The Fed’s Main Job Is Jobs, And A Coalition Plans To Keep It On Task
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve...
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve Friday when the Labor Department releases its August unemployment statistics. But where will the Fed’s eyes be focused? A group of activists are planning the next steps of their effort to keep the Fed focused on the continuing unemployment crisis, and keep the Fed from taking actions that will make things worse for millions still seeking work.
“We’ve got a lot of work ahead of us,” said Shawn Sebastian of the Center for Popular Democracy, who was part of a group of activists and unemployed people who confronted members of the Fed at last month’s economic summit in Jackson Hole, Wyo. That includes following up on a promise by Fed chair Janet Yellen to meet with the group in Washington and pressing a more detailed plan for how the Fed should proceed to help the Main Street economy grow.
“We are going to be looking at the full range of policy options,” Sebastian said.
The “inflation hawks” were poised to seize the narrative when the members of the Fed attended the Jackson Hole summit. These Fed members, egged on by conservative academics and policymakers, want the Fed to put the brakes on economic growth and turn its attention to fighting inflation, even though there are no signs that inflation is an imminent threat. On the contrary, wages as a percentage of economic output are at their lowest level since the late 1940s (while corporate profits as a share of the economy are at record highs), one sign that there are far more people looking for work than there are jobs for them.
What the hawks did not count on was the Center for Popular Democracy’s ragtag group of 10 unemployed people and activist supporters. They trekked to Jackson Hole to confront Fed members with their stories of struggling to find decent jobs, along with a demand that the Fed not abandon its unfinished role in rebuilding the middle-class economy, in the form of a letter endorsed by more than 70 organizations. Their biggest success, Sebastian said, was a two-hour meeting with Kansas City Federal Reserve Bank President Esther George, who just before Jackson Hole said in an interview with CNBC that it was time for the Fed to begin thinking about raising interest rates “when you see the economy getting as close as we are to full employment.”
But Sebastian and his group told George that the economy was nowhere near full employment and that the analysis of the inflation hawks was “lacking in relevance, substance and rigor.” One member of the group told of how she went from being an MBA who had risen to a management job over 15 years to being laid off and unable to find work for months, finally settling for a job that paid half as much as the job she lost.
It’s not clear what substantive effect hearing these stories had on George and other inflation hawks on the Fed, Sebastian said. “But I do hope we contributed to her thinking and we also started an engagement” with the Fed, he said. Fed members now know that when they discuss economic policy, “you can’t make decisions without public scrutiny anymore, because we’re paying attention now.”
One of the ideas that the group will refine and attempt to build consensus around would have the Fed invest directly in infrastructure bonds and similar government instruments, in much the same way that it purchased billions in bonds to prop up the financial sector in the years following the 2008 financial crash. The bond-purchasing program, known as quantitative easing, helped boost Wall Street share prices, according to most experts, but had no direct effect on job-creation or on bringing the economic recovery to communities around the country hardest hit by the crash – as the nation has now vividly seen in Ferguson, Mo.
Having the Fed directly buy bonds that would enable federal, state or local governments to fund transportation projects, school construction or other public facilities would put the Fed’s power to work in ways that directly creates jobs in the short run and assets that enhance the nation’s competitiveness and well-being in the long run.
The Fed could also better use its regulatory authority to prod the banks to pour into the economy the close to $2 trillion that is now sitting in its vaults. That hoarded cash could be put to work creating jobs and lifting the wages of working-class people.
Whatever policies take shape during the next phase of the Center for Popular Democracy’s campaign to keep the Fed focused on full employment, Sebastian says that the opening round has been a success in sending the message that “we’re not in an inflation crisis … we are in an unemployment crisis. You can’t ignore an ongoing crisis for the sake of a ghost of inflation that may or may not appear.”
Why Texans Are Fighting Anti-Immigrant Legislation
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to...
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to leave Gov. Greg Abbott’s office during a protest against the anti-immigrant Senate Bill 4.
