DiscoverPitchfork Economics with Nick HanauerThe hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford)
The hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford)

The hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford)

Update: 2020-02-042
Share

Description

The average family earning $25,000 a year in the U.S. spends about $2,400 on financial transactions. Whether it’s the astronomical interest rates of a payday loan or the costs that come with being unbanked, the extractive practices of the financial services industry are effectively keeping the poor in poverty. Lawyer and author Mehrsa Baradaran and economic mobility expert Cate Blackford join Nick and Steph this week to explain why banking while poor is so expensive, and what states can do to rein in the people who profit from it. 


Mehrsa Baradaran is a professor of law at UC Irvine. She writes about banking law, financial inclusion, inequality, and the racial wealth gap. Her scholarship includes the books How the Other Half Banks and The Color of Money: Black Banks and the Racial Wealth Gap


Twitter: @MehrsaBaradaran


Cate Blackford is the Director of Outreach and Donor Development at the Bell Policy Center, where she leads the Financial Equity Coalition to eradicate systemic discrimination and hold financial predators accountable. She was the Co-Chair of the 2018 Proposition 111 campaign in CO to limit the interest lenders could charge on payday loans and eliminate fees from payday lending products, which passed with 75% of the vote. 


Twitter: @catetiller @BellPolicy


Further reading: 


How the Other Half Banks: https://www.hup.harvard.edu/catalog.php?isbn=9780674983960


The Color of Money: https://www.hup.harvard.edu/catalog.php?isbn=9780674237476


If the U.S. Government Treated Poor People as Well as It Treats Banks: https://www.theatlantic.com/business/archive/2015/10/if-the-us-government-treated-poor-people-as-well-as-it-treats-banks/410614/


CO’s Prop 111 explained: https://coloradosun.com/2018/10/22/proposition-111-colorado-2018-explained/


Briefed by the Bell - Predatory Economy: https://www.bellpolicy.org/2018/09/10/predatory-economy/


How Do Payday Loans Work? https://www.incharge.org/debt-relief/how-payday-loans-work/


Make sure you check out Majority.FM’s AM Quickie, the morning news podcast for progressives in the know: amquickie.com


Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

Learn more about your ad choices. Visit megaphone.fm/adchoices

Comments 
Download from Google Play
Download from App Store
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

The hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford)

The hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford)

Civic Ventures