Category Archives: Politics

Canadian universities sacrifice principles in pursuing collaborations #bced #bcpoli #education

CAUT, November 20, 2013– In their drive to attract new revenues by collaborating with corporations, donors, and governments, Canadian universities are entering into agreements that place unacceptable limits on academic freedom and sacrifice fundamental academic principles, according to a report released today by the Canadian Association of University Teachers (CAUT).

Open for Business: On What Terms examines twelve research and program collaboration agreements between universities, corporations, donors and governments to determine if universities have protected their academic integrity.

“Our findings should raise alarm bells on campuses across the country,” said CAUT executive director James Turk. “In the majority of the agreements we reviewed, universities have agreed to terms that violate basic academic values.”

According to Turk, seven of the twelve agreements provide no specific protection for academic freedom, and only one requires the disclosure of conflicts of interest. Only five of the agreements give academic staff the unrestricted right to publish their research findings and just half provide that the university maintains control over academic matters affecting staff and students.

“Universities have allowed private donor and corporate partners to take on roles that should be played by academic staff,” stated Turk. “They have signed agreements that side-step traditional university decision-making processes and undermine academic freedom.”

The report concludes by recommending a set of guiding principles for university collaborations to better protect academic integrity and the public interest.

“Collaborations can be beneficial to faculty, students, institutions, and the public, but only if they are set up properly,” Turk added.  “Universities owe it to the academic community and to the public to do more to safeguard the independence and integrity of teaching and research.”

The research and program collaborations examined in the report were:

  • Alberta Ingenuity Centre for In-Situ Energy (AICISE)
  • Centre for Oil Sands Innovation (COSI)
  • Consortium for Heavy Oil Research by University Scientists (CHORUS)
  • Consortium for Research and Innovation in Aerospace in Quebec (CRIAQ)
  • Enbridge Centre for Corporate Sustainability
  • Mineral Deposit Research Unit (MDRU)
  • Vancouver Prostate Centre
  • Balsillie School of International Affairs
  • Munk School of Global Affairs
  • Partnership: University of Ontario Institute of Technology/Durham College/Ontario Power Generation
  • Partnership: University of Toronto/Pierre Lassonde—Goldcorp Inc.
  • Partnership: Western University/Cassels Brock & Blackwell LLP

Copies of the report are available on-line.

The Canadian Association of University Teachers is the national voice of more than 68,000 academic and general staff at over 120 universities and colleges across the country.

– See more at: CAUT

Henry A. Giroux : : Intellectuals as subjects and objects of violence #truthout #educationbc

Henry A. Giroux, Truthout, September 10, 2013– Edward Snowden, Russ Tice, Thomas Drake, Jeremy Scahill, and Julian Assange, among others, have recently made clear what it means to embody respect for a public intellectual debate, moral witnessing and intellectual culture. They are not just whistle-blowers or disgruntled ex-employers but individuals who value ideas, think otherwise in order to act otherwise, and use the resources available to them to address important social issues with what might be called a fearsome sense of social responsibility and civic courage. Their anger is not treasonous or self-serving as some critics argue, it is the indispensable sensibility and righteous fury that fuels the meaning over what it means to take a moral and political stand and to continue the struggle to live in a substantive rather than fake democracy.

These are people who work with ideas, but are out of place in a society that only values ideas that serve the interests of the market and the powerful and rich.  Their alleged wrongdoings as intellectuals and truth tellers is that they have revealed the illegalities, military abuses, sordid diplomacy and crimes committed by the United States government in the name of security. Moreover, as scholars, scientists, educators, artists and journalists, they represent what C. Wright Mills once called the “organized memory of society” and refuse “to become hired technician[s] of the military machine.”[1]

There is a long tradition of such intellectuals, especially from academia and the world of the arts, but they are members of a dying breed and their legacy is no longer celebrated as a crucial element of public memory. Whether we are talking about W. E. B. Dubois, Jane Jacobs, Edward Said, James Baldwin, Murray Bookchin, Martin Luther King, Jr., Michael Harrington, C. Wright Mills, Paul Sweezy or Ellen Willis, these were bold intellectuals who wrote with vigor, passion and clarity and refused the role of mere technicians or lapdogs for established power. They embraced ideas critically and engaged them as a fundamental element of individual agency and social action. Such intellectuals addressed the totality of problems faced in the periods in which they lived, made their publications accessible, and spoke to multiple publics while never compromising the rigorous nature of their work. They worked hard to make knowledge, and what Foucault called, dangerous memories available to the public because they believed that the moral and cultural sensibilities that shaped society should be open to interrogation. They paved the way for the so-called whistle-blowers of today along with many current public intellectuals who refuse the seductions of power. Intellectuals of that generation who are still alive are now largely ignored and erased from the public discourse.

Intellectuals of that older generation have become a rare breed who enriched public life. Unfortunately, they are a dying generation, and there are not too many intellectuals left who have followed in their footsteps. The role of such intellectuals has been chronicled brilliantly by both Russell Jacoby and Irving Howe, among others.[2]  What has not been commented on with the same detail, theoretical rigor and political precision is the emergence of the new anti-public intellectuals. Intellectuals who act in the service of power are not new, but with the rise of neoliberalism and the huge concentrations of wealth and power that have accompanied it, a new class of intellectuals in the service of casino capitalism has been created.  These intellectuals are now housed in various cultural apparatuses constructed by the financial elite and work to engulf the American public in a fog of ignorance and free-market ideology. We can finds hints of this conservative cultural apparatus with its machineries of public pedagogy in the Powell Memo of 1971, with its call for conservatives to create cultural apparatuses that would cancel out dissent, contain the excesses of democracy and undermine the demands of the student free speech, anti-war and civil rights movements of the 1960s. What has emerged since that time is a neoliberal historical conjuncture that has given rise to a new crop of anti-public intellectuals hatched in conservative think tanks and corporate-driven universities who are deeply wedded to a world more fitted to values and social relations of fictional monsters such as John Galt and Patrick Bateman.

Unlike an older generation of conservative intellectuals such as Edward Shils, Gertrude Himmelfarb, Norman Podhoretz, William Buckley and Allen Bloom, who believed in reasoned arguments, drew upon respected intellectual traditions, affirmed the world of ideas, and engaged in serious debates, the new anti-public intellectuals are ideologues who rant, speak in slogans, and wage a war on reason and the most fundamental institutions of democracy extending from public schools and labor unions to the notion of quality health care for all and the principles of the social contract. We hear and see them on Fox News, the Sunday talk shows, and their writings appear in the country’s most respected op-ed pages.

