Does the Federal Reserve need reforming?
Does the Federal Reserve need reforming?
First, the Federal Reserve is a pretty complex place. There’s the Fed in Washington we talk about every time interest...
First, the Federal Reserve is a pretty complex place. There’s the Fed in Washington we talk about every time interest rates are changed (or not changed). Then there are 12 regional Federal Reserve Banks, each with a board of directors of nine people.
That’s where the Democratic Party, and activist groups on the left, are aiming their fire.
Currently, three of those nine directors are representatives of private banks (private banks are members of the regional Federal Reserve Banks). Another three are community representatives, but also elected by private banks. The remaining three are appointed by the Board of Governors.
Critics on the left, in addition to calling for more diversity within the Federal Reserve system, also want private banks gone from regional fed banks. “These private banks get a say on who’s on those board of directors and they get representatives on those boards of directors,” said Ady Barkan, campaign director of Fed Up, a left-leaning group that’s pushed for changes at the fed. “It’s an egregious example of regulatory capture.”
Barkan says that regional bank presidents tend to be more conservative, more hawkish on interest rates, than their counterparts in Washington D.C. He blames both a lack of diversity and the influence of private banks. “You can’t imagine for example that cable networks would get some special role in choosing people on the FCC,” said Andrew Levin, professor of economics at Dartmouth College.
But the fed has already undergone some major reforms to limit influence. Under Dodd Frank, the private-bank representatives who serve on regional boards don’t get to nominate regional presidents anymore. “The bankers themselves are not involved in the choice of that person,” explained Stephen Ceccetti, professor of economics at Brandeis International Business school. “That is the person who participates in monetary policy discussions and decisions.”
Ceccetti also argues that the conservative, hawkish leanings of some regional Fed presidents are actually at odds with bank profits. “Higher interest rates don’t help banks,” he said.
Lastly, he said, regional Fed banks aren’t responsible for actually regulating banks, “they don’t even get to see the stuff.”
Chair Janet Yellen herself has said that if the fed were redesigned from scratch, it would probably look pretty different than it did a hundred years ago, but, in her view, it works pretty well. Ceccetti agreed, saying “I don’t see that anyone’s been able to show that there’s any harm or pressure applied by the banks through their directors to the policy of the Federal Reserve.”
Changing the structure of the fed would require an act of congress.
By SABRI BEN-ACHOUR
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Hundreds expect to be arrested during D.C. health care protest
Hundreds expect to be arrested during D.C. health care protest
After Senate Republicans’ failure to repeal and replace the Affordable Care Act this week, hundreds of demonstrators...
After Senate Republicans’ failure to repeal and replace the Affordable Care Act this week, hundreds of demonstrators gathered on Capitol Hill Wednesday to urge their representatives to scrap future attempts to scuttle the health care laws and back universal coverage instead.
Of those who attended the protest, “about 600 or so people” had signed up expressing they were willing to be arrested, according to Jennifer Epps-Addison, president and co-executive director at the Center for Popular Democracy, one of the groups that planned the protest. “A few hundred more” came as supporters and legal observers, she said.
Read the full article here.
Climate Jobs for All
Climate Jobs for All
Other groups like the Sierra Club, Demos, 350.org, the Center for Popular Democracy, the Labor Network for...
Other groups like the Sierra Club, Demos, 350.org, the Center for Popular Democracy, the Labor Network for Sustainability, and the US Climate Action Network have also been discussing the climate jobs guarantee (CJG).
Read the full article here.
NY Daily News Letter to the Editor: Body Count
New York Daily News - April 15, 2014, by Josie Duffy - Re “Hardhat in fatal plunge” (April 15): How many more deadly...
New York Daily News - April 15, 2014, by Josie Duffy - Re “Hardhat in fatal plunge” (April 15): How many more deadly accidents have to happen before the construction and insurance industries drop their campaign to weaken workplace safety laws? In the past month alone, there have been two fatal construction accidents in Midtown, underscoring the dire need to protect and expand worker safety rules, especially the Scaffold Law. Instead, construction and insurance companies are pouring money into a high-priced campaign to convince Albany to weaken common-sense safety rules that hold building owners and contractors responsible if their safety lapses lead to injuries or deaths. Weakening the law would make dangerous jobs more deadly, especially for immigrant and Latino workers who, studies show, are more likely get hurt on the job. The latest construction deaths should end this debate. Source
Recovery? What Recovery?
BBC World Service - August 21, 2014 - CPD's Senior Attorney Ady Barkan, Action United Pennsylvania's Kendra Brooks, and...
BBC World Service - August 21, 2014 - CPD's Senior Attorney Ady Barkan, Action United Pennsylvania's Kendra Brooks, and Missourians Organizing for Reform and Empowerment's (MORE) Reggie Rounds joined BBC World Service from the annual Federal Reserve meeting in Jackson Hole, WY.
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A Five-Point Plan for Sanders Going Forward
A Five-Point Plan for Sanders Going Forward
When Bernie Sanders announced a year ago that he was running for president, few of his supporters—and probably not even...
When Bernie Sanders announced a year ago that he was running for president, few of his supporters—and probably not even Sanders himself—expected that he would actually win. It appeared that Sanders, like his hero Eugene Debs—who ran for president five times in the early 1900s on the Socialist Party ticket—was running mainly to inject progressive issues into the national debate and to help build a movement for radical change.
Debs never captured more than 6 percent of the popular vote (in 1912), but his campaigns played an important role in shaping Americans’ views. In the 1912 presidential race, Democratic candidate Woodrow Wilson (the eventually winner) and Progressive Party candidate Theodore Roosevelt co-opted many of Debs’s ideas. Congress eventually adopted some of the planks of the Socialist Party’s 1912 platform, including the minimum wage, child labor laws, women’s suffrage, Social Security, unemployment insurance, occupational health and safety laws, and the creation of the Labor Department.
