Top economists rip Fed, call for letting inflation run higher than normal
Top economists rip Fed, call for letting inflation run higher than normal
Should Federal Reserve officials meet expectations and raise interest rates next week, they will be doing so over the objections of some high-profile experts, including one who used to work for...
Should Federal Reserve officials meet expectations and raise interest rates next week, they will be doing so over the objections of some high-profile experts, including one who used to work for the central bank.
A coalition of economists released a letter Friday urging the Fed to change the criteria it uses to make decisions. Specifically, the group, called "Fed Up," is advocating for a higher inflation rate target than the current 2 percent level. Among its members is former Minnesota Fed President Narayana Kocherlakota.
Read the full article here.
Progressive Candidates Are Pulling the Democratic Party Left, Whether the Establishment Likes It or Not
Progressive Candidates Are Pulling the Democratic Party Left, Whether the Establishment Likes It or Not
One of the candidates taking on the establishment is Kerri Harris, who is running to unseat Sen. Tom Carper, a Democrat from Delaware. Harris, who is a community organizer with the Center for...
One of the candidates taking on the establishment is Kerri Harris, who is running to unseat Sen. Tom Carper, a Democrat from Delaware. Harris, who is a community organizer with the Center for Popular Democracy and an Air Force veteran, has been hammering Senator Carper on his decision to partner with Republicans to dismantle Dodd-Frank -- the law passed in the wake of the financial and housing crisis.
Amalgamated Bank announces $15 minimum wage
When many people envision a banker, they usually think of the Hollywood image of the arrogant, Wall Street type. But they don’t think of the tellers who deal with customers every day.
All...
When many people envision a banker, they usually think of the Hollywood image of the arrogant, Wall Street type. But they don’t think of the tellers who deal with customers every day.
All that has changed, at least with Amalgamated Bank, which announced a company-wide $15 minimum wage for all employees. The news drew praise from the likes of Manhattan Borough President Gale Brewer, who stated that every bank in New York show follow Amalgamated Bank’s example.
“Large employers with workforces so underpaid they rely on public assistance is a story we hear all too often in connection with big-box stores and fast-food chains,” said Brewer in a statement. “But the shocking truth is that 40 percent of workers in New York’s banks rely on public assistance, and nearly three quarters of New York’s bank tellers earn less than $15 per hour.”
“While Amalgamated’s new policy is a major step forward, positive actions by individual employers are still no substitute for progress on statewide and nationwide minimum wage increases. We must keep fighting for Albany and Washington to raise the minimum wage.”
According to analysis that the National Employment Law Project provided to ThinkProgress.org, the most common occupation with bank companies is bank teller, and nearly 75 percent of them make less than $15 an hour. Close to a half million people work as bank tellers, with the median hourly wage at just $12.44. Just over 71 percent make less than $15, and wages have fallen by 3.4 percent between 2009 and 2014 as the cost of living has risen.
The NELP report didn’t stop there. It also revealed that more than 40 percent of bank customer service representatives makes less than $15 an hour. According to NELP, a quarter of the people in banking who work in maintenance, production and protective service make less than $15 an hour as well. The report further stated that bank tellers are overwhelmingly female (85 percent of the bank teller workforce) and are disproportionately Latino (20 percent of bank tellers though 16.5 percent of the overall American workforce). Close to a third have to rely on some sort of public assistance.
NELP’s analysis concluded that bank tellers should get a $15 minimum wage.
Brian Kettenring, co-executive director of the Center for Popular Democracy, praised Amalgamated Bank’s actions.
“Workers across the country are fighting for a $15 minimum wage because it means dignity and a chance for us to break down barriers that keep us from sustaining our families,” said Kettenring in a statement. “This bold step by Amalgamated Bank is what happens when sensible employers understand courageous organizing. We commend the bank for giving workers the pay they’ve earned and call on others in the industry to follow. Raising the wage is inevitable, and employers would be smart to raise wages proactively.
