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August 22, 2023 Heather Cox Richardson

Published

11 months ago

August 31, 2023

Law professor Bruce Mann’s 2002 book on the early history of American debt, Republic of Debtors, explained how early Americans redefined bankruptcy to excuse defaulting on commercial debt as a result of the volatility of market forces, while retaining the old idea that defaulting on personal debt was a moral failing. Their argument was that commercial debtors could not avoid economic risk because they engaged in market activity, while farmers, tradesmen—ordinary people—should order their affairs so that they did not take on debt they could not repay.

Mann pointed out that this new understanding was “an oddly narrow understanding of economic risk, excluding as it did the hazards and chance that could rain economic ruin on farmers, tradesmen, and other nonmerchants. Moreover, it treated noncommercial debt as somehow avoidable and hence nonpayment” as a moral failing.

The difference between the willingness of right-wing lawmakers to afford debt relief to business owners—often including themselves—through the Paycheck Protection Program and their staunch opposition to the Biden administration’s student loan relief programs suggest that a perceived difference between commercial debt and personal debt in the United States is alive and well.

Rising costs of college and cuts to government support for education mean that more than 45 million people across the country owe more than $1.6 trillion in federal loans, an amount equal to the size of the Australian economy. That debt absorbs money people at the lower end of the economic scale would otherwise invest in homes, consumer goods, and so on, and the Biden administration has made it a priority to relieve some of that debt.

When she was the California attorney general, Vice President Kamala Harris took on predatory for-profit colleges and won $1 billion for defrauded veterans and students, and when he ran for office, Biden promised to forgive federal student debt for those earning less than $125,000.

Since the Supreme Court on June 30, 2023, rejected the administration’s plan to forgive more than $400 billion in student debt borrowed through government programs, the administration has turned to other approaches.

In April it began to fix the administrative errors that had kept borrowers from receiving relief through income-driven repayment plans and the Public Service Loan Forgiveness program under which they borrowed the money. Those plans were always intended to offer a way to eliminate student debt, but the Government Accountability Office in 2022 found that poor record keeping meant that that promise had not been honored. On July 14 the administration announced that fixes to those programs would relieve more than 800,000 borrowers of more than $39 billion in student debt.

At the time, Biden did not mince words. “Republican lawmakers—who had no problem with the government forgiving millions of dollars of their own business loans—have tried everything they can to stop me from providing relief to hardworking Americans. Some are even objecting to the actions we announced today, which follows through on relief borrowers were promised, but never given, even when they had been making payments for decades. The hypocrisy is stunning, and the disregard for working and middle-class families is outrageous.”

Since then, the administration has provided relief to others caught in the system as well, including relief of $45.7 billion for 662,000 public service workers, $10.5 billion for 491,000 borrowers with a total and permanent disability, and $22 billion for nearly 1.3 million borrowers who were cheated by their schools, saw their schools close, or are covered by a related court settlement.

Today the administration released the Saving on a Valuable Education (SAVE) plan, a new repayment plan to bring order and relief to federal student borrowers. It is an income-driven repayment plan that is based on a borrower’s income and family size rather than their loan balance, prevents the balance from growing because of unpaid interest, and forgives the remaining balance after a number of years. “The benefits of the SAVE plan will be particularly critical for low- and middle-income borrowers, community college students, and borrowers who work in public service,” the White House said.

Relieving student debt helps those at the lower end of the economy, which will boost economic growth, but there is also a political payoff in these efforts for the administration. As Democratic strategist and pollster Celinda Lake and documentary filmmaker Mac Heller pointed out in the Washington Post in July, in the eight years between the 2016 and 2024 elections, 32 million Americans have become eligible to vote. In the same eight years, as many as 20 million older voters have died.

Lake and Heller note that younger Americans are focused on issues, rather than individuals, and skew progressive (prompting some Republicans to talk about raising the voting age to 25). Fulfilling a campaign promise that overwhelmingly benefits those under 50—parents as well as students—is good politics, blending in with the members of Gen Z (the generation born between the mid to late 1990s and early 2010s) forming political PACs of their own and running for office.

