Why Recent Stock Volatility Shouldn’t Factor Into Interest-Rate Hikes
As a general principle, the Fed should not react to short-term movements in the financial markets. For one thing, the labor market is much more important to the lives of most Americans, and it is...
As a general principle, the Fed should not react to short-term movements in the financial markets. For one thing, the labor market is much more important to the lives of most Americans, and it is more relevant to the Fed’s mandate of securing maximum employment with inflation stability.
Then consider this: More than 80% of stock wealth in the U.S. is owned by the wealthiest 10% of Americans, and more than half of Americans own no stocks at all (either directly or through retirement or other accounts). In short, movements in the stock markets do not have much effect on the spending power of most U.S. households. That means that movements in the stock markets–especially short-term volatility that is likely to largely dissipate–provides little information about the overall state of economic health.
On the other hand, the labor market provides the vast majority of income to the vast majority of Americans. The middle fifth of households, for example, gets more than 80% of household income directly from the labor market (either cash wages or employer-provided benefits). Further, many additional sources of income such as pensions, Medicare, Social Security, unemployment insurance, or the Earned Income Tax Credit hinge on participation in the labor market. That’s why trends in the labor market are crucial to assessing the overall state of the economy–which is far from fully recovered from the Great Recession.
The clearest remaining weakness is wages. The current pace of hourly wage growth is roughly 2% to 2.5%. A healthy labor market that met the Fed’s overall price inflation target should be churning out wage increases of at least 3.5%. Further, a period of wage growth well above this is necessary for workers’ pay to reclaim some of the ground lost to corporate profits earlier in this recovery. Until wage growth starts moving durably toward the healthy 3.5% target, it’s too early for the Fed to begin raising rates.
This labor-market-based reasoning for keeping rates low should weigh much more heavily on Fed calculations about interest rates than recent stock activity. The only caveat: if one of the root causes of recent stock market declines–the slowdown in the Chinese economy–provides a new potential headwind to U.S. growth going forward.
But the case for keeping rates unchanged in September was dispositive last week, even before large declines in the stock markets. And any strong stock rally in the coming month shouldn’t make Fed officials feel fine about raising rates.
Source: Wall Street Journal
Echen a los codiciosos buitres residenciales
Para los estadounidenses y, en particular, las personas de color, la propiedad de vivienda es una fuerza económica estabilizadora y esencial desde hace tiempo. Ofrece la oportunidad de que las...
Para los estadounidenses y, en particular, las personas de color, la propiedad de vivienda es una fuerza económica estabilizadora y esencial desde hace tiempo. Ofrece la oportunidad de que las familias aumenten su seguridad económica en el trascurso de las décadas.
Por eso la crisis de ejecuciones hipotecarias fue tan difícil, en especial para los latinos y las personas de raza negra. Significó que su patrimonio, en ocasiones acumulado por varias generaciones, desapareció casi instantáneamente.
Ambos recordamos claramente las difíciles conversaciones que tuvimos con vecinos que pasaban apuros durante el caos. Aquí en Nueva York, como en todas partes, a pesar de que las personas de color no constituían la mayoría de los propietarios de vivienda, se veían afectadas por las ejecuciones hipotecarias con mayor frecuencia. Eso significó que al perder su patrimonio, más y más de ellos se fueron de la ciudad y nuestros vecindarios cambiaron.
Desafortunadamente, aún estamos viendo los efectos. Una purga lenta que se viene produciendo desde hace años a medida que la ciudad se aburguesa se ha facilitado por las ejecuciones hipotecarias y alquileres cada vez más altos, con los que más familias han dejado de ser propietarias para pasar a ser inquilinas. Muchas familias trabajadoras que han perdido su vivienda ahora además tienen dificultad para alquilar, debido al costo en aumento en el mercado.
Wall Street ha encontrado un socio inverosímil en estos desalojos: el Departamento de Vivienda y Desarrollo Urbano de Estados Unidos (HUD por su sigla en inglés). En todo el país, cientos de miles enfrentan ejecuciones hipotecarias. A pesar de la misión de HUD de “crear comunidades sólidas y sostenibles que incluyan a todos, con viviendas económicas y de calidad”, el departamento ha operado un programa que vende decenas de miles de hogares muy descontados a especuladores de Wall Street.
