Two Reports Detail Wide Discrimination Against Transgender Americans
Windy City Media Group - February 18, 2015, by Gretchen Rachel Hammond - When the Supreme Court of the United States...
Windy City Media Group - February 18, 2015, by Gretchen Rachel Hammond - When the Supreme Court of the United States rules on the issue of same-sex marriage later this year, many of the advocacy organizations and groups nationwide that have fought for a resolution to the issue are hopeful that LGBTQ equality will take a giant leap forward. However two reports released February 18 by the Denver-based LGBT think tank The Movement Advancement Project (MAP) starkly demonstrate that the transgender community remains snared in disproportionate inequity, discrimination and oppression in almost all areas of American life—employment, housing, K-12 and higher education, healthcare, pensions, the criminal justice system, immigration, obtaining credit, loans, financial aid or identification documents and even marriage.
The ramifications to the community in terms of poverty, societal attitudes and manifestations of violence against transgender individuals have been bluntly illustrated with the deaths of eight transgender women across the United States in the first seven weeks of 2015.
The data, stories and issues raised in the reports entitled Understanding Issues Facing Transgender Americans and Paying and Unfair Price: the Penalty for Being Transgender in America were assembled and co-authored by MAP alongside the Center for American Progress, the National Center for Transgender Equality (NCTE), and the Transgender Law Center, in partnership with Center for Community Change, Center for Popular Democracy, GLAAD, National Association of Social Workers, and the National Education Association.
Understanding Issues Facing Transgender Americans details each sphere of society in which transgender Americans face daily discrimination and offers brief recommendations on a local, state and federal level. The figures are sobering.
The report states that one-in-five transgender people have been refused a home or an apartment with laws protecting them on the books in only 18 states and D.C. In schools, 40 percent of gender non-conforming youth have reported some level of harassment with only 13 states offering laws against discrimination because of their gender identity. An astonishing 78 percent of transgender individuals reported being "mistreated or discriminated against at work" while up to 47 percent noted being unfairly denied a job at all. In terms of income, the report cited National Transgender Discrimination Survey (NTDS) figures which stated transgender Americans are "four times more likely to have a household income under $10,000 per year than the population as a whole."
Within the criminal justice system, the report notes that one-in-six transgender people will have been incarcerated at some point in their lives. For Black transgender individuals that figure stands at 47 percent. "Reports from the Bureau of Justice Statistics find that 35 percent of transgender prisoners report experiencing sexual abuse in the last twelve months, compared to 4 percent of all prisoners," the document states while indicating that the disproportionate numbers of low-income transgender people has led to a far greater frequency of police interactions and "higher levels police harassment, imprisonment and violence."
Unfair Price: the Penalty for Being Transgender in America examines that poverty in greater detail. The report lists what it calls two "primary failures of law' as the reason "transgender people in the United States face clear financial penalties and are left economically vulnerable"—pervasive discrimination and a lack of clear legal protections along with hostile educational environments.
The results are denial of employment or harassment while on the job, lower wages, denial of housing and even difficulty accessing homeless shelters, inordinate healthcare costs due to discrimination by insurance companies and healthcare providers and increased difficulty obtaining credit such as a credit card or student loan.
MAP Policy Specialist and Policy Researcher Naomi Goldberg was the lead author on that report while LGBT Movement and Policy Analyst Heron Greenesmith piloted the creation of Understanding Issues Facing Transgender Americans.
Goldberg told Windy City Times that both reports received their genesis from earlier and exhaustive research released by MAP detailing issues facing the LGBT community as a whole. "Beginning last year, we starting releasing issue-specific guides," she said. "Heron released one about the disparities that bisexual face in this country. Often both they and the transgender community are ignored when talking about LGBT people. So this guide about transgender [individuals] is meant to be used as an entry point for people to understand the key areas in which transgender people face challenges."
