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KPBS Midday Edition

New Book Argues That Hidden Costs Are Eroding The Middle Class

The cover of "Land of the Fee" by Devin Fergus is pictured.
Courtesy of Oxford University Press
The cover of "Land of the Fee" by Devin Fergus is pictured.

New Book Argues That Hidden Costs Are Eroding The Middle Class
New Book Argues That Hidden Costs Are Eroding The Middle Class GUEST: Devin Fergus, author, “Land of the Fee: Hidden Costs and the Decline of the American Middle Class”

Think back to your last significant financial transaction. You knew there would probably be a down payment to cover and interest to pay but what about those fees. While we're on the subject what about all those fees connected to your bank account your insurance payments your car loan a new book argues that all the fees we encounter are actually draining our resources and increasing wealth inequality. Just yesterday California's Supreme Court ruled that interest rates on consumer loans can be so high that they become quote unconscionable and therefore illegal. Joining me is Devin Fergus author of land of the fee hidden costs and the decline of the American middle class. Fergus is a professor of history Black Studies and Public Affairs at the University of Missouri and Devin welcome to the program. Thanks so much for having me on the show. I only mentioned a few of the financial transactions that result in hidden costs. What areas do you focus on in your book. I'm focused primarily on areas in which fees related charges are having an impact on upward mobility in America housing education employment which we see rampant wage stagnation in the free market response the rising wage stagnation payday lending and then takes us to a whole new school of work the rise of fees and charges in transportation insurance which is a popular area a big subject and still can't find the most driver friendly state in the U.S.. And so my research focuses primarily in these fees in the private sector. But it is also the Roz's fees of say so in the public sector as well. The last two generations with non tax revenue as fees and fines and related costs have accounted for more than 80 percent of all government revenue growth. So no politician wants to say I'm going to raise your taxes so they don't use other means a measure of which to raise revenue primarily through fees and fines and things like that. Now are you also talking about interest payments on student loans and other kinds of loans. Precisely. MURPHY Absolutely. The clearest example would be you will see the payday lending industry which is sort of a shell game that lenders play in and payday lenders are just.

A new book argues that the fees we encounter are draining our resources and increasing wealth inequality.

“Land of the Fee: Hidden Costs and the Decline of the American Middle Class” by Devin Fergus looks at fees in the areas of education, transportation, housing and employment and their impact.

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Fergus joins Midday Edition on Tuesday to discuss the book.