Witching Hour interview: Fighting economic injustice with attorney Shawn Sebastian
Witching Hour interview: Fighting economic injustice with attorney Shawn Sebastian
We have not fully recovered from the 2008 crash,” Sebastian told Little Village. “The hole we were put into, the hole we were thrown into by the financial industry 10 years ago, we have not gotten...
We have not fully recovered from the 2008 crash,” Sebastian told Little Village. “The hole we were put into, the hole we were thrown into by the financial industry 10 years ago, we have not gotten out of yet. The wealth that was lost, no one has recovered from that. Everyone is poorer than they were, especially black families have had almost all of their wealth wiped out.
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How to Help Puerto Rico, Even When the President Won't
How to Help Puerto Rico, Even When the President Won't
Donald Trump's idea of humanitarian aid to Puerto Rico is throwing paper towel rolls to a crowd. His callous and grandstanding attitude following Hurricane Maria's devastation is breathtaking,...
Donald Trump's idea of humanitarian aid to Puerto Rico is throwing paper towel rolls to a crowd. His callous and grandstanding attitude following Hurricane Maria's devastation is breathtaking, even for a man who uses a golden toilet. His cheap imitation of a T-shirt cannon was enough to make America collectively throw the phones we watched it on into the sea. If you're looking for less expensive ways to channel your rage, consider donating time, money or supplies to organizations and individuals on the ground in Puerto Rico.
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Today we CAN do something to honor Heather Heyer. We can stand up against the hate that killed her.
Today we CAN do something to honor Heather Heyer. We can stand up against the hate that killed her.
We can honor Heather in the same way she stood up for justice and equality. We can rise up against the hate that took her life and that targets even more of our fellow Americans. There are events...
We can honor Heather in the same way she stood up for justice and equality. We can rise up against the hate that took her life and that targets even more of our fellow Americans. There are events taking place all across the country today against the hate and violence on display in Charlottesville this weekend. Find one and be there. If you can’t, please help spread the word so others may do so.
Read the full article here.
The Controversial New Argument For The Fed To Raise Interest Rates
The Federal Reserve has kept its main interest rates, which banks use to lend to one another and determine the cost of credit throughout the rest of the economy, at or near zero since December...
The Federal Reserve has kept its main interest rates, which banks use to lend to one another and determine the cost of credit throughout the rest of the economy, at or near zero since December 2008. The central bank has maintained the low rates so as not to disrupt the country's recovery from the largest financial crisis and recession in decades.
But several current and former senior economic officials told the Wall Street Journal earlier this month that the virtually unprecedented, prolonged period of near-zero rates risks depriving the Fed of the “ammunition” to address the next recession -- let alone another financial crisis. The Fed's primary method of economic stimulus, they note, has traditionally been cutting interest rates, something that is not possible if rates are already so low.
That could force the government to rely disproportionately on fiscal stimulus, these experts warn, holding a recovery hostage to a partisan ideological divide that has paralyzed Congress and shows no signs of abating.
None of the officials who spoke to the Wall Street Journal explicitly called for an interest rate increase in order to keep the Fed’s options open for the next crisis. The main reason that Fed officials publicly provide for a rate hike is still that they believe price inflation is on track to hit the Fed’s 2 percent target. (William Dudley, president of the Federal Reserve Bank of New York, signaled on Wednesday that the the Fed was reconsidering a September interest rate hike after several days of volatility in the stock market.)
But Fed watchers believe that a desire to replenish the Fed’s proverbial firepower for the next recession is part of the motivation of Fed officials who want to “normalize” -- i.e., increase -- rates.
Narayana Kocherlakota, the outgoing president of the Federal Reserve Bank of Minneapolis,vehemently opposes an interest rate hike in the near future. Kocherlakota nonetheless believesthat his central bank colleagues’ perception that low interest rates have given the Fed less “monetary policy ‘space’” will prompt them to raise rates sooner and higher than is desirable.
Jack McIntyre, a portfolio manager and senior research analyst at Brandywine Global, a Philadelphia-based asset management firm, also said those concerns are part of the Fed’s calculus. “Yes, the [Fed would] like to remove emergency-level monetary stimulus to build up ammunition for the next slowdown in the U.S. economy,” McIntyre told The Huffington Post. “It would be a net positive to move us off of zero interest rates to build up some ammunition so they can cut them when it slows down.”
Many economists insist, however, that these fears are misplaced. They instead argue that the best way for the Fed to prepare for the next recession is to prevent the economy from slowing down too soon in the near term.
“I would much rather have the Fed engage in slowdown and recession prevention by getting us to reach levels at which a rate hike would not be premature,” Josh Bivens, research and policy director at the left-leaning Economic Policy Institute, said earlier this week.
If the Fed raises rates in the coming months to give itself leeway for the next recession, Bivens warned, it risks “creating the crisis you are trying to have tools to fight against.”
Bivens is one of a number of liberal-leaning economists and activists who argue that the economy is still far from full employment. They want the Fed to wait for widespread wage growth to take hold before raising rates, and they were in Jackson Hole, Wyoming, on Thursday and Friday to make their case to Fed officials directly.
