Is 'Audit the Fed' going mainstream?
Auditing the Federal Reserve, a financial reform long pushed by the libertarian right, just got a boost this week from an unexpected quarter: A respected Dartmouth economist who issued a new...
Auditing the Federal Reserve, a financial reform long pushed by the libertarian right, just got a boost this week from an unexpected quarter: A respected Dartmouth economist who issued a new proposal to impose transparency and oversight on the nation’s powerful central bank.
Though largely dismissed by mainstream economists, “Audit the Fed” has become an applause line for central banking skeptics like Sen. Rand Paul, who believe the Federal Reserve wields too much power too secretly. In recent years the idea has spread from right-wing politicians to the conservative mainstream, and even critics on the left: A Senate vote on Paul’s “Audit the Fed” legislation in January garnered 53 votes. Sen. Bernie Sanders (I-Vt.) voted for that bill and has pushed for increased transparency at the Fed to the delight of campaign crowds suspicious that the central bank is rigged in favor of Wall Street.
This week, the Fed Up campaign, a 30-month-old group of labor and community organizations pushing for more openness at the Fed, released its own platform for reforming the Fed’s governance structure, including a new idea for an audit—or "annual review"—that could give the idea more mainstream credibility.
The author is Andrew Levin, an economist now at Dartmouth College who has decades of experience at the Fed and a reputation as a thoughtful observer of the institution. While most financial insiders have long dismissed “Audit the Fed” as an unserious political slogan from people unversed in economics, Levin’s proposal has provoked a more serious reckoning with Fed transparency. And increasingly, economists are coming to the same conclusion: More sunlight might do the central bank some good.
“The Fed is overly sensitive about reviewing its policies,” said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics who has worked at the Fed off-and-on for the past 30 years.
At issue is whether decisions made by the top officials of the Fed should be open to review by the Government Accountability Office (GAO). Technically speaking, the Fed is already audited – it’s subject to the same GAO scrutiny of its operations as any other federal agency. But its most influential decisions, deliberations on monetary policy that attract global attention and can move stock markets dramatically, are conducted in secret by a dozen top Fed officials. Seven of them, known as Fed governors and based in Washington, are nominated by the president and confirmed by the Senate. The remaining five spots are reserved for the presidents of the 12 regional Fed banks on a rotating basis. Collectively known as the Federal Open Market Committee (FOMC), the group generally meets eight times a year, with minutes released three weeks afterwards. Transcripts of those meetings are released on a five-year lag, effectively sealing its deliberations in the short-term.
Because banks ultimately own the regional Fed banks, and have a say in nominating many of their directors, critics say this structure leaves the door open for favoritism to Wall Street, and needs outside scrutiny to ensure it properly balances its dual mandate of stable inflation and full employment. Supporters say the Fed's relative independence is a virtue, and worry its monetary decisions would be worse in the long run if its officials constantly felt Congress breathing down their necks.
The more traditional right-wing “Audit the Fed” legislation would call for a GAO audit of the Fed within 12 months of passage, and thereafter enable any lawmaker or congressional committee to request an audit of the central bank, including the FOMC’s monetary policy decisions, whenever they wanted.
In his new plan, Levin proposes something slightly different: it would require the GAO to conduct a review of all aspects of the Fed, including monetary policy, but make the review annual and determined by GAO staff rather than Congress. “[Paul’s legislation] just seemed like a way to threaten the Fed,” said Levin.
His proposal would also call for seven-year term limits for Fed officials and reform the process that the regional Fed bank presidents are selected. Though he recoiled against terming the GAO review an “audit,” his proposal would give the GAO new powers to examine different aspects of the Fed, as it does with other agencies in the federal government. Instead of called by Congress, it would be annual and determined by agency staff. “From one year to the next, it might focus on some aspects of the Fed's operations. One year, maybe it would focus on monetary policy strategy and communications,” Levin said. “Another year, maybe it wouldn't spend much time on that.” The results would be publicly available.
Narayana Kocherlakota, the former president of the Minneapolis Federal Reserve, expressed support for the idea of regularly scheduled GAO audits of the Fed’s monetary policy. He didn't take a position on earlier audit proposals, but echoed Levin’s concern that allowing lawmakers to request a GAO audit “would be very bad and would lead us down a bad path where essentially Congress was running monetary policy.”