Goldberg hopes that the reports will be used in multiple areas and across a spectrum of audiences including the media, policy makers and advocacy groups. "It's meant to be another articulation of why protections are needed," she said. "As we see the transgender community gain visibility, a lot of people are coming to understand what it means to be transgender in a new way and I think this guide can be an easily accessible tool for people to talk about the real challenges transgender people face. There's a real opportunity here to articulate the concerns and the needs of the transgender community that is accessible and demystifying."
As a cisgender woman, Goldberg acknowledged that as she began to piece the report together she was surprised at the sheer breadth of discrimination against the transgender community. "It was the ways in which discrimination affects all aspects of life," she said. "In my opinion this is where the work really needs to be focused. We need to understand how to talk about the issues that transgender community face, how to provide recommendations to advance them in the policy sphere and also look at movement capacity—organizations that are doing the work and how to support [them]."
However Goldberg stressed that lack of data concerning the transgender community remains a huge obstacle in creating policy change. "We can probably say that the 2020 census will not be including questions of gender identity and expression," she stated. "There's going to be another fielding of the Transgender Discrimination Survey which uncovered and provided all of us with statistics to pair with people sharing their own stories. Gathering the data is going to be the long game but that is the path forward."
"It's not enough to say 'we're done' when we pass laws," Goldberg added. "This is something the LGBT movement post marriage-equality is going to have to address.
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House Republicans face voters in home districts angry over health care bill
House Republicans face voters in home districts angry over health care bill
Rep. Tom Reed of New York, who was among the Republican members of Congress to vote for a bill to repeal and replace...
Rep. Tom Reed of New York, who was among the Republican members of Congress to vote for a bill to repeal and replace Obamacare, held a string of hometown forums on Saturday where he was lambasted by crowds of angry voters and signs that read, "GOP Disaster" and "Why do you want to kill my daughter?"
Reed, whose district in upstate New York includes the cities of Ithaca and Corning, held three town hall meetings where the overwhelming majority of attendees had questions about health care. The congressman was met with boos and jeers throughout the forums, with people repeatedly chanting "Shame!" and "Vote him out!"
Get the full story here.
Warren says Toys 'R' Us investors should augment worker fund
Warren says Toys 'R' Us investors should augment worker fund
The toyseller's former private-equity owners said they were forming the fund on Tuesday after months of pressure from...
The toyseller's former private-equity owners said they were forming the fund on Tuesday after months of pressure from former employees and their representatives, along with some public pension funds and lawmakers including Warren, a former Harvard Law School bankruptcy expert who is considering a run for president in 2020. The groups, linked to the Center for Popular Democracy, estimate that workers are owed $75 million in severance pay, and they've also pressed Toys "R" Us creditors including Solus to pitch in.
Read the full article here.
Scarlett Johansson and Her Fellow Avengers Raise $500,000 for Puerto Rico Relief
Scarlett Johansson and Her Fellow Avengers Raise $500,000 for Puerto Rico Relief
Johansson and the John Gore Organization partnered for a benefit performance of Our Town in Atlanta....
Johansson and the John Gore Organization partnered for a benefit performance of Our Town in Atlanta.
Read the full article here.
Versace Sued for Allegedly Using a Code Word to Profile Black Shoppers (Update)
Versace Sued for Allegedly Using a Code Word to Profile Black Shoppers (Update)
Update: December 30, 2016, 12:00 p.m. EST: Versace has issued a statement affirming its commitment to equality: “...
Update: December 30, 2016, 12:00 p.m. EST: Versace has issued a statement affirming its commitment to equality: “Versace believes strongly in equal opportunity, as an employer and a retailer. We do not tolerate discrimination on the basis of race, national origin or any other characteristic protected by our civil rights laws. We have denied the allegations in this suit, and we will not comment further concerning pending litigation.”
Originally posted on December 27, 2016:
Versace is coming under fire for allegedly using a secret code to alert workers when an African-American person enters the store. A former employee who says he experienced the shocking scenario firsthand is suing for unpaid wages and damages.
According to the lawsuit, Christopher Sampiro, 23, claims the employees at the Bay Area Versace location used the code word “D410” to casually let each other know when a black person entered the store. The exact code is also used to identify all black clothing. After learning of the practice, the plaintiff, who self-identifies as one-quarter African American, responded to his manager by asking, "You know that I'm African American?" Following the exchange, Sampiro claims he was denied rest breaks and a "legitimate" training. He was fired two weeks later.
