paychecks just to pay for life’s essentials actually increased from 31% to 38%. In 2013, 71% of the families that had children and used food pantries run by Feeding America, the largest private organization helping the hungry, included at least one person who had worked during the previous year. And in America’s big cities, chiefly because of a widening gap between rent and wages, thousands of working poor remain homeless, sleeping in shelters, on the streets, or in their vehicles, sometimes along with their families. In New York City, no outlier when it comes to homelessness among the working poor, in a third of the families with children that use homeless shelters at least one adult held a job.

The Wages of Poverty

The working poor cluster in certain occupations. They are salespeople in retail stores, servers or preparers of fast food, custodial staff, hotel workers, and caregivers for children or the elderly. Many make less than $10 an hour and lack any leverage, union or otherwise, to press for raises. In fact, the percentage of unionized workers in such jobs remains in the single digits — and in retail and food preparation, it’s under 4.5%. That’s hardly surprising, given that private sector union membership has fallen by 50% since 1983 to only 6.7% of the workforce.

Low-wage employers like it that way and — Walmart being the poster child for this — work diligently to make it ever harder for employees to join unions. As a result, they rarely find themselves under any real pressure to increase wages, which, adjusted for inflation, have stood still or even decreased since the late 1970s. When employment is “at-will,” workers may be fired or the terms of their work amended on the whim of a company and without the slightest explanation. Walmart announced this year that it would hike its hourly wage to $11 and that’s welcome news. But this had nothing to do with collective bargaining; it was a response to the drop in the unemployment rate, cash flows from the Trump tax cut for corporations (which saved Walmart as much as $2 billion), an increase in minimum wages in a number of states, and pay increases by an arch competitor, Target. It was also accompanied by the shutdown of 63 of Walmart’s Sam’s Club stores, which meant layoffs for 10,000 workers. In short, the balance of power almost always favors the employer, seldom the employee.

As a result, though the United States has a per-capita income of $59,500 and is among the wealthiest countries in the world, 12.7% of Americans (that’s 43.1 million people), officially are impoverished. And that’s generally considered a significant undercount. The Census Bureau establishes the poverty rate by figuring out an annual no-frills family food budget, multiplying it by three, adjusting it for household size, and pegging it to the Consumer Price Index. That, many economists believe, is a woefully inadequate way of estimating poverty. Food prices haven’t risen dramatically over the past 20 years, but the cost of other necessities like medical care (especially if you lack insurance) and housing have: 10.5% and 11.8% respectively between 2013 and 2017 compared to an only 5.5% increase for food.

Include housing and medical expenses in the equation and you get the Supplementary Poverty Measure (SPM), published by the Census Bureau since 2011. It reveals that a larger number of Americans are poor: 14% or 45 million in 2016.

Dismal Data

For a fuller picture of American (in)security, however, it’s necessary to delve deeper into the relevant data, starting with hourly wages, which are the way more than 58%of adult workers are paid. The good news: only 1.8 million, or 2.3% of them, subsist at or below minimum wage. The not-so-good news: one-third of all workers earn less than $12 an hour and 42% earn less than $15. That’s $24,960 and $31,200 a year. Imagine raising a family on such incomes, figuring in the cost of food, rent, childcare, car payments (since a car is often a necessity simply to get to a job in a country with inadequate public transportation), and medical costs.

The problem facing the working poor isn’t just low wages, but the widening gap between wages and rising prices. The government has increased the hourly federal minimum wage more than 20 times since it was set at 25 cents under the 1938 Fair Labor Standards Act. Between 2007 and 2009 it rose to $7.25, but over the past decade that sum lost nearly 10% of its purchasing power to inflation, which means that, in 2018, someone would have to work 41 additional days to make the equivalent of the 2009 minimum wage.

Workers in the lowest 20% have lost the most ground, their inflation-adjusted wages falling by nearly 1% between 1979 and 2016, compared to a 24.7% increase for the top 20%. This can’t be explained by lackluster productivity since, between 1985 and 2015, it outstripped pay raises, often substantially, in every economic sector except mining.

Yes, states can mandate higher minimum wages and 29 have, but 21 have not, leaving many low-wage workers struggling to cover the costs of two essentials in particular: health care and housing.

Even when it comes to jobs that offer health insurance, employers have been shifting ever more of its cost onto their workers through higher deductibles and out-of-pocket expenses, as well as by requiring them to cover more of the premiums. The percentage of workers who paid at least 10% of their earnings to cover such costs — not counting premiums — doubled between 2003 and 2014.

This helps explain why, according to the Bureau of Labor Statistics, only 11% of workers in the bottom 10% of wage earners even enrolled in workplace healthcare plans in 2016 (compared to 72% in the top 10%). As a restaurant server who makes $2.13 an hour before tips — and whose husband earns $9 an hour at Walmart — put it, after paying the rent, “it’s either put food in the house or buy insurance.”

The Affordable Care Act, or ACA (aka Obamacare), provided subsidies to help people with low incomes cover the cost of insurance premiums, but workers with employer-supplied healthcare, no matter how low their wages, weren’t covered by it. Now, of course, President Trump, congressional Republicans, and a Supreme Court in which right-wing justices are going to be even more influential will be intent on poleaxing the ACA.

It’s housing, though, that takes the biggest bite out of the paychecks of low-wage workers. The majority of them are renters. Ownership remains for many a pipe dream. According to a Harvard study, between 2001 and 2016, renters who made $30,000-$50,000 a year and paid more than a third of their earnings to landlords (the threshold for qualifying as “rent burdened”) increased from 37% to 50%. For those making only $15,000, that figure rose to 83%.

