The Empty Center: Challenge and Opportunity for Progressives
Huffington Post - January 15, 2015, by Robert Borsage - Legislators in the new Congress haven't even cut the curtains...
Huffington Post - January 15, 2015, by Robert Borsage - Legislators in the new Congress haven't even cut the curtains for their offices, but it is already clear that the right has no clue and the "center" offers no hope.
Republican Mitch McConnell, newly installed as Senate majority leader, announced that his goal is not to be "scary." House Republican leader John Boehner declared his troops had to prove Republicans can "govern."
But Republicans are already tripping over those low bars. They stuffed the legislative docket with "message" bills to repeal Obamacare, rollback immigration reforms, and cripple agencies that protect the environment (Environmental Protection Agency), consumers (Consumer Financial Protection Bureau), workers (the Labor Department) and taxpayers (cutting the IRS ability to police tax dodgers). They've already proved adept at backroom maneuvers to tuck Wall Street favors in "must-pass" legislation.
The truly "scary" agenda, however, is the legislation that McConnell and Boehner have teed up for bipartisan approval: authorization of the Keystone Pipeline is already on the president's desk; next comes fast track trade authority to grease the skids for the Trans-Pacific Partnership trade deal, corporate tax "reform" that "simplifies" the tax code and lowers rates, and inevitably a budget that will posture on a budget deficit that should be larger while ignoring the debilitating deficits that must be smaller (the public investment and trade deficits). It will starve already inadequate programs for the vulnerable, while larding more on an already bloated Pentagon.
These "bipartisan" measures assume that the best thing to do in a hole is to keep digging. Progressives will have their hands full simply trying to stop the parade of horrors, which will require either Democratic unity in the Senate or firm presidential vetoes -- both less than certain trumpets. Obstructing the horrible, however, necessary, is not sufficient. Republicans already suffer from the absence of any positive agenda. Their pollsters have finally accepted that they must find a populist voice, but thus far that entails not much more than donning a hardhat atop their uptown garb.
Confront and Counter
Progressives must find ways not simply to confront the Republican idiocies, but to counter with a bold reform agenda that commensurate with the size of our problems.
We suffer an economy that does not work for most Americans even in the fifth year of "recovery." This can only happen because the rules have been systematically rigged to favor the few. Changing that reality requires far more than a few sensible reforms. It requires taking on fundamentals at the heart of our economy: transforming our global tax and trade policies, shackling Wall Street, progressive taxes to pay for vital public investment, empowering workers and curbing perverse CEO compensation policies, reviving anti-trust, curbing money in politics, cleaning up Washington, capturing a lead in the green industrial revolution.
In this effort, President Obama will be at best a sunshine general. Hopefully, he will continue to frame vital wage reforms -- calling for lifting the minimum wage and guaranteed sick days and family leave, enforcing overtime, procurement reforms that give preference to "good jobs" employers. He will continue to build his legacy on the environment. But on fundamentals -- trade, Wall Street, public investment, anti-trust and more -- he's more part of the problem than the solution.
At the national level, Senators Elizabeth Warren, Sherrod Brown, Jeff Merkley, Bernie Sanders have begun to take the lead. A broader formal or informal populist caucus in the Senate, and the strengthened Congressional Progressive Caucus in the House can help define and drive big alternatives, with outside allies rallying support and taking the names of the Blue Dog or Wall Street Democrats who don't get it. Major debates -- on trade, on taxes, on budgets -- can be occasions for offering real alternative directions.
The danger here is that the debate turns quickly to framing "message" bills rather than debating fundamental reform. The recent rollout of the Democratic middle-class tax cut shows the perils. The proposal excels for partisan positioning. It offers working Americans real money -- a $2,000 tax cut, paid for by taxes on the banks and the rich. It puts Republicans in a box, since they won't raise taxes to pay for the equivalent. But a tax cut competition with Republicans is something of a mugs game. It accepts the conservative notion that tax breaks offer workers the only hope for a raise. And by devoting progressive taxes to tax cuts, it defaults on addressing our debilitating public investment deficit. If Democrats aren't making the case for rebuilding our starved public sphere -- including basic infrastructure like roads, rail and sewers, providing the basics for schools, investing in R&D -- then we will all suffer.
