Workers Rising - The Report
Workers Rising: Organizing Service Jobs for Shared Prosperity in New York City
Something unique has happened in New York: a wave of low-wage worker activity. As is clear...
Something unique has happened in New York: a wave of low-wage worker activity. As is clear from this report, New York City is at a critical turning point: will the City be one where all working families can find stable, living-wage employment? Or will the entrenched inequality of the City worsen still further? This report captures the inspiring stories of low-wage workers who have put these issues in the spotlight, organizing for improved conditions in industries ranging from car wash to fast food to retail and beyond.
It is our hope that this report will help elevate the issues raised by these workers as New York prepares to elect a new City Council, a new Mayor, a new Public Advocate, and a new Comptroller to take office in 2014.
Download the report here
Executive SummaryAlthough New York’s economy has begun to recover from the Great Recession, working New Yorkers continue to face serious challenges.
Despite the significant rise in workers’ productivity over the past forty years, their wages have remained stagnant while those at the top of the economic pyramid have reaped nearly all of the benefits of our growing economy. When the recession hit in 2007, it exacerbated an already dire situation for working class and impoverished New Yorkers.
The City’s unemployment rate nearly doubled, from 5.3 percent in 2007 to 9.7 percent today. Real median income in the City fell nearly 8 percent, from $35,000 in 2008 to $32,200 in 2011. The percentage of New Yorkers who are poor rose from 18 percent to a staggering 21 percent. And twice as many people now are homeless in the City as were in 1992. Most striking of all, this widespread economic misery takes place amid unheralded wealth: according to formal measures,
Manhattan’s inequality is higher than all but one other county in the nation and approximately equivalent to that of Bolivia.
As troubling, the growing sectors of the New York City economy, such as the growing service sector, feature low-wage, no-benefit jobs, with little hope for upward mobility.
This is a familiar narrative. But the next act is inspiring and a cause for hope: 2012 was a year of unprecedented activity by low-wage workers in the service industry, including strikes, rallies, marches, and union organizing. New York’s service workers are rising and fighting back – as their predecessors did in the 1930s – against poor working conditions and poverty-level wages. Despite the real risk that speaking out may cost them their jobs, thousands of workers in New York City’s lowest wage industries are joining together to demand dignity on the job.
At car washes from Elmhurst to So-Ho and Jamaica to Mott Haven, immigrant car washers have voted to unionize. At fast food restaurants from Times Square to Fulton Street in downtown Brooklyn, protesting workers have made national news by taking on and striking some of the biggest employers in America. At flagship Fifth Avenue retail stores, cashiers are calling for an end to the part-time poverty that plagues the industry. And at JFK Airport, the men and women who keep millions of travelers safe have united to demand better training, higher pay, and health insurance so their families can be healthy and safe as well. These workers’ bold actions, sparked, we believe, by the energy and anger and hope of the Occupy movement, have amplified the call for change – and broadened it to make clear that this is a fight for all New Yorkers.
In this report, we take a closer look at the growing worker movements that are throwing a spotlight on abuse on the job and at the need to build an economy typified by stable, living-wage, dignified jobs. We also highlight critical policy changes that elected officials could implement that would address the plight of low-wage workers in the City, helping to turn low-wage, dead-end jobs into stable middle class employment opportunities. Raising the minimum wage is perhaps the most important reform that legislators can enact this year to improve standards of living for working-class New Yorkers. That power—and that duty—lies with the New York State Legislature. Raising the minimum wage would result in higher pay for more than one million New York workers. Indexing the minimum wage to inflation will raise consumer spending, help strengthen the economy, and create thousands of new jobs. Although a good first step, the reforms currently under consideration are insufficient. An increase in the minimum wage to $10 per hour would give full-time workers a salary of $20,000 per year and help to reduce poverty in New York City. At the very least, the Legislature should expand New York
City’s home rule power so that it can create a City minimum wage that reflects the higher cost of living here, as compared to upstate.
