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Efforts to tackle student protests in America have backfired badly

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PART OF THE reason Elisha “Lishi” Baker wanted to go to Columbia University, an Ivy League university in New York, was its Middle Eastern History programme. He loved his first year and says he “felt great as a Jewish student at Columbia”. But since the Hamas attacks on Israel on October 7th, the atmosphere on campus has changed. Within days there were protests. He heard students calling for an intifada. He kept being told “you’re interpreting it wrong,” but this week there was no misinterpreting, he says, the undercurrent of antisemitism on campus.

University presidents are struggling with policing free speech on campus: specifically, how to deal with pro-Palestinian protests. After seeing timid responses by the heads of Harvard and the University of Pennsylvania lead to those presidents being forced to step down a few months ago, leaders are now trying a tougher approach. They are in danger of over-correcting.

The trigger for the latest troubles was the clearing by police of tents and protesters at Columbia on April 18th, and the arrest of more than a hundred students. This was an “alarming decision”, wrote Jameel Jaffer, from the university’s semi-independent free-speech centre, adding that “it was not evident to us how the encampment and protest posed such a danger” as to justify the escalation. According to the NYPD, the arrested protesters were peaceful and offered no resistance. “It was so scary,” says Layla Saliba, who saw the arrests. “All these cops just swarming everywhere and we had people in like full riot gear.” Within days another encampment sprang up on a nearby lawn.

In a letter posted on Columbia’s website Minouche Shafik, Columbia’s president, wrote that she asked the NYPD to intervene after other efforts failed, adding that she did so “out of an abundance of concern for the safety of Columbia’s campus”. The move only inflamed matters. “The irony is that in trying to quiet things down and assert control over the encampment, the administration unleashed this firestorm,” says David Pozen, a law professor at the university.

That firestorm has now spread, with tent encampments popping up far beyond Columbia. The demands by student protesters are largely the same: divest endowments of Israeli firms and any weapons manufacturers that sell there; end academic partnerships with Israeli institutions; and condemn Israel’s actions in the war.

As at Columbia, administrators elsewhere are overcoming their reluctance to call the cops. On April 22nd nearly 50 protesters were charged with trespassing for their participation in a week-long occupation of a plaza at Yale (protesters returned the next day). At New York University police broke up a copycat encampment. Yet not all sit-ins have proved so fraught. In February a camp that had stood for four months at Stanford disbanded peacefully after administrators met students and promised more transparency on investments.

Long before the debacle at Columbia, instances of disruptive behaviour had put administrators on edge. In February pro-Palestinian activists at UC Berkeley shattered a glass door leading to a lecture by an Israeli speaker. Weeks later others interrupted an event at the home of Erwin Chemerinsky, a free-speech scholar and dean of the law school.

Last year Columbia suspended two pressure groups, Students for Justice in Palestine and Jewish Voice for Peace, for organising unauthorised demonstrations. The New York Civil Liberties Union has sued over the move. Equally controversial was the University of Southern California’s decision to cancel the graduation speech of its pro-Palestinian valedictorian, who is Muslim; the school cited safety threats. USC has since cancelled all guest speakers at commencement.

Presiding over an American university was once a plum job; now it is a minefield. On April 17th Dr Shafik was the latest one to be grilled by the House Education Committee about antisemitism on campus. Unlike the presidents of Harvard and the University of Pennsylvania, who fumbled their appearances in December, Dr Shafik survived—for now. When she and colleagues were asked the question that both Claudine Gay, at Harvard, and Elizabeth Magill, at Pennsylvania, had struggled with—whether calling for the genocide of Jews violated their university’s code of conduct—they answered simply “yes, it does.”

Critics say she did not do enough to stand up for free speech. In his letter from Columbia’s First Amendment Institute, Mr Jaffer expressed dismay. The university’s rules, he wrote, guarantee broad protection “even for speech that is objectionable or offensive to some listeners”. In her own public letter, Dr Shafik says in her defence that “we cannot have one group dictate terms and attempt to disrupt important milestones like graduation to advance their point of view.”

Dr Shafik is not out of the woods. This week she faced threats from donors to withdraw their funding and calls to resign by several politicians. On April 22nd all of New York’s Republican House members signed a letter by Elise Stefanik, a high-ranking Republican, calling for her resignation. Politicians supposedly concerned about the climate on campuses have made administrators’ jobs even more complex.

