Did two women in an elevator just change everything?
Did two women in an elevator just change everything?
Jeff Flake loves decorum, but it doesn't look like it was decorous behavior that moved him to reconsider a vote that...
Jeff Flake loves decorum, but it doesn't look like it was decorous behavior that moved him to reconsider a vote that could change the country's future. Was it two women in an elevator, yelling at him?
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111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist...
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist rally and riot this month, to Washington, D.C., 111 miles away. The journey—a nonviolent response to the violence of the hate groups that descended on Charlottesville—is expected to take ten days.
They are led by the Reverend Cornell William Brooks, a civil rights lawyer and former president and CEO of the NAACP.
Read the full article here.
Arizona special election 2018: ALS patient and activist Ady Barkan stumps for Democrat Hiral Tipirneni
Arizona special election 2018: ALS patient and activist Ady Barkan stumps for Democrat Hiral Tipirneni
Be a Hero is an offshoot of the Center for Popular Democracy’s CPD Action group (Barkan previously worked for the...
Be a Hero is an offshoot of the Center for Popular Democracy’s CPD Action group (Barkan previously worked for the center) and will concentrate on boosting Democratic candidates focused on protecting health care and entitlement programs like Medicare, Medicaid, and Obamacare, as well as ousting Republican incumbents who voted for the GOP tax plan or have voiced support for cutting entitlements.
Read the full article here.
How to Build an Anti-Poverty Movement, From the Grassroots Up
The Nation - January 14, 2014, by Greg Kaufman - With more than 46 million people living below the poverty line,...
The Nation - January 14, 2014, by Greg Kaufman - With more than 46 million people living below the poverty line, struggling to survive on $19,530 or less for a family of three, and with more than one in three Americans living on less than twice that amount, scrimping to pay for basics, this country will require a broad-based movement to reverse the decades of failed national imagination.
The groups listed below are all worth watching as they do just that: galvanize communities, arm activists with information, and fight for living-wage jobs, stable housing and a strong safety net that catches people when they fall.
1. Coalition of Immokalee Workers: If you want to see what is possible through grassroots organizing by those who are most affected by poverty—or what it means to set a seemingly unreachable goal and persevere, or understand your opposition and find new ways to challenge it—look no further than the Coalition of Immokalee Workers.
When the CIW was founded in 1993, it was as a small group of tomato farmworkers in Immokalee, Florida, trying to end a twenty-year decline in their poverty wages. Who is historically more powerless than farmworkers? Yet today, most major buyers of Florida tomatoes have signed agreements with the CIW to pay an extra penny per pound for tomatoes. These agreements have resulted in over $11 million in additional earnings for the workers since January 2011.
In addition, through its Fair Food Program, the CIW has persuaded corporate buyers to purchase tomatoes only from growers who sign a strict code of conduct that includes zero tolerance for forced labor or sexual assault. As a result, the majority of growers (those accounting for 90 percent of the tomato industry’s $650 million in revenue) have agreed to that code. If major violations occur but don’t get corrected—and there’s a twenty-four-hour hotline for worker complaints—corporations will not buy from those growers.
The Fair Food Program serves as a new model of social responsibility, and its influence is clear in the recently signed agreement between retailers and factory owners in the Bangladesh garment industry. Follow the CIW not only to get involved with farmworkers but for a sense of what can be achieved through strategic, fearless organizing.
2. Center for Community Change: For forty-five years, the Center for Community Change has worked with low-income communities and local grassroots organizations to fight poverty. The CCC has intentionally worked behind the scenes, keeping the spotlight focused on members of the communities instead and organizing around issues ranging from voter registration, affordable housing and community development to, more recently, immigration reform, healthcare and retirement security.
Executive director Deepak Bhargava says, “We have chosen as our great task in this next era to build a nationwide movement against poverty and for economic justice. The core issue is jobs—making sure that good jobs are available and accessible to everyone.” The CCC plans to work with grassroots organizations at the local and state levels, and then form coalitions at the national level, to demand policies that create good jobs with good wages. Its goal, Bhargava says, is to help build “a massive, diverse, boisterous, energized and organized social movement.”