Cuando los fondos de especulación y firmas inversionistas privadas adquieren estos préstamos, por lo general fuerzan a los propietarios a dejar su vivienda —por medio de ejecuciones hipotecarias o ventas al descubierto (que no cubren las obligaciones hipotecarias) — y luego convierten las residencias en caras propiedades para alquilar, lo que hace que aumenten los precios en todo el vecindario.
En un extraño vuelco del destino, Blackstone Group, una de las más grandes firmas privadas de inversión en el mundo, ahora también es el mayor propietario de casas unifamiliares en alquiler en Estados Unidos. Entonces, Blackstone no solo está desalojando a familias de sus casas; también está sacando a familias trabajadoras de sus vecindarios.
Sin embargo, la práctica continúa. En tan solo los últimos seis meses, HUD ha vendido más de 7,000 préstamos a fondos de especulación y firmas privadas de inversión.
HUD ha programado otra venta masiva de hipotecas afectadas para el 18 de mayo.
HUD, dirigido por el secretario Julián Castro, debe revertir su curso antes de que sea demasiado tarde. Debe poner un alto a esta venta en subasta de viviendas a Wall Street. En vez, debe colaborar con el gobierno de la ciudad de Nueva York y partes interesadas en la comunidad para poner estos préstamos afectados en manos de entidades sin fines de lucro u otros compradores impulsados por una misión, quienes ayudarán a las familias a conservar sus casas.
No se trata simplemente de ilusas propuestas por liberales. Cada vez hay más instituciones financieras dedicadas al desarrollo comunitario que han conseguido capital y están listas y dispuestas a adquirir estos préstamos hipotecarios en mora y colaborar con familias en apuros.
Usan la reducción del monto principal debido para ayudar a modificar los préstamos afectados y hacer que los pagos sean más costeables. Cuando es realmente imposible evitar las ejecuciones hipotecarias, estas entidades sin fines de lucro formulan planes para la disposición de las propiedades que toman en cuenta las necesidades de vivienda económica de la comunidad que las rodea.
Estos préstamos hipotecarios en mora están vinculados con los propietarios y las viviendas en apuros en nuestros vecindarios. Vender nuestro inventario residencial a los propios depredadores que los pusieron en esta situación no solo demuestra poca visión de futuro, sino que daña nuestras comunidades irreparablemente.
Los especuladores de Wall Street se enriquecieron creando la crisis de vivienda que causó estragos en nuestras comunidades. No se debe permitir que vuelvan a enriquecerse aprovechándose de los restos de los vecindarios que ya han destrozado.
By Ana Maria Archila Y Jonathan Westin
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NATIONAL GROUPS CALL FOR DNC TO CAN SUPERDELEGATE SYSTEM
Fourteen national organizations boasting more than 10 million members are calling on the Democratic National Committee to end the use of superdelegates to elect the presidential nominee.
...
Fourteen national organizations boasting more than 10 million members are calling on the Democratic National Committee to end the use of superdelegates to elect the presidential nominee.
The move to end the use of superdelegates was pushed vigorously during the campaign by Sen. Bernie Sanders but many of those supporting the effort include backers of Hillary Clinton, the presumptive Democratic nominee.
DNC Rules Committee member and Rhode Island State Representative Aaron Regunberg has pledged to introduce language to end superdelegates, and several other Rules Committee members have agreed to support the effort at the Democratic National Convention at the end of July.
The organizations said in a joint letter that the superdelegates, who are typically party officials, are not elected by voters and can skew the nominating process. They say the superdelegates carry as much as the combined weight as pledged delegates from 24 states, the District of Columbia and four territories.
Organizations signing on to the letter include: Courage Campaign, Credo, Daily Kos, Demand Progress/Rootstrikers, Democracy for America, Center for Popular Democracy, MoveOn, National Nurses United, NDN, The Other 98%, Presente.org, Progressive Change Campaign Committee, Progressive Democrats of America, and Social Security Works.
