Wasserman Schultz Has a Change of Heart, But Too Little, Too Late

Dalio made $1.4 billion in 2015 alone, according to Institutional Investor's Alpha magazine. That same year, his top two executives pulled in $250 million each. Yet as part of Connecticut's campaign to keep companies from leaving the state, Malloy is taking $22 million of the public's money and giving it to Dalio to stay put.

You might think a Democratic governor would have thrown down the gauntlet and told Bridgewater's top three, "Get outta here! You guys made almost $2 billion among yourselves. Shake your piggy bank or look under your sofa cushions for the $22 million; we're not milking the public for it."

But no, Malloy and his fellow Democrats buckled. Buckled to the one-tenth of the one-tenth of the one-hundredth percent of the rich. Ordinary taxpayers will now ante up.

So given all of that, guess who's the chairman of the platform committee for the upcoming Democratic National Convention? Right: Dan Malloy, governor of Connecticut, subsidizer of billionaires. Guess who named him? Right again: Wasserman Schultz, "top Democratic ally" of "predatory payday lenders." We're not making this up.

Not only will Malloy be presiding over the priorities of the Democratic platform at the convention next month, he doubtless will be making the rounds with Wasserman Schultz and other party elites as they genuflect before the corporate sponsors and lobbyists she has invited to pay for the lavish fun-and-games that will surround the coronation. Many of those corporate sponsors and lobbyists have actively lobbied against progressive policies like health-care reform and a Wall Street cleanup and even contributed large sums to Republicans. Yes, we know, shocking.

So take the planks in the platform and the platitudes and promises in the speeches with a grain of salt. It's all about the money.

Except when it's not. Except for those moments when ordinary people rise up and declare: "Not this time!"

Which brings us back to predatory lenders and their buddy, Debbie Wasserman Schultz.

This year even Wasserman Schultz couldn't ignore the decibel level of an aroused public. Unaccustomed to a challenge in the Democratic "wealth primary" where money usually favors incumbents, she now finds herself called to account by an articulate opponent who champions working people, Tim Canova. Across the country tens of thousands of consumer advocates -- and tens of thousands of other progressives angry at her perceived favoritism toward Hillary Clinton -- have been demanding that Wasserman Schultz resign as the party's chair or be dumped before the convention opens Philadelphia.

So last week the previously tone-deaf Wasserman Schultz perked up, did an about-face and announced she will go along with the proposed new rules on payday lending after all. At first blush, that's good; the rules are a step in the right direction. But all that lobbying cash must have had some effect, because the new rules only go so far. A New York Timeseditorial calls them "a lame response" to predatory loans and says the final version of the new regulations "will need stronger, more explicit consumer protections for the new regulatory system to be effective."

Nick Bourke, director of small-dollar loans for the Pew Charitable Trusts, is a man who closely follows these things and got to the heart of the matter: Not only do the proposed new rules "fall short," they will allow payday lenders to lock out attempts at lower-cost bank loans. His judgment is stark:

"'As drafted, the CFPB rule would allow lenders to continue to make high-cost loans, such as a line of credit with a 15-percent transaction fee and 299-percent interest rate, or a $1,250 loan on which the borrower would repay a total of $3,700 in fees, interest and principal,' Bourke wrote. 'These and many other high-cost payday installment loans are already on the market in most states, and they will thrive if the regulation takes effect without change.'"

Nonetheless, the new rules were improvement enough for Allied Progress, an organization that has taken on Wasserman Schultz in Florida's late August primary, to declare victory. And they were enough for Wasserman Schultz to do a 180-degree turn which she clearly hopes will not too dramatically reveal her hypocrisy. "It is clear to me," she said, "that the CFPB strikes the right balance and I look forward to working with my constituents and consumer groups as the CFPB works toward a final rule."

All well and good, but if she survives her primary to return to Washington, be sure to keep the lights on in those rooms where the final version of the rules are negotiated. A powerful member of Congress with support from a Democrat in the White House could seriously weaken a law or a rule when the outcome is decided behind closed doors and money whispers in the ear of a politician supplicant: "I'm still here. Remember. Or else."

But the times, they really may be a-changing, as the saga of Wasserman Schultz reveals. You can be deaf to the public's shouts for only so long. The insurgency of popular discontent that has upended politics this year will continue no matter the results in November. For much too long now it's been clear that money doesn't just rule democracy, it is democracy.

Until we prove it isn't.