Modern Monetary Theory Grapples with People Actually Paying Attention to It
Modern Monetary Theory Grapples with People Actually Paying Attention to It
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was...
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was Fed Up, a national campaign launched in 2015, whereby low-income workers and union members pressured the Federal Reserve to not hike interest rates, a rare instance of popular pressure being applied to monetary policy. Fed Up made the case that there was no inflation pressure forcing them to raise rates and that doing so would suppress their already low wages.
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Fed Presidents and Governors Still Talking Up Rate Hike for 2016
Fed Presidents and Governors Still Talking Up Rate Hike for 2016
The week of October 14 was a busy one for economic reports. It was also a busy week for the talking heads inside the...
The week of October 14 was a busy one for economic reports. It was also a busy week for the talking heads inside the Federal Reserve. Note that the most recent speeches this past week, even after having only three of 10 votes in September for a hike, still show a bias for the Fed to raise rates.
With the November Federal Open Market Committee meeting scheduled just days ahead of the election, the odds makers (the federal funds futures) are now focusing on a December rate hikes — but not quite 100% of a chance, at least ahead of Friday’s Janet Yellen speech.
Fed Chair Yellen gave the luncheon keynote address at the Boston Fed’s 60th Economic Conference. This was titled “The Elusive Recovery,” which may not sound hawkish at all. Still, she did not directly address interest rate hikes in her speech. But Yellen did say that the Federal Reserve may need to run a “high-pressure economy” to reverse damage from the 2008 to 2009 crisis that depressed output. In short, Yellen fears that our economic potential is slipping, and it may require aggressive steps to rebuild economic growth.
Eric Rosengren, president of the Boston Federal Reserve, said on Friday that the odds of a rate hike were very high in December. His view is that unemployment has fallen faster than expected and he is not worried about inflationary dangers.
Also on Friday, Loretta Mester, president of the Cleveland Fed, participated in a round table discussion with the Common Good Ohio (in Cleveland), which is affiliated with the Center for Popular Democracy’s Fed Up Campaign. Mester has been on the record in recent weeks as saying that the jobs market and inflation are enough to justify a rate hike.
Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday that the uncertainty stemming from the U.S. presidential election might be an argument for delaying a rate increase, at least until after the November ballot. Hint: December.
Neel Kashkari, president of the Minneapolis Fed, has tried to remain on the sidelines for vocalizing rate hike talk outside of what Yellen says. Still, on Thursday he talked about more sluggish growth and maintained that the Fed and other agencies need a remedy for the “too big to fail” banks.
William Dudley, president of the Federal Reserve of New York, sounded a tad more dovish. His take is that the Fed can be gentle with gradual rate hikes. He also pointed out that the Fed is not political when making interest rate decisions.
Esther George, head of the Kansas City Fed, did not address the economy nor rate hike views when speaking on Wednesday. Still, she did talk about the need for better bank cybersecurity and security of payments. George is considered one of the more hawkish Fed presidents.
Chicago Fed President Charles Evans was deemed as being noncommittal on Monday when he spoke. Still, he was signaling a December hike: “December could be an appropriate time to do it, but I don’t see any urgency either.” That was in a CNBC interview.
Vice Chairman Stanley Fischer spoke on October 9 and spoke about gross domestic product somehow recovering to 2.75% for the second half of 2016, a higher view than average. Fischer has been more hawkish of late and said that September’s decision was a close call. He said that he expects inflation to rise and that gradual rate hikes would be sufficient to get to Fed back to a neutral stance.
By Jon C. Ogg
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Stringer nails contractor who stole $1.7 million from immigrant workers
Stringer nails contractor who stole $1.7 million from immigrant workers
After getting away with stealing money from his immigrant employees’ paychecks for years, a major contractor who worked...
After getting away with stealing money from his immigrant employees’ paychecks for years, a major contractor who worked city projects across the five boroughs was slapped on Monday with a $3.2 million fine and barred from doing business with the city and state for five years.
