Black Unemployment Dips to 7-Year Low
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according...
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according to the latest jobs report from the U.S. Labor Department.
Even though the Black jobless rate has slowly ticked down to 2008 levels, some economists expressed concerns about the labor force participation rate, the measure of people who are employed or looking for jobs. The Black labor force participation rate decreased from 61.7 percent in June to 61.5 percent in July, which could indicate that the unemployment rate fell because some people simply gave up looking for work.
By comparison, the White unemployment rate and the labor force participation rate remained unchanged from June levels, 4.6 percent and 62.8 percent, respectively.
Valerie Wilson, an economist at the Economic Policy Institute, a Washington, D.C. based think tank focused on low- and middle-income families, found that Tennessee had the lowest Black jobless rate (6.9 percent) in the second quarter of 2015, which was almost the same as the highest White unemployment rate (7 percent in West Virginia).
Wilson also reported that the African American unemployment rate “was at or below its pre-recession level in eight states”: Michigan, Indian, Ohio, Tennessee, Mississippi, Texas, Illinois, and Missouri.
In the press release on her analysis of state unemployment rates by race and ethnicity, Wilson said that even though the Black unemployment rate has returned to pre-recession levels in those eight states, the states that are seeing improvements, with the exception of Texas, had the highest Black unemployment rates in the nation before the recession.
“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” Wilson said. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”
The national unemployment rate was 5.3 percent and 215,000 jobs were created in July.
Economic indicators for Black male workers over 20 years old followed the same pattern as Black workers in general. The Black male unemployment rate plunged to 8.8 percent from 9.5 percent the year before, but the participation rate also decreased from 67.6 percent in June to 67 percent in July.
On the other hand, Black female workers not only saw a slight increase in their month-over-month jobless rate as it edged up from 7.9 percent June to 8 percent in July, their labor force participation rate also increased from 62 percent to 62.1 percent, which could signal that Black women are entering the labor force and finding work.
In a statement about the jobs report, Rep. Robert C. “Bobby” Scott (D-Va.) said that the report showed that economy is still improving, growing and heading in the right direction.
“With the sixty-fifth consecutive month of private sector job growth, and the unemployment rate holding at 5.3 percent, our nation continues to recover from the 2008 economic recession,” said Scott. “Americans are finding more opportunities to get back to work, and put more money into their pockets.”
He also said, “While this is excellent news, our efforts to rebuild our economy are not complete until every person who wants a job is able to find a stable one.”
Connie Razza, the director of Strategic Research for the Center for Popular Democracy (CPD), a group focused on racial justice that describes itself as “pro-worker” and “pro-immigrant,” said that the latest job numbers show that flat wages and a sluggish recovery continue to threaten the livelihood of working families.
“Federal Reserve officials must look beyond the topline employment figures to determine whether the economy has truly recovered,” said Razza in a statement. “Even the state with the lowest rate of Black unemployment still has a rate equivalent to the state with the highest White unemployment rate.”
Razza continued: “With Black families still out of work and wage growth nowhere to be found, the economy is simply not ready for the Fed to slow it down.”
She warned the Federal Reserve against raising interest rates in 2015.
“While there are reports of the Fed staff suggesting one interest rate hike to 0.35 percent in the fourth quarter, compared to the [Federal Open Market Committee] forecasts of two hikes in the year achieving 0.65 percent, the Fed Up campaign remains convinced that the only humane, inclusive, and economically sound approach from the Fed would be to write off increasing interest rates for 2015, and instead to commit to wage targeting,” said Razza. “Resilient as our communities are, families are still hurting in this economy. The Federal Reserve can and should reduce inequalities in our economy.”
Source: The Dallas Weekly
Juez Federal Suspende la Acción Ejecutiva un Día Antes de Entrar en Vigor
Univision - February 16, 2015 - Un juez federal de Texas suspendió temporalmente el lunes la entrada en vigor de la...
Univision - February 16, 2015 - Un juez federal de Texas suspendió temporalmente el lunes la entrada en vigor de la acción ejecutiva del presidente Barack Obama, un día antes de que comenzara la inscripción a la primera parte que frena la deportación de unos 2.4 millones de dreamers.
