Posted by Todd Zywicki:
Congressional Black Caucus, Small Business, and Bankruptcy Reform:
http://volokh.com/archives/archive_2005_05_01-2005_05_07.shtml#1115384685
Interesting [1]article in the Washington Times this morning on the
Congressional Black Caucus and their growing tendency to buck
Democratic Party leadership and to vote independently on certain
important pieces of legislation, namely the bipartisan Bankruptcy
Reform legislation and the repeal of the estate tax. The article notes
that about one-quarter of the caucus (10 out of the 41 members of the
Congressional Black Caucus, which includes one senator) voted in favor
of the bankruptcy reform legislation, and five voted for both
bankruptcy reform and estate-tax repeal.
The article suggests that the key political dynamic at work is the
growth in the black middle class and the growing recognition that many
small businesses are minority-owned businesses. As a result, more
members of the Congressional Black Caucus are taking the expressed
views of small businesses into account in their voting pattern.
Consider David Scott, a Congressman from Georgia:
The caucus was founded in 1969 by 13 members of the House,
primarily representing urban districts in the Northeast, Midwest
and far West. Though it remains all-Democratic, it now has grown to
41 members, including a senator, Barack Obama of Illinois, and has
spread to the booming suburbs near Southern cities. Mr. Scott, an
honors graduate of the Wharton School of the University of
Pennsylvania who went on to establish his own advertising agency,
is the first black politician to be elected to a Southern district
that was less than 40 percent black. "It is important that there be
a rich political diversity in the Black Caucus because there is a
rich diversity in America and within the black community," he said.
As a businessman, Mr. Scott said voting for the bankruptcy bill and
elimination of the estate tax was easy. "The business of America is
business, and Georgia is one of the fastest-growing states in
America because we are pro-business," he said.
Congressman Wynn adds:
Mr. Wynn, who represents Prince George's County, the wealthiest
predominantly black county in the country, said his votes always
have been consistent. "I campaigned on job creation and economic
growth 13 years ago, and I don't view [my votes] as a change," said
Mr. Wynn, whose district has a high concentration of both large and
small black-owned businesses. "Most of my votes are tied to job
growth, wealth creation and small- and minority-business growth."
"Almost all in the minority-business community supported
elimination of the estate tax. Access to capital has been a big
issue, and small businesses and minority businesses are being hurt
by unnecessary bankruptcy," he said.
As [2]I noted earlier, when I attended the signing ceremony for the
bankruptcy reform legislation, I sat next to the owners of a
family-owned lumber store in rural New Jersey, who described for me
the dramatic negative effects that bankruptcy losses can have on small
businesses. And, of course, excessive bankruptcy losses are most
likely to negatively impact higher-risk borrowers, such as young and
minority borrowers, in terms of higher credit costs and reduced access
to credit.
There may also be a generational change at work here, as those
supporting these small-business initiatives also seem to be drawn from
the younger and southern members of the Black Caucus (who joined
[3]most centrist Democrats in voting for bankruptcy reform), whereas
the old rust-belt guys like Congressman Charles Rangel dismiss the
votes as "just stupid" and John Conyers just chalks it up political
ambition for higher office. In other words, it seems pretty clear
where the new ideas in the Congressional Black Caucus lie on issues
like bankruptcy reform.
The Senate roll call vote on the bankruptcy reform legislation is
[4]here; the House vote is [5]here.
References
1. http://www.washingtontimes.com/national/20050506-122430-5180r.htm
2. http://volokh.com/archives/archive_2005_04_17-2005_04_23.shtml#1114210776
3. http://www.nationalreview.com/comment/zywicki200503160744.asp
4.
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=1&vote=00044#position
5. http://clerk.house.gov/evs/2005/roll108.xml
_______________________________________________
Volokh mailing list
[email protected]
http://highsorcery.com/cgi-bin/mailman/listinfo/volokh