The Federal Reserve declined to comment on Levin’s plan. But Fed Chair Janet Yellen and other Fed officials have aggressively attacked prior proposals to increase oversight over the FOMC’s deliberations. In January, before the Senate voted on Paul’s legislation, Yellen sent a letter to Majority Leader Mitch McConnell and Minority Leader Harry Reid opposing the bill. “These reviews could only serve to create public doubt about the conduct and independence of monetary policy,” she wrote.
“All of that criticism does apply to my proposal,” Levin said after reading those lines from Yellen’s letter. But he argued that such oversight is necessary in a democracy. He added, “After all, the Congress is the Fed’s boss.”
Levin enters this debate with considerable experience. He spent two decades as an economist for the Fed and then was a special adviser to then-Chairman Ben Bernanke and then-Vice Chair Yellen from 2010 to 2012. He also advised many other central banks, including the European Central Bank, the Bank of Canada and the Bank of Japan. Those policy bona fides mean he’s being taken seriously even by people who have dismissed previous “Audit the Fed” proposals.
“Levin knows a lot about the internal workings [of the Fed] that I don’t,” said Jared Bernstein, the former top economist to Vice President Joe Biden and a frequent critic of “Audit the Fed” proposals. “He’s not coming at this from the perspective of some radical protester.”
The underlying question is whether an annual review by GAO—not one triggered by individual lawmakers or committees—will cause the Fed to be influenced by politics in its monetary policy decisions. To some extent, that already happens. The Fed, like every institution, faces criticism from an array of politicians, outside economists, and pundits. “Independence is not as black and white as many people make it seem,” said Kocherlakota.
Finding the right balance between giving the Fed room to make independent policy and holding it accountable is a constant challenge—one that extends beyond “Audit the Fed" proposals. Sanders, for instance, has proposed that FOMC transcripts be released within six months, instead of the current five years.
Few serious Fed watchers, however, have spent much time developing detailed ideas for increased Fed transparency. “I felt like there was a vacuum in the discourse,” Levin explained.
Levin’s reforms are unlikely to become law anytime soon: Lobbying efforts around such a change would be fierce, and groups like the Fed Up campaign are likely to be heavily out-spent by Wall Street banks skeptical of changes intended to reduce their influence over Fed decisions. The Federal Reserve would likely oppose the reforms as well.
By DANNY VINIK
Source
Aboard flight, dad battling ALS pleads with Sen. Jeff Flake to vote no on tax bill
Aboard flight, dad battling ALS pleads with Sen. Jeff Flake to vote no on tax bill
A 33-year-old father battling ALS, also known as Lou Gehrig’s disease, was flying home last week after traveling to Washington, D.C., to protest the tax bill when he came face-to-face with one of...
A 33-year-old father battling ALS, also known as Lou Gehrig’s disease, was flying home last week after traveling to Washington, D.C., to protest the tax bill when he came face-to-face with one of the lawmakers he most hoped to influence.
Ady Barkan and others had spent a week trying to get lawmakers' attention and giving speeches outside their offices.
Read the full article here.
Appointment of Another Former Goldman Sachs Insider Shows Why Fed Presidential Appointment Process Needs Reform
Appointment of Another Former Goldman Sachs Insider Shows Why Fed Presidential Appointment Process Needs Reform
Jordan Haedtler, Campaign Manager for the Fed Up coalition, released the following statement following the Minneapolis Federal Reserve Bank’s announcement that it would appoint Neel Kashkari...
Jordan Haedtler, Campaign Manager for the Fed Up coalition, released the following statement following the Minneapolis Federal Reserve Bank’s announcement that it would appoint Neel Kashkari as its president:
“For the past year, the Fed Up coalition has worked to develop relationships with the presidents of all 12 regional Federal Reserve Banks, and we look forward to developing a relationship with Neel Kashkari. When he ran for California Governor last year, Mr. Kashkari spent a week posing as a jobseeker in some of the hardest hit parts of the state. We hope Mr. Kashkari recognizes that job prospects remain far too weak for too many people, particularly Black and Latino people, and that his brief experiences searching for jobs in California are the real, lived experience for millions of people every day. Our partners in Minneapolis look forward to welcoming Mr. Kashkari to the Minneapolis region, and showing him the many communities in the region that are still struggling with economic recovery.