“No está permitido hacer nada para implementar ninguno de los nuevos programas que Obama anunció.” El beneficio migratorio, anunciado el 20 de noviembre del año pasado por Barack Obama, en total, protege de la deportación a entre 4.5 y 5 millones de indocumentados, entre ellos, padres de ciudadanos y residentes legales permanentes (DAPA, por sus siglas en inglés) que están en el país desde antes del 1 de enero de 2010 y carecen de antecedentes criminales. También amplía la cobertura de la Acción Diferida (DACA, por sus siglas en inglés) del 15 de junio de 2007 al 1 de enero de 2010, cuya entrada en vigor estaba prevista para este 18 de febrero. El juez Andrew S. Hanen dio la orden de frenar la medida y dictó que el gobierno federal no tiene permitido hacer nada para implementar ninguno de los nuevos programas que Obama anunció en noviembre. Minutos después de haberse emitido la medida cautelar, el gobernador de Texas, Greg Abbott, quien lidera la demanda, anunció el fallo provisional a través de su cuenta en Twitter. Juez federal acepto su pedido para detener la orden ejecutiva para indocumentados bajo el programa de DAPA. El fallo provisional de Hanen es en respuesta a una demanda presentada en diciembre por 26 estados, liderados por Texas, contra la acción ejecutiva. Veinticuatro de ellos, gobernados por republicanos, argumentan que Obama se extralimitó en sus funciones y que la medida viola la Constitución. La decisión de Hanen significa que aquellos dreamers (soñadores) que tenían pensado enviar sus solicitudes para evitar ser deportados a partir de este miércoles, no podrán hacerlo. El dictamen provisional ocurre mientras la Corte Federal para el Distrito Sur de Texas, que preside Hanen, sigue revisando la demanda. En su fallo, el juez asegura que "al haber hallado que al menos un demandante satisface todos los elementos necesarios para mantener la demanda", concede "un mandato judicial temporal" para suspender la aplicación de las medidas hasta que haya "una resolución final de los méritos de esta causa o una orden ulterior de este tribunal". La acción ejecutiva frena temporalmente por tres años las deportaciones y concede un permiso de trabajo por el mismo periodo de tiempo. Al tercer año se esperaba que pudieran renovarse ambos beneficios. Los demandantes habían pedido a Hanen que emita una "orden judicial preliminar" que bloqueara temporalmente tanto DACA como DAPA en tanto la querella sigue su curso. El Servicio de Inmigración comenzará a recibir solicitudes de quienes califiquen para Acción Ejecutiva Extendida. Wendy Feliz, representante del American Immigration Council, había advertido en la víspera que Hanen no estaba obligado a tomar una decisión antes de este miércoles, “pero se esperaba que lo hiciera”, reportó la agencia mexicana Notimex. Otra de las opciones que tenía el juez, además de suspender temporalmente la acción ejecutiva, era no tomar acción alguna y también rechazar el otorgamiento de la suspensión pedida por los demandantes. También Hanen pudo haber emitido una orden de suspensión parcial contra algunos de los beneficios contenidos en la acción ejecutiva. La decisión de Hanen ocurre en momentos que el Congreso, controlado por los republicanos, debate si aprueba el presupuesto del Departamento de Seguridad Nacional (DHS, por sus siglas en inglés) para lo que resta del año fiscal 2015. A finales de enero la Cámara de Representantes aprobó incluir dos enmiendas al proyecto, una que anula la acción ejecutiva y otra que prohíbe al DHS utilizar dineros del presupuesto en la ejecución de la medida. El Presidente Barack Obama había advertido que vetará cualquier iniciativa de ley que frene la acción ejecutiva. Pero no puede vetar la medida de Hanen. Solo apelarla. De no aprobarse el presupuesto antes del 27 de febrero, el DHS se quedará sin fondos para seguir operando, excepto áreas de emergencia de seguridad nacional. Los republicanos, sin embargo, han dicho que seguirán desafiando la medida ya sea en el Congreso o en las cortes, y exigen al gobierno que escuche la voz del pueblo expresada en las urnas el martes 4 de noviembre del año pasado cuando concedió a los republicanos la mayoría en ambas cámaras del legislativo. La demanda del 3 de diciembre fue entablada por el entonces gobernador electo de Texas, el republicano Greg Abbott, y luego secundada por otros 25 estados, 24 de ellos gobernados por republicanos. West Virginia y Montana están gobernados por demócratas, pero sus fiscales son republicanos. Nevada, un estado gobernado por el hispano Brian Sandoval, es otra de las sorpresas de esta demanda. Los demandantes argumentaron en ella que Obama no siguió la Ley de Procedimiento Administrativo en la emisión de su directiva migratoria. Y sostienen que la acción ejecutiva de Obama, en la propia admisión del presidente, "cambia la ley y establece una nueva política, excede su autoridad constitucional y perturba el delicado equilibrio de poderes". “La extralimitación constitucional por el presidente Obama es clara y muy preocupante”, señala el recurso. El Center for Popular Democracy comentó que el fallo del juez Hanen es una medida cautelar temporal y que “no cambia el hecho de que la orden ejecutiva del presidente Obama sea una victoria para las familias inmigrantes. “Hacemos un llamado al Departamento de Justicia para que presente inmediatamente una instancia ante el Quinto Tribunal de Apelaciones de Circuito para que sea desechada esta demanda sin mérito que se traduce en un ataque a las familias inmigrantes y una pérdida de dinero de los contribuyentes, dijo Joaquín Guerra, del Proyecto Organización de Texas (Texas Organizing Project) en un comunicado poco después de conocerse el dictamen de Hanen. A mediados de enero, luego de una audiencia en la que ambas partes presentaron y defendieron sus argumentos, Hanen dijo que no emitiría un fallo sobre la solicitud de interdicto sino hasta antes del 30 de enero. Señaló que el caso era "un área de debate legítimo" y que "no hay tipos malos en esto". Dijo que Brownsville y el sur de Texas han visto tanto los beneficios como los inconvenientes de la aplicación estricta de las leyes de inmigración y de lo que "algunas personas llaman una política laxa de aplicación". Durante la audiencia Hanen admitió que había criticado la política de inmigración de Estados Unidos en dos fallos previos, pero también señaló que en ambos casos su determinación fue a favor del gobierno federal. Además de Texas, los estados demandantes son Alabama, Arizona, Arkansas, Carolina Norte, Carolina del Sur, Dakota del Norte, Dakota del Sur, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maine, Michigan, Mississippi, Montana, Nebraska, Ohio, Oklahoma, Utah, Virginia del Oeste y Wisconsin. Los estados que se oponen a la acción ejecutiva no solicitan una indemnización, sino que quieren que los tribunales bloqueen la acción ejecutiva y señalan que el mandatario se extralimitó en sus poderes. Esta no es la primera vez que Hanen se pronuncia en contra de los inmigrantes. Hanen, el año pasado, acusó al gobierno de participar en conspiraciones criminales para llevar al país niños de contrabando al reunirlos con los padres que vivían en el país de manera ilegal. SourceVeepstakes: Julian Castro moves to shore up a potential weakness
Veepstakes: Julian Castro moves to shore up a potential weakness
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul. Julian Castro’s...
