N.J. company named among worst for wage theft fined $3.2 million
N.J. company named among worst for wage theft fined $3.2 million
NEW YORK-- The New York City Comptroller levied a huge fine on a Parsippany company that cheated dozens of workers,...
NEW YORK-- The New York City Comptroller levied a huge fine on a Parsippany company that cheated dozens of workers, mostly immigrant laborers, out of millions of dollars in wages for work on city projects.
K.S. Contracting, owned by Paresh Shah, was ordered to pay $3.2 million and will also be barred from receiving state contracts for five years.
In its statement the comptroller's office did not identify the headquarters of Shah's company, but an Internet search turned up multiple Parsippany addresses for the business. State records tie Shah to at least one of those addresses, The Daily Record reported.
The company, named in 2015 as one of the worst wage theft violators in the city by the Center for Popular Democracy, was awarded more than $21 million in contracts between 2007 and 2010.
K.S. Contracting came under investigation in May 2010, when an employee filed a complaint. An investigation over the next several years uncovered a kickback scheme targeting immigrant employees, Comptroller Scott M. Stringer said.
Following a four-day administrative trial in May 2016, Stringer's office learned that checks were regularly issued to just half the workforce, which was ordered to cash them and return the money to supervisors. The cash was then given to all the workers at a rate significantly below the prevailing wage.
At least 36 workers were cheated out of $1.7 million in wages between 2008 and 2011, with some workers who were to be paid a combined wage and benefits package of $50 an hour receiving just $90 a day in cash. Most of the victims were workers of Latino, West Indian or South Asian descent, Stringer said.
"With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won't back down in defending them," New York Stringer said in a statement.
"Contractors might think they can take advantage of immigrants, but today we're sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability."
By Paul Milo
Source
What should — and should not — be written into a new U.S. education law
Both the U.S. House and Senate are now — eight years late — debating this week how to rewrite the Elementary and...
Both the U.S. House and Senate are now — eight years late — debating this week how to rewrite the Elementary and Secondary Education Act, known in its current form as No Child Left Behind. Signed into law in 2002, NCLB was supposed to have been rewritten by Congress in 2007, but sheer negligence and an inability among lawmakers to agree meant that America’s public schools were forced to live under a law that was fatally flawed.
Here is a letter that was sent to every senator about what the signatories believe should — and should not — be in any new education law. Addressed to Senate Majority Leader Mitch McConnell of Kentucky and Democratic Minority Leader Harry Reid of Nevada, the letter was sent by the Journey for Justice Alliance, a coalition of nearly 40 organizations of parents and students of color in 23 states, as well as from 175 other national and local civil rights, youth and community organizations.
Dear Senators McConnell and Reid,
The Journey for Justice Alliance, an alliance of 38 organizations of Black and Brown parents and students in 23 states, joins with the 175 other national and local grassroots community, youth and civil rights organizations signed on below, to call on the U.S. Congress to pass an ESEA reauthorization without requiring the regime of oppressive, high stakes, standardized testing and sanctions that have recently been promoted as civil rights provisions within ESEA.
We respectfully disagree that the proliferation of high stakes assessments and top-down interventions are needed in order to improve our schools. We live in the communities where these schools exist. What, from our vantage point, happens because of these tests is not improvement. It’s destruction.
Black and Latino families want world class public schools for our children, just as white and affluent families do. We want quality and stability. We want a varied and rich curriculum in our schools. We don’t want them closed or privatized. We want to spend our days learning, creating and debating, not preparing for test after test.
In the Chicago Public Schools, for example, children in kindergarten through 8th grade are administered anywhere between 8 and 25 standardized tests per year. By the time they graduate from 8th grade, they have taken an average of 180 standardized tests! We are not opposed to state mandated testing as a component of a well-rounded system of evaluating student needs. But enough is enough.
We want balanced assessments, such as oral exams, portfolios, daily check-ins and teacher created assessment tools—all of which are used at the University of Chicago Lab School, where President Barack Obama and Chicago Mayor Rahm Emanuel have sent their children to be educated. For us, civil rights are about access to schools all our children deserve. Are our children less worthy?