The management told Sampiro that he was let go because he hadn't "lived the luxury life," the lawsuit reports. Versace denied the allegations and filed a request for dismissal of the suit—but this isn’t the first time the Italian fashion house has gotten into trouble for its similarly questionable actions related to race.
Earlier this summer, the company released its fall 2016 ad featuring Gigi Hadid as the matriarch of an interracial family. While the campaign initially received praise for the depiction of a racially-diverse family, people were later upset to find that the 21-year-old model was depicted as a mother of two small children. One of the black children also appeared to be strapped into its stroller with a metal chain...it was odd, to say the least. In response to the criticism, Versace released a statement that said, "The campaign is made of a series of tableaux, some real-life and some fantastical. One part of the story is very glamorous, almost a fantasy, a kind of dream. The other part of the story is the same people, but in their real lives.”
Legal controversy related to race isn't new in the world of fashion. Last year, the Center for Popular Democracy accused Zara of racial profiling in a new report compiled from a survey of 251 Zara employees in New York City. According to the report, the store employees used the word “special order” to trail black customers who were deemed potential thieves while shopping. In the survey, 46 percent of employees claimed black customers were called “special orders” "always" or "often," while 14 percent said the same about Latino customers and 7 percent said the same about whites.
While Zara refuted the claims, both Versace and the Spanish retailer's cases, if proven to be true, show that the industry still clearly has a long way to go when it comes to diversity.
By KRISTEN BATEMAN
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It's Not Yet Time to Celebrate State's Graduation Rate
SCTimes - March 13, 2013, by Annette Meeks - Late last month, the Minnesota Department of Education released new data...
SCTimes - March 13, 2013, by Annette Meeks - Late last month, the Minnesota Department of Education released new data regarding Minnesota's high school graduation rate. The good news from the department, according to the Star Tribune, is that the "graduation rate for Minnesota students is the highest it's been in a decade, even though many minority students continue to lag behind their white peers when it comes to getting a diploma on time."
The new data showed that in 2013, "85 percent of white students, 56 percent of black students and 58 percent of Hispanic students graduated." Minnesota is not alone — many other states show an increase in the number of students leaving high school with a diploma. In 2014, according to the Star Tribune, the U.S. graduation rate was the highest it has been in 40 years when nearly "78 percent of high school students nationwide graduated on time."
What happens to a Minnesotan who doesn't earn a high school diploma? Those students face daunting challenges in life because the public education system has failed them. Instead of a celebratory front page news story, these students become a statistic in a report issued by the Center for Popular Democracy. Hardly part of the "vast right-wing conspiracy." The Center for Popular Democracy's "partners" include the National Education Association, the American Federation of Teachers and the AFL-CIO, to name just a few.
According to a recently released report by the center, "Minnesota has the third-highest unemployment gap between white and black people in the country — with the jobless rate among blacks almost four times higher than among whites."
Minnesota's astonishing statewide high rate of unemployment among African-Americans "fell" to 11.9 percent in 2014, down from a previous high of 15.4 percent seven years earlier. In 2014, the white unemployment rate in the state was 3.2 percent.
In 2013, the Star Tribune reported that, according to the Bureau of Labor Statistics, "Minnesota was second only to Wyoming [where the] black unemployment rate was triple the white rate." There was virtually no change in the Minnesota's Hispanic unemployment rate (7 percent), which remains at nearly twice the rate of white unemployment.
Furthermore, according to a report on BringMetheNews.com and WalletHub, "Minnesota has the second-worst wealth gap between white people and people of color in the United States."
So while officials at the Minnesota Department of Education continue celebrating the improving graduation rate, we'll postpone any celebrations. We'll wait until there is no achievement gap for minority students that attend (and graduate on time from) Minnesota's public schools. That will be worth celebrating.
This is the opinion of Annette Meeks, founder and CEO of Freedom Foundation Of Minnesota.