Their legions are growing, and some of the most popular include Peggy Noonan, Thomas Freidman, Tucker Carlson, Juan Williams, S. E. Cupp and Judith Miller. Their more scurrilous hangers-on and lightweights include: Karl Rove, Bill O’Reilly and Rush Limbaugh. The anti-public intellectuals are rarely off-script, producing tirades against, among others: the less fortunate, who are seen as parasites; immigrants who threaten the identity of white Christian extremists; women who dare to argue for controlling their reproductive rights; and people of color, who are not American enough to deserve any voting rights. They deride science and evidence and embrace ideologies that place them squarely in the camp of the first Gilded Age, when corporations ruled the government, Jim Crow was the norm, women knew their place and education was simply another form of propaganda.  Much of what these Gilded Age anti-public intellectuals propose and argue for is not new. As Eric William Martin points out, “Many of the proposals themselves are old; not founding-fathers old, but early-20th-century old. They are the harvest of a century of rich people’s movements.”[3]

What the anti-public intellectuals never include in their screeds are any mention of a government corrupted by the titans of finance, banks and the mega rich, or the scope and extent of the military-industrial-academic-surveillance state and its threat to the most basic principles of democracy.[4] What does arouse their anger to fever pitch are those public intellectuals who dare to question authority, expose the crimes of corrupt politicians, and call into question the carcinogenic nature of a corporate state that has hijacked American democracy. This is most evident in the insults and patriotic gore heaped recently on Manning and Snowden, who are the latest in a group of young people whose only “crime” has been to expose the abusive powers of the national security state. Rather than being held up as exemplary public intellectuals and true patriots of democracy, they are disparaged as traitors, un-American or worse.

The role of the anti-public intellectuals in this instance is part of a much larger practice of self-deceit, self-promotion, and the shutting down of those formative cultures that give rise to intellectuals willing to take risks and fight for matters of freedom, justice, transparency and equality.  For too many intellectuals, both liberal and conservative, the flight from responsibility turns into a Faustian pact with a corrupt and commodified culture whose only allegiance is to accumulating capital and consolidating control over all aspects of the lives of the American public. Liberal anti-public intellectuals are more nuanced in their support for the status quo. They do not condemn critical intellectuals as un-American, they simply argue that there is no room for politics in the university and that academics, for instance, should save the world on their own time.[5] Such views disconnect pedagogy from any understanding of politics and in doing so make a false distinction between what Gayatri Spivak calls “the possibility of civic engagement and democratic action and teaching in the classroom.”[6]  She argues that “this is a useless distinction because I think what you have to realize is that it is with the mind that one takes democratic action.  . . . The Freedom to teach, to expand the imagination as an instrument to think “world” is thus deeply political. It operates at the root of where the ethical imagination and the political mingle.”[7]  C.W. Mills goes further and dismisses the attempt to take politics out of the classroom as part of the “cynical contempt of specialists.”[8]  He then offers a defense for what public intellectuals do by insisting that:

I do not believe that intellectuals will inevitably ‘save the world,’ although I see nothing at all wrong with ‘trying to save the world’- a phrase which I take here to mean the avoidance of war and the rearrangement of human affairs in accordance with the ideals of human freedom and reason. But even if we think the chances dim, still we must ask: If there are any ways out of the crises of our epoch by means of the intellect, is it not up to intellectuals to state them?[9]

Intellectuals should provide a model for connecting scholarship and public life, address important social and political issues, speak to multiple audiences, help citizens come to a more critical and truthful understanding of their own views and their relations to others and the larger society. But they should do more than simply raise important questions, they should also work to create those public spheres and formative cultures in which matters of dialogue, thoughtfulness and critical exchange are both valued and proliferate. Zygmunt Bauman is right in arguing that it is the moral necessity and obligation of the intellectual to take responsibility for their responsibility – for ourselves, others and the larger world. Part of that responsibility entails becoming a moral witness, expanding the political imagination, and working with social movements in their efforts to advance social and economic justice, promote policies that are just, and make meaningful the promises of a radical democracy.

What might it mean for intellectuals to assume such a role, even if in limited spheres such as public and higher education?…

Some have argued, wrongly in my estimation, that such intellectuals, because they address a broader audience and public issues, betray the scholarly tradition by not being rigorous theoretically. I think this is a massive misreading of much of the work published by such intellectuals, as well as a distortion of what is often published in online journals such as Truthout, CounterPunch, and Truthdig.  In fact, Truthout often publishes substantive theoretically rigorous articles under its Public Intellectual Project that are accessible, address important social issues, and at the same time, attract large numbers of readers. I am inclined to believe that at the heart of this misinformed critique is an unadulterated nostalgia for those heady days when one could publish unintelligible articles in small journals and make the claim, generally uncontested, that one was an intellectual because one wrote in the idiom of high theory. Those days are gone, if they ever really existed so as to make a difference about anything that might concern addressing significant public issues.

Read More: Truthout

Oka joins national protests against oil sands pipeline #idlenomore #ubced #yteubc #davidsuzuki

Photo by Arij Riahi, July 12, 2013

Catherine Solyom, Montreal Gazette, November 16, 2013– About 130 communities across Canada held simultaneous protests Saturday against the expansion of oilsands production and of pipelines to bring the oil east from Alberta, including a protest in Oka, where Kanesatake residents want to stop the reversal of Enbridge’s Line 9B pipeline.

Three buses left Montreal on Saturday morning to take part in the protest, where members of the Idle No More movement, representatives of Québec solidaire and prominent activist Ellen Gabriel addressed the crowd of a few hundred people.

Kanesatake Mohawks are opposed to the expansion of oilsands production in Alberta to the detriment of First Nations communities there, and to the reversal of the flow of Enbridge’s 9B pipeline through Mohawk territory.

The pipeline carries oil west, from Montreal to Westover, Ont., but Enbridge has applied to the National Energy Board to be allowed to ship oil from Western Canada to Montreal, where it would be processed in east-end refineries.

The NEB held public hearings on the project in Montreal and Toronto last month. A decision from the board is expected by January.

But after a year of demands by several Quebec municipalities, including the city of Montreal, and environmental groups for Quebec to hold its own hearings into the pipeline project, the Quebec government announced this week a parliamentary committee will hold hearings from Nov. 26 to Dec. 5, with a report to be submitted to the National Assembly by Dec. 6.

Opponents of the project, however, including the David Suzuki Foundation, the Association québecoise de lutte contre la pollution atmosphérique and Équiterre, are not satisfied. They said only the government will be able to ask questions of Enbridge, the hearings are to be held only in Quebec City and the issue of greenhouse-gas emissions from oilsands production does not appear to be among issues that will be discussed.

