Wall Street, Main Street, and Martin Luther King Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full Employment Mandate
Executive Summary
The story of the economic recovery varies dramatically depending on where it is being told. On Wall Street, big banks look stronger, bigger, and healthier...
The story of the economic recovery varies dramatically depending on where it is being told. On Wall Street, big banks look stronger, bigger, and healthier than ever. Large companies are making record profits. But, the labor market remains weak. Although the economy has added more jobs in recent months, job growth on Main Street is not nearly as robust as during previous recoveries.[i] Unemployment rates in nearly every state remain above pre-recession levels. Wages have been stagnant or falling for most workers and the quality of jobs has decreased significantly. Main Street still has no clear route to prosperity.
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Many communities are disproportionately struggling in this economy. The Latino unemployment rate is more than 2 percent higher than the rate for whites, and Latino wages and wealth are considerably lower than whites. Women continue to earn substantially less than men. This paper focuses on the economic disparities facing the African-American community in particular because the economic crisis is most acute there: African-American unemployment rates continue to exceed the national unemployment rates at the height of the recession, Black workers’ wages have dropped $0.44 over the past 15 years, though Latino and white wages have risen by $0.48 and $0.45, respectively; unemployment rates among African Americans are higher than those of other racial or ethnic groups; and, though Latino and white wealth has stabilized since the Great Recession, Black wealth continues to shrink. So, while Main Street may be stabilizing (albeit at a lower standard), the recovery has yet to reach Martin Luther King Boulevard. Creating a strong American economy must include prioritizing a genuine recovery for the African American community.
This joint report of the Center for Popular Democracy and the Economic Policy Institute examines the current state of the American economy and labor market, with particular attention to racial inequality and its contours before, during, and in aftermath of the Great Recession. It describes the role that federal monetary policy has played in exacerbating economic disparities over recent decades -- the shrinking national income share for working America and the exploding income and wealth gaps between the top 1 percent and the rest of us. The paper further explores the consequences of the major policy decision currently facing the Federal Reserve (or the Fed): whether to prioritize genuine full employment or to avoid inflation at the cost of robust employment and wage gains. Only by pursuing genuine full employment will the Fed ensure that the recovery reaches Main Street and Martin Luther King Boulevard – and communities of working people throughout the country. As the Fed makes crucial monetary policy decisions in the months and years to come, it must ensure that all communities can share in the prosperity of a functional economy.
The report also studies the decision-making processes and bodies of the Federal Reserve. Although the Board members that govern the regional Federal Reserve banks are legally required to represent the broad interests of the public, they are, in fact, predominantly representatives of the financial sector or large corporations. Without governance that represents the full diversity of the public, Fed decisions risk remaining uninformed by the full economic reality they create, as experienced in communities throughout the country. The Federal Reserve’s focus over the past 35 years has been on price stability, or tamping down inflation. While this focus is good for Wall Street, it has resulted in wage stagnation for most workers on Main Street. The cost of this focus has been slow recoveries in labor markets after each downturn. America needs the Federal Reserve to concentrate on labor market stability and insure that wages are rising with productivity, so that workers reap the benefits from their efficiencies and hard work; that means prioritizing a wage growth target, rather than inflation. A Federal Reserve dominated by banks and major corporations will produce an economy that works for them, at the risk of leaving tens of millions of working families – particularly Black working families – with little hope of a better life.
The report recommends that the Fed:
Create a Strong & Fair Economy
Stimulate Good Jobs for All: The Federal Reserve should commit to building a full employment economy. It should keep interest rates low so that the numbers job openings and job seekers are balanced and everybody who wants to can find a good job.
Invest in the Real Economy: The Fed should use its existing legal authority to provide low- and zero-interest loans so that cities and states can invest in public works projects like renewable energy generation, public transit, and affordable housing that will create good new jobs.
Research for the Public Good: The Fed should study the harmful effects of inequality and examine how policies like raising the minimum wage and guaranteeing a fair workweek can strengthen the economy and expand the middle class.
Create a More Transparent & Democratic Federal Reserve
Ensure That Working Families’ Voices Are Heard: Fed officials should regularly meet with working families and community leaders, not just business executives, in order to get a more accurate picture of how the economy is working.