3. Children’s HealthWatch: This country’s political leaders talk a good game about their commitment to the well-being of children, but in too many cases, their actions tell a far different story. That story is captured, in part, by the pediatricians and healthcare professionals at Children’s HealthWatch.
CHW collects data at pediatric clinics and hospitals to show the real impact of public policy choices on the health, nutrition and development of children up to the age of 4. CHW research has shown, for example, that children receiving SNAP (food stamps) are less likely to be food insecure, underweight or at risk for developmental delays than their peers who are likely eligible for SNAP but not receiving it. CHW has also demonstrated the importance of affordable housing for children’s health, showing that children in households that move frequently or fall behind on rent are significantly more likely to be underweight, in fair or poor health, and at risk for developmental delays than their stably housed peers. And CHW has examined energy insecurity, showing that children in families struggling to afford utilities and keep their homes sufficiently heated or cooled are more likely to be food insecure, hospitalized at some point since birth, or to have moved twice or more in the past year.
By using science to evaluate whether our policies demonstrate a commitment to children and then proposing alternatives, CHW’s research guides activists past the bombast and rhetoric of today’s policy-makers.
4. Half in Ten: This campaign—which I am currently advising—is a project of the Coalition on Human Needs, the Center for American Progress Action Fund, and the Leadership Conference on Civil and Human Rights, and it has 200 partner organizations across the country. Its mission is simple: to cut poverty in half over ten years, just as we did between 1964 and 1973.
Through its comprehensive annual report, Half in Ten tracks the country’s progress toward this goal and outlines the many policies that could help slash poverty. In its 2007 inaugural report, Half in Ten demonstrated how poverty could be reduced by 26 percent simply by passing a modest increase in the minimum wage (to $8.40 at the time), expanding the earned-income tax and child tax credits, and providing affordable childcare to low-income families, among other proposals. Our leaders failed to make those recommended policy changes, and then the economy crashed, burying ever more Americans in deeper holes.
But Half in Ten keeps pushing toward its goal. In addition to policy analysis, the campaign mobilizes local groups in the field to speak out and take action during congressional policy debates. The campaign also works through its “Our American Story” project to ensure that low-income people have opportunities to tell their stories to the media, policy-makers and other advocacy groups. Follow Half in Ten to get a sense of the anti-poverty policy landscape, take action at the federal level, and hear powerful stories about individuals and families who are struggling to survive in this broken economy.
5. Occupy Our Homes/Home Defenders League: Many of us would like to believe that the foreclosure crisis is over, but the fact is that far too many people are still losing their homes because banks refuse to modify mortgages, fail to return phone calls, or simply (and scandalously) file fraudulent paperwork. If my family or neighbors were ever in a dire situation with a bank that refused to work with them, Occupy Our Homes and the Home Defenders League (HDL) are the allies I would want on my side.
With community partners in more than twenty-five cities and states, these activists help homeowners organize protests, call-ins to bank officials, and other actions to cut through the bureaucratic roadblocks that individuals and families encounter when they deal with the banks. They also show up with neighbors to stop forced evictions.
In May, Occupy and HDL mobilized hundreds of people for a sit-in at the Justice Department, successfully shaming the feds and playing a key role in restarting stalled litigation against Wall Street. They are also collaborating with dozens of local groups, large and small, to rebuild the wealth stripped out of communities of color by pressing cities to use their power of eminent domain to do what the banks have refused to do: enact wide-scale principal reductions.
6. Center on Budget and Policy Priorities: As we approach the fiftieth anniversary of the War on Poverty, conservatives are deploying bogus “studies” and revisionist history to attempt to discredit programs that are not only vital to people who are struggling, but have been proven effective in preventing much higher poverty rates. The Center on Budget and Policy Priorities does a forceful job of countering this misinformation with analyses that—tellingly—conservatives rarely challenge.
