Debtors’ Prison Still A Reality?

According to a recent article by Chris Serres at the Minnesota Star Tribune, courts still order debtors to go to jail when they can't afford to pay a judgment. Not only are the national media largely unaware of this phenomenon, but The New Yorker published an article last April that characterizes debtors' prisons as a pre-20th Century institution, and describes the America as a refuge for debtors.

As many as two out of every three Europeans who came to the American colonies were debtors on arrival. Some colonies were, basically, debtors’ asylums. By the seventeen-sixties, sympathy for debtors had attached itself to the patriot cause.

Jill Lepore of The New Yorker goes on to describe how American treatment of debt has evolved to allow bankruptcy and why this is a good thing.

Debtors’ prison was abolished, and bankruptcy law was liberalized, because Americans came to see that most people who fall into debt are victims of the business cycle, and not of fate or divine retribution.

Even Wikipedia describes debtors' prisons as a thing of the past, or at least an unconstitutional one, according to this 2009 New York Times editorial, "The New Debtors' Prisons."

20th Century Debtors' Prison

Times have changed. To be sure, most Americans who are deep in credit card debt do not have bench warrants issued for their arrest. However, in Illinois, Indiana and other states, a person who's gotten a judgment entered against them can miss a court date and find themselves being hounded by the police.

What about the argument that defendants may owe the money they are being sued for, and should have gone to court? Perhaps the threat of jail is the only way to make them appear in court.

Reporters from The New York Times and The Federal Trade Commission have found that the collection industry is in dire need of repair, and cited numerous, ubiquitous problems. Some of these problems are startling. To wit:

[More . . . ]

Continue ReadingDebtors’ Prison Still A Reality?

U.S. House approves funding to maintain the empire

As distinct from other peoples, most Americans do not recognize -- or do not want to recognize -- that the United States dominates the world through its military power. Due to government secrecy, our citizens are often ignorant of the fact that our garrisons encircle the planet. This vast network of American bases on every continent except Antarctica actually constitutes a new form of empire -- an empire of bases with its own geography not likely to be taught in any high school geography class. Without grasping the dimensions of this globe-girdling Baseworld, one can't begin to understand the size and nature of our imperial aspirations or the degree to which a new kind of militarism is undermining our constitutional order. ---Chalmers Johnson
It is with the context provided by that quotation from historian Chalmers Johnson that one must understand today's news that the House of Representatives has approved funding today for defense maintaining the empire. The level of spending has been approved at $636.3 billion dollars-- nearly two-thirds of a trillion dollars(see related post on how much a trillion really is) to maintain our network of more than 800 military facilities in more than 140 countries around the world. That spending includes $128.3 billion for fighting our current wars, although Afghanistan is expected to require an additional $30 billion to fund the most recent troop increase.

Continue ReadingU.S. House approves funding to maintain the empire

What Americans owe on their credit cards

What do Americans owe on their credit cards? A huge aggregate amount that constitutes a ticking time bomb that could further devastate the economy. Here are the details, from Consumeraffairs.com:

Average bankcard borrower debt, defined as the aggregate balance on all bank-issued credit cards for an individual bankcard borrower, inched upward nationally 0.82 percent to $5,776 from the previous quarter's $5,729, and 4.09 percent compared to the first quarter of 2008. The highest state average bankcard debt remains in Alaska at $7,476, followed by Tennessee at $6,869 and Nevada at $6,677.

This is per individual bankcard borrower. For the average debt of a married couple, then, double the average amount. The same site reports that the number of consumers who are three or more months behind on their credit card payments is up 11 percent over the same period from 2008.

Continue ReadingWhat Americans owe on their credit cards