Category Archives: medical debt

We Are Rolling

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The Rolling Jubilee has rolled out its first debt abolition. Letters to over forty (former) debtors have been mailed out in specially designed care packages. The point here is that if you are in debt, you’re used to getting letters of all kinds, carefully designed to get you to open them, that are about repayment. So these shiny gifts want to send the message that they contain something very different.

The Debt-Mas Tree with a Care Package

The Debt-Mas Tree with a Care Package

Here’s what people will read:

We write with good news: the above referenced account has been purchased by the Rolling Jubilee Fund, a 501(c)(4) non-profit organization. The Rolling Jubilee Fund is a project of Strike Debt. The mission of this project is to buy and abolish personal debt. We believe that no one should have to go into debt for the basic things in our lives, like healthcare, housing, and education.

You no longer owe the balance of this debt. It is gone, a gift with no strings attached. You are no longer any obligation to settle this account with the original creditor, the bill collector, or anyone else.

A letter to a former debtor

A letter to a former debtor

The Rolling Jubilee debt-buying team has taken incredible care with all the mechanics of this process. The team itself includes accountants and lawyers. They’ve been meeting with legal advisors since the summer to get this right.

Today the legal team also went public, via an interview with Nick Pinto of the Village Voice. Sadly, this was necessary because certain economics commentators on the institutional left took it upon themselves to claim that Strike Debt was going to get the debtors into tax trouble. The assertion was the IRS would see the debt forgiveness as income. Strike Debt is clear that it’s a gift and not subject to tax.

The tax lawyer dismisses the concern that the Rolling Jubilee is engaged in commercial activity: “It doesn’t make a great deal of sense to me,” she said. “When Habitat for Humanity is helping people build houses, someone still has to buy the lumber. It doesn’t change their tax status. The critical thing is that this is a not-for-profit organization, and it’s not engaged in trying to make money.”

The fact is that as of now, there’s $100,000 less medical debt out there. That has to be a good thing. We know it’s a drop in the ocean but that’s not the point. The Jubilee is a hack, or very precisely, a détournement. This latter was the way the Situationist International used the system against itself, which is exactly what the Rolling Jubilee has done.

It’s inspired activists in the UK to set up their own organization, Strike Debt UK. Writing in the new issue of the Occupied Times, the activists ask:

Can we, for example, buy discounted debt on the secondary debt market? Do we want to do this? What is the procedure? What are the relevant laws in England and Wales? Do we need a Debt Resistors’ Operations Manual here? Many of the questions raised in the group highlighted the need for people to come together, do the research, and share their findings in an accessible way. It also became very apparent that debt is becoming a popular tool in the resistance of capitalism, and as defaulting becomes more commonplace, we need to establish processes which will protect people, rather than financial institutions.

These are the right questions to ask. It would be nice if our friends on the established left felt like helping out. But we’ve been doing fine by ourselves so far. The next step is coming. Watch Barcelona in January, New York in February, maybe London in March. We are rolling.

Dis/Occupy the Olympics

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Oscar Pistorius runs in his Olympic 400 metres heat

The orgy of nationalism and sentimentality known as the Olympics has been very much not in my mind. The notoriously awful NBC coverage reduces excitement to boredom–they even showed ads during the middle distance races. There was a moment today, though, for those of us dis/abled or otherwise differently embodied folks, when Oscar Pistorius of South Africa ran in a 400 metres heat. As most people surely know, Pistorius is a double amputee and runs on J-blades. He not only participated but finished second, putting him in the semi-finals.

His charming pleasure in this accomplishment contrasted with the usual Gold! obsession of the Anglophone media. It reminds me that different modes of embodiment  and body presentation continue to have to struggle for acceptance. One of the aspects of the Occupy movement that I love is its attachment and embrace of all forms of self-actualization. Pistorius’s lesson for us is that it’s not just an end to medical debt that we call for: we want everyone to be able to get what they need, whether that’s a signing school for the Deaf, gender reassignment surgery, prosthetics, insulin, whatever: regardless of income.

Pistorius has had to compete not only against his fellow athletes but the extraordinary assumption that running on prostheses might somehow be an advantage. The myth of the Terminator cyborg is perhaps to blame here. Vivian Sobchack long ago dismissed the enhancement fantasy from her own experience with a prosthetic limb. Pistorius himself put it like this:

I think often there’s a lot of debate about the advantages, but there’s not much said about the disadvantages. If this was such an amazing piece of equipment that’s been around for 14 years, then how come thousands of other Paralympic athletes aren’t breaking world records and challenging even a 45- or a 48- or a 49-second 400m?

Here then is the crux: in common with people of color, women and people of non-normative sexualities, the dis/abled are both assumed to be inferior but suspect for any effort that is made to make them/us equal. Pistorius cannot simply be a good runner who lacks lower limbs. He must be a “crippled” runner made into a superhero by his device.

I’m deaf, or technically hard-of-hearing because I can decipher sound using lip-reading and an electronic device. Being deaf is still assumed to be a personal failing by mainstream normative culture, who celebrate the occasional exception like the fabulous Marlee Matlin, but presume deafness to indicate stupidity as a rule.

Marlee Matlin in The L-Word

Consequently, the 50 million people with hearing loss in this country are a totally ineffective lobby because we are unwilling to identify ourselves. Signing Deaf people, who defend Deaf culture vigorously, are the exception we should learn from.

For example, an odd editorial in the New York Times presented hard-of-hearing people yesterday as being at a disadvantage in noisy spaces because their devices amplify all noise, making it unbearably loud. This was true for analog hearing aids, but digital devices all use a compression curve and most that cost as much those the article cited (about $3000) will have a setting for noisy spaces that eliminates background noise. So I find myself at an advantage compared to my “hearing” middle-aged friends in such spaces.