During policy debates about programs like SNAP, TANF (welfare), healthcare, housing, Social Security, disability insurance, Medicaid, Medicare and other domestic priorities, you can count on CBPP experts to provide vital, clear-eyed analysis of how government programs work. Follow the work of policy wizards like Arloc Sherman, LaDonna Pavetti, Liz Schott, Jared Bernstein, Robert Greenstein, Douglas Rice, Kathy Ruffing and others to get the information you need to see through the spin, misinformation and outright lies about key policies that combat poverty.
7. Jobs With Justice: For twenty-six years, Jobs With Justice has built powerful coalitions with labor, community, student and faith leaders to protect and advance the rights of working people. Most recently, Jobs With Justice has played a pivotal role in the national Caring Across Generations campaign, which helped secure historic overtime and minimum-wage protections for homecare workers. Its Debt-Free Future campaign has mobilized students and concerned citizens to make college more affordable, expose abusive private lenders and win debt relief for working families. Jobs With Justice is also a critical partner in challenging the exploitative labor practices of employers like Walmart and the large fast food chains, and in protecting the right of immigrant workers to organize without threat of retaliation.
With its savvy use of strategic communications, original research and on-the-ground mobilizing, Jobs With Justice is challenging the structural problems of our economy in creative and effective ways.
8. Western Center on Law and Poverty: Translating grassroots activism into legislative victories will require strong inside/outside partnerships at the local, state and federal levels. One group that has mastered this delicate dance is the Western Center on Law and Poverty in Sacramento, California.
California is the seat of some of the poorest congressional districts in the nation, and it’s also home to more poor Americans than any other state. For over a decade, the state government has been dominated by budget austerity—California was the epicenter of the “no tax” pledge—as well as the kind of budget brinkmanship that now plagues Congress. But in part through the Western Center’s leadership, advocates have moved from simply defending against cuts to articulating a shared vision for a more vibrant, inclusive economy.
The Western Center has spearheaded new alliances among women, immigrants, the working poor, people without homes, the formerly incarcerated, food stamp recipients, labor union members, college students, youth and others, creating new opportunities for low-income people to get involved in effecting change. The result has been a series of notable victories, such as requiring call centers serving Californians who need public assistance to be located in-state in order to create jobs; restoring dental care through Medicaid; enacting protections against excessive bank fines or fees; introducing a Homeless Bill of Rights to outlaw the criminalization of homelessness; and protecting SNAP from federal cuts. The Western Center and its allies have also defended against bad policy proposals like the ALEC-inspired legislation to drug-test public assistance applicants. Follow this group to see how diverse coalitions get results at the state level.
9. Center for Hunger-Free Communities, Witnesses to Hunger: Founded in Philadelphia in 2008, Witnesses to Hunger is a research and advocacy project led by mothers and other caregivers of young children who have experienced hunger and poverty. Through photography and testimonials, Witnesses advocates for change at the local, state and national levels. There are now more than eighty Witnesses in various cities, including Philadelphia, Camden, Boston and Baltimore. (A new chapter in Sacramento is in the works.) In addition to lobbying Congress on issues like food stamps, welfare and affordable housing, Witnesses is vocal in its insistence that people living in poverty be included in conversations among advocates and political leaders in Washington, where low-income people are too often talked about but never heard. Follow this group to learn about poverty and hunger—which policies help, which policies harm—and to work directly alongside those living in poverty.
10. NETWORK: While the real power of an anti-poverty movement will come from the grassroots, a national leader who mobilizes people of faith and speaks with prophetic authority can play a powerful role—especially since the opposition so often cites Scripture as a justification for stripping the safety net.
Sister Simone Campbell and NETWORK, a Catholic social justice lobby, captured the attention of millions of Americans as well as the mainstream media with their 2012 “Nuns on the Bus” Tour challenging Congressman Paul Ryan’s reckless budget proposals. Since then, Sister Simone has proved that she can not only tap into a network of progressive faith-based organizations, but also respond effectively to the absurd proposition that charities and religious institutions can address the needs that arise from a broken economy on their own, without the help of government resources. What’s more, she was masterful during Ryan’s hearing on the War on Poverty, eloquently batting away assertions that social programs create dependence and that the minimum wage should be banned, as well as challenges to her own standing as a Catholic.