"Mr. Kashkari joins a Federal Reserve System that too often excludes the perspectives of working families and communities of color. We are very disappointed that his appointment marks the third presidential appointment this year of a regional Bank president with strong ties to Goldman Sachs. Come January, 1/3rd of the 12 regional Bank presidents will have served in senior roles at the investment bank that most epitomizes the problems that led to the financial crisis.
"Kashkari’s appointment illustrates the problem with the regional Bank president selection process. Federal Reserve Bank presidents are some of the most influential economic policymakers in the country, and they have an obligation to represent the public. Unfortunately, the public is completely shut out of the process for their selection, which is dominated by corporate and financial elites.
"We were very pleased when the Minneapolis Fed took a small and unprecedented step toward transparency by outlining the criteria for their next president. We wish the Minneapolis Fed had gone a step further, publishing the list of candidates being considered, and giving the public an opportunity for input. A history of working with labor and community groups, and an understanding of how working families and communities of color have been impacted by a sluggish economic recovery should qualify candidates for consideration. But the presidential appointments we have seen this year suggest that regional Banks are looking for a history of working at Goldman Sachs instead.”
###
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.
At Urban Outfitters, On Call Needs An Off Switch
URBAN Outfitters, you're breaking my heart.
I'd loved you since I discovered your lone West Philly shop when I was in college. You'd just changed your name from the...
URBAN Outfitters, you're breaking my heart.
I'd loved you since I discovered your lone West Philly shop when I was in college. You'd just changed your name from the Free People Store, and your countercultural merchandise spoke to my giddy dreams of a boho life. I was smitten the day I bought an Indian-print cotton bedspread from you to sew into curtains for my first-ever single-girl apartment.
"Where'd you get them?" friends would ask, eyeing my handiwork.
"Urban," I'd say, knowing the word had become code for "I may be broke, but at least I'm hip."
MORE COVERAGE
Urban Outfitters company asks employees to work for free
God, I was young.
Since then, you've become more successful than I have, morphing into a $1 billion global behemoth that also encompasses the brands Free People, Anthropologie, Bhldn and Terrain. Your clothes still skew to the young demographic I used to belong to, so I'd taken to scanning your racks for Christmas gifts for my clothes-horse teenager.
She got to wear your cute stuff and I got to maintain a touchstone relationship with a company that had put down roots in Philly, as I had, and never left. It made me happy.
Sure, your price tags indicated you'd gotten a tad full of yourself ($89 for a cotton/poly romper? Really?). And you'd stumbled embarrassingly in attempts to be edgy (a shirt evocative of the one the Nazis made gay concentration-camp prisoners wear? What were you thinking?).
Still, Urban, I'd cut you slack the way family cuts slack to kin. You've remained a player in a city that has lost too many homegrown businesses to either bankruptcy or foreign soil. That counts for a lot in my book.
You may not be perfect, I'd always told myself, but you're ours.
But Urban - oh, Urban. I've been learning about the way you treat your part-time employees, the young, mostly female staff who work in your retail stores. And I'm ashamed of you.
For years, you've subjected them to an enslaving scheduling system that betrays your "free people" roots. Basically, you give them their schedule only a few days in advance, with some shifts designated as "on call." But they don't know, until three hours before the shift is to begin, whether you need them to work that shift or not. If not, they don't get paid.
Yet they're required to hold that time for you, in case you do.
"On calls are considered scheduled shifts, and the same attendance policy applies," your employee handbook says.
All I can ask, Urban, is: What the hell? But your PR flacks didn't respond to my questions.
The use of "on-call" staffing is obviously necessary in medical and first-responder fields, where lives depend on workers being available when needed. Reasonable people know it's part of the gig. But using the same scheduling to ensure that a billion-dollar retailer doesn't "waste" money on excess workers during a slow day at the shop?
C'mon, Urban. It's horrible.
The unpredictability means employees can't schedule classes, if they're in school. Or go to a second job, so they can cobble together a full-time salary. Or reliably arrange child care or pay their bills, since their cost to do both remains fixed even though their working hours don't.
Their only compensation, if I read the handbook correctly, is that they get to keep their jobs so you can continue to exploit their need to make a living.