When the economy slows down more substantially, Bivens said, the Fed could still stimulate growth using quantitative easing, the massive asset purchasing program it initiated during the most recent recession after interest rates had already bottomed out.
There are other even less conventional techniques available to the central bank, like instituting negative interest rates, which would effectively charge banks for depositing their money rather than lending. It is an idea that former Fed chair Ben Bernanke told The Wall Street Journal has merit.
Richard Parker, an economist at Harvard, agrees with Bivens and other economists that middle- and lower-income workers have yet to share in the gains of the current recovery, but is less worried about the damaging effect of a rate hike.
Instead, Parker believes that lawmakers and activists concerned about low wage growth should focus on changing the regulatory and fiscal policies that he believes would have a bigger impact.
Parker supports a “retained earnings tax” that would penalize corporations for hoarding cash for stock buybacks and other actions “meant to bolster share prices (and hence bonuses)” that do little for the real economy.
And while Parker acknowledges that partisan gridlock makes the prospects of pro-growth fiscal policy dim at the federal level, he sees the success of efforts to raise the minimum wage at the state and local level as a model for incremental progress.
“It is beginning to look like the early Progressive Era, when states were the laboratories for democracy,” he said.
Source: Huffington Post
Volatile Schedules Exacerbate Inequality
New York Times - July 23, 2014, by Carrie Gleason - Across the economy, workers are either employed for too few hours or far too many in an ever-changing workweek that demands 24/7 availability,...
New York Times - July 23, 2014, by Carrie Gleason - Across the economy, workers are either employed for too few hours or far too many in an ever-changing workweek that demands 24/7 availability, without guarantees of equal treatment or employee input.
The volatile work schedules of today erode earning potential, push workers out of the work force, and exacerbate inequality, especially for women and workers of color who are more likely to work part-time jobs. For a fair paycheck, these workers need wages and hours with dignity.
Workers, especially women, are coming together to say we need a voice in how much and when we work — so we can raise our families and join the middle class. Tiffany Beroid, who worked at Walmart, and Melody Pabon, who works at the clothing store Zara, both had fluctuating part-time schedules that made it impossible to keep their kids in stable childcare and plan their own schooling.
Ms. Beroid dropped out of school for a semester because Walmart cut her hours when she requested a new schedule. Ms. Pabon took her son out of formal childcare because her part-time job didn’t pay enough to cover the cost. Ms. Beroid and Ms. Pabon are part of the movement to restore a fair workweek, organizing at their jobs and sharing their stories on Capitol Hill at the introduction of the federal Schedules that Work Act.
This legislation would set standards for low-wage occupations. It would require two weeks notice of schedule changes, notification of minimum work hours and extra pay for on-call shifts or for workers who are sent home early. It would also give workers the right to request reasonable scheduling accommodations for serious health conditions, caregiving responsibilities and school.
While companies have a choice in how they schedule employees, the personal stories we've heard show that we can’t count on companies to do the right thing on their own. Along with the federal legislation, a new bill in San Francisco would provide new protections for part-time workers.
These proposals would create a new baseline of legal protections to ensure equity in the hours we work.
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Immigrant rights demonstrators find locked doors at Bank of American HQ
Immigrant rights demonstrators find locked doors at Bank of American HQ
A group of about a dozen activists tried to deliver a list of demands at Bank of American Headquarters in Charlotte Monday but found the doors locked as they attempted to enter the building. A...
A group of about a dozen activists tried to deliver a list of demands at Bank of American Headquarters in Charlotte Monday but found the doors locked as they attempted to enter the building. A security guard accepted a letter from the group.
It was part of the grassroots fight to shield Mecklenburg County’s estimated 54,000 undocumented immigrants from deportation.
Read full article here.
The Real Threat to the Fed’s Independence Is Wall Street, Not Trump
The Real Threat to the Fed’s Independence Is Wall Street, Not Trump
“But the real threat to the Fed’s independence isn’t coming from Trump—it’s coming from Wall Street. The Fed’s structural flaws have led to regulatory capture, which compromises its ability to set...
“But the real threat to the Fed’s independence isn’t coming from Trump—it’s coming from Wall Street. The Fed’s structural flaws have led to regulatory capture, which compromises its ability to set monetary and regulatory policy in a manner that isn’t tilted to favor those at the very top of the economic ladder. Trump may have broken a norm by commenting on monetary policy, but the Fed’s status quo is unaccountable, opaque decision-making shaped by deep conflicts of interest with the very financial institutions the Fed is ostensibly supposed to supervise.
Read the full article here.
HUD tenants rally against proposed budget cuts
HUD tenants rally against proposed budget cuts
On Friday, tenants, homeowners and activists came together in more than 15 cities across the U.S. to band against the proposed budget cuts to the U.S. Department of Housing and Urban Development...
On Friday, tenants, homeowners and activists came together in more than 15 cities across the U.S. to band against the proposed budget cuts to the U.S. Department of Housing and Urban Development.