A new legal filing from prosecutors from special counsel Jack Smith’s office will likely be less good politics for Republicans. Prosecutors today explained to Florida-based U.S. District Court Judge Aileen Cannon why they had continued to investigate the case of the national security documents Trump took, refused to return, and then hid at the Trump Organization’s property at Mar-a-Lago even after they filed indictments against Trump and his aide Walt Nauta.

Prosecutors said that a key witness in that case had retracted false testimony after replacing his Trump-funded lawyer with a public defender. That new testimony implicated Trump and another aide in the attempt to cover up Trump’s retention of the documents, and that new testimony was behind the superseding indictments released in that case in late July.

Prosecutors say that witness is expected to testify against Trump and his aides.

Former federal prosecutor Renato Mariotti called this “a very significant development. Trump already faced overwhelming evidence in the Mar-a-Lago case. But this flipper may change the calculus for Trump’s co-defendants. They are much younger than Trump, and they face the prospect of years in prison if convicted.”

If politics is rocky these days, everyday life is less so thanks to the vote of 86% of the members of the Teamsters union today to approve their new 5-year contract with UPS, heading off what would have been a bruising strike.

—

Notes:

Bruce H. Mann, Republic of Debtors: Bankruptcy in the Age of American Independence (Cambridge: Harvard University Press, 2002), p. 208.

https://projects.propublica.org/coronavirus/bailouts/

https://www.supremecourt.gov/opinions/22pdf/22-506_nmip.pdf

https://www.nytimes.com/interactive/2022/08/26/your-money/student-loan-forgiveness-debt.html

https://www.nytimes.com/2023/06/30/us/student-loan-forgiveness-supreme-court-biden.html

https://studentaid.gov/announcements-events/idr-account-adjustment

https://www.whitehouse.gov/briefing-room/statements-releases/2023/07/14/statement-from-president-joe-biden-on-new-student-debt-relief-actions/

https://www.ed.gov/news/press-releases/biden-harris-administration-releases-state-state-data-39-billion-loan-forgiveness-804000-borrowers-result-fixes-income-driven-repayment-plans

https://www.gao.gov/products/gao-22-103720

https://www.bloomberg.com/news/articles/2023-08-20/student-loan-forgiveness-biden-wipes-out-39-billion-in-debt-under-idr-programs

https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/22/fact-sheet-the-biden-harris-administration-launches-the-save-plan-the-most-affordable-student-loan-repayment-plan-ever-to-lower-monthly-payments-for-millions-of-borrowers/

https://www.politifact.com/truth-o-meter/promises/biden-promise-tracker/promise/1595/forgive-student-loan-debt-public-colleges-and-univ/

https://www.whitehouse.gov/briefing-room/statements-releases/2023/07/14/statement-from-vice-president-kamala-harris-on-additional-student-loan-forgiveness/

https://www.washingtonpost.com/opinions/2023/07/19/gen-z-voters-2024/

https://storage.courtlistener.com/recap/gov.uscourts.flsd.648654/gov.uscourts.flsd.648654.129.0.pdf

https://twitter.com/kyledcheney/status/1694099334516642113

https://www.politico.com/news/2023/08/22/trump-witness-reversal-testimony-jack-smith-00112355

https://www.cnn.com/2023/08/22/business/ups-strike-vote-teamsters-union/index.html

https://twitter.com/renato_mariotti/status/1694120617992192292

Substacks

July 25, 2024 Heather Cox Richardson

Published

8 hours ago

July 26, 2024

Substacks

TGIF: The Week Unburdened by the Week That Has Been Suzy Weiss

Published

15 hours ago

July 26, 2024

Pro-Palestinian protesters gather outside of Union Station to protest Israeli prime minister Benjamin Netanyahu’s visit to the United States. (Probal Rashid via Getty Images)

Oh, no, it’s the sister again, for another slow news week. Let’s get to it.

