Fixing The Interest Rate Mess-- Bernie + AOC vs Biden + GOP

"Today’s loan sharks wear expensive suits and work on Wall Street, where they make hundreds of millions of dollars in total compensation by charging sky-high fees and usurious interest rates."
-Bernie Sanders and Alexandria Ocasio Cortez

This morning must have been horrible for Status Quo Joe. He had to bite his tongue as Bernie and AOC went on the offensive with their new consumer-protection proposal, the Loan Shark Prevention Act, that targets the people and industries that have underwritten Biden's entire slimy career as a devoted servant to the banksters. The AOC/Bernie bill would cap interest rates on all consumer loans at 15%, effectively eliminating the payday loan industry and save Americans significant money on their credit card debts. Biden is generally considered the credit card industry's #1 political ally and he's was serving their interests before AOC was born!

The usury cap has been introduced by Bernie for over a decade but Republicans, working with slimy corrupt Democrats like Biden, have managed to kill it each time. Remember, banks borrow from the Fed at a 2.5% rate and their credit cards charge as much as 23%, sometimes more when they are branded with department stores and airlines. Payday charge annual rates as high as 667%, so this would be curtains for them. Politicians like Biden and the GOP in general will squeal like stuck pigs that the effect of the proposal would be to reduce access to credit for low-income families, since they have to turn to the modern day loan sharks because of poor credit.

The hope is that revived postal banking (which ended in 1967)-- being pushed by Elizabeth Warren, Bernie and even a confused Wall Street ally like Kirsten Gillibrand-- will thrive in the space occupied by payday lenders.

Wednesday, Norman Solomon wrote what many low-info Democrats don't want to hear: Joe Biden Might as Well Be a Republican. Why? "Recent criticism of Joe Biden," he wrote, "for praising Dick Cheney as 'a decent man' and Mike Pence as 'a decent guy' merely scratches the surface of what’s wrong with the current frontrunner for the Democratic presidential nomination. His compulsion to vouch for the decency of Republican leaders-- while calling Donald Trump an 'aberration'-- is consistent with Biden’s political record. It sheds light on why he’s probably the worst Democrat running for president."

After several decades of cutting corporate-friendly deals with GOP legislators-- often betraying the interests of core Democratic constituencies in the process-- Biden has a big psychological and political stake in denying that the entire GOP agenda is repugnant.

At the outset of his Senate career, Biden lost no time appealing to racism and running interference for huge corporate interests. He went on to play a historic role in helping to move the Supreme Court rightward and serving such predatory businesses as credit card companies, big banks and hedge funds.

Biden’s role as vice president included a near-miss at cutting a deal with Republican leaders on Capitol Hill to slash Medicare and Social Security. While his record on labor and trade has been mediocre, Biden has enjoyed tight mutual alliances with moneyed elites.

The nickname that corporate media have bestowed on him, “Lunch Bucket Joe,” is wide of the mark. A bull’s-eye is “Wall Street Joe.”

With avuncular style, Biden has reflexively used pleasant rhetoric to grease the shaft given to millions of vulnerable people, suffering the consequences of his conciliatory approach to right-wing forces. Campaigning in Iowa a few days ago, Biden declared that “the other side is not my enemy, it’s my opposition.” But his notable kinship with Republican politicians has made him more of an enabler than an opponent. Results have often been disastrous.

“In more than four decades of public service, Biden has enthusiastically championed policies favored by financial elites, forging alliances with Wall Street and the political right to notch legislative victories that ran counter to the populist ideas that now animate his party,” HuffPost senior reporter Zach Carter recounts. Biden often teamed up with Senate Republicans to pass bills at the top of corporate wish lists and to block measures for economic fairness.

...Opposing measures for racial equity and economic justice, Biden’s operational bonds with GOP leaders continued. Carter reports that “on domestic policy-- from school integration to tax policy-- he was functionally allied with the Reagan administration. He voted for a landmark Reagan tax bill that slashed the top income tax rate from 70 percent to 50 percent and exempted many wealthy families from the estate tax on unearned inheritances, a measure that cost the federal government an estimated $83 billion in annual revenue. He then called for a spending freeze on Social Security in order to reduce the deficits that tax law helped to create.”

Biden came through for corporate power again in November 1993 when he joined with 26 other Democrats and 34 Republicans to win Senate passage of NAFTA, the trade agreement strongly opposed by labor unions and environmental groups. In mid-1996, when Congress approved President Clinton’s “welfare reform” bill, Biden helped to vote the draconian measure into law. It predictably had devastating effects on women and children.

Throughout the 1990s-- from tax-rate changes that enriched the already-rich to deregulating banks with repeal of the Glass-Steagall Act to loosening government curbs on credit default swaps-- Biden stood with the Senate’s Republicans and the most corporate-aligned Democrats. Carter sums up: “Biden was a steadfast supporter of an economic agenda that caused economic inequality to skyrocket during the Clinton years. . . . Biden voted for all of it.”

Biden led the successful push to pass the milestone 1994 crime bill, engaging in racist tropes on the Senate floor along the way. By then, he had become a powerful lawmaker on criminal-justice issues.

In 1991, midway through his eight years as chair of the Senate Judiciary Committee, Biden ran the hearings for Supreme Court nominee Clarence Thomas that excluded witnesses who were prepared to corroborate Anita Hill’s accusations of sexual harassment. “Much of what Democrats blame Republicans for was enabled, quite literally, by Biden: Justices whose confirmation to the Supreme Court he rubber-stamped worked to disembowel affirmative action, collective bargaining rights, reproductive rights, voting rights,” feminist author Rebecca Traister writes.

Early in the new century, Biden wielded another weighty gavel, with momentous results, as chair of the Senate Foreign Relations Committee. In 2002, congressional Democrats were closely divided on whether to greenlight the invasion of Iraq, while Republicans overwhelmingly backed President George W. Bush’s mendacious case for invading. Biden didn’t only vote for the Iraq invasion on the Senate floor in October 2002. Months earlier, he methodically excluded dissenting voices about the looming invasion at key hearings of the Foreign Relations Committee.

While his impact on foreign policy grew larger, Biden’s avid service to financial giants never flagged. One of his top priorities was a crusade for legislation to undermine bankruptcy protections. Biden was a mover and shaker behind the landmark 2005 bankruptcy bill. Before President Bush signed it into law, Biden was one of just 14 out of 45 Democratic senators to vote for the legislation.

The bankruptcy law was a monumental victory for credit-card firms — and a huge blow to consumers, including students saddled with debt. As happened so often during Biden’s 36 years in the Senate, he eagerly aligned himself with Republicans and a minority of Democrats to get the job done.

Now, running for president, Biden has no use for candor about his actual record. Instead, he keeps pretending that he has always been a champion of people he actually used his power to grievously harm.

In ideology and record on corporate power, the farthest from Biden among his competitors is Bernie Sanders. No wonder Biden has gone out of his way to distance himself from Sanders while voicing high regard for the wealthy. (I was a Sanders delegate to the 2016 Democratic National Convention and continue to actively support him.)

Biden’s ongoing zeal to defend and accommodate Republicans in Congress is undiminished, as though they should not be held accountable for President Trump even while they aid and abet him. Days ago on the campaign trail-- while referring to Trump-- Biden asserted: “This is not the Republican Party.” And he spoke warmly of “my Republican friends in the House and Senate.”

All in all, it’s preposterous yet fitting for Joe Biden to claim that Republicans like Dick Cheney and Mike Pence are “decent.” He’s not only defending them. He’s also defending himself.