Neoliberals Are Taking All the Wrong Lessons From Conor Lamb’s Victory
Neoliberals Are Taking All the Wrong Lessons From Conor Lamb’s Victory
“The recent CPC Strategy Summit in Baltimore was brimming with such ideas, which are enjoying new traction thanks to shifting political winds. Though there’s no consensus as of yet as to what a...
“The recent CPC Strategy Summit in Baltimore was brimming with such ideas, which are enjoying new traction thanks to shifting political winds. Though there’s no consensus as of yet as to what a full-fledged progressive platform might look like, the most recent People’s Budget offers hints in that direction. The Center for Popular Democracy’s Ady Barkan, who received an award from the CPC for his work organizing against the Obamacare repeal and Trump’s tax plan, suggested the party could pioneer a different way of thinking about spending and budgets.”
Read the full article here.
Fed Up with the Economy?
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Activist Group Presses for Diversity on Fed Boards
Activist Group Presses for Diversity on Fed Boards
An activist group on Monday named a slate of candidates it would like to see placed on the boards overseeing the regional Federal Reserve banks, saying these people would promote diversity at the...
An activist group on Monday named a slate of candidates it would like to see placed on the boards overseeing the regional Federal Reserve banks, saying these people would promote diversity at the central bank and de-emphasize the influence bankers have on policy makers.
The slate of candidates is in large part aimed at addressing what the left-leaning Center for Popular Democracy’s Fed Up campaign sees as a lack of minority and female representation in the leadership ranks of top central bank officialdom.
“Regional Banks’ boards are disproportionately white, male, and from the corporate and financial sectors,” the group said in a report. “Regional Banks have continually selected bank directors without transparency or public input, and most directors’ backgrounds suggest that they are likelier to be familiar with the interests of the wealthy than with the interests of low-income individuals and communities of color,” the group said.
The Federal Reserve’s Shifting Makeup
The group identified a slate of candidates drawn from academia, think tanks and unions who could serve as directors at the 12 regional bank districts. These prospective candidates are mainly women or people of color. None are bankers or financial market participants.
The group also said the continued role of bankers on boards continues to create conflicts of interest between the Fed and regulated financial institutions. “The potential for conflicts of interest will remain high as long as commercial banks and financial institutions continue to dominate Fed leadership,” Fed Up said in its report.
Fed Up’s Candidates
The boards overseeing the regional Fed banks have long been a flashpoint. While the Washington-based Board of Governors, now led by Chairwoman Janet Yellen, is explicitly part of the government, the 12 regional banks exist as quasi-private institutions overseen by boards composed of a legally mandated mix of bankers, community members and business representatives.
The most public responsibility of these boards is to guide the selection of new regional bank presidents and to reapprove these officials when their terms are up. Directors from institutions regulated by the Fed aren’t involved in this process, but they were until several years ago.
The regional Fed boards also help oversee regional Fed operations and provide intelligence on local economic conditions. Most Fed bank presidents have spoken very favorably of their boards and have pointed out these directors have no influence and have no special access to Fed monetary policy-making.
The Fed Up campaign has been pressing the central bank for some time on diversity issues, to some successes. In May many congressional Democrats signed a letter to Chairwoman Janet Yellen expressing concern about what they saw as a lack of diversity among the Fed’s top officials and boards of directors. Presumptive Democratic presidential nominee Hillary Clinton also expressed support for getting bankers off Fed boards.
The Fed countered then that it is done a lot to improve diversity and that it would work to do even better in the future.
And speaking in early June with reporters, Dallas Fed President Robert Kaplan acknowledged the problem, saying “diversity, racial diversity, ethnic diversity of all kinds leads to better decision making and greater performance. That’s something we should be striving for at the Fed.”
Earlier this year, former Minneapolis Fed leader Narayana Kocherlakota indicated in a blog post that a lack of African-American representation in policy-making positions may have caused officials to pay insufficient attention to the needs of this group during the financial crisis.
By MICHAEL S. DERBY
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Dean Baker: Why We Must Oppose the Coming Fed Interest Rate Hike
That message comes amid a grassroots effort this week designed to line up organizations behind a call on the Fed to not increase interest rates before the economy reaches full employment.