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The Spy Who Fired Me
Harpers Magazine - March 2015, by Esther Kaplan - Last March, Jim Cramer, the host of CNBC’s Mad Money, devoted part of...
Harpers Magazine - March 2015, by Esther Kaplan - Last March, Jim Cramer, the host of CNBC’s Mad Money, devoted part of his show to a company called Cornerstone OnDemand. Cornerstone, Cramer shouted at the camera, is “a cloud-based-software-as-a-service play” in the “talent-management” field. Companies that use its platform can quickly assess an employee’s performance by analyzing his or her online interactions, including emails, instant messages, and Web use. “We’ve been managing people exactly the same way for the last hundred and fifty years,” Cornerstone’s CEO, Adam Miller, told Cramer. With the rise of the global workforce, the remote workforce, the smartphone and the tablet, it’s time to “manage people differently.” Clients include Virgin Media, Barclays, and Starwood Hotels.
Cornerstone, as Miller likes to tell investors, is positioning itself to be “on the vanguard of big data in the cloud” and a leader in the “gamification of performance management.” To be assessed by Cornerstone is to have your collaborative partnerships scored as assets and your brainstorms rewarded with electronic badges (genius idea!). It is to have scads of information swept up about what you do each day, whom you communicate with, and what you communicate about. Cornerstone converts that data into metrics to be factored in to your performance reviews and decisions about how much you’ll be paid.
Miller’s company is part of an $11 billion industry that also includes workforcemanagement systems such as Kronos and “enterprise social” platforms such as Microsoft’s Yammer, Salesforce’s Chatter, and, soon, Facebook at Work. Every aspect of an office worker’s life can now be measured, and an increasing number of corporations and institutions—from cosmetics companies to car-rental agencies—are using that informationto make hiring and firing decisions. Cramer, for one, is bullish on the idea: investing in companies like Cornerstone, he said, “can make you boatloads of money literally year after year!”
A survey from the American Management Association found that 66 percent of employers monitor the Internet use of their employees, 45 percent track employee keystrokes, and 43 percent monitor employee email. Only two states, Delaware and Connecticut, require companies to inform their employees that such monitoring is taking place. According to Marc Smith, a sociologist with the Social Media Research Foundation, “Anythingyou do with a piece of hardware that’s provided to you by the employer, every keystroke, is the property of the employer. Personal calls, private photos—if you put it on the company laptop, your company owns it. They may analyze any electronic record at any time for any purpose. It’s not your data.”
With the advent of wireless connectivity, along with a steep drop in the price of computer processors, electronic sensors, GPS devices, and radio-frequency identification tags, monitoring has become commonplace.Many retail workers now clock in with a thumb scan. Nurses wear badges that track how often they wash their hands. Warehouse workers carry devices that assign them their next task and give them a time by which they must complete it. Some may soon be outfitted with augmented-reality devices to more efficiently locate products.
In industry after industry, this data collection is part of an expensive, high-tech effort to squeeze every last drop of productivity from corporate workforces, an effort that pushes employees to their mental, emotional, and physical limits; claims control over their working and nonworking hours; and compensates them as little as possible, even at the risk of violating labor laws. In some cases, these new systems produce impressive results for the bottom line: after Unified Grocers, a large wholesaler, implemented an electronic tasking system for its warehouse workers, the firm was able to cut payroll expenses by 25 percent while increasing sales by 36 percent. A 2013 study of five chain restaurants found that electronic monitoring decreased employee theft and increased hourly sales. In other cases, however, the return on investment isn’t so clear. As one Cornerstonereport says of corporate social-networking tools.“ There is no generally accepted model for their implementation or standard set of metrics for measuring R.O.I.” Yet this has hardly slowed adoption.
Read the full article here.
Bill de Blasio: From Education to Poverty, Leadership by Example
Huffington Post - October 9, 2014, by Richard Eskow - Progressives who are elected to executive office have a unique...
