Clinton offers fresh support for key progressive priorities
Over the course of the race for the Democratic presidential nomination, Hillary Clinton hasn’t had a whole lot to say about the Federal Reserve or monetary policy in general, which is why it was...
Over the course of the race for the Democratic presidential nomination, Hillary Clinton hasn’t had a whole lot to say about the Federal Reserve or monetary policy in general, which is why it was all the more interesting to see the Democratic frontrunner’s campaign yesterday endorse a change long sought by progressive activists. The Washington Post reported:
The Fed is led by a seven-member board of governors based in Washington and a dozen regional bank presidents based across the country, from New York to Kansas City to San Francisco. The governors are nominated by the White House and approved by the Senate, but regional bank presidents are selected by their boards of directors, whose occupants are chosen by the banking industry and by the Fed governors in Washington.
In a statement to The Washington Post, Clinton’s campaign said she supports removing bankers from the boards of directors and increasing diversity within the Fed.
In a written statement, a campaign spokesperson told the Post, “The Federal Reserve is a vital institution for our economy and the well-being of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That’s why Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms – like getting bankers off the boards of regional Federal Reserve banks – are long overdue.”
This brings Clinton in line with Bernie Sanders, who endorsed this policy late last year, saying he wants a system in which “the foxes would no longer guard the henhouse.”
The statement also came the same day Clinton wrote an op-ed for the Washington Informer, an African-American newspaper, vowing to be a “vocal champion” for D.C. statehood.
“In the case of our nation’s capital, we have an entire populace that is routinely denied a voice in its own democracy,” Clinton wrote, adding, “Washingtonians serve in the military, serve on juries, and pay taxes just like everyone else. And yet, they don’t even have a vote in Congress.”
Earlier this week, Clinton also emphasized her support for a “public option” in health care coverage, including a possible Medicare buy-in policy.
The broader pattern matters, and it’s not altogether expected.
When Clinton’s campaign got underway nearly a year ago, the former Secretary of State started laying out her platform, and on a variety of issues – immigration, criminal-justice reform, expanding voting rights, etc. – the Democrat not only endorsed progressive ideas, she endorsed an agenda that was even more ambitious and further to the left than many expected.
At the time, of course, the question that loomed over the race dealt with motivation: was Clinton throwing her support behind a series of bold proposals because she was worried about Bernie Sanders, or was she serious about these plans? It’s one thing to make appeals to the left as the Democratic race gets underway, but would Clinton follow through when she shifts her attention to the general election?
The answer to these questions is coming into sharper focus. While the Democratic race still has some primaries to go, the delegate math suggests Clinton is well positioned to prevail, and she’s already begun shifting her attention to Donald Trump and the fall election. If the cynics were correct, this would be about the time we’d expect to see Clinton move gradually towards the center, eschewing some of her more progressive goals.
Except this week, we’re seeing the opposite, with Clinton backing Sanders-endorsed changes to the financial industry and touting her support for a public option.
Maybe Clinton is hoping to win over Sanders’ ardent fans who aren’t yet ready to back her candidacy in the fall. Maybe she believes these progressive goals are popular enough with the American mainstream that she’s not really taking much of a risk. Maybe she actually believes what she’s saying and none of this is calculated in any meaningful way.
Whatever the motivation, Clinton may be focusing her attention on the general election, but many of her key progressive ideals, at least for now, remain very much intact.
By Steve Benen
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How Trump’s Pick To Police Wall Street Endangers The Economy
How Trump’s Pick To Police Wall Street Endangers The Economy
As the country reeled from news that Donald Trump Jr. apparently tried to collude with Russia against former Democratic presidential contender Hillary Clinton, his father, President Donald Trump, ...
As the country reeled from news that Donald Trump Jr. apparently tried to collude with Russia against former Democratic presidential contender Hillary Clinton, his father, President Donald Trump, announced a decision that will have ripple effects on the American economy for years to come.
Trump, distressing advocates of tough financial rules and pro-worker monetary policy, on Monday nominated veteran Wall Street lawyer Randal Quarles to serve as the Federal Reserve’s top finance regulator.
Read the full article here.
Toys 'R' Us employees demand severance pay for 33,000 workers
Toys 'R' Us employees demand severance pay for 33,000 workers
The push comes as a part of a campaign supported by the advocacy group Center for Popular Democracy. The campaign will host a series of events at Toys "R" Us headquarters and the offices of...
