State Treasurer John Fleming announced last week that his office will no longer work with Bank of America as a fiscal agent for the state, citing the company’s commitment to environmental and social policies that he disagrees with. The Illuminator’s Greg LaRose writes that Fleming’s stance is a political ploy that could end up costing the state money at a time when we can ill afford it:
… Fleming’s stance also disregards fiscal prudence. It potentially comes at the public’s expense in the form of higher interest rates when the state borrows money for major construction because there would be less competition for Louisiana’s borrowing business. “This looks like political posturing that could come at a cost to low- and moderate-income families,” said Jan Moller, head of Invest in Louisiana, a policy think tank that operates in the interest of a more inclusive state economy. “When qualified bidders are removed from a competitive bid process, that can only drive up the state’s cost of borrowing money,” he said. “When the cost of borrowing goes up, that leaves fewer resources for education, health care, workforce training and other programs that Louisiana families depend on.”
Guaranteed income is long overdue
In Louisiana and around the country, governments and nonprofits are piloting guaranteed basic income programs that provide people with regular, no-strings-attached cash stipends. As columnist Will Sutton reports for The Times-Picayune | Baton Rouge Advocate, the results are encouraging, as recipients report better financial circumstances and the peace-of-mind that comes with some economic security:
The Louisiana ACLU announced in December that 12 people in Caddo and Jefferson parishes who have been subjects of police racism or harassment would receive $1,000 a month if they hadn’t received restitution through the judicial system. No strings. In July, an ACLU update showed that participants had improved mental health and life satisfaction, were more housing secure, paid more bills in full and were more prepared for unexpected bills. The program is funded by the families of enslavers who want to make things right.
IRA money doesn’t always go where it’s needed
The federal Inflation Reduction Act has made billions of dollars available to local communities for infrastructure projects and climate resilience. A new report from the Union of Concerned Scientists found that, despite the law’s best intentions, the communities in greatest need aren’t getting their fair share of the money. Elise Plunk reports for the Illuminator:
Scientists used two different environmental justice screening tools, one crafted by the federal government and another designed by the state of California, to determine which communities were in most need of BIL money. Their study found that “only 9.4 percent or 18.2 percent of the $779.29 million analyzed is flowing to communities designated and prioritized as ‘Disadvantaged.’” Communities that disproportionately face the effects of climate change and economic turmoil — such as low-income, Tribal, rural and Black communities, and places with environmental justice concerns — are specific targets for infrastructure funding.
The kids are not alright
Studies have shown that American children, starting around 2011, have grown increasingly anxious, depressed and even suicidal. The conventional explanations for this are familiar by now – the rise in smartphone use and social media, pandemic isolation and declining church attendance. But Carol Graham, in a new report for Brookings, writes that the root causes run much deeper.
They include rising education costs, uncertain employment prospects and declining wages, particularly for those without a college degree, and the absence of a sense of community in many places. In a recent Brookings paper economists Anne Case and Angus Deaton found that the life expectancy for the college educated in 2021 was eight-and-a-half years longer than for the two-thirds of American adults without a bachelor’s degree—more than triple the gap in 1992.
Number of the Day
62 – Global rank of American youth in the 2024 World Happiness Report. American kids trail their counterparts in Bulgaria, Ecuador and Honduras, among others. (Source: Brookings)