"It's pretty messed up," one of your employees told me when I asked her about the policy. I won't say which of your 179 U.S. stores employs her, since she needs her crappy job. She's toiling through college and doesn't know, week to week, what her paycheck will be. "It's hard to plan," she said.
She could get a job at a different store, but it seems you're not the only retail chain doing this.
Gap, Abercrombie & Fitch, and L Brand Inc.'s Victoria's Secret and Bath & Body Works are some of the other billion-dollar corporations whose on-call scheduling have wreaked havoc on their workers. The practice began about 10 years ago, says Carrie Gleason, as globalization increased retail competition and companies needed new ways to shave expenses.
"They started incorporating new technology into scheduling that used software algorithms" to track store traffic, the time of year, even weather patterns, says Gleason, director of the fair-work-week initiative at the Center for Popular Democracy.
But the predictions aren't perfect, so on-call staffing provides wiggle room to keep labor costs down. Retailers also tie store managers' bonuses to how low they keep labor costs.
How can you stand being part of this, Urban?
In April, New York state Attorney General Eric Schneiderman called companies like you on the carpet, following his investigation into the legality of on-call staffing at 13 retailers whose New York stores employ thousands of low-wage Americans.
As a result, big changes have happened.
Victoria's Secret and Bath & Body Works stopped the practice nationwide. Abercrombie and Gap say that nationally they, too, are phasing out on-call shifts.
But you, Urban, are dragging your feet. You'll stop the practice in New York, you announced this month, but everywhere else it'll be exploitation as usual.
Which means you're doing the right thing in New York only because New York law requires you to. As for everywhere else, it's human decency be damned.
"If Urban found a business model to let them stop on-call shifts in New York, they ought to be able to find a business model that will let them stop the shifts everywhere else," says Lance Haver, formerly the city's consumer advocate and now director of civic engagement for City Council.
"If they don't, then consumers can say we're not going to shop at their stores until they change their practice. We can refuse to support a store that abuses the people who wait on us."
Haver also thinks the only way to assure that businesses like you, Urban, treat employees better is for your workers to organize.
"People say there's no longer a reason for people to join unions," he says, "but that's because they don't know about these disgusting practices."
Lest you think, Urban, that all your employees are miffed with you, that's not the case. I spoke with one employee, a fan, who asked not to be named because she's hoping to work her way into your corporate headquarters at the Navy Yard. She sees her on-call schedule as a necessary evil, given the vagaries of the retail market.
"The company has to do right by its shareholders," she told me. "I think they're stuck between a rock and a hard place."
Except that your company founder and CEO, former hippie and current billionaire Richard Hayne, owns most of your stock.
He has the clout to end on-call staffing. That's not being between a rock and a hard place. It's holding the power position.
Please, Urban, return to your roots and free your people. And please start in Philly.
Because family comes first.
Source: Philly.com
Faltan traductores en viviendas públicas de NYC
El Diario - March 6, 2014, by Joaquín Botero, Juan Matossian, and Gloria Medina - El reciente caso del triple asesinato en Jamaica, Queens, pudo haberse evitado si la Policía hubiese traducido una...
El Diario - March 6, 2014, by Joaquín Botero, Juan Matossian, and Gloria Medina - El reciente caso del triple asesinato en Jamaica, Queens, pudo haberse evitado si la Policía hubiese traducido una denuncia que la víctima había escrito en español. El mismo ha puesto de relieve algunas de las lagunas de la legislación de la ciudad en esta materia.
A pesar de las reglamentaciones que obligan a todas las agencias públicas de Nueva York a brindar servicios gratuitos de traducción a personas con limitado o nulo conocimiento del inglés, todavía existen serias omisiones y dificultades de implementación que en algunos casos han llevado a resultados trágicos.
En 2008, el alcalde Michael Bloomberg firmó la orden ejecutiva 120, que exige a las oficinas municipales —incluida la Policía— proveer dichos servicios. En 2011, elgobernador Andrew Cuomo firmó la orden ejecutiva 26, que requiere traducir documentos públicos a varios idiomas. Estas normas cuentan con financiamiento local y federal.
