Campaign News

The Federal Reserve is usually understood as the bankers' bank. But what if it was the people's bank?

At the Fed's annual Jackson Hole conference last week, an assortment of community organizers, activists, labor organizations, and economists showed up to push America's most important financial institution towards putting the concerns of working and nonwhite Americans at the center of monetary policy. The group, called Fed Up, has met with Federal Reserve officials before, but Thursday's meeting was nonetheless unprecedented and striking — both for being on the record, and for the detailed, impassioned, occasionally heated, and remarkably pointed conversation that resulted.

Fed Up's complaints are several. The Fed is too worried about inflation, the activists say, and not worried enough about pushing the boundaries of maximum employment when it sets interest rates. They also argue the population of Fed officials is not diverse enough along racial, gender or class lines, and that the Fed itself could do with some institutional reform.

To a large extent, Fed officials agreed: "I'd be surprised if anyone in the Federal Reserve thinks we've done well on [diversity]," said New York Fed President William Dudley. "We're going to run this economy hot. Get unemployment down lower," added San Francisco Fed President John Williams. "So I don't think we disagree about that basic view."

And in Fed official's defense, some of this balancing is a judgment call. The Fed's inflation target is 2 percent, but since that is neither a ceiling nor a floor, officials must decide how far to overshoot that target and for how long in the name of spurring job growth. There is also generally a lag time between a change in interest rates and when it's felt in the economy. So Fed officials have to make educated guesses about when to drop rates to firm up a stumbling economy or raise them to get ahead of inflation.

Finally, Fed officials themselves can disagree over the full extent of their powers. That point was illustrated in Thursday's meeting when Boston Fed President Eric Rosengren and Fed Vice Chair Stanley Fischer disagreed over just what tools the Fed has to deal with asset bubbles. (Rosengren argued there were lots of tools while Fischer insisted there were few.)

The first complication here is that, even from a technical perspective, it's hard to see why the Fed is even contemplating another interest rate hike in December. Rod Adams, a neighborhood organizer from Minneapolis, noted in a particularly impassioned moment that there's essentially no indication that inflation is on the rise. Fed officials' own projections show inflation will just barely touch 2 percent through 2018. Josh Bivens, an economist at the Economic Policy Institute who joined Fed Up at Jackson Hole, argued that fully healing the damage from the Great Recession will require a prolonged period of overshooting the Fed's inflation target.

And in truth, none of the Fed officials at the meeting really debated any of these points. What did come up was the threat of asset bubbles and financial instability. "One of the ways that you get maximum employment is that you don't allow excesses to build up to the point that you actually have another recession, which hurts everybody in the room," Rosengren said.

This is where the unspoken moral problem of Fed policy really becomes inescapable. In very broad terms, the effects of lower interest rates and higher inflation tend to fall harder on the more fortunate members of society: retirees with savings portfolios, people with financial assets, those who work in the financial industry, and so on. Meanwhile, the effects of raising interest rates and slowing down jobs and wage growth tend to fall hardest on the least fortunate: Racial minorities, people with only a high school education, or people with prior criminal records.

At any given moment, unemployment for African-Americans is roughly double the national unemployment rate. But that gap tends to close during boom times and widen during downturns. "The economy has recovered for much of white America, but for black and Latino workers it has not," said Adams. "If you decide that we're at maximum employment now and you intentionally slow down the economy, you'll be leaving us behind, pulling up the ladder right after you've climbed it."

The brutal truth is that when the Fed slows down the economy by raising rates, it is throwing people out of work. And the people most likely to be thrown out of work first are those forced to the fringes of the labor market already by discrimination and other circumstances. So raising interest rates to fight financial instability essentially means black, Latino, and other underprivileged workers are the first to be thrown on the sacrificial alter to save us all from Wall Street's irrational exuberance.

