Fed Up Says It Unjustly Lost Rooms at Jackson Hole Meeting
A coalition of community and labor groups known as “Fed Up” said 39 members planning to stay at the hotel hosting the...
A coalition of community and labor groups known as “Fed Up” said 39 members planning to stay at the hotel hosting the Federal Reserve’s prestigious annual retreat in Jackson Hole, Wyoming, were unfairly singled out when their 13 room reservations were canceled.
The group, which is pressing the U.S. central bank to appoint more minorities and women to its leadership, said most of its attendees would have been black and Latino. It has filed a complaint with the U.S. Department of Justice and other government officials. The group believes it lost the rooms because of “specific targeting of the Fed Up coalition.”
Fed Chair Janet Yellen is the first woman to lead the U.S. central bank and it remains under pressure to become more diverse. Democratic presidential nominee Hillary Clinton joined calls for reform in May and the central bank has taken fire from Republicans, who warn its low interest rate policies risk inflating another asset bubble.
The Fed Up coalition, which wants rates to stay low to boost hiring and lift wages, has discussed its concerns with Fed officials, including Esther George, president of the Kansas City Fed, which hosts the annual Jackson Hole monetary-policy conference in late August.
Faced with criticism that it doesn’t look out for the interests of poorer Americans, the Fed has been making efforts to change. The Kansas City Fed said on Thursday that it will hold a conference on the challenges low- to moderate-income communities face on Sept. 7-8 at its headquarters.
Booking Error
Alex Klein, vice president and general manager of Grand Teton Lodge Company and Flagg Ranch, said the reservations were canceled because “an error in the booking system” resulted in the Jackson Lake Lodge being oversold by 18 rooms. “We worked proactively and diligently with guests to relocate them to our nearby Flagg Ranch property,” he said in a statement.
The Kansas City Fed has a contract to provide rooms for guests at the symposium and “has no input regarding any decisions that the Lodge makes outside of its contract with us,” said bank spokesman Bill Medley.
The symposium, which gathers policy makers and economic-thought leaders for a three-day retreat in the heart of the Grand Teton mountains, is probably the most important event of its kind on the central-banking calendar. Yellen will attend and plans to address the conference on Aug. 26. This year’s meeting, which is invitation only, is focused on the topic “Designing Resilient Monetary Policy Frameworks for the Future.”
The hotel, while remote, is open to the public and Fed Up representatives have made the trip for the past two years. In 2015, Fed Up held an alternative conference at the Lodge which was addressed by Nobel-prize winning economist Joseph Stiglitz.
By Steve Matthews & Jeanna Smialek
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Rep. Blanc arrested, then released following D.C. demonstration
Rep. Blanc arrested, then released following D.C. demonstration
Blanc was in Washington participating in a sit-in along with advocates from Living United For Change in Arizona, or...
Blanc was in Washington participating in a sit-in along with advocates from Living United For Change in Arizona, or LUCHA, and national groups like United We Dream and Center for Popular Democracy. The groups demanded that Congress pass a comprehensive immigration reform bill protecting the more than 700,000 young undocumented immigrants protected under the Deferred Action for Childhood Arrivals program or DACA.
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Report: Hedge funds that ‘killed’ Toys ‘R’ Us ‘prey’ on Puerto Rico
Report: Hedge funds that ‘killed’ Toys ‘R’ Us ‘prey’ on Puerto Rico
Some of the hedge funds that are speculating on Puerto Rico debt also forced Toys R Us to shut down, according to a...
Some of the hedge funds that are speculating on Puerto Rico debt also forced Toys R Us to shut down, according to a report released by Hedge Clippers, which advocates for income equality by targeting hedge and private equity funds, in partnership with the Center for Popular Democracy, a nonprofit that advocates for workers rights.
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One simple action the Fed refuses to take could make its policies a lot more powerful
One simple action the Fed refuses to take could make its policies a lot more powerful
There is an easy step officials at the Federal Reserve could take to improve their ability to fight the next recession...
There is an easy step officials at the Federal Reserve could take to improve their ability to fight the next recession, but policymakers are deeply reluctant to go there: raising the central bank’s 2% inflation target.
Several prominent economists, including former President Barack Obama’s top economic advisor Jason Furman and Nobel laureate and Columbia University professor Joseph Stiglitz, have signed a letter proposing Fed officials do just that.
Read the full article here.
THE $15 QUESTION: Higher minimum helps workers and business
Chicago Tribune - June 5, 2014, by Connie Razza - The Great Recession is over! So say the corporations and the...
Chicago Tribune - June 5, 2014, by Connie Razza - The Great Recession is over! So say the corporations and the wealthiest among us. For the rest of us, the so-called recovery doesn’t feel like much of one at all.
Corporate profits and stock prices have rebounded, but wages have not. Middle-class and low-income workers are still struggling to keep up with the cost of living. Corporate recovery has been fueled by the proliferation of jobs paying low wages.
How can we fix this? Raise the minimum wage.