So in “Debsian” terms, Sanders has already won. His attacks on the “billionaire class” have resonated with the American people. Far more than Hillary Clinton, he has tapped and channeled Americans’ anger over rising inequality, declining living standards, and the disproportionate political influence of big business and the super-rich. Although he calls himself a democratic socialist, Sanders is really championing a new New Deal—an American version of European social democracy.
And polls reveal that a majority of Americans agree with his policy agenda for challenging the political and business establishment. One CNN poll found that 71 percent of Americans—including 84 percent of Democrats, 74 percent of independents and 51 percent of Republicans—believe that our economic system unfairly favors the wealthy. Another poll by CBS and The New York Times found that 63 percent of Americans favor increasing taxes on wealthy Americans and large corporations to help reduce income inequality. Indeed, poll after poll has also showed that large majorities of Americans favor a campaign-finance overhaul, stricter Wall Street regulations, government-mandated paid family leave, and a federal minimum wage increase to $15 an hour by 2020.
Sanders has pushed Hillary Clinton—a liberal on domestic social issues, a centrist on taxes and business regulations, a sometime foreign policy hawk, and a less-than-ardent progressive—to the left. Indeed, the Democrats’ presidential primary has largely been fought on Sanders’s terms. His priorities—increasing the minimum wage, toughening Wall Street regulations, expanding Medicare and providing free public higher education, combating unemployment (particularly high among African-Americans), paid family leave, and ending the nation’s dependence on fossil fuels—have dominated the debates and pushed Clinton to adopt milder versions of his proposals. (In some areas, such as police racism, our biased criminal justice system, and mass incarceration, Clinton has taken the lead and Sanders has followed suit.)
In one year, Sanders has gone from being a relatively invisible senator from a small state—an outsider in the upper chamber and in mainstream politics, not even a registered Democrat—to being a political force to be reckoned with. Along with Elizabeth Warren, the Democratic senator from Massachusetts, he now leads the Democratic Party’s progressive wing.
Nevertheless, in the last few weeks it has become clear that Sanders will not be the Democratic Party’s nominee for president. In states that have already held primaries, Clinton has gained 12,989,134 (57 percent) of the votes compared with 9,957,889 votes (43 percent) for Sanders. In the delegate count, Clinton is beating Sanders 1,772 (54 percent) to 1,498 (46 percent). Sanders ran a remarkable campaign, but he’s come up short.
Ardent Sanders supporters who still believe that he has a chance to capture the nomination are simply wrong. Even if Sanders beats Clinton in all the remaining primaries (Virgin Islands, Puerto Rico, California, Montana, New Jersey, North Dakota, South Dakota, New Mexico, and the District of Columbia), he won’t have enough delegates to garner the nomination at the party’s Philadelphia convention. That reality requires Clinton and Sanders to recognize that they—and their supporters—need one another. It also begs the question: What should Sanders do? How can he build on his popularity and success in this year’s campaign to further his goal of transforming American society and politics?
Drawing on the ideas of many people—activists, journalists, scholars, and others, inside and outside Sanders’s camp—I suggest a five-point plan for Sanders and the Sanderistas. This plan gives the many liberals and progressives who have “felt the Bern” a road map to ensure that the 74-year-old Vermont socialist with a Brooklyn accent makes the transition from candidate for president to catalyst for change.
Step One
Between now and the convention, Sanders should fight to the end to get as many delegates as possible. Voters in the remaining primaries—all of which save the June 14 Washington, D.C., contest will be held on June 7—have the right to vote for Sanders or Clinton. Americans deserve to see how much support Sanders has for his progressive agenda. Moreover, having a competitive race with a large Democratic turnout is particularly important in California, which follows an unusual system in which the two candidates with the most primary votes, regardless of party, advance to the general election. Democratic registration in California has been surging, so a strong turnout by Sanders supporters could shut out Republicans from the run-offs for U.S. Senate and some tight congressional contests, and help guarantee more Democratic victories in November.
Between now and the June primaries, Sanders should stop criticizing the Democratic National Committee and Hillary personally and return to focusing on policy issues. After those primaries, he should negotiate a truce with Clinton. In exchange for Sanders suspending his campaign and endorsing Clinton before the Democratic convention, the two Democrats should agree on a strategy that gives Sanders and his followers a significant voice at the convention, during the fight against Trump, and in the run-up to the next Clinton administration.
Step Two
At the convention and through Election Day, Sanders will surely remain on the public stage. He will certainly get a prime-time speaking role at the Democratic convention, where he can reiterate his attacks on the nation’s economic and social injustices, attack Trump, and strongly endorse Clinton.
He should also use his leverage to shape the party’s platform on issues like Wall Street reform, the minimum wage, skyrocketing college tuition, and paid family leave, and insist that Clinton incorporate some of his key policy ideas into her campaign stump speeches. One sign that Clinton and DNC chair Representative Debbie Wasserman Schultz are taking heed of Sanders’s insurgency is the appointment this week of a majority of progressives to the party’s platform committee. They include AFSCME’s Paul Booth, former EMILY’s List head Wendy Sherman and Neera Tanden of the Center for American Progress. Also on the committee are House Democrats Luis Guttierez, of Illinois, Barbara Lee of California, and Maryland’s Elijah Cummings, along with Ohio State Representative Alicia Reece, all stalwart progressives. They join Sanders’s nominees Cornel West, House Democrat Keith Ellison of Minnesota, environment activist Bill McKibben, Arab American leader James Zogby, and Native American White House aide Deborah Parker. (Unfortunately missing from the committee are any progressive economists.)
Sanders has predicted that the convention could get “messy,” explaining that “that’s what democracy is about.” But Sanders should discourage his supporters from disrupting the convention inside and outside the hall. If his followers want to protest, there are plenty of targets in Philadelphia—big banks, insurance companies, McDonald’s, Walmart stores—where they can rally against the billionaire class. A prime target for protesters would be Verizon, where they could join the picket lines of employees who have been on strike since April.