High stakes standardized tests have been proven to harm Black and Brown children, adults, schools and communities. Curriculum is narrowed. Their results purport to show that our children are failures. They also claim to show that our schools are failures, leading to closures or wholesale dismissal of staff. Children in low income communities lose important relationships with caring adults when this happens. Other good schools are destabilized as they receive hundreds of children from closed schools. Large proportions of Black teachers lose their jobs in this process, because it is Black teachers who are often drawn to commit their skills and energies to Black children. Standardized testing, whether intentionally or not, has negatively impacted the Black middle class, because they are the teachers, lunchroom workers, teacher aides, counselors, security staff and custodians who are fired when schools close.
Standardized tests are used as the reason why voting rights are removed from Black and Brown voters—a civil right every bit as important as education. Our schools and school districts are regularly judged to be failures—and then stripped of local control through the appointment of state takeover authorities that eliminate democratic process and our local voice—and have yet so far largely failed to actually improve the quality of education our children receive.
Throughout the course of the debate on the reauthorization of ESEA, way too much attention has focused on testing and sanctions, and not on the much more critical solutions to educational inequality.
In March, the Alliance to Reclaim Our Schools issued a letter to the House and Senate leadership, with four recommendations for ESEA Reauthorization.:
First, there are 5000 community schools in America today, providing an array of wrap around services and after school programs to children and their families. These community schools serve over 5 million children, and we want to double that number and intensify the effort. We are calling for a significant investment in creating thousands moresustainable community schools. They provide a curriculum that is engaging, relevant and challenging, supports for quality teaching and not standardized testing, wrap-around supports for every child, a student centered culture and finally, transformative parent and community engagement.We call on the federal government to provide $1 billion toward that goal, and we are asking our local governments to decrease the high stakes standardized testing with its expensive test prep programs and divert those funds into resourcing more sustainable community schools. Second, we want to include restorative justice and positive approaches to discipline in all of our sustainable community schools, so we are calling on the federal government to provide $500 million for restorative justice coordinators and training in all of our sustainable community schools. Third, to finally move toward fully resourcing Title I of the Elementary and Secondary Education Act, we call on the federal government to provide $20 billion this year for the schools that serve the most low income students, and more in future years until we finally reach the 40% increase in funding for poor schools that the Act originally envisioned. Finally, we ask for a moratorium on the federal Charter Schools Program, which has pumped over $3 billion into new charter schools, many of which have already closed, or have failed the students drawn to them by the illusive promise of quality. We want the resources that all our schools deserve – we don’t need more schools. We need better ones.So now we are prepared to say, clearly, that we will take nothing less than the schools our children deserve. It will cost some money to support them, but that’s okay, because we have billionaires and hedge funders in this country who have neverpaid the tax rates that the rest of us pay. We are a rich country, and we can afford some world class community schools.
As we continue to organize for educational justice, it is that tradition of struggle that will guide J4J, AROS and the scores of organizations who have signed on to this letter. We are the people directly impacted and will continue to organize in the memory of the great institution builder Ella Baker who said, “Oppressed people, whatever their level of formal education, have the ability to understand and interpret the world around them, to see the world for what it is, and move to transform it.” Our voices matter.
