Puerto Rico is on Track for Historic Debt Forgiveness -- Unless Wall Street Gets its Way
Puerto Rico is on Track for Historic Debt Forgiveness -- Unless Wall Street Gets its Way
For bondholders sitting on Puerto Rican debt, Hurricane Maria may have come just when they needed it, just as a...
For bondholders sitting on Puerto Rican debt, Hurricane Maria may have come just when they needed it, just as a yearslong battle over the fate of the island’s financial future was beginning to turn against them. Or, depending on how the politics shake out, they could see their entire bet go south.
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Congress to Consider Bill to Help Part-Timers
New York Post - July 22, 2014, by James Covert - Part-timers with increasingly unpredictable work schedules are taking...
New York Post - July 22, 2014, by James Covert - Part-timers with increasingly unpredictable work schedules are taking their beef to Washington.
A congressional bill is slated for introduction Tuesday that would give workers more control over their hourly schedules at big retailers like Walmart, Home Depot and JCPenney.
Led by Walmart, major chains increasingly are switching around workers’ shifts on short notice, making it difficult and often impossible for part-timers to work second jobs.
The practice — common in retail, restaurant, janitorial and housekeeping jobs — has hit working mothers especially hard, according to critics.
Unpredictable work hours make it difficult to schedule everything from babysitters to doctor’s appointments.
“I think it’s gotten to a crisis point,” said Carrie Gleason, director of the Fair Workweek Initiative, a new campaign by the Center for Popular Democracy, adding workers need “some amount of predictability and stability in our work hours so we can live and manage our lives.”
The bill, sponsored by US Reps. George Miller (D-Calif.) and Rosa DeLauro (D-Conn.), would require employers to give an extra hour of pay to workers summoned less than 24 hours in advance.
The bill would also guarantee a minimum of four hours’ pay if an employee is sent home early — a frequent occurrence at restaurants.
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Bar bank executives from regional Fed boards, says Yellen's ex-advisor
Bar bank executives from regional Fed boards, says Yellen's ex-advisor
A former top Federal Reserve policy advisor said on Monday that bank executives should be barred from serving on the...
A former top Federal Reserve policy advisor said on Monday that bank executives should be barred from serving on the boards of the Fed's 12 regional outposts, Fed policymakers should serve just seven years, and monetary policy should be subject to an official annual review.
The proposals from Dartmouth College Professor Andrew Levin represent substantial change for the Federal Reserve.
Banks currently appoint six of the nine members of regional Fed bank boards, policymakers often serve a decade or more before retiring, and the details of monetary policymaking have always been a closely guarded secret, with transcripts of meetings released only after a five-year interval.
Levin, who advised Fed Chair Janet Yellen when she was Fed vice chair, released the proposals via the Fed Up Coalition, a network of community organizations and labor unions calling for change to the U.S. central bank. It is unclear how they will be received by other Fed critics who have called for even more sweeping changes, or the 101-year-old institution itself, which has largely resisted reform proposals.
The Fed has come under increasing fire in recent months from both Democrats and Republicans for what they say is a lack of accountability and transparency, with lawmakers and presidential candidates calling for a wide range of limits on the Fed's powers.
In response, some current and former Fed officials have begun to call for steps to placate the U.S. central bank's harshest critics.
Levin on Monday also called for the process of appointing Fed bank presidents to be more transparent and to involve the public. Currently Fed bank presidents are chosen in a closed-door process run by each bank's board and approved by the Washington-based Fed Board.
Reporting by Ann Saphir; Editing by Meredith Mazzilli
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High Road Workweek Partnership Invites Employers to Adopt a Fair Workweek
High Road Workweek Partnership Invites Employers to Adopt a Fair Workweek
As more retailers declare nationwide reforms to their scheduling practices – from ending on-call scheduling to...