When the convention is over, Sanders should energetically campaign for Clinton in key swing states and for progressive Democrats running for Congress in close races, in order to increase turnout among his supporters. He should make sure that his key staff members land posts on Clinton’s campaign and those of Democratic candidates in battleground races. These aides can help mobilize Sanders’s volunteers and followers to support Clinton. Also in this window, Sanders should escalate his attacks on Trump and remind his supporters of the damage that a Trump presidency would do to the country and to the progressive agenda.
Step Three
After Election Day, once Clinton has won the White House and the Democrats have recaptured the Senate, Sanders will be in a strong position to reshape the agenda of both the Democratic Party and the nation. New York Senator Charles Schumer, a liberal on social issues but a strong ally of Wall Street, may well be the Senate’s next majority leader. To balance the party’s leadership, Sanders should push for a progressive to replace Wasserman Schultz as head of the DNC. Strong candidates include such popular legislators as Senators Jeff Merkley of Oregon (the only Senate member to endorse Sanders), and Dick Durbin of Illinois, and House members Karen Bass and Xavier Becerra (both of California), Keith Ellison of Minnesota, and Jan Schakowsky of Illinois. The party’s next chair could also come from the ranks of such respected political veterans as Democracy Alliance head Gara LaMarche, Common Cause Director Miles Rapoport, or even billionaire environmentalist Tom Steyer. (Full disclosure: Rapoport serves on the Prospect’s board.)
Step Four
After January, when the new president and Congress take office, Sanders will become chair of the powerful Senate Budget Committee—assuming Democrats retake the upper chamber, as predicted. In that position, Sanders can influence federal budget, tax, and regulatory policy to advance a progressive agenda around financial reform, anti-poverty initiatives, health care, environmental sustainability, affordable housing, Social Security, labor law reform, workplace safety, paid family leave, and even campaign-finance reform, immigration reform, and the military budget.
One of his perks in that post will be to fill the committee’s staff with experts from universities and such progressive think tanks as the Center on Budget and Policy Priorities, the Center for American Progress, the Economic Policy Institute, the National Employment Law Project, and the Center for Economic and Policy Research. He will also be able to hold public hearings—in Washington, D.C., but also in cities around the country—on a wide range of issues. Hearings provide opportunities for ordinary Americans as well as experts to make their voices heard, gain media attention, and advance a progressive agenda. They can serve as forums that can help support grass-roots activists.
Sanders could also work with progressive think tanks and activist groups to create a “shadow cabinet” of experts on the left to parallel Clinton’s cabinet picks. This Sanders circle could issue regular reports on what the major federal executive agencies could be doing to advance an economic and social justice agenda, much as the Heritage Foundation’s Mandate for Leadership reports became the blueprint for the Reagan Revolution.
Step Five
Through the 2018 midterm elections and beyond, Sanders can help build the “grass-roots political revolution” without which, as he has said throughout his campaign, there is little hope for transformational change. Sanders’s campaign success has been fueled by the many grass-roots insurgencies that in recent years have challenged the political and economic establishment. These include Occupy Wall Street, Black Lives Matter, Fight for $15, campus campaigns to divest from fossil fuels and slash student debt, and crusades for women’s health care access, marriage equality, and gun safety. Sanders’s campaign helped give voice to these activists and their issues. They fed his campaign and were fed by it.
Many progressive politicians have promised to transform their electoral campaigns into ongoing movement operations, but few have had the patience or resources to do so. Many of Jesse Jackson’s supporters hoped that his presidential efforts in 1984 and 1988 would evolve into a permanent Rainbow Coalition of progressive activists, but it didn’t happen. After Obama won his brilliantly executed 2008 campaign—built by an army of seasoned political and community organizers who trained hundreds of thousands of volunteers in the art of activism—he created the nonprofit now known as Organizing for Action (OFA).
Many of the organizers who worked on that campaign went to work for OFA, hoping to build an infrastructure to keep campaign volunteers involved in issue battles in between election cycles. But OFA has not lived up to its early promise, in large part because Obama made it an arm of the DNC in a bid to build support for his legislative agenda.
Occasionally, however, the candidate and the movement forge ahead beyond the campaign. After the writer Upton Sinclair narrowly lost his 1934 bid to become California governor on a radical End Poverty in California (EPIC) platform, his followers built a statewide movement through EPIC clubs that revitalized the state’s Democratic Party into an effective political operation over the next several decades. Similarly, Senator Paul Wellstone of Minnesota, a former political science professor and community organizer, took seriously his responsibility to turn his electoral support into a broad statewide progressive movement. After he died in a tragic plane crash in 2002 while running for a third term, his supporters launched several organizations—including Wellstone Action, the Alliance for a Better Minnesota, and Minnesotans for a Fair Economy—to mobilize Minnesotans around issues and help recruit, train, and elect progressives to office.
Ever since Sanders first announced his plan to run for president, many journalists and activists have looked for signals that he was making plans, once the election was over, to transform his campaign into that “grass-roots political revolution” he’s been calling for. Not surprisingly, during the campaign Sanders and his top advisers have focused almost entirely on winning votes and delegates. But early on, some of his key operatives were already thinking about the longer term.
Next month, some progressive leaders inside and outside the Sanders campaign will convene a three-day meeting in Chicago for what they are calling a People’s Summit to strategize about how to build on the Sanders campaign over the long haul. Neither Sanders nor his aides have agreed on what a post-campaign operation would look like. But many understand that Sanders is in a unique position to use his influence and fundraising ability to build an organization or network to mobilize his supporters that, in the short term, can push President Clinton and the Democrats in Congress to the left on key issues like the minimum wage, health-care reform, Supreme Court nominees, and Wall Street regulation, and, in the longer term, can become an ongoing force for progressive change.
