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Tent
City,
USA
Tent cities are
springing up across the U.S. as victims of the recession are evicted
from their homes. Meanwhile, former
Merrill Lynch CEO John Thain spent $1.22 million of company
money
redecorating his office.
On Tuesday (24/03/09) President Obama was asked at
his news conference about tent cities and said: "It is not acceptable
for children and families to be without a roof over their heads in a
country as wealthy as ours."
Small encampments of homeless people have long been present in the US,
often consisting of those afflicted by illiteracy, alcoholism, mental
illness and drug abuse. But larger communities are now establishing
themselves in many US towns and cities as people lose jobs and housing.
The profile of residents is changing.
“These are able-bodied folks that did day labor, at minimum wage or
better, who were previously able to house themselves based on their
income,” said Michael Stoops, the executive director of the National
Coalition for the Homeless, an advocacy group based in Washington.
The Governor of California, Arnold Schwarzenegger, was forced to act
over a tent city in Sacramento after Oprah Winfrey sent a camera team
in and caused a national scandal. He plans to shift the 125-person
encampment to a nearby fairground.
Tent
Cities necessary to discipline the poor
Unlike most European countries, the US does not
have a welfare state so the pain of an economic crisis can be acute.
Some on the political right claim this suffering is necessary
to encourage the poor to save, work hard, be self-reliant, and to
protect America from 'big government'.
Meanwhile on Wall Street: Fannie Mae and Freddie Mac - nationalised by
the state in 2008 - expect to pay about $210 million in
bonuses to 7,600 employees over 18 months, according to a letter from
the mortgage companies' regulator. At Fannie, 121 employees will get
bonuses of $100,000 or more this year and the maximum bonus will be
$705,000. The two organisations lost $100 billion in a year and are
expected to receive a state subsidy of $52 billion in 2009 plus an
additional $28 billion from 2010 to 2019. (06/04/09)
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