Mick Mulvaney says CFPB’s priority is ‘free markets and consumer choice’

From today’s LA Times:

Consumer Financial Protection Bureau chief Mick Mulvaney told lawmakers Wednesday that the agency’s new priority is “to recognize free markets and consumer choice” and take “a humble approach to enforcing the law,” according to prepared remarks released in advance.

In his first testimony to Congress since his controversial appointment as the bureau’s acting director, Mulvaney acknowledged that many lawmakers have disagreed with his actions in the job, “just as many members disagreed with the actions of my predecessor.”

Mulvaney blamed lawmakers’ frustrations on the structure of the bureau, an independent watchdog created in the wake of the financial crisis. He was an outspoken critic of the bureau as a Republican congressman, and last week he formally asked Congress to reduce the bureau’s authority.

Mulvaney and other Republicans have said the bureau is unaccountable because its funding, like that of other financial regulators, is outside the appropriations process, and the president can fire the bureau’s director only for cause, rather than at will.

Read the complete article here.

Better Your Chance For Equal Pay – What You Need To Know Now

From today’s Forbes Magazine:

The gender pay gap is the most entrenched barrier to equality women face. It seems so simple: equal pay for equal work. But the formula is complicated in many companies because men outnumber women in C-suites, in leadership and management, in the most lucrative industries like banking, and in the higher-risk, higher-reward jobs – all of which skews the data and creates a rationale that is used to justify the pay gap.

The fact is, there is no valid reason for paying women less for equal performance, and doing so hamstrings the growth of our economy. A 2017 report by the Institute for Women’s Researchdemonstrates how equal pay for women could increase the U.S. economy by an incredible $512.6 billion.

Meanwhile, a confluence of factors continues to inhibit a woman’s ability to earn her worth, though many of them can be changes. Here are four things all women need to know to better their chances for equal pay:

1.Where you live and work dramatically impacts your potential for equal pay.

Smart Asset researched the pay gap in 507 metro areas around the country and found that nationally, women make an average 70% of what men do in the same jobs. However, there are 51 Metro areas where the gap closes to 80% or better. Cities like LA, Las Vegas, Flagstaff, Arizona; Jefferson City, Missouri; and Bangor, Maine all have narrower pay gaps than average. But the title goes to Rochester, Minnesota as the top place for working women for the second year in a row. Women in that metro earn the highest income in the nation, after deducting housing costs.

If you live in a state capitol, you have an even better chance of equal pay: nearly half of the top 12 metros were around capitals.

The women who live in Tallahassee, Florida’s state capital, will be relieved to know that they enjoy one of smallest pay gaps in the nation, with the average woman in the metro area earning roughly 94% of what the average man does. Florida, overall, had the most metros in the top 51, with 13 cities outperforming the national average. Gainesville, Tampa, Fort Meyers, and Miami all did better than 80%.

But there’s bad news for the women of Utah. Provo-Orem is the worst-performing metro area in the study. Smart Asset’s data shows that the average woman there earns about 42% of what the average man does.

Read the complete article here.

Breaking: FBI raids Trump lawyer’s office

From today’s LA Times:

President Trump lashed out Monday at news that his personal attorney, Michael Cohen, was the subject of an FBI raid, calling it “a disgraceful situation” and adding that “many people have said” he should fire Robert S. Mueller III, the special counsel heading the Russia investigation.

“They broke into the office of one of my personal attorneys,” Trump told reporters before a meeting with his military advisors, adding that “I have this witch hunt constantly going on for over 12 months now.”

“It’s a disgrace,” he said. “It’s an attack on our country. It’s an attack on what we all stand for.”

The raid is “a whole new level of unfairness,” Trump added, saying that he learned about the raid, from news reports, “like you did.”

He called attorneys working under Mueller “the most conflicted group of people I have ever seen.” The raid on Cohen’s office was undertaken by agents working with the federal prosecutor’s office in Manhattan, acting on a referral from Mueller.