In Oka on Saturday, where banners compared Enbridge to the Montreal & Maine Railway, which had a deadly train crash in Lac Mégantic, Québec solidaire president Andrés Fontecilla told the crowd they want the parliamentary commission to be given a wider mandate to look into all the potential environmental consequences of the project.

“What a paradox to see a minister for the environment set aside questions related to oil spills and greenhouse-gas emissions,” Fontecilla said, adding between 1999 and 2010, Enbridge has been responsible for 804 spills that sent 25.7 million litres of oil into the environment. “These consultations won’t expose the whole truth to the Mohawk community of Kanesatake nor to the whole population. We expect something different from a sovereignist Parti Québécois government than to act as an accomplice to the oil industry and the Harper government.”

The “Defend Our Climate” protests, which took place in communities from Happy Valley-Goose Bay in Labrador to Tofino, B.C., were intended to show a wall of opposition from coast to coast against the continuing expansion of the oil industry to the detriment of future generations, said Jean Léger of the Coalition vigilance oléoduc (COVO).

“We, our children and our grandchildren will not sit idly by while the oil industry dictates the level and growth rate of greenhouse-gas emissions in this country,” Léger said.

Read More: Montreal Gazette

UBC Sauder admin should step up #ubcsauderschool #mba #bcpoli #bced #ubc #yteubc

Ubyssey Staff, The Ubyssey, November 6, 2013– Sauder School of Business dean Robert Helsley said at a press conference on Monday that he was still hopeful his students would fund the remaining $200,000 of the $250,000 commitment he coerced from the CUS leadership and told the the media about on Sept. 18 — before anyone had a chance to vote on whether to put the quarter of a million dollars toward unclear goals.

Since students just voted down the funding by a margin of three to one, this seems unlikely. And it’s understandable why they rejected the referendum: it’s a vague commitment to a vague and unnecessary position that was conceived only to placate the local and national media who pounced on Sauder after The Ubyssey broke the CUS FROSH rape cheer story.

This crude public relations stunt has failed. Stop trying to make fetch happen, Robert.

Anything Sauder does in response to the chant and the cultural problems it points to should be a well thought out and meaningful contribution to changing the atmosphere around sexual violence on campus and in the business school. The proposed curriculum changes Helsley has announced will require followup, but they seem like a good start.

Sauder also said they will bridge the gap in funding between what the CUS can pledge over their objection of their members — $50,000 this year, $100,000 over the next two years if they choose — and how much it would cost to hire a new counsellor, or whatever the money was planned to go toward. We’ll see.

“We’re looking for some leadership,” Helsley told the media.

Us too. Perhaps it’s time to look in the mirror, Bob.

Read More: The Ubyssey

#IdleNoMore second wave planned for winter #occupyeducation

Charles Hamilton, Saskatoon StarPhoenix, October 13, 2013– Supporters of Idle No More say the movement is stronger than ever, even though it has largely disappeared from the media spotlight.

“Idle No More is not dead. It never was,” said Max FineDay, president of the University of Saskatchewan Students’ Union.

“Just because you don’t see flash mobs in the middle of the street or in malls doesn’t mean the First Nations community isn’t working toward nation building, revitalizing language and culture, and all these things Idle No More stands for.”

FineDay was one of about 200 supporters who showed up Oct. 7 for a round dance on the university campus, which was organized via social media. The Idle No More movement spread to communities across Canada last winter, as aboriginal groups protested the federal government’s omnibus Bill C-45, which they say infringed on their sovereignty and relaxed important environmental protections. It passed, but organizers at the round dance said the movement is bigger than any one bill.

There are still bills going through Parliament that affect indigenous sovereignty and affect the lands and the water and that will affect all of us

“There are still bills going through Parliament that affect indigenous sovereignty and affect the lands and the water and that will affect all of us,” Sylvia McAdam, one of the four women who founded Idle No More, told the crowd after the dance.

The Saskatoon event was one of more than 50 actions that took place across the country and in the United States to mark the 250th anniversary of King George III’s Royal Proclamation, which set out policy for the Crown’s relationship with aboriginal people in North America.

The 1763 proclamation set rules for European settlement in North America, recognized First Nations’ land rights and laid the groundwork for the treaty process. Even though the Royal Proclamation was of special significance for aboriginal peoples living on the land that would become Canada, supporters and organizers say Idle No More now has global reach.

“Over the summer, the movement gained momentum on a global level,” said Alex Wilson, an Idle No More organizer and professor at the University of Saskatchewan.

“I think one of the strengths of the movement is that each community can look at those global issues and can take action in their own way.”

Read More: Saskatoon StarPhoenix

TAKE BACK THE NIGHT : : UBC RALLY AND MARCH SPEAK OUT #ubc #bcpoli #bced #education #yteubc

TAKE BACK THE NIGHT
UBC RALLY AND MARCH SPEAK OUT
WEDNESDAY OCTOBER 30, 2013
5 PM
University of British Columbia, Vancouver
Unceded Coast Salish Territories

We will march to specific locations on campus, briefly state how the location relates to persisting rape culture on campus (with reference to its colonial history), and have an ongoing open mic for people to speak about their experiences. We march to heal, resist, and speak out (side note: if you have knowledge about the histories of these locations or would want to speak to them please contact us, we need your help here).

If you are unsure of speaking at the march/rally about your experiences with rape culture at UBC, PLEASE understand that you will be supported and heard. You will not be standing alone at any point, this march/rally is for those of you who are constantly silenced and harmed at this school. Take Back the Night is for you to reclaim voice in spaces that keep trying to suppress it, spaces keeping you unsafe.

If you want to speak at the march/rally, please message us or send us an email ubctakebackthenight@gmail.com. This is by no means necessary if you choose to speak at the march, it just helps us a lot for planning and time purposes

This TBTN event places great emphasis on history—both personal and societal. The march/rally will be a highly emotional and potentially triggering event; we will have crisis relief support for those who need it.

*very* rough schedule based on suggested locations (still working on security and accessibility):
5:00 Museum of Anthropology, Opening
5:40 Place Vanier Residence
6:10 Henry Angus Building (Sauder)
6:50 Fraternity Village
7:15 RCMP Campus Headquarters
7:40 Thunderbird Sports Centre
8:00 Engineering
8:25 Allard Hall (Law Building), Closing
8:30 Debriefing Space and Discussion, SUB 212, for female and woman identified people

UBC, CAMPUS SECURITY, AND THE RCMP: STOP BLAMING THE VICTIMS AND SURVIVORS OF SEXUAL ASSAULT!

Read More: Take Back the Night Rally at UBC in Protest of Six Recent Sexual Assaults on Vancouver Campus

The New Academic Labor Market and Graduate Students: new issue of Workplace #occupyeducation

The Institute for Critical Education Studies (ICES) is extremely pleased to announce the launch of Workplace Issue #22, “The New Academic Labor Market and Graduate Students” (Guest Editors Bradley J. Porfilio, Julie A. Gorlewski & Shelley Pineo-Jensen).