“Our communities will continue building the movement for $15 and a union, and we won’t stop until we’ve achieved it,” concluded Kettenring.
Source: Amsterdam News
Thanks to York School Board for Rejecting Charter Takeover
York Daily Record - November 4, 2014, by Rev. Aaron Willford, Sandra Thompson and Clovis Gallon - Over the past few months, something remarkable happened in York. Parents, teachers, students,...
York Daily Record - November 4, 2014, by Rev. Aaron Willford, Sandra Thompson and Clovis Gallon - Over the past few months, something remarkable happened in York. Parents, teachers, students, neighbors and faith leaders united to send a clear message that the education of York's children is more important than the profit margin of an out-of-state charter operator.
On behalf of that community, we would like to thank the York City School Board for standing up for our students, making sure their education comes first, and rejecting a charter takeover of our schools.
When the school board met on Oct. 15, Chief Recovery Officer David Meckley pressured board members to vote on an incomplete, poorly researched charter plan that was rolled out less than a week before. With so little time to review the plan and so many unanswered questions about it, the community urged the board to cast a no vote.
Rejecting the charter plan was not an easy decision for the school board, but it was the right decision — and we applaud their courage. If the plan had been enacted, money that should support students in the classroom would have flowed to a for-profit management company instead. City school children would have been treated like guinea pigs in a radical experiment, and their parents would have lost any say in how their neighborhood schools are run.
Perhaps the school board was looking into a crystal ball when it cast that vote. Just a week later, a federal judge appointed a receiver for Mosaica Education Inc., one of the two charter companies initially in the running to take over York city's schools. The heavily indebted Mosaica was sued by its primary lender in September after defaulting on its debt.
AdvertisementImagine where York's students would be if a charter operator took over their schools and, right out of the gate, found itself under enormous financial pressure for "a series of bad business decisions," as lender Tatonka Capital Corp. claims in its lawsuit against Mosaica.
The case against Mosaica followed a string of troubling studies questioning charter school oversight and accountability in Pennsylvania. A spring report from Auditor General Eugene DePasquale found that a lack of state oversight of charters was creating problems — with some observers comparing the current charter environment to the "wild, wild west."
A blistering report from the Center for Popular Democracy this fall revealed more than $30 million in proven or alleged fraud, waste, or abuse in Pennsylvania's charter school system over the past 17 years.
Giving Meckley a blank check on charterization in York would have been a big mistake.
Fortunately, the school board recognized how fraught with risk this plan was and chose to maintain local control of all the city's schools.
Now, it is critical for the school board to work in partnership with York's educators to improve the city's schools and give every child a shot at success.
Educators and administrators are already implementing a road map to fiscal recovery that will strengthen educational programs. We are glad that the school board is giving this "internal option," as it is known, an opportunity to work before taking any action that will negatively impact our schools, our students, or our community.
York city schools, like many other districts across the commonwealth, face a funding crisis created by deep cuts in state funding for public schools. All Pennsylvania school children deserve better from Harrisburg. It is high time our elected leaders reverse those cuts and put our schools back on track.
Until that happens, York's children should not be treated any differently than other Pennsylvania students. They shouldn't be guinea pigs in a charter experiment. And they shouldn't be deprived of the opportunity to attend their neighborhood schools.
Our school board agrees, and now it is up to all of us to take responsibility for the future of our city's public schools and the students who learn there.
We have no doubt that the York community is strongly committed to making our schools the best they can be. Working together, we can achieve truly remarkable things.
Rev. Aaron Willford is a member of York Concerned Clergy. Sandra Thompson is president of the York NAACP. Clovis Gallon is a teacher and York Education Association member.
Source
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both...
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both Democrats and Republicans. As a result, thousands of people plan to gather in Washington, D.C., on Saturday, April 15, 2017, at 11 a.m. The Tax March was an idea that started on Twitter, but has gained momentum on and offline, with over 135 marches planned in cities across the country...
Read full article here.