In other words, in an ever more unequal America, the number of low-income workers struggling to pay their rent has surged. As the Harvard analysis shows, this is, in part, because the number of affluent renters (with incomes of $100,000 or more) has leapt and, in city after city, they’re driving the demand for, and building of, new rental units. As a result, the high-end share of new rental construction soared from a third to nearly two-thirds of all units between 2001 and 2016. Not surprisingly, new low-income rental units dropped from two-fifths to one-fifth of the total and, as the pressure on renters rose, so did rents for even those modest dwellings. On top of that, in places like New York City, where demand from the wealthy shapes the housing market, landlords have found ways — some within the law, others not — to get rid of low-income tenants.

Public housing and housing vouchers are supposed to make housing affordable to low-income households, but the supply of public housing hasn’t remotely matched demand. Consequently, waiting lists are long and people in need languish for years before getting a shot — if they ever do. Only a quarter of those who qualify for such assistance receive it. As for those vouchers, getting them is hard to begin with because of the massive mismatch between available funding for the program and the demand for the help it provides. And then come the other challenges: finding landlords willing to accept vouchers or rentals that are reasonably close to work and not in neighborhoods euphemistically labelled “distressed.”

The bottom line: more than 75% of “at-risk” renters (those for whom the cost of rent exceeds 30% or more of their earnings) do not receive assistance from the government. The real “risk” for them is becoming homeless, which means relying on shelters or family and friends willing to take them in.

President Trump’s proposed budget cuts will make life even harder for low-income workers seeking affordable housing. His 2019 budget proposal slashes $6.8 billion(14.2%) from the resources of the Department of Housing and Urban Development’s (HUD) by, among other things, scrapping housing vouchers and assistance to low-income families struggling to pay heating bills. The president also seeks to slash funds for the upkeep of public housing by nearly 50%. In addition, the deficits that his rich-come-first tax “reform” bill is virtually guaranteed to produce will undoubtedly set the stage for yet more cuts in the future. In other words, in what’s becoming the United States of Inequality, the very phrases “low-income workers” and “affordable housing” have ceased to go together.

None of this seems to have troubled HUD Secretary Ben Carson who happily ordered a $31,000 dining room set for his office suite at the taxpayers’ expense, even as he visited new public housing units to make sure that they weren’t too comfortable (lest the poor settle in for long stays). Carson has declared that it’s time to stop believing the problems of this society can be fixed merely by having the government throw extra money at them — unless, apparently, the dining room accoutrements of superbureaucrats aren’t up to snuff.

Money Talks

The levels of poverty and economic inequality that prevail in America are not intrinsic to either capitalism or globalization. Most other wealthy market economies in the 36-nation Organization for Economic Cooperation and Development (OECD) have done far better than the United States in reducing them without sacrificing innovation or creating government-run economies.

Take the poverty gap, which the OECD defines as the difference between a country’s official poverty line and the average income of those who fall below it. The United States has the second largest poverty gap among wealthy countries; only Italy does worse.

Child poverty? In the World Economic Forum’s ranking of 41 countries — from best to worst — the U.S. placed 35th. Child poverty has declined in the United States since 2010, but a Columbia University report estimates that 19% of American kids (13.7 million) nevertheless lived in families with incomes below the official poverty line in 2016. If you add in the number of kids in low-income households, that number increases to 41%.

As for infant mortality, according to the government’s own Centers for Disease Control, the U.S., with 6.1 deaths per 1,000 live births, has the absolute worst record among wealthy countries. (Finland and Japan do best with 2.3.)

And when it comes to the distribution of wealth, among the OECD countries only Turkey, Chile, and Mexico do worse than the U.S.

It’s time to rethink the American national security state with its annual trillion-dollar budget. For tens of millions of Americans, the source of deep workaday insecurity isn’t the standard roster of foreign enemies, but an ever-more entrenched system of inequality, still growing, that stacks the political deck against the least well-off Americans. They lack the bucks to hire big-time lobbyists. They can’t write lavish checks to candidates running for public office or fund PACs. They have no way of manipulating the myriad influence-generating networks that the elite uses to shape taxation and spending policies. They are up against a system in which money truly does talk — and that’s the voice they don’t have. Welcome to the United States of Inequality.

 

Rajan Menon, a TomDispatch regular, is the Anne and Bernard Spitzer Professor of International Relations at the Powell School, City College of New York, and Senior Research Fellow at Columbia University’s Saltzman Institute of War and Peace Studies. He is the author, most recently, of The Conceit of Humanitarian Intervention 

Saturday Matinee: American Nomads

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Synopsis from Top Documentary Films

Beneath the America we think we know lies a nation hidden from view – a nomadic nation, living on the roads, the rails and in the wild open spaces.

In its deserts, forests, mountain ranges and on the plains, a huge population of modern nomads pursues its version of the American dream – to live free from the world of careers, mortgages and the white picket fence.

When British writer Richard Grant moved to the USA more than 20 years ago it wasn’t just a change of country. He soon found himself in a world of travelers and the culture of roadside America – existing alongside, but separate from, conventional society. In this film he takes to the road again, on a journey without destination.

In a series of encounters and unplanned meetings, Richard is guided by his own instincts and experiences – and the serendipity of the road. Traveling with loners and groups, he encounters the different ‘tribes’ of nomads as he journeys across the deserts of America’s south west.