The push comes as a part of a campaign supported by the advocacy group Center for Popular Democracy. The campaign will host a series of events at Toys "R" Us headquarters and the offices of private-equity owners. More than 50,000 people have already signed a petition calling for Toys "R" Us workers to receive severance pay.
Chicago Activists, Lawmakers Deliver Petitions To SEC For Action On 'Toxic' Interest Rate Swaps (VIDEO)
Chicago Activists, Lawmakers Deliver Petitions To SEC For Action On 'Toxic' Interest Rate Swaps (VIDEO)
Chicago community activists and local elected officials delivered 88,000 petition signatures to the U.S. Securities and Exchange Commission's (SEC) regional office Thursday morning, urging the...
Chicago community activists and local elected officials delivered 88,000 petition signatures to the U.S. Securities and Exchange Commission's (SEC) regional office Thursday morning, urging the agency to investigate complex financial agreements called interest rate swaps.
Those who delivered the petition signatures, collected online by the Grassroots Collaborative and several other organizations, say cash-strapped local and state governments are being squeezed by the "toxic swaps" they entered into with banks before the Great Recession. The complicated deals, which come with hefty penalties and termination fees, were intended to save taxpayer-backed organizations money, but they backfired when the economy crashed.
"These are the same toxic swaps that have drained millions of dollars out of our city, state and (Chicago Public Schools) budgets and are hurting cities and states across the country," Saqib Bhatti, director of the ReFund America Project, said outside the SEC's Chicago regional office, 175 W. Jackson Boulevard.
Illinois State Reps. Robert Martwick (D-Chicago), Emanuel "Chris" Welch (D-Westchester) and Chicago Ald. Carlos Ramirez-Rosa (35th Ward) joined activists at the petition delivery.
Petitioners want the SEC to "investigate the 'toxic swaps' Wall Street is using to impoverish our cities and towns -- and make bankers return all ill-gotten profits from deceptive and fraudulent sales."
The state of Illinois has already paid $684 million for interest rate swaps and could be forced to pay an additional $870 million in November if "the state does not sue or renegotiate these deals," according to the Grassroots Collaborative.
Interest rate swaps, Ramirez-Rosa said, have cost the city of Chicago and CPS over $1 billion in combined payments, plus $600 million in costs associated with terminating the agreements.
"That $600 million in ransom to the banks went to go pad their bottom line," Ramirez-Rosa said. "The banks don't need more money. Our neighborhoods desperately need these funds. ... The SEC can act now to recuperate some of that money for the city of Chicago and the Chicago Public Schools, and they can act now to defend the state of Illinois from further payments, from paying a larger ransom, to these banks."
Welch said he is "disgusted" that "big banks continue to profit at the expense of our most vulnerable." He urged Illinois Gov. Bruce Rauner, Chicago Mayor Rahm Emanuel and CPS CEO Forrest Claypool to join the push for an SEC investigation into swap agreements.
"We ask the governor and our leaders in this city to stop putting banks before books," Welch said.
Here's more from the lawmakers at the petition delivery:
Organizers and the elected officials dropped off the petition signatures at the SEC's Chicago office, where a receptionist said she would give the documents to the regional director.
In addition to the Grassroots Collaborative, the online petition was circulated nationwide by Americans for Financial Reform, the Center for Popular Democracy, CREDO Action and Rootstrikers.
Read Progress Illinois' past reporting on how interest rate swaps work and their financial impact on the state, city of Chicago and CPS.
by ELLYN FORTINO
Source
Ilhan Omar Romps In Minneapolis Democratic Primary, While Tim Walz And Keith Ellison Win Statewide
Ilhan Omar Romps In Minneapolis Democratic Primary, While Tim Walz And Keith Ellison Win Statewide
Omar had the backing of the bulk of the progressive and grassroots groups that weighed in on the race, including MoveOn; Justice Democrats; the statewide and Twin Cities chapters of Our Revolution...
Omar had the backing of the bulk of the progressive and grassroots groups that weighed in on the race, including MoveOn; Justice Democrats; the statewide and Twin Cities chapters of Our Revolution, the group that was formed from the remnants of the 2016 Bernie Sanders campaign; and CPD Action, an arm of the Center for Popular Democracy.
Read the full article here.