→ Biden dropped out: Six years ago emotionally, but technically this past Sunday, Joe Biden dropped out of the presidential race. He did it via X and promptly threw his support (and cash) behind Vice President Kamala Harris. Then he got Covid and hunkered down in Delaware—or depending on what hooch you’ve been drinking, died and was reanimated so he could appear before the cameras on Wednesday to address the nation. Joe’s family, including Hunter, sat along the wall of the Oval Office as he spoke. The president talked about the cancer moonshot, ending the war in Gaza, putting the party over himself, and Kamala’s tenacity, as Kamala’s pistol dug ever-so-slightly harder into his back. Right after, Jill, the First Lady of passive aggression, who apparently wanted to outdo her heart emoji, tweeted a handwritten note “to those who never wavered, to those who refused to doubt, to those who always believed.” I respect a First Lady who stands by her man and her energetic stepson. A First Lady who sees the high road way up there and says to herself, “If they want us out of here so bad, they can clean out the fridge and strip the beds themselves!”

→ Kamala is brat, Biden is boots, please God send the asteroid today: I’ve learned the hard way—and by that I mean my parents once asked me what “WAP” meant—that certain things should never be explained with words. It’s not that it’s impossible, it’s just that it embarrasses everyone.

That’s how I feel about the whole Kamala-is-brat thing. Brat is a good album about partying and getting older and having anxiety that was released earlier this summer by Charli XCX. But it’s since been adopted by too-online and very young people as a personality, and by Kamala Harris’s campaign as a mode to relate to those very young people. Her campaign is leaning into the whole green look of the album to try and win over Gen Z, and generally recasting her many viral moments—“You think you just fell out of a coconut tree?” “I love Venn diagrams” “What can be, unburdened but what has been”—as calling cards. It’s like when Hillary went on Broad City, only this time more cringe.

And now we have Jake Tapper and Greg Gutfeld grappling with the “essence” and the “aesthetic” and overall vibe of brat girl summer. We used to be a serious country. We used to make things.

Here’s the thing about Kamla: she is hilarious and campy, but unintentionally so. Any goodwill that her goofy dances or weird turns of phrase garner should be considered bonus points, not game play. Was there ever any doubt that Fire Island would go blue? We’ve been debating whether Kamala’s meme campaign is a good move for her prospects in the Free Press Slack, and here I’ll borrow from my older and wiser colleague Peter Savodnik: “There is nothing more pathetic than an older person who cares what a younger person thinks is cool.”

→ Boomer behavior: While Kamala’s campaign is being run by a 24-year-old twink with an Adderall prescription, J.D. Vance’s speechwriter seems to be a drunk Boomer who just got kicked out of a 7-11. Vance, appearing this week at a rally in Middletown, Ohio, riffed, “Democrats say that it is racist to believe. . . well, they say it’s racist to do anything. I had a Diet Mountain Dew yesterday and one today, and I’m sure they’re going to call that racist too.” Crickets. Horror. Major “Thanks, Obama” energy. There was also a bit on fried bologna sandwiches and a lot of “lemme tell you another story.” The guy is 39 but sounds older than Biden.

Fresher, 35-to-60-year-old blood is exactly what we’ve been begging for. Let the Boomers boom, let the Zoomers zoom. Kamala and J.D.: act your age.

Substacks

July 25, 2024 Heather Cox Richardson

Published

19 hours ago

July 26, 2024

Momentum continues to build behind Vice President Kamala Harris to become the Democratic Party’s presidential nominee, and the national narrative as a whole has shifted.

Democrats appear to be generating significant enthusiasm among younger Americans. Yesterday, for the first time in their history, the March for Our Lives organization endorsed a presidential candidate: Kamala Harris. Students from the Marjory Stoneman Douglas High School in Parkland, Florida, organized March for Our Lives after the shooting there in 2018. Executive director Natalie Fall said that the organization “will work to mobilize young people across the country to support Vice President Harris and other down-ballot candidates, with a particular focus on the states and races where we can make up the margin of victory—in Arizona, New York, Michigan, and Florida.”

Andrea Hailey of Vote.org announced that in the 48 hours after President Biden said he would not accept the Democratic nomination, nearly 40,000 people registered to vote. That meant a daily increase in new registrations of almost 700%.