The debate about agenda should not be left to legislators. The January AFL-CIO convocation on raising wages -- which will be echoed in forums across the country -- provides one example of how progressive groups can help frame and drive the reform debate.
Local Action; National Megaphone
With Washington largely gridlocked, progressives have sensibly turned more attention to driving reform at the state and local level. Given Republican gains at the state level, many of those battles will be defensive, against their assault on unions and worker rights, and their efforts to rollback environmental protection while constricting the rights of women, voters, and the vulnerable.
But in blue states like California and in blue cities even in the midst of red states, progressives should be championing fundamental reforms. Already significant progress has been made in raising the floor under workers -- raising the minimum wage and extending basic worker guarantees. Procurement reforms can offer preference to good jobs employers, and enforce buy America provisions. As California Governor Jerry Brown has shown, states can drive the climate debate, extending state renewable energy standards and providing markets for renewable energy. State taxes could favor companies that maintain less obscene ratios of CEO to worker pay.
None of this will come easy, given the hold of corporate interests over state and local politics. Citizen groups like National People's Action, PICO, Jobs with Justice, LAANE, the Center for Popular Democracy along with labor unions like SEIU and AFSCME are already driving change. What is needed is a coherent strategy to provide a national megaphone that provides local reforms with national attention, demonstrating that progressives are not only on the case, but also on the march.
People in Motion
As the film Selma correctly makes clear about the transformation of civil rights in the 1960s, none of this will get done without people's movements -- people in motion protesting the rigged game and demanding a better deal.
Occupy Wall Street set the stage, awakening Americans and the mainstream media to the Gilded Age inequality that too many had come to accept as natural. The demonstrations of fast food workers and low wage government workers have begun to challenge the Wal-Mart low road in the economy. What progress has been made on immigration reform has come from aggressive popular mobilization. The environmental movement has begun to show its force in the streets. It would be useful to link with money in politics groups to expose and confront the entrenched interests and corrupted politicians that cling to climate denial. Students, graduates and parents should be rallying against the absurdity that getting a college education all say is necessary requires taking on debt burdens that all agree are ruinous.
What the labor movement, the civil rights movement, the women's movement, the gay rights movement, the Latino movements have shown over and over again is one simple truth: Those who benefit from a stacked deck won't call for a new deal. Fundamental change comes only when the oppressed make it impossible to sustain the old order.
2016: Who Is Prepared to Stand?
The mainstream media have already begun their saturation coverage of the 2016 presidential horserace. How will Hillary run? Will she be challenged by Elizabeth Warren or Bernie Sanders or another candidate on the left? Will Bush or Romney consolidate the Republican establishment? Who will emerge on the right? Where is the big money going in both parties?
In this coverage, platforms and reform ideas are contrasted with those of rival candidates, measured only for their potential political effectiveness. Congressional showdowns are measured by their potential effect on "the race." In the lead up to 2016, this is likely to disintegrate into the competitive posturing of ersatz populists. Absent is any measure of the ideas against the scope of the challenges Americans must struggle with everyday.
Filling this vacuum is the imperative for progressives. The real question isn't who is prepared to run, but who is prepared to stand for fundamental reform? This is one reason why progressive challengers in the primaries are so important. Hard-pressed Americans pay little attention to politics or to congressional debates. Presidential primaries often surprise because they are one occasion where, if activists are engaged, a broader public begins to pay attention.
Progressive challengers -- a Bernie Sanders, Jim Webb, Elizabeth Warren or Sherrod Brown -- can force a debate on what it really takes to make this economy work for working people. They can expose the limits of the center reform agenda, and the scope of real alternatives. It would be a true tragedy if 2016 took place without a fundamental debate about the stark reality we face and the presidential contenders plan to do about it.
But again, no challenge in the Democratic Party will have legs unless people are in motion, mobilizing, challenging business as usual, and forcing politicians to get outside of their comfort zone. Dislodging the entrenched interests and big money that dominate our politics won't be easy. It won't happen in one election or with one movement. Democracy, as Bill Moyers has written, isn't easy. But it is our only hope.
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Franken scandal haunts Gillibrand’s 2020 chances
Franken scandal haunts Gillibrand’s 2020 chances
Today, nearly a year after Gillibrand led the charge in calling for Franken’s resignation, the anger is fresh on the...