Represent the Public: In regional banks around the country, Fed leaders come overwhelmingly from financial institutions and major corporations. The Fed should appoint genuine representatives of the public interest to these governance positions.
Create a Legitimate Process for Selecting Fed Presidents: In late 2015 and early 2016, the regional Fed banks will select their next presidents, who will serve five year terms. Currently, the process for selecting those presidents is completely opaque and involves no public input. That needs to change, so that the public has a real role in the selection process.
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[i] Dean Baker, “257,000 Jobs Are Great, but Those Wall Street Boys Are Really Smart” (blog post), Center for Economic and Policy Research, February 6, 2015, http://www.cepr.net/index.php/blogs/beat-the-press/257000-jobs-are-great....
Last Updated April 21, 2015.
Donald Trump pledge to target "sanctuary" cities could cost Denver, Aurora
Donald Trump pledge to target "sanctuary" cities could cost Denver, Aurora
DENVER - President-Elect Donald Trump has threatened to pull federal funding from cities that don’t tow-the-line on immigration.
“We will end sanctuary cities that have resulted in so many...
DENVER - President-Elect Donald Trump has threatened to pull federal funding from cities that don’t tow-the-line on immigration.
“We will end sanctuary cities that have resulted in so many needless deaths,” he said on August 31. “Cities that refuse to cooperate with federal authorities will not receive taxpayers’ dollars.”
That threat has raised concerns in cities like Denver and Aurora, where police departments have said they won’t enforce federal immigration law, because they don’t have the resources and because that's the federal government’s job.
Denver Mayor Michael Hancock says that doesn’t mean the cities don’t cooperate.
“We follow the law,” he told Denver7. “We still cooperate with agencies and ICE (Immigration and Custom’s Enforcement) but we won’t do anything unlawful or unconstitutional.”
That means Denver won’t detain someone for ICE officials once their adjudicated sentence has been served.
When federal courts began to rule in 2014 that cities lack the authority to hold inmates in local jails beyond the term of their sentence, Denver modified its policies in regard to detainers, to conform to constitutional standards, as did numerous state and local agencies throughout the United States.
When asked if Denver is a sanctuary city, the mayor replied, “Denver never adopted a formal policy to be a sanctuary city. What we are is a very welcoming and inclusive city.”
The inclusive city of Denver received $175-million from the federal government in 2015. Much of it was spent on transportation, affordable housing and other forms of public assistance.
Hancock said he doesn’t think the federal government will withhold money from Denver and other big cities, but Denver City Councilwoman Robin Kniech, who chairs the Finance Committee, said, “We accept the possibility of that risk.”
Kniech said federal funds are important but not more important than people.
“We, as a city council, discussed that yesterday, how strongly we support our residents and our obligations to those residents. If that’s the risk, we will face that risk.”
Kniech said Denver has seen the federal government turn its back on financial obligations for many reasons.
“Whether it’s due to government shutdowns or other political shenanigans in Congress, we have to have contingency plans in place,” she said. “We work to mitigate the impact on our residents.”
Kniech said if they have to face that challenge, “I’m confident we would use all the tools in our toolbox to help protect our residents.”
The councilwoman said she is interested in collaborating with other cities and towns.
Kniech is a member of the Board of Local Progress, which includes people who serve on city councils and county commissioners, who are committed to the values of inclusiveness and a stronger economy for their most vulnerable constituents.
“I have been working with colleagues in Austin, Texas, New York City, Los Angeles and other cities all across the country who are standing up to these threats just as Denver is,” she said. “I’m confident we have a national movement.”
The mayor’s staff pointed out that between 2006 and 2013, the State of Colorado adopted and enforced a law (SB 06-90) which required the state to withhold certain grants from any city that had adopted “sanctuary” policies, and defined the term to mean: “Local government ordinances or policies that prohibit local officials, including peace officers, from communicating or cooperating with federal officials with regard to the immigration status of any person within the state.”
During that time, no state grants were ever withheld from the city, because Denver was not deemed to have adopted a “sanctuary” policy within the meaning of that statute.
Other Colorado cities concerned
Aurora received $11-million from the feds last year.
When asked if they’re concerned about a loss of federal funds, Lori MacKenzie, a spokeswoman for the city, said, “We don’t want to speculate because it’s simply too early to know what will take shape at the federal level.”