The bill, which Mr. Abbott signed May 6, represents the most dangerous type of legislative threat facing immigrants in our country. It has been called a “show me your papers” bill because it allows police officers — including those on college campuses — to question the immigration status of anyone they arrest, or even simply detain, including during traffic stops.
Read the full article here.
Slew Of Organizations Denounce Civil Right Violations of Puerto Ricans on May Day and Demand Gov. Roselló To Stop Austerity Measures
05.03.2018 New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful...
05.03.2018
New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful assembly of students, families and activists on May Day protesting against austerity measures and the national debt, the Center for Popular Democracy signed on to an open letter to Governor Roselló and released the following statement through its Co-Executive Director, Ana María Archila, who was present at the event and recorded the state violence response in a video:
“This week, as teachers, students, and retirees in Puerto Rico were exercising their First Amendment rights with a peaceful march to demand dignity for their families, the police came out in riot gear and unleashed tear gas on the crowd. Children, elderly people, entire families were fighting to catch their breath. It was a scene that doesn’t belong in a democratic society.
But this scene is not new in Puerto Rico. The police are used to controlling and enforcing colonial rule on the island. And they are enabled by our silence stateside. The crisis confronting Puerto Rico is enormous, and it’s as much a crisis of democracy as it is an economic and climate crisis.
Governor Roselló must condemn the violence perpetrated against his own people. And he must address the root causes of the march: the austerity measures that prioritize banks over people and are putting the brakes on the island’s recovery. We will continue to stand in solidarity with the Puerto Rican people as they continue to demand dignity and a better life for themselves and their families.”
Below, the Center for Popular Democracy join several organizations in solidarity with the Puerto Rican people and sign on this open letter to Governor Ricardo Roselló demanding an investigation into the abuses perpetrated by the Police Department on May Day rally and demand a stop to austerity measures and cancellation of the debt:
Open Letter to the Governor of Puerto Rico Ricardo Roselló
Sign-On Letter Condemning the Actions of the Puerto Rican Government on May Day and Demanding Justice for the Puerto Rican People
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and organizations that came together on May 1, 2018 to march against inhumane austerity measures that continue to drive a massive exodus of families in search of a better life. We stand with the millions of Puerto Ricans who remain on the island and fight every day to sustain their families and improve their collective quality of life. We write today to condemn the inhumane and violent police actions of the government of Ricardo Rosselló.
On May 1, 2018, thousands of Puerto Rican people, including elderly adults and children, who were exercising their First Amendment right to protest were met with state violence through the use of tear gas and violence at the hands of the police. Images captured at the event, corroborated by first-hand accounts, show crowds of people fighting to catch their breath as they ran away from police in riot gear. This type of scene has no place in a democratic society. The right to assemble and express frustration at the government is essential to the practice of democracy. We are deeply disturbed by Governor Roselló’s defense of the police brutality and demand that the local government take the appropriate actions to prosecute those who gave and executed the orders for these actions to take place.
On May 1, 2018, thousands of Puerto Ricans came out to protest the measures that the governor and the fiscal control board have put forward over the last two years. These measures adversely affect working class Puerto Ricans, and include:
1. Privatizing of the public school system and the power company;
2. Doubling the tuition costs in Puerto Rico's public university;
3. Closing over 300 schools;
4. Slashing labor rights;
5. Raising taxes; and
6. Cutting pensions.
This dire situation is forcing families to flee the island en masse. The Center for Puerto Rican Studies estimates that Puerto Rico could lose 14% of its population, 470,000 people, by 2019.
On May Day, the people of Puerto Rico came out with clear demands for their government. Today we stand with them and echo their demands in solidarity, and we commit to advocate for them in the United States.
