The Debt-Peonage Society

[Ruffhowse]

By PAUL KRUGMAN

Today the Senate is expected to vote to limit debate on a bill that toughens the existing bankruptcy law, probably ensuring the bill's passage. A solid bloc of Republican senators, assisted by some Democrats, has already voted down a series of amendments that would either have closed loopholes for the rich or provided protection for some poor and middle-class families.

The bankruptcy bill was written by and for credit card companies, and the industry's political muscle is the reason it seems unstoppable. But the bill also fits into the broader context of what Jacob Hacker, a political scientist at Yale, calls "risk privatization": a steady erosion of the protection the government provides against personal misfortune, even as ordinary families face ever-growing economic insecurity.

The bill would make it much harder for families in distress to write off their debts and make a fresh start. Instead, many debtors would find themselves on an endless treadmill of payments.

The credit card companies say this is needed because people have been abusing the bankruptcy law, borrowing irresponsibly and walking away from debts. The facts say otherwise.

http://www.nytimes.com/2005/03/08/opinion/08krugman.html?n=Top%2fOpinion%2fEditorials%20and%20Op%2dEd%2fOp%2dEd%2fColumnists%2fPaul%20Krugman
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I like how he identifies the trend of "risk privatization". It's a phrase that neatly summarizes what I have been observing BushCo attempting since 2000. At one time America realized that we could make more people's lives better if we pooled our risks to be covered by government sponsored programs and policies on the theory that there is safety in numbers as we band together. Now, BushCo wants to enforce an "every man for himself" ethic on all of us. That works fine if you're rich, but the vast majority of Americans are losing in this trend towards "risk privatization". And the evangelicals love this stuff because it puts more risk and anxiety into peoples lives and the Bible thumpers expectation is that people will turn to religion in hopes of praying their way out of danger and into prosperity. Evangelical and fundamentalist Christianity hate the welfare state because it makes most peoples lives too safe and comfortable, and one of the main attractions of religion through the centuries has been as a harbinger of hope for prosperity and against misfortune. It all neatly fits into the basic modern Republican credo from BushCo----"I got mine, fuck you".

[CrazeeChrissy]

1. did the bill pass?

[Ruffhowse]

2. I think it did. If not, it's a sure bet it will in the next couple days.

I heard the House is gonna rubber stamp it, and Bush has said he will sign it, so it's a done deal I'm afraid.

[etherealtruth]

3. I am not joking...

Will there be a need for debtors prisons for those who simply can't pay or those who won't officially work for a paycheck that has been garnisheed to a point they can't support their families?

[Ruffhowse]

4. I wouldn't be surprised to see debtor's prisons (privatized of course)

instituted due to the demand of the banks and credit card companies to extract their pound of flesh. Maybe even a revival of indentured servitude to pay off debts. BushCo would love that.