 The New Academic Labor Market and Graduate Students

Articles:

  • The New Academic Labor Market and Graduate Students: Introduction to the Special Issue (Brad Porfilio, Julie Gorlewski, Shelley Pineo-Jensen)
  • Dismissing Academic Surplus: How Discursive Support for the Neoliberal Self Silences New Faculty (Julie Gorlewski)
  • Academia and the American Worker: Right to Work in an Era of Disaster Capitalism? (Paul Thomas)
  • Survival Guide Advice and the Spirit of Academic Entrepreneurship: Why Graduate Students Will Never Just Take Your Word for It (Paul Cook)
  • Standing Against Future Contingency: Activist Mentoring in Composition Studies (Casie Fedukovich)
  • From the New Deal to the Raw Deal: 21st Century Poetics and Academic Labor (Virginia Konchan)
  • How to Survive a Graduate Career (Roger Whitson)
  • In Every Way I’m Hustlin’: The Post-Graduate School Intersectional Experiences of Activist-Oriented Adjunct and Independent Scholars (Naomi Reed, Amy Brown)
  • Ivory Tower Graduates in the Red: The Role of Debt in Higher Education (Nicholas Hartlep, Lucille T. Eckrich)
  • Lines of Flight: the New Ph.D. as Migrant (Alvin Cheng-Hin Lim)

The scope and depth of scholarship within this Special Issue has direct and immediate relevance for graduate students and new and senior scholars alike. We encourage you to review the Table of Contents and articles of interest.

Our blogs and links to our Facebook timelines and Twitter stream can be found at https://blogs.ubc.ca/workplace/ and https://blogs.ubc.ca/ices/

 

Thank you for your ongoing support of Workplace,

Sandra Mathison, Stephen Petrina & E. Wayne Ross, co-Directors
Institute for Critical Education Studies
Critical Education

Quebec intellectuals denounce Charter of Values

CTV Montreal, September 6, 2013– A group of 91 Quebec thinkers – mostly francophone academics – have signed a letter denouncing the PQ’s charter of values that is expected to be debated at the National Assembly as soon as next week.

Although the exact details of the soon-to-be proposed legislation remain unknown, the group is clear in its rejection of the project, as evidenced in its 1,000 word manifesto entitled “Our values exclude exclusion.”

The letter begins emphatically: “We are against any proposed Charter of Quebec Values. We share values such as equality between men and women and the secular nature of the state and public institutions.

The signatories include McGill academics Abby Lippman and Ethel Groffier, writer Norman Nawrocki and activist Will Prosper.

The letter defends what it calls “the rejection of racism,” and calls the bill a “repressive and divisive project.”

Read more: CTV Montreal

What Contingent Faculty Can Learn From Fast-Food Workers #bced #yteubc

Brian Haman, Counterpunch, August 30, 2013 — It has become a truism in American higher education: seventy-five percent of undergraduate courses at U.S. colleges and universities are taught by contingent faculty1, most of whom lack health insurance,2carry onerous student debt,3 receive poverty-level compensation, and often rely on public assistance such as food stamps in order to make ends meet.4 This percentage translates into more than 1.3 million highly-educated, qualified, and competent, but poorly-paid, undervalued, and underappreciated American workers. Conversely, administrative costs at colleges have soared in recent years. The academic managerial class (provosts, vice and associate vice provosts, deans, presidents, vice presidents, etc.) routinely earn six-figure salaries, often with generous perks including vacation homes.5

According to U.S. Education Department data, “U.S. universities employed more than 230,000 administrators in 2009, up 60 percent from 1993, or 10 times the rate of growth of the tenured faculty, those with permanent positions and job security”.6 Most new hires on American campuses never even set foot in the classroom simply because they are not teachers but administrators.7 Furthermore, the cost of a college degree in the U.S. has increased by 1,120 percent since 1978.8 The overwhelming majority of the academic labor force (to say nothing of students, who voluntarily submit to indentured servitude in the form of student debt) suffers disproportionately due to enormous concentrations of wealth in the hands of a small and privileged elite.

We find a similar dynamic in other segments of the American labor force, especially in the fast-food industry. Fast-food workers endure low wages (and indeed wage stagnation), few if any benefits, and a scarcity of full-time contracts.9 The marginalized and contingent workforce at places such as McDonald’s, Wendy’s, and KFC share similar concerns and face similar challenges such as starvation wages, reliance on government assistance, and job insecurity that academic workers endure at some of our nation’s leading universities, including Harvard, Yale, and Michigan.10 However, unlike the academy, the difference between CEO compensation and fast-food workers’ pay is truly breathtaking. David C. Novak, CEO of Yum Brands, which includes chains such as KFC and Pizza Hut, received a total annual compensation of $29.67 million in 2012.11

According to the Wall Street Journal, “Last year, McDonald’s gave [Dan] Thompson a compensation package worth $13.8 million, or more than 558 times what McDonald’s expects employees to make — from two jobs”.12 The national minimum wage in the U.S. is $7.25 per hour and the top five largest employers (McDonald’s is among them) pay its workers at or near the minimum wage. We may reiterate the conclusion of the previous paragraph with one minor revision: The overwhelming majority of the fast-food labor force suffers disproportionately due to enormous concentrations of wealth in the hands of a small and privileged elite.

When faced with such systemic and structural inequalities, how have fast-food workers responded? The answer is quite instructive. They have staged local protests and walkouts in cities across the country and are planning a national walkout in order to fight for a higher minimum wage. As Professor Anne Kalleberg has noted, however, the protests are not union-sponsored but socially organized.13 Fast-food workers, just like their academic counterparts, often struggle to unionize due, at times, to explicit efforts by their employers to prevent them from doing so. Nevertheless, despite such grim circumstances, fast-food workers have pushed their plight quite successfully into the national consciousness just as Occupy movements have done.

Their campaign, entitled “Fast Food Forward”, articulates their purpose with self-assured clarity: “Fast Food Forward joins the momentum of the Black Friday strikes and other low-wage worker struggles to build community engagement, hold corporations and their CEOs accountable, and to raise wages so that all Americans can prosper”.14 Despite its origins in New York City, the movement is gaining momentum; many are now calling for a nationwide strike to take place on 29 August and even President Obama has addressed the issue.

