Sunday, April 10, 2005

Reverse Robin Hood Rides Again

Student loan providers continue to bilk the United States Government for millions of dollars. They have been charging the government 9.5% interest for guaranteed student loans that actually carry much lower interest rates. Congress attempted to close the guaranteed subsidy loophole last year, but subsidies to student loan providers have actually increased duing the first quarter of 2005 by $ 22 million dollars from the last quater of 2004.


So while George W. Bush cuts Pell Grant subsidies to thousands of middle-income and low-income college students, he and the Republican Congress are providing millions more for the banks providing the loans.

This is known as Bushonomics or the Reverse Robin Hood Program. You take money, benefits and opportunity from middle-income and low-income people and provide them for the wealthy, the powerful, and the banking and investment classes.

Bush and the Republican Congress have also played Reverse Robin Hood with the pending Bankruptcy Bill and the Class-Action law. Credit card companies and corporate malefactors like Walmart (Biggest retailer and Most Sued in the Nation - All right, Sam!) have directly written laws that will benefit them to the tune of millions of dollars.

But students all across this nation are finding that their Federal Pell Grants have been either cut or eliminated by Reverse Robin Hood and his band of merry congressmen. These same students may find their Social Security benefits cut or eliminated in the future (if Reverse Robin Hood has his way with "private accounts"). And certainly these students will be paying off the federal deficit throughout their lives because Reverse Robin Hood fought two wars and cut taxes simultaneously.

In instance after instance, George W. Bush and the Republican Congress (along with some 'moderate" Dems like Joe Lieberman and Joe Biden) have sided with the moneyed interests and investment classes over the rest of us who work for a living. Prices rise, productivity rises, the federal deficit rises, personal debt rises -while wages stay stagnant. Most of us owe more and own less. When the real estate bubble finally bursts (and it will even if Greenspan refuses to acknowledge it) Americans will really owe more (in adjustable rate mortgage payments) and own less (foreclosed homes).

Ah yes, Reverse Robin Hood and his band of merry bankers, brokers, and congressmen never met a worker or student they wouldn't rob or a wealthy interest they wouldn't rescue.

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