"La ciudad ha hecho progresos, pero Bloomberg no se esforzó al cien por ciento. Esperamos que De Blasio presione más para la ejecución de estas leyes", dijo Andrew Friedman, codirector del Center for Popular Democracy y fundador de Make the Road, una de las organizaciones comunitarias que más ha luchado por este tema.
El alcalde Bill de Blasio empezó su mandato con el grave incidente del asesinato deDeisy García y sus dos pequeñas hijas, apuñaladas por Miguel Mejía, esposo y padre de las víctimas. La mujer había reportado amenazas de muerte y abusos físicos de su pareja, pero los oficiales del precinto 103 de registraron incorrectamente sus denuncias como "acoso" en lugar de "violencia doméstica". En consecuencia, Mejía no fue arrestado —ni siquiera se le contactó.
El abogado Roger Asman, quien representa a la madre y abuela de las víctimas, prepara una demanda contra la Policía. Asman posee dos reportes escritos en español por García, en mayo y noviembre del año pasado, en donde la desesperada mujer cuenta que sufrió jalones de pelo, empujones y amenazas de muerte contra ella y las niñas. EL DIARIO/LA PRENSA pudo leer uno de estos reportes en los que la mujer transcribe un intercambio con su excompañero que confirma lo anterior.
"No tradujeron el reporte, ni miraron los aspectos más importantes, ni le dieron la protección constitucional que le correspondía", dice Asmar.
El NYPD enfrenta además una demanda colectiva por siete casos similares.
La abogada Amy Taylor indicó que "el NYPD no tiene un sistema para asegurar que sus agentes hagan lo que deben. Y si tienen un reglamento, no lo están siguiendo".
El caso más reciente fue el de la dominicana Elena Jiménez (34), que llamó al 911, el 30 de enero, después de regresar del hospital con su hijo. Encontró que su esposo había cambiado la cerradura de la vivienda en Norwood, El Bronx. Aunque Jiménez tenía en la mano la orden de protección en contra de su esposo cuando los agentes del precinto 52 llegaron, fue a ella a la que le ordenaron sacar sus pertenencias en bolsas de basura.
"No sé qué les dijo mi esposo, pero me dieron cinco minutos para que sacara mis cosas", relató Jiménez quien llegó a la ciudad hace un año y no habla inglés.
En respuesta a estos casos, el Departamento de Policía se comprometió a corregir las falencias en el sistema, mientras que el comisionado William Bratton admitió que se había cometido un error. El NYPD cuenta con 1,200 intérpretes calificados que hablan más de 70 idiomas.
Casos en la vivienda
La Autoridad de Vivienda Pública (NYCHA) tiene la obligación de proveer personal y servicios de traducción para personas con inglés limitado. Residentes de tres grandes "projects" de El Bronx (Twin Parks West, Twin Parks East y Monterey), donde viven alrededor de mil hispanos, denuncian que dependen de la asistencia de personal que sólo habla inglés en la oficina de administración y reciben todas las notificaciones sin traducir.
La dominicana Gisela Concepción (62), una de ellas, recibió recientemente un importante aviso para actualizar su contrato de alquiler, pero no pudo acudir porque no estaba traducido y no entendía lo que le pedían.
"Necesito ayuda de mis vecinos para traducir todos los avisos que me mandan. Lo peor es que no puedo reportar cuando tengo un problema en mi apartamento porque en la oficina no me entienden", explicó.
NYCHA alega que su política es ofrecer siempre servicios lingüísticos gratis para los residentes que lo necesitan, y se asegurará de que los empleados de los "projects" mencionados se familiaricen con la misma.
“Tomamos todas las quejas de nuestros residentes muy seriamente, y nos aseguraremos de que nuestros empleados implementen nuestras directrices de acceso lingüístico adecuadamente”, declaró la agencia a través de un comunicado.
Por su parte, el concejal Ritchie Torres, que preside el Comité de Vivienda Pública, dice estar “muy preocupado” por las informaciones sobre la falta de personal para atender a inquilinos que no hablan inglés y promete tomar cartas en el asunto.
“Esto es una falta inexcusable de servicio a residentes de vivienda pública y me aseguraré de que NYCHA acometa el problema”, dijo Torres, quien ya ha ayudado a Concepción para que NYCHA le de una nueva cita.