There is a widespread expectation that the Fed will raise interest rates sometime in 2015, ostensibly to keep the economy from “overheating” and driving up the rate of inflation. The problem is, as Baker pointed out in his presentation, there is no inflation threat on the horizon, but there is a very real threat of choking the economic recovery and driving up unemployment if interest rates rise.
“This is a huge, huge issue and it is largely ignored by much of the progressive movement, largely because people don’t understand it,” Baker said. “And I would say to a large extent that’s how they” – the bankers and the corporate class that has the ear of the Federal Reserve’s members – “want it.”
Baker has been working closely with the Center for Popular Democracy’s “Fed Up” campaign, which has been pushing the Fed to focus on moving the economy toward full employment as a top priority.
The campaign has emphasized that after more than five years of supposed economic “recovery,” labor participation rates remain at historic lows, wages are only now beginning to increase slowly, and unemployment rates among African Americans and in a number of low-income communities remain well into double digits.
Citing the push in Congress to get the Keystone XL pipeline built, which some estimates say would produce about 36,000 jobs during its construction, Baker said, “if the Fed raises interest rates we’re talking about kicking millions of people out of jobs.” If instead the Fed worked to get the unemployment rate down to about 4 percent, “that’s about 4.5 million people … that’s more than 100 XL pipelines.”
The Fed Up Campaign is seeking organizations willing to sign a petition calling on the Federal Reserve to not increase interest rates while there are segments of the economy with high unemployment and stagnant wages. “Raising interest rates in 2015 would be a catastrophic mistake. The American economy needs to see significantly more wage growth, not less,” the petition says.
The full petition is posted on our website. Progressive organization leaders who want to sign the petition can do so via this link.
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Activist Group Takes Out TV Ad Calling for Trump to Keep Yellen
The Center for Popular Democracy's Fed Up campaign broadcast a 30-second TV spot urging Mr. Trump to offer Fed Chairwoman Janet Yellen a second term. The ad ran during "Fox & Friends," a...
The Center for Popular Democracy's Fed Up campaign broadcast a 30-second TV spot urging Mr. Trump to offer Fed Chairwoman Janet Yellen a second term. The ad ran during "Fox & Friends," a morning show the president watches and often reacts to on Twitter.
Read the full article here.
Why the Federal Reserve is due for a radical reinvention
Why the Federal Reserve is due for a radical reinvention
The Federal Reserve is a hot topic in the news these days. Usually, the stories revolve around the merits of its decisions: Was quantitative easing a good idea? Should it raise interest rates...
The Federal Reserve is a hot topic in the news these days. Usually, the stories revolve around the merits of its decisions: Was quantitative easing a good idea? Should it raise interest rates again in April? But Andrew Levin, a Dartmouth economist and former aide to Federal Reserve Chair Janet Yellen, thinks our questions need to go much deeper.
On Monday, Levin and the activist campaign Fed Up proposed four major reforms that would radically alter the structure of the Federal Reserve. The reason they cite is compellingly simple: How the Fed works is basically out of whack with what it does today.
The Federal Reserve began around a century ago as a decentralized and private institution aimed at avoiding financial panics and making sure the interactions between the nation's for-profit banks remained stable. Since then, it's basically become a kind of government agency, with a fundamental role in shaping the American economy and the supply of wages and jobs for everyday workers. But the design and governance of the Fed has not kept up with that shift in responsibilities.
To understand why, let's start at the very beginning. Western economies began creating central banks several centuries ago as modern capitalism was first coming into focus, to serve as a "lender of last resort." Private banks could go and borrow from the central bank when times were tight — even if was just for a few days — and that would quell potential financial panics and bank runs. As a result, central banks were generally created by government charters, but as private corporations whose shares were owned by the banks that borrowed from them. "When the Bank of England and some other major central banks were founded, they were viewed as mostly providing services to commercial banks," as Levin explained to The Week.
America's Federal Reserve was created in 1913 under very similar circumstances. A potential financial crisis in 1907 was averted only when J.P. Morgan stepped in to backstop the country's private banks with his own personal fortune. No one wanted a repeat of that, so the Fed was created. It's actually a system of 12 regions, each overseen by a Fed branch bank — there's one in Dallas, in Richmond, in New York City, and so forth — with the private banks owning the shares of whatever Fed bank oversees their region.
