Those most likely to be harmed by higher borrowing costs are consumers who are relying on their credit cards to carry them through the economic downturn. According to Demos, a nonpartisan research and advocacy organization, most low- and middle-income households with high debt-stress levels -- the ratio of a family's credit card debt to their annual income -- use their credit cards to pay for unavoidable expenses, such as medical expenses or to cover household essentials after a job loss, not for discretionary items.
Even before the Great Recession of 2008, today's young adults were on track to have the dubious distinction of being the first generation in a century not likely to end up better off than their parents. Stagnant wages, job insecurity, the decline in employer sponsored health insurance and retirement benefits, rapid increases in the cost of basic expenses, soaring debt, and minimal savings have diminished the prospects for opportunity and mobility.
In a recent report from the Heritage Center for Data Analysis (2008) titled Welfare Reform a Factor in Lower Voter Registration at Public Assistance Offices, authors Muhlhausen and Tyrrell argue that the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)--passed in 1996 as part of Clinton's Welfare overhaul-- is an important cause of the decline in the number of individuals who have registered to vote in public assistance agencies.
Congress passed the National Voter Registration Act (NVRA) in 1993 in order to increase the number of eligible citizens who register to vote in federal elections. To help meet this goal, Section 7 of the NVRA requires state public assistance agencies to provide voter registration services to applicants and clients. Recent research has indicated that the number of voter registration applications from public assistance agencies has de- clined 79 percent since initial implementation of the law in 1995.
Former Democratic National Committee Chairman Paul Kirk will become the 60th Democratic vote in the Senate and the first new Massachusetts senator in a quarter-century on Friday, unless a state court intervenes.
State Republicans are fighting the appointment, but Republicans in Washington indicated they would not intervene.
Gov. Deval Patrick (D) on Thursday named Kirk the temporary replacement for the late Sen. Edward Kennedy (D), who died last month.
Brenda Wright, Director of Democracy Program at Demos, has posted some insights at the American Constitution Society's blog on the big campaign finance case, Citizens United v. Federal Elections Commission, to be argued before the Supreme Court tomorrow. Here's her take...
Americans have put themselves on a budget. In the first quarter of 2009, the personal savings rate hit to 5.2 percent. And in a recent National Foundation for Credit Counseling survey, 57 percent of Americans said they're spending less than a year ago.
That moderation could outlast the recession, a good thing to most economists and consumer experts.
As the recession picked up steam, credit cards have become a lifeline for some to pay for groceries, utilities, even mortgage or rent payments. More than one-third of low- and middle-income households used credit cards to cover basic living expenses in five of the past 12 months, according to a survey released last month by Demos, a public policy research group.
And in more credit card news, national research and policy firm Demos found that the average credit card debt of low- to middle-income indebted households was $9,827. Credit card debt has quadrupled since 1989, the firm found in its second national survey of households whose incomes fell between 50 and 120 percent of the local median income.
Credit card debt continues to threaten the financial stability of many low- and middle-income families in the United States, hampering their ability to save and move up the economic ladder. When shortfalls arise, credit has been the only available safety net to help these families make ends meet. In this economic crisis, even though America’s households took on less credit card debt in 2008 than the year before, high levels of revolving debt from previous charges and compounding interest keep balances high and trap families in a vicious cycle.
Debt among older U.S. credit card holders has skyrocketed since 2005, as senior citizens increased borrowing to pay for necessities, a new study shows.
Since 2005, revolving debt among low- and middle-income senior citizens -- age 65 or older -- grew 26 percent. In the same period, credit card balances for all age groups rose 3 percent, the public policy group Demos said Tuesday.
Cash-strapped older Americans are racking up credit card debt faster than other consumers amid dwindling retirement portfolios and rising medical costs, a study shows.
The study, which will be released Tuesday by Demos, a liberal public policy group, shows that low- and middle-income consumers 65 and older carried $10,235 in average card debt last year, up 26% from 2005. Card debt for all borrowers surveyed rose 3% during that time, to $9,827.
People age 65 and up carried an average of $10,235 credit card debt in 2008, according to a study released Tuesday by Demos, a public policy research group. That's an increase of 26% since the organization's last survey of low- and middle-income borrowers in 2005. The average debt for all borrowers in the survey rose just 3%, to $9,827, during that same time period.
Over the past eight years, even as the U.S. signed a number of new bilateral trade pacts, the U.S. government actually decreased its capacity for promoting strong labor standards and enforcing the labor provisions of trade agreements. The Bush Administration sought to slash funding for the Bureau of International Labor Affairs (ILAB) at the U.S. Department of Labor and, though it wasn't entirely successful in this effort, it still managed to significantly downsize the agency.
This report presents new evidence of how trade-related job losses are impacting women workers. It shows how women workers are concentrated in industries which have been drastically affected by the surge in cheap imports over the past decade. The report also shows that current policy responses to dislocations faced by women workers are woefully insufficient, with many laid off women workers receiving little help in securing comparably paying jobs or handling family obligations as they participate in retraining and conduct employment searches.
Brenda Wright, director of the Democracy Program at the nonprofit group Demos, one of the groups behind the lawsuits, said 2.6 million people were registered through public assistance offices in 1995-1996, the first two years the law was in effect. But she said registration has dropped precipitously throughout the nation since then, as much as 90% or more in some states.