How is all of this relevant for the contingent academic workforce? Well, for one thing, there is strength in numbers. Collective action is an especially effective instrument both to challenge and redress structural inequalities. If, as the aforementioned statistics indicate, seventy-five percent of undergraduate courses at U.S. colleges and universities are taught by adjuncts, then a walkout would bring the academy to a grinding halt. If fast-food workers with fewer career opportunities, less educational attainment, more grueling working conditions (e.g. fast-paced environments, high-temperature workplaces, etc.), and far more to lose can risk their only source of income for themselves and their families for the sake of the collective good, then what is preventing adjuncts from doing the same? The short answer is simple: nothing.

Alas, many adjuncts enable and perpetuate the “system” through their deferential subservience simply by participating in it (recent unionization efforts at Georgetown and elsewhere duly noted). As universities and departments downsize and the numbers of Ph.D. graduates outpace available jobs, many adjuncts accept grossly underpaid positions with long working hours and virtually no benefits with the expectation that a foot in the door will somehow lead to the promised land of a tenure-track position. Supply and demand dictates otherwise and the vast battalions of well-paid academic administrators are more than happy to continue to exploit such naïve and misguided expectations in the name of efficiency.

Surely, too, graduate programs inculcate (and indeed indoctrinate) students in the ways of the academy: publish or perish and do not rock the proverbial boat. On the one hand, academics are expected to challenge scholarly orthodoxies in their respective fields through creative, innovative, interdisciplinary scholarship. And yet in other aspects of their lives, namely those that deal with the contractual conditions under which they labor, they must conform and remain obedient in order to secure employment. It becomes an insidious and corrosive form of selection in which independent thought is filtered out of a system that was designed to protect it. Contradictions become self-evident: the imposition of an authorial canon in the humanities is anathema, whereas wage slavery becomes institutionalized.

Read more: Counterpunch

From McJob to McAdemic: Labor activism and unrest as economy tanks #bced #yteubc

(AP Photo/Richard Drew)

The walkout by service workers in the US on August 29 marked a number of efforts over the past year to organize and make a statement on cost of living ground lost amidst inflation and a tanking economy. Economic reports in Canada and the US for August merely indicate the long trend toward part-time McJobs as youth are more and more often finding that their competition is their grandmothers or seniors unable to make it without additional income. Requests by the workers is an increase in the federal minimum wage from the current $7.25/hr to $15/hr and the right to unionize without interference from employers. Obama democrats are proposing a modest increase to $9/hr.

Like the McJob trend, the large balance of college and university jobs are now part-time and low wage. Many with the McAdemic job, defined by low pay and limited prospects, work just above minimum wage when it’s all said and done. Although among the most exploited of part-time workers given their expertise and education debt-load, adjunct, contingent, or sessional faculty members in Canada and the US retain an element of autonomy for their job. Whether with a modicum of a wage per course or a piecemeal per student wage for online instructors, many by and large take home a pay that hovers just above minimum wage after hours in are calculated. Unlike the basic McJob, which has a definitive beginning and end to the workday, the academic job has no limits to the amount of time expended to prepare, teach, counsel, and assess. And given that, like for most with a McJob, there is a dignity to a McAdemic job and most put in long hours (e.g., 10x contact hours required) that knowingly reduce their wages to something just above the minimum.

In BC, the minimum wage is merely $10.25, which today after exchange and purchasing power parity is about $7.25/hr USD. At UBC, the step 1 salary for contingent or sessional faculty is $5,970 per 3 credit course (about $4,305 USD after exchange and PPP). Comparisons of McAdemic job with McJob and of stratification within the two sectors are not exaggerated, as Postdoctoral Fellow Brian Haman wrote in “What Contingent Faculty Can Learn From Fast-Food Workers:”

 As universities and departments downsize and the numbers of Ph.D. graduates outpace available jobs, many adjuncts accept grossly underpaid positions with long working hours and virtually no benefits with the expectation that a foot in the door will somehow lead to the promised land of a tenure-track position. Supply and demand dictates otherwise and the vast battalions of well-paid academic administrators are more than happy to continue to exploit such naïve and misguided expectations in the name of efficiency…. Clearly, something must change. It seems, therefore, sensible, entirely feasible, and just to stand in solidarity with fast-food workers, many of whom earn as much as adjuncts. Their struggles are our struggles. Moreover, their lessons can be our lessons. The efficacy and consequences of collective action are unambiguous.

Tell the Dept. of Ed to Drop Sallie Mae!

Even in the face of 14,000 activists urging Sallie Mae to break up with ALEC, more news articles exposing their relationship, and my personal phone call this week to Sallie Mae executive Martha Holler asking the company directly to end ties with the powerful “Stand Your Ground,” anti-democratic, pay-to-play front group for right-wing corporate interests… Sallie Mae just won’t quit ALEC.

But that membership has its price. By not formally disclosing its role in ALEC to the Department of Education, Sallie Mae is in breach of its contract with the government.

Since 2009 Sallie Mae has had a contract with the Department of Education to administer federal student loans. Sallie Mae has netted over $300 million in taxpayer money through this lucrative contract while simultaneously lobbying against affordable higher education.1

Join us in demanding that the Department of Education enforce the “conflict of interest” disclosure clause in the contract. Tell U.S. Secretary of Education Arne Duncan to drop Sallie Mae!

Beyond its membership in ALEC, Sallie Mae is also likely in breach of its Department of Education contract because of two major legal violations. This month, public disclosure reports revealed that Sallie Mae has been accused of overcharging active duty service members on their student loan interest rates.2 News reports confirm that federal regulators will file a formal complaint against Sallie Mae for these violations within weeks, and a Department of Justice investigation of Sallie Mae is underway. As if that weren’t enough, Sallie Mae has already faced numerous class action lawsuits alleging predatory and racially discriminatory lending and was issued a cease-and-desist letter from the FDIC for redlining.3

We think the government shouldn’t be in business with a company whose lending practices are shameful and illegal. And even the Secretary of Education agrees. During a meeting earlier this year where students were raising concerns about Sallie Mae, Secretary Duncan personally told us, “We don’t want to do business with people who violate the law.”4

Tell Arne Duncan to live up to his words and terminate the department’s contract with Sallie Mae NOW!

Our urgency is real. In two weeks, students around the country will be arriving on campuses, and soon after they’ll receive information on who will be managing their loans. That means the Department of Education has a narrow window to end its contract with Sallie Mae and reallocate loan administration and collection duties to another bank before the school year begins.

Sallie Mae is supposed to be in the business of making education a reality. Instead the company profiteers off its student borrowers by granting risky loans with high interest rates. Last year, U.S. student debt hit $1 trillion – meanwhile, Sallie Mae cleared $1 billion in profits. So to recap: Sallie Mae is taking advantage of taxpayers, students, members of the military, and people of color.

The government shouldn’t be outsourcing loan administration jobs to a big bank in the first place, and it definitely shouldn’t be awarding contracts worth hundreds of millions of taxpayer dollars to a shady company like Sallie Mae.