The New York City Council also has the power to reshape our economy in meaningful ways. Improving the jobs and lives of low-wage workers is not only an issue of justice, but also an issue of good economics. If low-wage jobs were to be transformed into middle class jobs, workers’ higher wages would allow them to spend more on local goods and services, giving a boost to the economy that our city’s neighborhoods could desperately use.
In 2013, New York City voters will elect a new mayor and fill every seat on the New York City Council. Over the coming four years, these elected officials will make critical decisions impacting the lives of millions of people. But our future is not in their hands. It is the politicians’ future that is in ours. Will our next mayor continue programs that deliver tax breaks and subsidies to large corporations that do not deliver on promised job creation? Will our next City Council finally pass key reforms – such as legislation to provide paid sick leave to the City’s workforce – that can improve the lives of low-wage workers and their children? Will New Yorkers and our elected officials build a City in which all working families can thrive? In large part, the answers will depend on the choices that elected officials and voters make over the coming year.
These are four sets of actions that the New York City government could take to improve life for low-wage workers:
First, the City should raise standards for low wage work by passing legislation to guarantee at least five days of paid sick leave for workers – such as the Earned Sick Leave Act – and to protect workers from erratic and unpredictable scheduling that keeps them in poverty – such as the Predictable Scheduling Act. Second, New York should regulate high-violation industries where wages are low and labor abuses are rampant by passing laws like the Car Wash Accountability Act and establishing an enhanced privilege permitting system at Port Authority airports. Such policies should impose new licensing or permitting requirements, tighten environmental and safety standards, and implement other tailored policies that increase oversight of the lowest-wage, highest-violation industries. Third, in order to ensure that these new rights make a meaningful difference in workers’ lives, the City should establish a Mayor’s Office of Labor Standards to educate employers about their obligations, investigate complaints by workers that employers are violating the law, and bring enforcement actions in particularly egregious cases. Fourth, New York City should pass a resolution urging the State to modify the City’s home rule authority so that the City can set a minimum wage that is higher than the state minimum, reflecting the high cost of living here.Minimum standards in the workplace have always been resisted by much of the business community. One hundred years ago, opponents said that prohibitions on child labor and basic workplace safety laws would harm consumers. In the 1930s, they said that minimum wage and hour laws would cost jobs. And throughout the civil rights era, they said that anti-discrimination laws would destroy free enterprise and the autonomy of business owners. But today these laws are indelible and uncontroversial features of our economy. The same can be true of paid sick leave, predictable and fair scheduling, and a living wage for everybody. When standards are raised and all businesses are required to take a higher road, New Yorkers will enjoy more broadly shared prosperity and a more just society.
We sit at a pivotal moment in New York City’s history. And as low-wage workers across the City have made clear with their growing movement for change, we must take this unique opportunity to build a City that provides opportunity and economic security for all New Yorkers.
Community Activists And Senator Warren Persuade HUD Sec. Julian Castro To Help Homeowners And Reign In Wall Street Speculators
Community Activists And Senator Warren Persuade HUD Sec. Julian Castro To Help Homeowners And Reign In Wall Street Speculators
Last September 30, community activists and local officials from around the country came to Washington, DC to protest HUD’s pro-Wall Street policies.
Two years ago, community organizing...
Last September 30, community activists and local officials from around the country came to Washington, DC to protest HUD’s pro-Wall Street policies.
Two years ago, community organizing groups around the country, with the key support of Senator Elizabeth Warren (D-MA), began pressuring HUD Secretary Julian Castro to stop selling delinquent mortgages to Wall Street investors and help nonprofit organizations to purchase the loans, help homeowners keep their homes, and expand the supply of affordable housing.
On Thursday, they won. Castro announced a set of policy changes to its Distressed Asset Stabilization Program (DASP) that activists had labeled a “Wall Street giveaway.” Last year, for example, 98% of the mortgages HUD sold went to Wall Street firms, at discounts averaging nearly 50%. Castro pledged to fix the program to triple the sales of delinquent mortgages to nonprofit community groups with experience in stabilizing neighborhoods and helping homeowners and to put more restrictions on foreclosures.