Can Sanders sustain the momentum of his campaign into the marshy terrain of movement-building? He has the capacity to raise money from the millions of people who helped him collect more than $200 million for his campaign. He has an unprecedentedly large list of volunteers who could form the basis of an ongoing organization. How many will want to participate in or contribute to a Sanders-led movement is anybody’s guess. How Sanders deploys these lists, and how he will connect with the many existing progressive groups—unions, environmental groups, community organizing networks, and others—is another open question.
Election campaigns have a set of rules, and a predictable beginning, middle, and end, that helps bring people together for a common goal—electing a candidate on a particular date. Movements are more complicated. The American progressive movement is a diverse mosaic with many groups that compete for attention and funding. They work on many different issues. Some are more willing than others to participate in coalitions, agree on a common set of issue priorities, and forge compromises on legislation. Some are reluctant to endorse candidates or get involved in election campaigns. Many of the activists affiliated with these groups came together to support Sanders, but there is no guarantee that they won’t go their own ways after Election Day.
As the mayor of Burlington, Vermont, for eight years (1981-89), Sanders helped build a political coalition that not only adopted progressive laws and helped build progressive institutions but also stayed in power for three decades after he left office to run for Congress. In the House and Senate, however, Sanders been known as more of a gadfly than a coalition-builder.
But even as a figurehead, Sanders can play an important role in strengthening the left. Sanders can select a number of key issues and work closely with unions and other groups that are already working on those causes. He can be their champion and give them more visibility. He can show up at their meetings and rallies and support their causes. He can raise money to support existing local, statewide, and national groups—like National People’s Action, Planned Parenthood, MoveOn, the Center for Popular Democracy, the Sierra Club, Black Lives Matter, United We Dream, and many others—that recruit and train people in the skills of citizen activism and campaign mechanics, and that help elect progressive Democrats to local, state, and national office.
Going into the 2018 midterm elections, and beyond, Sanders can focus attention on helping a select group of progressive Democrats win primary battles and support their campaigns against Republicans running for local and state offices as well as Congress. In that way, he can help groups build and train a “farm team” of progressive candidates to run for myriad offices, laying the groundwork for expanding the progressive caucuses in the House and Senate.
As part of this inside/outside strategy, Sanders could work with progressive activist groups and his progressive Senate and House colleagues to identify a few key legislative priorities to build multi-year campaigns around these issues. He and his network can convene an annual “Feel the Bern” conference (and some state-level summits as well) to bring together the many strands of the progressive movement, highlight their commonalities, celebrate their victories, showcase their leaders, organizers, and candidates, and identify the key battles on the horizon.
This five-point plan will likely meet with resistance from some Sanders supporters who argue passionately that he can still win the Democratic nomination. Sanders’s string of primary wins has made the notion of a President Sanders begin to seem at least plausible. His favorability ratings have consistently exceeded Clinton’s. He has shown that he can raise significant sums from millions of small-dollar contributors without relying on Wall Street, corporate America, and the super-rich to bankroll his campaign. He has attracted huge crowds and recruited large numbers of volunteers in blue and red states alike. He has surprised many skeptics with his knowledge of policy details and his first-rate performances at Democratic debates.
Indeed, it is remarkable how well Sanders has done despite what he and his supporters have justifiably called a “rigged” system. His backers are correct that some of the party’s rules—regarding the debate schedule, super-delegates, and other matters, many of them mishandled by Wasserman Schultz, the transparently pro-Clinton chair of the Democratic National Committee—put Sanders at a disadvantage.
Sanders’s enthusiasts hope that they can persuade enough super-delegates to switch their loyalties away from Clinton. Their main argument is that Sanders has a better chance than Clinton to beat Trump. In a race once regarded as a coronation for Clinton, recent polls of registered voters show her in a statistical dead heat against Trump. Sanders, by contrast, who enjoys much higher favorability ratings than Clinton, bests Trump, 54 percent to 39 percent, in a new NBC News/Wall Street Journal poll.
Of course, Sanders has not yet been subjected to the kind of opposition media campaign that he would certainly face were he the nominee. Slate’s Michelle Goldberg noted in February that Republicans were already salivating about how they would excavate the radical speeches and writings from Sanders’s past, seek to discredit him as an unpatriotic Marxist ideologue, and exploit “his youthful opposition to the CIA and his anti-military leanings” if he were to win the nomination. Republicans would not only paint Sanders as an extreme “tax and spend” liberal but also try to transform him, in the public’s imagination, into a supporter of Fidel Castro, Daniel Ortega, and Mao Tse-tung. This assault may not work with under-40 voters for whom the Cold War is a distant memory and who associate socialism with Scandinavia, not Cuba or China. But such attacks could certainly weaken many undecided voters’ support for Sanders.
By contrast, most Americans already know Clinton’s vulnerabilities since she’s been in the public arena for decades. This accounts for her low favorability ratings, but it also somewhat inoculates her from GOP efforts to further destroy her support. And Clinton is likely to win a surge in Democratic and independent support once she wins the nomination, just as Republicans began rallying behind Trump once he became his party’s presumptive nominee.
And the “Sanders or bust” crowd is playing into Trump’s hands. Some even say they won’t support or vote for Clinton if she wins the Democratic nomination, arguing that she and Trump are equally undesirable—two sides of America’s corrupt corporate-dominated political system. The media have exaggerated the number and ferocity of Sanderistas who hold these views, but if enough Sanders followers refuse to vote for Clinton, it could help Trump win in several key battleground states like Colorado, Pennsylvania, Nevada, and Florida, and possibly hand Trump the White House.
Some Clinton supporters—particularly among pundits and journalists—have also turned nasty, taking to the blogosphere and talk shows to trash Sanders’s ideas and to attack his most zealous enthusiasts as sexist, racist, and rude. But Clinton knows she needs Sanders’s supporters to win the White House, which is why she has adopted watered-down versions of Sanders’s agenda and why she has tread lightly in criticizing Sanders—at least publicly.