This is partly why Fed Up is pushing for more racial and gender diversity among Fed officials, and to remove the financial industry from its privileged position among those officials. The idea is that the voices of those people the Fed will help or harm should all be equally heard in its deliberations. Fed officials may agree on running the economy hot for a while, but the lack of those voices may be hiding just how hot we need to run it.

There are practical policy changes the Fed could make as well. Bivens has released work on alternative tools the Fed could develop to pop bubbles without causing all that collateral damage: Higher capital requirements for banks, more use of its research powers and public relations to alert the markets to bubbles, and other ideas that already lie in the scope of the Fed's powers. Rosengren said the Fed should use all tools at its disposal to fight financial instability. But if Fed officials are looking for practical ways to build Fed Up's concerns more fully into its ways of doing business, it could start by developing those tools and explicitly rejecting interest rate hikes as a way to combat bubbles.

Another would be to adopt a higher inflation rate target like 3 percent or even 4 percent. If the effects of maximum employment take longer to reach marginalized communities, then the 2 percent target is driving the Fed to cut off job growth before those communities can ever heal.

It should be noted, as Fed Up activists did, that within the scope of its tools, the Fed has actually done a far better job maximizing jobs for marginalized Americans than Congress or the state governments. To some extent, the Fed is catching heat because these it's actually willing to listen to reason.

But it's long been said that societies are judged by how they treat their weakest and most vulnerable citizens — that the powerless have a uniquely powerful claim on our responsibilities. And Thursday reminded us that truism applies to the Fed too.

By Jeff Spross

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The Washington Post - December 6, 2013, by Valerie Strauss - A coalition of education, labor, civic and civil rights organizations, led by the American Federation of Teachers, is staging a “National Day of Action” on Monday with dozens of coordinated events in cities across the country that are aimed at building a national movement to fight corporate-influenced school reform and offer alternative ways to improve public education. The AFT is buying $1.2 million in radio, print and online ads to get out the message.

Protests have been building this year in different parts of the country against the education reform movement that is dominated by the use of standardized test scores as the chief “accountability” metric and school “choice” that has led to the growing privatization of public schools. The AFT says that Monday will be the first time so many events — protest marches, news conferences, and town halls scheduled in 60 cities including Washington, D.C., New York, Chicago, Austin, Houston and other Texas cities, Boise, Los Angeles and several locations in Florida — have been coordinated to send a message to policymakers that school reform should be focused not on closing schools, punishing teachers and deluging kids with tests but on providing teachers and students with the resources they need to teach and learn.

“Teachers, parents, students and community members are banding together to demand a new direction for public education,” AFT President Randi Weingarten said. “In some ways, this Day of Action is years in the making. Parents, students, teachers and community members have been coming together in places like Chicago, Philadelphia and New York to call out what’s not working and create solutions that do. Text-fixation, austerity, privatization, division, competition are not working for our students – as we saw in the PISA results this week. Our schools need evidence-based, community-based solutions like early childhood education, wraparound services, professional autonomy and development, parent voices and project-based learning. That’s what this Day of Action is about. That’s what reclaiming the promise is about. These are our schools and they need our solutions.”

Dozens of organizations representing parents, educators, clergy, civil rights activists, and community groups are participating in the event, which is being sponsored nationally by these groups:  Alliance for Educational Justice,  American Federation of Teachers, Annenberg Institute for School Reform, Dignity in Schools Coalition, Gamaliel Network, Journey for Justice Alliance, Leadership Center for the Common Good, League of United Latin American Citizens, National Education Association, National Opportunity to Learn Campaign and the Service Employees International Union.

In October, a number of organizations came together to come up with a strategy to build a national movement around shared principles, which you can read find here. Among the principles:

Public schools are public institutions.

Our school districts should be committed to providing all children with the opportunity to attend a quality public school in their community. The corporate model of school reform seeks to turn public schools over to private managers and encourages competition — as opposed to collaboration — between schools and teachers. These strategies take away the public’s right to have a voice in their schools, and inherently create winners and losers among both schools and students. Our most vulnerable children become collateral damage in these reforms. We will not accept that …

Our voices matter.