Simon Rosenberg, the president of NDN and a former DNC staffer, who supported Hillary Clinton during the primary, said the use of superdelegates is “discordant with broader and vital efforts by Democrats to modernize and improve our democracy. If we want the voice of everyday people to be louder and more consequential in our nation’s politics, it must also be so in our Party.”
Another Clinton supporter, Joe Trippi, who ran Howard Dean’s unsuccessful presidential campaign in 2004, said a key party goal is to “empower voices from the bottom up. The top down idea of superdelegates is obsolete and is a good place to start.”
Sanders’ supporter Rep. Tulsi Gabbard, a superdelegate and former DNC official, also condemned the practice.
“The nominee of our party should be decided by who earns the most votes —not party insiders, unelected officials, or the federal lobbyists that have been given a vote in our nominating process. The current system stands against grassroots activists and the will of the voters,” she said. “We’ve seen a historic number of new voters and activists join our political process in the past year, many of whom are rightly upset at how rigged the political system can seem at times. If we want to strengthen our democracy and our party, we must end the superdelegate process.”
By MARK JOHNSON
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Charter Schools Gone Wild: Study Finds Widespread Fraud, Mismanagement and Waste
Bill Moyers - May 5, 2014, by Joshua Holland - Charter school operators want to have it both ways. When they’re answering critics of school privatization, they say charter schools are public —...
Bill Moyers - May 5, 2014, by Joshua Holland - Charter school operators want to have it both ways. When they’re answering critics of school privatization, they say charter schools are public — they use public funds and provide students with a tuition-free education. But when it comes to transparency, they insist they have the same rights to privacy as any other private enterprise.
But a report released Monday by Integrity in Education and the Center for Popular Democracy — two groups that oppose school privatization – presents evidence that inadequate oversight of the charter school industry hurts both kids and taxpayers.
Sabrina Joy Stevens, executive director of Integrity in Education, told BillMoyers.com, “Our report shows that over $100 million has been lost to fraud and abuse in the charter industry, because there is virtually no proactive oversight system in place to thwart unscrupulous or incompetent charter operators before they cheat the public.” The actual amount of fraud and abuse the report uncovered totaled $136 million, and that was just in the 15 states they studied.
Diane Ravitch on school privatization.
According to the study, fraud and mismanagement of charter schools fall into six categories:
Charter operators using public funds illegally — outright embezzlement
Using tax dollars to illegally support other, non-educational businesses
Mismanagement that put children in potential danger
Charters illegally taking public dollars for services they didn’t provide
Charter operators inflating their enrollment numbers to boost revenues
General mismanagement of public funds
The report looks at problems in each of the 15 states it covers, with dozens of case studies. In some instances, charter operators used tax dollars to prop up side businesses like restaurants and health food stores — even a failing apartment complex.
The report’s authors note that, “where there is little oversight, and lots of public dollars available, there are incentives for ethically challenged charter operators to charge for services that were never provided.” They cite the example of the Cato School of Reason Charter School in California, which, despite its libertarian name, collected millions of tax dollars by registering students who actually attended private schools in the area.
Perhaps the most troubling examples of mismanagement were those the report says actually put kids in danger:
Many of the cases involved charter schools neglecting to ensure a safe environment for their students. For example, Ohio’s State Superintendent of Public Instruction, Dr. Richard A. Ross, was forced to shut down two charter schools, The Talented Tenth Leadership Academy for Boys Charter School and The Talented Tenth Leadership Academy for Girls Charter School, because, according to Ross, “They did not ensure the safety of the students, they did not adequately feed the students, they did not accurately track the students and they were not educating the students well. It is unacceptable and intolerable that a sponsor and school would do such a poor job. It is an educational travesty.”
Integrity in Education and the Center for Popular Democracy aren’t the first to warn of problems plaguing an under-regulated industry fueled by billions of tax dollars. A 2010 report to Congress by the Department of Education’s Inspector General’s office warned of the agency’s “concern about vulnerabilities in the oversight of charter schools” in light of “a steady increase in the number of charter school complaints.” It blamed regulators’ failure “to provide adequate oversight needed to ensure that Federal funds [were] properly used and accounted for.”