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul.
Julian Castro’s Housing and Urban Development Department announced significant changes Thursday to a federal program that sold delinquent mortgages to private investors — a move that mollified progressive critics who threatened to undermine his vice presidential prospects.
With three weeks remaining until the Democratic convention and Hillary Clinton’s campaign narrowing down its list of potential ticket mates, the U.S. housing agency said it is changing a controversial program to give delinquent homeowners a new chance to reduce the principal they owe on their mortgage. The changes also prohibit financial firms from giving up on trying to sell or recuperate decrepit properties the businesses would rather walk away from.
As HUD secretary since 2014, Castro had been under attack from by at least 11 Latino and populist groups for his oversight of the department’s “distressed asset stabilization program,” which sold struggling homeowners’ mortgages to hedge funds. Castro, they alleged, failed to deliver on a HUD promise to sell more mortgages to non-profit community groups instead of financial firms.
Started in 2012, the program’s two stated objectives are to help struggling residents while also clearing billions of dollars of bad debt off the agency’s books. But liberals have argued the program undermines homeowner protections, especially for people in low-income neighborhoods, as HUD sold mortgages to the same financial firms that exploited borrowers in the lead-up to the 2008-2009 recession.
The changes came not long after Castro surfaced on Clinton's short list of vice presidential candidates — along with Sens. Tim Kaine and Elizabeth Warren — leading to immediate speculation about the HUD secretary’s political motivations.
Warren was among those calling for major reforms to the program.
“Given that Secretary Castro has only spent a brief time on the national stage, the black mark caused by the distressed asset issue stands out prominently on his record,” said Isaac Boltansky, director of policy research for Compass Point Research & Trading in Washington. He covers housing policy.
“There is no question that the left’s attack of this program generally — and Secretary Castro specifically — lowered the odds of him being tapped,” he said.
As severely-delinquent mortgages accumulated after the recession, the Federal Housing Administration, a division of HUD, needed to reduce debt liabilities to the government.
Under the program, delinquent loans held by banks but insured by the FHA are sold to new buyers, including hedge funds, private-equity firms and non-profit community groups. Through May 2016, HUD sold more than 105,000 FHA-insured loans valued at $17 billion, according to a report by the National Consumer Law Center.
Castro has not said much publicly about the program, which in recent weeks erupted into a politically-charged issue for the Obama administration, said sources with familiar with the situation.
The program was supposed to give struggling homeowners another chance to avoid foreclosure. But researchers following the program said that financial companies have used it to circumvent homeowner safeguards.
“If you have an option of selling your loan through [the] DASP, then you don’t have to go through state foreclosure procedures that have the consumer protections in them and actually help enforce FHA rules,” said Geoff Walsh, author of NCLC’s report. He previously worked as an attorney with Vermont Legal Aid, Inc. and specialized in housing, consumer and bankruptcy areas. “A lot of damage has been done,” he said.
The liberal groups held Castro responsible for the program’s flaws, even though it started before his tenure at HUD. But the groups immediately applauded HUD’s new changes to the program that they had advocated for.
Their website attacking Castro was still live on Friday, though it will be updated to reflect HUD’s changes, said Matt Nelson, managing director of Presente.org, which claims to be the largest U.S. online Latino organizing group.
Housing experts acknowledged that pressure from advocacy groups — which used the issue to question Castro’s progressive credentials — played a role in the revisions.
“But for his potential to be vice president, these changes probably don’t get made,” said Edward Gorman, head of community development for the National Community Reinvestment Coalition, whose members include nonprofits that buy DASP loans.
“It was the specific targeting of the secretary on this issue and the gathering of liberal senators in support that caused the [Obama] administration and the secretary particularly to take another look at this issue,” he said. “This will be fodder for Republicans. This will become a political issue.”
For Castro, it had already metastasized into an issue that clouded his vice presidential prospects. Widely regarded as one of the Democratic Party’s rising Latino stars, the former San Antonio mayor was targeted by a coalition of activist groups that recognized the leverage afforded to them by a presidential primary fight colored by questions about Clinton’s ties to Wall Street and Bernie Sanders’ populist, anti-Wall Street rhetoric.
“HUD has continually enhanced the DASP program by making improvements before every sale since 2014,” an agency spokeswoman said in a statement. “As a result, tens of thousands of families have been able to remain in their home or avoid foreclosure through the program.”