Sanders himself recognizes that his primary goal of making America a more humane and fair society will be made much more difficult if Trump becomes the nation’s president. Despite his differences with Clinton over policy issues, Sanders—as both a politician and a leader of a social insurgency—knows that his movement’s ability to influence the nation’s political culture and public policy will be much greater with her, rather than Trump, in the White House.
Electing Clinton will not produce the “political revolution” that Bernie has been calling for. Indeed, he acknowledged that even if he won the White House, little would change without a significant grass-roots movement to mobilize Americans to challenge corporate America’s disproportionate influence on our political life. Sanders’s supporters don’t want to give up on his election, but they may end up with something more lasting in the end—a generation-long movement. The five-point plan is a good place to start.
By Peter Dreier
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A not-so-welcome home Ninguna Bienvenida
A not-so-welcome home Ninguna Bienvenida
Theirs was not a welcome wagon. Instead, scores of protestors gathered outside of the Trump Tower offices and elsewhere...
Theirs was not a welcome wagon.
Instead, scores of protestors gathered outside of the Trump Tower offices and elsewhere in Manhattan to mark the President’s first visit to his hometown since his inauguration.On May 5, hundreds of demonstrators assembled at DeWitt Clinton Park in Hell’s Kitchen to rail against President Donald Trump’s policies, including his stance on immigration and efforts to repeal Obamacare.
Led by the Working Families Party, the rally featured a series of speeches by activists, prior to the crowd marching several blocks south towards the U.S.S. Intrepid, where Trump was to speak that evening.
Read the full article here.
The Anguish of Jeff Flake
The Anguish of Jeff Flake
Ana Maria Archila, one of the protesters who spoke to Mr. Flake on his way to the Senate Judiciary Committee meeting on...
Ana Maria Archila, one of the protesters who spoke to Mr. Flake on his way to the Senate Judiciary Committee meeting on Friday.
Watch the video here.
Trabajadores expresan a través del arte sus experiencias como inmigrantes
EFEUSA – September 17, 2013 - Nueva York, 17 sep (EFEUSA).- Un grupo de trabajadores inauguró hoy una exposición de...
EFEUSA – September 17, 2013 -
Nueva York, 17 sep (EFEUSA).- Un grupo de trabajadores inauguró hoy una exposición de pinturas, fotografías y vídeos en la que plasmaron sus experiencias personales como inmigrantes y sus reflexiones sobre el valor de la ciudadanía, con motivo del Día de la Ciudadanía.
La exhibición “¿Qué significa para mi la ciudadanía?” realizada en la sede del sindicato Workers United en la ciudad de Newark (Nueva Jersey), es una mezcla ecléctica de dibujos, pinturas y fotografías en blanco y negro y a color, representativo de la diversidad de los propios miembros, que provienen de lugares tan lejanos como Europa del Este, América Latina, América del Sur y Asia.
Entre éstos está la ecuatoriana Naja Quintero, empleada de una guardería, quien participa con dos pinturas, y en una de ellas plasmó lo que sintió cuando llegó a Nueva York por primera vez, hace 14 años.
“Eran las doce del mediodía cuando llegué al aeropuerto John F. Kennedy y crucé Manhattan a pleno sol. Me deslumbró la ciudad. Creo que a todos nos pasa, es la primera impresión, majestuosa y colorida. Me sentí como una estrella”, dijo a Efe Quintero.
La ecuatoriana pintó a un grupo de inmigrantes de diversos países mirando hacia el agua y al otro lado un barco, la Estatua de la Libertad y de fondo, los rascacielos de Nueva York, entre ellos el imponente edificio Chrysler.
“Pinté un bote porque cuando cruzaba Manhattan veía el agua y a gente contemplando la belleza del paisaje”, agregó Quintero, quien llegó a nueva York para reencontrarse con su madre, a quien no vio ni tuvo contacto con ella durante 38 años.
“Tenía tres años cuando ella vino a Nueva York y me dejó con mis abuelos que luego compraron casa en otro lugar y perdimos el contacto con ella”, recordó Quintero, que localizó a su progenitora a través de amistades con los que ésta mantenía contacto en Ecuador.
La emigrante, que era maestra en su país, destacó además que se esforzó por aprender inglés para tomar su examen de ciudadanía.
“Cuando me informaron que había aprobado el examen me dije ‘Naja, esto es como una gran escalera’ donde el siguiente paso fue obtener la ciudadanía”, destacó Quintero, quien expresó en su segunda obra precisamente esa experiencia.
Para ella, la ciudadanía es una planta y su semilla, es el momento en que los emigrantes llegan a Estados Unidos, explicó mientras agregaba que la ciudadanía también significa poder votar e integrarse a una nueva vida.
“A mi me gusta estar integrada en la política, votar, es un deber cívico. Estudié durante un año para ese reto (para el examen de ciudadanía). Yo decía ‘yo puedo, yo puedo’”, dijo emocionada la ecuatoriana, quien preside el comité de arte del sindicato 32BJ, que representa a empleados de mantenimiento, porteros, encargados de edificios privados de vivienda y de guarderías, entre otros, la mayoría latinos.
“Este proyecto de arte pone un rostro a los 11 millones de inmigrantes indocumentados que son una parte indispensable de nuestras comunidades y que necesitan que el Congreso actúe ahora” (por una reforma migratoria), dijo Kevin Brown, director de la 32BJ en Nueva Jersey.
“Los inmigrantes son los estadounidenses. Son nuestras madres y padres, hermanos y hermanas, socios, hijos, abuelos, compañeros de trabajo, vecinos y amigos. Como miembros de la comunidad creativa, tenemos el compromiso de ver y mostrar la humanidad de la historia de la inmigración”, agregó.