As more retailers declare nationwide reforms to their scheduling practices – from ending on-call scheduling to providing greater advance notice – there is increased industry interest in understanding the impact of difficult work schedules on employees. Leading-edge employers are also starting to quantify the down-stream effects of ever-changing work schedules and excessive reliance on part-time staff, including higher turnover, chronic absenteeism, lower productivity, and unsatisfactory customer service. Many industry leaders now recognize that predictable, stable and flexible work schedules are not just good for employees, but are essential to meeting operational, sales and growth objectives.
At the Next:Economy summit, the Center for Popular Democracy’s Fair Workweek Initiative will unveil the High Road Workweek Partnership, a groundbreaking approach to the future of work, which meaningfully incorporates employee voice and scheduling equity values into scheduling technologies and management practices.
Achieving a High Road Workweek involves three key components:
A Partnership of Core Stakeholders: With a 360 degree view from engaging diverse stakeholders, employers can assess the impact of their current scheduling practices and envision a sustainable workweek;
The High Road Workweek Pledge: Translates core business principles into specific scheduling practices that encompass: Predictability and Stability, Adequate Hours, and Employee Input and Flexibility, and Equal Opportunity and Mobility; and
Measurable Implementation and Assessment: Innovative scheduling technologies, guidance for managers, and clear metrics will facilitate implementation of the pledge, while ongoing feedback from employees and a research-based assessment will ensure that new policies deliver the intended outcomes.
The High Road Workweek Partnership delivers lasting scheduling solutions and provides a framework for employers who want to be strongly positioned in the global economy, leveraging the latest technologies and integrating corporate social responsibility into workforce management to create meaningful employment.
“Employers of our country’s hourly workforce are at a crossroads. The worrisome scheduling trends that have come to public attention are persistent and challenging issues that affect both workers and the longevity of a company’s success. Through a meaningful collaboration with employees, a commitment to core scheduling principles, and an innovative use of workforce management metrics, any business is capable of implementing a high road workweek,” says Carrie Gleason, Director of the Fair Workweek Initiative at the Center for Popular Democracy.
Professor Susan Lambert of the University of Chicago, a key architect in developing the framework for scheduling stability, says, “While this year marks tremendous progress in employers recognizing the costs that lean staffing and unpredictable scheduling has for both workers and business, employers will need to implement new metrics for their managers and find ways to incorporate more employee input to ensure these commitments to reform become consistent scheduling improvements. The High Road Workweek Partnership presents an innovative approach to helping employers implement measurable standards for fair work schedules across their operations.”
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www.populardemocracy.org The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
www.fairworkweek.org The Fair Workweek Initiative, anchored by the Center for Popular Democracy and CPD Action, is driving the growing momentum to restore a workweek that enables working families to thrive. We are committed to elevating the voices of working people to ensure they can shape the solutions that work for their families – whether through improved industry practices or new workplace protections.
We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal...
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal of the Affordable Care Act. Who are we? We are the thousands of people who attended town hall meetings around the country to confront our elected officials, marched on the streets, and occupied the offices of our senators until we got arrested.
Early Friday morning, dozens of us who have been active in the fight against the ACA repeal stood outside the Capitol, bleary-eyed from exhaustion and tears and holding on to each other for moral support. We were stunned and elated when the ‘skinny’ repeal vote failed.
Read the full article here.
Protesting health care repeal
Protesting health care repeal
Senate Republicans tried and failed three times to repeal the Affordable Care Act. Many Americans who were against the...
Senate Republicans tried and failed three times to repeal the Affordable Care Act. Many Americans who were against the repeal spent time calling and writing to their senators, and even making it to Washington to protest the plans in person. Those advocates say they believe standing up against the repeal efforts made all the difference. Karen Scharff from Citizen Action, Michael Kink from Strong Economy for All, and Jaron Benjamin from Housing Works discuss their fight against the repeal.
Watch the video here.
Occupy the Minimum Wage: Will Young People Restore the Strength of Unions?
The Guardian - January 26, 2014, by Rose Hackman - Alicia White, 25, defied the odds of a poor background by attending...
The Guardian - January 26, 2014, by Rose Hackman - Alicia White, 25, defied the odds of a poor background by attending college on a partial scholarship and going to graduate school. While she spends her days applying for jobs, the only work she has found so far is face-painting at children’s birthday parties.
