Skip to main content

Joint Economic Committee Democrats Chairman - Senator Martin Heinrich (D-NM)

Press Center

Nov 20 2015

Sufficient Funding Needed to Collect Critical Labor Market Data

Maloney Endorses BLS Letter From 63 Economists

WASHINGTON – Joint Economic Committee Ranking Member Carolyn B. Maloney (D-N.Y.) Friday issued the following statement calling for adequate funding for the Bureau of Labor Statistics (BLS), an agency within the Department of Labor that collects detailed labor market data that is essential both to policymakers and the business community. Her comments reinforce the message of a recent letter by 63 well-known economists to the heads of House and Senate subcommittees that oversee funding for the BLS.   

“The Bureau of Labor Statistics provides detailed and impartial data that is essential to both business leaders and for policymakers. We cannot make good decisions without it. Past budget cuts were shortsighted and could have damaging effects on the economy. Members from both parties should recognize the wisdom of our nation’s leading economists who call for adequate funding for BLS.”

 

                                                                                                                 ###

Nov 18 2015

Maloney Urges Proactive Policies to Help Millennials Succeed

“The challenges facing Millennials are real, but the solutions exist,” Ranking Member Maloney said. “Our job is to help chart the course forward… It’s not enough to block destructive actions that hurt Millennials. We must focus on targeted actions that will help them.”

Nov 18 2015

Statement of Carolyn B. Maloney

Chairman Coats, thank you for calling today’s hearing. 

Rapidly growing student loan debt is a significant challenge facing our country. Student loan debt grew steadily through the recession, more than doubling from the start of the recession in 2007 to today, and is now close to $1.3 trillion. More than 40 million people have, on average, more than $27,000 in debt.

The recent explosion in student debt risks the economic security of young Americans and threatens our economic growth. As debt levels increase, young people are forced to delay buying a car, purchasing a home, starting a small business and saving for retirement. 

And some end up paying back loans well into their 30s, 40s and even 50s.

State Divestment and Tuition Increases

How did we get here?

Part of the story is that many American families have struggled in recent decades and have had trouble saving money for their children’s college education. And many were hit hard by the recent recession, the most serious economic crisis since the Great Depression.  

When parents have less savings, students are forced to borrow more. Substantially more. In fact, borrowing has gone up sharply in recent years, with the average debt at a 4-year public institution climbing from $21,900 in 2006-07 to $25,600 in 2012-13.

Another critical part of the story is that tuition has risen dramatically, especially at public colleges and universities, which educate the vast majority of our students.

States have also been hit hard by the recession, and in response many have slashed funding for higher education. Median state funding per student, for example, fell by almost one-fourth from 2003 to 2012.  

Cuts in state funding for higher education force public universities to charge more. As a result, this forces students and their parents to pay more. And this means that students have to borrow more money to go to college.

With declining state investment, tuition increases have far outpaced inflation since the 1980s.  After adjusting for inflation, tuition and fees at a public 4-year university more than TRIPLED in the past 30 years. 

The Bush-era recession also increased the overall amount owed by students in another way. As job opportunities shrank, more and more young people opted to enroll in school. And they had to take out loans to pay for it.

The recent recession also accelerated the loss of many higher-paying jobs that did not require a college degree, further increasing the demand for college or other postsecondary education.

For-profit institutions, in particular, saw their enrollments surge – quadrupling between 2000 and 2011.  A new report finds that 75 percent of the increase in student loan defaults between 2004 and 2011 results from the increase in borrowers at for-profit institutions. 

Republican Focus on Private Sector Comes with Risk

Yes, student debt is a big problem.

And how do our Republican colleagues suggest that we respond to this problem? By restricting the availability of federal student loans and by expanding the private student loan market.

As recent history has shown us, private student loans pose significant risks to borrowers. These loans lack the consumer protections of federal loans. They typically carry higher interest rates, some greater than 18 percent. And they offer fewer options for loan modification.

Many borrowers have been forced into default when lenders wouldn’t negotiate viable repayment plans. Income-based repayment and extended loan terms – plans that are available with federal loans – typically are not available with private student loans.

And there are many, many examples of private lenders preying on student borrowers.

