Washington, DC (November 12th, 2019) — During remarks before the Economic Club of New York today, President Trump asserted his “biggest, boldest and most ambitious campaign” to gut regulations has “liberat[ed]” the economy. This is likely news to the millions of Americans who consider themselves “worse now” than they did before the financial crisis, who “never” plan to retire or who cannot cover a $1000 emergency.
Trump’s tax cuts and deregulation for the richest corporations have made no difference to many working families living one emergency away from bankruptcy. The administration’s decision to halt most enforcement actions against bad behavior on Wall Street has not lifted a single person’s wages on Main Street. But the administration’s drive to enact literally hundreds of proposals for weakening or scrapping safeguards from risky financial behavior and doing away with consumers protections from payday loan sharks and cutthroat debt collectors is a recipe for another financial crisis.
“The Trump administration has worked to reduce safeguards on payday loans, empower debt collectors to harass consumers, and presides over an economy where just 11% of Americans feel like they’re “getting ahead’”, said Derek Martin, Director of Allied Progress. “Trump likes to brag about economic gains on his watch, but the record is clear: while he and his wealthy friends reap the rewards, hard-working Americans are being tossed to the financial sharks.”
WHAT YOU NEED TO KNOW:
Trump’s Rhetoric Doesn’t Match Reality On Economic Outlook For Many Americans
RHETORIC: Trump Claims De-Regulation Efforts “Liberate[d]” Economy
Trump: “To Liberate Our Economy, My Administration Launched The Biggest, Boldest And Most Ambitious Campaign To Reduce Regulation.” During President Trump’s November 12th remarks at the Economic Club of New York, he said: “To liberate our economy, my administration launched the biggest, boldest and most ambitious campaign to reduce regulation… Within days of taking office, I issued an executive order to end the outstanding, horrible federal intrusions that you saw – it was an onslaught into business, into people’s lives, and it was really done by unelected bureaucrats. They were really accountable and nobody held them accountable. And, so, sometimes its not pleasant to hold them accountable, but I do it and we had no choice because we were going nowhere fast. My order required that for every one new regulation, two old regulations must be eliminated, but instead of 2-for-1, we have now eliminated 9-for-1, and we think that within the next six months it will be close to 20-for-1 instead of 2-for-1.” [“President Trump’s Remarks to the Economic Club of New York,” (25:04) 11/12/19]
REALITY: In Trump’s Economy, 40% Of Americans Said They Could Not Cover a $1000 Emergency And Nearly 25% Said They “Never Plan To Retire.”
July 2019: Only 11% Of Americans Said They Are Getting Ahead While Nearly 40% Say They Could Not Cover A $1,000 Emergency And Nearly 25% “Never Plan To Retire.”
A Recent Poll Found That Only 11% Of Americans Believe Their Earnings Are Outpacing Their Expenses And About A Quarter Say Their Costs Are Climbing More Quickly Than Their Incomes. “A quarter of Americans say their expenses are rising faster than their incomes. Just 11% say their salaries have outpaced their costs.” [“Poll shows how many Americans feel vulnerable despite a good economy,” MarketWatch, 07/09/19]
Nearly 40% Of Americans Doubt They Could Pay A $1,000 Emergency Expense And Nearly Half Doubt They Can Save Enough For Retirement. “Nearly four in 10 Americans say they lack confidence in their ability to pay an emergency expense of $1,000. […] Just two in 10 are very confident that they’ll have enough savings for retirement. Nearly half have little to no confidence.” [“Poll shows how many Americans feel vulnerable despite a good economy,” MarketWatch, 07/09/19]
Nearly A Quarter Of Americans “Say They Never Plan To Retire.” “Nearly one-quarter of Americans say they never plan to retire, according to a poll that suggests a disconnection between individuals’ retirement plans and the realities of aging in the workforce. […] According to the poll from The Associated Press-NORC Center for Public Affairs Research, 23% of workers, including nearly 2 in 10 of those over 50, don’t expect to stop working.” [Andrew Soergel, “Poll: 1 in 4 don’t plan to retire despite realities of aging,” Associated Press, 07/07/19]
REALITY: The Trump Administration’s Repeal Of The Payday Lending Rule Will Transfer Over $7 Billion From Consumers To The Payday Lending Industry.
According To The CFPB’s Own Analysis, The Payday Lending Industry Is Estimated To Make $7.3 To $7.7 Billion From The Trump Administration’s Proposed Rollback Of The Payday Rule.
During Her March 2019 Appearance Before The Senate Banking Committee, Kathy Kraninger Acknowledged That The CFPB’s Own Analysis Found That “The Payday Lending Industry, On An Annualized Basis, Would Save About $7.3 To $7.7 Billion That They Would Not Otherwise Have Under The Previous Rule.” “VAN HOLLEN: Thank you. I’m looking at your analysis here now. Are you familiar with the Dodd-Frank Act Section 1022-b3 analysis that accompanied the notices? KRANINGER: Yes, Senator. VAN HOLLEN: And, are you familiar with the fact that you found that the payday lending industry, on an annualized basis, would save about $7.3 to $7.7 billion that they would not otherwise have under the previous rule? KRANINGER: Senator again there were a number of things that were looked at including – VAN HOLLEN: I’m just asking you about this provision which is right here in the documents you submitted. Does it conclude that by rescinding the rule on an annualized basis payday lenders will be able to pocket $7.3 to $7.7 billion dollars more? Isn’t that what it says right here? KRANINGER: Yes, Senator it does.” [Press Release, Sen. Chris Van Hollen, 03/12/19]
REALITY: The Trump Administration Has Proposed A Rule That Would Allow Debt Collectors To Spam Consumers With Unlimited Texts And E-Mails.
The Trump Administration’s Debt Collection Rule Would Allow Debt Collectors To Email And Text Consumers An “Unlimited” Number Of Times And Call Consumers Once A Day Per Debt They Hold.
The Trump CFPB’s Debt Collection Rule Allows Debt Collectors To Call Consumers Seven Times A Week Per Debt They Hold, Meaning A Consumer With 8 Medical Debts Could Receive 56 Attempted Calls Per Week “Collectors could make up to seven attempted calls per debt per week, either to the consumer or to friends and family to ask for the consumer’s contact information. A consumer with 8 medical debts could receive 56 attempted calls per week.” [“CFPB Debt Collection Rule Must Protect Consumers, Not Abusive Collectors,” National Consumer Law Center, May 2019]
The Trump CFPB’s Debt Collection Rule Would Allow Industry To Send “Unlimited Amounts Of Texts And Emails” To Consumers. “The Consumer Financial Protection Bureau on Tuesday proposed rules that would give the industry the go-ahead to send consumers unlimited amounts of texts and emails, accelerating a trend the watchdog bureau says could be beneficial for everyone.” [Renae Merle, “Trump administration wants to allow debt collectors to call 7 times a week and text, email as much as they want,” The Washington Post, 05/07/19]