Payday loan opponents struggle to get a fair hearing

Payday loans are high-interest short-term unsecured small loans that borrowers promise to repay out of their next paycheck, typically two weeks later. Interest rates are typically 300% to 500% per annum, many multiples higher than the exorbitant rates charged by banks on their credit cards. A typical payday borrower takes out payday loans to pay utility bills, to buy a child’s birthday present or to pay for a car repair. Even though payday loans are dangerous financial products, they are nonetheless tempting to people who are financially stressed. The growth of payday lenders in the last decade has been mind-boggling. In many states there are more payday lenders than there are McDonald’s restaurants. In Missouri Payday lenders are even allowed to set up shops in nursing homes. Missouri’s payday lenders are ferociously fighting a proposed new law that would put some sanity into a system that is often financially ruinous for the poor and working poor. Payday lenders claim that the caps of the proposed new law would put them out of business. Their argument is laughable and their legislative strategy is reprehensible. Exhibit A is the strategy I witnessed Thursday night, February 18, 2010. On that night, Missouri State Senator Joe Keaveny and State Representative Mary Still jointly held a public hearing at the Carpenter Branch Library in the City of St. Louis City to discuss two identical bills (SB 811 and HB 1508) that would temper the excesses of the payday loan industry in Missouri. Instead of respecting free and open debate and discussion regarding these bills, payday lenders worked hard to shut down meaningful debate by intentionally packing the legislative hearing room with their employees, thereby guaranteeing that A) the presenters and media saw an audience that seemed to favor payday lenders and B) many concerned citizens were excluded from the meeting. As discussed further down in this post, payday lenders are also responsible for flooding the State Capitol with lobbyists and corrupting amounts of money.carpenter-branch-library When I arrived at 7:00 pm, the scheduled starting time, I was refused entry to the meeting room. Instead, I was directed to join about 15 other concerned citizens who had been barred from the meeting room. There simply wasn’t room for us. But then who were those 100 people who had been allowed to attend the meeting? I eventually learned that almost all of them were employees of payday lenders; their employers had arranged for them to pack the room by arriving en masse at 6 pm. Many of the people excluded from the meeting were eventually allowed to trickle into the meeting, but only aspayday-employees other people trickled out. I was finally allowed into the meeting at 8 pm, which allowed me to catch the final 30 minutes. In the photo below, almost all of the people plopped into the chairs were payday lender employees (the people standing in the back were concerned citizens). This shameful tactic of filling up the meeting room with biased employees has certainly been used before.

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The problem with politicians

Colin Beavan (No Impact Man) sums it up like this at his blog:

[T]he politics of Washington are defunct. The Democratic politicians want to beat the Republicans. The Republican ones want to beat the Democratic ones. They are, like the rest of us, scared for their jobs! But the American people? We just want to get along with each other and solve problems. We want happy lives and to be kind to our neighbors. We want leaders who care about us more than their own careers.
Americans are often under the illusion that we have meaningful choices when we vote in national elections, but that is dangerously simplistic. Big money and commercial media pre-designate the candidates who qualify as "serious candidates" long before the citizens vote. Those candidates who prevail are those that have given sufficient winks and nods to big money such that they continue to get well-funded. To compound things, big money likes the status quo. Hence, Barack Obama's continuing lovefest with Wall Street (Disclosure: I voted for Obama but I'm sorely disappointed--yet I still think he is far preferable to McCain-Palin). There are no easy solutions to this problem. The start of a solution, in my opinion, is to give smart, "non-connected" and non-monied people a real chance to get elected. There are several "clean money" campaign reform proposals floating about (for details on one of these, see this post by Lawrence Lessig). The purpose of clean-money elections is the radical idea promoted by the Founding Fathers: that We the People would self-govern. The topic Colin Beavan raises today is the most important political topic out there, in my opinion. Without an honest, open and self-critical deliberative process, we don't actually have a democracy. With the current system of private-money elections (especially in the wake of Citizens United), we don't have an honest, open and self-critical deliberate process. What we have instead, is what Beavan has described: a big expensive game where politicians do anything and say anything to maintain their power and perks.

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The fearmongering strategy

At Newsweek, Daniel Klaidman describes fearmongering as a political strategy:

Americans are historically a tough lot. But the policies and rhetoric of the Bush-Cheney years, which set the tone for the current GOP attacks, are infantilizing: be very afraid, we're told, and let the government take care of you. The tough-guy bluster has led to a permanent state of anxiety—and a slew of counterproductive policies, from harsh visa restrictions to waterboarding. Our politicians rail about apocalyptic threats while TSA officers pat down toddlers at the airport. The irony is that many potentially lethal terror attacks—from United Flight 93 to Richard Reid to the underwear bomber—have been foiled by regular citizens.
Echoes of this.

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The Internet doesn’t think

Edge.org has published the results to its annual question. This year's inquiry: How Has The Internet Changed The Way You Think?. There are dozens of thoughtful answers that could occupy you for an entire day. The answer offered by cognitive scientist Joshua Greene caught my attention. Here's an excerpt:

Have you ever read a great book from before the mid 1990s and thought to yourself, "My Goodness! These ideas are so primitive! So… pre-Internet!" Me neither. The Internet hasn't changed the way we think anymore than the microwave oven has changed the way we digest food. The Internet has provided us with unprecedented access to information, but it hasn't changed what we do with it once it's made it into our heads. This is because the Internet doesn't (yet) know how to think. We still have to do it for ourselves, and we do it the old-fashioned way.

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Eisenhower warns of the military industrial complex

In this video from 1961, President Dwight Eisenhower explained the grave implications of the existence of the military industrial complex. In my opinion, he was spot on in this speech (which was his exit speech from the presidency), and this phenomenon of the MEC explains the horrifically warped U.S. national budget and our equally warped sense of national priorities for decades:

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