Source
El Centro de Democracia Popular crea fondo para afectados por María
El Centro de Democracia Popular crea fondo para afectados por María
The Center for Popular Democracy established the Community Hurricane Relief and Recovery Community Fund to assist Puerto Rico's most vulnerable communities.Tania Rosario Méndez, executive director...
The Center for Popular Democracy established the Community Hurricane Relief and Recovery Community Fund to assist Puerto Rico's most vulnerable communities.Tania Rosario Méndez, executive director of Taller Salud and affiliated with the Center for Popular Democracy, said the fund will support organizations working on the ground with communities on the island, mainly low-income communities.
Read the full article here.
Sex assault survivor who confronted Jeff Flake speaks out
A sex assault survivor who confronted Sen. Jeff Flake inside an elevator Friday — after announcing he would vote in favor of Supreme Court nominee Brett Kavanaugh — said that the likely pivotal...
A sex assault survivor who confronted Sen. Jeff Flake inside an elevator Friday — after announcing he would vote in favor of Supreme Court nominee Brett Kavanaugh — said that the likely pivotal moment “was all kind of a blur.”
Read the full article here.
13 Retailers Questioned By N.Y. Attorney General About Worker Scheduling
LA Times - April 13, 2015, by Samantha Masunaga - he scheduling practices of 13 retailers, including Gap Inc., Target Corp. and Abercrombie & Fitch Co., are being scrutinized by New York Atty...
LA Times - April 13, 2015, by Samantha Masunaga - he scheduling practices of 13 retailers, including Gap Inc., Target Corp. and Abercrombie & Fitch Co., are being scrutinized by New York Atty. Gen. Eric T. Schneiderman.
In a letter sent to the retailers, the attorney general's office said it had received reports that a growing number of employers, particularly in the retail industry, were requiring hourly employees to work on-call shifts. The office said it had “reason to believe” the 13 retailers might be using this kind of scheduling.
A New York state law requires that employees who are asked to come into work must be paid for at least four hours atminimum wage or the number of hours in the regularly scheduled shift, whichever is less, even if the employee is sent home.
California has a similar law that says employees must be paid for half of their usual time — two to four hours — if they are required to come in to work but are not needed or work less than their normal schedule.
The letter was also sent to J. Crew Group Inc.; L Brands, which owns Victoria's Secret and Bath and Body Works; Burlington Stores Inc.; TJX Cos.; Urban Outfitters Inc.; Sears Holdings Corp.; Williams-Sonoma Inc.; Crocs Inc.; Ann Inc., which owns Ann Taylor; and J.C. Penney Co.
The letters ask the retailers for more information about how they schedule employees for work, including whether they use on-call shifts and computerized scheduling programs.
Rachel Deutsch, an attorney at the Center for Popular Democracy, a New York worker advocacy group, said on-call scheduling can make it difficult for workers to arrange child care or pick up a second job.
“These are folks that want to work,” she said. “They’re ready and willing to work, and some weeks they might get no pay at all even though they set aside 100% of their time to work.”
Danielle Lang, a Skadden fellow at Bet Tzedek Legal Services in Los Angeles, said the attorney general’s action could have repercussions in other states.
“The New York attorney general is a powerful force,” she said. “It’s certainly an issue that’s facing so many of our low-wage workers in California, and anything that puts a highlight on this practice and really pressures employers to think about these practices is a good thing.”
Sears, Target and Ann Inc. said in separate statements that they do not have on-call shifts for their workers. J.C. Penney said it has a policy against on-call scheduling.
TJX spokeswoman Doreen Thompson said in a statement that company management teams “work to develop schedules that serve the needs of both our associates and our company.”
Gap said in a statement that the company has been working on a project with the Center for WorkLife Law at UC Hastings College of the Law to examine workplace scheduling and productivity and will see the first set of data results in the fall.
“Gap Inc. is committed to establishing sustainable scheduling practices that will improve stability for our employees, while helping toeffectively manage our business,” spokeswoman Laura Wilkinson said.
The remaining companies did not respond immediately to requests for comment.
Source
Report on Paladino's Ties to Charter Schools
The Buffalo News - October 22, 2014, by Sandra Tan - As noted in today's story,...