Center for Popular Democracy Names Jennifer Epps-Addison Network President
Center for Popular Democracy Names Jennifer Epps-Addison Network President
The Center for Popular Democracy Tuesday announced the appointment of Jennifer Epps-Addison as the new president of its network of 43 state-based partner organizations. She will also serve as the...
The Center for Popular Democracy Tuesday announced the appointment of Jennifer Epps-Addison as the new president of its network of 43 state-based partner organizations. She will also serve as the social and economic justice organization’s Co-Executive Director.
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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
For Workers, Walgreens is a Prescription for Disaster
03.01.2016
NEW YORK – Looks like Walgreens needs some first aid of its own.
Thousands of people across the country chose the...
03.01.2016
NEW YORK – Looks like Walgreens needs some first aid of its own.
Thousands of people across the country chose the drugstore chain as the 'worst employer' among eight of America's most recognizable brands such as Whole Foods and Pizza Hut.
Walgreens emerged as the winner of the first-ever Worst Employer Pageant, an online contest launched in January by Center for Popular Democracy Action to highlight the poor treatment of workers by large employers. Walgreens won 68 percent of the votes against CVS. About 4,700 total votes were cast in the online contest. (A link can be found here.)
This should come as no surprise since the drugstore chain has been accused of a slew of labor issues. CEO Stefano Pessina earns 540 times the median worker pay, while cashiers are paid a mere $9 per hour on average – or just under $18,000 every year. The company also “promotes” hourly employees to salaried positions that often involve longer hours and no chance at overtime – resulting in overall wages that can be lower hour by hour.
The Worst Employer Pageant looked at eight companies in four categories that Americans use regularly – banks, supermarkets, drug stores, and pizza chains – examining metrics such as a poor CEO to median worker pay ratio, employee lawsuits, and failure to pay minimum wage and overtime. Other companies nominated included Bank of America, Wells Fargo, Sam’s Club, Whole Foods, CVS, Papa John’s, and Yum! Brands, owner of Pizza Hut.
Ranking behind Walgreens were Papa John’s and Sam’s Club, both of whom have also been accused of a variety of labor violations. Papa John’s has paid millions in settlements to delivery and other workers who were cheated out of their wages, while Sam’s Club was charged with a $151 million lawsuit for forcing employees to work off-the-clock.
JoEllen Chernow, Director of Economic Justice at CPD Action, released the following statement:
“Walgreens needs a dose of its own medicine when it comes to how it treats its workers – and people are taking notice. The votes of thousands are testament to the fact that a company’s morals are no longer a side issue – they increasingly define where Americans eat, shop, and spend their leisure time. Walgreens and other bad actors should take this so-called “award” as a sign that their labor policies are due for a checkup. Consumers are watching and will continue to make their voices heard until all employees get a fair share.”
www.cpdaction.org
CPDAction and sister organization 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.
Contact:
Asya Pikovsky, apikovsky@populardemocracy.org, 207-522-2442
Anita Jain, ajain@populardemocracy.org, 347-636-9761
Under scrutiny, New York Fed sets short list for Dudley successor
“Community and labor activists led by the Fed Up coalition demonstrate and call for the selection of a Federal Reserve Bank of New York president independent from Wall Street, outside the Fed bank...
“Community and labor activists led by the Fed Up coalition demonstrate and call for the selection of a Federal Reserve Bank of New York president independent from Wall Street, outside the Fed bank in New York, March 12, 2018.”
Read the full article here.
How Did New York Become the Most Unionized State in the Country?
The Nation - September 3, 2014, by Michelle Chen - With all the filthy lucre sloshing around on Wall Street, New York City may not strike you as a bastion of organized...
The Nation - September 3, 2014, by Michelle Chen - With all the filthy lucre sloshing around on Wall Street, New York City may not strike you as a bastion of organized labor. But the city is in fact the nation’s leading union town. And in the past year, according to researchers at the City University of New York, there has even been a slight increase in unionization in the five boroughs.
About 24 percent of wage and salary workers in New York City are union members, a small but significant increase over the past year, from about 21.5 percent in 2012 . Statewide, according to Current Population Survey data analyzed in the study, New York remains the most union dense state in the country at 24.6 percent of workers.
According to the authors, Ruth Milkman and Stephanie Luce, the increase—amid a multi-year trend of decline—appears to be driven by hiring trends, not organizing new sectors. As the so-called “recovery” boosts labor demand, long unionized industries are just hiring more. “There are some new organizing efforts here and there, but nothing that accounts for this [increase],” Milkman tells The Nation. “It seems to just be shifts in the labor market reflecting long-unionized sectors that are rebounding.”