Even though its own policies dictate that it should drop Sallie Mae, the Department of Education won’t end this contract without public pressure. So we’re pulling out all the stops. We’re mobilizing a coalition of consumer watchdogs, military and veterans’ advocates, student activists, and labor groups to join us. We’re reaching out to Members of Congress and have put even more journalists on their trail. Can we count on you to encourage the Department of Education to do the right thing and stop doing business with Sallie Mae?

Send your message today to ensure Sallie Mae will be held accountable.

Sophia Zaman
USSA President

1 http://www.usaspending.gov
2 http://www.nytimes.com/2013/08/10/us/sallie-mae-to-be-accused-of-overcharging-military-personnel-on-loans.html?_r=0
3 http://www.fdic.gov/bank/individual/enforcement/2008-08-10.pdf
4 http://www.aft.org/newspubs/news/2013/051413studentdebt.cfm

#OutWithStudentDebt video project

I thought I only had to come out once!  In 1996, at 22 years of age, I came out of the closet – the most liberating thing I’ve ever done.  Now, I’m coming out again:  My name is Robert Applebaum and I have $88,000 worth of student debt!

We’ve recently partnered with over a dozen organizations to launch what we’re calling the #OutWithStudentDebt video project.  The goal of this project is to collect as many of your 1-2 minute videos that will be featured on our websites, with the goal of shedding the stigma of shame and embarrassment that comes along with being buried under mounds of student loan debt.

Please click on the graphic above to view StudentDebtCrisis.org’s Artistic Director, Aaron Calafato’s sample/instructional video and then learn how to go about submitting your own #OutWithStudentDebt video!

Over the course of the next 3 weeks, we will be collecting these #OutWithStudentDebt stories and featuring them on our website, after which, we’ll be asking the general public to vote for their favorites.

Please be sure to follow the instructions for uploading your video so that it can be properly entered into the #OutWithStudentDebt Video Project.

Be honest.  Be concise.  Be brave!  You are NOT alone!  You are in the company of nearly 40 million Americans who are similarly struggling under the weight of their own student loans.  Please join us by creating your own video and telling your personal story.  Let’s put human faces on the ever-growing crisis of over $1.2 Trillion in outstanding student loan debt.

You can also help out by spreading the word – simply click here to tweet about the #OutWithStudentDebt Project, or click here to post it to Facebook.

Thank you, as always, for your continued support.  Now, let’s all come #OutWithStudentDebt!

Sincerely,

Rob, Natalia, Kyle, Aaron & The StudentDebtCrisis Team.
Follow us on Twitter
Join us on Facebook

P.S. We’d like to give a special thanks to Contest.is for providing the platform for the #OutWithStudentDebt Video Project!

“Let Freedom Ring” events for culmination of 50th Anniversary of March on Washington and MLK dream

AP/ Civil rights leader Martin Luther King, Jr., waves to supporters from the steps of the Lincoln Memorial 28 August, 1963, on The Mall in Washington, DC, upon giving the ‘I Have a Dream’ speech.

The King Center, July 16, 2013– The King Center and the 50th Anniversary Coalition are calling on people and organizations across America to help culminate the 50th anniversary of The March on Washington and Dr. Martin Luther King, Jr.’s “I Have a Dream” speech with “Let Freedom Ring” bell-ringing events at 3:00 p.m. Eastern Standard Time on August 28th, a half-century to the minute after Dr. King delivered his historic address. In other nations, there will be bell-ringing ceremonies at 3:00 p.m. in their respective time zones.

“We are calling on people across America and throughout the world to join with us as we pause to mark the 50th anniversary of my father’s ‘I Have a Dream’ speech with ‘Let Freedom Ring’ bell-ringing events and programs that affirm the unity of people of all races, religions and nations,” said King Center C.E.O. Bernice A. King. “My father concluded his great speech with a call to ‘Let freedom ring,’ and that is a challenge we will meet with a magnificent display of brotherhood and sisterhood in symbolic bell-ringing at places of worship, schools and other venues where bells are available from coast to coast and continent to continent.”

Local groups are encouraged to present diverse commemorative programs, which bring people together across cultural and political lines to celebrate the common humanity in creative and uplifting ways in the spirit of the dream. Ms. King especially urges that all of the programs involve children and young people, since children are mentioned in several passages of her father’s “I Have a Dream” speech.

There will be a “Let Freedom Ring” Commemoration & Call to Action” on the National Mall in Washington, D.C. on August 28th.  The program begins with an interfaith service from 9:00 a.m. to 10:30 a.m. at the Martin Luther King, Jr. Memorial on the Tidal Basin, followed by the “Let Freedom Ring” Commemoration and Call to Action at the nearby Lincoln Memorial from 1:00 p.m. to 5:30 p.m. that includes the bell-ringing ceremony at 3:00 p.m.

Groups are already planning bell-ringing events in places as diverse as Concord, New Hampshire, Allentown PA, Lutry Switzerland and Tokyo Japan. Governors of the 50 states have been asked to support the bell-ringing, and many have already responded enthusiastically, with more expected to join the effort.  The King Center requests that all groups planning programs submit a brief description of your 50th anniversary ‘Let Freedom Ring’ bell-ringing event to website@thekingcenter.org.

“Let Freedom Ring” will conclude seven-days of events commemorating the March on Washington and Dr. King’s Dream speech. For the millions who can’t come to Washington, D.C. for the seven-day program, the local ‘Let Freedom Ring’ programs will provide a unique opportunity to get involved in a poignant nation-wide and global day of unity in their respective home towns.

“Our World, His Dream: Freedom – Make it Happen” is the theme for the “Let Freedom Ring” commemoration and call to action.  This theme is undergirded by the three sub-themes: “Freedom to Prosper in Life;”  “Freedom to Peacefully Co-Exist;” and “Freedom to Participate in Government.”

For more information about the 50th Anniversary of the I Have A Dream speech, please contact The King Center (Atlanta, GA) at 404-526-8944, sklein@thekingcenter.org or visit the websitewww.mlkdream50.com.  To stay in touch with updated details, participate with the following:  Twitter twitter.com/DCMARCHMLK50; Facebook www.facebook.com/Mlkdream50; Pinterest pinterest.com/mlkdream50/; and Intstagram mlkdream50.  The Hashtag is  #mlkdream50.

George Mason University course to examine Trayvon Martin case

Holly Hobbs, Fairfax Times, July 18, 2013– As the nation reflects on the verdict in the trial of George Zimmerman in the shooting of Trayvon Martin, a college course this fall will offer an academic look at the case’s impact outside of the courtroom.