It’s true: HUD policy really does hurt our neighborhoods
It’s true: HUD policy really does hurt our neighborhoods
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a...
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a discount! Please let that sink in.
Since 2010, the Department of Housing and Urban Development (HUD) has been auctioning off pools of very delinquent mortgages through a program they call Distressed Asset Sales Program, or DASP. In most cases, the sales have gone to the highest bidder, which have been hedge funds and private equity firms.
Lone Star Fund, a private equity firm started by a Texas billionaire, and Bayview Asset Management, an affiliate of the private equity firm Blackstone Group, have been two of the primary beneficiaries of these sales. The result? Struggling homeowners lose their homes and speculators turn the properties into high-cost rentals that contribute to displacement in communities across the country.
This month, over 110,000 people from across the country signed a petition calling on HUD Secretary Julian Castro, to change this program. This comes on the heels of a March 1st letter to HUD from 45 members of Congress issuing a similar call for reforms to this mortgage sale program. In fact, for over two years, housing advocates and national policy groups have been pushing HUD to fix this program.
In an interview on WNYC Studio’s “The New York Radio Hour,” Secretary Castro referred to our protests that his program is enriching Wall Street as “sloganeering.” We wish that were the case. Unfortunately, it is simply a fact that 98% of the mortgages sold through HUD’s DASP program are going to Wall Street, one that can be verified on HUD’s own website where they post reports from these sales. Most, if not all, of these Wall Street buyers are what the industry itself calls “vulture capitalists” – investors that specialized in distressed assets in the hopes of making them more profitable and selling them for a profit.
In an effort to suggest that he has addressed the problem, Secretary Castro touts the agency’s 2015 auctions of troubled mortgages in which only non-profits were eligible to bid. Let’s be clear. Only 172 mortgages were sold to non-profits through these auctions, while a whopping 15,309 went to Wall Street investors in 2015. So yes, a gesture was made by the agency, but at such a miniscule scale he surely cannot suggest that the problem is solved.
There is no reason to sell such a high percentage of these loans to some of the same culprits responsible for the housing crisis in the first place. In fact, it seems to be in direct conflict with HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all. Call me skeptical, but I don’t trust a private equity firm like Blackstone – a company whose CEO made $734 million last year - to help fulfill that mission. Blackstone and other major speculators have a goal of making as much money as possible, and in the process are chipping away at the wealth and stability of neighborhoods in the process.
There is a viable alternative, that housing and civil rights groups across the country are calling for. HUD should prioritize selling these loans to good actors that have a community-centered plan to save homes from foreclosure when possible and, when foreclosure cannot be avoided, to meet the affordable housing needs of the community with their property disposition plans.
A growing number of Community Development Financial Institutions (CDFIs) have programs to do just this, and have raised the capital needed to buy pools of these delinquent mortgages. But so far, they haven’t been able to get their hands on the number of mortgages that they can afford. HUD should do all it can to make sure CDFIs and other good actors are prioritized for these sales.
I have seen too many people in my community lose their homes and their wealth to Wall Street speculators. We cannot allow the same policies that ravaged our communities to continue. For me the choice is very clear: will Secretary Castro make sure that HUD helps families stay in their homes, or will he allow HUD to continue to sign over these loans to Wall Street and fuel neighborhood displacement?
It’s time for HUD to make the right choice and partner with non-profit CDFIs and other organizations that will keep our neighborhoods together. I encourage everyone who cares about the stability of neighborhoods across the country to join with me in calling on Secretary Castro and HUD to change the DASP program so that it prioritizes foreclosure avoidance and the creation of affordable housing.
By Ana Maria Archila
Source
The Fight for Paid Sick Leave Moves South
The Fight for Paid Sick Leave Moves South
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to this issue,” said Sarah Johnson, the director of Local Progress. “Workers...
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to this issue,” said Sarah Johnson, the director of Local Progress. “Workers and immigrants are important to the foundation of cities. The work being done around SB4 has created a strong coalition that has advanced from defense to offense.