A six-year investigation carried out by the New York City Comptroller’s Office used undercover video, subpoenas, union records and a city agency paper trail to uncover the kickback scheme, Comptroller Scott Stringer said in a statement on Monday.
Stringer said K.S. Contracting Corporation and its owner, Paresh Shah, cheated dozens of immigrant workers out of their pay and benefits.
Shah told the city he was paying his workers the prevailing wages required under the New York State Labor Law. In reality, however, only about half of the workers received paychecks. Those who did were required to cash the checks and then surrender the money to company supervisors. Those supervisors would take a cut and then redistribute the leftover cash to employees , including those who did not receive paychecks, paying them at rates significantly below prevailing wages.
Before getting their money, many of the workers were required to sign a paper stating that they were, in fact, being paid the prevailing wage.
One supervisor was surreptitiously filmed in the act of counting workers’ surrendered cash in the front seat of his car. (See video at brooklyneagle.com.)
K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour (or roughly $400 a day plus benefits) but actually paid daily cash salaries starting at just $90 per day and going, in some cases, as high as $200.
Part of the paper trail the Comptroller’s Office investigators uncovered in building a case against K.S. Contracting Corporation. Photo courtesy of the Office of the ComptrollerPart of the paper trail the Comptroller’s Office investigators uncovered in building a case against K.S. Contracting Corporation. Photo courtesy of the Office of the Comptroller
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. The majority of the workers were immigrants of Latino, South Asian, or West Indian descent.
Stringer said that the need to stand up for immigrants was especially important in the time of President Trump.
“Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City,” he said.
The brazen scheme had gone on for years; an employee first filed a complaint with the office in May 2010.
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015. The full details of what was going on came out at a four-day administrative trial in May 2016.
The company, incorporated in New Jersey, was awarded more than $21 million in contracts by the city’s Departments of Design and Construction, Parks and Recreation and Sanitation between 2007 and 2010. Projects included the District 15 Sanitation Garage and the Barbara S. Kleinman Men’s Residence in Brooklyn, the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the North Infirmary Command Building on Rikers Island, Bronx River Park, and various city sidewalks in Queens.
K.S. Contracting is not the only contractor to rip off its immigrant employees. Since taking office in 2014, Comptroller Scott M. Stringer’s Bureau of Labor Law has assessed more than $20 million and barred 40 contractors from state and city contracts due to prevailing wage violations, according to the Comptroller’s Office.
A number of workers’ rights groups and immigrant organizations praised the comptroller’s investigation.
"At a time when exploitative employers are feeling increasingly emboldened by Trump’s hateful rhetoric, it is imperative that our city's leaders are taking a strong stance in defense of immigrant workers,” Deborah Axt, executive director of Make the Road New York, said in a statement.
“Too many employers in New York City exploit minority and immigrant workers. And it’s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported,” said Lowell Barton, organizing director of Laborers Local 1010, LiUNA!
By Mary Frost
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White House: Obama won’t discuss interest rates with Yellen
President Obama met with Federal Reserve Chairwoman Janet Yellen on Monday, but one of the most pressing topics for the...
President Obama met with Federal Reserve Chairwoman Janet Yellen on Monday, but one of the most pressing topics for the central banker was not on the agenda.
Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair’s independence in setting monetary policy.
“I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently,” Earnest told reporters ahead of the meeting.
The closed-door discussion is instead an opportunity to “trade notes” on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.
Obama and Yellen talked about the growth outlook, “the state of the labor market, inequality and potential risks to the economy,” the White House said after the meeting.
Vice President Biden also attended the meeting with Yellen in the Oval Office.
The meeting comes at time when Yellen is grappling with whether to raise interest rates further amid conflicting signs about the health of the global economy.
Yellen hiked the benchmark rate to 0.25 percent last December, the first such increase since the 2008 recession.
But since then, the central bank has taken a cautious approach to further hikes.