George Mason University Professor Rutledge Dennis, a professor of sociology and anthropology, will teach “From Homer Plessy to Trayvon Martin: Issues in Race, Culture, and Politics,” which he said would look at historic cases involving race and their impacts on society. The course title has been abbreviated on Mason’s website: Plessy to Martin: Race and Politics.

“I hope our students will get out of it a sense of how racial, political and cultural issues impact how we interact,” Dennis said.

While the course aims to introduce students to historic themes through a contemporary example, Dennis and the university garnered much criticism online, mostly from conservative bloggers and media outlets like The Daily Caller, The National Review and Red Alert Politics.

“I have received a lot of nasty, hateful emails about this course because people assume it’s a course [only] about Trayvon Martin,” Dennis said. “Trayvon Martin is just one case.”

The course begins with coverage of the landmark 1896 Plessy v. Ferguson case, which upheld “separate but equal” racial segregation of public facilities. Students also will study other historic cases, such as the 1931 arrests of the “Scottsboro Boys,” a group of nine black teenagers who were accused of raping two white women in Alabama. The course includes a number of contemporary high-profile trials like the 1992 trials of Los Angeles police officers accused of beating construction worker Rodney King and the murder trial of former NFL running back O.J. Simpson, which ended in 1995.

Many of the trials included in the course syllabus occurred before most current undergraduate students were born. The Trayvon Martin case offers a current example and context for undergrads, Dennis said.

“The Trayvon Martin case is important academically because race and issues around race are academic issues,” Dennis said, adding that the humanities often study gender and class; so why not race? “While this case did not begin as a racial case, it ended as one.”

Mason Provost Peter Stearns says criticism of curriculum is not a common occurrence for the university, but it is also not unheard of.

“Regularly, university faculty deal with topics that have different viewpoints. [Previously] George Mason University has been accused of being too liberal and too conservative,” he said. “One of the challenges in teaching is you want to make sure students understand the historical context and themes. But we also want to make sure they can apply this knowledge to current issues.”

Dennis said he hopes his course will offer students the opportunity to debate why Martin’s death and Zimmerman’s trial sparked intense media coverage and debate.

“I think it got attention for many people because we have an unarmed teenager who was shot by someone of another ethnic group,” Dennis said. “Young black men have been taken advantage of by the system. … And this becomes, for many, another example of a young black man being taken advantage of by the system.”

As of Wednesday, 16 students had registered for Dennis’ class (AFAM 390), which is cross-listed as both an African and African American Studies and Sociology/Anthropology course.

#IdleNoMore torches still burning : : Sovereignty Summer events planned

Jonathan Charlton, The StarPhoeinix, June 17, 2013–  The Idle No More movement may have slipped off the front pages, but there is still support below the surface.

“I think we’re at a place where we’ve generated momentum, got people around the world excited, have people active in their own communities and on a global level,” said Alex Wilson, an education professor at the University of Saskatchewan.

Wilson, Sheelah McLean, Erica Lee and Sylvia McAdam, leaders of Idle No More, gave a seminar about the movement and their personal experiences at the Native American and Indigenous Studies Association (NAISA) conference Saturday.

It was one of the best-attended talks of the week and they received a standing ovation. Other academics posed for pictures with them, bought Idle No More T-shirts and asked the women to sign them.

The movement is ambitious and wide in scope, but the women said it focuses on environmental, democratic and social justice issues.

“The end goal will be the day after there is no racism, the day after there’s no sexism, the day after there’s no homophobia, the day after there’s no systemic inequalities in society. It’s ongoing and ever changing,” Wilson said.

Idle No More has more events planned for what’s being called Sovereignty Summer.

“Really Sovereignty Summer is about encouraging people to do events in their own communities in their own way,” said Lee, a 23-year old youth representative, “because part of Idle No More is about encouraging people to break out of this idea of pan-Indianism, like we’re all the same monolithic tribe.”

But they also want to educate the Canadian public about aboriginal issues and improve relations between the two groups.

“For so long, we’ve only been told one side of Canadian history – so it’s not people’s fault for being ignorant of indigenous issues, because they’re not taught in school,” Lee said.

 

Read More: The StarPhoenix

First Nations leaders demand apology for nutritional experiments

CBC News, July 17, 2013– First Nations leaders are demanding an apology from the federal government after it was revealed that Canada ran nutritional experiments on malnourished aboriginal children and adults during and after the Second World War.

Recently published research by Canadian food historian Ian Mosby has revealed that at least 1,300 aboriginal people — most of them children — were used as test subjects in the 1940s and ’50s by researchers looking at the effectiveness of vitamin supplements. [See “Administering Colonial Science: Nutrition Research and Human Biomedical Experimentation in Aboriginal Communities and Residential Schools, 1942–1952″]

The research began in 1942 on about 300 Cree in Norway House in northern Manitoba. Plans were later developed for research on about 1,000 hungry aboriginal children in six residential schools in Port Alberni, B.C., Kenora, Ont., Shubenacadie, N.S., and Lethbridge, Alta.

Vivian Ketchum, whose mother attended St. Mary’s Residential School in Kenora, told CBC News that hearing of the experiments has brought her sorrow and anger to a new level. “Immediately my thoughts were to my parents. Like, I thought the residential school issues [were] bad enough, and now this on top of it?” Ketchum said Wednesday.

Mosby said his research puts the spotlight on a little-known event that was perhaps one of the most disturbing aspects of government policy toward aboriginal people. “It shows Canadians the mentality behind Canada’s Indian administration during this period,” he said. “It seems that little good came out of the studies in terms of scientific knowledge.”

‘Abhorrent and completely unacceptable’

In a statement, the federal government said officials are looking into the matter. “If this story is true, this is abhorrent and completely unacceptable,” the statement read in part.

Read More: CBC News

Third General Assembly, Ontario Common Front

THIRD GENERAL ASSEMBLY, ONTARIO COMMON FRONT

August 19, 2013 9am – 5pm Holiday Inn Yorkdale
3450 Dufferin St, Toronto

Student, social movements and labour activists from across Ontario will come together to build alternatives to a right-wing agenda of austerity, poverty and repression. We believe a future is possible that respects democracy, environment, land and human rights. But we need deep organizing. Speakers include:

  • Dr. Henry Giroux, Global Television Network Chair in Communications studies at McMaster University. In 2004, Dr. Giroux wrote the book, The Terror of Neoliberalism.
  • Brigette DePape, Ottawa page that raised the ‘Stop Harper’ in the Senate Chamber during the Throne Speech in Ottawa.
  • Missy Elliott is Haudenosaunee, Tuscarora Nation Turtle clan from Six Nations of the Grand River Territory. She is 22 years old and has been protecting the land, building the nation, and organizing in her community since she was 13. She co-founded Spirit of the Youth Working Group in 2004 which organized 4 Unity Runs from 2004-2007.
  • Deena Ladd, Coordinator of the Workers’ Action Centre in Toronto. She is currently busy leading the provincial minimum wage campaign.
  • Pam Frache, Graduate student in labour studies at McMaster University and former Director of Education|Research at the Ontario Federation of Labour

For more information: http://weareontario.ca/index.php/ontario-common-front-general-assembly-august-19-2013/

US Congress Fails Student Loan Borrowers Once Again

After Congress failed to keep interest rates on federally subsidized Stafford Loans from doubling on July 1st, just yesterday, the U.S. Senate failed to take up a bill that would have reset interest rates at 3.4% for another year, falling short of the 60 votes needed to begin debate.