Read the full article here.
Wall Street Journal: Citigroup Pact Has Detailed Plan for $2.5 Billion in Relief to Consumers
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to...
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to provide $820 million worth of loan forgiveness and other assistance, plus nearly $300 million in refinancing. The money is also earmarked to help with down payments, donations to community groups and financing for rental housing.
These requirements, outlined in a 15-page appendix to the agreement, provide more specificity for consumer assistance than a $25 billion 2012 state/federal settlement with Citigroup and four other banks over mortgage-servicing problems. They also are more detailed than a November 2013 settlement with J.P. Morgan Chase & Co. over similar flawed mortgage securities sold to investors.
At a press conference in Washington on Monday, Associate Attorney General Tony West said the department aimed to improve on previous settlements by establishing an “an innovative consumer relief menu—one that not only includes the principal reductions and loan modifications we’ve built into previous resolutions, but also new, consumer-friendly measures.”
The Citigroup settlement, unlike previous pacts, directs the bank to provide half of its loan assistance to particularly hard-hit parts of the country. It also mandates that borrowers whose loan balances are cut won’t remain “underwater” —or owe more on their homes than their properties are worth.
The J.P. Morgan settlement addresses similar issues, but in a less targeted way. It gave the bank a bonus for providing aid to hard-hit areas, but set no specific requirement. In addition, the J.P. Morgan settlement encourages loan write-downs but does not specify how much of a borrower’s debt must be forgiven. The Citigroup settlement contains $180 million in financing for affordable rental housing—a provision not included in other settlements.
“This settlement is far more nuanced than previous settlements with respect to consumer relief,” said Andrew Jakabovics, senior director for policy development and research Enterprise Community Partners, a large affordable-housing nonprofit group. The pact, he said, “reflects many of the best practices we’ve seen develop with respect to creating sustainable loan modifications.”
A Justice Department official said the consumer-assistance portion of the Citigroup settlement reflects refinements to the government’s thinking after previous settlements. In addition, the official said the smaller size of Citigroup’s mortgage-lending portfolio caused the government to consider additional avenues for relief because the bank had fewer loans to modify.
There has been tension between the Obama administration and liberal activist groups over efforts to resolve cases related to banks’ mortgage-crisis conduct.
Consumer groups have been unhappy with previous settlements of mortgage-related cases. For example, the 2012 mortgage-servicing settlement allowed banks to receive credit for short sales, in which a bank agrees to allow the sale of a property with a mortgage worth more than the home’s value, and for granting “deeds in lieu of foreclosure,” where a homeowner voluntary surrenders the home.
Some activists are still skeptical of the government’s settlements with the financial industry. Kevin Whelan, national campaign director for the Home Defenders League, an activist group representing homeowners, said there’s been no noticeable impact from last fall’s J.P. Morgan settlement.
“We haven’t seen any evidence that they’ve done anything at all,” Mr. Whelan said.
No statistics on the J.P. Morgan settlement have been released. A J.P. Morgan spokeswoman declined comment.
Joseph Smith, a former North Carolina banking regulator, is serving as the independent monitor overseeing the J.P. Morgan settlement and is expected to release a report on its progress in the coming weeks.
Thomas Perrelli, a former Justice Department official who helped broker the 2012 mortgage settlement, will serve as the monitor of the Citigroup agreement. Mr. Perrelli is now at the law firm Jenner & Block in Washington.
Source
By The People: Promoting Democratic Participation Through Comprehensive Voter Registration
America suffers from disturbingly low voter registration and turnout rates. Almost 50 million eligible people were not even registered to vote in the 2012 election, and another 12 million had...
America suffers from disturbingly low voter registration and turnout rates. Almost 50 million eligible people were not even registered to vote in the 2012 election, and another 12 million had problems with their registration that kept them from voting. What’s more, many of these millions were low-income, youth, and people of color, all of whom are less likely to be registered. In order to strengthen our democracy, the United States must take dramatic and innovative steps to remedy our anemic voter turnout and registration.