The policy fix was needed because some of the same Wall Street firms that precipitated the housing crash have been buying up distressed housing assets in bulk, including delinquent mortgages and vacant houses that are a product of the crash.
Both Sen. Elizabeth Warren and HUD Secretary Julian Castro are frequently mentioned a potential VP running mates with Hillary Clinton.
The campaign’s victory is the result of a perfect political storm. The organizers mounted a savvy grassroots organizing campaign that built on the momentum of the Occupy Wall Street movement that began in 2011. In the current political season, no politician, especially a Democrat, wants to be too closely identified with Wall Street’s financial industry, which most Americans still blame for the 2008 economic tsunami from which the country still hasn’t recovered. During this presidential season, both Hillary Clinton and Bernie Sanders vied to be the champion of Wall Street reform. HUD Secretary Castro, a former San Antonio mayor, has been auditioning for the role of Clinton’s vice presidential running mate, but many pundits view him as too conservative and cautious — and too pro-business — to help Clinton galvanize both Latino voters and Bernie Sanders’ supporters in the contest with Donald Trump. With his announcement this week, Castro can claim to be on the side of homeowners and communities against Wall Street speculators.
HUD’s DASP program, started by the Obama administration in 2012, became a part of the larger problem by auctioning off its distressed mortgages to the highest bidder, which allowed Wall Street firms to take ownership and accelerate foreclosures.
“This whole process shows just how tilted the playing field is for the big banks and hedge funds,” said Warren, who has been the Senate’s most vocal critic of Wall Street abuses, last year. “Many of these banks and funds were responsible for fueling the housing bubble in the first place — leading to the crash that hit these families like a punch to the gut. Now these same banks and funds are turning around and scooping up these loans at bargain-basement rates so they can profit from them a second time.”
The new HUD policy changes to fundamentally reform the program, resulting in more mortgage pools being sold to non-profits, more foreclosures avoided, and more vacant property turned into affordable housing. The changes include:
Help existing homeowners facing foreclosure remain in their homes by modifying their mortgages to reflect current market values — a strategy called “principal reduction.” Until now, both HUD and Fannie Mae, under pressure from the banking industry, had resisted this approach. Now, even private equity firms and hedge funds will have to use that strategy in reworking troubled mortgages.
Increasing the sale of HUD’s distressed mortgages to non-profit organizations
A commitment to work with local governments and non-profits to target sales to those who will help homeowners keep their houses and expand the supply of affordable housing.
Far greater provisions for transparency in the sale process
“These recent HUD changes move in the direction of common sense policy,” said Maurice Weeks of the Center for Popular Democracy, one of the groups that coordinated the nationwide grassroots campaign. “We shouldn’t be handing over our neighborhoods at bargain basement prices to Wall Street.”
“HUD’s bulk mortgage sale program has been fueling the speculator buy-up of our neighborhoods,” observed San Francisco Supervisor John Avalas, one of many local elected officials who supported the campaign. “Finally, HUD is making changes to this mortgage sales program that better prioritize what our communities need — saving more homes from foreclosure and creating more affordable housing. It’s about time!”
Sarah Edelman, director of housing policy for the Center for American Progress and coauthor of a new report on the problem, told the New York Times that the policy changes “significant improvements” in the loan sale program.
“The policies announced today are a promising step toward more responsible loan auctions,” she said.
Millions of homeowners are still delinquent on the mortgage payments, many through no fault of their own, but because of predatory and reckless lending practices as well as the sluggish recovery of the economy in terms of restoring the incomes of working families. As a result, federal officials and community activists expect there to be many more sales of troubled mortgages that were guaranteed by the federal government.
The policy changes are a culmination of several years of research and activism by grassroots groups on the front lines of the nation’s housing and banking crisis.
Several years ago, different community groups began noticing the growing presence of Wall Street speculators in their neighborhoods, one of the aftershocks of the epidemic of foreclosures. Several local groups examined records, interviewed tenants, and issued reports documenting that in areas where Wall Street investors own a significant number of these single-family homes — including Atlanta, Las Vegas, Phoenix, Miami, Tampa, Orlando, Charlotte, Dallas, Chicago, Detroit, Denver, and Los Angeles and nearby Riverside — their practices have harmed tenants and undermined long-term neighborhood stability.