Simply put, Congress has, once again, failed the American people.  But this isn’t the end of the fight –this is just the beginning.

Throughout this debate, many of you have asked “What about me?” as the vast majority of you wouldn’t be affected by this rate hike anyway.  Well, we’ve heard your voices and we think you’re absolutely right!  The recent debate over interest rates has sucked most of the air out of what should be a much larger debate over how we fund higher education in America.

Because Congress has remained tone-deaf to the will of the American people, we need to raise our voices even louder!  To that end, we’ve started a new petition, demanding that Congress take up Comprehensive Student Debt reform.  Rather than focusing on just one small piece of the overall student debt crisis, we’re asking that Congress take a holistic approach to the issue and completely overhaul the student lending system.  Among the reforms we’re asking for in this new petition are:

  • Restoration of basic consumer protections, such as bankruptcy rights and statutes of limitations on the collections of student loan debt;
  • The right to refinance student loans so as to allow borrowers to take advantage of historically low interest rates;
  • Elimination of the $2,500 cap on the deductibility of student loan interest paid;
  • Elimination of the practice of interest capitalization on student loan debt;
  • The ability to consolidate private student loans with federal loans; and
  • Making all federal and private student loans eligible for income-driven repayment programs, such as IBR and Pay As You Earn, that limits payments to ten percent of income and provides forgiveness after a certain number of years;

This list is by no means exhaustive.  There are countless ways we can reform the way in which higher education is paid for in America, but Congress needs to find the political will to get to work.  Please add your name to this petition today so that we can demonstrate to those who purport to represent us that we’re not only deadly serious, but that we’re not going to give up this fight!

To further help spread the word, please click here to automatically share the Student Debt Crisis image  with your friends on Facebook.  Then, click here to Tweet about the new petition.

Thank you, as always, for your continued support.  Now, let’s raise our voices even louder than they’ve been before and let Congress know: they have a job to do and we’re not going anywhere until they do it!

Sincerely,
Robert Applebaum, Co-Founder & Executive Director
StudentDebtCrisis.org

Elizabeth Warren’s Student Loan Fairness Act goes to vote

Huffington Post, July 9, 2013– Elizabeth Warren’s proposal, presented in May, would offer the same interest rate on federal Stafford loans as the one that banks receive from the Federal Reserve. Under her plan, the rate on government-issued student loans would fall from 6.8 percent to 0.75 percent, saving students thousands over the life of their loans.”

“The proposal in Congress to extend current rates does not do enough to help students with mounting debt,” the professors’ letter reads. “Congress should address this urgent problem by passing Sen. Elizabeth Warren’s bill to let students borrow money at the same low rate as banks.”

More than 1,000 college professors from 568 higher education institutions around the country have signed a letter calling on Congress to pass legislation authored by Sen. Elizabeth Warren (D-Mass.) that would dramatically lower interest rates on federal student loans.

Student Debt Crisis Team, July 9, 2013– The U.S. Senate is finally expected to vote tomorrow on whether to keep interest rates low on students loans.  

Because they failed to reach a deal by the July 1st deadline, rates have doubled from 3.4 to 6.8 percent. Unless reversed, this means the average student will owe an extra $1,000 per year of their loan, affecting nearly 7 million borrowers.   

In light of soaring education costs and a tough economy for recent graduates, now more than ever is the time to keep college affordable.
  

Please make this message clear by sharing this image now: 
http://bit.ly/13HiPMu

Thank you for making your voices heard!

Sincerely,


Rob, Natalia, Kyle, Aaron & The 
Student Debt Crisis Team
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Elizabeth Warren’s QE for Students: Populist Demagoguery or Economic Breakthrough?

Ellen Brown, Truthout, 17 June 2013– On July 1, interest rates will double for millions of students – from 3.4% to 6.8% – unless Congress acts; and the legislative fixes on the table are largely just compromises. Only one proposal promises real relief – Sen. Elizabeth Warren’s “Bank on Students Loan Fairness Act.” This bill has been dismissed out of hand as “shameless populist demagoguery” and “a cheap political gimmick,” but is it? Or could Warren’s outside-the-box bill represent the sort of game-changing thinking sorely needed to turn the economy around?

Warren and her co-sponsor John Tierney propose that students be allowed to borrow directly from the government at the same rate that banks get from the Federal Reserve — 0.75 percent. They argue:

Some people say that we can’t afford low interest rates for students. But the federal government offers far lower rates on loans every single day — they just don’t do it for everyone. Right now, a bank can get a loan through the Federal Reserve discount window at a rate of less than one percent. The same big banks that destroyed millions of jobs and broke our economy can borrow at about 0.75 percent, while our students will be paying nine times as much as of July 1.

This is not fair. And it’s not necessary, either. The federal government makes 36 cents on every dollar it lends to students. Just last week, the Congressional Budget Office announced that the government will make $51 billion on the student loans it issued this year — more than the annual profit of any Fortune 500 company, and about five times Google’s yearly earnings. We should not be profiting from students who are drowning in debt while we are giving great deals to big banks.

The archly critical Brookings Institute says the bill “confuses market interest rates on long-term loans (such as the 10-year Treasury rate) with the Federal Reserve’s Discount Window (used to make short-term loans to banks), and does not reflect the administrative costs and default risk that increase the costs of the federal student loan program.”

Those criticisms would be valid if the provider of funds were either a private bank or the American taxpayer; but in this case, it is the U.S. Federal Reserve.  Warren and Tierney assert, “For one year, the Federal Reserve would make funds available to the Department of Education to make these loans to our students.” For the Fed, completely different banking rules apply. As “lender of last resort,” it can expand its balance sheet by buying all the assets it likes. The Fed bought over $1 trillion in “toxic” mortgage-backed securities in QE 1, and reportedly turned a profit on them.  It could just as easily buy $1 trillion in student debt and refinance it at 0.75%.

Read More: Truthout