Read the full report for the watchdogs’ recommendations for how policymakers could strengthen oversight and bring real transparency to the charter school industry.
Source
Texas Matters: Unemployment Still A Problem For Texas Minority Communities
Texas Public Radio - March 6, 2015, by David Martin Davies - The U.S. Labor Department reports that the latest national unemployment rate is 5-point-5 percent. That’s good news for the economy...
Texas Public Radio - March 6, 2015, by David Martin Davies - The U.S. Labor Department reports that the latest national unemployment rate is 5-point-5 percent. That’s good news for the economy overall and the sluggish recovery. But if you are still one of those without a job then the unemployment rate is 100%. But for minority communities the recovery has yet to arrive. A coalition of community and labor groups in Texas is calling for the Federal Reserve to focus on full employment and higher wages for blacks, Latinos, native peoples and others in poor neighborhoods who have been left out of the recovery. Connie Razza is the Director of Strategic Research at the Center for Popular Democracy.
Listen to the clip here.
'Welcome to Florida!'
“The Hispanic Federation, a group that outraised most of the other groups for Puerto Rico relief efforts, called a meeting in October in New York, which led to the creation of Power For Puerto...
“The Hispanic Federation, a group that outraised most of the other groups for Puerto Rico relief efforts, called a meeting in October in New York, which led to the creation of Power For Puerto Rico, a coalition that includes longtime Latino civil rights organization Unidos.us, Make the Road, the Center for Popular Democracy, and Hedgeclippers (an organization focused on exposing the connections between Wall Street and Puerto Rico’s debt crisis).”
Read the full article here.
The latest fight for employee rights: work schedule predictability
The latest fight for employee rights: work schedule predictability
Efforts to boost the minimum wage have gotten a lot of attention lately and proponents have scored some major victories. But workers rights advocates are now asking: What good is a wage boost if...
Efforts to boost the minimum wage have gotten a lot of attention lately and proponents have scored some major victories. But workers rights advocates are now asking: What good is a wage boost if workers don’t know how many hours they’re working every week?
Read the full article here.
Zara exposed for chronic racial profiling
If you’re a huge fan of shopping at Zara, the Spanish fast-fashion franchise, you may want to start spending your money elsewhere.
The fashion...
If you’re a huge fan of shopping at Zara, the Spanish fast-fashion franchise, you may want to start spending your money elsewhere.
The fashion brand has been outed for its deeply engrained racist hiring and customer service practices in arecent survey conducted by the Center for Popular Democracy, a racial, economic and labor justice group. A random sample of two hundred-fifty one out of Zara’s 1,500 Manhattan employees participated in the survey and confided that Black customers are profiled as potential thieves seven times more frequently than white shoppers.
The study, entitled “Stitched with Prejudice: Zara USA’s Corporate Culture of Favoritism” and written by Chaya Crowder, also revealed that Black customers were also more frequently denied exchanges and returns than Whites. Customers weren’t the only people that were racially discriminated in Zara’s stores. Black employees claimed that they were given dissatisfactory hour assignments and stricter surveillance from managers.
“It’s kind of weird to me how they can make millions of dollars but are not able to pay people properly for their time, let alone give people the amount of time that they need in order to support their family, in order to keep a roof over their head, in order to, you know, just feed themselves.” One employee said:
The study had also found that darker-skinned employees were also less likely to promoted to managing roles and were often given less-prestigious roles. Sixty-eight percent of employees that were assigned roles in the back of the store and away from the public had darker complexions. Managers were generally White, and generally gave preferential treatment or were less lenient to subordinates of the same races and ethnic groups. The extent to which Black employees were profiled in their own work environment were sometimes highly disturbing, as portrayed in this incident:
“[O]ne Black employee even detailed an instance in which he had come in a hooded jacket to pick up his check. A sales associate not only identified him as a special order, but he was physically stopped as he was walking into the back office, where checks are kept.”
The study’s findings are not particularly surprising, given Zara’s history of being infamous for racial bias in the brand’s various operations. Just earlier this month, the franchised was served with a $40 million lawsuit from a former worker citing discrimination, unlawful discharge, retaliation and a hostile work environment. The brand also received bad press last year for racist images on its merchandise: pajamas featuring swastikas, a necklace with blackface designs, shirts with gold stars resembling those worn by the Jewish people once held in concentration camps in the Holocaust and a shirt with the words printed saying, “White is the New Black.”