Maurice Weeks, a housing staffer at the Center for Popular Democracy, one of the groups supporting the attack on Castro’s handling of the DASP, said he is grateful to see the changes HUD announced. But his group will want to make sure the changes actually result in better conditions for communities.
“It became a political problem for Castro since he’s the head of that department,” Weeks said. “We didn’t set out to determine if Castro was a good VP candidate or not. Our focus was on homeowners across the country.”
By PATRICK TEMPLE-WEST
Source
New York Fed taps John Williams to be next president
New York Fed taps John Williams to be next president
"Today, the Federal Reserve concluded another opaque and controversial Reserve Bank presidential selection process by...
"Today, the Federal Reserve concluded another opaque and controversial Reserve Bank presidential selection process by ignoring the demands of the public and choosing yet another white man whose record on Wall Street regulation and full employment raises serious questions,” said Shawn Sebastian, Fed Up’s director. Fed Up said it submitted a list of nine non-white male candidates to the New York Fed’s search committee and that most of them were never contacted.
Read the full article here.
Tipped Workers Fight for Higher Wages
Amsterdam News - July 17, 2014, by Stephon Johnson - Last week, a new coalition of food delivery workers, low-wage...
Amsterdam News - July 17, 2014, by Stephon Johnson - Last week, a new coalition of food delivery workers, low-wage tipped workers and women’s rights leaders across New York called for an end to subminimum wages for tipped workers. This campaign begins right when Gov. Andrew Cuomo’s administration is preparing to appoint a Wage Board charged with recommending an increase in the minimum wage for tipped workers.
The broad coalition fighting for subminimum wage workers includes Make the Road New York, the Center for Popular Democracy, Fast Food Forward, the Labor-Religion Coalition, the National Employment Law Project, New York Communities for Change, the Restaurant Opportunities Center of New York, Restaurant Opportunities Centers United, Strong for All, United New York and other community groups.
On July 10, Domino’s delivery workers rallied outside of a Manhattan Domino’s restaurant to call for an end to subminimum wages for tipped workers, citing wage theft, and demanding an administrative wage order that requires companies to directly pay tipped workers the state’s minimum wage, with tips as an addition.
“The public might think we do well, but the reality is that many times we don’t even get a tip,” said Alfredo Franco, a tipped Domino’s delivery worker in New York City. “Delivery fees are often confused with a tip for the drivers. We never see a penny of that. Many of us have to work two or three jobs just to get by, sacrificing everything, including time with our families. We need a reliable income. The tipped [sub]minimum wage has to go.”
According to a report released on July 9 by the National Employment Law Project, a wage order eliminating the tipped subminimum wage would benefit close to 229,000 low-wage tipped workers in New York. Women make up more than 70 percent of the low-wage work force. The wage order would benefit working women and, according to the report, make progress in addressing the gender pay gap in New York.
Michael Stewart, executive director of United NY, released a statement championing the NELP’s report. “As New York faces one of the worst economic inequality crises in the nation, it should put an end to the subminimum wage for tipped workers that leaves so many of our neighbors living in extreme poverty,” said Stewart. “The minimum wage is already too low. Allowing employers to pay below it does further damage to workers and our economy.”
As a result of legislation signed by Cuomo last year, New York’s minimum wage is scheduled to go up to $9 an hour by Dec. 31, 2015, and the minimum wage for tipped food service workers is still stuck at $5 an hour, with tipped hotel workers earning slightly more at $5.65 an hour.
Zenaida Mendez, president of the National Organization for Women of New York State, said the gender pay gap needs to close, and no longer allowing the subminimum wage for tipped workers would help it along.
“The poverty rate for waitresses is three times the rate for the American workforce as a whole,” said Mendez. “For this reason, the National Organization for Women is seeking to eliminate the subminimum wage for tipped workers. This pay inequality must end.”
Source
Bill de Blasio: From Education to Poverty, Leadership by Example
Huffington Post - October 9, 2014, by Richard Eskow - Progressives who are elected to executive office have a unique...
Huffington Post - October 9, 2014, by Richard Eskow - Progressives who are elected to executive office have a unique opportunity to highlight neglected issues and stimulate much-needed debate, by taking actions which challenge the "conventional wisdom." They can change the political landscape by employing a principle that might be called "leadership by example."
The mayor of New York City is uniquely positioned to play this role, thanks to that city's prominence, and so far Bill de Blasio has done exceptionally well at it. Two of his actions -- on education and assistance to the poor -- deserve particular commendation, because they challenge the "bipartisan" consensus that has too often strangled open debate and left the public's interests unrepresented.
Action for the Impoverished
1. "Welfare Reform's" Record of Failure
"Centrist" Democrats like Bill Clinton, together with Republicans like Rudy Giuliani and Michael Bloomberg, have long sung the praises of "welfare reform" -- a set of policies that promised to turn welfare recipients into "productive citizens" through a combination of educational programs, work requirements, and "tough love" that denied benefits to some of them.
Clinton signed the "Personal Responsibility and Work Opportunity Reconciliation Act" on August 22, 1996, saying it would "end welfare as we know it and transform our broken welfare system by promoting the fundamental values of work, responsibility, and families." That bill quickly became a symbol of "bipartisan consensus" and a much-touted piece of model legislation for the neoliberal economic agenda.