Today, nearly a year after Gillibrand led the charge in calling for Franken’s resignation, the anger is fresh on the minds of major donors across the country...Ana Maria Archila, co-executive director for the Center for Popular Democracy, called Gillibrand’s response “important and courageous.” “It probably made her more enemies than friends,” said Archila, who famously confronted Sen. Jeff Flake (R-Ariz.) in a congressional elevator this summer during the Kavanaugh hearings.
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Is There Enough Anti-Trump Outrage To Spook These Nine Companies?
Activists are targeting corporations they claim support President Trump's agenda with new #BackersOfHate campaign......
Activists are targeting corporations they claim support President Trump's agenda with new #BackersOfHate campaign...
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Full Employment for All: The Social and Economic Benefits of Race and Gender Equity in Employment
How much stronger could the economy be if everyone who wanted a job could find one—regardless of race, ethnicity, or...
How much stronger could the economy be if everyone who wanted a job could find one—regardless of race, ethnicity, or gender?
To inform the Fed UP campaign, PolicyLink and the Program for Environmental and Regional Equity (PERE) estimated the potential economic gains of full employment for all. The following 13fact sheets illustrate what the United States economy—and the economies of the metropolitan regions where each Federal Reserve office is located—could look like with true full employment for all.
For additional information about Fed Up: The National Campaign for a Strong Economy, visit http://whatrecovery.org.
Download the full report here
For big banks, breaking the rules is a trade secret
For big banks, breaking the rules is a trade secret
There has been plenty of murmuring about shoddy sales practices at major banks beyond Wells Fargo. Front-line...
There has been plenty of murmuring about shoddy sales practices at major banks beyond Wells Fargo. Front-line salespeople with the Committee for Better Banks coalition have said for years that high-pressure sales tactics were the industry standard. A 2015 study of bank workers from the Center for Popular Democracy reached the same conclusion. Isolated enforcement actions and allegations against banks like TCF Financial, Citizens Financial Group, Santander and TD Bank highlight deceitful strategies to hit sales targets.
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Groups Charge $30 Million in Charter School Fraud, Call for Tougher Oversight
WHYY - October 1, 2014, by Tom Macdonald - A new report is calling for holding charter schools in Pennsylvania more...
WHYY - October 1, 2014, by Tom Macdonald - A new report is calling for holding charter schools in Pennsylvania more accountable.Produced by the groups Center for Public Democracy, Integrity in Education and Action United, the report says the $30 million in charter school fraud already discovered in Pennsylvania could be the tip of the iceberg because there isn't enough oversight.Kia Hinton of Action United says they are calling for reforms such as targeted audits because $30 million could have been put to much better use."Do you know what that could get us? That could get us more teachers so our classrooms don't have 40 students, that could get us textbooks, so our students have textbooks and that could get us support staff to support our teachers and our students," Hinton said.The groups are also calling for a moratorium on any new charter schools until more controls are implemented.Chinara Bioaal has a child in Philly schools and says the report is just a first step to end fraud."We will be conducting information requests on all charter schools to review board minutes to determine the quality or existence of their fraud risk management programs, we will challenge charter schools to sign the fraud risk management pledge adopting fraud risk management programs," Bioaal said.The Pennsylvania Coalition of Public Charter Schools responded to the report saying it supports prosecuting fraud and mismanagement. However "the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in the districts."Source
Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
Philadelphia Hopes to Become Next Major City to Pass Fair Workweek Legislation
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York....
It is part of a larger, nationwide effort that has already been introduced in San Francisco, Seattle and New York. Those cities passed similar legislation after increasing their minimum wage. Adding fair workweek standards was the logical next step, according to Rachel Deutsch, senior staff attorney for worker justice at the Center for Popular Democracy. “Some companies are stuck in this philosophy that labor is the most malleable cost,” she said. “But there has been a ton of data that shows there are hidden costs to this business model that treat workers as disposable.”
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Advocacy Groups Call for Closer Scrutiny of Charter Schools
Trib Total Media - October 1, 2014, by Megan Harris - Three groups with union affiliations on Wednesday pointed to the...
Trib Total Media - October 1, 2014, by Megan Harris - Three groups with union affiliations on Wednesday pointed to the criminal case against ousted PA Cyber Charter School founder Nick Trombetta as an example why the state's nearly 180 charter schools need better oversight and stronger accountability.