Trump’s threats are also a concern to the city of Boulder.
In an emailed statement, Boulder Communications Director Patrick von Keyserling told Denver7 that Boulder’s City Council asked staff to conduct research into the impacts of declaring Boulder a sanctuary city.
He said no decision has been made, but acknowledged that the issue of declaring sanctuary is one that has legal and financial implications.
“The city’s research will take into account the potential loss of federal dollars, impact on existing city services and programs and staff’s ability to serve Boulder residents, as well as our community’s strong commitment to social justice,” he said.
By Lance Hernandez
Source
Progressive New Yorkers Launch “13 Bold Progressive Ideas for NYC In 2013”
NEW YORK, NY
Progressive Council Members Rally with Broad Coalition of Community Groups, Grassroots Leaders, Policy Experts and Labor Unions
...
NEW YORK, NY
Progressive Council Members Rally with Broad Coalition of Community Groups, Grassroots Leaders, Policy Experts and Labor Unions
Today, the Progressive Caucus of the City Council, in partnership with over 30 endorsing organizations, launched “13 Bold Progressive Ideas for NYC in 2013.” This policy platform, available at the interactive website www.13boldideas.org articulates a progressive vision for New York City in the new legislative session. By uniting around this shared agenda, New York’s major progressive organizations will inform the debate in the upcoming elections and push for key priorities such as police accountability, low-wage worker organizing, paid si ck days, and equitable Hurricane Sandy recovery.
“It’s time to restore New York City’s place as a beacon for equality, compassion, and democracy,” said Progressive Caucus Co-Chair Brad Lander. “ In this important election year, the City Council’s Progressive Caucus is proud to stand united with NYC’s labor, community, and civil rights organizations in pursuit of these 13 Bold Ideas for the investments, policies, and reforms that our city so badly needs.”
“The 2013 elections provide a unique opportunity to promote a pro-worker, pro-immigrant, racial justice agenda in New York City and to unify around key progressive policy issues, such as police accountability, low-wage worker organizing, paid sick days, and equitable Sandy recovery,” said Andrew Friedman, Executive Director, Center for Popular Democracy. “The Center for Popular Democracy is honored to support the Progressive Caucus’ work to build a more just New York City.”
“We are proud to have the support of so many organizations and unions as we unveil our vision of building a more livable, affordable, and sustainable city,” said Progressive Caucus Co-Chair Melissa Mark-Viverito. “When low-wage workers thrive, all New Yorkers are better off. That’s why improving the lives of these workers is such a central component of our policy agenda. Whether it’s paid sick time, boosting wages or defending the right to organize, we in the Caucus stand ready to improve working conditions for this vital sector of our economy.”
“Bold and progressive are words long associated with this great city,” said Hector Figueroa, President of 32BJ SEIU. “This platform offers an exciting – and attainable – vision for a livable, affordable and sustainable city. We’re ready for new ideas and new energy, and have a unique opportunity in 2013 to rebuild our infrastructure, recommit to responsible development, confront climate change, and make New York City the most immigrant and working family-friendly city in the world.”
“Though the New York Civil Liberties Union can only address portions of this progressive agenda, we share the commitment to a New York City where all people are treated fairly, equally and with dignity,” said Donna Lieberman, Executive Director, NYCLU. “That’s why we welcome the Progressive Caucus’ bold ideas to ensure that all children have the opportunity to get a decent education, in a respectful and supportive environment, and to ensure equal justice for all — fair and just policing , meaningful accountability and oversight of the NYPD, protection for immigrants and government transparency. These bold ideas are a significant part of the progressive agenda and will enhance the lives, liberty and dignity of New Yorkers and help make New York a fairer and more just city.”
“I am excited to be a part of the 13 Bold Ideas that will transform our City in a positive and progressive direction,” said Council Member Jumaane Williams. “This mission statement is a blueprint for ensuring that every New Yorker is able to live up to their potential. Action items like greater police accountability, reforming local government and ensuring a quality education for our children are issues we can all rally around in the coming year.”