“By going to college and graduate school, I thought I was insulating myself from being broke and sleeping on friends’ couches and being hungry again. The big, scary part is that I am going to end up where I was, but now I am going to be in that awful situation with $50,000 of debt,” White says.
White’s story is no exception. One in two college graduates are now either unemployed or underemployed. Millennials – even those from the middle class – are experiencing income inequality and America’s failed dream of upward mobility first-hand. The mismatch of college-educated young workers with low-wage, unskilled, precarious jobs is creating a new face of the once-dwindling American labor movement: young, diverse, led by millennials in their twenties and thirties, and fighting what they see as an unfair labor market. Their modest cause? Pushing for a higher minimum wage.
Because of too many young people interested looking for work, these millennials reason that the labor movement is the only way to address large-scale poverty and income inequality – starting with their own.
The "Fight for 15" movement is the most visible of these. Designed by the SEIU to raise the minimum wage from $7.25 an hour to $15 an hour, the effort has been driven by young activists. Last fall, the movement claimed its first legislative victory with residents in SeaTac, Seattle’s airport carrying suburb, voting to raise its minimum wage to $15 an hour.
“There’s more enthusiasm than there has been probably in our lifetime for this,” says Ady Barkan, a 30-year-old Yale Law graduate and staff attorney at the Center for Popular Democracy in New York, indicating that the "Fight for 15" movement is picking up where Occupy Wall Street left off. He calls it “part of a similar cultural moment”.
It doesn't hurt the movement that the difference in pay between unionized and non-union jobs is pronounced. The median weekly earnings of union members in 2012 was $943, compared to $742 for those not in a union, the Bureau of Labor Statistics said in its recently released annual survey of labor.
“The dismal prospects for young workers are underscoring the fact that you can’t rebuild an economy on low-wage jobs and that inequality has reached a point where it really is an existential crisis for America,” says Annette Bernhardt, UC Berkeley's visiting sociology professor, whose work has focused on the low-wage economy and inequality.
Demographically, even the modest interest millennials have shown in the labor movement recently is a reversal of decades of disinterest. Unions have been ageing out of the economy along with their members, with nearly one in six union members aged 55-64, according to the BLS. Amid other trends – offshoring, automation, the growth of a service-centered economy – the share of national income that comes from labor unionshas been steadily falling since the 1970s. Union membership is at its lowest point in recent memory, with only 11.3% of Americans in unions. Critics, including the Center for American Progress blame those trends for the decline of the middle class.
Membership in unions is low for millennials – with only 11% of union members falling in the 25-34 age group, compared to 16% for workers between 55-64 – but their political views tend to align with the labor movement. A Pew poll this June showed 61% of Americans 18-24 in favor of unions, with strongest support coming from women and minority groups.
Diversity is more evident in the newer labor movement among millennials, reflecting the dominance of black and hispanic workers in unions nationally.
Jose Lopez, 27, is an organizer who works with Make the Road New York, mobilizing fast food and car wash workers. His previous work within the same organization involved pairing up young community members and artists with local businesses to paint storefronts, raising awareness about police brutality and stop-and-frisk. Lopez plans on bringing the same type of creativity to mobilize people around issues of inadequate income and wage theft, he said.
Protestor Janah Bailey, 21, of Chicago, currently works two fast food jobs: one full-time at Wendy’s, which she says pays $8.25 an hour, and one part-time at McDonald’s, which pays $8.40. On one day last year, Bailey walked out on both jobs for strikes against low pay. She says $15 an hour would change her life “tremendously”, expecting she would only have to work one job to make ends meet and help support her family, and spend her newly acquired spare time on studying to open up her own business.
The persistence of low wages is also mobilizing millennials who have never known a healthy job market. David Meni, 20, says he has held down a plethora of unpaid positions, internships and temporary jobs since his sophomore year of high school. His George Washington University chapter of the Roosevelt Institute’s Campus Network recently joined other local organizations in successfully pressuring the Washington DC city council to vote for an increase in the minimum wage to $11.50 an hour by 2016 from its current level of $8.50 an hour – despite the opposition of large corporations including Walmart.