The activists discovered that HUD, Fannie Mae, and Freddie Mac — which own or guarantee the distressed mortgages on many single-family homes — were part of the problem. Over the past few years, they’ve auctioned off about 150,000 non-performing loans that they want to get off their books. Of these loans, fewer than two percent have gone to nonprofit buyers. The rest (98 percent) have gone to Wall Street companies. As of last fall, five Wall Street firms — Lone Star, Blackstone Group, Angelo, Gordon & Co., Selene Residential Partners, and the Royal Bank of Scotland — accounted for 64 percent of all the public loan sales. Last year, Goldman Sachs popped up on the purchaser list for the first time, buying loans from Freddie Mac.
The community organizers and their researchers also exposed a double standard. Although Fannie Mae and Freddie Mac have been unwilling to offer principal reduction to struggling homeowners, and HUD has been unwilling to require principal reduction as part of its program, these agencies often offer steep discounts when they sell these mortgages to Wall Street speculators, who typically foreclose on the homeowners, adding to their inventory of homes scooped up in private foreclosure sales. In unloading these mortgages, the federal agencies often ignored the housing needs of local communities.
The grassroots groups enlisted the help of two national umbrella organizations — the Center for Popular Democracy (a network of community organizing groups) and Local Progress (a network of progressive local elected officials) — as well as Senator Elizabeth Warren, who championed the cause in Congress. These used a variety of tactics — protest actions, internet petitions, and muckraking research — to generate media attention and put pressure on the Obama administration.
These groups — many of which had been working on banking issues for over a decade — launched their national campaign in September 2014. They were relentless in pressuring HUD, Fannie Mae and Freddie Mac to prioritize non-profits over speculators in their sales of troubled mortgages. In particular, they demanded that these agencies prioritize sales to non-profit Community Development Finance Institutions (CDFIs) that have the capacity to purchase large inventories of underwater mortgages and distressed properties — including vacant houses that owners lost through foreclosure and occupied homes where underwater borrowers are on the brink of foreclosure — and stabilize them as affordable housing. The CDFIs were being crowded out by hedge funds working hand in hand with HUD, Fannie Mae, and Freddie Mac.
At the start of the campaign, the activists released a report, Vulture Capital Hits Home: How HUD is Helping Wall Street and Hurting Our Communities, that explained why HUD’s policy of favoring Wall Street investors was exacerbating the nation’s housing crisis.
A week before Christmas in 2014, at rallies outside local HUD offices, community groups in Los Angeles, San Francisco and Boston presented HUD with their “Grinch of the Year” award for refusing to fix the DASP program.
“By auctioning pools of delinquent loans to the highest bidders — vulture capitalists — HUD is driving unnecessary foreclosures and contributing to the rise of ‘Wall Street Landlords,’” said Gisele Mata, an organizer with the Alliance of Californians for Community Empowerment, a statewide organizing group that played a key role in the national campaign, at the press conference.
In June 2015, the campaign released another report, Do Hedge Funds Make Good Neighbors? How Fannie Mae, Freddie Mac and HUD are Selling Off Our Neighborhoods to Wall Street, at a protest rally in front of the Santa Monica office of the Blackstone Group, the private equity giant (with over $300 billion in assets under management), which had become the largest landlord of single-family rentals in the country by gobbling up distressed mortgages - including many sold by HUD — at bargain-basement prices. Since 2012, the report found, federal agencies had sold over 120,000 delinquent mortgages to Wall Street hedge funds and private equities firms. Bayview Acquisitions, largely owned by Blackstone, has bought 24,000 of these mortgages. The report unearthed an array of disturbing business practices, including failure to make repairs and the harassment and illegal eviction of occupants. An investigation by the New York Times published last week confirmed earlier findings of abusive practices. The Times revealed, for example, that Lone Star had pushed thousands of borrowers into foreclosure and failed to negotiate with homeowners to modify their mortgages so they could remain in their homes.