Union density in a large population offers only a rough gauge of actual labor activity. The overall number of union members may fluctuate from year to year whenever big unionized industries add or shed jobs, Milkman explains, but that does not capture, and could even mask, the effect of new union formation in smaller-scale workplaces—like the handful of immigrant workers who have recently unionized at local carwashes.
Much of last year’s growth in union workers has come in the construction industry, where unionization in the NYC metro area is about 27 percent, and 30 percent statewide—about twice the industry rate nationwide. But construction trades are a mixed bag, because employers can use both union and non-union workers on different jobs, and the industry runs on short-term contract work. Milkman says the recent trendlines point to growth in both union and non-union construction jobs, but with relatively strong growth among union members.
Overall, New York’s unionization rates are highest in the public sector, at about 70 percent. But surprisingly, recent expansion of union membership centers on private-sector workplaces. Alongside union boosts in the building trades, unions have made gains in building-based services, like janitors and porters, and hotels, where over a third of the labor force is union.
Though undocumented immigrants often work non-union jobs, immigrants (who make up about 37 percent of the city’s population) are rapidly joining the union ranks. Though newer immigrants have relatively low rates of unionization, according to the report, among immigrants who arrived before 1980, the rate is actually higher than that for US-born workers in both New York City and statewide. Black unionization rates have been the highest of any racial or ethnic group, Asians the lowest.
Though union workplaces generally offer higher wages and better benefits, union jobs face multiple threats from displacement and eroding working conditions. Building trades employers, for example, have recently shifted away from a longstanding agreement to stick to using union labor, enabling large developers to hire cheaper non-union and “off the books” workers, including many undocumented immigrants. A “two tier” labor structure, in which union and informal workers “compete,” may squeeze down job quality and undermine wages across the sector, by constraining workers’ ability to negotiate working conditions. A new condominium development plan in mid-town Manhattan seems to exhibit how the city’s economic “recovery” is banking on this trend. According to Crains, the project was recently sealed with “a special package of work-rule and wage concessions from construction unions that is expected to shave as much as 20 percent off labor costs—a savings of millions of dollars.”
According to a 2007 report by the think tank Fiscal Policy Institute, the prevalence of “underground” non-union construction workers led to hundreds of millions of dollars in hidden social costs, due to unpaid payroll taxes and public healthcare spending.
The city’s relatively high union density is rooted in a historical legacy of labor militancy, particularly in blue-collar trades and public services like mass transit. Over the course of the twentieth century, tough union shops cultivated what Milkman calls a workplace culture of “social democracy.”
Yet unions have not significantly penetrated newer, rapidly growing, service industries like retail and restaurants. Meanwhile, New York’s established manufacturing sectors maintain relatively high unionization rates, but the city has shed about half its manufacturing jobs since 2001.
Nonetheless, unions are more welcome in New York than most places in the country. Nationwide, unionization has tumbled since the 1980s after decades of deindustrialization and global offshoring. Today, only about 11 percent of workers belong to a union, and the right-wing backlash continues with “right to work” legislation, which impedes union organizing, and attacks on public sector collective bargaining rights.
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Andrew Friedman of the Center for Popular Democracy, which advocates for low-income workers and communities of color, says “the vast majority of New York’s workers are not unionized, do not have a voice at work and are forced to confront ever-more exploitative treatment at work.” For the city’s working class as a whole, Friedman says via e-mail:
Not withstanding this recent uptick in unionization rates, far too many workers, particularly workers of color, women and immigrant workers, in particular, continue to receive inadequate wages, inadequate hours, inadequate control over their schedules and inadequate respect and dignity on the job.
Unions are not the only way to empower workers. Recent efforts to “organize the unorganized”—the unprecedented wildcat mobilization of non-union fast-food workers, organizing day laborers through worker centers, or community-driven campaigns for a $15 minimum wage—all illustrate the promise as well as the challenges of building labor power, with or without a formal union.
The right to good, safe jobs is universal; unionization is sadly not. But the struggle is the same whether you’re a hotel housekeeper striking for a better contract, or a day laborer suing for unpaid back wages. New Yorkers are holding onto traditionally unionized jobs. But a revival of the labor movement requires building new traditions of organizing in workplaces where activism makes the most difference.
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