“I am proud to lend my voice to help articulate a progressive vision for New York City,” said Council Member Margaret S. Chin. “Our vision is a City where prosperity is shared among all New Yorkers – not just the very wealthy; where all of our civil rights are upheld; where a hard day’s work is rightfully compensated; and where all New Yorkers have access to quality public education, health care, and childcare. Now is the time for change. I want to thank all the organizations that have pledged to support a more sustainable, more equal and fairer New York City.”
“We are thrilled to be part of this effort to make New York City a truly progressive city,” said Sherry Leiwant, Co-President, A Better Balance, “and we are delighted that paid sick days which we have been trying to pass for almost four years is a major part of this agenda.
“We applaud the Progressive Caucus and their Council Members for the launch of 13 Bold Ideas,” said Javier H. Valdes, Co-Executive Director of Make the Road Action Fund. “The elections of 2013 provide us with the opportunity for us to come together and create a collective vision for a more equitable New York.”
“The diversity of the groups represented in the Progressive Caucus is a symbol of what we are trying to achieve across the city — to provide a voice for ALL New Yorkers,” said Council Member Stephen Levin. “By launching 13 Bold Ideas we stand together to move New York City forward.”
“These 13 bold ideas will help cement a solid agenda within the New York City Council that will help us to continue toward building a city that is affordable and sustainable for all,” said Council Member Jimmy Van Bramer. “There is no opportunity like the present to shed light on issues which are close to New York City’s working class. I stand by my fellow progressives in pushing to implement these initiatives which I believe will strengthen and develop our City’s middle class. Together we will build a coalition of partnerships that will continue to enact equal justice for all and enhance our government in an effort to provides results for all people.”
“New York City — one of the most economically unequal cities in the nation — desperately needs bold ideas like these,” said Dave Palmer, Executive Director of the Center for Working Families.
“The Local 1180 motto is ‘We make New York work for all New Yorkers,’” said Arthur Cheliotis, President, Local 1180. “It reflects our belief that the work the members do in our complex government facilitates government services to all New Yorkers. These 13 Bold Progressive Ideas will help make our government work for all New Yorkers. It offers a vision and plan of a city government that will act in the interest of New Yorkers in every walk of life by offering an equal opportunity to excel and contribute to the common good. These 13 Bold Progressive Ideas offer concrete proposals to ensure that our government protects us from intimidation, manipulation and exploitation by the rich and powerf ul. They move us closer to a transparent, accountable and effective government, by and for all the people, which is at the core of the democratic principles we cherish as New Yorkers and Americans. We must make these 13 Bold Progressive Ideas the bulwark of New York City’s Government.”
“This is a bold platform for a more just city,” said Bill Lipton, Working Families Party. “The City Council will see tremendous turnover this year. A platform like this will help the voters know which candidates share a vision for a city that works for all of us.”
“Hurricane Sandy exacerbated many long-standing economic and social inequities – making worse homelessness, unemployment, and health disparities for many low-income New Yorkers,” said Brian Pearson, Community Organizer, VOCAL-NY. “Yet this tragedy also presents an opportunity to rebuild in a way that is equitable and just. We must build back a better, more sustainable New York where all New Yorkers have access to affordable housing, good jobs, and quality health care.”
“The 13 Bold Ideas are a rallying cry for progressive New Yorkers,” said Alex Low, President, New Kings Democrats. “This is a blueprint for creating a more just, fair and equitable New York City, and for ushering in real democracy to the New York City Council.”
“This is a strong policy agenda built on justice, fairness, and a high quality of life and would make New York a model for cities around the world,” said Té Revesz, Chair of Citizen Action of New York City. “If implemented, these ideas would allow all residents the opportunity for success, revitalizing the concept of the American dream.”
“To move New York City forward in a meaningful and fair way, our elected officials must address key issues facing our city such as police accountability, paid sick leave for all workers and improving the quality of mass transit and public education,” said Aliya Quraishi, Board Member, Greater NYC for Change. “13 Bold Ideas sets out to bring these issues to the City Council and I strongly support this initiative.”
“Demos is proud to support the Progressive Caucus’ 2013 agenda,” said Amy Traub, Senior Policy Analyst, Demos. “These principles and policies are essential to building a New York where we all have an equal say in our democracy and an equal chance in our economy.”