Brown destacó que a través de la música, el teatro, la literatura, el cine, la televisión, la danza y otras expresiones de arte, los “inmigrantes y refugiados artistas visuales han definido y redefinido nuestra cultura estadounidense y la historia. Ellos ayudan a renovar nuestra historia nacional”.
Source
Progressives Do Not Take The Fed Seriously. Meet The People Trying To Change That
Progressive activists have no shortage of ambitious economic policy goals. They include the $15 minimum wage, Social...
Progressive activists have no shortage of ambitious economic policy goals. They include the $15 minimum wage, Social Security expansion, Medicare for all and debt-free college -- to name just a few.
One item not on the list? Federal Reserve policy to create jobs and boost wages.
But a growing number of liberal-leaning economists and a new, Fed policy-centered coalition of progressive groups are trying to change that. They are on a mission to keep the Federal Reserve from raising interest rates until the economy sees real wage growth. It is a cause that they argue is essential to raising living standards and reducing income inequality, and they are making their case in policy papers, meetings with Federal Reserve officials and yes, even demonstrations. They believe that President Barack Obama has neglected the Fed -- even failing to fill two vacant seatson the Federal Reserve Board of Governors -- to the detriment of paychecks around the country.
The progressive economists and activists merely recognize what Wall Street has long accepted as true: The Fed’s monetary policy is one of if not the most important single factors in the real economy. In that battle to guide Fed policy, Wall Street is joined bythe GOP, which routinely pressures the Fed to rein itself in.
The degree to which the Fed turns the faucet of money on or off has a direct effect on the jobs available to Americans -- and the wages they are able to demand once they are working. In fact, slowing wage growth is a feature of Fed policy, not a bug. A decision to limit the flow of money, even if based on sound concerns about inflation, is designed to lower prices by putting thousands of Americans out of work and driving down wage growth.
Janet Yellen, a liberal-leaning economist who has long focused on wage growth, runs the Fed. Progressives successfully championed her for the post, derailing the bid of Obama’s top pick of Larry Summers, yet there has barely been a peep from them as Yellen and her colleagues consider putting the brakes on the economy.
To understand the case the progressives are making, it's important to know a little bit about the Fed, how it works and why it matters so much to the American economy.
How Does The Fed Work?
In controlling the country’s money supply, the Federal Reserve System, more commonly known as the “Fed,” is charged with what is often called a “dual mandate”: maximizing employment and maintaining stable prices. It does this primarily by adjusting the Federal Funds Rate, which is the interest rate at which banks lend to one another overnight using funds kept at the Federal Reserve. (It also can adjust theDiscount Rate, which is the rate at which the Fed lends to banks directly.) The Fed body responsible for adjusting the rate is the Federal Open Market Committee, which consists of 12 members -- seven presidentially appointed Federal Reserve Board governors, including the chair of the Fed, and a rotating group of five regional Federal Reserve Bank presidents.
How the Fed chooses to adjust the money supply is what is known as monetary policy. In a weak economy, the Fed is inclined to engage in monetary stimulus, which means lowering rates to prompt a virtuous cycle of economic growth. Banks respond to the cheaper credit available to them by providing cheaper credit to consumers and businesses. Consumers benefit from lower interest rates on home mortgages, cars and student loans. Businesses get lower interest rates on the loans they need to pay employees, maintain inventory and pay other bills. The money consumers and business owners save on financing their debt then gets cycled back into the economy in demand for goods and services. This in turn stimulates hiring, lowering unemployment and ultimately raising wages as employers compete for workers.
If economic growth gets higher than the Fed believes is consistent with its inflation target, the Fed contracts the money supply, raising rates to prevent excessive inflation. That is because if debt remains cheap, wages could grow so high that businesses must constantly raise prices to remain afloat. People’s financial assets decline in value, as does the purchasing power of workers’ wages. The Fed adjusts rates with a target of 2 percent inflation, in an effort to avoid levels of inflation that would “reduce the public's ability to make accurate longer-term economic and financial decisions.”
While the 2 percent target has become sacred in Fed policy circles, it is based on no more evidence than any other figure -- and those other figures, such as target unemployment, are adjusted routinely. Taking some of the halo off the 2 percent number, some economists argue, would give the Fed much more flexibility to help workers.
What is often lost in the dry, bloodless discussion of raising rates is the consequences for regular people when the Fed moves in that direction. The goal of raising rates -- not an unfortunate, unintended consequence, but the actual policy goal -- is to throw people out of work and drive down wages. As people suffer, as their confidence is weakened, as their sense of dignity is undermined, they become meeker in the job market and as a result they stop pushing for a raise, or they accept a new position at a lower salary. With wages suppressed, companies don’t need to raise prices in order to continue growing profits, and the pressure on inflation is alleviated.
The Fed, liberal economists say, is planning to cause all of this pain with precious little evidence that it is even remotely necessary. Despite years of steady economic growth and rising employment, prices remain well below the Fed's inflation target.
There is, in fact, no evidence of much price inflation at all.
So Why Cause Needless Suffering?
The degree to which the Fed has emphasized employment and wages, versus the threat of inflation, has varied greatly over the decades based both on its leadership and economic circumstances. Dean Baker, co-director of the Center for Economic and Policy Research, notes in his book The End of Loser Liberalism: Making Markets Progressive, that starting in 1980, the Fed shifted its monetary policy in favor of the anti-inflation prong of its dual mandate at the expense of full employment. Paul Volcker, Fed chair from 1979 to 1987, increased interest rates to wipe out high inflation, allowing the unemployment rate to reach almost 11 percent in 1982. Since then, the Fed has shifted its monetary policies modestly based on circumstances. But with rare exception, it has not allowed unemployment to get low enough to generate significant wage growth for the large majority of American workers.