Those closest to the education process — teachers, administrators, school staff, students and their parents and communities — must have a voice in education policy and practice. Our schools and districts should be guided by them, not by corporate executives, entrepreneurs or philanthropists. Top-down interventions rarely address the real needs of schools or students …

Strong public schools create strong communities.

Schools are community institutions as well as centers of learning. While education alone cannot eradicate poverty, schools can help to coordinate the supports and services their students and families need to thrive. Corporate reform strategies ignore the challenges that students bring with them to school each day, and view schools as separate and autonomous from the communities in which they sit.

• “Community Schools” that provide supports and services for students and their families, such as basic healthcare and dental care, mentoring programs, English language classes and more, help strengthen whole communities as well as individual students …

Assessments should be used to improve instruction.

Assessments are critical tools to guide teachers in improving their lesson plans and framing their instruction to meet the needs of individual students. We support accountability. But standardized assessments are misused when teachers are fired, schools are closed and students are penalized based on a single set of scores. Excessive high-stakes testing takes away valuable instructional time and narrows the curriculum — with the greatest impact on our most vulnerable students.

Quality teaching must be delivered by committed, respected and supported educators.

Today’s corporate reformers have launched a war on teachers. We believe that teachers should be honored. Teaching is a career, not a temporary stop on the way to one. Our teachers should be well-trained and supported. They should be given the opportunity to assume leadership roles in their schools. Highly qualified teachers and school staff are our schools’ greatest assets. Let’s treat them that way …

Schools must be welcoming and respectful places for all.

Schools should be welcoming and inclusive. Students, parents, educators and community residents should feel that their cultures and contributions are respected and valued. Schools that push out the most vulnerable students and treat parents as intruders cannot succeed in creating a strong learning environment. Respectful schools are better places to both work and learn …

Our schools must be fully funded for success and equity.

More than 50 years ago, in Brown v. Board of Education, the U.S. Supreme Court acknowledged that African-American students were being denied their constitutional right to an integrated and equitable public education. We have not come far enough. Today our schools remain segregated and unequal. When we shortchange some students, we shortchange our nation as a whole. It is time to fund public schools for success and equity, for we are destined to hand off the future of our nation to all our young people.

• We must end the practice of funding our schools based on local property wealth. Only when we take responsibility for all our schools, and all our children, will schools succeed for all our society …

The events planned for Monday’s National Day of Action include a town hall in Washington, D.C., at which teachers and parents will develop a community-driven vision for public schools, starting at 6 p.m. at Eastern High School.  In New York City, union, community and youth partners fighting to win universal full-day prekindergarten will host a rally marking the start of a joint labor-community campaign to support new education initiatives as part of a “new day for public education in New York City” under Mayor-Elect Bill de Blasio.

In Houston, union and community partners will hold a news conference and rally outside the school board offices, where they will call for an end to an overreliance on tests and for fair teacher evaluations. In Chicago, organized parents, teachers and youths will hold a news conference at City Hall and a march to the headquarters of corporate agents such as Loop Capital to demand equitable funding and a public voice in education. In Boise, Idaho, parents, teachers and several community organizations will gather around the state Capitol to support school funding for Idaho public schools, which have some of the lowest state funding in the country.

Here’s how an action in Philadelphia is described on the event list:

A powerful contingent of community and youth groups, parents and labor unions will rally outside Gov. Tom Corbett’s Philadelphia office in coordination with partners in Pittsburgh, followed by a march to the corporate office of Loop Capital, an Illinois bank that has contributed to the privatizing of schools in Chicago and handed out bad interest loans that have crippled Philadelphia’s school system. The union-community alliance is fighting to restore statewide education funding, establish a new equitable education funding formula in 2014, and demand that Loop Capital pay back the bad loans.

The sponsors are the National Day of Action are planning more action in the spring.

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From Applebee's to Uber, employers require workers to waive their rights to class-action lawsuits—but there's something cities can do to help them.

Read the full article here.