More importantly, each regional Fed bank is run by a board of nine directors, six of whom are appointed by the private banking industry. The other three are appointed by the Federal Reserve system's national Board of Governors — a seven-member group appointed by the U.S. president and confirmed by the Senate. Together, the directors appoint a president to run their particular regional bank, rather like a CEO and a corporate board: They set the president's salary, review his or her performance, etc. All nine used to do that, but Dodd-Frank reformed the system in 2010 so that three of the six governors appointed by the private banks no longer play a role in selecting the president.
Over the course of the 20th Century, various developments like the end of the gold standard and the creation of federal deposit insurance diluted the importance of the regional banks as lenders of last resort. At the same time, however, the regional banks found themselves owning large amounts of financial instruments as a result of serving that role. So they created a joint national group to manage all those holdings called the Federal Open Market Committee (FOMC), and over time it grew in importance. Its decisions are determined by 12 votes: the seven members of the Board of Governors, plus five of the 12 regional presidents. (The 12 presidents rotate through the voting positions, while the other seven sit in on the FOMC but don't vote.)
Today, when we talk about the Fed setting interest rates or meeting to decide monetary policy — which in turn decides the rate of wage growth and the supply of jobs throughout the entire national economy — we're talking about the FOMC. "For all practical purposes, the Federal Reserve today is a public enterprise," Levin said. "It's serving the public. It's making nationally critical decisions."
The problem is the Federal Reserve system was originally conceived of and designed as an add-on to the private banking industry, and that design has remained even as the nature and responsibilities of the Fed have change enormously: "This whole rationale that made perfect sense in 1913 doesn't make sense anymore," Levin said. The result is an institution that, while of enormous import to the public good, is incredibly complex, opaque, and governed with comparatively little input from everyday Americans.
"The Fed, in order to be effective, has to have the confidence of the public," Levin said. But allowing the banks to hold such enormous sway over the decision-making of the institution tasked with both setting national interest rates and regulating the financial system undermines that confidence. Economist Dean Baker analogized it to "reserving seats on the Federal Communications Commission’s board for the cable television industry." Levin himself likened it to allowing criminal attorneys or defense lawyers to select the director of the FBI and set his or her salary and performance review.
So Levin has put forward four major reforms. They're broad, and the details for how they could play out are negotiable, but they're aimed at starting a conversation around the topic.
One is to eliminate private ownership of shares in the Federal Reserve system and make it fully public, but more importantly to completely reform how the nine directors of each regional bank are appointed. This could involve reducing the number of directors, but mostly it would involve selecting them all via the same process, one that brings in all aspects of the community — small businesses, community groups, unions, non-profits, etc. In particular, directors should not come from institutions — i.e. private banks and financial entities — that the Fed system is tasked with overseeing.
The next step would be to make the process by which the nine directors for each region select their president public and transparent. As Ady Barkan, the campaign director for Fed Up, pointed out in a press call, when all 12 regional president slots were up for replacement in February, all 12 were quietly and opaquely re-appointed — even after the Fed Up campaign pressed Fed officials to lay out a system by which the public could participate. The ones for Dallas, Minneapolis, and Philadelphia were all previously associated with Goldman Sachs. St. Louis Federal Reserve President James Bullard once told Barkan that, "To call the reappointment process pro forma would be an understatement."
Third would be to set term limits for Fed officials. Make them long enough to insulate those officials from political pressure. But don't allow them to serve multiple terms one after the other as they can now.
And finally, apply the same transparency standards to the Fed that are applied to other government agencies: Allow the Government Accountability Office to publish an annual review of all the Fed's operations and policies, and make sure both the Fed's Inspector General and the Freedom of Information Act apply to the 12 regional banks as well as the national Board of Governors.
"What I've proposed is something that seems incremental, workable, and helpful," Levin concluded. And despite arguments over whether the Fed is making the right choices in the here and now about things like interest rates, Levin's goal is much bigger: to make the Fed a healthy functioning member of our democracy long after the current economic situation — and whatever particular monetary policy stance it calls for — has passed.
"These reforms are to improve governance, accountability and transparency," Levin said. "We live in a democracy — and the government is supposed to serve the public."