In Anticipation,Jitu BrownJourney for Justice Alliance
Along with…
ACTION of Greater Lansing, Lansing, MIAction NCWashington, DCAction UnitedAdvocates Building Lasting Equality (ABLE), NHAdvocating, Mobilizing, and Organizing in Solidarity (AMOS), La Crosse, WIAFT Local 2115, Birmingham, ALAlliance AFT DallasAlliance for Congregational Transformation Influencing Our Neighborhoods (ACTION), Youngstown, OHAlliance for Educational Justice (AEJ)The Alliance for Newark Public SchoolsAlliance for Public Schools, FLAlliance for Quality Education (AQE), New YorkAlliance of Communities Transforming Syracuse (ACTS),Syracuse, NYAlliance to Reclaim Our Schools (AROS)American Federation of Teachers (AFT)Arkansas Community OrganizationAROS HoustonAsamblea de Derechos Civiles, Twin Cities/St. Cloud, MNAtlantans Building Leadership for Empowerment (ABLE), Atlanta, GAAustin Voices for Education and Youth, TXBadAss Teachers Association (BATs)Baltimore Algebra ProjectBaltimore Teachers UnionBoston Area Youth Organizing ProjectBYOP/Community Labor United, Boston, MABrighton Park Neighborhood Council, Chicago, ILBoston Education Justice AllianceCalifornians for JusticeCamden Parent Union, NJCamden Student Union, NJCapital Region Organizing Project (CROP), Sacramento, CACenter for Popular Democracy (CPD)Change the Stakes, NYCChicago Teachers UnionChicago PEACECincinnati Federation of TeachersCitizen Action of New YorkCitizens for Better Schools & Sustainable Communities, Birmingham, ALCitizens for Education AwarenessCoalition of Black Trade UnionistsCoalition for Community Schools, New Orleans, LACoalition for Effective Newark Public Schools, NJColeman Advocates for Children & Youth, San Francisco, CACommunity Coalition, CACommunity Voices for Public Education, Houston, TXCommunities UnitedConcerned Citizen’s CoalitionConcerned Citizens of New Orleans, LACongregations United to Serve Humanity (CUSH), Kenosha, WIDetroit LIFE Coalition, MIDRUM, NYCEducation AustinEmpower DCEmpower DC Youth Organizing ProjectEmpower Hampton Roads, Norfolk, VAEquality, Solidarity, Truth, Hope, Empowerment, Reform (ESTHER), Neenah, WIThe Ezekiel Project, Saginaw, MIFairTest (National Center for Fair & Open Testing)Faith Action for Community Equity (FACE), Oahu/Maui, HIFaith Coalition for the Common Good, Springfield, ILFannie Lou Hamer Center for Change, MIFlorida Institute for Reform and Empowerment (FIRE)482Forward, Detroit, MIFuture of Tomorrow, Cypress Hills Local Development Corp, Brooklyn, NYGamalielGamaliel of Metro Chicago, Chicago, ILGenesis, Alameda County, CAThe Grassroots Collaborative, Chicago, ILGrassroots Education Movement, Chicago, ILGreat Public Schools (GPS) Pittsburgh, PAHouston Federation of Teachers, Local 2415, TXIndiana Organizing Project, South Bend, INInnerCity Struggle, LAInterfaith Strategy for Advocacy and Action in the Community (ISAAC), Kalamazoo, MIJoining Our Neighbors, Advancing Hope (JONAH), Eau Claire, WIJoint-Religious Organizing Network for Action and Hope (JONAH), Battle Creek, MIJustice Organization Sharing Hope and United for Action (JOSHUA), Green Bay, WIJustice Overcoming Boundaries (JOB), San Diego, CAKansas Justice AdvocatesKeep the Vote/No Takeover Coalition, DetroitKenwood Oakland Community Organization (KOCO), Chicago, ILLabor Council for Latin American Advancement, AFL-CIO (LCLAA)Long Island Organizing Network (LION), Riverhead, NYMake the Road, New York, NYMaryland Communities UnitedMassachusetts Jobs with JusticeMedia Mobilizing Project, Philadelphia, PAMetro Organization for Racial and Economic Equity (MORE2), Kansas City, MO/KSMetropolitan Congregations United (MCU), St. Louis, MOMetropolitan Organizing Strategy for Enabling Strength (MOSES), Detroit, MIMilwaukee Inner-city Congregations Allied for Hope (MICAH), Milwaukee, WIMinnesota Neighborhoods Organizing for Change (MN NOC)Missourians Organizing for Reform and Empowerment (MORE)More than A Score, Chicago, ILMOSES, Chicago, ILMOSES, Madison, WINAACP, ArkansasNAACP OregonNAACP Washington StateNAOMI, Wausau, WINC Heat/ Youth Organizing Institute, Durham/RaleighNehemiah, Petersburg, VANeighborhood Networks, Philadelphia, PANetwork for