Through Local Progress and 17 progressive mayors from across the county,, the campaign persuaded the U.S. Conference of Mayors to pass resolution asking HUD to change its policy.
Last September, community activists and local elected officials from around the country converged in Washington, D.C. to bring the cause directly to federal officials. After a rally at which Senator Warren and Congressman Michael Capuano (D-Mass) demanded that HUD curb its mortgage sales to Wall Street investors, the activists met with senior officials at HUD and the Federal Housing Finance Agency, which oversees the mortgage giants Fannie Mae and Freddie Mac. A few weeks later, the New York Times published an editorial, “Foreclosure Abuses, Revisited,” calling on HUD to suspend its sales of distressed mortgages until federal agencies adopt significant reforms.
By March of this year, the campaign had built enough momentum to get 45 members of Congress to send a letter to HUD and FHFA in support of the campaign’s demands.
In April, Rep. Raul Grijalva (D-Arizona) wrote to Castro - by then on many lists of potential vice presidential candidates - criticizing HUD for worsening the housing crisis with its favorable treatment of Wall Street investors and urging him to “end to the days of casino-level gambling with other peoples’ livelihoods.” That same month, the campaign sent Castro a petition with over 100,000 signatures, demanding that he change HUD’s policies on disposing troubled mortgages.
Along with the changing political climate and Castro’s ambitions, the community organizing groups’ persistence paid off.
With more homes in the hands of non-profits instead of Wall Street speculators, communities will gain further control over their neighborhoods and be less at the mercy of Wall Street. Community groups now plan to work city by city, and state by state, to make sure that HUD sells delinquent mortgage pools to mission-driven purchasers, and to continue the fight for housing justice and community control to strengthen and protect neighborhoods across the country.
By PETER DREIER
Source
Amendment critics need to move beyond partisan spin
The N.C. Republican Party has endorsed all six amendments. The Democratic Party opposes all six. Cawley delivered his remarks during a news conference organized in connection with two left-of-...
The N.C. Republican Party has endorsed all six amendments. The Democratic Party opposes all six. Cawley delivered his remarks during a news conference organized in connection with two left-of-center groups: Local Progress and Common Cause. One can guess which side those groups have chosen in the amendment debate.
Read the full article here.
Lange, unregelmäßige Arbeitszeit: Starbucks weiter in der Kritik
Die Kritik vieler Mitarbeiter an den Arbeitsbedingungen bei der Kaffeehauskette Starbucks hat für einen neuen Begriff im Wortschatz vieler US-Amerikaner gesorgt: "Clopening". Für viele...
Die Kritik vieler Mitarbeiter an den Arbeitsbedingungen bei der Kaffeehauskette Starbucks hat für einen neuen Begriff im Wortschatz vieler US-Amerikaner gesorgt: "Clopening". Für viele Mitarbeiter ist das späte Schließen und das morgendliche Öffnen der Filialen durch ein und dieselbe Person eine hohe Belastung. Im vergangenen Jahr gelobte Starbucks Besserung, nachdem die "New York Times" ausführlich über Praktiken wie das "Clopening" berichtet hatte. Die Kritik richtete sich gegen die unregelmäßigen und zum Teil überlangen Arbeitszeiten, die den Mitarbeitern nur sehr kurzfristig mitgeteilt würden.
Hat sich seither etwas gebessert? Nein, schreibt die NGO Center for Popular Democracy in einer ausführlichen Analyse. Zuvor wurden Mitarbeiter befragt. Diese bemängeln nicht nur die weiterhin vorkommenden "Clopenings", sondern auch die Schwierigkeit, bei Krankheit Ersatz zu finden – ein Mitarbeiter bezeichnet es als anstrengender, selbst so lange durchzutelefonieren, bis er einen Springer gefunden hat, als einfach selbst krank zur Arbeit zu gehen. Problematisch sei auch die chronische Unterbesetzung der Filialen, die sich wiederum auf die Arbeitszeit auswirke.