The issue here is in fact one of insurance. If you have good insurance, as I do through New York State (thanks to my partner Kathleen), devices are covered. If not, you have to pay for them, and for hearing tests, and they are very expensive. So although hearing is considered the indispensable attribute of the human, because of music and spoken language, hearing aids are part only of what is known sneeringly as “Cadillac” plans. All politicians now agree such luxuries must be dispensed with. Prosthetic devices like those used by Pistorius and myself will be for those who can afford them. Some have disparaged Occupy as being “medieval” but what could be more medieval than that? Free universal health care is not a demand. It’s a right.

 

The Debt Vultures

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From three corners of the debt square–education, housing and health–come stories to answer two repeated questions about Strike Debt: is this the right theme for OWS? And is this in any way different to standard issue capitalism? In short, yes and yes. And I think they might serve as an answer as to what to call predatory debt: I’m going for vulture debt. Because a group of vultures is known as a committee (true).

First, education. Student debt has been questioned by some as an elitist preoccupation or as too easily eliding with right-wing attacks on higher education. Today, a US Senate report of all things exposes for-profit higher education institutions, so beloved by the right-wing, as predatory loan garnishing machines. They exist solely to generate money with instruction as an afterthought:

Among the 30 companies, an average of 22.4 percent of revenue went to marketing and recruiting, 19.4 percent to profits and 17.7 percent to instruction. Their chief executive officers were paid an average of $7.3 million

80% of their revenues come from Federal grants on average. Here’s one specific example of why this is vulture debt:

The Apollo Group, which operates the University of Phoenix, the largest for-profit college, got $1.2 billion in Pell grants in 2010-11, up from $24 million a decade earlier. Apollo got $210 million more in benefits under the Post-9/11 G.I. Bill. And yet two-thirds of Apollo’s associate-degree students leave before earning their degree.

The more you read, the worse it gets. These “colleges” are more expensive than not-for-profit institutions, yet graduate far fewer of their students. In terms of debt:

Students at for-profit colleges make up 13 percent of the nation’s college enrollment, but account for about 47 percent of the defaults on loans. About 96 percent of students at for-profit schools take out loans, compared with about 13 percent at community colleges and 48 percent at four-year public universities.

These institutions are the right-wing solution to higher education: supposedly vocationally-oriented market-driven education, rather than the supposedly wasteful liberal arts schools. They are nothing but debt vultures.

Housing. I noted recently that student debt is getting noticeably worse for older people. Now it seems that foreclosures are biting the over-50s hard:

one and a half million Americans over the age of 50… lost their houses to foreclosure between 2007 and 2011. Of those, the highest foreclosure rate was for homeowners over 75.

In this report from the AARP it emerges that these are prime loans, not the marginal sub-primes so often discussed. Seniors are being affected by declining pensions, collapsed property values, rising medical costs, shrinking investment values and (although not mentioned in the report) the need to support children and grand-children. People who have been making payments since the 1960s are now being evicted. Whose interest does this really serve? How much is enough? For a vulture, that question makes no sense.

Finally, and most repellent, medical debt. Please don’t be eating while you read this. The major medical debt collector Accretive has been banned from Minnesota and fined $2.5 million. Why? Well, it did things like this:

Carol Wall, a 53-year-old Minnesota resident, said “a woman with a computer cart” told her she owed $300 as she was “vaginally hemorrhaging large amounts of blood” at an Accretive-affiliated emergency room.

The repellent company has issued the usual generic statement claiming such cases were  exceptions, and so on, and so on. Even the New York Times didn’t buy that:

Accretive Health contracts with some of the largest hospital systems in the country to help them recoup money on unpaid bills that have piled up during the financial crisis and the economic downturn.

In other words, this is how medical debt works: the system knows people can’t pay and has a mechanism to deal with it. Here the debt vultures are literally preying on the weak, requiring patients to pay before they can even see doctors, against all rules and regulations.

So: is debt a proper subject for OWS? I’d say that predatory, criminal enterprises that place profit before people and are fundamentally incapable of saying “enough is enough” are the prime target of Occupy. Further, the unique quality of the movement is to bring together issues that are deliberately kept apart so that we can see how things really are. The minor “fixes” that pass for policy from the political parties are helping almost nobody–this is statistically as well as morally true. From student debt to housing and medical debt, the debt vultures have shown that this is a fight to the death. Only social movements like Occupy can help.

Is this a different form of capitalism? Technically, the switch to debt as the dominant aspect of the money form is different. Certainly, rapacious capitalism is far from new, as a quick glance at Engels’s 1845 classic The Condition of the Working Class in England will show. However, the present delusions about the virtues of the rich have become so attenuated that it is considered daring  to suggest that government or society have any role in wealth creation whatsoever. The idea that government should mitigate the impoverishing effects of capitalism for any except the capitalists themselves is now “socialism.” When neo-liberalism emerged, Stuart Hall and others called it “Thatcherism” and were widely castigated for saying that capitalism had changed. But it had. And it continues to do so.

Debt servitude is predatory and relentless. It has shifted the target of neo-liberal expropriation from Heavily Indebted Poor Countries to Heavily Indebted Poor People. Fanon suggested that fascism was the application of colonial techniques to colonizing nations. We can say today that neo-liberalism is the application of neo-colonial techniques to all populations. No longer is there a “wages of colonization” (to adapt Du Bois’s concept of the “wages of whiteness”) in which being a citizen of the neo-colonial powers protects you. We are all targets now.

Certain scavenger species can eat themselves to death, unable to stop. The debt vultures are one such species. We have to stop them before it’s too late.