Unfortunately, we now know that it didn't work. In fact, it backfired. A report from the University of Michigan's National Poverty Center showed that extreme poverty increased in the United States by 130 percent between 1996 and 2013 -- and pinpointed "welfare reform" as the cause.
Despite its documented failure, the myth persists that "welfare reform" succeeded. This belief has so far proved resistant to the mounting evidence against it, perhaps because it serves the personal interests of wealthy individuals and corporations who don't care to be taxed for antipoverty programs.
This "reform" myth also serves to assuage their consciences. Politicians like Cuomo and Clinton are all too happy to help in that effort by assuring wealthy Americans that this policy is smart, even liberal, and that it only coincidentally happens to benefit them personally.
2. The End of Welfare As They Know It
The mayor of New York City cannot supersede a federal law, but a recent executive action will hopefully serve to re-open the debate on welfare "reform." De Blasio ended the policies of his GOP predecessors and eased requirements for welfare eligibility in New York City. New rules will give young people more time to complete their educations, and native speakers of foreign languages time to learn English. He also cut back on some "workfare" requirements (which in some cases amount to little more than ritual humiliation.)
For the first time, allowances will be made for parental duties, travel time, and other obstacles which are faced every day by the poor -- but which are little-understood by prosperous "bipartisans" from either party.
As a de Blasio official explained, "we have the data to show that toughness for the sake of toughness hasn't been effective."
3. Data Driven
Data. That word is anathema to "centrist" politicians and commentators who claim to be technocrats, but who are actually driven by ideology, donor cash, or both. When de Blasio issued his orders the hyperventilation was, predictably, all but instantaneous. "We don't need to guess how de Blasio's welfare philosophy will pan out," wrote Heather McDonald, who is "Thomas W. Smith Fellow at the Manhattan Institute."
Reihan Salam fulminated in Slate that welfare programs must "rest on a solid moral foundation. And that, ultimately, is what work requirements are all about."
But when the work isn't available, or people have no practical way of obtaining it, it's immoral to make them -- or their children -- suffer. By ending the inhumane but "bipartisan" policies of his predecessors, Bill de Blasio has potentially re-opened the debate on the draconian and failed "welfare reform" concept.
Action on Education
1. Charter Schools Are "Special Interests"
De Blasio's much-publicized struggle with charter school CEO Eva Moskowitz began when he overturned Bloomberg's decision to give her "Success Academy" free space in city buildings. That led her to make a series of false claims about her organization's accomplishments -- claims that were effectively debunked by Diane Ravitch and Avi Blaustein. Success Academy students aren't the best in the state, they aren't the most difficult students in the city -- and the program is so cost-inefficient that it spends over $2,000 per year more per student than other schools serving similar populations.
Bloomberg was generous to Moskowitz because her program suited his predilection for Wall Street-friendly, corporate-cozy ideas -- ideas which appeared on the surface to promote innovation or "reform," but which on further study reveal themselves as a wealth transfer from the many to the few, often at the expense of the public good.
That's exactly what the charter-school movement represents. Sure, it sounds like a good idea: Schools will "compete" for students, and those which offer the best "products" will succeed. As writer and education activist Jeff Bryant says: Everybody loves "choice," right?
But the concept is flawed at its core. Schools aren't failing because students and their parents don't have "choices" in schools. They're failing -- to the extent they are, because even that concept is overhyped -- because they don't have choices in jobs or housing. Schools are struggling because we don't pay teachers well enough, because we underfund our school districts, and because social factors (especially poverty) inhibit the learning process.
2. Rockets to Nowhere
For all the hype and all the money, there's still no evidence that charter schools work. Advocates love to claim that "school choice" offers lower-income children a way out of poverty. But Milwaukee, which the conservative American Enterprise Institute calls "one of the most 'choice-rich' environments in America," remains one of America's 10 most impoverished big cities.
And kids aren't any more educated in Milwaukee than they were before they were given all this "choice." Educator Diane Ravitch reviewed the data and found that, 22 years after the program was implemented, there was no evidence of improvement in students' test scores.
The Economic Policy Institute (EPI) reviewed the "Rocketship" program, which has bid to take over Milwaukee's underperforming schools, and found that it isn't working. They observed that "in 2012-2013, all seven of the Rocketship schools failed to make adequate yearly progress according to federal standards."
Call it "failure to launch."
3. Follow the Money
The EPI also noted that "Blended-learning schools such as Rocketship are supported by investment banks, hedge funds, and venture capital firms that, in turn, aim to profit from both the construction and, especially, the digital software assigned to students."
That might help explain why wealthy Wall Street investors paid Moskowitz's $2,000-plus-per-student cost overruns out of their own pockets. The same hedge funders also happen to have donated at least $400,000 to Andrew Cuomo's reelection campaign. Perhaps coincidentally, Cuomo led the charge against de Blasio after he moved to end Moskowitz's taxpayer-funded privileges.
Charter schools are an ideological and investment opportunity, which explains why enormous sums of money have been expended promoting them. (The latest effort, funded by $12 million from the wealthiest families in the nation, is something called "The Education Post."
Not all charter schools are driven by the profit motive, and some may in fact do a good job. But there is no evidence to support their claims, their operating principles, or the broader "free market" ideology behind them -- an ideology that is founded on hostility to government itself.