According to Forbes, Zara featured the following statement:
“Zara USA vehemently refutes the findings of the Center for Popular Democracy report which was published without any attempt to contact the company. The baseless report was prepared with ulterior motives and not because of any actual discrimination or mistreatment. It makes assertions that cannot be supported and do not reflect Zara’s diverse workforce.
“Zara USA believes that the report is completely inconsistent with the company’s true culture and the experiences of the over 1,500 Zara employees in New York City. We are an equal opportunity employer, and if there are individuals who are not satisfied with any aspect of their employment, we have multiple avenues for them to raise issues that we would immediately investigate and address.
“Approximately half of all Zara USA employees are Hispanic or African American. In the most recent round of internal promotions at Zara USA, approximately half were Hispanic or African American employees. In addition, approximately half of all hours are regularly allocated to Hispanic or African American employees. These facts clearly demonstrate that diversity and equal opportunity are two of the company’s core values. We are a global multicultural company serving valued customers across 88 countries, and do not tolerate discrimination of any form.”
Welp. I know Zara won’t be seeing my money again anytime soon. It’s a shame, their pencil skirts fit me in all the right places…
Source: New Pittsburgh Courier
Starbucks Workers Confront Executives To Demand Scheduling Reform
03.23.2016
SEATTLE –Starbucks workers staged a protest at the company’s annual shareholder meeting today to call for better scheduling practices, a day after...
03.23.2016
SEATTLE –Starbucks workers staged a protest at the company’s annual shareholder meeting today to call for better scheduling practices, a day after the Seattle City Council held a study session on proposals that would require employers like Starbucks to raise standards for work hours. Starbucks baristas at the protest were members of Working Washington, a statewide workers’ organization that has led the fight for secure scheduling at the company and in the City Council. As part of the demonstration, baristas called attention to a national petition signed by more than 20,000 supporters calling on Starbucks to end clopenings and provide 11 hours of rest between shifts.
Scheduling problems at Starbucks were unveiled in a 2014 New York Times feature, which found employees were often given notice about their shift just hours in advance and often forced to both close a store and open just hours later – a practice known as “clopening.” Though the company vowed to introduce reforms in response, a report from the Center for Popular Democracy’s Fair Workweek Initiative a year later found many workers were still struggling with erratic hours. Starbucks workers in Seattle have continued protests across the country from Seattle to Atlanta to Connecticut and have delivered a letter to the company calling for a meeting.
With no meaningful changes in sight, workers have taken their case to the Seattle City Council, which is currently considering legislation that may include provisions to ensure flexibility and advance notice, adequate rest between shifts, on-call pay and access to hours for part-time workers. Recent polling found overwhelming support for such policies. Similar protections are already on the books in San Francisco and Santa Clara County, and are being considered by a growing number of cities and states around the country, including Washington, DC, San Jose, Maryland, Massachusetts and Minnesota.
Darrion Sjoquist, a barista at Starbucks, released the following statement:
“Even after asking for changes again and again, workers at Starbucks still face constant uncertainty about something as simple as when they need to come in to work. Unpredictable schedules are harmful to workers, and make it incredibly hard for people like me to plan our lives. We can’t wait any longer for real change to come.”
Leila Kopcic, a barista at Starbucks, also released a statement:
“It’s really hard to live your life when your priorities are, ‘what’s my schedule? How many hours am I getting?’ Basically you get off at 7:30, go home, get ready for bed, wake up at 4 AM and go to work. It’s not enough time to rest and recharge yourself. I have to skimp on groceries. Sometimes skip meals. Just to be able to live where I want to live and afford that. A lot of people have it worse than me and I just want to make a difference for everyone.”
Carrie Gleason, Director of the Fair Workweek Initiative, also released a statement:
“Starbucks baristas have put the national spotlight on the crisis hourly workers face in their workweeks. Starbucks would not let its customers wait endlessly for a latte, and it should not let its employees wait a day longer to meet with them to find a long-term solution for better hours.”