“By the People: Promoting Democratic Participation through Comprehensive Voter Registration,” identifies Automatic Voter Registration (AVR) as the critical transformative policy that can result in the registration of millions of new voters. By shifting the responsibility of voter registration from the individual to the government, AVR ensures a more robust democracy. Automatic Voter Registration should be part of a suite of reforms including pre-registration of 16- and 17- year olds, portable registration, and other policies that make election administration more efficient.
Download the full report here
Commentary: I need the economy to give me a fair chance
Commentary: I need the economy to give me a fair chance
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's been my dream to work with guests at the front desk to make sure they have the...
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's been my dream to work with guests at the front desk to make sure they have the best experience possible.
As an African-American woman, I knew that lucky breaks weren't going to be handed to me, so I did everything I could to achieve my dreams. I went to school and got my bachelor's degree in hospitality and hotel management in 2000 from the Indiana University of Pennsylvania.
However, apart from a brief internship after college at the Best Western and a year at the Hilton working at the switchboard, which was almost a decade ago, I haven't been able to find work in my chosen field - a field in which I have a degree.
I've heard people say the recession is over because the unemployment rate is about 5 percent. But I can tell you that things are still really bad in the black community. Currently, unemployment for blacks is about 9 percent.
I've always been politically active and serve as the judge of elections in my voting district. So when I heard about a campaign that calls on the Federal Reserve to ensure that everybody gets decent paying work, including black folks, I was eager to join.
When I got my degree 16 years ago, the economy was in decent shape. Armed with my degree, the internship experience and good recommendations, I didn't expect to have any problems getting a job in a hotel. I applied to two dozen jobs and, after being turned down at all of them, I had to take other kinds of jobs in food service or customer service.
Finally, after many years, I got my switchboard job at the Hilton. Even though I was getting only $10 an hour, I was excited to finally be working at a hotel and thought I would just stay there and work my way up. But the recession hit in 2008, and I was laid off a year later.
That's when things became really tough. The recession hit African-American women, even college-educated ones like me, particularly hard. I've worked on and off since 2008, but finding good work has become almost impossible. At one point, I was traveling two hours each way to get to my job at a state-run liquor store.
I eventually had to quit when I suffered severe medical issues. I was diagnosed with a neurological condition and uterine fibroids, all within a matter of months. A couple of years ago, I was able to work again and joined a job skills program. The program placed me at a job where I work part-time - only 20 hours a week - as a cashier and food server at a university dining hall.
The unemployment rate apparently counts people like me as employed, even though I don't work enough hours to pay my bills. I'm overqualified and underpaid (I earn $11.25 an hour), but since I'm working - even though I'm still on Medicaid and food stamps - I'm used as evidence to say the recession is over.
Involuntary part-time unemployment is a more accurate figure to look at. It's over 15 percent for blacks! That's a whole lot of people who aren't making ends meet, but are still being counted as working.
People need to know that the Federal Reserve has incredible power over the economy and people's lives. It might seem very abstract, but it's not. If the Federal Reserve keeps interest rates low, the economy will continue to grow and people like me will be able to find full-time jobs or better paying work. If it raises rates because it claims the economy is doing well, it will be tougher for everyone to find jobs.
I'm going to Jackson Hole, Wyo., next week to join a protest against the Federal Reserve, which holds a symposium there every year. We want the president of the Philadelphia Fed, Patrick Harker, and the rest of the Fed, to see what regular folks go through beyond the numbers in the headlines.
Every week, I still go online to look for jobs at large hotel chains. I know that one of these days I will work at a hotel again. I just need the economy to give me a fair chance.
Salwa Shabazz lives in Philadelphia and is a member of the Fed Up campaign, an initiative of the Center for Popular Democracy.
By Salwa Shabazz
Source
6 days ago
6 days ago