By Jeff Spross
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Ana María Archila: Low Wage Workers are Paving the Way to Democracy
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the...
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the people who elected him do to influence what happens next? It is a question grassroots groups grapple with around the country. On GRITtv this week, Ana María Archila shares a few ideas. Archila was a founder of one of the most effective community groups in New York; now she's heading up a regional initiative that seeks to build popular democracy, not only at the ballot box, but in between elections.
From the school to prison pipeline and stop and frisk to immigration reform and workplace safety regulations, New Yorkers are eager to seize the moment for political change, says Archila. For evidence, consider the crowds that gathered at the Talking Transition Tent which was set up in downtown, immediately following last fall's elections.
Mayor Bill de Blasio seems to be listening. Less than two months into his term he has expanded paid sick leave for hundreds of workers around the city, one of the central demands of low wage workers. But how do people ensure that this momentum continues?
"He is only listening because low wage workers are extremely organized," Co-Executive Director for the Center for Popular Democracy Ana María Archila tells GRITtv. "New Yorkers are demanding more."
In addition to paid sick leave, organizers with Make the Road New York (the community organization that Archila describes as her "organizing home") are campaigning for a raise in the minimum wage and increased work place safety regulations. Organizing locally and creating small scale initiatives, like worker or consumer co-ops, can help engage people and address some immediate needs, but ultimately, low wage Americans need to build political power.
"The biggest co-operative we have is our own government and we need to make sure that it works for us," she says.
For more on ushering in a new progressive era, watch our interview with Joo-Hyun Kang on ending the Stop and Frisk regime.
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Immigration Reform Moves to States; New York Eyes Citizenship After 3 Years of Taxes
The Washington Examiner - June 16, 2014, by Paul Bedard - The frustration with Washington's inaction on any type of immigration reform has forced proponents to shift their attention to states such...
The Washington Examiner - June 16, 2014, by Paul Bedard - The frustration with Washington's inaction on any type of immigration reform has forced proponents to shift their attention to states such as New York where a new plan was offered Monday to grant citizenship and voting rights after an illegal immigrant pays three years of taxes.
The Washington-based Center for Popular Democracy said the New York legislative effort to provide citizenship benefits to three million immigrants is the result of the fallout of congressional gridlock and House Majority Leader Eric Cantor's defeat last week, which pundits blamed on his support for reform.
But that doesn’t mean immigration reform supporters have given up on a national solution. Center Co-Executive Director Andrew Friedman told Secrets, “We will definitely continue to work hard for federal reform, even as we push states to show leadership and do everything they can to promote immigrant inclusion and dignity, as well as economic expansion and growth.”
The New York legislation, titled “New York is Home Act,” sets requirements for immigrants to meet before they can apply for citizenship with New York's Office for New Americans, created by Gov. Andrew Cuomo:
Proof of identity.
Proof of three years of New York state residency.
Proof of three years of New York state tax payments.
Commitment to abide by New York laws and uphold the state constitution.
A willingness to serve on New York juries and to continue to pay state taxes.
In return, said Friedman's group in a release, immigrants would get New York state citizenship, financial aid for higher education, health care, drivers' licenses, professional licenses, the right to vote, the right to run for office, and protection against racial profiling.
“This bill is about New York state doing everything it can to promote the full equality of immigrants. State powers, though, are very different than federal powers, so the package of opportunities and benefits are different from any federal bill,” said Friedman, whose group is promoting similar plans in other states.
“Our state's hardworking non-citizens should have the opportunity to fully participate in the health and growth of our state,” said New York State Sen. Gustavo Rivera, the lead sponsor of the legislation.
“State citizenship should recognize and reward the contributions of noncitizen residents who play by the rules while living and working here,” added the state assembly sponsor, Karim Camara.
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Urban Outfitters heeds call to end on-call shifts
WELL, THAT was fast!
Yesterday I wrote about an "on-call" scheduling practice at Urban Outfitters that's unbelievably abusive to its lowest-wage workers. Within...
WELL, THAT was fast!
Yesterday I wrote about an "on-call" scheduling practice at Urban Outfitters that's unbelievably abusive to its lowest-wage workers. Within hours of the column hitting print, Urban announced it was killing the practice for good.
Coincidence? You decide.