That’s why Aldermen Proco “Joe” Moreno, Roderick Sawyer and John Arena have introduced an ordinance to raise the minimum wage for Chicago workers to $15 an hour, following a March advisory referendum in a small number of precincts that showed about 86 percent of Chicago voters support such a proposal.
If adopted, the $15 wage would initially apply only to workers at businesses with $50 million or more in annual receipts, and their subsidiaries and franchisees, while workers at smaller businesses would see the wage phased in over a multi-year period.
A new study by the Center for Popular Democracy, where I serve as director of strategic research, shows that the ordinance will increase income for 40 percent of all Chicago workers.
But what about job loss? Big business will say the higher wage will hurt the economy and force layoffs.
Not so.
Our study shows that an additional $1.1 billion would be passed to workers as take-home pay. Almost all of that money will travel through the local economy, generating an additional $616 million in new economic activity and creating 5,350 new jobs.
And there is precedent for these findings elsewhere: The payroll company Paychex and research firm IHS did a survey that found that Washington, the state with the highest minimum wage, also has the highest annual job growth.
Raising the wage isn’t just the right thing to do; it’s the smart thing to do. And although it may seem counterintuitive, the higher wage will help businesses grow. How?
Because too much inequality threatens economic growth and stability by limiting consumers’ ability to buy goods and participate in the marketplace. In other words, who will buy a new car if no one can afford to pay rent?
Unfortunately, the so-called recovery we’re in has been fueled largely by low-wage jobs replacing previously existing higher-wage jobs, further fueling inequality. In 2012, the Brookings Institute named Chicago the eighth most unequal city in the country.
Latinos and African-Americans make up disproportionate portions of the low-wage workforce, exacerbating racial and geographic disparities in the economy. Our study shows that a higher minimum wage will address these disparities by helping low-wage workers to participate more fully in the city’s economy as consumers, and help facilitate economic recovery in the neighborhoods where these workers live.
The current Illinois minimum wage is $8.25 an hour, a dollar higher than the federal minimum wage. Neither of these wage levels has kept pace with inflation or the cost of living, and both fall well below in purchasing power compared to the minimum wage in previous decades.
While the state and the federal government continue to ponder action, Chicago can’t afford to wait. The city is well positioned to take action, and join other cities, such as Seattle, San Francisco, and Washington, that are showing national leadership for urban America while Congress continues to stall.
More families than ever are relying on low-wage jobs to make ends meet. Let’s give them a fighting chance. Let’s make the economy work for all of us, not just the wealthy and the corporations.
Connie M. Razza is the director of strategic research at the Center for Popular Democracy, which gets funding from private philanthropy, community groups and labor organizations.
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"You Can Save My Life": Traveling on Same Plane, Man With ALS Confronts Sen. Flake Over GOP Tax Bill
"You Can Save My Life": Traveling on Same Plane, Man With ALS Confronts Sen. Flake Over GOP Tax Bill
Sen. Jeff Flake (R-Ariz.) boarded a plane leaving Washington, D.C. on Thursday, less than a week after voting for a tax...
Sen. Jeff Flake (R-Ariz.) boarded a plane leaving Washington, D.C. on Thursday, less than a week after voting for a tax bill that could result in devastating cuts to disability programs.
Ady Barkan, a 33-year-old father living with amyotrophic lateral sclerosis (ALS), boarded the same flight after spending several days protesting the very legislation Flake helped ram through the Senate.
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Toys `R' Us Workers Go to Congress to Seek Curbs on Buyout Firms
Toys `R' Us Workers Go to Congress to Seek Curbs on Buyout Firms
“We need to fight for all workers who are being treated like the Toys ‘R’ Us employees, who are bearing the personal...
“We need to fight for all workers who are being treated like the Toys ‘R’ Us employees, who are bearing the personal economic costs of corporate greed run amok,” Senator Gillibrand said on Tuesday in a meeting organized by Rise Up Retail and the Center for Popular Democracy, which represent retail workers. “I will keep doing everything I can in the Senate to make that happen.”
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New York dedicates millions of dollars to help immigrants fight deportations
New York dedicates millions of dollars to help immigrants fight deportations
New York will soon offer free legal services for poor immigrants facing deportations, thanks to a new budget provision...
New York will soon offer free legal services for poor immigrants facing deportations, thanks to a new budget provision announced this week by Gov. Andrew Cuomo.
The state’s 2017-2018 budget sets aside $10 million for expanding immigrant legal defense services, $4 million of which will go to the Vera Institute of Justice’s New York Immigrant Family Unity Project — a coalition of groups that seek to ensure that all undocumented immigrants have public defenders...
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By A Thousand Cuts: The Complex Face of Wage Theft in New York
In recent years—at least as far back as the passage of the New York Wage Theft Prevention Act of 2010, through 2015,...
In recent years—at least as far back as the passage of the New York Wage Theft Prevention Act of 2010, through 2015, when a series of New York Times articles explored the shocking extent of wage theft and other workplace abuses in the nail salon industry—mainstream elected officials and the press alike have turned meaningful attention to the problem of wage theft in New York State and nationwide. The question is what remains to be done. This brief study does not attempt to answer that question fully, but begins the inquiry by delving into the shape that wage theft takes in New York City and statewide.