The Buffalo News - October 22, 2014, by Sandra Tan - As noted in today's story, Carl Paladino has financial investments in six Buffalo charter schools, leading some to question whether he has a conflict of interest as a board member on votes he makes regarding charter schools. He has arranged the financing and leased the buildings that charter schools need to get off the ground and expand. Some charter school founders say they might not exist without his help. Today, Alliance for Quality Education -- a statewide coalition that supports resources and support for traditional public schools and opposes charter schools -- has released a report that refers to Paladino's charter school holdings.
The anti-Paladino report "Good for Kids or Good for Carl?" was released by Alliance for Quality Education and Citizen Action, with research assistance from The Center for Popular Democracy. The report, below, focuses on the lease payments and tax breaks Paladino's company, Ellicott Development, receives for its investments in charter schools. It culls much of its information from news stories and public information from the Erie County Industrial Development Agency, the Erie County Clerk's Office and other public records. The report, however, does not include any information regarding the debt service and front-end investments made by Paladino into these schools, which would relate directly to the company's profit margin.
More detailed information about Paladino's investments into each of his charter school holdings will be posted to the School Zone Blog separately, based on additional information Paladino provided Tuesday. (Some of that information is available as part of the graphic that ran with the main story. A print version of the graphic erroneously states that Paladino anticipates a 1 percent return on investment for the Charter School of Inquiry. That should read 11 percent.) We will also live blog tonight's Buffalo School Board meeting at 5:30 p.m. Prior to the meeting will be an anti-Paladino rally by AQE and Citizen Action.
Source
Janet Yellen To Jobless African-Americans: You're On Your Own
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed's concerns about inflation limit its ability to address high African-American...
Federal Reserve Chair Janet Yellen told members of the House of Representatives in a hearing on Wednesday that the Fed's concerns about inflation limit its ability to address high African-American unemployment.
“So, there really isn’t anything directly the Federal Reserve can do to affect the structure of unemployment across groups,” Yellen said during the House Financial Services Committee’s semiannual hearing on Federal Reserve policy. “And unfortunately, it’s long been the case that African-American unemployment rates tend to be higher than those on average in the nation as a whole.”
The African-American unemployment rate was 9.5 percent in June, nearly twice the rate of 5.3 percent in the population overall.
But Yellen said that the Fed’s ability to address this problem was limited by its commitment to keeping inflation under 2 percent.
Yellen’s remarks were in response to a question posed by Rep. Joyce Beatty (D-Ohio) as to whether the Fed was taking the high rate of African-American unemployment into account when assessing the health of the labor market. Beatty was one of several African-American committee members, including ranking member Rep. Maxine Waters (D-Calif.), who enjoined Yellen to consider the disproportionately high rate of African-American unemployment in deciding when to raise interest rates.
At the hearing, Yellen reaffirmed the Fed’s previous indications that it would raise interest rates before the year’s end. "If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate," Yellen said in her prepared testimony.
Maintaining price stability is one-half of the Fed’s dual mandate, together with maximizing employment. If the Fed prints more money, it spurs higher employment, ultimately putting upward pressure on prices. If it tightens the monetary supply, by raising interest rates, it keeps prices low, but also depresses employment.
Many progressive economists and activists fault the Fed for continuing to prioritize the inflation part of its dual mandate at the expense of full employment. It is a tendency they say disproportionately affects African-Americans, who already suffer from high unemployment and discrimination in the job market.
Jordan Haedtler, deputy campaign manager of the Center for Popular Democracy’s Fed Up campaign, which mobilizes communities of color for pro-employment Fed policy, said that Yellen’s Wednesday remarks are a reflection of this approach.
“It is indicative of the Fed’s continued emphasis on inflation even in the face of nonexistent inflation,” Haedtler said. “They are myopically focused on one portion of their dual mandate while ignoring another. If the Fed is saying that the economy is on enough of a positive trajectory to raise rates, they are saying they are OK with 9.5 percent black unemployment.”
The Fed Up campaign wants the Federal Reserve to wait for more significant wage growth before raising rates.
It is also encouraging regional Federal Reserve banks, along with Fannie Mae and Freddie Mac, to sell homes with delinquent mortgages to nonprofit organizations that are more likely to refurbish them. Currently, Fed Up claims, the homes often go to for-profit buyers who leave them in disrepair, limiting the economic recovery in many urban communities of color.
Source: Huffington Post
18 hours ago
3 days ago