“They’re not looking at the other side. They’re not looking at Hillary Clinton and all the horrible things she did,” Trump said, repeating a charge that he has made before that the lawyers working for Mueller were all Democrats.

The president also renewed criticism of Atty. Gen. Jeff Sessions, saying he “made a terrible mistake” by recusing himself from involvement in the Russia investigation, “a very terrible mistake for the country.”

Read more about the raid here.

Facebook Says Cambridge Analytica Harvested Data of Up to 87 Million Users

From today’s New York Times:

Facebook on Wednesday said that the data of up to 87 million users may have been improperly shared with a political consulting firm connected to President Trump during the 2016 election — a figure far higher than the estimate of 50 million that had been widely cited since the leak was reported last month.

Mark Zuckerberg, the company’s chief executive, also announced that Facebook would offer all of its users the same tools and controls required under European privacy rules. The European rules, which go into effect next month, give people more control over how companies use their digital data.

Facebook had not previously disclosed how many accounts had been harvested by Cambridge Analytica, the firm connected to the Trump campaign. It has also been reluctant to disclose how it was used by Russian-backed actors to influence the 2016 presidential election.

Among Facebook’s acknowledgments on Wednesday was the disclosure of a vulnerability in its search and account recovery functions that it said could have exposed “most” of its 2 billion users to having their public profile information harvested.

The new effort to appear more transparent about the data leaks — including a rare question-and-answer session with Mr. Zuckerberg and reporters — came just before Mr. Zuckerberg’s expected testimony next week on Capitol Hill, where he will most likely face criticism over how the company collects and shares the personal data of its users. Sheryl Sandberg, Mr. Zuckerberg’s top deputy, has several national television interviews scheduled for later this week.

The company said that on Monday it would start telling users whether their information may have been shared with Cambridge Analytica.

Andy Stone, a spokesman for Facebook in Washington, said the 87 million figure was an estimate of the total number of users whose data could have been acquired by Cambridge Analytica. He said that the estimate was calculated by adding up all the friends of the people who had logged into the Facebook app from which Cambridge Analytica collected profile data.

Read the complete article here.

An International Final Four: Which Country Handles Student Debt Best?

From today’s New York Times:

Although an American college degree remains a good investment on average — the higher earnings for most graduates justify the cost— millions of borrowers are in default on their loans.

Policy analysts generally agree on a need for reform, but not on which path policymakers should take. Can America learn anything from other nations? We gathered experts with a range of perspectives, from America and abroad, and asked them to compare the systems in Australia, Britain, Sweden and the United States.

We chose this grouping of nations because they highlight important differences both in loan repayment systems and in related policies such as tuition and loan limits, not necessarily because they all belong among the best systems in the world. In the spirit of March Madness, we devised a bracket-style tournament, seeding the countries so that those with more similar systems would meet in the semifinals.

Sweden vs. United States

Sweden and the United States differ in whether the monthly loan payment remains the same over time and in the number of years borrowers can repay their loans.

The average American borrower with a bachelor’s degree leaves college with $28,400 in debt. Students can borrow for both tuition and living expenses, although loan limits make it hard for an undergraduate to borrow more than $45,000 over four years.

In Sweden, average debt levels are similar — the equivalent of around $21,000 — even though students borrow only for living expenses (Swedish universities do not charge tuition). Interest rates are also very low; the rate for 2018 is now 0.13.

In the United States, borrowers are required to begin making payments six months after leaving college. By default, payments are set so the whole principal and interest, which is tied to the market rate at the time the loan is made (currently 4.45 percent), will be paid off in equal monthly installments paid over 10 years.

American borrowers can opt into alternative repayment plans, including plans that tie payments to income or that start lower and increase over time. Income-based plans offer forgiveness of any remaining balance after 10 to 25 years, but enrolling in these plans requires making a request to the servicer and filing paperwork annually. If you miss the paperwork, you are put back into a 10-year repayment schedule, but can ask to re-enroll. There are a large number of plans that are hard for borrowers to navigate, especially in times of financial stress.