Missstände auch in Europa
Starbucks ist nicht die einzige Kette, die ihren Mitarbeitern einiges abverlangt. Die Kritik findet in den USA deswegen so großes Echo, weil Starbucks seine Mitarbeiter als "Partner" bezeichnet und die Philosophie verfolgt, "den menschlichen Geist zu inspirieren und zu nähren". Es ist nicht das erste Mal, dass die sozial und umweltbewusst wirkende Unternehmensphilosophie (Fairtrade, Aktionen gegen Rassismus, bezahlte Ausbildung, Krankenversicherung) auf die Kaffeehauskette zurückfällt.
Beschwerden gab es in den vergangenen Jahren einige – auch außerhalb der USA. 2010 schleuste sich ein ZDF-Reporter in eine Starbucks-Filiale auf dem Frankfurter Flughafen ein und wurde Zeuge eines harten Arbeitsalltags: Abmahnungen gebe es teilweise wegen falscher Sockenfarbe, fiebrige Mitarbeiter durften nicht nach Hause gehen.
Dass sich bei Arbeitszeit und Dienstplänen nichts zum Positiven geändert hat, sieht man in der Führungsebene von Starbucks naturgemäß anders: "Wir sind die Ersten, die zugeben, dass wir viel Arbeit vor uns haben", sagte Unternehmenssprecherin Jaime Riley der "New York Times". Alle Angestellten würden ihre Dienstpläne mittlerweile mindestens zehn Tage im Voraus bekommen. In alle Filialen durchgedrungen sei diese Praxis aber noch nicht, heißt es in der Analyse des Center for Popular Democracy. (lhag, 25.9.2015)
Untersuchung des Center for Popular Democracy zu Dienstplänen
"New York Times"-Enthüllungen 2014
"New York Times"-Status-quo-Bericht 2015
Kooperation zwischen Starbucks und der Arizona State University
Source: derStandard.at
Gary Cohn publicly criticizes Trump's Charlottesville response and reportedly came close to resigning over it
Gary Cohn publicly criticizes Trump's Charlottesville response and reportedly came close to resigning over it
Top White House economic advisor Gary Cohn publicly criticized President Trump’s response to the violence in Charlottesville, Va., and reportedly came close to resigning over it.
In his...
Top White House economic advisor Gary Cohn publicly criticized President Trump’s response to the violence in Charlottesville, Va., and reportedly came close to resigning over it.
In his first public comments on the matter, Cohn told the Financial Times in an interview published Friday that the Trump administration “can and must do better in consistently and unequivocally condemning” white supremacists, neo-Nazis and the Ku Klux Klan.
Read the full article here.
Minnesota pension board looks at private equity strategy
Minnesota pension board looks at private equity strategy
Toys R Us has not fared well in recent years. And critics, led by New York’s populist-leaning Center for Popular Democracy, accused the huge equity-investment firms of making hundreds of millions...
Toys R Us has not fared well in recent years. And critics, led by New York’s populist-leaning Center for Popular Democracy, accused the huge equity-investment firms of making hundreds of millions in fees and dividends on the failed retailer over the years.
Read the full article here.
The Refugees in New York’s Hotel Rooms
On Sept. 20, Hurricane Maria hit Puerto Rico, turning my life upside down. At the time, my two daughters and I were living in Carolina, a town on the northeastern side of the island. In just a day...
On Sept. 20, Hurricane Maria hit Puerto Rico, turning my life upside down. At the time, my two daughters and I were living in Carolina, a town on the northeastern side of the island. In just a day, my clothes were turned to rags, my home was destroyed, and I lost the few belongings I had.
My mother lived in the same town but her house was still standing. For two months, we slept on a couch in her living room. But we couldn’t stay there forever. In December, the Federal Emergency Management Agency moved us to New York City. Since then, we’ve been staying in hotels provided by FEMA in the Bronx and Brooklyn, like hundreds of other families who were moved to New York after the storm. Read more here.
Los trabajadores latinos quieren que la Fed les oiga
Lo cierto es que pese a la mejora económica la tasa de desempleo de latinos (6.8%) y negros (9.1%) es más elevada que la de los blancos (4.6%) y asiáticos (4%) y muchos de ellos trabajan por...