“The 13 Bold Ideas advance good jobs that provide sustainable wages, strengthen the social safety net, further the call for permanent affordable housing, and build a stronger and more direct democracy,” said John Medina, a member-leader of Community Voices Heard Power. “ In this important and historic year, these Bold Ideas would move New York to be a beacon in the fight for the working poor and for those unable to work. We are proud to unite with the Progressive Caucus and the other organizations supporting the 13 Bold Progressive Ideas because this is the year for action.”
“2013 is a unique opportunity for young people to help shape New York City to truly realize its progressive potential: for many young voters, it will be the first time they will elect a new Mayor, a new Comptroller, a new Public Advocate, a new Borough President and a new City Council Member,” said Stefan Ringel, President, Brooklyn Young Democrats. “The Brooklyn Young Democrats represent the voice of students, young professionals and activists all across Kings County; we are the current and future stakeholders in our communities. By advancing legal and economic equality, investing in our youth and creating sustainable and affordable neighborhoods, the 13 Bold Ideas will ultimately change the Borough for the b etter for years to come. The Brooklyn Young Democrats will continue work to see that progressive ideas don’t just remain ideas, but become successfully implemented and ensure that the future for all Brooklynites – young and old – is a bright one.”
“For a fully functionally 21st Century economy, New Yorkers need a government that fosters connectivity, educates them for the future, and supports an innovative economy,” said Noel Hidalgo, Open NY Forum / Code for America’s NYC Brigade. “Through Local Law 11 of 2012 and BigApps, all New Yorkers are starting to take advantage of participatory, transparent and innovative government. With further public and private collaboration, we can build a New York for all New Yorkers.”
Endorsing Partner Organizations 1199 SEIU 32BJ SEIU 350.org A Better Balance Association of Neighborhood and Housing Development ALIGN Barack Obama Democratic Club Brooklyn Movement Center Brooklyn Young Democrats CAAAV Center for Popular Democracy Center for Working Families Citizen Action of NY – NYC Chapter Civic Engagement Table Coalition for the Homeless Community Service Society Community Voices Heard Power CWA Local 1180 Demos FUREE Greater NYC for Change Hell’s Kitchen for Change Hotel Trades Council Lambda Independent Democrats Make the Road Action Fund Metropolitan Council on Housing NEDAP New Kings Democrats New York Communities for Change Professional Staff Congress CUNY South Bronx Unite UnitedNY Urban Justice Center VOCAL-NY Working Families Party
The Silver Lining of the New Gilded Age: Fewer Targets
The Silver Lining of the New Gilded Age: Fewer Targets
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York headquarters in January.
...
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York headquarters in January.
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Report Shows Illinois Has One of the Nation’s Highest Black Unemployment Rates Despite an Improving Economy
Report Shows Illinois Has One of the Nation’s Highest Black Unemployment Rates Despite an Improving Economy
Across the country, the economy is supposed to be slowly picking up, but the unemployment rate for Blacks is still about twice the rate of whites. A report by Progress Illinois said the...
Across the country, the economy is supposed to be slowly picking up, but the unemployment rate for Blacks is still about twice the rate of whites. A report by Progress Illinois said the state’s Black unemployment rate is one of the worst in the nation.
According to analysis by the Economic Policy Institute (EPI,) only two other states, New Jersey and South Carolina have higher Black unemployment rates than Illinois. D.C. had the highest Black unemployment rate at 14.2 percent, while Tennessee had the lowest at 6.9 percent. Illinois’ Black unemployment rate declined to 11.5 percent in the second quarter of 2015, according to Progress Illinois.
The nationwide unemployment rate has fallen to about 9 percent. However, the Black jobless rate is twice the white unemployment rate of 4 percent, according to the Bureau of Labor Statistics.
“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” said EPI economist Valerie Wilson, who conducted the unemployment analysis. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”
In a press release, Connie Razza, director of strategic research for the Center for Popular Democracy (CPD), said, contrary to the improving economy, “Black America is still in the middle of a Great Recession.”
According to Progress Illinois, EPI and the Center for Popular Democracy both called on the Federal Reserve to support policies that would help Black America.