Sejal Parikh, Executive Director of Working Washington, also released a statement: “This is a venti-sized problem that deserves immediate attention from corporate executives. For more than a year, Starbucks workers have been demanding schedules that let them actually plan their lives. We will continue to push for change in local laws and corporate policy until every Starbucks barista has a schedule that respects that their time counts.”
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www.populardemocracy.org
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 www.fairworkweek.org The Fair Workweek Initiative, anchored by the Center for Popular Democracy and CPD Action, is driving the growing momentum to restore a workweek that enables working families to thrive.
www.workingwa.org
Working Washington is a statewide workers’ organization that fights to raise wages, improve labor standards, and change the conversation about wealth, inequality, and the value of work.
Contact: Asya Pikovsky, apikovsky@populardemocracy.org, 207-522-2442 Anita Jain, ajain@populardemocracy.org, 347-636-9761
No indictment in Eric Garner police killing
Reports indicate that a grand jury has decided not to indict NYPD Officer Daniel Pantaleo in the death of Eric Garner, an unarmed Black man. Garner died in July in Staten Island of neck...
Reports indicate that a grand jury has decided not to indict NYPD Officer Daniel Pantaleo in the death of Eric Garner, an unarmed Black man. Garner died in July in Staten Island of neck compression, combined with asphyxia as a result of a chokehold applied while police officers were arresting him for the suspected sale of untaxed cigarettes. The incident was captured on cellphone video by Ramsey Orta who was a bystander. Garner had broken up a fight when officers attempted to arrest him. Pantaleo put Garner on the ground by the use of force, which included the use of a headlock resulting in Garner’s death. The city’s medical examiner later ruled the death a homicide. The NYPD is banned from using chokeholds, however, chokeholds are not illegal.
At a press conference Wednesday night, the Rev. Al Sharpton and Garner's family spoke about the grand jury's decision. Sharpton announced plans for a national march in Washington, D.C. on December 13 to urge the U.S. Department of Justice to investigate the string of recent police killings of unarmed Blacks.
"We are dealing with a national crisis," he said. "We are not advocating violence, we are asking that police violence stop. Now you have a man chocked to death on videotape and says 11 times 'I can't breathe.'" Garner's wife, Esaw, said she did not accept the apology give by Pantaleo on Wednesday after the grand jury didn't indict him. She said she plans to move forward to get justice for her late husband.
"I'm determined to get justice for my husband," she said. "He should be here celebrating Christmas and Thanksgiving and he can't. My husband's death will not be in vain. As long as I have breath in my body I will fight the fight."
Several Black and Latino congressional members, including Gregory Meeks and Yvette Clark, held a press conference in Washington, D.C. after the grand jury's decision was announced. The legislatures called for the Justice Department to step into the case. The U.S. Department of Justice is going to investigate Garner's death, according to reports. U.S. Attorney General Eric Holder announced that a federal civil rights investigation would be opened in the case.
Mayor Bill de Blasio, Public Advocate Leticia James and several city council members held a press conference in Staten Island on Wednesday to address the issue. De Blasio said that frustration over the grand jury's decision is understandable. "It's a very emotional day for our city. It's a very painful day for so many New Yorkers," he said. "We're grieving – again – over the loss of Eric Garner, who was a father, a husband, a good man – who should be with us."
The decision in the Garner killing by a grand jury comes just over a week after a grand jury in Ferguson, Mo. decided to not indict Officer Darren Wilson for the shooting death of Michael Brown. Peaceful demonstrations along with rioting followed the announcement of that decision. Police Commissioner Bill Bratton met with several elected officials in Staten Island before the decision was announced anticipating the reaction to the decision. Demonstrations were being announced via social media on Wednesday and took place Times Square, Grand Central and Union Square. A gathering was also planned for the nationally televised Rockefeller Center Christmas tree lighting set to take place in the evening.
Several groups including Communities United for Police Reform Justice Committee, Make the Road NY, VOCAL-NY, Center for Popular Democracy, Color of Change, Million Hoodies and Freedom Side announced they are organizing demonstration.
Source: Amsterdam News
6 days ago
6 days ago