The Center for Popular Democracy, Integrity in Education, and Action United of Philadelphia and Pittsburgh issued a report that alleges Pennsylvania charter schools defrauded taxpayers out of more than $30 million. That figure is an aggregate of cases brought by whistleblowers and media exposés, according to the authors.
Pennsylvania Coalition of Public Charter Schools executive director Robert Fayfich said in a prepared statement that “the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in (traditional) districts over that same time period.”
Trombetta, who investigators allege illegally funneled $1 million from school coffers and deferred taxes on an additional $8 million in personal income, pleaded not guilty to 11 counts of mail fraud, bribery, tax conspiracy and filing false tax returns last year. Hearings are ongoing.
Fayfich said, “Fraud and fiscal mismanagement are wrong and cannot be tolerated, but to highlight them in one sector and ignore them in another indicates a motivation to target one type of public school for a political agenda.”
The groups' report urges state officials to temporarily suspend the approval process for new charter schools, investigate existing ones, and shift from standard audits to forensic audits.
School districts paid more than $853 million in tax dollars to charters serving 128,712 students in 2013-14. Almost 4,000 Pittsburgh students attended 33 charter schools the same year.
SourceWhat We Know About Trump and Clinton's Treasury Picks
What We Know About Trump and Clinton's Treasury Picks
Clinton has been defending herself from accusations that she is too cozy with Wall Street since the primaries, when an...
Clinton has been defending herself from accusations that she is too cozy with Wall Street since the primaries, when an obscure U.S. senator from Vermont built a movement in part by blasting her for collecting chunky speaking fees from Goldman Sachs Group Inc. (GS). Trump has carried on with that line of attack, telling an Iowa rally in late September, "if she ever got the chance, she'd put the Oval Office up for sale." So it may seem odd that Trump's campaign finance chair and apparent favorite for the Secretary of the Treasury, according to a Fox Business report on November 3rd, is second-generation Goldman Sachs partner Steve Mnuchin.
There is less clarity about who Clinton would nominate if she won, perhaps because she has to contend with skepticism of capitalism-as-usual among fans of Bernie Sanders and Elizabeth Warren, without veering too far to the left of the general electorate. Two names tend to pop up, however: Facebook Inc. (FB) COO and Lean In author Sheryl Sandberg, followed by Federal Reserve Board Governor Lael Brainard. Other possibilities include TIAA CEO and Alphabet Inc. (GOOGL, GOOG) board member Roger Ferguson.
Trump: Mnuchin
Steve Mnuchin may not seem to be the obvious choice to fashion economic policy for a populist, anti-establishment campaign like Trump's. Before taking over as the Republican's campaign finance chair in May, Mnuchin pursued a varied career as an investment banker, hedge fund manager, retail bank owner and film producer. (See also, Trump Announces New Economic Advisory Team.)
After graduating from Yale, where he roomed with Sears Holdings Corp.'s (SHLD) current CEO Edward Lampert, Mnuchin cut his teeth at Salomon Brothers. He joined Goldman Sachs, where his father was a partner, in 1985. According to a 2012 Bloomberg profile, Mnuchin was "front and center" when instruments such as collateralized debt obligations and credit default swaps were created. Fairly or unfairly, such exotic securities carry a whiff of the financial crisis, as does Goldman Sachs' mortgage department, which Mnuchin headed for a spell before becoming chief information officer in 1999.
He left Goldman Sachs in 2002 to work at his college roommate's hedge fund. The next year he started another fund with George Soros, and a year after that he formed Dune Capital with two other Goldman alums. This period marked the beginning of Mnuchin's Hollywood career, with Dune Capital's production wing funding dozens of films including Mad Max: Fury Road, American Sniper and Avatar.
Mnuchin's biggest financial opportunity came with the collapse of the subprime mortgage bubble. "In 2008 the world was a scary place," Mnuchin told Bloomberg in 2012. The market for mortgage-backed securities, with which he was intimately familiar, had collapsed, and no one seemed able to assign a value to assets such as IndyMac, a bank the FDIC had taken over. Mnuchin and a consortium of private equity investors he managed to woo over, including Soros, bought it on the cheap. The deal included a loss-sharing agreement with the FDIC. They renamed the bank OneWest and began foreclosing on borrowers, attracting criticism from campaigners who portrayed it as overly zealous and possibly driven by a profit incentive – born of the loss-sharing agreement – to foreclose rather than pursuing other options. (See also, Lessons Learned from the Banking Crisis.)