That is not to say that young people will revolutionize the labor movement immediately. Millennials have an uphill battle in turning around the decline of labor. Studies show that while millennials support unions, until now, they have rarely joined them, perhaps in the belief that their low-paying jobs were temporary.
That perception may be changing as it becomes evident that lower wages are likely to be the norm for a long time.
Many economists predict that low wages are likely to continue into 2014, as pressure continues from corporate executives eager to return profits to their shareholders – namely by keeping a lid on expenses like pay. In a research report this week, influential economist Jan Hatzius of Goldman Sachs directly ties the 6.5% rise of corporate profits to the nearly inert 2% growth of US wages.
"The bottom line is that the favorable environment for corporate profits should persist for some time yet, and the case for an acceleration in the near term is strong," Hatzius wrote. "Eventually, the pendulum will swing back in the direction of lower profit margins and higher wages, but this still looks fairly distant."
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US Federal Reserve Interest Rate: Philadelphia Activists To Protest New President Patrick Harker, Demand Meetings
Activists who are against a Federal Reserve interest-rate increase planned Tuesday to stage a protest outside the...
Activists who are against a Federal Reserve interest-rate increase planned Tuesday to stage a protest outside the Federal Reserve Bank of Philadelphia. The demonstration was expected to target the bank’s new president, Patrick Harker, as part of the “Fed Up” campaign, a national coalition of families and community leaders calling on the Fed to adopt pro-worker policies.
The activists expected anywhere from 15 to 20 people, including workers, small-business owners and clergy, at the demonstration, aimed at pressuring Harker to take a tour of Philadelphia’s low-income neighborhoods, Politico reported. Although Harker this summer informally agreed to meet with the coalition, the Federal Reserve Bank of Philadelphia has backed out of that commitment, activists said.
Kendra Brooks, a leader of Philadelphia’s Fed Up coalition, said she has been urging Harker to meet with more than just the heads of nonprofits and corporations, Politico reported. She tried to get a commitment from Harker at the Fed's symposium in Jackson Hole, Wyoming, in August, and posted video of their encounter on YouTube.
Raising the interest rate would have a tremendous impact on African-American workers, economists have said. Low rates have allowed the economy to inch closer to a full recovery and to full employment, which has benefited blacks more than others. However, blacks still have the widest unemployment rate gap to close with whites.
The African-American unemployment rate was 9.2 percent in September, more than double the 4.4 percent rate for whites. Black Americans make up about 13 percent of the country’s 318 million residents and have seen stagnant wages and declines in wealth, as the U.S. economy recovered from the recession of 2007-09, the worst economic downturn since the Great Depression.
“The Federal Reserve is the most important decision-maker when it comes to whether we’ll get to full employment in the next two to three years,” said Valerie Wilson, director of the Program on Race, Ethnicity and the Economy at the Economic Policy Center in Washington, D.C. Wilson released a reportin March on the racial impacts of a federal interest-rate hike.
“The timing of the Fed’s decision to raise interest rates will influence how low the unemployment rate gets, how quickly wages grow, and how much African-Americans will share in our country’s prosperity,” Wilson said. “For the sake of American workers, the Fed should not raise interest rates until we are much closer to full recovery and full employment.”
Source: IBTimes
One city’s crime-fighting quandary: Where exactly to invest?
One city’s crime-fighting quandary: Where exactly to invest?
Chicago spends 39 percent of its municipal budget on policing, while New York spends just 8 percent and Los Angeles...
Chicago spends 39 percent of its municipal budget on policing, while New York spends just 8 percent and Los Angeles spends 26 percent, according to a report released last year by the Center for Popular Democracy. This means the city has less funds for things like schools and social services. The proposed $95 million academy comes just five years after the city announced the biggest mass closing of schools in US history, shutting down 50 schools because of a $1 billion budget shortfall.