Private lenders regularly declare borrowers’ private student loans in default after a co-signer dies or files for bankruptcy, even for borrowers who paid their loans on time for years. Of course, a default can affect employment background checks and cause lasting damage to a person’s credit.  

There is probably broad agreement in this room about the need to continue to clean up the abuses in the private student loan industry. It’s been the Wild West, with providers marketing their loans to students desperate for financing through every conceivable channel – Pandora, You Tube, on campus, off campus, at the gym and so on.

As we consider new private options for financing a college education, we must make absolutely sure we have strong safeguards in place to prevent private lenders from using predatory practices to take advantage of students.

Income Share Agreements

Today we will discuss a new private lending mechanism – income share agreements – that could offer some students an alternative way to finance their college education.

I would like to hear what our witnesses have to say about this issue. I would also like to know – specifically – how they would protect students from the predatory practices that have been a part of the existing private student loan market.

Needed Investments and Reforms

Rather than look to the private sector to magically solve the student debt problem, we should strengthen public support for higher education. It’s important to remember that an educated workforce is a public good and thus without government involvement, we would underinvest in education. There are four steps we should take right now.

First, we should make tuition free for students at community college. Students would then be able to build their skills, and perhaps obtain an associate’s degree, without taking on huge debt.

Second, states need to partner with the federal government to reinvest in higher education, and to begin to reverse the years of divestment at the state level.  

Third, at the federal level, we should increase investments in Pell Grants to give low-income students a real shot at a college education. Despite recent increases, Pell Grants now cover just one-third the cost of going to a public university. 

Finally, we need to reform the system so that universities and colleges have some “skin in the game,” some consequence, when a student is unable to pay back a loan. And colleges should be rewarded when a student succeeds.

Conclusion

Before we take the advice of my Republican colleagues and scale back federal student loans and increase private lending to students, let’s take a minute to remember how much students benefit from federal loans.

Much lower rates. Better consumer protections. Income-based repayment. Extended loan terms.

College has been a gateway to opportunity for generations in our country. But for too many Americans, as the price of college rockets up, the dream of an affordable college education slips away.

Our goal should be college education that is more accessible and more affordable. The federal government, state governments, universities, colleges, community colleges, the private sector and families all have a role to play. I look forward to our discussion today and thank the witnesses for their testimony.

Nov 10 2015

Post-9/11 Veterans’ Unemployment Rate Cut in Half

American veterans who served after September 11, 2001, experienced a 50 percent drop in their unemployment rate over the past four years, but the youngest among them still struggle with high unemployment, poverty and homelessness, a

Nov 06 2015

Maloney: October Jobs Report Shows Strong Growth

“October marked the 68th straight month of private-sector job gains – the longest growth streak on record. This is no small feat, given the economy President Obama inherited in 2009,” Ranking Member Maloney said. “Today’s report provides ample reassurance that the economy is still advancing and the labor market continues to strengthen."

Nov 04 2015

Statement of Carolyn B. Maloney

Chairman Coats, thank you for calling today’s hearing. The Social Security Disability Insurance (SSDI) program is a critical part of our safety net that protects each of us in the event of a life-changing injury or illness that prevents us from working and earning a living. We all have an interest in making this program as strong and successful as possible. 

The recent budget agreement extended the solvency of the Disability Insurance Trust Fund through 2022 and took important steps to bolster anti-fraud programs, strengthening program integrity. 

 

Nevertheless, it’s likely that some concerns about SSDI will be raised this afternoon. We may hear that SSDI is plagued by fraud and abuse; the program is growing at an out-of-control rate; it’s easy to get SSDI; and the program discourages work.

 

These assertions are largely not supported by the facts.

 

SSDI is an insurance program. Workers earn benefits by paying a small tax – less than 1 percent of their taxable income – over years of work. The average beneficiary worked for 22 years before becoming disabled. 

 

None of us knows if we will need disability benefits sometime in our lives. But a young person starting her career today has a one in four chance of needing SSDI before reaching retirement. 

 

Who Receives Disability Benefits

 

Today, there are nearly 11 million SSDI beneficiaries, including nearly 9 million disabled workers and almost 2 million spouses and dependent children of disabled workers.