Huffington Post - October 9, 2014, by Richard Eskow - Progressives who are elected to executive office have a unique opportunity to highlight neglected issues and stimulate much-needed debate, by taking actions which challenge the "conventional wisdom." They can change the political landscape by employing a principle that might be called "leadership by example."
The mayor of New York City is uniquely positioned to play this role, thanks to that city's prominence, and so far Bill de Blasio has done exceptionally well at it. Two of his actions -- on education and assistance to the poor -- deserve particular commendation, because they challenge the "bipartisan" consensus that has too often strangled open debate and left the public's interests unrepresented.
Action for the Impoverished
1. "Welfare Reform's" Record of Failure
"Centrist" Democrats like Bill Clinton, together with Republicans like Rudy Giuliani and Michael Bloomberg, have long sung the praises of "welfare reform" -- a set of policies that promised to turn welfare recipients into "productive citizens" through a combination of educational programs, work requirements, and "tough love" that denied benefits to some of them.
Clinton signed the "Personal Responsibility and Work Opportunity Reconciliation Act" on August 22, 1996, saying it would "end welfare as we know it and transform our broken welfare system by promoting the fundamental values of work, responsibility, and families." That bill quickly became a symbol of "bipartisan consensus" and a much-touted piece of model legislation for the neoliberal economic agenda.
Unfortunately, we now know that it didn't work. In fact, it backfired. A report from the University of Michigan's National Poverty Center showed that extreme poverty increased in the United States by 130 percent between 1996 and 2013 -- and pinpointed "welfare reform" as the cause.
Despite its documented failure, the myth persists that "welfare reform" succeeded. This belief has so far proved resistant to the mounting evidence against it, perhaps because it serves the personal interests of wealthy individuals and corporations who don't care to be taxed for antipoverty programs.
This "reform" myth also serves to assuage their consciences. Politicians like Cuomo and Clinton are all too happy to help in that effort by assuring wealthy Americans that this policy is smart, even liberal, and that it only coincidentally happens to benefit them personally.
2. The End of Welfare As They Know It
The mayor of New York City cannot supersede a federal law, but a recent executive action will hopefully serve to re-open the debate on welfare "reform." De Blasio ended the policies of his GOP predecessors and eased requirements for welfare eligibility in New York City. New rules will give young people more time to complete their educations, and native speakers of foreign languages time to learn English. He also cut back on some "workfare" requirements (which in some cases amount to little more than ritual humiliation.)
For the first time, allowances will be made for parental duties, travel time, and other obstacles which are faced every day by the poor -- but which are little-understood by prosperous "bipartisans" from either party.
As a de Blasio official explained, "we have the data to show that toughness for the sake of toughness hasn't been effective."
3. Data Driven
Data. That word is anathema to "centrist" politicians and commentators who claim to be technocrats, but who are actually driven by ideology, donor cash, or both. When de Blasio issued his orders the hyperventilation was, predictably, all but instantaneous. "We don't need to guess how de Blasio's welfare philosophy will pan out," wrote Heather McDonald, who is "Thomas W. Smith Fellow at the Manhattan Institute."
Reihan Salam fulminated in Slate that welfare programs must "rest on a solid moral foundation. And that, ultimately, is what work requirements are all about."
But when the work isn't available, or people have no practical way of obtaining it, it's immoral to make them -- or their children -- suffer. By ending the inhumane but "bipartisan" policies of his predecessors, Bill de Blasio has potentially re-opened the debate on the draconian and failed "welfare reform" concept.
Action on Education
1. Charter Schools Are "Special Interests"
De Blasio's much-publicized struggle with charter school CEO Eva Moskowitz began when he overturned Bloomberg's decision to give her "Success Academy" free space in city buildings. That led her to make a series of false claims about her organization's accomplishments -- claims that were effectively debunked by Diane Ravitch and Avi Blaustein. Success Academy students aren't the best in the state, they aren't the most difficult students in the city -- and the program is so cost-inefficient that it spends over $2,000 per year more per student than other schools serving similar populations.
Bloomberg was generous to Moskowitz because her program suited his predilection for Wall Street-friendly, corporate-cozy ideas -- ideas which appeared on the surface to promote innovation or "reform," but which on further study reveal themselves as a wealth transfer from the many to the few, often at the expense of the public good.