The severity of the recent recession yielded an unusually broad consensus in favor of keeping rates low. Since 2008, under both the Republican-appointed Fed chair, Ben Bernanke, and the current Democrat-appointed chair, Yellen, the federal funds rate has remained at what is known as the “zero lower bound” – between 0 and 0.25 percent. In fact, the Fed went even further, purchasing trillions in securities between 2008 and 2014, in a program known as quantitative easing. The aim of the program was to keep credit flowing by maintaining high demand for public and private debt.
Now, after positive GDP growth in 19 of the last 21 quarters since 2011 and the official unemployment rate nearing 5 percent, Yellen has indicated that the Fed will soon raise the rate. How much to raise the rate -- and when the Fed will do that -- is unclear. Unemployment remained flat from March to April, which may make the Fed more cautious. The next fed committee meeting is June 16-17, and the results of the meeting will be watched closely.
What Would Progressive Fed Policy Look Like?
Baker and other economists think the Fed should allow wages to grow more substantially before raising rates.
Josh Bivens, research and policy director of the Economic Policy Institute, argues in an August 2014 fact sheet that the Fed should look for 3.5 percent growth. In the first quarter of 2015, wages were up 2.6 percent from the year before -- a growth rate that many economists say doesn't have a real impact on regular people's lives.
Jared Bernstein, senior fellow at the Center on Budget & Policy Priorities and former economic adviser to Vice President Joe Biden, shared Bivens’ preference for the Fed to wait for 3.5 percent nominal wage growth before raising the rate.
“The unemployment rate is within distance of [the Fed's full employment target], and yet inflation and wage pressures are nowhere to be seen,” Bernstein said. “My admonitions here are not to slow the economy down too soon, and that would be until GDP growth reaches workers through their paychecks.”
In short, these economists want Yellen to act more like Chair Alan Greenspan did in the late 1990s. At the time, Greenspan repeatedly declined to raise rates, claiming that the “softness in compensation growth” continued to make employment a greater concern than inflation. In doing so, Greenspan faced down criticism both from the financial industry and dissent from Fed committee members like Yellen, then the Fed governor.
The result of Greenspan’s decision, many argue, was one of the few periods of broadly distributed wage growth since before the 1973 recession. From 1995 to 2000, the bottom 20 percent of workers saw double-digit wage increases.
It is an odd turn considering that Greenspan’s handling of the dot-com and housing bubbles, and libertarian ideology, have made him a bête noire of the left.
“A lot of economists do not like to acknowledge it, but Greenspan -- and I have trashed him endlessly -- was not an orthodox economist,” Dean Baker said. “Greenspan did something nobody thought was right, and he was right. High school degree workers were getting pay raises. It was not Clinton, but Greenspan who did it.”
These economists believe that postponing a rate hike is risk-free, because price inflation has remained defiantly low for so long. From April 2014 to April 2015, personal consumption expenditures excluding food and energy -- the metric the Fed uses to measure inflation -- went up just over 1 percent, according to the Bureau of Economic Analysis. That level of price inflation occurred during a period in which the economy created nearly 2.8 million more jobs, bringing the official unemployment rate from 6.2 percent to 5.4 percent, according to the Bureau of Labor Statistics.
In the long term, Bivens and Baker would like to see the Fed be altogether more concerned about wages and employment than inflation. They believe that the Fed’s price inflation target could go higher than 2 percent without tolerating dangerous inflation rates. A higher inflation target would have allowed the Fed to pursue a more aggressive quantitative easing program and push wages upward faster.
Baker says that the Fed should be most concerned about the rate at which prices are inflating, rather than a particular percentage range. And he believes that an uptick in inflation is rarely so abrupt as to be beyond adjustment.
“If we had a jump in inflation even from 1.5 percent to 2 percent and then 2.5 the next month, then I’d say we should hit on the brakes,” Baker said.
Other economists from major world financial bodies, like Olivier Blanchard of the International Monetary Fund and Eric Rosengren of the Federal Reserve Bank of Boston, have also publicly endorsed higher inflation targets.
More conservative economists argue that even if prices remain stable and low, a rate hike would head off asset inflation in, for example, the housing and stock markets. Mark Calabria, director of financial regulation studies at the Cato Institute, expressed concern that the Fed’s low interest rates have allowed financial asset prices and corporate leveraging to reach “disconcerting” levels.
The liberal economists share Calabria’s concerns about asset bubbles, but believe that the Fed has tools other than raising interest rates at its disposal to address them.They note that the Fed has the power to regulate the banks and other commercial institutions with which it does business.
The Fed, they say, also has a bully pulpit that can be used to dampen the excessive expectations of growth in a particular industry that lead assets to be overvalued. A July 2014 Monetary Policy Report by the Fed Board of Governors warned against high asset prices in the social media and biotechnology industries.
“For whatever reason, [Yellen] has not done it since,” said Baker of the Fed’s July 2014 cautionary remarks. “If you show the evidence that these are overpriced, it will have an impact on prices.”
How’s The Economy Doing?
Yellen has been a consistent advocate of monetary stimulus, keeping rates low and buying financial assets. As chair, Yellen has adopted a consensus-driven approach to her leadership, including listening to some more inflation-wary members of the Fed committee.
Baker estimates that a sustained series of rate hikes would reduce the economic growth rate by half a percentage point, and the economy would create 500,000 fewer jobs per year.
The low official unemployment rate hides the fact that millions of Americans have settled for part-time work or dropped out of the labor force entirely. The Bureau of Labor Statistics estimates that when counting workers employed part-time for economic reasons, and those who have not looked for a job recently due to discouragement, the unemployment rate was 11.6 percent from the middle of 2014 through the beginning of 2015. Tellingly, despite the creation of 2.8 million jobs from April 2014 to April 2015, labor force participation remained flat at 62.8 percent.
Several small business owners who spoke to The Huffington Post also expressed concern about the fragile state of the recovery, and warned against a premature rate hike.
Mike Brey, CEO of Hobby Works, which has several retail locations in Maryland and Virginia, said that business only began to rebound in the latter half of 2014. Hobby Works employs 38 people. Brey recently rehired a worker for Hobby Works’ warehouse location, and plans to hire another employee if sales continue to pick up.