While an anti-poverty movement will need nonviolent civil disobedience and avenues to express anger and despair, Sister Simone and NETWORK have shown that it’s possible to beat the opposition at its own game.
Source
Opioid protest at Harvard art museum
Opioid protest at Harvard art museum
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler...
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler family. The Sacklers have their names on spaces at the Louvre, the Royal Academy of Arts, the Smithsonian, and the Guggenheim in New York, among others. The Center for Popular Democracy, the nonprofit that supports the Opioid Network, also participated in Goldin’s protest at the Smithsonian Institution’s Arthur M. Sackler Gallery in April.
Read the full article here.
Demonstrators bring Dreamers, TPS cause to Trump’s doorstep
Demonstrators bring Dreamers, TPS cause to Trump’s doorstep
Several dozen demonstrators, organized by progressive groups and chanting in Spanish, brought the cause of the Dreamers...
Several dozen demonstrators, organized by progressive groups and chanting in Spanish, brought the cause of the Dreamers and Temporary Protected Status refugees—both groups targeted for eviction from the U.S. by Donald Trump—to the doorstep of the GOP president and his Republican backers on the evening of Feb. 1.
Read the full article here.
Elizabeth Warren, Workers Take Aim at ‘Walmart Economy’
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-...
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-CA) invited Walmart workers to brief Congress on Tuesday about the retail giant’s abusive practices, the conversation was about more than just Walmart.
“No one in this country should work full-time and still live in poverty,” Warren said.
“This is about the simple dignity of the people you have hired to work,” Miller said. “When you have a higher minimum wage, fair scheduling, and equal work for equal pay, the perception of the business goes up in the people’s mind, the customers go up and the revenues go up.”
Cantare Duvant, a Walmart customer service manager, said at the briefing that since Walmart is the nation’s largest retailer, it sets the standard for others in the industry. “So not only do we as Walmart workers deserve better, our economy also deserves better,” she said.
Duvant is a member of OUR Walmart (Organization United for Respect at Walmart), a union-backed group of Walmart workers who are, in Duvant’s words, “struggling to support our families on low pay and erratic scheduling” in what is now “Walmart’s low-wage economy.”
“Walmart specifically is worth discussing not only because of the 1.3 million workers it directly employs, but also because of the impact its employment practices have on the rest of our economy,” said Amy Traub, senior policy analyst at Demos. She said Walmart does this by “pushing down wages, limited workers hours, and squeezing its suppliers and its competitors.”
A majority of Americans are paid by the hour, and about half of early-career adults have no say in their work schedules, said Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy. “This isn’t just a narrow section of people,” she said.
Sen. Warren, a progressive hero who was recently appointed to a position in the Senate Democratic leadership, said that the issue of low-wage work in America is “deeply personal” for her.
When her father lost his job after having a heart attack, Warren said, her working-class family couldn’t pay the bills, lost their car, and almost lost their home. Then one day, “My mother, who was 50 years old and had never worked outside the home, pulled on her best dress, put on her lipstick, put on her high heels, and walked to Sears to get a minimum-wage job.”
“But here’s the key: It was a minimum-wage job in an America where a minimum-wage job would support a family of three.”
That could never happen today, Warren said, when “a momma and a baby on a full-time minimum-wage job cannot keep themselves out of poverty.”
Warren used the briefing to promote three pieces of legislation aimed at helping low-wage workers, including but not limited to people working at Walmart.
Those bills would raise the federal minimum wage to $10.10 per hour, give workers more reliable and flexible schedules, and help women address unequal pay based on gender.
Equal pay came up because women make up about two-thirds of the low-wage work force, and many are family breadwinners. Warren said that women in about half of American jobs can be fired just for asking whether their pay is unequal to their male coworkers.