That's exactly what the charter-school movement represents. Sure, it sounds like a good idea: Schools will "compete" for students, and those which offer the best "products" will succeed. As writer and education activist Jeff Bryant says: Everybody loves "choice," right?
But the concept is flawed at its core. Schools aren't failing because students and their parents don't have "choices" in schools. They're failing -- to the extent they are, because even that concept is overhyped -- because they don't have choices in jobs or housing. Schools are struggling because we don't pay teachers well enough, because we underfund our school districts, and because social factors (especially poverty) inhibit the learning process.
2. Rockets to Nowhere
For all the hype and all the money, there's still no evidence that charter schools work. Advocates love to claim that "school choice" offers lower-income children a way out of poverty. But Milwaukee, which the conservative American Enterprise Institute calls "one of the most 'choice-rich' environments in America," remains one of America's 10 most impoverished big cities.
And kids aren't any more educated in Milwaukee than they were before they were given all this "choice." Educator Diane Ravitch reviewed the data and found that, 22 years after the program was implemented, there was no evidence of improvement in students' test scores.
The Economic Policy Institute (EPI) reviewed the "Rocketship" program, which has bid to take over Milwaukee's underperforming schools, and found that it isn't working. They observed that "in 2012-2013, all seven of the Rocketship schools failed to make adequate yearly progress according to federal standards."
Call it "failure to launch."
3. Follow the Money
The EPI also noted that "Blended-learning schools such as Rocketship are supported by investment banks, hedge funds, and venture capital firms that, in turn, aim to profit from both the construction and, especially, the digital software assigned to students."
That might help explain why wealthy Wall Street investors paid Moskowitz's $2,000-plus-per-student cost overruns out of their own pockets. The same hedge funders also happen to have donated at least $400,000 to Andrew Cuomo's reelection campaign. Perhaps coincidentally, Cuomo led the charge against de Blasio after he moved to end Moskowitz's taxpayer-funded privileges.
Charter schools are an ideological and investment opportunity, which explains why enormous sums of money have been expended promoting them. (The latest effort, funded by $12 million from the wealthiest families in the nation, is something called "The Education Post."
Not all charter schools are driven by the profit motive, and some may in fact do a good job. But there is no evidence to support their claims, their operating principles, or the broader "free market" ideology behind them -- an ideology that is founded on hostility to government itself.
4. Breeding Fraud
Ravitch also notes that Washington, D.C., whose "Opportunity Scholarship Program" launched at least one educational celebrity career, was equally unable to demonstrate results. Its final-year report notes that "There is no conclusive evidence that the OSP affected student achievement."
There is conclusive evidence, however, that the charter school movement has produced at least one fairly widespread outcome: fraud. A recent report from the Center for Popular Democracy, Integrity in Education, and ACTION United told the story. The report, titled "Fraud and Financial Mismanagement in Pennsylvania's Charter Schools," showed that the state had failed to properly audit or review its publicly-funded charter schools.
It also uncovered a pattern of abuses so disturbing it makes charter schools look like petri dishes for fraud. The director of one charter school diverted $2.6 million in school funds to rebuild his church. Another stole $8 million for "houses, a Florida condominium, and an airplane." Yet another used taxpayer funds to finance "a restaurant, a health food store, and a private school." A couple stole nearly $1 million for their personal use.
There are more revelations in the report -- and it only covers one state.
And yet, despite mounting evidence to the contrary, charter schools continue to be talked up by Bill Clinton, whose recent boosterism was described by Salon's Luke Brinker as "stunning" in its variance with the facts. (Jeff Bryant has more on the reality behind Clinton's disingenuous remarks.)
5. The Ongoing Battle
De Blasio acted wisely in moving to end Bloomberg's gift of scarce New York City school resources to Moskowitz. He was ultimately forced to back down, at least in the short term, after her big-dollar backers won a victory in Albany.