We further demand immediate accountability for the May Day violence. Our demands are as follows:
1. Stop austerity: The Government of Puerto Rico should stop all austerity measures and invest in the working people of Puerto Rico by strengthening labor rights, raising the minimum wage, and promoting other policies that allow families in the island to live with dignity. Living with dignity includes rebuilding Puerto Rico’s power grid with 100% clean and renewable energy and keeping the power grid and power generation in public hands under community control, so as to mitigate the climate crisis and adapt for future extreme weather.
2. Cancel the debt: The Government of Puerto Rico should not make, and the U.S. government should stop promoting, any more debt payments to billionaire bondholders. Instead, all government efforts should focus on securing payments to pension holders. The Puerto Rican government should also prosecute any individual that has profited from the debt crisis.
3. Prosecute: The Government of Puerto Rico should conduct a full, transparent and impartial investigation into the police violence during the May Day actions and prosecute every police officer and civil servant who instructed and executed these acts of violence against the Puerto Rican people. We also encourage human right organizations to conduct their own independent investigations and oversight to guarantee that this process is done with full transparency.
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and their demands, condemn the actions of the Puerto Rican government, and demand that the local government take the appropriate actions to prosecute those who instructed and executed these actions.
Sincerely,
SPACEs United for a New Economy Maryland Communities United Black Voters Matter Fund CT PR Agenda Progressive Caucus Action Fund The Bully Project Center for Popular Democracy Make the Road PA Make the Road CT 215 People Alliance Alliance for Puerto Rico-Massachusetts Make the Road NJ United We DREAM NYCC Chicago Boricua Resistance! OLÉ in Albuquerque, NM Organize Florida Delaware Alliance for Community Advancement CASA Mi Familia Vota Make the Road NY VAMOS4PR 32BJ Matt Nelson Action Center for Race and the Economy Refund America Proyect Massachusets Jobs with Justice DiaspoRicans DiaspoRiqueños New Haven Association of Legal Services Attorneys United Action CT Womens March Alliance for Quality Education National Economic and Social Rights Initiative Courage Campaign Action NC Harry Potter Alliance Blue Future Youth Progressive Action Catalyst Pennsylvania Student Power Network Movement Voter Project Student Power Networks About Face: Veterans Against the War Americas for Conservation Florida Immigrant Rights Coalition- FLIC One America Services, Immigrant Rights, and Education Network (SIREN) Arkansas United Community Coalition Make the Road NV Sunrise Movement Lil Sis American Family Voices Resource Generation Climate Hawks Vote The Shalom Center National Korean American Service & Education Consortium (NAKASEC) Massachusetts Education Justice Alliance Public Higher Education Network of Massachusetts Institute for Policy Studies, New Internationalism Project Korean Resource Center (KRC) HANA Center NAKASEC - Virginia Pineros y Campesinos Unidos del Noroeste (PCUN) Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA) Progressive Leadership Alliance of Nevada (PLAN)
For Many Americans, the Great Recession Never Ended. Is the Fed About to Make It Worse?
When the Federal Reserve considers raising interest rates on July 28—and then again every six weeks after—MyAsia Reid,...
When the Federal Reserve considers raising interest rates on July 28—and then again every six weeks after—MyAsia Reid, of Philadelphia, will be paying close attention. Despite holding a bachelor’s degree in computer science, completing a series of related internships, and presenting original research across the country, Reid could not find a job in her field and, instead, pieces together a nine-hour-per-week tutoring job and a 20-hour-per-week cosmetology gig. The 25-year-old knows that an interest-rate hike will hurt her chances of finding the kinds of jobs for which she has trained, and earning the wage increase she so desperately needs.
A Fed decision to raise interest rates, expected sometime this year, amounts to a vote of confidence in the economy—a declaration that we have achieved the robust recovery we need. “We are close to where we want to be, and we now think that the economy cannot only tolerate but needs higher interest rates,” the chairwoman of the Federal Reserve, Janet Yellen, told Congress during a July 15 policy briefing.