Download the report here
Case studies in this report focus on particular employers that low-wage worker advocates have identified as illustrating broader problems in sectors where wage theft is prevalent.
Though this study is merely an entry point to a much broader and deeper analysis, our results point to some common-sense first steps in improving wage theft enforcement in New York City, New York State, and beyond.
Recommendations include the following:
City, state and federal government should invest in rigorous social science and economic research to evaluate what types of education, enforcement, penalties, and damages are most successful in encouraging workers and others to blow the whistle on wage theft, compensating directly impacted workers, and deterring and reducing wage theft. Our legislative and regulatory approach to penalizing wage theft and retaliation should be reevaluated to take into account the impact that wage theft and retaliation have not only on the directly impacted workers but also on competing employers, entire geographic areas, sectors, and the economy. Outreach, education, and enforcement efforts need to be tailored to address the specific situations of certain sectors, ethnic groups, and communities. Government should partner with, and resource, community-based partners who have established trust in hard-to-reach communities of workers and employers. Government should partner with community and labor organizations with expertise in specific sectors and types of wage theft, to assist in bringing forward adequate and accurate testimony and evidence to evaluate compliance in that sector or type of employer. Government inspectors and investigators should receive regular training in sector-specific practices in order to rigorously evaluate testimony and facts presented by employees and employers for reasonability. Government enforcement needs to explore substantial regulatory, legislative and strategic changes to enable collection of unpaid wages, damages and penalties. Pilot projects should aggressively test the use of bonds in exploitative industries, the ability of courts and the Department of Labor (DOL) to freeze assets pre-judgment, and wage liens. Public procurement rules should prohibit convicted wage thieves from bidding on public contracts or dispositions at the federal, state and local level, or from receiving public subsidy, with permanent removal from bidding or eligibility lists in cases of egregious wage theft.Download the report here
Housing advocates accuse Wells Fargo of damaging communities through foreclosures
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a ...
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a new report released Tuesday from a consortium of grassroots activists and housing advocates, 11,616 of those loans are currently in foreclosure, out of roughly 65,000 homes in foreclosure in the state.
The report accuses Wells Fargo of damaging both California communities and the state’s overall economy. It was produced by the Alliance of Californians for Community Empowerment, the Center for Popular Democracy, and the Home Defenders League.
Ross Rhodes of the Alliance of Californians for Community Development said on a conference call Tuesday that Wells Fargo was singled out because the bank is "responsible for handling more delinquent loans than any other servicer."
He added that Wells Fargo is failing to live up to the terms of last year's mortgage settlement between the states and the country's biggest banks. Rhodes said that Wells is lagging behind both Bank of America and Chase in efforts to keep people in their homes.
In a statement, Wells Fargo said that its foreclosure rate in California is lower than its rate in the nation as a whole and that the report "appears to be an attempt to question Wells Fargo’s longstanding track record as a fair and responsible lender and servicer."
The bank emerged from the financial crisis relatively unscathed. But in recent years it has been called to task for past lending practices. It was was fined $175 million by the Justice Department in 2012 for steering minorities into costly subprime loans before the housing crisis.
The bank was also fined $148 million by the Securities and Exchange Commission for violations perpetrated by Wachovia Securities (Wells took control of Wachovia in 2008, at the height of crisis, when major U.S. banks were failing).
The report also argues that Wells Fargo’s foreclosures in the state are disproportionately affecting African American and Latino neighborhoods and could wind up costing the state $20 million in lost tax revenue.
The authors say that the solution is “principal reduction” — adjusting mortgages to reflect the reduced market value of homes in foreclosure.
Numerous economists support the idea of principal reduction, but the notion has been resisted at the federal level, most notably by Edward DeMarco, acting director of the Federal Housing Finance Agency, which has overseen mortgage giants Fannie Mae and Freddie Mac since they were taken into receivership during the financial crisis.
DeMarco has supported principal forbearance, a method that would not reduce the amount of mortgages held by Fannie and Freddie but rather restructure them so that homeowners could see more affordable payments.
The report's consortium of advocates doesn't favor forbearance, arguing that it can't address the core issue of borrowers drowing in debt.
But as tempting as principal reduction might be in theory, in practice is doesn't always lead to the homeowner staying in the home.
Economist Stuart Gabriel is Director of the Ziman Center for Real Estate at UCLA. He said that principal reduction isn't a "cure all."
"For borrowers that are deeply underwater, a modest amount of principal reduction is going to make no difference the ultimate outcome, which would be default and foreclosure," Gabriel said.
In its statement, Wells Fargo called its principal reduction efforts since 2009 "aggressive." But the advocacy groups said that Wells Fargo is one of the most difficult banks to work with, and that it engages in "dual tracking" — undertaking loan modifications at the same time it moves forward with the foreclosure process.
The report also recommends that Wells Fargo disclose more data about its foreclosures, and specifically about the impact that foreclosures are having on minority neighborhoods in California.
Gabriel said that more transparency about lending practices and the racial and geographical makeup of loan portfolios is always a good thing because additional information improves markets.
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