Lo cierto es que pese a la mejora económica la tasa de desempleo de latinos (6.8%) y negros (9.1%) es más elevada que la de los blancos (4.6%) y asiáticos (4%) y muchos de ellos trabajan por sueldos muy bajos. Muchos de ellos, como Rubio no sienten la recuperación. “Yo paso por los bares y los veo llenos incluso los lunes pero no todos podemos hacer eso, yo no”, explica.
Su inquietud por los más desfavorecidos le ha llevado a integrarse en la asociación comunitaria Make the Road para ayudar a los trabajadores, muchos de ellos latinos, de forma diferente a como lo hacía en su país. Desde hoy está en Jackson Hole, Wyoming, donde se reunen economistas de todo el mundo y representantes de bancos centrales para hablar de política monetaria. Rubio forma parte de un grupo de trabajadores y asociaciones de base de todo el país, en las que hay representación latina, que quieren convencer a la Reserva Federal de que no suba las tasas de interés. Su argumento es que si se quedan bajas como ahora “ayudarán a mejorar las condiciones laborales y crear más empleo”.
Rubio dice que la recuperación no ha llegado a los trabajadores como ella y que por eso no es momento de empezar a subir unas tasas que reconoce que están históricamente bajas(0%-0.25% desde diciembre de 2008) para estimular el crecimiento durante la reciente Gran Recesión.
“Lo que decide la Fed nos atañe a todos”, explica con convicción Rubio antes de hablar de la fuerte desigualdad laboral que hay y el hecho de que apenas hay inflación, motivo por el que no debería haber prisa por subir tasas o como dicen los economistas, normalizarlas. El programa de Jackson Hole y la lista de asistentes se hace público por el organizador de este encuentro anual, la Reserva Federal de Kansas City, hoy mismo pero ya se sabe que la presidenta de la Fed, Janet Yellen, no va a asistir. Rubio espera estar en algunas reuniones con parte de los asistentes.
“Uno piensa que no les van a ver pero ha veces que hay que pedir y abrir un caminito”, dice.
De hecho, Rubio, junto con otros trabajadores y activistas, ya se reunió este mismo mes con el presidente de la Reserva Federal de Nueva York, William Dudley. Según esta hondureña les dio la razón cuando se planteó la existencia de una desigualdad laboral y que no hay empleo para todos. Dudley dijo que dada la situación económica fuera de las fronteras la necesidad de subir las tasas es ahora “menos imperiosa”.
Ady Barkan, abogado del Centro de Democracia Popular que está impulsando la campaña “Fed Up” y estas peticiones ante la Reserva, explica que es necesario que las autoridades monetarias “presten atención a los trabajadores”.
“La economía no se ha recuperado, hay mucho desempleo entre negros y latinos, subempleo, baja participación en el mercado laboral y apenas hay subidas de salarios”, resume Barkan. Este abogado cree que la economía necesita tasas bajas para que las empresas sigan invirtiendo de forma barata y que haya préstamos asequibles que reactiven el consumo de todos.
Lo cierto es que las empresas tienen cash y algunos tipos de préstamos como los hipotecarios no han remontado lo esperado. “No obstante, si las tasas suben la situación será peor”, explica Barkan, “porque las empresas tendrán más motivos para quedarse sentadas en sus montañas de cash si tienen rendimiento de ellas y por que para invertir necesitan una inflación que no hay, ni habrá si suben tasas”.
“La economía tiene que calentarse un poco más”, dice. Barkan admite que las tasas bajas no son suficientes y que sería bueno que el Congreso hiciera algo además de subir el salario mínimo.
Representantes de la campaña de Fed Up ya se han reunido con Yellen y presidentes de otras reservas como la de Kansas, San Francisco y Atlanta entre otras, miembros de la Federal.
Dean Baker co director del Center for Economic and Policy Research de Washington publicaba recientemente que la subida “reducirá ingresos y oportunidades para quienes menos tienen”, una posición que también comparte el nobel de economía, Joseph Stiglitz.