 

Those who receive benefits face severe and long-lasting impairments including Alzheimer’s, amputations, cancer, congestive heart failure, blindness, lupus, gastrointestinal hemorrhaging, cerebral palsy, multiple sclerosis, traumatic brain injury, intellectual disability, schizophrenia and severe depression.

 

SSDI benefits are modest, but critical. The average monthly benefit is $1,165 – slightly over the poverty line. SSDI is the only source of income for one in three beneficiaries. It is the main source of income for more than four in five.

 


 

There are several misconceptions about SSDI. I hope that today’s hearing can help to clear up some of the more common ones.

 

Misconception # 1:  SSDI is rife with fraud. 

 

We have seen vivid cases of fraud in the media – for example, a man doing yardwork while collecting disability payments. Let’s be clear – any fraud or misuse of the system is a waste of taxpayer money and is unacceptable.

 

However, SSDI fraud is rare. According to the Social Security Administration, the improper payment rate was less than one percent in FY 2013. 

 

The Inspector General of the Social Security Administration is here today to tell us about successful fraud-fighting initiatives like Cooperative Disability Investigations (CDI) and Continuing Disability Reviews.

 

Every dollar spent on CDI efforts to investigate initial claims, for example, saves as much as $17. These are powerful programs and I’m pleased that the budget agreement doubles CDI capacity to track down people who are trying to claim disability benefits unfairly.

 

It is a credit to the Inspector General that this work is tracked carefully, so as policy makers we aren't forced to make decisions on the basis of anecdotal evidence. Let’s use hard data to make sure that SSDI serves the people who really need it.

Misconception # 2: SSDI is growing at an out-of-control rate driven by people who don’t really need disability benefits.

 

The overwhelming body of evidence shows that the growth in SSDI beneficiaries and program costs is largely due to demographic changes like the aging of the baby boomers and the huge increases in the number of working women. 

 

As the baby boomers have aged, they have moved into age brackets that are more prone to disability. A worker is twice as likely to be disabled at age 50 as at 40, and twice as likely at age 60 as at 50. This alone drives a large part of the increase in the number of people who receive disability benefits.

 

Similarly, as women have entered the workforce in greater numbers, they became eligible for SSDI. While women accounted for less than 40 percent of those insured for SSDI in 1980, they make up close to nearly half of those insured for benefits today.

 

The Center on Budget and Policy Priorities finds that nearly 70 percent of growth in SSDI beneficiaries since 1980 is explained by demographic factors. New peer-reviewed research from Harvard economist Jeffrey Liebman confirms the key role demographic factors have played.

 

But these trends have generally played themselves out. As baby boomers continue to age and move from disability to retirement, the increase in beneficiaries has reached its lowest level in more than 30 years.  

 

Misconception # 3: it’s easy to get SSDI.

 

This is not so. The United States has among the most stringent eligibility criteria in the OECD.

 

Applicants must provide extensive medical documentation of their disability and show that they are unable to do their prior job and any job in the national economy. That’s a high bar.

 

In fact, about two-thirds of disability insurance applications are denied. And as Dr. Duggan notes in his testimony, in 2014 the share of applicants approved for SSDI was at its lowest level in history.

 

Misconception # 4: Once on disability, beneficiaries have no incentive to return to work.

 

In fact, SSDI allows beneficiaries to earn $1,090 a month with no impact on benefits. In other words, beneficiaries receiving disability have a very high incentive to work.

 

The budget deal calls for more initiatives to test whether smoothing out the so-called “cash cliff” and replacing it with a gradual offset would help more people to increase their work and earnings.

 

And the Obama administration has advocated for early intervention strategies to help keep disabled workers employed and off the SSDI rolls in the first place.

 

Both ideas are worth exploring.

 

But we must recognize that most SSDI recipients simply cannot work – they struggle with debilitating injuries and illnesses. They have earned these benefits. Any one of us could be in that situation. And that is why we need and must protect Social Security Disability Insurance.

 

 

Nov 04 2015

Maloney: Workers Earn Their Disability Insurance

Rep. Carolyn Maloney said Wednesday that Social Security Disability Insurance (SSDI) plays a vital role in the economic security of nearly 9 million people and she dispelled misconceptions that the program is riddled with fraud and disincentives to work.