Some protesters gathered at rallies at local HUD offices as others delivered letters and petitions to their members of Congress, demanding they vote against President Donald Trump’s proposed cuts. Tenants will gather at Church of the Reformation, 212 E Capitol Street, NE, at 12:30 on Wednesday to rally and kick off the march.
Read the full article here.
U.S. lawmakers urge Yellen to diversify the Fed
U.S. lawmakers urge Yellen to diversify the Fed
U.S. lawmakers including Senator Elizabeth Warren and Democratic presidential candidate Bernie Sanders on Thursday sent a letter to Federal Reserve Chair Janet Yellen urging more diversity at the...
U.S. lawmakers including Senator Elizabeth Warren and Democratic presidential candidate Bernie Sanders on Thursday sent a letter to Federal Reserve Chair Janet Yellen urging more diversity at the U.S. central bank.
Ten of the Fed's 12 regional bank presidents are men; 11 of them are white, the letter noted.
"Given the critical linkage between monetary policy and the experiences of hardworking Americans, the importance of ensuring that such positions are filled by persons that reflect and represent the interests of our diverse country cannot be understated," said the letter, signed by 116 members of Congress and 11 Senators.
The Fed has come under fire in recent months from both Republicans and Democrats, including candidates for the 2016 presidential campaign, for a range of perceived failings, from its process to deciding monetary policy to its governance. Those calls have emboldened lawmakers who seek to limit the Fed's powers and are prompting some current and former Fed officials to call for steps to placate the bank's harshest critics.
A Federal Reserve Board spokesman said the U.S. central bank was committed to diversity and was already taking steps to bring more women and minorities into its leadership ranks.
Minorities now make up 24 percent of regional Fed bank boards, up from 16 percent in 2010; 46 percent of all directors are either non-white or a woman, the spokesman said, adding, "we are striving to continue that progress."
Reporting by Ann Saphir; Editing by James Dalgleish
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The public compact
The public compact
It is always amusing to be the subject of a John McClaughry jeremiad. While I don’t mind being labeled as the “foremost defender” of public education, he insists on giving me full personal credit...
It is always amusing to be the subject of a John McClaughry jeremiad. While I don’t mind being labeled as the “foremost defender” of public education, he insists on giving me full personal credit for what is a state school board position.
In the instant case, John appears to be affronted by the suggestion that private (independent) schools that take public money must actually be held accountable for that money. This principle is at the core of the state board’s review of the independent school rules. Now this seems like a straightforward and fundamentally democratic concept that is generally accepted, but it has been a long-standing problem for some.
The law (16 VSA 166) provides a list of reporting requirements for independent schools if they want to chow down at the public trough. Unfortunately, as far back as the 1914 Carnegie Commission, we find evidence of the refusal of some independent schools to provide private school data even though it was the law of the land. (At that time, the Cubs were still basking in the glory of their World Series victory.)
The second paramount principle is that we have to educate all the children — regardless of needs and handicaps. That’s a necessity in a democracy. Denying a child admission on the basis of a handicap is, in most cases, illegal. Furthermore, it’s wrong. Public schools serve every child. The false fear John peddles is that the private school can’t afford to serve these children. That’s incorrect. It’s really quite simple. While great eruptions of umbrage are displayed, this problem has been solved for years. The private school contracts with (or hires) a specialist who bills the costs back to the public school. Approval in a given area requires that one sheet of paper be filed with the state. As simple as the solution actually is, some independent schools refuse to adopt an equal opportunity policy.
Instead, John proposes that Vermont “clone” Florida’s McKay Scholarship program where parents can choose the school for their handicapped child. That hasn’t worked out too well. If you think a “business management class” that sends students onto the street to panhandle is an acceptable education, then the McKay program may be just your thing. The Florida Department of Education has uncovered “substantial fraud,” including schools that don’t exist, non-existent students, and classes held in condemned buildings and public parks. And the state of Florida does not have the staff to adequately monitor the program. This is a recipe for abuse. Last May, the Center for Popular Democracy estimated that $216 million in charter school money went out the back door.
Finally, John raises the cost question and says private school scholarships would be “less expensive.” Yet he also criticizes the cost of the state’s excess public school capacity. Now let’s look at Vermont’s private independent school numbers. In 1998, there were 68 independent schools, and by 2016, the number had exploded to 93. In the decade 2004-14, independent school enrollments went down from 4,361 to 3,392. A 37 percent increase in schools with a 29 percent drop in students suggests somebody needs to revisit their business plan.
Taking it all together, (1) all who profit from the public treasury must be accountable for that money, (2) children have the right to be admitted to private schools, free of discrimination, on an equal opportunity basis, (3) private schools are a part of our system, (4) the public purse must be protected from fraud and abuse, and (5) directly or indirectly building and operating a parallel school system would be inordinately expensive and wasteful. Do these principles sound reasonable?
William J. Mathis is managing director of the National Education Policy Center and a member of the Vermont state Board of Education. The views expressed here are his own and do not represent the views of any group with which he is associated.
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