Public EducationNewark Student Union, NJNew Jersey Communities United (NJCU)The New York A. Phillip Randolph InstituteNew York City Coalition for Educational Justice (CEJ)New York City Opt OutNew York Communities for Change (NYCC)New York State United Teachers (NYSUT)Niagara Organizing Alliance for Hope (NOAH), Niagara Falls, NYNOLA Village, LANorth Bay Organizing Project (NBOP), Sonoma County, CANorthside Action For Justice, Chicago, ILOrganizers in the Land of Enchantment (OLE), NMOrganize Now, FLOur Community, Our Schools, Dallas, TXPadres Y Jovenes Unidos, Denver, COParents Across AmericaParents Across America, Roanoke Valley, VAParents for Public Schools of Greater Cincinnati, OHParents 4 Teachers,Chicago, ILParents on the MoveParents Unified for Local School Education (PULSE),Newark, NJPartnership for Renewal in Southern and Central Maryland (PRISCM),Prince George’s County, MDPaterson Education Fund, NJPatterson Education Organizing Committee, NJPennsylvania Interfaith Impact Network (PIIN), Pittsburgh, PAPIIN-Northwest, Erie, PAPilsen Alliance, Chicago, ILPhiladelphia Coalition Advocating for Public Schools (PCAPS), PAThe Philadelphia Council AFL-CIOPhiladelphia Federation of Teachers, PAPhiladelphia MoveOn.org, PAPhiladelphia Student Union, PAPittsburgh Federation of Teachers, PAPower U, Miami, FLPride at WorkProject SouthQuad Cities Interfaith (QCI), Davenport, IARacine Interfaith Coalition (RIC), Racine, WIRaise Your Voice, Chicago, ILRise Up GeorgiaRochester ACTS, Rochester, NYSave Our SchoolsSave Our Schools NJSchools and Communities UnitedSchott Foundation for Public EducationSEEK, COSistas & Brothas United, New York, NYStay Together Appalachian YouthSunflower Action, Wichita, KSSupport Our Students, Birmingham, ALStewards of Prophetic, Hopeful, Intentional, Action (SOPHIA), Waukesha, WITeachers for Social Justice, Chicago, ILTeaching for ChangeTexas Organizing Project (TOP), TXUnited Congregations Metro East (UCM), E. St. Louis, ILUnited Opt Out of NJUnited Federation of Teachers, NYCUnited Teachers of Los Angeles, CAUrban Youth Collaborative, NYVAYLA, New Orleans, LAVOICE, Buffalo, NYVoices for Education, AZWisconsin Jobs NowWISDOM (Gamaliel statewide), WIYinzercation, Pittsburgh, PAYouth Empowered in the StruggleYouth Justice Coalition, LAYouth On The Move, Bronx, NYYouth Together, Oakland, CAYouth United for Change, Philadelphia, PA
Source: Washington Post
The Fed's lack of diversity is hurting its judgment
The Fed's lack of diversity is hurting its judgment
Federal Reserve Chair Janet Yellen found herself in the hot seat at the recent bi-annual Humphrey Hawkins testimony as...
Federal Reserve Chair Janet Yellen found herself in the hot seat at the recent bi-annual Humphrey Hawkins testimony as members of Congress challenged her over the lack of diversity among the Fed's ranks.
Asked by Senator Elizabeth Warren whether she was concerned that 10 of the 12 Fed's regional presidents are men, Yellen answered that she did believe it was "important to have a diverse group of policymakers who can bring different perspectives to bear."
The nation's central bank has recently come under intense scrutiny for appointing predominantly white men from the banking and corporate sectors to leadership positions. Last month, 127 members of Congress sent a widely publicized letter to Yellen calling for her to commit to leadership that better reflects the diversity of the United States.
For the last two years, the Fed Up coalition – comprised of community organizations and labor groups in each of the 12 Federal Reserve districts – has sat down with Yellen and other Fed policymakers to ask that more diverse candidates are considered for directorships at the Federal Reserve Banks, and that the process for selecting Federal Reserve Bank presidents be opened up to greater transparency and public input.
The call for a Fed membership that reflects America's diversity was enshrined in a law passed by Congress 40 years ago, an important thing to keep in mind when considering the modest recent progress touted by Yellen. The law requires the Federal Reserve 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."