4. Breeding Fraud
Ravitch also notes that Washington, D.C., whose "Opportunity Scholarship Program" launched at least one educational celebrity career, was equally unable to demonstrate results. Its final-year report notes that "There is no conclusive evidence that the OSP affected student achievement."
There is conclusive evidence, however, that the charter school movement has produced at least one fairly widespread outcome: fraud. A recent report from the Center for Popular Democracy, Integrity in Education, and ACTION United told the story. The report, titled "Fraud and Financial Mismanagement in Pennsylvania's Charter Schools," showed that the state had failed to properly audit or review its publicly-funded charter schools.
It also uncovered a pattern of abuses so disturbing it makes charter schools look like petri dishes for fraud. The director of one charter school diverted $2.6 million in school funds to rebuild his church. Another stole $8 million for "houses, a Florida condominium, and an airplane." Yet another used taxpayer funds to finance "a restaurant, a health food store, and a private school." A couple stole nearly $1 million for their personal use.
There are more revelations in the report -- and it only covers one state.
And yet, despite mounting evidence to the contrary, charter schools continue to be talked up by Bill Clinton, whose recent boosterism was described by Salon's Luke Brinker as "stunning" in its variance with the facts. (Jeff Bryant has more on the reality behind Clinton's disingenuous remarks.)
5. The Ongoing Battle
De Blasio acted wisely in moving to end Bloomberg's gift of scarce New York City school resources to Moskowitz. He was ultimately forced to back down, at least in the short term, after her big-dollar backers won a victory in Albany.
That was no surprise, given the money behind the so-called "reformers." But it's not the end of the story, either. De Blasio's position on charter schools triggered a fierce response -- but it also triggered a long-overdue conversation.
By challenging the conventional wisdom on charter schools, Bill de Blasio has started something their backers didn't want: a genuine debate on their merits. He may have lost a battle, but if the debate continues he's likely to win the war.
Leadership Through Action
By taking actions which challenge the orthodoxy of his own party's corporate wing -- an orthodoxy shared and taken to extremes by the entire GOP -- Bill de Blasio is changing the political landscape. Although he is reportedly close to the Clintons (he managed Hillary's 2000 senatorial campaign), his executive decisions are offering a new political vision for progressives who have felt starved for representation in the two-party system of recent decades.
De Blasio's deeds haven't been limited to education and welfare, of course. As we've discussed elsewhere, he's taken on issues that range from the minimum wage to the environment, and to housing as a human right.
He's made mistakes, and he's all but certain to make more as he navigates difficult political waters. De Blasio's trying to effect change from within the political process, which is always a risky endeavor. But he's made great strides in a short time. His is the sort of leadership which can change the national political landscape even as it improves the quality of life for his constituents.
Bill de Blasio is using his position as mayor of New York to lead -- with action as well as words. And for that he's owed a debt of gratitude.
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Climate Jobs for All
Climate Jobs for All
Other groups like the Sierra Club, Demos, 350.org, the Center for Popular Democracy, the Labor Network for...
Other groups like the Sierra Club, Demos, 350.org, the Center for Popular Democracy, the Labor Network for Sustainability, and the US Climate Action Network have also been discussing the climate jobs guarantee (CJG).
Read the full article here.
Why Diversity Matters at the Federal Reserve
Why Diversity Matters at the Federal Reserve
There’s no question that race and gender matter in determining people’s economic fortunes. African Americans’...
There’s no question that race and gender matter in determining people’s economic fortunes. African Americans’ unemployment rate is typically twice as high as that of whites. The racial wealth gap has widened since the financial crisis, when African Americans and Hispanics—who had a disproportionate share of their wealth tied up in their homes—disproportionately suffered from subprime loans and foreclosures. The Federal Reserve’s Survey of Consumer Finances finds that the median wealth of a white family in 2013, the last year studied, was $134,008. For Hispanics, it was just $13,900. For African-Americans, $11,184. And as everyone knows, or should, women still make 79 cents for every dollar men make.
These deficiencies are more likely to be ignored when our most important economic policymakers don’t reflect the faces of all Americans. Yesterday, 127 Democratic members of Congress wrote to Federal Reserve chair Janet Yellen about the lack of diversity at the central bank. “The leadership across the Federal Reserve System remains overwhelmingly and disproportionately white and male,” the letter notes. Led by Senators Bernie Sanders and Elizabeth Warren, this high-level challenge also castigates the Fed for being dominated by former and current executives of financial institutions and large corporations, rather than people with backgrounds in academia, labor, or consumer organizations.
The voices of those left behind most egregiously in the economic recovery are simply not present in Fed deliberations.
Momentum to fix the Fed’s diversity problem grew on Thursday when Hillary Clinton endorsed the viewpoints expressed in the letter. Her spokesperson Jesse Ferguson told The Washington Post, “Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms—like getting bankers off the boards of regional Federal Reserve banks—are long overdue.”
The Fed’s lack of diversity might actually violate the law. Under the Federal Reserve Reform Act of 1977, regional Federal Reserve bank directors are required to “represent the public, without discrimination on the basis of race, creed, color, sex, or national origin, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.” The original Federal Reserve Act only mandated representation from agriculture, commerce, and industry.
