Posts Tagged ‘middle class’

Cornell Journal of Law & Public Policy: Predatory Student Loan Lenders, Middle Class Hope for Upward Mobility, the Legal Industry and the Inevitable Bubble

As some potential law students continue to await LSAT scores, law school admissions or are wondering whether or not going to law school will give them that one chance at a better life, it would benefit you to read the following:

Being led to the slaughter

A law journal article: 20 Cornell Journal of Law & Public Policy 67 (2010)
Options for Student Loan Borrowers: A Derivatives-Based Proposal to Protect Students and Control Debt Fueled Inflation in the Higher Education Market, Michael C. Macchiarola; Arun Abraham

O.k. so this article is 72 pages, obviously I won’t delve into the entire piece but I am placing some introductory quotes in which the author is direct with failing legal industry and how the student loan industry are basically predators. He specifically discusses law schools and new lawyers are a bad investment. the author is a ‘distinguished lecturer.’ The author is a law professor and is honest enough to basically state that going to law school isn’t worth it. Do you 0Ls get it? one of your potential professors is telling you that LAW SCHOOL IS A BAD INVESTMENT!

Here are the Table of Contents for a very brief overview:
INTRODUCTION                                                                                                                                                                                                                                                    I. THE RUNAWAY COSTS OF AMERICAN LEGAL EDUCATION
By the Numbers
The Causes: A Combustible Mix of Accreditation,Rankings, Peculiar Incentives and Federal Encouragement
A Brief History of the Law School and Its Accreditation
The Rankings Game
The Peculiar Incentives of the Law School Faculty
The Federal Government and the Student Loan Market
The Scope of Government Involvement
Crisis in the Market and the Emergence of SAFRA
Income-Based Repayment and More of the Same
“For-Profit” Schools and a Way Forward

THE DISAPPOINTING REVENUE PICTURE FOR LAW SCHOOL GRADUATES
INFORMATION ASYMMETRIES AND ENTERPRISE LIABILITY
Informational Asymmetries Abound
Applying Lessons from Enterprise Liability Theory

Now for some introductory quotes:
Runaway tuitions and the burdensome student debt required for most Americans to obtain a post-secondary degree are under scrutiny like never before.4 Evidence is beginning to mount that, for too many students, debt-financed education represents a stifling encumbrance instead of the great investment that society’s collective commonsense has long advanced.5 Such a finding is unsurprising in light of the fact that, for too long, the value of education has been reflexively embraced without adequate examination of its cost. (p. 69-70)

As most bloggers have been stating, the cost is not worth the proposed benefit with all of the practical variables: economy, shrinking industry, inflation, lower salaries, loan payments and their capitalized interest as well as the time and psychological warfare this field demands.

The cost of attending law school, for example, has increased at two to three times the rate of inflation over the last three decades.11 The promise of accessible loans has made loan eligible middle- and lower-income students an easy mark for unabashed, aggressive student-loan marketing.12 “The end result,” in fact, “has been an unprecedented, debt-fueled wealth transfer from students of modest means to the increasingly prosperous higher education industry and opportunistic student loan lenders.” (p. 71-72)

Now deemed “McLaw” this along with LPOs and general outsourcing has set the middle class population in a cycle of perpetual financial slavery. Upward mobility is not founded in usurious personal debt. Do not think of the titles. Do not think of prestige. Think of your life and happiness and with any common sense you will decide not to attend law school.

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Black Unemployment: “I Have Mine and You Have Yours to Get”

“I Have Mine and You Have Yours to Get.” This is the mentality of many Americans, but I find it significant among black Americans. Excluding the black upperclass, I notice a difference in the recruiting, networking and effort of minorities to help one another. This is likely due to several factors: 1) as in previous posts, “Blacks” have been disproportionately excluded from advancement in this country: municipal slavery, Black Codes, Jim Crow, institutionalized racism, ebbs and flow in the overall economy, difficulty in assimilating despite education advancement; 2) Blacks are reluctant to help one another, many are of the persuasion that they worked so hard to advance that if they recommend the wrong black person their job/job prospects will be damaged 3) Wealth: Those blacks who are wealthy see no purpose in helping middle class blacks, as it is ‘not their problem,’ so long as they can attend their 100 Black Men Meetings, Links Club meetings, send their children to ‘Jack and Jill’ and boat the existence of their fellow human beings suffering is of no consequence. As many of these wealthy blacks embody this mentality, on the rare, such as the former owner Bob Johnson who sold BET several years ago as he was satiated with the stereotype and redundancy of the music business. He started BJI Industries with the portfolio of seeking highly skilled black businessmen and women.

As various persons (Congressional Black Caucus, lawmakers) mail the U.S. President for resolution to the hardest hit population of the current economic crisis-Black Americans, it is a mystery whether an answer will be in the affirmative. The following are more stories concerning black unemployment:

Obama lobbied on black unemployment, immigration, March 11, 2010, http://www.reuters.com/article/idUSTRE62A5OO20100311

DR. BOYCE: Obama Needs To Fix The Black Jobs Situation,  April 5, 2010, News One http://newsone.com/nation/boycewatkins/dr-boyce-obama-needs-to-fix-the-black-jobs-situation/

Obama ignores black joblessness at his own peril, April 06, 2010, http://www.istockanalyst.com/article/viewiStockNews/articleid/4004812
White Unemployment Goes Down as Black Unemployment Goes Up: Experts Explain Why, April 7, 2010, The Seattle Medium: http://www.seattlemedium.com/news/Article/Article.asp?NewsID=102405&sID=3&ItemSource=L
Was the recession more difficult for state’s people of color?, April 7, 2010, http://www.clarionledger.com/article/20100407/COL0412/4070313/1171/OPINION
This may be an opportunity for professional blacks to do what working class blacks did in the early 1900s when shut out of the greater society, create one’s one opportunities and reciprocate for the fellow man who suffers from the same trial.