Swedish borrowers, on the other hand, pay off their loans over a much longer period. Borrowers can be in repayment for up to 25 years, with the typical borrower paying for 22 years.

Read the complete article here.

Breaking News: Kentucky teachers rally at State Capitol over state budget

From today’s LA Times:

Thousands of Kentucky teachers filled the streets near the state Capitol in Frankfort on a cold, overcast Monday to rally for education funding.

Teachers and other school employees gathered outside the Kentucky Education Assn. a couple of blocks from the Capitol chanting, “Stop the war on public education” and holding or posting signs that say, “We’ve Had Enough.”

“We’re madder than hornets, and the hornets are swarming today,” said Claudette Green, a retired teacher and principal.

The rally is happening after hundreds of teachers called in sick Friday to protest last-minute changes to their pension system.

Teacher unrest is not just limited to Kentucky. Educators in Oklahoma were gearing up Monday to march on their state capital as well.

Oklahoma teachers are demanding that lawmakers approve more education funding just days after the Legislature did just that.

Some teachers are saying the legislation signed by Gov. Mary Fallin last week was not enough. The measure increases taxes on cigarettes, fuel and oil and gas production to provide teachers with raises of about $6,100, or 15% to 18%.

Read the complete article here.

Frustrated Supreme Court Looks For A Solution To Partisan Gerrymandering

From today’s NPR News:

The Supreme Court justices seemed to grasp the problem of gerrymandering in oral arguments on Wednesday and that it will only get worse, as computer-assisted redistricting gets even more refined.

But they appeared frustrated over what to do about it — without becoming the constant police officer on the beat.

This case, involving a Democratic-drawn congressional district in Maryland, is essentially Act II of the gerrymandering play at the Supreme Court.

Act I opened the first week in October when the nine justices heard arguments in a case testing whether there is any constitutional limit to partisan gerrymandering — the practice of drawing legislative district lines to maximize and perpetuate the power of the incumbent party. At issue in the case is the Republican gerrymander of the Wisconsin Legislature — a design that delivered nearly two-thirds of the districts to the GOP even as Republicans lost the statewide vote.

In the Maryland case argued Wednesday, Michael Kimberly, the attorney for the Republican plaintiffs, contended that the map drawers succeeded in “rigging” an election, and the average American voter understands what’s going on. He dubbed it an affront to democracy.

That’s the kind of argument that Democrats have made about lots of other states throughout the country, where Democrats are underrepresented in both state legislatures and the U.S. House or Representatives.

Read the complete article here.

John (“Bomb Iran”) Bolton, the New Warmonger in the White House

From today’s The New Yorker Magazine:

Hawks are closing in on the White House. John Bolton, arguably the most abrasive American diplomat of the twenty-first century, will soon assume the top foreign-policy job at the National Security Council. As is his wont, President Trump announced yet another shakeup of his inner circle in a tweet late on Thursday. He dismissed General H. R. McMaster, who couldn’t survive a testy relationship with the impatient President despite his battle-hardened career and three stars on his epaulets. Trump tapped Bolton to take over. A former U.N. Ambassador currently best known as a Fox News pundit, Bolton has advocated far harder positions than Trump, including bombing campaigns, wars, and regime change. The late-day news flash sent chills across Washington, even among some Republicans.

With Mike Pompeo, the C.I.A. director, due to take over from the ousted Rex Tillerson at the State Department, the team deciding American actions across the globe will now be weighted by hard-liners and war advocates. Defense Secretary James Mattis, a retired marine general, is the most pragmatic policymaker left. What an irony. (And how long will Mattis stay? He was photographed having dinner with Tillerson on Tuesday.)