Reserve officials left the rate unchanged last month and reduced their estimate of the number of increases that could take place this year from four to two.
Yellen said late last month the economic recovery remains on track in the U.S. despite signs of weakness abroad, such as low oil prices and anemic growth in China. Inflation has also yet to hit the Fed’s 2 percent target.
She indicated she would take a wait-and-see approach on rate hikes until the economy shows more signs of improvement.
“I consider it appropriate for the committee to proceed cautiously in adjusting policy,” she said in a speech at the Economic Club of New York.
Election-year politics could complicate the Reserve’s decision-making process.
Progressive groups are wary of further rate hikes, worried that upping the cost of borrowing could slow the pace of hiring and economic growth.
The left-leaning “Fed Up” campaign circulated a questionnaire to presidential candidates Monday asking whether the Fed “should be intentionally slowing down the economy in 2016” by raising rates.
Republican leaders have frequently accused Obama of being too reliant on Fed policy to drive the recovery, which they say hasn’t spread to large segments of the economy.
Obama hasn’t publicly commented on interest rates. But he has sounded a more optimistic tone than Yellen on the economy, trumpeting a string of positive employment reports and rising wages.
Jared Bernstein, a former chief economist for Biden, expressed confidence Yellen would be able to insulate her decision-making from the political debate.
“The Yellen Fed, and particularly Chair Yellen herself, has been extremely data-driven, and I expect that to continue,” he said.
“What will be motivating her is less electoral politics and more the actual state of the real economy,” he added. “People worried about the fed loosening in an election year to help the incumbent party. I don’t think that is in play this year.”
Did you know 67% of all job growth comes from small businesses? Read More
Obama does not meet frequently with the Fed chair to discuss the economy. Yellen’s last one-on-one sit-down with the president occurred in early November 2014.
“I think the president has been pleased with the way that she has fulfilled what is a critically important job,” Earnest said.
Even while he offered praise for Yellen, the spokesman said Obama “cares deeply about preserving both the appearance of and the fact of the independence of the Federal Reserve and the chair.”
By Jordan Fabian
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We Asked Brands How They Handled Their Own Racial Bias Incidents — Most Didn’t Answer
We Asked Brands How They Handled Their Own Racial Bias Incidents — Most Didn’t Answer
Brand: Zara Problem: In 2015, the Center for Popular Democracy surveyed workers at the New York stores of Spanish...
Brand: Zara
Problem: In 2015, the Center for Popular Democracy surveyed workers at the New York stores of Spanish retailer Zara. The survey found that the workers believed black customers were targets of racial profiling and that lighter-skinned employees had better hours and more opportunities for promotion in the company than darker-skinned employees.
Response: Zara denied the allegations.
What have they done to prevent racial targeting in the future? Representatives for the company didn’t answer Racked’s request for comment.
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Trump makes first mark on Fed as Senate approves key nominee
President Donald Trump officially made his first mark on the Federal Reserve on Thursday, when the Senate voted 65-32...
President Donald Trump officially made his first mark on the Federal Reserve on Thursday, when the Senate voted 65-32 to approve his first and only nominee to the central bank’s board.
Randal Quarles, a private equity investor and veteran of the Treasury Department, will also take over as the Fed's top banking regulator as the first appointee to the position of vice chairman of supervision, a role created by the 2010 Dodd-Frank Act.
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Meet The ‘Rapists’ Who Built Donald Trump’s Empire
As a real estate tycoon, Donald Trump built up and has given his name to ...
As a real estate tycoon, Donald Trump built up and has given his name to clothing lines, hotels,resorts, golf courses, a winery, and apartment buildings. And for a man who has unapologetically characterized Mexican immigrants as rapists and drug dealers, and has said that infectious diseases are spilling across the border, Trump has decided to work in industries where it’s impossible to avoid the Latino immigrants he is maligning.