Mnuchin has donated to Clinton in the past, as has Trump. Speaking to Bloomberg in August, though, he was on message: "she's obviously raised a ton of money in speaking fees, in other things, from special interest groups. This campaign is focused on people who want to help rebuild the economy."
Clinton: Sandberg, Brainard or Ferguson
Clinton suggested at a town hall meeting in April that she plans to fill half of her cabinet with women. Most reports regarding her pick for Treasury secretary, a position that has never been filled by a woman, mentioned Facebook's Sheryl Sanderberg and the Fed's Lael Brainard. Another, less-frequently mentioned name is Roger Ferguson, who would be the first African-American to hold the job.
Sandberg
Sandberg has Treasury Department experience. Before becoming one of the most successful women in notoriously macho Silicon Valley, she served as chief of staff to Bill Clinton's Treasury Secretary Larry Summers. She received her BA and MBA from Harvard in the 1990s and spent a year at McKinsey & Co. She worked for Summers, who had been her professor at Harvard, from 1996 to 2001, which offered her the experience of dealing with the Asian financial crisis. She spent the next seven years as a vice-president of Google, then Mark Zuckerberg hired her away as Facebook's chief operating officer. Within two years she had turned the company profitable. In 2012 she became the first female member of Facebook's board. (See also, Who Is Driving Facebook's Management Team?)
Sandberg has also become an icon for some feminists for her 2013 book Lean In – and its attendant hashtag – which documents the barriers women face in the workplace while encouraging them to dispense with internalized barriers, fears and excuses that hold them back. Despite a generally enthusiastic reception, some critics have labeled the book as elitist: the opportunity to network at Davos may have made Sandberg's barrier-breaking easier. (See also, Sheryl Sandberg's Latest Speech Goes Viral.)
Brainard
Lael Brainard spent part of her childhood in communist East Germany and Poland with her diplomat father. She studied at Wesleyan and went on to get a masters and a doctorate in economics from Harvard. She taught at MIT's Sloan School of Management and worked at McKinsey before joining the Clinton administration as deputy director of the National Economic Council. She went to work at the Brookings Institution during the Bush administration, then served in Obama's Treasury as undersecretary for international affairs. At that time, that position – often described as the Treasury's top diplomat – was the highest Treasury post a woman had held. (See also, Fed's Brainard Urges Caution on Interest Rate Hike.)
Brainard has been a member of the Federal Reserve Board of Governors since June 2014, where she's attracted praise from progressives and deep suspicion from conservatives for appearing to depart from the central bank's technocratic, apolitical norms. She engaged with "Fed Up" activists protesting plans to tighten monetary policy at August's Jackson Hole meeting. (See also, Rising U.S. Labor Productivity Cements Fed Hike.)
Brainard also gave the maximum amount of $2,700 to Hillary Clinton's campaign. That decision earned furious condemnation from Republican members of the House Financial Services Committee during Fed chair Janet Yellen's September testimony, which came just two days after Trump accused the Fed of "doing political things" at the first presidential debate. Yellen defended Brainard's donation, saying she had not violated the Hatch Act, which prohibits federal employees in the executive branch from engaging in certain political activities.
Ferguson
Roger Ferguson earned a BA, JD and Ph. D in economics from Harvard then worked as an attorney in New York from 1981 to 1984. He spent the following 13 years at McKinsey, then joined the Fed Board of Governors in 1997. He became vice chair two years later, and rumors began to swirl in 2005 that he would be the next chair. Bush nominated Ben Bernanke instead, and Ferguson resigned shortly after Bernanke's term began the following February.
In 2008 he became president and CEO of Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF, since shortened to TIAA). He has been a board member of Alphabet since June 2016.
By David Floyd
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Warren leads crusade for diversity at Fed
Warren leads crusade for diversity at Fed
“I’m judging John Williams based on the last several years of him being wrong about the levels of maximum employment...
“I’m judging John Williams based on the last several years of him being wrong about the levels of maximum employment and pushing for additional [interest rate hikes] prematurely because that mistake puts millions of jobs at risk,” said Shawn Sebastian, who co-leads the Fed Up coalition comprising advocacy groups and unions.
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7 days ago
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