The Schedules That Work Act, Warren said, is about the “basic fairness” of workers being able to plan for a second job, child care, or schooling. It would require employers to give workers their schedules two weeks in advance, compensate them for showing up for work only to be sent home, and not retaliate against workers for requesting more flexible or predictable schedules.
All three bills have been blocked by Republicans, which Warren openly acknowledged.
“I know that change is not easy. We might not pass these bills right away,” she said. “But don’t kid yourself about the importance of these bills, and the assurance that we’re eventually going to get them through.”
The Schedules That Work Act in particular would help Fatmata Jabbie, a Walmart worker and refugee from Saudi Arabia whose story was read at the hearing.
“Although I am not full-time yet, I am virtually on call seven days a week to pick up extra hours,” she said in her written statement. Her reward for that trouble is usually only 30 to 36 hours of work and $150 to $200 in take-home pay.
“I am a mom with two beautiful children, so I am not the only one who relies on that salary to survive,” Jabbie said.
OUR Walmart is pushing for bigger reforms than the three bills Warren promoted though. Members of the group are calling for their aggressively non-unionized employer to pay a minimum living wage of $15 an hour, provide stable, full-time schedules, and stop retaliating against workers who speak out against the company’s practices.
Duvant, for instance, already makes the $10.10 per hour that the federal minimum wage bill would guarantee—but that doesn’t do her much good, she said, when Walmart will only schedule her for 16 hours of work per week.
And Evelin Cruz, who worked for Walmart for 11 years, said at the hearing that the company fired her a few weeks ago for her activism with OUR Walmart.
“We spoke out for change, and Walmart did what it does best, which is bully, retaliate, and fire me,” she said.
Cruz told RH Reality Check that even though she no longer works at Walmart and is looking for other work, she’ll keep up the fight with OUR Walmart.
“That’s what they count on, for people to be out of Walmart and no longer want to participate,” she said. “But this is an issue that is not only affecting people in Walmart. It’s a widespread problem of scheduling, lack of hours, and a minimum wage that you can’t survive on.”
Source
Tax reform stumbling block
Tax reform stumbling block
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White...
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White House legislative director Marc Short. Part of the reason is that it probably won’t be ready yet. But it also has to wait until after the GOP congress passes a budget resolution, people close to the matter tell MM.
Because if Republicans lay out their tax reform plan beforehand, Democrats could use the budget vote-a-rama process in the Senate to try and attack individual pieces of the plan.
Read the full article here.
J. Crew, Urban Outfitters, and More Just Stopped Using ‘On-Call’ Scheduling
J. Crew, Urban Outfitters, and More Just Stopped Using ‘On-Call’ Scheduling
Several major retailers have in recent weeks relieved their workers from having to spend their mornings waiting for...
Several major retailers have in recent weeks relieved their workers from having to spend their mornings waiting for their boss to tell them if and when to show up for work.
J. Crew recently joined a group of several other top retail chains in dropping on-call scheduling—the system that requires workers to make themselves available for a shift with no guarantee of actually getting any clocked hours. Under on-call scheduling, workers generally must be ready to be called in for a shift just a few hours beforehand, and often that meant wasting valuable time by not being called in at all. In addition to J. Crew, Urban Outfitters, Gap, Bath & Body Works, Abercrombie & Fitch, and Victoria’s Secret, and various affiliated brands, have announced that they’re phasing out on-call nationwide.
The abandonment of on-call at these high-profile chains—affecting roughly 239,000 retail sales workers, according to the Fair Workweek Initiative (FWI)—represents growing backlash against the erosion of workers’ autonomy in low-wage service sectors. The pressure for reform has been stoked by media scrutiny, labor protests, and litigation, and an investigation into on-call scheduling in New York retail stores by New York Attorney General Eric Schneiderman.