A 2010 Current Population Survey found that more than 200,00 foreign-born workers work in the hospitality industry, nearly 1.2 million foreign-born workers hold construction occupations, and another 1.3 million foreign-born workers are employed in the food service industry. The data doesn’t break down the figures by nationality and legal status, though a Southern Poverty Law Center survey found that Latino immigrants are most often employed in construction, factory work, cleaning, and restaurant work.
A 2011 National Council of La Raza study corroborated those results, finding that nearly one in five employees in the accommodation industry is Latino. The group is also overrepresented in “nearly all the major service jobs in the accommodation industry,” the NCLR study stated.
For Trump, that overrepresentation of Latino laborers could very well mean that at least some of his workers are from the country that he’s made inflammatory remarks about. And if he took a stroll through some of the properties that he owns long after business hours are over, he might encounter many of these “good people“:
Construction workers
As the Washington Post reported this week, Trump relies on both undocumented and legal immigrants on the construction site of his hotel in Washington, D.C. Trump has also put undocumented immigrants on the payroll in the past. In the 1980s and 1990s, Trump was embroiled in a 15-year lawsuit for allegedly cheating 200 undocumented Polish immigrants out of meager wages and fringe benefits during the demolition of the building that preceded Trump Tower, the New York Times reported in 1998.
Trump doesn’t think it’s “crass” to tell people that he’s “really rich,” (he has a net worth anywhere between $4.1 billion and $8.7 billion), but his wealth isn’t solely from his own doing. He likely had help — as he currently does in D.C. — from immigrants like Ramon Alvarez, a window worker, who told the Washington Post, “Do you think that when we’re hanging out there from the eighth floor that we’re raping or selling drugs? We’re risking our lives and our health. A lot of the chemicals we deal with are toxic.”
A 2013 Center for Popular Democracy report found that the majority of construction site accident victims in New York State are Latinos and/or immigrant workers. Only 34 percent of all construction workers in New York state are Latino and/or an immigrant, but they comprise 60 percent of all OSHA-investigated “fall from an elevation fatalities” in the state. A 2008 Pew Hispanic study found that 17 percent of construction workers were undocumented.
Some of these workers are subject to wage theft. Fernando, an undocumented construction worker and painter, told ThinkProgress in March that he joined an union because “the contractor refused to pay me and they helped me get my money back.” He was also serious injured twice on the job, once in Galveston, Texas after Hurricane Ike.
Golf course maintenance workers
About 180,000 maintenance workers keep the nation’s 15,619 golf courses green and pristine across the country. As a four-part Golf Digest series documented, immigrants do most of the maintenance work on golf courses. “We get up early and try to stay out of the way,” one golf course worker told Golf Digest. “We don’t know anything about the players, and they don’t know anything about us.”
Most of the time, American workers just aren’t “willing to do those jobs,” Chava McKeel, the associate director of government relations for the GCSAA said.
“The Golf Course Superintendents Association of America (GCSAA) estimates that two-thirds of the maintenance workforce is Latino, with the largest presence in California, Texas and Florida (85 percent), followed by the Northwest (50 percent) and the Midwest/Mideast (10 to 20 percent),” Golf Digest reported. A 2008 Cornell study backs up the findings, noting that superintendents responding to their survey indicated that “72 percent of their workforce at the peak of the season was Hispanic.”
The Trump organization owns seven golf courses throughout the country. The PGA of America saidon Tuesday that the Grand Slam of Golf tournament won’t be played at the Los Angeles golf club.
Restaurant workers
The 2008 Pew Hispanic study found that about one in ten workers in the restaurant industry is an immigrant. Of those, about 20 percent of restaurant cooks and 30 percent of dishwashers are undocumented, Seattle’s KUOW reported.
Latinos are “disproportionately likely to be dishwashers, dining room attendants, or cooks, also relatively low-paid occupations,” an Economic Policy Institute report stated last year. The study also found that “one in six restaurant workers, or 16.7 percent, live below the official poverty line” while “more than two in five restaurant workers, or 43.1 percent, live below twice the poverty line.”