It’s unclear what enforcement of that 1977 requirement would look like. But clearly the Fed isn’t living up to it. The members of Congress rely on a February report from the Center for Popular Democracy, organizers of the “Fed Up” coalition, which has pressured the central bank to adopt pro-worker policies. According to their figures, 83 percent of Federal Reserve board members are white, and 72 percent are male. Among the twelve regional Fed bank presidents, only Neel Kashkari of the Minneapolis Fed is non-white, and only Esther George (Kansas City) and Loretta Mester (Cleveland) are female. And among voting members of the Federal Open Market Committee (FOMC), which makes monetary policy decisions, it’s even worse: All ten currently serving members are white.
The lack of occupational diversity is also pretty stark. The Center for Popular Democracy studied the regional feds’ boards of directors, finding that 39 percent represent financial institutions. The Fed’s role as a key supervisor of major banks makes this highly suspect—especially considering there is no mandate for financial interests to be represented on the Fed board.
Another 29 percent of the Fed regional directors represent commerce and industry. Only 11 percent come from community, labor, consumer, or academic organizations. Even representation from the service sector, which has an overly non-white workforce and has expanded in recent years, has shrunk as a percentage of Fed bank-board members relative to 2010, the last time the boards’ makeup was studied.
It’s unusual for members of Congress to take such a public stand on the Federal Reserve, given their mindfulness of central bank independence. But they are recognizing that the lack of diversity has an important effect on economic policy. A more diverse Fed might pay more attention to how far communities of color are from full employment when deciding whether or not to raise interest rates, which they are now deliberating. A more diverse Fed might not be as consumed with the concerns of finance and industry, and their desire to keep inflation and wages low. It might consider how banks have traditionally preyed on communities of color, and target its supervision activities to reflect that.
The voices of those left behind most egregiously in the recovery are simply not present in Fed deliberations. The members of Congress cited a recent blog post by former Minneapolis Fed president Narayana Kocherlakota, who said that “there is one key source of economic difference in American life that is likely underemphasized in FOMC deliberations: race.” Kocherlakota searched transcripts of FOMC meetings from 2010 (the most recent ones released). That entire year, African American unemployment stood at 15.5 percent or above. But, writes Kocherlakota, “Based on that search, my conclusion is that there was no reference in the meetings to labor market conditions among African Americans.”
Traditionally, public pressure on the central bank has come from the right, from the likes of Ron Paul’s “End the Fed” movement. Progressives were largely absent from the conversation, despite the Fed’s central economic role. No more: Thursday’s letter to Yellen is the biggest success yet for the Fed Up campaign, launched two years ago to amplify the voices of communities that didn’t benefit from the recovery. The campaign has brought together labor and community groups to demand that the Fed take its mandate to maximize employment seriously—taking into account all communities, not just affluent ones. And now Fed Up’s views have become dominant in the Democratic Party.
In addition to the hefty names of Sanders and Warren, co-signers include 116 House Democrats, more than half of the caucus, as well as the ranking members of the Financial Services Committee (Maxine Waters) and the Monetary Policy Subcommittee (Gwen Moore), the committees with oversight of the Fed. And Clinton’s endorsement of Fed Up’s sentiment puts most of the ideological spectrum of the party on the side of reform.
But what does reform look like? The Center for Popular Democracy’s February report recommends that each regional board contain at least one member from a labor group, a community organization, academia, and a community bank or credit union. A separate reform proposal from former Yellen advisor Andrew Levin includes a number of ideas, including banning anyone affiliated with a financial institution from serving as a Fed director.
These ideas can be congressionally mandated. That will take time, of course, but the movement has begun to get Democrats off the sidelines to pressure the Fed. When Yellen testified before the House and Senate in February, giving her semi-annual Monetary Policy Report, she received questions about the lack of diversity from 15 different members of Congress. Yellen expressed concern that, among other things, no African American has ever led a regional Federal Reserve bank in U.S. history.
The fact that political pressure can make a difference was again signified by the quick response of a Fed spokesman to Thursday’s letter. The Fed statement said the central bank has “focused considerable attention in recent years on recruiting directors with diverse backgrounds and experience.” Those aspirations have not yet translated into results, however, even after the Fed established an internal diversity office in 2011.
It’s hard for the traditionally cloistered Fed to ignore concerns when they come from high-level Democrats. And just having ordinary workers in the public debate already diversifies the Fed, in a sense. No longer can they simply be responsive to Wall Street without further discussion.
BY DAVID DAYEN
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Janet Yellen, the first woman Fed chair, proved the skeptics wrong and got fired anyway
Janet Yellen, the first woman Fed chair, proved the skeptics wrong and got fired anyway
On February 3, Federal Reserve Chair Janet Yellen, the first woman to lead the central bank and likely the most...
On February 3, Federal Reserve Chair Janet Yellen, the first woman to lead the central bank and likely the most qualified nominee ever for the post, will exit the Fed, leaving a legacy described as “near perfection” and with an “A” grade from a majority of economists.
And yet in 2014, the US Senate confirmed Yellen by a vote of 56-26, the lowest number of “yes” votes a confirmed Fed chair has ever received.
Read the full article here.
Economic Inequality: Safe Words, at Last
OZY - December 23, 2013, by Pooja Bhatia - For decades, talk about economic inequality was taboo. Those who tried were...
OZY - December 23, 2013, by Pooja Bhatia - For decades, talk about economic inequality was taboo. Those who tried were met with accusations of sour grapes, inciting class warfare, or — gasp! — advocating socialism.