“When [Fed] Chair [Janet] Yellen and other Fed officials talk about raising interest rates in 2015, they are talking about intentionally slowing down the economy and job growth, which would make it harder for most Americans, and particularly Black workers, to find good-paying jobs,” Razza said. “The direct consequences of the Fed’s projected interest rate hikes would harm millions of workers.”
A tight labor market, which we have now, benefits employers since there are more people looking for fewer jobs. This allows employers to keep labor costs low and easily fire workers, because there are hundreds of people lined up to replace them. Razza said the Fed needs to support policies that would move towards a full employment economy.
“A full-employment economy, as we saw in the late 1990s, shrinks racial inequity and will bring particular benefits to Black workers, who are disproportionately unemployed, underemployed, underpaid, and endure more difficult scheduling circumstances in the workplace,” Razza said.
Black unemployment has been a long-standing problem. The Labor Department began tracking employment figures by race in 1972 and since then the Black jobless rate has stubbornly remained at twice the white rate. Employment experts say its not just a matter of training and education. Studies have shown Black men with college educations have higher unemployment rates than white men with just a high school education.
However, economists say the improving economy is making it easier for all Americans, including Black people, to find work.
“Now, you’re starting to see a broad recovery which is reaching groups with high unemployment rates like African-Americans and teens,” said Michael Madowitz, an economist at the American Center for Progress in a CNN article.
This issue was also brought up during the last Republican debate.
“Once you have economic growth, it’s important we reach out to people who live in the shadows… which includes people in our minority community and people who feel they don’t have the chance to move up,” said Ohio Gov. John Kasich, a Republican presidential candidate.
Source: Atlanta Black Star
As the federal government fails the people of Puerto Rico, local governments and states must step up
As the federal government fails the people of Puerto Rico, local governments and states must step up
“Most recently, I’ve answered the call to service within my Delaware community. As the Program Director for Achievement Matters, I lead a team working with youth to close the educational...
“Most recently, I’ve answered the call to service within my Delaware community. As the Program Director for Achievement Matters, I lead a team working with youth to close the educational achievement gap. Through the Metropolitan Wilmington Urban League, I teach young people how to fight for social change. I also work with the Center for Popular Democracy on solutions to the opioid crisis, healthcare, immigration, and taxes, and as the Kent County Coordinator for Network Delaware, I’m organizing to increase engagement throughout Delaware.
Read the full article here.
Yellen Meets with Activists Seeking Fed Reforms
Associated Press - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with the Federal Reserve.
More than two dozen activists...
Associated Press - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with the Federal Reserve.
More than two dozen activists demonstrated outside the Fed and then met with Chair Janet Yellen on Friday as part of a new campaign seeking policy reforms and a commitment to keep interest rates low until good jobs are plentiful for all workers. Although the labor market has steadily strengthened this year, wages have remained stagnant.
During the hour-long discussion with Yellen and three other Fed board members, coalition representatives discussed problems their communities were facing with high unemployment and weak wage growth.
Ady Barkan, one of the organizers of "Fed Up: The National Campaign for a Strong Economy," said Yellen and the other Fed officials listened but made no commitments about future Fed policy.
"It was a very good conversation," said Barkan, an attorney with the Center for Popular Democracy in Brooklyn. "They listened very intently, and they asked meaningful follow-up questions."
Fed officials confirmed that the meeting took place but declined to comment on the issues raised at the meeting.
The Fed's outreach to community activists was the latest move by Yellen to focus attention on lingering problems from the Great Recession. Wearing green tee-shirts with the phrase "What Recovery?" the group had protested outside of the Fed's headquarters on Constitution Avenue under the watchful eye of nine Fed security officers.
Members of the group, some of whom had demonstrated at a central bank gathering in August in Jackson Hole, Wyoming said it was important that Fed officials not be swayed by arguments that it needs to move quickly to raise interest rates to make sure inflation does not become a threat.
"The banks are the ones that crashed the economy ... but they're the ones who got the bonuses and the bailouts while workers and homeowners like me were left to drown," said Jean Andre, 48, of New York, who said he was having a tough time finding full-time work.
In addition to Yellen, the Fed officials who took part in the meeting were Fed Vice Chairman Stanley Fischer and Fed board members Jerome Powell and Lael Brainard.