Restaurateur and TV star Anthony Bourdain told the Houston Press in 2007, “It is undeniable…I know very few chefs who’ve even heard of a U.S.-born citizen coming in the door to ask for a dishwasher, night clean-up or kitchen prep job.”
Though Trump is mainly in the hotel business, his establishments have restaurants, like the Trump Grill located in the atrium of the Trump Tower and The Terrace at Trump Chicago. However, his recent comments are threatening to derail plans for a new restaurant at the planned Trump International Hotel in D.C. At least 2,510 people have already signed a petition asking Chef Jose Andres to back out of working at the restaurant.
Hotel workers
According to the 2015 Bureau of Labor Statistics, there are about 36,700 Latinos working in the building and grounds cleaning and maintenance occupations, such as janitors, maids and housekeepers, pest control workers, and grounds maintenance staff. There are also an additional25,100 hotel, motel, and resort desk clerks who identify as Latino.
A 2009 study of workers across 50 U.S. hotels found that Latino women are twice as likely to be injured as white house keepers and 1.5 times more likely to be injured than men. The New York Times reported that housekeepers have a high injury rate since they have to do repetitive tasks, lift heavy mattresses, and work quickly to clean rooms.
“I have worked as a housekeeper for about 13 years. I work in pain constantly. My body aches all over, but most of all my back from bending and lifting throughout the day,” one housekeeper who worked at a Hyatt hotel said, according to a Work Safe report.
Unlike Trump, some conservative hoteliers have recognized the necessity of immigrant workers. J.W. Bill Marriott, then CEO and now Executive Chairman and Chairman of the Board of Marriott International, has called for immigration reform several times in 2007, 2010, and again in 2012.
Source: ThinkProgress
Gillibrand Has Received Big Campaign Donations from Puerto Rico Bondholders
Gillibrand Has Received Big Campaign Donations from Puerto Rico Bondholders
“Politicians that receive money from hedge fund managers like Seth Klarman and Dan Loeb should understand that their...
“Politicians that receive money from hedge fund managers like Seth Klarman and Dan Loeb should understand that their money is coming from people who have pushed austerity and privatization as the solution to Puerto Rico’s humanitarian crisis,” Julio Lopez Varona, co-director of the Community Dignity Campaign with the Center for Popular Democracy, told Sludge. “This solution has proven to help the rich get richer and the poor get poorer while pushing hundreds of thousands to leave the island.”
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At Swanky Federal Reserve Retreat, “Computer Glitch” Cancels Minority Protesters’ Hotel Reservations
At Swanky Federal Reserve Retreat, “Computer Glitch” Cancels Minority Protesters’ Hotel Reservations
THE KANSAS CITY Federal Reserve’s annual symposium in Jackson Hole, Wyoming, attracts central bankers, economists and...
THE KANSAS CITY Federal Reserve’s annual symposium in Jackson Hole, Wyoming, attracts central bankers, economists and the global elite. The past two years, some new faces came to Jackson Hole: low-wage workers who object to the Fed raising interest rates when too many at the bottom rungs of the economic ladder still struggle.
This year, somebody appears to be ensuring that ordinary people won’t disrupt the party.
The Fed Up campaign, a coalition that brought the workers to Jackson Hole in 2014 and 2015, has filed a formal complaint with the departments of Justice and the Interior, along with the National Park Service, because their hotel reservations for this year’s conference were mysteriously canceled.
Despite paying in advance for spots at the 385-room Jackson Lake Lodge, the Grand Teton Lodge Company told the campaign July 26 that their reservations would not be honored, citing a “computer glitch.” Grand Teton operates the lodge, a publicly owned facility, under a contract with the National Park Service.
Thirty-nine members of the coalition planned to attend this year, but the lodge said computer glitch resulted in overbooking its rooms by 18. Instead of spacing that out among all Jackson Lake lodge guests, the company cancelled all 13 of the Fed Up campaign’s rooms. So nearly three-quarters of the cancelled reservations belonged to the Fed Up group, even though they were told when they booked that 100 rooms were still available at the lodge.