Here's yesterday's statement from the Philly-based billion-dollar retailer, which also owns the brands Anthropologie, Free People, Terrain and Bhldn.
"We are always looking for ways to improve, and as such we have decided to end on-call scheduling for all [Urban] brand associates throughout North America. We look forward to continuing to find ways to better fulfill our mission of providing fashion and lifestyle essentials to our dedicated customers."
This is amazing news for employees at Urban's 518 North American stores.
For years, they'd been receiving their work schedules only a few days in advance, with some shifts designated as "on call." But they wouldn't be told, until three hours before the shift was to begin, whether they'd actually be needed to work. If they weren't, they wouldn't be paid, even though they'd been required to hold that time for the company.
The unpredictability had wreaked havoc on workers, who are mostly young and female.
They were unable to schedule classes if they were in school. Or to schedule hours at a second job if they needed a full-time income. Or to reliably arrange day care or pay their bills, since their cost to do both was fixed even though their working hours weren't.
What a crappy way to treat members of the demographic that Urban targets so heavily.
"It's pretty messed up," one worker, a college student, told me. She was paying her way through school, but Urban's scheduling meant she couldn't schedule other work to help pay tuition. "It's hard to plan."
Readers reacted with disgust to the column.
"Retail needs to be called on the carpet!" wrote emailer rgrassia. "We need more people with the ability to do something to pressure these companies to change the ways they conduct themselves."
Reader Madeleine Pierucci excoriated Urban for "co-opting the '60s struggles and playing it to the detriment of its 2015 workers. Not cool." She also planned to picket Urban's Center City store next week.
And a furious churchgoer named Samantha C. vowed to spread the word throughout the National Baptist Convention to have its 100,000 church members boycott Urban's stores in protest.
"It's time for slavery to stop," she declared.
Urban's change of heart is a testament to the power of the press, says Carrie Gleason. She's director of the fair-workweek initiative at the Center for Popular Democracy and has been working for a very long time to get employers to end on-call staffing.
"The media has helped shift the public opinion in terms of what is acceptable around employers' expectations of their employees' time," she told me. "I think Urban's announcement is a direct response to the fact that the public is now holding the whole retail industry to higher standards."
I'd like to take credit for Urban's reversal, but the truth is, another media outlet has been hammering at on-call scheduling by retailers - and not just Urban - for a while now.
The online news site BuzzFeed has chronicled the issue so doggedly that the New York state attorney general in April called companies on the carpet for the practice, following his investigation into the legality of on-call staffing at 13 retailers whose New York stores employ thousands of low-wage workers.
As a result, huge chains like Victoria's Secret, Bath & Body Works, Abercrombie and Gap announced plans to discontinue the practice not just in New York but nationally, improving hundreds of thousands of workers' lives.
Urban, though, had said it would discontinue the practice only in New York. Everywhere else, it would be exploitation as usual.
It turned my stomach that Philly-based Urban - a company that so many of us grew up with and feel affinity for - would treat its workers so shabbily. And I said as much in my column, which we - ahem - pushed on the Daily News front page and on Philly.com.
If that helped nudge Urban into doing the decent thing, then yesterday was a good day.
Not just for Urban's workers. But for Urban's shareholders:
As news hit that Urban would end its on-call scheduling, CNBC reported, the company's stock rallied 4.68 percent.
You're welcome, Urban.
And thank you.
Source: Philly.com
Hot topic of next Fed chair not on program at Jackson Hole
Hot topic of next Fed chair not on program at Jackson Hole
JACKSON HOLE, Wyo. — This year’s gathering of the world’s central bankers had a theme as lofty as the Grant Teton Mountains which loomed over their meeting place — “Fostering a Dynamic Global...
JACKSON HOLE, Wyo. — This year’s gathering of the world’s central bankers had a theme as lofty as the Grant Teton Mountains which loomed over their meeting place — “Fostering a Dynamic Global Economy.”
But while many hours were devoted to sitting in a windowless conference room dissecting the symposium’s academic papers on how to bolster lackluster global growth, one hot topic was not on the program — who will President Donald Trump nominate to be the next leader of the Federal Reserve once current Chair Janet Yellen’s four-year term is up next February.
Read the full article here.
7 days ago
7 days ago