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The Fed, Full Employment, African-Americans, and an Event that Brings It All Together
Jared Bernstein Blog - March 3, 2015 - As a tireless (some would say tiresome) advocate for full employment and the...
Jared Bernstein Blog - March 3, 2015 - As a tireless (some would say tiresome) advocate for full employment and the benefits it yields for working people, you can imagine how I was thrown by this NYT headline over a piece by economics reporter Bin Appelbaum:
Black jobless rates remain high, but Fed can’t do much to help.
“Shots fired!” as the kids say.
I find this hard to believe in the following sense. Black unemployment has averaged almost twice that of overall unemployment since the monthly data begin in 1972 (avg: 1.9, with standard deviation of 0.15, so not a ton of variation around that mean). Crudely, that implies that if overall unemployment fell from 6% to 5%, the black rate might fall more in percentage point terms, from 12% to 10%.
Next, if the Fed can push down the overall unemployment rate, which is certainly within its purview and, at a time like this, its job description, then the headline seems off.
Now, there are important nuances in play here.
First, these relationships are not always so clean. Over the long, strong recovery of the 1990s, black unemployment fell 4.5 points compared to 2.1 points for whites (and 2.5 points overall). Over the 1980s recovery, black unemployment—which was about 20% at the end of the deep early 1980s recession—fell 8.5 points compared to 4.7 for whites.
Those comparatively big declines show the disproportionate benefits that blacks reap from lower unemployment and, conditional on the Fed’s ability to lower unemployment, they belie the NYT headline. I could make similar claims based on wages and incomes, but I’m bound by secrecy for now (more on that in a moment).
However, more recently, that relationship isn’t generating such impressive results. Over this recovery, black and white unemployment have declined by similar amounts (4.5 points for blacks; 3.8 for whites). And, as Appelbaum points out, real median wages have fallen twice as much for blacks as for whites.
But that’s kinda the point: until recently this has been a uniquely weak recovery, and as such, tells us little yet about the extent to which full employment will lift the relative economic fortunes of black workers.
If we get to and stay at full employment, I’m confident it will work as it has in the past, based both on the history briefly cited above and on some truly exciting results from a new paper we’ve commissioned for our full employment project on the benefits of full employment to black workers, written by the economist Valarie Wilson from the Economic Policy Institute.
Valerie will be highlighting the results at an event we’re holding in DC on March 30th so far be it from me to steal her thunder. But she’s got some panel data regressions (which provide lots more observations and variance than the simple time series comparisons noted above) showing the impact of lower unemployment on black compared to white median wages, and man…all’s I can say is I’m employing great restraint not to just print them right here and now!
Here’s another point worth considering. Various economists on team full employment have been trying to get the Fed to hold off on its interest rate liftoff, but Appelbaum writes: “It’s not obvious, however, that holding down borrowing costs for a little longer would be an effective way to address the underlying problem. Indeed, the problem is a good illustration of the limits of monetary policy.”
That may be true in the following sense: if the Fed raises rates a little bit in 2015q4 instead of 2015q3, I doubt it will matter that much to anyone in the real economy (though financial markets would make a huge deal out of it). Similarly, if they hold to a 5.4% full employment rate and a firm 2% inflation ceiling that mustn’t be breached, or if they shift from being data driven to shooting at the phantom menace of inflation that’s allegedly hiding out of sight from the data just around the corner—well then, yeah, they won’t much help those who depend on lasting full employment to catch a break.
He’s also got a point re underlying problems. Even full employment may not be enough to reach the millions of workers with criminal records who face uniquely high barriers to the job market. I’ve written about fair-hiring policies to reach these workers, and so has Appelbaum.
But check this out: I mentioned our March 30 event. Well, another speaker on the panel that morning will be the guy from whom I learned all I know about fair-hiring, Maurice Emsellem from the National Employment Law Project.
I know what you’re thinking: what about macro, what about Fed policy? How can you call yourself a full employment maven and leave that out? Did I forget to mention our keynote speaker? A fella named Bernanke…Ben Bernanke. Here’s the flyer. Be there and be square.
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