“I feel like we are in a recovery, but it has taken pretty long to get here,” Brey said. “To me, it still feels a little bit uneasy.”
Brey says the lower that Fed rates are, the better terms he gets on bulk purchases from wholesalers. A single quarter-point rate hike would probably not affect what Hobby Works does on a “day-to-day basis,” he says. Rather, he is more worried about the effects of a rate hike on the still-precarious consumer confidence of the lower-middle and middle-class consumers who frequent his stores.
Ron Nelsen, owner of Pioneer Door, a retail garage door company in Las Vegas, says that garage door sales have increased as consumers have begun buying homes in large numbers again.
“I think true consumer demand has been here for a year or two,” Nelsen said. “Maybe the end of 2013 and last year really felt like people were opening up their pockets again.”
Nelsen worried that a Fed rate hike could hurt the consumers who buy his company’s garage doors.
“If it affected my customers’ base disposable income, it would be huge,” he said.
Mobilizing Main Street -- and Martin Luther King Jr. Boulevard
Having ideas about what the Fed should do is one thing, and actually influencing the Fed’s decisions is another thing entirely. It is unclear exactly how to change a Fed decision, but it undoubtedly takes more than the public comments of a few economists.
Fed Up, a new coalition of community organizations and labor unions led by theCenter for Popular Democracy, is trying to turn the complex policy arguments of economists like Baker, Bivens and Bernstein into a grassroots political movement. The goal is to get the Fed to recommit itself to genuine, equitable full employment policies. In particular, Fed Up, whose main concern is aptly summed up by its homepage whatrecovery.org, has mobilized urban communities of color to lobby the Fed for pro-employment monetary policies that account for the disproportionately high unemployment and economic hardship levels in their communities.
Ady Barkan, a Center for Popular Democracy staff member who directs the Fed Up campaign, said that while Fed policy is more difficult to explain to community activists than issues like the minimum wage and Medicaid access, the coalition has made headway in educating people about the importance of the Fed to their daily lives.
“We have developed materials explaining why the Fed matters and why higher interest rates could hurt you,” Barkan said. “It is not just that it will mean higher mortgage rates, car rates and student loan rates, but that when the economy slows down, workers have less leverage. We are finding that people are excited by it and recognize why it matters to them.”
Fed Up released a study in March, "Wall Street, Main Street and Martin Luther King Jr. Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full-Employment Mandate," highlighting the still-high unemployment rate among black Americans, and lopsided impact of the Great Recession on black wealth and wages. In 2014, the study reports, black unemployment remained at 11.4 percent, while it was 5.3 percent for whites.
The study notes that even prior to the recession, African-Americans were losing ground economically. The median black worker suffered a 3.1 percent wage cut from 2000 to 2014, the study says, compared to a 2.5 percent increase for the median white worker. Between 2007 and 2013, median household wealth declined 43 percent among African-Americans, compared with 27 percent for whites.
In addition to calling on the Fed to postpone any planned rate hikes, Fed Up is asking for structural reforms that would broaden its mandate and subject it to greater influence from working people. It wants the Fed to study the effects of inequality and how non-monetary policies like the minimum wage affect the economy. It recommends making the selection of regional Fed presidents more transparent and open to public input. And it is demanding that Fed officials meet regularly with working people and community organizations.
Fed Up organized press conferences in eight cities with regional Federal Reserve banks in March to publicize the study’s findings about racial disparities in wages and employment. In November, Fed Up activists met with Yellen, Vice Chair Stanley Fischer, and Governors Lael Brainerd and Jerome Powell in Washington.
Barkan believes the Fed governors were receptive to Fed Up’s stance.
“They listened very carefully and asked good follow-up questions and seemed to be really moved and grateful for the conversation,” Barkan said.
While Fed Up has convened meetings and published reports, it has not shied away from public protests. In what the Wall Street Journal called “a first for Jackson Hole,”Fed Up sent a group to protest a possible rate hike at the Fed’s annual Jackson Hole, Wyoming, meeting in August 2014. The protests yielded a meeting between the group and Kansas City Fed President Esther George. Fed Up says it has scheduled additional meetings with regional Fed presidents.
Lobbying the Fed is a delicate task because it is seen as novel -- even subversive. The Fed has traditionally been viewed as a nonpartisan, technocratic institution that should be left to its own devices by politicians and political movements.
But progressive advocates argue that the Fed has not always been impartial. Regional Fed presidents and Fed governors routinely survey business and financial leaders to help make interest rate decisions. And the mere fact that regional Fed presidents are largely elected by private bankers, these progressives say, means that the financial community has an outsize say in Fed policy.
“What central bank independence has really meant is independence from all sectors except the financial sector,” Bivens said. “Organized labor? Of course they should not be allowed to have a voice at the central bank, but the financial sector does.”
What's more, progressives note, the political right has wasted no time heaping criticism on the Fed for what it perceives as excessive stimulus. And attacking the Fed has not just been a campaign trope for tea party-friendly presidential candidates like Rick Perry. Congressional Republicans regularly pressure Yellen, too. In an April hearing, Rep. Scott Garrett (R-N.J.), a member of the House Financial Services Committee, complained to Yellen that the Fed was supposed to check Congress’ desire for looser monetary policy, but now Congress found itself trying to check the Fed.
A couple months before that, Garrett questioned Yellen about a speech she gave on economic inequality. He argued that the timing of the speech -- it was a few weeks before the 2014 midterm elections -- "clearly indicate[s] that the Fed is already acting and making decisions clearly on a partisan political basis."
“In recent years, [the Fed is] just getting criticized up and down from the right that they are priming the pump for hyperinflation,” Bivens said. “If the right is going to pressure them, pressure from the left is more important than ever.”
Source: Huffington Post
7 days ago
7 days ago