That was no surprise, given the money behind the so-called "reformers." But it's not the end of the story, either. De Blasio's position on charter schools triggered a fierce response -- but it also triggered a long-overdue conversation.
By challenging the conventional wisdom on charter schools, Bill de Blasio has started something their backers didn't want: a genuine debate on their merits. He may have lost a battle, but if the debate continues he's likely to win the war.
Leadership Through Action
By taking actions which challenge the orthodoxy of his own party's corporate wing -- an orthodoxy shared and taken to extremes by the entire GOP -- Bill de Blasio is changing the political landscape. Although he is reportedly close to the Clintons (he managed Hillary's 2000 senatorial campaign), his executive decisions are offering a new political vision for progressives who have felt starved for representation in the two-party system of recent decades.
De Blasio's deeds haven't been limited to education and welfare, of course. As we've discussed elsewhere, he's taken on issues that range from the minimum wage to the environment, and to housing as a human right.
He's made mistakes, and he's all but certain to make more as he navigates difficult political waters. De Blasio's trying to effect change from within the political process, which is always a risky endeavor. But he's made great strides in a short time. His is the sort of leadership which can change the national political landscape even as it improves the quality of life for his constituents.
Bill de Blasio is using his position as mayor of New York to lead -- with action as well as words. And for that he's owed a debt of gratitude.
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Progressive campaigners say they have no remorse over Yellen era
Progressive campaigners say they have no remorse over Yellen era
Progressives played a key role in paving the way for Janet Yellen to become the first chairwoman of the Federal Reserve...
Progressives played a key role in paving the way for Janet Yellen to become the first chairwoman of the Federal Reserve in 2014. And they don’t regret it.
Left-leaning Democrats in the Senate and their allies in Washington told President Barack Obama that they would not support Lawrence Summers, his first choice for the Fed job, clearing the way for Yellen to take the helm of the central bank.
Read the full article here.
Fed Officials Warn Congress Against Rethinking Bank’s Design
Fed Officials Warn Congress Against Rethinking Bank’s Design
Two regional Federal Reserve presidents defended the public-private structure of the U.S. central bank in prepared...
Two regional Federal Reserve presidents defended the public-private structure of the U.S. central bank in prepared testimony they’re scheduled to deliver before lawmakers on Wednesday, saying it helps guard monetary policy from political interference.
“The Fed’s public-private structure supports monetary policy independence by ensuring a measure of apolitical leadership,” Jeffrey Lacker, president of the Richmond Fed, said in the text obtained by Bloomberg. Lacker and Esther George, head of the Kansas City Fed, are set to appear before a subcommittee of the House Financial Services Committee in Washington.
George said the Fed’s structure, created by Congress in 1913, “recognized the public’s distrust of concentrated power and greater confidence in decentralized institutions.”
The hearing, before the House Financial Services sub-committee on monetary policy and trade, will examine the governance of Federal Reserve banks and how it relates to the conduct of monetary policy and economic performance.
Calls for Fed reform have resonated in the U.S. presidential campaign, with Democratic party nominee Hillary Clinton joining calls for structural changes within the central bank and more diversity in the ranks of its leadership.
Fed Up
A coalition of pro-labor activists, known as Fed Up, published a paper in August, co-authored by former Fed economist Andrew Levin, arguing that the Fed should be transformed into a fully public institution, in line with central banks in most developed countries. Fed Up has been leading calls for the Fed to make its own ranks more diverse.
A separate study by Brookings Institution fellow Aaron Klein in August found that of 134 people who have served as regional Fed presidents since 1913, none were African American or Latino, and only six have been women.
“Our record in this regard, like that of many other organizations, shows a combination of substantial progress and areas where more can be done,” Lacker said on Fed diversity.
The Fed system’s Washington-based Board of Governors, appointed by the U.S. president and confirmed by the Senate, is considered a public agency. Its 12 regional reserve banks, however, are structured legally as private corporations owned by commercial banks in their districts. Their chiefs are appointed by non-bankers on their respective boards of directors, subject to a veto by the Board of Governors.
By Christopher Condon
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9 days ago
9 days ago