At Columbia, campus life is now disrupted for the majority of students not taking part in protests. Classes have moved online. Many professors have “walked out” in solidarity. Helicopters circle above and police in riot gear stand ready nearby. The bull-horns from protesters outside the gates are loud enough to hear across campus: students studying for MCATS, an exam for medical school, cannot find a quiet spot to take practice tests.

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Three paths the Supreme Court could take on birthright citizenship 

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AMERICA’S SUPREME COURT appears unusually uncertain about how to resolve Trump v CASA—a case that could redefine who qualifies as an American citizen and reshape the limits of judicial power. At issue is the 14th Amendment’s promise of citizenship for “all persons born or naturalised” in America. For more than 125 years this has been understood to grant automatic citizenship to almost everyone born on American soil (the children of diplomats and soldiers of invading armies are exceptions). Donald Trump has issued an executive order that claims the clause was never intended to apply to children of undocumented immigrants and temporary visa-holders.

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The MAGA revolution threatens America’s most innovative place

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Cuts to funding risk hobbling Boston’s science establishment

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The low-end consumer is about to feel the pinch as Trump restarts student loan collections

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Andersen Ross Photography Inc | Digitalvision | Getty Images

Wall Street is warning that the U.S. Department of Education’s crack down on student loan repayments may take billions of dollars out of consumers’ pockets and hit low income Americans particularly hard.

The department has restarted collections on defaulted student loans under President Donald Trump this month. For first time in around five years, borrowers who haven’t kept up with their bills could see their wages taken or face other punishments.

Using a range of interest rates and lengths of repayment plans, JPMorgan estimated that disposable personal income could be collectively cut by between $3.1 billion and $8.5 billion every month due to collections, according to Murat Tasci, senior U.S. economist at the bank and a Cleveland Federal Reserve alum.

If that all surfaced in one quarter, collections on defaulted and seriously delinquent loans alone would slash between 0.7% and 1.8% from disposable personal income year-over-year, he said.

This policy change may strain consumers who are already stressed out by Trump’s tariff plan and high prices from years of runaway inflation. These factors can help explain why closely followed consumer sentiment data compiled by the University of Michigan has been hitting some of its lowest levels in its seven-decade history in the past two months.

“You have a number of these pressure points rising,” said Jeffrey Roach, chief economist at LPL Financial. “Perhaps in aggregate, it’s enough to quash some of these spending numbers.”

Bank of America said this push to collect could particularly weigh on groups that are on more precarious financial footing. “We believe resumption of student loan payments will have knock-on effects on broader consumer finances, most especially for the subprime consumer segment,” Bank of America analyst Mihir Bhatia wrote to clients.

Economic impact

Student loans account for just 9% of all outstanding consumer debt, according to Bank of America. But when excluding mortgages, that share shoots up to 30%.

Total outstanding student loan debt sat at $1.6 trillion at the end of March, an increase of half a trillion dollars in the last decade.

The New York Fed estimates that nearly one of every four borrowers required to make payments are currently behind. When the federal government began reporting loans as delinquent in the first quarter of this year, the share of debt holders in this boat jumped up to 8% from around 0.5% in the prior three-month period.

To be sure, delinquency is not the same thing as default. Delinquency refers to any loan with a past-due payment, while defaulting is more specific and tied to not making a delayed payment with a period of time set by the provider. The latter is considered more serious and carries consequences such as wage garnishment. If seriously delinquent borrowers also defaulted, JPMorgan projected that almost 25% of all student loans would be in the latter category.

JPMorgan’s Tasci pointed out that not all borrowers have wages or Social Security earnings to take, which can mitigate the firm’s total estimates. Some borrowers may resume payments with collections beginning, though Tasci noted that would likely also eat into discretionary spending.

Trump’s promise to reduce taxes on overtime and tips, if successful, could also help erase some effects of wage garnishment on poorer Americans.

Still, the expected hit to discretionary income is worrisome as Wall Street wonders if the economy can skirt a recession. Much hope has been placed on the ability of consumers to keep spending even if higher tariffs push product prices higher or if the labor market weakens.

LPL’s Roach sees this as less of an issue. He said the postpandemic economy has largely been propped up by high-income earners, who have done the bulk of the spending. This means the tide-change for student loan holders may not hurt the macroeconomic picture too much, he said.

“It’s hard to say if there’s a consensus view on this yet,” Roach said. “But I would say the student loan story is not as important as perhaps some of the other stories, just because those who hold student loans are not necessarily the drivers of the overall economy.”

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