Atlanta Journal-Constitution

J. Galbraith and Economic Growth Forum in Atlanta Journal Constitution

Communications — Fri, 30 Nov 2007 13:51:00 -0500

New America in the News:

The home foreclosure crisis slamming into the nation's neighborhoods is having the effect of about "one Hurricane Katrina per month," James K. Galbraith, an economist with the University of Texas at Austin, said Friday at a forum examining the credit crisis.

In the immediate aftermath of Hurricane Katrina in the fall of 2005, nearly 275,000 Gulf Coast residents were forced to move into group shelters, according to the Federal Emergency Management Agency.

Economists who recently completed a study for the U.S. Conference of Mayors predicted the number of home foreclosures will hit 1.4 million in 2008.

Foreclosure is the legal process by which property may be sold by a lender to pay off a defaulting borrower's loan. Often, foreclosures drive down prices for entire neighborhoods as homes sit vacant.

When new buyers fail to purchase those empty houses, "the inventory doesn't go away," Galbraith said at the event sponsored by the New America Foundation, a research group. "The houses stay there — and they decay," hurting the value of even occupied homes around them.

This can compound the mortgage slump's economic damage. As home values decrease, Americans may no longer be able to get the home-equity loans that used to help them pay for cars, remodeling projects and more. "A slump in housing could have an effect on our ability to grow — for quite a long time to come," Galbraith said. ...

For more information, please follow this link. James Galbraith spoke at a forum organized by the Economic Growth Program and American Strategy Program with New America Foundation. More information about that forum can be found on the Events Calendar.

Lobbying Scandal Points to a Pyramid of Problems

Articles — Thu, 27 Apr 2006 02:00:00 -0400

The Jack Abramoff scandal has focused badly needed attention on the quid pro quo between politicians and donors -- the granting of legislative favors in return for big donations. But evidence suggests that when it comes to money in politics, Abramoff is a distraction from the real issue: the "pyramid of money."

Party leaders such as House Speaker J. Dennis Hastert (R., Ill.) and Minority Leader Nancy Pelosi (D., Calif.), as well as most incumbents from both parties, don't need to spend a dime on their reelections, since they represent districts that are one-party strongholds.

This is due not so much… more

Focus on the Victims--Not on New Orleans

Articles — Wed, 21 Dec 2005 00:00:00 -0500

Without question, there is a role for the federal government in the rebuilding of lives in the devastated Gulf Coast. That's where the emphasis belongs--on people, not on buildings, or even places.

This notion came to me recently as I was discussing the future of New Orleans with a group of evacuees in Houston. Sherby Guillory, a displaced student at Tulane, had this to say about what he saw as the current emphasis on rebuilding the physical charms of his city.

"Seems to me," he explained, "that they all want to rebuild a shining city on the hill--but without the people."… more