It seems the be the enduring economic argument of our times. Are companies more important than people?
Our politicians know the answer. Corporations pay them lots. People don’t. When will we seek a government for the people not a government for profiteers?
In 2010, the Consumer Financial Protection Bureau, which I direct, was authorized to study mandatory arbitration and write rules consistent with the study. After five years of work, we recently finalized a rule to stop companies from denying groups of consumers the option of going to court when they are treated unfairly.
Opponents have unleashed attacks to overturn the rule, and the House just passed legislation to that end. Before the Senate decides whether to protect companies or consumers, it’s worth correcting the record.
First, opponents claim that plaintiffs are better served by acting individually than by joining a group lawsuit. This claim is not supported by facts or common sense. Our study contained revealing data on the results of group lawsuits and individual actions. We found that group lawsuits get more money back to more people. In five years of group lawsuits, we tallied an average of $220 million paid to 6.8 million consumers per year. Yet in the arbitration cases we studied, on average, 16 people per year recovered less than $100,000 total.
Not only do group lawsuits help consumers recover money they otherwise would forfeit, but they also protect many more consumers by halting and deterring harmful behavior. For example, when banks reordered bank debits to charge more overdraft fees, consumers sued and recovered $1 billion. Most banks have since stopped the practice.
Let Consumers Sue Companies https://nyti.ms/2vjWRyP
If we want to set smart goals for improving climate change outcomes we need to incentivize adoption of electric vehicles. There is no barrier to adoption in this article that couldn’t be overcome with smart incentives. No new tech needed. Winners: all of humanity! Losers: energy companies too slow to adapt.
The International Energy Agency has estimated that electric vehicles would have to account for at least 40 percent of passenger vehicle sales by 2040 for the world to have a chance of meeting the climate goals outlined in the Paris agreement, keeping total global warming below 2 degrees Celsius.
When Will Electric Cars Go Mainstream? It May Be Sooner Than You Think https://www.nytimes.com/2017/07/08/climate/electric-cars-batteries.html
Going backward by reducing regulation of the financial industry will not help citizens.
The calls for deregulation come from greedy businessmen who put their interest and personal profit ahead of what’s best for the citizens of our country.
On top of that they are too lazy to seek business solutions which drive profit while keeping the financial system safe. There are ways to have both, but it takes more effort.
The real issue is do we have meritocracy or a kleptocracy?
Yellen Warns Against Erasing Regulations Made After Financial Crisis https://nyti.ms/2w45pxm
Drafting bills like the new healthcare bill in secret mean two things. Republicans know it’s wrong and they wish to obscure the involvement of special interests.
As they draft legislation to repeal the Affordable Care Act, Senate Republican leaders are aiming to transform large sections of the American health care system without a single hearing on their bill and without a formal, open drafting session.
That has created an air of distrust and concern — on and off Capitol Hill, with Democrats but also with Republicans.
Secrecy Surrounding Senate Health Bill Raises Alarms in Both Parties https://nyti.ms/2trgrbM
The Republicans might get this one right.
The United States system for taxing businesses is a mess.
The current corporate income tax manages the weird trick of both taxing companies at a higher statutory rate than other advanced countries while collecting less money, as a percentage of the overall economy, than most of them. It is infinitely complicated and it gives companies incentives to borrow too much money and move operations to countries with lower tax rates.
The Major Potential Impact of a Corporate Tax Overhaul http://nyti.ms/2jeVcVl
This article is really about wage theft, but no one likes to call it that.
The author commissioned a study to show how we could make up lost income gains by using earned income tax credits for the lowest paid workers.
This is a great idea which the staff generally applauds, but it misses the point of where the lost wages went. In seeking to fund this make-up pay the authors dance around the idea of making those responsible give it back.
economic growth has far outpaced income growth for decades. Gross domestic product for each person in the United States was 78 percent higher in 2015 than in 1979. But the average income for those households at the 20th percentile of the income distribution rose only 6.9 percent in that span.
No one wants to admit that corporations and the wealthy took the profit from productivity gains and GDP growth away from the workers. Now have to carefully beg for it back. This is not NobodyisFlyingthePlane. This is wage theft.
What Would It Take to Replace the Pay Working-Class Americans Have Lost? http://nyti.ms/2htjKcu
We know we can’t trust Trump or his word. It’s enticing to believe that he may actually do some good for the country. You can rest assured that it would only be inadvertently if he does. He is out for himself and no one else.
But remember that we’re dealing with a president-elect whose business career is one long trail of broken promises and outright scams — someone who just paid $25 million to settle fraud charges against his “university.” Given that history, you always have to ask whether he’s offering something real or simply engaged in another con job. In fact, you should probably assume that it’s a scam until proven otherwise.
And we already know enough about his infrastructure plan to suggest, strongly, that it’s basically fraudulent, that it would enrich a few well-connected people at taxpayers’ expense while doing very little to cure our investment shortfall. Progressives should not associate themselves with this exercise in crony capitalism.
Build He Won’t http://nyti.ms/2eWb0Pu