But the fight for fair labor practices isn’t over in retail. Carrie Gleason, director of the FWI, a project of the advocacy group Center for Popular Democracy, says nominally phasing out on-call at a workplace may simply lead to a “whack-a-mole situation,” pushing managers to find other ways to drive workers into erratic and unstable schedules. Your supervisor might not call you in two hours before a shift starts, but might still abruptly cancel your pre-scheduled shift, or text on an “off” day to pressure you to sub for a coworker. Some workplaces might have a set start time for shifts, but then pile on on-call extended hours, so the workday expands unexpectedly. Across the service sectors, Gleason says, “there’s not a real commitment around standards around what workers experience as a predictable schedule.”
Nationwide two-thirds of food service workers and over half of retail workers have at most a week’s notice of their schedules. Part-timers and black and Latino workers disproportionately work irregular schedules.
According to National Women’s Law Center, over half of workers surveyed
“work nonstandard schedules involuntarily because they could not find another job or ‘it is the nature of the job.’” The “nature of the job” reflects the nature of our current economy, which has redefined labor as a seller’s market for employers, while union power and labor protections have disintegrated.
FWI campaigns both for stronger regulation and industry-led reforms. It presses for “high-road workweeks,” under which workers and employersnegotiate equitable scheduling systems, which can streamline operations and reduce turnover, while giving workers more predictable hours, along with flexibility to change schedules on a fair, voluntary basis. (Yet there’s good reason for skepticism about voluntary corporate “social responsibility”: in a recent study of Starbucks’s scheduling reforms, workers nationwide reported irregular and unpredictable shifts, despite the company’s promises of more humane schedules.)
On the regulatory front, as reported previously, some state laws and San Francisco’s new Retail Workers Bill of Rights provide reporting time pay(compensation for unplanned shift changes), and safeguards for stable hours.
California, New York, and other states have recentlyintroduced fair-scheduling legislation, including reforms that provide workers with negotiating mechanisms at work to make scheduling procedures more democratic, and limits on consecutive hourly work shifts.
Nationally, the proposed Schedules That Work Act would provide similar protections for advanced notice, reporting time pay and the right to bargain schedule changes.
The basic principle that drives labor advocates is predictability in both time and earnings, which counterbalances the service industry trend toward precarious low-wage jobs, pushing workers into part-time, temporary, or unstable contract work.
The opportunity cost of abusive schedules drives financial insecurity, impedes career advancement, and hurts families. Erratic hours can interfere with childcare arrangements and medical care, and are linked to increased marital strain and long-term problems with children’s behavioral development.
Sometimes, it’s just humiliating. Like when Mary Colemangot sent home from a shift at Popeyes and ended up effectively paying not to work. As a campaigner with FWI, the grandmother described the experience as a theft of precious time and wages: “When I get to work only to be sent home again, I lose money because I have to pay for my bus fare and hours of time traveling without any pay for the day.” Under a reporting time pay system, however, she might instead have been reimbursed for showing up, instead of bearing the cost of her boss’s arbitrary decisions.
“The idea is that if you need this level of flexibility for your workforce, that’s something that has value, being able to have a nimble workforce that’s ready when you need them,” Gleason says. In fact, honoring the workers’ overall role in an organization, not just hours clocked, is akin to the salary system. White-collar professionals often voluntarily exceed a 40-hour workweek and feel duly rewarded with their annual compensation package.
A fairer schedule system isn’t difficult to imagine if we start with the premise of honoring workers’ time in terms commensurate with the value of what they’re expected to produce—whether it’s impeccable service at peak-demand time, or a good cappuccino. And that’s why unions and other worker-led organizations, which understand a job’s real meaning in the context of workers’ lives, have historically been instrumental in shaping wage structures through collective bargaining. Though unions have withered, smart policy changes and grassroots organizing networks are carving out more autonomy and control for labor over the course of a workday.
The byzantine, unstable scheduling systems that dominate low-wage industries aren’t really “the nature” of today’s jobs so much as the result of a society that deeply undervalues workers’ lives, whether that’s the value of a parent’s time with her children, or the time invested in a college degree. In a “just in time” economy, employers put a premium on consumer convenience and business logistics. But as boundaries blur between work and home, the “new economy” challenges workers to finally reclaim their stolen time.