But such rhetorical bludgeons appear to have lost force in recent years, and words like “inequality” and “economic fairness” have at last found a place at the table of mainstream American political discourse. It’s not quite the head of the table, but it’s not the servants’ quarters either.
Words like “inequality” and “economic fairness” have at last found a place at the table of mainstream American political discourse.
“The core issue of economic justice has been getting more traction now than during most of my time in organizing,” says Andrew Friedman, who’s been a progressive organizer for more than 15 years and now co-directs the Center for Popular Democracy in New York. Derecka Mehrens, executive director of labor-oriented think tank Working Partnerships USA in San Jose, Calif., agrees: “There’s been a sea change in how and even whether we talk about inequality.”
The signs are everywhere. In his November apostolic exhortation, the pope warned of the “tyranny” of unfettered capitalism and called “an economy of exclusion and inequality” sinful. Clear majorities of Americans support hiking the minimum wage and other policies that aim to reduce the wealth gap. Earlier this month, President Obama positioned inequality and lack of social mobility as the “defining issue of our time.” Mayors-elect of major cities all made economic inequality central to their platforms. And this year’s National Book Award for nonfiction went to George Packer’s The Unwinding, which chronicles rising social and economic inequality in the United States.
Inequality talk is no longer off-limits for a simple reason: The lot of many has stagnated or worsened over the past decade, in some cases severely.
Some credit the 2011 Occupy movements for popularizing economic inequality. (Or blame it, depending on their perspective.) But the main reason inequality talk is no longer off-limits is probably simpler: The lot of many has stagnated or worsened over the past decade, in some cases severely. Some 10 million people lost their homes in the Great Recession. Although unemployment is at a five-year low, the decline is partly because many have stopped looking for work.
As OZY noted a few weeks ago, the lag between technical “recovery” and job growth is lengthening, and these days it’s lingering four to five years. No wonder the Great Recession’s rough ride seems endless. Moreover, while worker productivity has increased over the past decade, real wages have stagnated or declined — leaving the average worker to wonder just where the gains from productivity are going.
“They hear the news that the stock market is climbing and say, Oh really?” Mehrens says.
Lovely A. Warren won election as mayor of Rochester last month with a campaign lamenting what she called the “two Rochesters,” challenged by crime and poverty, but also boasting prosperous neighborhoods.
Economic inequality has been growing since at least the early 1980s. But it was harder to complain about during the Clinton years, when broad-based growth lifted all boats, yachts and dinghies alike. Economic inequality grew during the Bush years too, but those were the days of subprime homeownership and plasma TVs for all. Five years after the collapse of that easy-credit economy, most Americans are still hurting. The average household has recovered less than half the wealth it lost during the recession.
As a result, income inequality has become a winning issue in some cities. The mayors-elect of New York, Pittsburgh and Minneapolis made economic justice a central plank of their platforms — and did so despite naysayers and with newfound success. New York Mayor-elect Bill de Blasio’s “tale of two cities,” for instance, was not much different from Fernando Ferrer’s campaign theme in 2005 or Ruth Messinger’s in 1997 — but only in the New York of 2013 did it resonate.
It was harder to complain about during the Clinton years, when broad-based growth lifted all boats, yachts and dinghies alike.
Not that the discursive war has been won, mind you. Plenty of people and conservative think tanks still argue that inequality has nothing to do with poverty. Winning a war of words wouldn’t be enough anyway, organizers say: “We need to figure out how to use this sea change in how we talk about inequality to how we act against inequality,” says Mehrens.
The newfound cache of certain phrases has had some perverse effects. Developers and other big employers have latched onto terms like “living wage” but not always with worker-friendly intentions, says Lee Strieb, a researcher with labor organization Unite Here. Developers have “attempted to wrap themselves in the flag of the living wage, almost as a shield to avoid unionization,” says Strieb. ”There is a heightened sensitivity to the need to address [the wage] issue — but to the extent they can address it in a superficial way, they will.”
Mr. de Blasio’s relentless critique of economic inequality in New York seemed to resonate with voters, who elected him in a landslide.
The shift could signal a readiness to engage meaningfully with issues like the living wage or tax increases on top earners.
It’s unclear whether 2014 will set in motion changes to our income distribution. Mayors alone may have little power to tackle the issue. They usually can’t run big deficits and, in cities like San Francisco and New York, space for affordable housing is hard to find. Most important, mayors can’t singlehandedly restore the middle-class jobs that disappeared during the recession.
Yet the shift in tone and rhetoric is significant and could signal a readiness to engage meaningfully with issues like the living wage or tax increases on top earners. Consider Cam Kruse, 72, a mostly retired civil engineer who is active in ISAIAH, a social justice organization of about 100 churches in metropolitan Minneapolis. Kruse believes in small government. When working full time, he perched in the top one to three percent of earners. And he was a Republican for most of his adult life.
But earlier this year he found himself urging the state legislature to raise tax rates on top earners, which, he said, had fallen through the decades. Growing “gaps” in education, health, housing and transportation worried him. “My success, and that of all the other top earners in Minnesota, has been based on the investments that people before us made,” he testified. “It is our turn to give back and make investments for those who will be our future.”
The tax increase passed.
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23 hours ago
23 hours ago