Penn Live – August 5, 2013, by Ivy DeJesus - Close to 100 protesters rallied on Monday within ear shot of a political event in Harrisburg headlined by House Speaker John Boehner and Rep. Scott Perry (PA-4) to demand immigration reform.

Chanting in English and Spanish, protesters made their way from the City Island parking lot up to the path leading to Metro Bank Park where the Republican lawmakers held a fundraiser.

Protesters carried placards and shouted in unison a string of chants, including: “Serve the needy, not the greedy,” and “Move Boehner, get out of the way. You’re not welcome in Pa.”

The rally was organized by a coalition of advocacy groups, among them Keystone Progress, Pennsylvanians United for Immigration Reform, Center for Popular Democracy and Central PA Area Labor Federation. The majority of participants drove in from other parts of the state or were bused in.

As House members return to their districts for August recess, representatives of the coalition said they intended to take their messages to lawmakers’ local offices.

Perry’s 4th congressional district encompasses York County and parts of Dauphin County.

Hiro Nishikawa, one of the protesters, said that the long-simmering debate is finally getting widespread public attention.

Nishikawa said immigration policy continues to be dictated by outdated laws, including the 1996 law that mandates detention and apprehension of undocumented immigrants who have any prior police records. The law has led to approximately 400,000 undocumented immigrants being detained under the Obama Administration.

“People recognize things are messed up,” Nishikawa said. “The huge concern is the fairness of the law. It needs to be changed.”

Amid widespread calls for an immigration policy overhaul, a deeply divided Congress has been unable to advance any comprehensive reform. President Obama has used his executive power to push some laws that provide pathways to citizenship, including an amnesty program for qualified young people. In spite of a bipartisan Senate bill approved in June, Washington insiders are largely in agreement that the House is not likely to agree on a major bill this year.“We are entrenched in the culture that is America..we are part of the people that are here.” – Jorge Salazar

Rally participants represented a diverse group of people, including church and labor groups, immigrants from a number of countries, and even undocumented immigrants.

Carmen Guerrero, a community organizer from outside Philadelphia, said lawmakers have not given the immigration issue the urgency it deserves.

“The law is broken,” Guerrero said in Spanish. She came from Mexico 13 years ago. “This is a country of immigrants. It’s a country where immigration has to keep moving forward with its law. It’s been too long without reform. It has been reformed but only to attack the immigrant community, to suppress the community.”

Guerrero said that U.S. immigration policy is so cumbersome, many immigrants prefer to sidestep the system and enter the country illegally. She said most countries face daunting obstacles for legal entry, including excessively long waiting periods.

“The opportunity to come here legally is too small,” she said. “At the end of the day, we rather break the law. There is no realization to be able to come legally and be part of society, as we should.”

Guerrero, a single mother of three who has worked two full-time jobs back to back as a hotel housekeeper and restaurant dishwasher, says she pays taxes and is in no way taking jobs away from citizens.

“We are the landscapers, the service, the dishwashsers at the restaurants and hotels,” she said. “I don’t think a professional would want those jobs.” -Jorge Salazar

Another undocumented immigrant, Jorge Salazar acknowledged that it would be difficult to process 11 million undocumented immigrants through the immigration system, but that in the end, it would not burden taxpayers.

“It’s not going to be costly,” he said. “We are going to pay for it. Immigration is one of the few government programs funded by the applicants.”

Salazar’s family arrived from Bolivia 23 years ago, but due to a series of legal mistakes, his family found itself staying put once their visa expired.

Salazar said he considers himself a part of the American society; he said he works and goes to school and is an active member of his community. He traveled to Harrisburg from his Philadelphia suburb home.

He said he and his family were concerned that they were risking deportation by being vocally and actively involved in calling for immigration reform.

“The reality is we have to do this,” he said. “People need to know that we are your neighbors, we are next to you in school, we are next to you in church. All my friends are American citizens. We are entrenched in the culture that is America..we are part of the people that are here.”

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