But for many millions of Americans, the recovery has yet to arrive, and for them, a rate hike will be disastrous. It will put the brakes on an economy still trudging toward stability; stall progress on unemployment, especially for African-Americans; and slow wage growth even more for the vast majority of American workers.
The general argument for raising interest rates is that it will prevent wage costs from pushing up inflation. However, there is no data suggesting price instability; nor is there any indication that wages have risen enough to spur such inflation. For the overwhelming majority of American workers, wages have stagnated or even dropped over the past 35 years, even as CEOs have seen their compensation grow 937 percent. During the same period, wage gaps between white workers and workers of color have increased, and black unemployment is at the level of white unemployment at the height of the Great Recession. Meanwhile, the labor-force participation rate is less than 63 percent, the lowest in nearly four decades, suggesting that many Americans have simply given up looking for work.
Yellen has herself often urged the Fed to look at the broadest possible employment picture. Yet, during her recent congressional testimony, shedownplayed the Fed’s ability to address racial disparities, saying that the central bank does not “have the tools to be able to address the structure of unemployment across groups” and that “there isn’t anything directly that the Federal Reserve can do” about it. She cited, rightly, a range of other factors, including disparate educational attainment and skill levels, that contribute to economic and social disparities between racial groups. But she also glossed over the importance of the economic environment in shaping workers’ unequal chances.
One defining metric in shaping workers’ chances is the unemployment rate. A high unemployment rate facilitates racial discrimination. When there are too many qualified job candidates for every job, employers can arbitrarily limit their labor pool based on unnecessary educational requirements, irrelevant credit or background checks, or straightforward bias. A tight labor market, by contrast, makes it much harder for employers to succumb to prejudices and overlook qualified workers simply because of bias. When the number of job seekers matches the number of job vacancies, African-Americans, Latinos, women, gays and lesbians, injured veterans, and formerly incarcerated workers finally get their due in the workforce.
The late 1990s, when unemployment was at about 4 percent, bear out this thesis. During that rosier era, black unemployment was 7.6 percent, and the ratio of black family income to white family income rose substantially.
As the guardian of monetary policy, the Federal Reserve has a number of tools for encouraging a tight labor market, and one of those tools is to keep interest rates low. By keeping rates low, the Fed creates a hospitable environment for job growth by lowering the borrowing costs for consumer and business spending—including hiring new workers. By contrast, raising rates deliberately suppresses spending by consumers and businesses. In the process, it slows job growth, holds down wages, and unnecessarily maintains racial disparities.
With so many workers still struggling, there is no need to cut off this recovery prematurely. Inflation remains below the Fed’s already-low 2 percent target, unemployment and underemployment are too high, and wage growth and labor-force participation are too low. In fact, the Fed should be doing everything within its power to keep nudging the recovery forward for the workers still caught in the slipstream of the Great Recession.
The Federal Reserve should not raise interest rates this week, nor when it meets again six weeks after that. It should not raise rates at all in 2015. Doing so would cause tremendous harm to the aspirations and lives of tens of millions of working families, and would disproportionately hurt African-Americans.
MyAsia Reid knows the difference that a full-employment economy can make. She is ready to participate in the economic recovery. And she will be watching as the Fed decides whether to hold to a strategy of strengthening the recovery or pursue a new strategy that jeopardizes her chances and her community.
Source: The Nation
Meet the Two Women Who May Have Gotten Through to Senator Jeff Flake
Meet the Two Women Who May Have Gotten Through to Senator Jeff Flake
In a video seen and heard round the Internet on Friday morning, two women cornered Republican Senator and judiciary...
In a video seen and heard round the Internet on Friday morning, two women cornered Republican Senator and judiciary member Jeff Flake in a Senate elevator as he made his way to the judiciary hearing that would determine whether Brett Kavanaugh’snomination would move forward. One demanded, “Don’t look away from me. Look at me and tell me that it doesn’t matter what happened to me, that you will let people like that go into the highest court of the land and tell everyone what they can do to their bodies.”
Read the full article and watch the video here.
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