Oct 30 2015

Op-ed: Overcoming Black Economic Stagnation (Amsterdam News)

By Reps. Carolyn B. Maloney, GK Butterfield and Charles Rangel

The hostile response we have seen recently to protests of police brutality and the killing of unarmed African-Americans by police in New York City, Ferguson, Mo., Baltimore, and elsewhere is all too familiar to those of us who lived through the late 1960s.

Back then, cities all across the country erupted in protest against rank social and economic injustice. President Lyndon B. Johnson appointed the Kerner Commission in 1967 to investigate the conditions that led to widespread rioting and repeated acts of arson. The commission’s report was released the next year and concluded, “Our nation is moving toward two societies, one Black, one white—separate and unequal.”

Since then, the situation has improved significantly around the country, but much work still remains. For far too many, particularly in the African-American community, too little has changed and too much is still the same. We have much to do to make the American Dream a reality for all.

Today, we update a report by the Democratic members of the Joint Economic Committee, in cooperation with the Congressional Black Caucus, examining the economic challenges facing African-Americans. We found that African-Americans in New York City face extraordinary economic obstacles, sometimes even exceeding those typically faced by African-Americans nationwide.

Here are the numbers:

• In New York City, African-American unemployment is 12 percent, whereas for whites, the rate is 5.5 percent. The national unemployment rate for African-Americans is 9.2 percent, double the 4.4 percent rate for whites.

• The median income for African-American households ($41,000) in New York City is approximately half of the median income for white households. Nationally, the median income of African-American households ($35,400) is approximately 60 percent of the median income of white households ($60,300).

• In New York City, whites are more than twice as likely as African-Americans to have a four-year college degree. Nationally, among 25 to 29 year olds, whites are almost twice as likely as African-Americans the same age to have a four-year degree.

This racial disparity—in New York City and the nation as a whole—means we remain a society in which Black and white are “separate and unequal.”

The Joint Economic Committee and the Congressional Black Caucus will explore these persistent inequities at a CBC-JEC forum Friday at the Harlem Hospital Center. Academic experts, public officials and community leaders will come together to discuss the underlying causes of economic disparity between the races and how we might overcome them.

Inequality this extreme and this persistent is corrosive and destructive. It hurts our children and cripples our families. It consigns millions of able and talented Americans to a life at the margins, weakening the bonds of civil society and the democracy that unites us.

The recent turmoil in our country should be seen in this larger context. The reactions to the violent deaths of Eric Garner, Michael Brown, Freddie Gray, Walter Scott, Tamir Rice and too many others to count have not happened in a vacuum.

A careful study of economic data can help us make greater sense of these complex issues. Unbiased facts, laid out in black and white, can inspire us to action. We will move one step closer to achieving a more just society when everyone understands, when everyone knows that a Black American is still twice as likely to be unemployed as a white American or that a typical white household has 13 times more wealth than a typical Black household.

There are things we can do now to help provide opportunity to Americans of all backgrounds. We should increase the federal minimum wage and expand the Earned Income Tax Credit, which provides poorer families greater economic incentive to work hard and earn more. We should expand early childhood education, restore cuts to Pell Grants and strengthen the role of community colleges. We also should get serious about passing some of the numerous bipartisan bills that address problems in our criminal justice system.

First and foremost, however, let us first acknowledge the truth revealed by the data: America is still not a land of equal opportunity for all. Then let us strive, at long, long last, to take the American Dream off hold for millions and make it a reality for everyone.

Rep. G. K. Butterfield, a North Carolina Democrat, is chairman of the Congressional Black Caucus.

Rep. Carolyn Maloney, a New York Democrat, is the ranking Democrat on the U.S. Congress Joint Economic Committee.

Rep. Charles B. Rangel, a New York Democrat, is a founding member of the Congressional Black Caucus and Dean of the New York State Congressional Delegation.

Oct 30 2015

Forum Highlights Challenges and Persistent Inequities Facing the African American Community

WASHINGTON – Today, Members of the Congressional Black Caucus (CBC) and the Joint Economic Committee (JEC) Democrats held a public forum at the Harlem Hospital Center to discuss the impact of economic challenges and persistent inequities facing the African American community in New York.  Members heard from New York community and academic leaders during an informative discussion on the vast economic disparities among African Americans and whites around the country.