While we are encouraged that Yellen became the first woman ever to hold the position of Fed Chair in 2014, the reality of the Federal Reserve is far from representative of the public. Currently, 11 of the 12 regional Reserve Bank presidents are white and 10 of the 12 are men. Not a single Reserve Bank president is Black or Latino, which means there is no representation from the communities hardest hit by the 2008 financial crisis. In fact, there has never been an African American president of a Reserve Bank in the history of the Federal Reserve System.
Moreover, all voting members of the Fed's powerful interest rate-setting Federal Open Market Committee (FOMC) are white.
This is a problem. The power for ensuring the country reaches full employment rests solely with people who do not share the lived experiences of those most affected by their policies. The voices of women, African-Americans, Latinos, and representatives of consumers and labor are being shut out of key discussions over our economic future.
The impact of the economic crisis was not experienced uniformly across different communities, with the vaunted recovery never reaching some segments. The unemployment rate for African-Americans currently stands at 9 percent, more than double the unemployment rate for white Americans of 4.3 percent. The Latino unemployment rate of 5.6 percent is also worse than what it is for white Americans.
In a marked shift from her stance a year ago, Yellen noted racial disparities in economic outcomes in her opening remarks to Congress and stressed the importance of monitoring "different groups in the labor market to see if what we perceived as broad-based labor market improvement is being widely shared."
"Elizabeth Warren told Janet Yellen that the current process for appointing regional bank presidents 'is broken.'"
Compare this with her testimony last year, when Yellen dismissed the impact full employment can have on reducing racial disparities in unemployment and wages, claiming the Fed's tools were limited.
Yellen separately acknowledged racial disparities and the need for greater diversity among Fed leadership, but stopped short of linking the two. We believe the two are inextricably linked – a Fed filled with white male bankers will never be able to fully relate to impoverished communities of color.
That is why we have offered Yellen a slate of 39 candidates from which she can appoint directors to sit on the boards of the regional Banks. Drawn from all 12 Fed regions, the candidates are racially diverse, gender balanced and come from a range of backgrounds in labor, academia, and community-based organizations.
Elizabeth Warren told Janet Yellen that the current process for appointing regional Bank presidents "is broken." Yellen can demonstrate her commitment to diversity by appointing any of these 39 candidates to open board director positions.
Warren and other members of Congress in both houses are standing with low-wage workers to shine a light on our nation's opaque but vitally important economic policymaking institution. It's time for the Fed to heed the call on behalf of the millions of Americans around the country who are still suffering from the devastating impact of the 2008 crisis. It's time for the Fed to truly represent the public.
By Dushaw Hockett
Source
Charter School Oversight Lacking, Report Says
Epoch Times - May 18, 2014, by Petr Svab - Due to poor oversight charter schools lost over $100 million to waste, fraud...
Epoch Times - May 18, 2014, by Petr Svab - Due to poor oversight charter schools lost over $100 million to waste, fraud, and abuse over the past 20 years, according to a report by two anti-charter non-profits.
The $100 million cited by the report is an aggregation of audit and prosecution results on local, state, and federal levels.
The Center for Popular Democracy, and Integrity in Education, are both relatively new organizations, formed in 2012 and 2014 respectively. Both have a track record of opposing charter schools.
Charter schools are publicly funded but privately run. They operate under “charters” issued for five years that require them to measure up to goals the schools set, including academic goals.
The federal Department of Education’s Office of the Inspector General (OIG) stated in 2010 that local agencies issuing the charters “often fail to provide adequate oversight needed to ensure that Federal funds are properly used and accounted for.”
There are three such agencies in New York State: State University of New York, Board of Regents, and the New York City Department of Education. None of them responded to an immediate request for comment.
Between January 2005 and September 2013 the OIG opened 62 charter school investigations, resulting in 40 indictments and 26 convictions of charter school officials.
New York did relatively well. The report cites only two cases of fraud or mismanagement. One dealt with the East New York Preparatory Charter School in Brooklyn. It was ordered to close in 2010 after revelations that the school’s founder named herself a superintendent and gave herself a $60,000 raise.