“There is no legitimate explanation for the company’s decision,” wrote Fed Up campaign chair Ady Barkan in the complaint, which alleges possible violations of the Civil Rights Act of 1964 and the First Amendment right to peaceable assembly. “This is egregious and disparate treatment.”
The coalition’s reservations were made in the names of staffers for three of its member organizations – the Center for Popular Democracy, the Economic Policy Institute, and the Center for Economic and Policy Research – using work email addresses.
In an email statement, Alex Klein, vice president and general manager of Grand Teton Lodge Company, said: “This summer we encountered an error with our booking system that resulted in our Jackson Lake Lodge property being oversold by 18 rooms for three peak nights in August. We worked proactively and diligently with guests to relocate them to our nearby Flagg Ranch property, and offered to keep them on a wait list for available rooms should there be cancellations at the Jackson Lake Lodge. We regret inconveniencing any of our guests.”
The Jackson Hole symposium takes place from August 25-27. The event typically features a highly anticipated speech by the Federal Reserve chair – Janet Yellen is expected this year.
In 2014 and 2015, Fed Up brought unemployed workers and local activists to Jackson Hole to highlight how the economy has left behind communities of color and to urge the Fed to hear their voices. Last year, they held an alternative conference in Jackson Hole lodge conference rooms, featuring economists like Nobel Prize winner Joseph Stiglitz.
This year, Fed Up planned to hold a teach-in outside of the lodge, and secured permits for a protest. They still expect 120 members, their largest contingent ever, to attend the proceedings, but they will have to stay in alternative accommodations that are a 20- to 30-minute drive away, separate from symposium guests and the press.
The majority of Fed Up members planning to attend the conference are African-American and Latino, which is why the campaign wants the Justice Department to investigate the matter as a violation of laws ensuring nondiscriminatory treatment in public accommodations. They also want to know if the Kansas City Federal Reserve was at all involved with the decision.
Kansas City Federal Reserve President Esther George has consistently drawn criticism from the Fed Up coalition for wanting to raise interest rates and slow down the economy.
The lodge’s general manager told Fed Up that their reservations were pulled because they were booked in a group of 13, making it easier to cancel them. This, the campaign believes, also violates First Amendment rights to freedom of assembly.
“I recognize that our presence is not desired by either the company or the organizers of the symposium,” Barkan wrote. “But the physical and virtual segregation of Federal Reserve decision-makers far away from the voices and opinions of working class people of color is precisely what the Fed Up coalition is trying to dismantle.”
The incident comes at a sensitive time for the Federal Reserve, which has already been criticized by 127 members of Congress for a lack of diversity among its leadership, which is disproportionately white, male, and either current or former executives of large corporations and financial institutions. Activists believe this homogeneity in race, gender, and background drives central bank decisions that cater to the wealthy and neglect communities of color.
Barkan’s letter to Justice and the Interior concludes: “Once again, the voices and faces of working class people of color have been marginalized … and an opaque, inaccessible, and incredibly powerful quasi-governmental institution has received a bit more insulation from the opinions of the people over whose lives it has so much power.”
The Intercept has reached out for comment to the Justice Department, the Interior Department, and the National Park Service, but did not immediately hear back.
Top photo: National Park Rangers stand silhouetted inside the lobby of Jackson Lake Lodge during the Jackson Hole economic symposium in August 2015.
By David Dayen
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Fighting for Puerto Rico: The Struggle Against Post-Hurricane Privatization
Fighting for Puerto Rico: The Struggle Against Post-Hurricane Privatization
Today we bring you a conversation with Julio López Varona, the director of Make the Road Connecticut, who also works as...
Today we bring you a conversation with Julio López Varona, the director of Make the Road Connecticut, who also works as a consultant with the Center for Popular Democracy and helps lead the Hedge Clippers' corporate accountability campaign on Puerto Rico.
Read the full article here.
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