Members of the coalition said about half of the meeting was taken up by their members telling stories about the difficulty in finding jobs, particularly in disadvantaged groups and communities dealing with unemployment much higher than the 5.8 percent national average.
The Fed officials also were presented a petition signed by 5,000 people around the country urging the central bank to keep interest rates low until the country reaches full employment.
The group also pushed for a more open process in the selection of presidents of the Fed's 12 regional banks. They say the current process is too secretive and dominated by officials from banks and other businesses with little input from the public. The regional presidents, along with Fed board members in Washington, participate in the deliberations to set interest rates.
Source
Report: Federal Reserve Should Be ‘Fully Public,’ Increase Diversity in Highest Ranks
Report: Federal Reserve Should Be ‘Fully Public,’ Increase Diversity in Highest Ranks
Lawmakers should strip banks’ influence from the Federal Reserve’s leadership, make its regional banks publicly owned corporations and increase transparency in selecting its top leaders, according...
Lawmakers should strip banks’ influence from the Federal Reserve’s leadership, make its regional banks publicly owned corporations and increase transparency in selecting its top leaders, according to a report released Monday by the Fed Up Coalition, a campaign led by the left-leaning Center for Popular Democracy.
The 17-page report — co-authored by Fed Up Coalition Campaign Manager Jordan Haedtler, economist Valerie Wilson of the Economic Policy Institute and Dartmouth College economist Andrew Levin — is a more detailed version of a Fed overhaul framework proposed in April by Levin, a former Fed staffer, and urges members of Congress to make the central bank a “fully public institution” and scrub the influence of banks from its top echelons.
The report also proposes establishing annual audits of the Fed by the Government Accountability Office, reworking the selection process of Fed regional presidents and directors, returning capital shares to commercial banks invested in the regional Fed branches and opening the 12 regional banks to the Freedom of Information Act.
“We have really strived to make a proposal that we see as sensible and pragmatic and nonpartisan,” Levin said Monday in a conference call with reporters. “Over the years, both progressives and conservatives have felt strongly that big banks should not have an undue influence in the governance and the decision-making process of the Federal Reserve, and making the Fed fully public is an important way to do that.”
The proposal differs from previous “audit the Fed” measures, such as Sen. Rand Paul (R-Ky.)’s legislation that failed to garner the 60 votes needed to advance during a procedural vote in January, because it would prevent “political interference” in the central bank by establishing an annual schedule for GAO audits and giving the reviews a comprehensive focus rather than allowing members of Congress or congressional committees to single out monetary policy decisions, Levin said.
The report calls for greater diversity at the Fed’s top levels — both in terms of increasing racial and ethnic diversity and limiting the influence of financial sector power-brokers. It also said policymakers should be limited to a single seven-year term. Currently, the Fed chair is appointed to a four-yeart term that can be renewed. Members of the central bank’s Board of Governors are appointed to staggered 14-year terms, but their tenures average about four years. Regional Fed presidents have renewable five-year terms, and they typically hold office for at least two decades, according to today’s report.
The authors said that refunding shares to commercial banks with stakes in the regional Fed branches would save taxpayers about $3 billion over the next 10 years.
Members of the Fed Up Coalition are scheduled to meet later this week with Fed officials, including Federal Reserve Bank of Kansas City President Esther George, at the central bank’s annual policy symposium in Jackson Hole, Wyo. The meeting with George won’t center on today’s report, but instead will focus on “presenting stories of communities that still have not recovered from the Great Recession,” Haedtler said.
By TARA JEFFRIES
Source
At Jackson Hole, More than 100 Fed Up Coalition Members, Stiglitz, and Other Economists Hold Press Conference Calling on the Fed Not to Slow Down the Economy
As the Federal Reserve’s interest rate debate heats up, a national coalition of workers, community-based organizations, and economists is stepping up its advocacy for a pro-jobs, pro-wages, racial...
As the Federal Reserve’s interest rate debate heats up, a national coalition of workers, community-based organizations, and economists is stepping up its advocacy for a pro-jobs, pro-wages, racial equity agenda. Todayoutside of the Fed’s annual policy summit, workers and advocates called on the Fed to follow the data, not impulses, and to give the economic recovery enough time to reach all workers, including African Americans and Latinos.