Another school mentioned was the Niagara Charter School in Buffalo, where the State Education Department found “pervasive appearance of financial mismanagement and less-than ethical behavior,” including spending on plane tickets, restaurant meals, and alcohol, and over $100,000 spent on no-bid consulting contracts.
With the charter school sector growing, the report argues that charter-issuing organizations often lack the resources to do proper oversight. Just last year, over 600 charter schools opened across the nation. There are an estimated 6,400 charter schools enrolling over 2.5 million students, according to the report.
Source
Fed Up Coalition Complains About Jackson Hole Room Cancellations
Fed Up Coalition Complains About Jackson Hole Room Cancellations
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson...
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson Hole, Wyo., has filed a complaint with the National Park Service, the Department of the Interior’s Inspector General’s Office and the Justice Department after the conference hotel canceled the group’s room reservations.
The Center for Popular Democracy’s Fed Up Coalition said in an Aug. 9 letter that it booked 13 rooms in May at the Jackson Lake Lodge for its members for the nights of Aug. 24, 25 and 26. Last month, the lodge informed the group that their reservations had been canceled because of a “computer glitch,” according to the letter.
But the lodge didn’t cancel the reservations for other guests who booked after Fed Up did, said the letter written by Ady Barkan, campaign director of Fed Up, a left-leaning group that has lobbied for more diversity among Fed officials and more openness about the selection of regional Fed bank presidents.
“It is very hard for me to interpret the Company’s actions as anything other than a specific targeting of the Fed Up coalition,” he wrote in the letter.
Mr. Barkan said the group booked rooms at other hotels farther away from the conference, which will make it difficult for activists to attend events.
The Jackson Hole conference draws central-bank officials and economists from around the world who gather near the Grand Tetons to discuss monetary policy.
Fed Up members have been attending the conference for the past two years to urge Fed officials to hold off on raising interest rates, arguing that higher borrowing costs will slow economic growth and hurt low-income households. The group’s members often hold events and rallies near Fed events, wearing their signature green T-shirts.
A spokesperson for the Jackson Lake Lodge didn’t return a call for comment. Kathy Kupper, a spokeswoman for the National Parks Service said the lodges are run by independent contractors who are responsible for their day-to-day operations.
Mr. Barkan said he was writing the letter “to file a formal complaint regarding improper and potentially illegal behavior,” by the company.
By David Harrison
Source
Witching Hour interview: Fighting economic injustice with attorney Shawn Sebastian
Witching Hour interview: Fighting economic injustice with attorney Shawn Sebastian
We have not fully recovered from the 2008 crash,” Sebastian told Little Village. “The hole we were put into, the hole...
We have not fully recovered from the 2008 crash,” Sebastian told Little Village. “The hole we were put into, the hole we were thrown into by the financial industry 10 years ago, we have not gotten out of yet. The wealth that was lost, no one has recovered from that. Everyone is poorer than they were, especially black families have had almost all of their wealth wiped out.
Read the full article here.
Activists Call for End to ‘Economic Racism’
The St. Louis American - March 12, 2014, by Rebecca Rivas - African-American residents are sick and tired of hearing...
The St. Louis American - March 12, 2014, by Rebecca Rivas - African-American residents are sick and tired of hearing about an economic recovery that does not apply to them, said Derek Laney, an organizer for Missourians Organizing for Reform and Empowerment.
In St. Louis, the unemployment rates for the black community remains triple the rate of white residents, 14.1 percent for blacks compared to 5.7 percent for whites, he said. However, some economists claim that the economy is rapidly approaching full employment.
“Is there only one set of the population that matters?” Laney said. “And if they are all right, we’re all right? That’s something we can’t accept.”
On Thursday, March 5, activists attempted to ask James Bullard, the president of the Federal Reserve Bank of St. Louis, those same questions. At noon, a coalition of community-based organizations, faith leaders, elected officials, labor unions and service organizations gathered in front of the St. Louis Fed in downtown St. Louis as a part of the national Fed Up Campaign (whatrecovery.org).