Source: The Nation
The Fed’s Main Job Is Jobs, And A Coalition Plans To Keep It On Task
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve...
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve Friday when the Labor Department releases its August unemployment statistics. But where will the Fed’s eyes be focused? A group of activists are planning the next steps of their effort to keep the Fed focused on the continuing unemployment crisis, and keep the Fed from taking actions that will make things worse for millions still seeking work.
“We’ve got a lot of work ahead of us,” said Shawn Sebastian of the Center for Popular Democracy, who was part of a group of activists and unemployed people who confronted members of the Fed at last month’s economic summit in Jackson Hole, Wyo. That includes following up on a promise by Fed chair Janet Yellen to meet with the group in Washington and pressing a more detailed plan for how the Fed should proceed to help the Main Street economy grow.
“We are going to be looking at the full range of policy options,” Sebastian said.
The “inflation hawks” were poised to seize the narrative when the members of the Fed attended the Jackson Hole summit. These Fed members, egged on by conservative academics and policymakers, want the Fed to put the brakes on economic growth and turn its attention to fighting inflation, even though there are no signs that inflation is an imminent threat. On the contrary, wages as a percentage of economic output are at their lowest level since the late 1940s (while corporate profits as a share of the economy are at record highs), one sign that there are far more people looking for work than there are jobs for them.
What the hawks did not count on was the Center for Popular Democracy’s ragtag group of 10 unemployed people and activist supporters. They trekked to Jackson Hole to confront Fed members with their stories of struggling to find decent jobs, along with a demand that the Fed not abandon its unfinished role in rebuilding the middle-class economy, in the form of a letter endorsed by more than 70 organizations. Their biggest success, Sebastian said, was a two-hour meeting with Kansas City Federal Reserve Bank President Esther George, who just before Jackson Hole said in an interview with CNBC that it was time for the Fed to begin thinking about raising interest rates “when you see the economy getting as close as we are to full employment.”
But Sebastian and his group told George that the economy was nowhere near full employment and that the analysis of the inflation hawks was “lacking in relevance, substance and rigor.” One member of the group told of how she went from being an MBA who had risen to a management job over 15 years to being laid off and unable to find work for months, finally settling for a job that paid half as much as the job she lost.
It’s not clear what substantive effect hearing these stories had on George and other inflation hawks on the Fed, Sebastian said. “But I do hope we contributed to her thinking and we also started an engagement” with the Fed, he said. Fed members now know that when they discuss economic policy, “you can’t make decisions without public scrutiny anymore, because we’re paying attention now.”
One of the ideas that the group will refine and attempt to build consensus around would have the Fed invest directly in infrastructure bonds and similar government instruments, in much the same way that it purchased billions in bonds to prop up the financial sector in the years following the 2008 financial crash. The bond-purchasing program, known as quantitative easing, helped boost Wall Street share prices, according to most experts, but had no direct effect on job-creation or on bringing the economic recovery to communities around the country hardest hit by the crash – as the nation has now vividly seen in Ferguson, Mo.
Having the Fed directly buy bonds that would enable federal, state or local governments to fund transportation projects, school construction or other public facilities would put the Fed’s power to work in ways that directly creates jobs in the short run and assets that enhance the nation’s competitiveness and well-being in the long run.
The Fed could also better use its regulatory authority to prod the banks to pour into the economy the close to $2 trillion that is now sitting in its vaults. That hoarded cash could be put to work creating jobs and lifting the wages of working-class people.
Whatever policies take shape during the next phase of the Center for Popular Democracy’s campaign to keep the Fed focused on full employment, Sebastian says that the opening round has been a success in sending the message that “we’re not in an inflation crisis … we are in an unemployment crisis. You can’t ignore an ongoing crisis for the sake of a ghost of inflation that may or may not appear.”
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