People are turning out for Harris in impressive numbers. In the hours after she launched her campaign, Win With Black Women rallied 44,000 Black women on Zoom and raised $1.6 million. On Monday, around 20,000 Black men rallied to raise $1.2 million. Tonight, challenged to “answer the call,” 164,000 white women joined an event that “broke Zoom” and raised more than $2 million and tens of thousands of new volunteers.

Another significant endorsement for Harris came yesterday from Geoff Duncan, the Republican former lieutenant governor of Georgia, who wrote on social media: “I’m committed to beating Donald Trump. The only vehicle left for me to do that with is the Democratic Party. If that requires me to vote for, speak for, or endorse [Kamala Harris] then count me in!” Duncan’s public announcement offers permission for other Georgia Republicans to make a similar shift. In 1964, South Carolina senator Strom Thurmond similarly paved the way for southern Democrats to vote for Republican presidential candidate Barry Goldwater.

Harris’s appearances are generating such enthusiasm from audiences that when she delivered the keynote address this morning at the convention of the American Federation of Teachers in Houston, Texas, the applause delayed her ability to begin. After a speech defending education and calling out the cuts to it in Project 2025, Harris ended by demonstrating that after decades of Democrats being accused of being anti-American, Trump’s denigration of the country has enabled the party to claim the position of being America’s defenders.

“When we vote, we make our voices heard,” Harris said. “So today, I ask you, AFT, are you ready to make your voices heard? Do we believe in freedom? Do we believe in opportunity? Do we believe in the promise of America? And are we ready to fight for it? And when we fight, we win! God bless you and God bless the United States of America.”

Today the Commerce Department reported that economic growth in the second quarter was higher than expected, coming in at 2.8%, thanks to higher spending driven by higher wages. The country’s changing momentum is showing in media stories hyping the booming economy Biden’s team tried for years to get traction on. “Full Employment is Joe Biden’s True Legacy” was the title of a story by Zachary Carter that appeared yesterday in Slate; CNN responded to today’s good economic news with an article by Bryan Mena titled: “The US economy is pulling off something historic.”

With Harris appearing to have sewn up the nomination, the question has turned to her vice presidential pick. That question is fueling the sense of excitement as potential choices are in front of cameras and on social media advocating Democratic positions and defending the United States from Trump’s denigration. Pennsylvania governor Josh Shapiro listed the economic gains of the past years, and said: “Trump, you’ve got to stop sh*t talking America. We’ve got to start standing tall and being patriotic and showing how much we love this amazing nation.”

The vice presidential hopefuls appear to be having some fun with showcasing their personalities, as Minnesota governor Tim Walz did in his video from the Minnesota State Fair where he and his daughter went on an extreme ride. So are social media users who have dug up old videos of, for example, Transportation Secretary Pete Buttigieg explaining how he would pilot a small starfighter that had lost its auxiliary shields, or Arizona senator Mark Kelly’s identical twin brother Scott pranking a fellow astronaut on the Space Station with a gorilla suit Mark smuggled on board.

That sense of fun is an enormous relief after years of political weight, and it has spilled over into making fun of the Republican ticket, most notably with a false story that vice presidential candidate J.D. Vance wrote about—and I cannot believe I am typing this—having sex with a couch. The story is stupid, but worse are the denials of it, which have spread the story into populations that otherwise would likely not have seen it.

Just two weeks ago, Vance appeared to be the leader of the next generation of extremist MAGA Republicans, but now that calculation seems to have been hasty. Vance is a staunch opponent of abortion—the key issue in 2024—and he has been vocal in his disdain of women who have not given birth, saying in 2021, for example, that the U.S. was being run by “a bunch of childless cat ladies who are miserable at their own lives and the choices that they’ve made and so they want to make the rest of the country miserable, too.” He went on to say that people who don’t have children “don’t really have a direct stake” in the country.

Republican commentator Meghan McCain noted that Vance’s “comments are activating women across all sides, including my most conservative Trump supporting friends. These comments have caused real pain and are just innately unchristian.” Actor Jennifer Aniston, who tends to stay out of politics, posted: “I truly can’t believe this is coming from a potential VP of The United States.” Vance had called out Harris by name in those 2021 comments, and Second Gentleman Doug Emhoff’s ex-wife Kerstin Emhoff took to social media to defend Harris from Vance’s attacks on her as “childless,” calling her “a co-parent with Doug and I. She is loving, nurturing, fiercely protective and always present. I love our blended family and am grateful to have her in it.” Harris’s stepdaughter chimed in: “I love my three parents.”