Bolton, a Yale-educated lawyer whose trademark is a white walrus mustache, championed the invasion of Iraq in 2003, which produced chaos followed by waves of extremist violence in the region. He also advocated international intervention to oust Syria’s Bashar al-Assad. He has repeatedly urged military action in Iran and North Korea, which he has called “two sides of the same coin.”

In an op-ed for the Wall Street Journal, written two months ago, Bolton condemned the 2015 nuclear deal with Iran as a “massive strategic blunder”—then went further. American policy, he wrote, “should be ending Iran’s 1979 Islamic Revolution before its fortieth anniversary,” next February. “Recognizing a new Iranian regime in 2019 would reverse the shame of once seeing our diplomats held hostage for four hundred and forty-four days. The former hostages can cut the ribbon to open the new U.S. Embassy in Tehran.”

Read the complete article here.

Tariffs bad news for American economy, including workers and consumers

From today’s The Hill:

There’s never a good time for tariffs. American workers and consumers will pay dearly for the Trump administration’s short-sighted action to protect an industry that shows no signs of needing any protection—the market values of the five largest steel companies have more than doubled over the past five years. Yet with a major infrastructure spending bill set to come through Congress over the next year, Trump’s tariffs are bad policy with even worse timing.

While a small amount of people will benefit from the proposed tariffs, many more will be harmed. The American steel industry employs roughly 140,000 workers, but industries that rely on steel to create their products—the ones who will suffer directly under the tariffs—employ 6.5 million workers. A recent study by the Trade Partnership found that the direct cost of tariffs on employment would be 18 jobs lost for every one created. On net, 470,000 Americans could lose their jobs.

The Trade Partnership’s study fits with the lessons of recent history. In 2002, President Bush instituted protective tariffs on foreign steel imports. After just a year in which steel prices rose by up to 50 percent, steel production was insufficient to meet demand, 200,000 Americans lost their jobs, and the tariff was dropped. A mere fifteen years later, these lessons have already been forgotten.

Nor will other countries sit idly by as Trump restricts trade. Well over 10 million Americans’ jobs are supported by exports—jobs which would be at risk in the case of a trade war. Already, the European Union has prepared a ten-page hit list of potential targets of retaliatory tariffs should Trump’s steel and aluminum tariffs go into effect.

American consumers will be harmed as well. A combination of new steel tariffs and lumber tariffs imposed last year mean that the cost of new homes is likely to continue rising—nearly half of steel imports go towards construction. Other American staples such as cars and canned beer are also set to see price spikes resulting directly from tariffs.

Read the complete article here.

Without no pay raise in years, Oklahoma Teachers Could Be the Next to Walk

From today’s New York Times:

When she woke up one morning last week, Tiffany Bell, a teacher at Hamilton Elementary School here, had $35 in her bank account.

On take-home pay of $2,200 per month, she supports her husband, a veteran who went back to school, and their three children, all of whom qualify for the Children’s Health Insurance Program, a federal benefit for low-income families. The couple’s 4-year-old twins attend a Head Start preschool — another antipoverty program.

Money is so tight for Ms. Bell, 26, that she had to think twice before spending $15 on Oreos for a class project, in which her third graders removed differing amounts of icing to display the phases of the moon.

She knew it would be hard to support a family on a teacher’s salary. “But not this hard,” she said.

When West Virginia teachers mounted a statewide walkout last month, earning a modest raise, it seemed like an anomaly: a successful grass-roots labor uprising in a conservative state with weak public sector unions. But just a few weeks later, the West Virginia action looks like the potential beginning of a red-state rebellion.

In Arizona, teachers clad in red, the color of the teacher protest movement, have conducted a series of #RedforEd demonstrations demanding higher pay. In Kentucky, teachers have organized rallies to protest proposed cuts to their pensions.

And in Oklahoma, where teachers have not had a raise from the state in a decade, they have vowed to go on strike on April 2 if the Legislature does not act to increase pay and education budgets.

Read the complete article here.