Welcome to the Poorhouse

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Growing up, I thought that America had changed the way it viewed poor people.  We no longer made the poor go to jail.  We outlawed debtor’s prisons in 1833 (which, unfortunately, did not really stop the practice).  And, certainly by the end of the Depression, America knew that putting poor people in jail was bad policy.  Obviously, some folks no longer understand bad policy.

English: SS.gov
English: SS.gov (Photo credit: Wikipedia)

There are a whole bunch of states (Arizona, Indiana, Minnesota, Washington, and Arkansas among them) that let debt collectors obtain an arrest warrant to collect debts.  That’s right- if you are too poor to pay a debt, you can be put in jail.

Now, I know many of you think it’s ok to put deadbeat dads and moms in jail, if they can’t pay child support.  That certainly does not help obtain any funds for the child, since once in jail, the deadbeats have absolutely no means to pay the debt.  But, let’s leave that concept alone for now.

Let’s consider what a whole bunch of towns, cities, counties, and states are doing.  Given the fact that they are petrified to raise taxes to pay for the services that its constituents demand (but for which they seemingly don’t want to pay), a series of “fees” are imposed upon citizens.  Get caught speeding?   Well, there’s a fine (mandated by the state) and a court fee (even if you don’t have to appear).  Registering your car?  There’s a license fee, a decal fee, and a processing fee.  Your city imposes a refuse fee- you know, for picking up your garbage, that until three years ago was included in your property taxes.

Some counties and cities charge a fee for ambulance service, even though the ambulance costs are included in their budgets and covered by property taxes.  Some cities and counties charged a fire department fee- and one of them actually refused to put out a fire for a homeowner who did not pay the fee.  (Again, these costs are part of the municipality’s budget- and covered by property taxes.)

Can’t pay those fees?  Be prepared to have a private company (yes, NOT the local government) haul you into court to provide financial documentation proving whether you can or cannot pay the fee.  And, you have the privilege of being charged by this private company.  Which adds to the debt.  And, another private firm will then try to collect the debt- for a fee- which the government agencies let them charge- even when they fail to collect the debt.  (I can see the agency sharing the collections with the private company, but to reward a company for doing nothing?  Oh, wait- that’s the beauty of privatization and charging fees.)

And, by rendering these charges civil fees, then there is no need to provide free legal assistance when they haul citizens into court.  The courts only provide free legal assistance to those that can’t afford lawyers in criminal cases.  This position was just affirmed by the US Supreme Court this month (this was written June 2012).  The ruling specifically stated that poor (indigent) debtors facing contempt of court charges or jail for their failure to pay debts in civil matters are not entitled to pro bono (free) public counsel.

And, that’s true even if some of these private firms don’t even provide service. (Service means a Sheriff or licensed individual personally provides the subject with notice of the lawsuit and a demand to appear.)  Instead, they mail the notice to appear in court to an address that may or may not be valid (poorer folks are not known to keeping the “state” duly inform ed each time they move; they may not have phones [in their names] that also track changes of address)- and the citizen(s) never have a clue there is/was/could be a court hearing to which they must appear.  Until a warrant for their arrest is issued, they are found (by accident) and they are brought, in handcuffs, to court.

Or, for failing to reimburse the juvenile detention center for imprisoning one’s minor child.  As happened to Ms. Edwina Nowlin in Michigan, who failed to come up with the $ 104 monthly fee her 16 y old son.  So, she was also sent to jail.  Even though the Rehnquist Supreme Court (1970) had ruled that it is a violation of the “equal protection” clause to impose harsher limits on citizens who are unable to pay a fine or court costs.

Or, like the state of Alabama that imposes a 30% collection fee if you can’t afford to pay the fees charged.  Florida lets private debt collectors to impose a 40% surcharge on debts- even if they fail to collect the fees or the surcharges.  Which means it can be transferred to yet another debt collector… you can see the pattern.

Welcome to the new America.  Where we put the poor in jail- when they can’t pay their fees,  So, it can cost our government even more money to house and feed them.   Now, that’s elegant logic.

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13 thoughts on “Welcome to the Poorhouse”

  1. Our next “logical” step would be to form labor camps where people can be sent to “work off” their debts. And I think we all know how those go, eh?! Let’s hope the rest of the world doesn’t adopt this attitude with the U.S. After all who is more in debt and unable to cover it than the U.S?

    The common person living in America is Fee poor all the time. Speaking of property taxes, here is a good topic for you and one that struck me this month. Three people on my street have had their houses taken away from them and auctioned off (two of them did not sell because they needed more money apparently) One of these is the house across the street from me. Which I only became aware of since the people who lost the home still live in the home, no one has evicted them yet after three years. The issue is two things now. First, because the other people defaulted, everyones property value dropped tremendously. Yet the city is still collecting our property taxes as if our properties are still worth what we paid for them before this nasty business happened. The second is that if you want to refinance your property to take advantage of the low interest rates, tough luck no matter how good your credit score is, because now you owe more on your property than it is worth.

    So while I rambled off a bit the topic is the same. Debt and greed is the downfall of not only the individual but everyone from cities all the way up to the top. Something needs to be done, but if we imprison everyone that solves nothing either.

    Great post, Dr. A. It just makes me worry about where we are going…I mean like you point out it isn’t as if history isn’t repeating a bit, and I studied enough to know it doesn’t go to happy places.
    Lisa Brandel recently posted..The Painted Lady by Lisa Brandel

    1. Um, Lisa… I believe the ‘mental and civil rights giant’ (sorry, Sheriff Arpaio) in Arizona has already started acting on your first paragraph.

      And, regarding your second… here’s today’s news…

  2. My husband often jokes that going to jail is the cushiest life one can have. You don’t have to go to work, you get three meals a day, free education and your relatives can only come by and bother you on visiting days.

  3. It is downright reprehensible that this so-called “land of the free” would even think of bringing back draconian forms of punishment like debtor’s prisons. How is jailing someone going to get a bill paid? It’s cruel and completely ineffective.

    What’ll they think of next? Bringing back child labor? Hmm. It’s already been tossed around by certain candidates in the campaign for the White House and by a representative here in the state of Missouri.

    Pathetic.
    Angie Hottentots-Laurel recently posted..The Top 3 Famous People Who Made Me Who I Am

  4. A friend just returned from the UK. She was looking at rest homes for her ailing mother and discovered that they were even more reprehensible than any poor house she ever read about. The rich get rich and the poor, sick and old – let’s just hide them away. Oh and go back to your post the other day on Jack Welch – corporations and government have no humanity
    Roberta Budvietas, recently posted..Stop when you no longer can….

  5. Life for the poor in this country is not good and our society seems to make it harder to rise from being poor. Similar to the legal issues that you highlighted, poor people (and many working class people) cannot access high quality health care, which also leads to more lost work and a higher chance of poverty. The cycle just goes on and on and on.
    Kristen recently posted..Going Back To School: How To Manage Stress

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