¿Cuál es la misión de la Reserva Federal?
La Reserva Federal o Fed es uno de los reguladores de la banca y la autoridad que tiene en sus manos la política monetaria, es decir, regula la cantidad de dinero en circulación. ¿Su misión? Asegurarse de que se creen las condiciones de crédito y monetarias para conseguir el máximo empleo, precios estables (ni inflación ni deflación) y tasas de interés a largo plazo moderadas.
¿Cómo funcionan las tasas?
La Reserva Federal sube las tasas de interés a corto plazo, el dinero que se prestan los bancos entre sí, para retirar dinero del mercado y evitar las subidas de precios o inflación. Cuando las baja es porque los precios están bajos y falla el consumo. Al bajarlas se pone más dinero en circulación lo que, en teoría, animando la economía. Estas tasas a corto terminan reflejándose en las de largo plazo que son las que se usan en hipotecas y otros préstamos que se usan para comprar e invertir. Cuanto más se invierte y más crece la economía más y mejor trabajo se crea.
Source: La Raza
Mpls. City Council members urge JPMorgan Chase to cut Trump ties
Mpls. City Council members urge JPMorgan Chase to cut Trump ties
The three council members also want the corporation to divest from private prisons and immigration detention centers.
...
The three council members also want the corporation to divest from private prisons and immigration detention centers.
Read the full article here.
CORRUPT CONGRESSMEN DEMAND DIVERSITY FROM FEDERAL RESERVE
CORRUPT CONGRESSMEN DEMAND DIVERSITY FROM FEDERAL RESERVE
Do you know what our divided and divisive political system needs? More tribalism.
And who would know that better than Cherokee Senator Elizabeth Warren who has a letter out complaining that...
Do you know what our divided and divisive political system needs? More tribalism.
And who would know that better than Cherokee Senator Elizabeth Warren who has a letter out complaining that there are too many white men on the board of the Federal Reserve. The letter is co-signed by the usual clown show of the Congressional Black Caucus and the Progressive Caucus.
The first signature belongs to John Conyers whose wife pleaded guilty to a conspiracy to commit bribery. Also present are the likes of Maxine Waters and Frederica Wilson, Gwen Moore, former Nation of Islam supporter Keith Ellison, Bernie Sanders, Al Franken, Bernice Johnson and Alcee Hastings, who was impeached for bribery.
Bernice Johnson had her own ethical issues.
Longtime Dallas congresswoman Eddie Bernice Johnson has awarded thousands of dollars in college scholarships to four relatives and a top aide's two children since 2005, using foundation funds set aside for black lawmakers' causes. Eddie Bernice Johnson
The recipients were ineligible under anti-nepotism rules of the Congressional Black Caucus Foundation, which provided the money. And all of the awards violated a foundation requirement that scholarship winners live or study in a caucus member's district.
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And Maxine Waters? She's got a record.
The influential congresswoman has helped family members make more than $1 million through business ventures with companies and causes that she has helped, according to her hometown newspaper.
A few years ago Waters was investigated by the House Ethics Committee for steering $12 million in federal bailout funds to a failing Massachusetts bank (that subsequently got shut down by the government) in which she and her board member husband held shares.
Waters has also come under fire for skirting federal elections rules with a shady fundraising gimmick that allows her to receive unlimited amounts of donations from certain contributors. For years the veteran Los Angeles lawmaker has raked in hundreds of thousands of dollars in short periods of time by selling her endorsement to other politicians and political causes for as much as $45,000 a pop instead of raising most of her campaign funds from individuals and political action committees.
Then there's Alan Grayson who has his own hedge fund.
Rep. Alan Grayson manages hedge funds that use his name in their title, a practice prohibited by congressional ethics rules designed to prevent members from using their elected post for financial gain.
The specific ethics provisions tied to the funds Grayson manages, two of which are based in the Cayman Islands, sit in a sort of gray area and have never been examined by the House Ethics Committee.
Sure. Let's let these people dictate diversity at the Fed.
By Daniel Greenfield
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4 days ago
4 days ago