Participants also delivered more than 110,000 petition signatures from supporters across the country warning the Fed against slowing down the economy and hurting working families. The petition effort was spearheaded by major advocacy allies including CREDO Action, the Working Families Organization, Demand Progress, Daily Kos, and an onlinevideo from former Secretary of Labor Robert Reich.
The press conference is part of Whose Recovery: A National Convening on Inequality, Race, and the Federal Reserve, which the Fed Up coalition is hosting on August 27 and 28 to coincide with the Federal Reserve’s annual policy conference. The conference will feature two days of teach-ins and workshops by workers, civil rights leaders and renowned economists.
As part of the event, the Fed Up campaign released a report,A National Convening on Inequality, Race, and the Federal Reserve, that calculates the benefits of full employment for all communities, in terms of increased income, decreased poverty, and higher tax revenues. The report, available here, also features policy briefs and factsheets to accompany each of the convening’s teach-ins and a collection of articles and op-eds from the past year addressing issues of monetary policy, Fed governance, and the Black Lives Matter movement.
"Every day, my husband tries to get work. He competes with hundreds of other men who form long lines, every one of them desperate for even a temporary job at the local work pool. Together, despite our hard work and best efforts, we still struggle at the end of the month with health and household bills,” said Dawn O’Neal, a teaching assistant and member of Rise Up Georgia. “That’s not just our story, but that of our neighbors and our community. For members of the Fed looking to slow down the economy, I’d invite them to come here to East Atlanta. It’s not easy to live here; for some people the economy means our very survival.”
“This is not an economy where everyone can thrive. It is an economy where communities are struggling to survive; where parents are struggling with which bill to let slide and for how long, while still providing stability for their kids,” said Connie Razza, director of strategic research at the Center for Popular Democracy. “It is beyond clear: This is not a time for the Federal Reserve to raise interest rates. We are calling on the Fed to not raise interest rates and give the recovery to take hold in our communities.
“Whether it likes it or not, what the Federal Reserve does has significant effects on inequality in our country,” said Roosevelt Institute Chief Economist and Nobel Laureate Joseph E. Stiglitz. “It is time for the Fed to take greater recognition of this, since there are many channels through which its policies impact inequality and affect American workers and families, and reshape its polices accordingly.”
“We are here raising the voice of everyday people because no one should have to work works 60 hours a week and remain in poverty,” said Kendra Brooks, of Action United. “Our delegation is here to request transparency in the Fed with the selection process, with more access to timelines, the opportunity to preview potential candidates, and to be a part of the process. There is a clear problem with income inequality in our country. When the top 10% are controlling the financial futures of the rest of the country, the middle class and vast majority of nation are not represented nor are they heard.”
“I am in Jackson Hole because I have a personal stake in the Federal Reserve Bank focusing on full employment and living wages instead of raising rates. If the Fed continues to focus on talking about prematurely raising interest rates, it will just be harder for my two sons to get out of the trap of underpaid work that is either temporary or not nearly close to the kind full time work they need,” said Claudia Nelson, Chair of the Board of Directors at Communities Creating Opportunity in Kansas City, Missouri.
“Among other things, the Fed can do a lot to address inequality by allowing unemployment to fall to much lower levels,” said Josh Bivens, Research and Policy Director at the Economic Policy Institute.
“I am in Jackson Hole because I have a personal stake in this,” said Claudia Nelson, of Communities Creating Opportunity, in Kansas City, Mo. “The Federal Reserve must focus on full employment and living wages instead of slowing down the economy. If the Fed continues to ignore economic data and focus on raising interest rates, it would have a very real effect on my family. It will be harder for my two sons to get out of the trap of underpaid work that is either temporary or low-quality. My sons and my community deserve a fighting chance at better jobs and better wages.”
The Fed Up campaign, led by the Center for Popular Democracy, is hosting the Whose Recovery convening in order to elevate the voices of working families in the national debate about monetary policy. With the central message of “Let Our Wages Grow,” the convening is meant to highlight to Fed policy makers and the public that it makes no sense to slow down the national economy now. The teach-ins will be led by workers, economists, and Fed Up allies and will cover an array of topics like the Fed’s role in full employment, the intersection of Black Lives Matter and the Fed, the selection process for regional bank presidents, a historical look at inflation, and more.
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
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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