Vance also ties the Republican ticket firmly to Project 2025. The Trump camp has worked to distance itself from Project 2025—not convincingly, since the two are obviously closely tied, but it turns out that Vance wrote the introduction for a forthcoming book by Heritage Foundation president Kevin Roberts, who was the lead author of Project 2025. The book appears to popularize that plan, right down to its endorsement of a “Second American Revolution,” and according to the book deal report, proceeds from the book will go to the Heritage Foundation “and aligned nonprofits.”

Now Vance’s words praising Project 2025 will be in print, just in time for the election. Yesterday, Trump posted: “I have nothing to do with, and know nothing about, Project 25 [sic]. The fact that I do is merely disinformation put out by the Radical Left Democrat Thugs. Do not believe them!”

Trump is clearly aware of, and concerned about, the changing narrative. This morning, he called in to Fox & Friends, saying, “We don’t need the votes. I have so many votes. I’m in Florida now…and every house has a Trump-Vance sign on it. Every single house…. It’s amazing the spirit…. This election has more spirit than I’ve ever seen ever before.” Tonight the Trump campaign proved their worry by backing out of debates with Harris, saying debates can’t be scheduled until she is the official nominee, although Biden was not the official nominee when they met in June.

The larger narrative shift has affected the media approach to Trump, who is accustomed to shaping perceptions as he wishes. Now, 12 days after the mass shooting at his rally in Butler, Pennsylvania, there is increasing media attention to the fact that there has still been no medical report on Trump’s injuries, although he wore a large bandage on his ear at the Republican National Convention and said at a rally in Grand Rapids, Michigan, on Saturday that he “took a bullet for democracy.”

Yesterday, FBI director Christopher Wray told Congress that it is not clear whether Trump was “grazed” by a bullet or by shrapnel, words that former federal prosecutor Joyce Vance called “FBI speak for, ‘it’s unlikely it was a bullet.’”

CNN chief medical consultant Dr. Sanjay Gupta noted last week that the people need a real medical evaluation of Trump’s injuries, explaining that “gunshot blasts near the head can cause injuries that aren’t immediately noticeable, such as bleeding in or on the brain, damage to the inner ear or even psychological trauma.” But, as Josh Marshall at Talking Points Memo has noted, much of the press has kept mum about the story.

Media outlets have reported Wray’s testimony, though, and in a social media post today, Trump called on Wray, whom he appointed to head the FBI, to resign from his post for “LYING TO CONGRESS.” Tonight, he reiterated that “it was…a bullet that hit my ear, and hit it hard.”

Perhaps eager to get back to their districts, House Republicans canceled their expected votes on appropriations bills scheduled for next week and left town today for their August recess. The House will not reconvene until early September. The government’s fiscal year 2025 begins on October 1.

—

Notes:

https://www.nytimes.com/2024/07/24/opinion/trump-lies-charts-data.html

https://marchforourlives.org/in-a-first-ever-endorsement-march-for-our-lives-endorses-kamala-harris-for-president/

https://www.reuters.com/markets/us/us-economic-growth-regains-steam-second-quarter-inflation-slows-2024-07-25/

https://slate.com/news-and-politics/2024/07/biden-economy-employment-inflation.html

https://www.cnn.com/2024/07/25/entertainment/jennifer-aniston-jd-vance/index.html

https://www.cnn.com/2024/07/25/economy/us-economy-gdp-second-quarter/index.html

https://www.mediamatters.org/heritage-foundation/jd-vance-wrote-foreword-book-project-2025-architect-kevin-roberts-and-proceeds

https://www.newsweek.com/donald-trump-might-not-shot-1930037

https://people.com/was-trump-struck-by-bullet-or-shrapnel-fbi-director-testifies-8683340

https://www.msnbc.com/rachel-maddow-show/maddowblog/trump-wants-fbi-director-resign-immediately-chris-wray-rcna163641