The forum titled: The American Dream on Hold: Economic Challenges in the African American Community, was hosted by Congressman G. K. Butterfield (D-NC), Chairman of the Congressional Black Caucus (CBC), Congresswoman Carolyn B. Maloney (D-NY), Ranking Democrat on the U.S. Congress Joint Economic Committee (JEC), Congressman Charles B. Rangel (D-NY), founding member of the CBC and Dean of the New York State Congressional Delegation,  Congresswoman Yvette D. Clarke (D-NY), member of the House Energy and Commerce Committee and the Small Business Committee, and Congressman Hakeem Jeffries (D-NY), member of the House Judiciary Committee.

“From persistent poverty, perennially high unemployment, and lower wages, in addition to inequitable application of justice and treatment under the law – African American communities around the country are facing critical hardships,” said Rep. Butterfield.  “This forum was designed to help us take a closer look at some of the most pressing issues facing African Americans in New York and around the country.  It allows us to highlight the incredible work that lies ahead as we identify ways to repair the damage stemming from a history of racial division so that all Americans can enjoy equality, fairness and opportunity.”

“We produced this report for one reason and one reason only: To educate Congress and the American public about the stark economic disparities between black America and white America – because you cannot craft effective solutions unless you know the scope of the problem,” said Rep. Maloney.  “For millions, the American Dream is still on hold.  We need to change that, and understanding the scope of the problem is critical to doing so.”

"While the American Dream of prosperity, security and opportunity is still the standard by which most people measure success, for today’s working families, especially of color, that Dream seems impossibly out of reach,” said Rep. Rangel.  “I thank the CBC and JEC for coming to Harlem to discuss how steep the ladder is and how far apart the rungs are, so we can work on policies that will help tackle the rising inequalities threatening the wellbeing and future of our communities."

“Disparities in income and particularly wealth have increased dramatically in recent years, as many African American families lost their homes to mortgage foreclosure,” said Rep. Clarke.  “Many of these families were eligible for mortgages with low interest rates but were nonetheless sold subprime mortgages by banks that regularly practiced racial discrimination.  These disparities threaten the ability of every family to achieve the American Dream, as even a half-century after the enactment of the Civil Rights Act, African Americans in the United States are still denied the right to full participation in our civil society.  As members of Congress, we share a responsibility to support those individuals who want to create the change that will ultimately eliminate these disparities and establish the principle of equality as a matter of fact for every person in the United States.” 

“The shameful household wealth chasm that exists between African-American households and others should shock the conscience of us all,” said Rep. Jeffries.  “I look forward to working with my colleagues in the Congressional Black Caucus to ensure that all people, including African-Americans, have a seat at the table of prosperity and opportunity.”

The public forum in New York was the second among a series of discussions planned around a JEC report released earlier this year, and a New York-specific report released this month, that found striking disparities between blacks and whites in employment, wealth, housing, and education. 

Panelists from today’s forum discussion included:

•           Professor William “Sandy” Darity, Professor, Duke University

•           David R. Jones, President and CEO, Community Service Society of New York

•           Hope Knight, President and CEO, Greater Jamaica Development Corporation

•           Jennifer Jones Austin, CEO, Federation of Protestant Welfare Agencies

•           Walter Edwards, Chairman, Harlem Business Alliance

•           Dr. Hazel N. Dukes, President, NAACP New York State Conference

•           Gregory Floyd, President, Teamsters Local 237

•           C. Virginia Fields, President and CEO, National Black Leadership Commission

•           Clayton Banks, Founder and Co-Executive Producer, Silicon Harlem

•           Alejandra Castillo, Esq., National Director, Minority Business Development Agency

To view the full report, fact sheets and charts click here.

 

# # #

Oct 23 2015

The American Dream on Hold: Economic Challenges In the African American Community - New York

Congressional Black Caucus and Joint Economic Committee Democrats Hold Public Forum and Press Conference in New York

The JEC, in collaboration with the Congressional Black Caucus, will hold a public forum on the impact of economic challenges and persistent inequities facing African Americans across the country. The forum will be held on Friday, October 30, 2015, at 10:30 a.m. – 1:00 p.m. EDT at the Harlem Hospital Center located at 506 Malcolm X Boulevard, New York, New York.