She was tall, blond, standing in the lobby of a swanky hotel in downtown New Haven. She came for the recruitment seminar by Morgan Stanley, the banking and investment firm. Like the other Yale University students who attended, she came to learn more about starting a lucrative career on Wall Street. And like most of the people I interviewed that evening, she seemed afraid.
Over the past two months, I’ve posted a few items about fraud and corruption in international adoption, a subject I’ve reported on extensively. Of the many articles I wrote on the topic, one story in particular broke my heart—and illuminated how such frauds occur. I’ve just heard, again, from one of the principals in the situation, and I’d like to post his letter. Before I do so, here’s a summary of—and links to—the articles that offer background.
Early Tuesday morning, surprised by a violent police raid on Zuccotti Park, dozens of Occupy Wall Street activists stayed and accepted arrest, a few chained themselves to a tree (which was cut down by police), and others fled, though not all fast enough to escape tear gas. Later that morning, protesters returned expecting the city would yield to a temporary restraining order allowing their camp, but police ignored the order. Tuesday evening, defeated in court, occupiers returned to Liberty Plaza, filing in one or two at a time past watchful police. There were new signs (“Curfew 10 PM”), new rules (no lying down), and a newly urgent question: What’s next?
Today—the same day that New York’s Mayor Bloomberg had his cops clear Zuccotti Park—Richard Fisher, the president of the Federal Reserve Bank of Dallas, called for breaking up America’s biggest banks, calling them “too dangerous to permit.” Also today, Warren Buffett, in an interview posted on the Business Wire of Berkshire Hathaway, his company, continued his criticism of American plutocracy. “Through the tax code, there has been class warfare waged, and my class has won,” Buffett said. “It’s been a rout. You have seen a period where American workers generally have gone no place, and where the really super rich as a group increased their incomes five for one in this rarified atmosphere.”
It was a busy weekend in Italian politics. The Chamber of Deputies passed the latest round of austerity measures, Prime Minister Silvio Berlusconi resigned, and President Giorgio Napolitano mandated Mario Monti, a respected economist and former EU commissioner, to form of a new government of national unity. The backdrop to all this frenzied activity was the country’s growing liquidity crisis: As Italy, the world’s third largest bond market, saw its borrowing costs rise to unsustainable levels in recent weeks, the rest of the planet could only watch in numb horror, as if observing a slow-motion car crash.
The recession officially ended nearly two and a half years ago, in June 2009, but for the generation of young adults who’ve been trying to take their first steps into adulthood, its effects could shape the future for decades to come.
Beware of overseas orphanages seeking donations. If you're not careful, you may become the victim of an orphanage scam—in which a savvy entrepreneur in a poor country hustles up some children so that he or she can ask developed-world humanitarians for money for the children's support. In some of the notorious cases, the orphanage director pockets the money while the children are left to starve or sold for sex. Few people know that they may be underwriting kidnapping or other modes of defrauding local families out of their children.
It’s clear that the markets don’t want Silvio Berlusconi to continue as Italy’s prime minister. They were cheered yesterday, briefly, when word got around that Berlusconi was stepping down, then subsided into their accustomed grumpiness when he denied it. (We know this by following the interest rates on Italy’s bonds, which are soaring, save during the brief moment when it was thought Berlusconi’s departure was nigh.)
Don’t miss The Washington Monthly’s article Taxing the Kindness of Strangers, in which a couple of bleeding-heart, middle-class liberals take in a foster care child—and discover the exhaustion and humiliations of trying to get the services the child needs.
In a way that we never really anticipated, welcoming Sophia into our home led us into the wilderness of red tape and frustration navigated every day by low-income parents who struggle to raise children with the critical help of government programs …
Last Thursday, I attended a conclave, sponsored by the Frederich Ebert Foundation, of about 20 American liberals (chiefly economists and union representatives) and 20 German social democrats (economists, unionists, Social Democratic Party officials, and a couple of stray businessmen) to see what we could learn from each country’s respective economic, social, and political arrangements. Early on, one German friend posed a question to us Americans: “Where’s your [i.e., America’s] learning curve?”
On October 27, after a 15-year fight, a federal judge approved a $1.25 billion settlement to black farmers discriminated against by the United States Department of Agriculture (USDA). In 1997, hundreds of farmers filed a class-action suit, in the case Pigford v. Glickman, alleging pervasive discrimination of black farmers by the USDA between 1981 and 1997. For decades, the department, which regularly gives loans to farmers to keep their business afloat, had refused loans to black farmers while awarding greater loans to white farmers of equal standing. Because of an inability to receive loans, many black farmers were forced to forfeit their farms or operate on a smaller scale. In 1999, the judge demanded a settlement for those with claims.
In 2005, when Local 6 won its first union contract at the boutique Time Hotel on West 49th Street, Angel Aybar, then a 21-year-old room attendant responsible for checking, cleaning, and restocking minibars, not only got a raise from $10 to $16.50 an hour; he became a member of a uniquely effective health plan. The New York hotel workers’ plan provides comprehensive coverage at its own health centers, including full dental and optical care, with no deductibles or co-pays and a core philosophy that emphasizes primary care, wellness, and prevention. Aybar even credits the health plan for his marriage.
Tomorrow, Ohioans will vote on Issue 2, a referendum to repeal an anti-union law that threatens to destroy public-sector unions in the state. Last spring, the governor and majority-Republican legislature passed Senate Bill 5, restricting public unions' ability to strike, collectively bargain with employers, and collect dues. In response, state Democrats and unions put the law on the ballot. Going into tomorrow's vote, it looks like labor will pull it off. A new survey from Public Policy Polling shows 59 percent of voters plan to reject SB 5 on Tuesday, while only 36 percent of voters will vote to approve it. It would be an immediate victory for workers' wages and job stability. As a crucial swing state, the win for labor also bodes well for Democrats in the 2012 elections.
We learn from Samuel Brittan’s column in the Financial Times today that when Winston Churchill was the U.K.’s chancellor of the exchequer in 1925, he wrote in a letter to a British Treasury official that he’d like to see “finance less proud and industry more secure.”
Peter Dreier at HuffPo has a cool graph showing how often the word “inequality” appeared in news coverage between October 2010 and October 2011. Guess what happens right about, oh, September 17? (Hat tip to Mother Jones).