They pointed to a new report by the Center for Popular Democracy released this month that details the difficulties for African-American families to find living-wage employment. The report is titled, “Wall Street, Main Street, and Martin Luther King Jr. Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full-Employment Mandate.”
In response to the protest, a St. Louis Fed spokeswoman stated in an email to The St. Louis American: “We are aware of the protest at the St. Louis Fed and respect people’s right to protest peacefully.”
The coalition asked Bullard to prioritize full employment and rising wages for all communities. Laney said as the economy starts to recover, some are calling for the Fed to raise interest rates to prevent wages from rising – which would severely impact families still struggling to recover from the Great Recession. In mid-March, the St. Louis Fed and its leaders will meet to discuss policy. Laney said they hoped the action will help “shape those discussions.”
The report emphasizes that the Federal Reserve is responsible for keeping inflation stable, regulating the financial system and ensuring full employment.
“These mandates reflect the tension between the interests of Wall Street on the one hand and Main Street and Martin Luther King Jr. Boulevard on the other,” the report states. “As a general matter, corporate and finance executives want to limit wage growth – or, as they call it, ‘wage inflation’ – and to maximize their future profits from lending money.”
The report argues that in past decades, the Federal Reserve resolved this tension in favor of banks and corporations, intentionally limiting wage growth and keeping unemployment excessively high.
“The Fed’s policy choices over the past 35 years have led to increased inequality, stagnant or falling wages, and an American Dream that is inaccessible to tens of millions of families – particularly black families,” the report states.
Since the Ferguson movement began, many local and national leaders have emphasized the need to address the “structural racism” in the region.
“Economic racism cannot be delinked from racism by law enforcement and other governmental entities,” according to the coalition’s statement. “However, James Bullard has been silent on issues of economics and their impacts on communities of color in the region over the past seven months. Today, we are bringing these issues to his front door.”
Source
BERNANKE’S FORMER ADVISOR: “PEOPLE WOULD BE STUNNED TO KNOW THE EXTENT TO WHICH THE FED IS PRIVATELY OWNED”
BERNANKE’S FORMER ADVISOR: “PEOPLE WOULD BE STUNNED TO KNOW THE EXTENT TO WHICH THE FED IS PRIVATELY OWNED”
With every passing day, the Fed is slowly but surely losing the game. Only it is not just former (and in some cases...
With every passing day, the Fed is slowly but surely losing the game.
Only it is not just former (and in some cases current) Fed presidents admitting central banks are increasingly powerless to boost the global economy, even if they still have sway over capital markets. What is far more insidious to the Fed’s waning credibility is when former economists affiliated with the Fed start repeating mantras that until recently were only a prominent feature in the so-called fringe media.
This is precisely what happened today when former central bank staffer and Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012, joined with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public.
Levin is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts.
All of that is not surprising. What he said to justify his new found cause, however, is.
“A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.”
Why is that stunning? Because it has long been a bone of contention if only among the fringe media, that at its core the Fed is merely a private institution, beholden only to its de facto owners: not the people of the U.S. but to a small cabal of banks. Worse, the actual org chart of who owns what is not disclosed, even as the vast majority of the U.S. population remains deluded that the Fed is a publicly owned institution.
As the WSJ goes on to note, the former central bank staffer said he sees his ideas as designed to maintain the virtues the central bank already brings to the table. They aren’t targeted at changing how policy is conducted today. “What’s important here is that reform to the Federal Reserve can last for 100 years, not just the near term,” he said.
And this is coming from a former Fed employee and Ben Bernanke’s personal advisor! That in itself is a most striking development, because now that the insiders are finally speaking up, it will be a race among both current and prior Fed workers to reveal as much dirty laundry as possible ahead of what is increasingly being perceived by many as the Fed’s demise.
To be sure, Levin’s personal campaign for Fed transformation will not be easy, and as the WSJ writes, what is being sought by Mr. Levin and the activists is significant and would require congressional action. Ady Barkan, who leads the Fed Up campaign, said the Fed’s current structure “is an embarrassment to America” and Fed leaders haven’t been “willing or able” to make changes.
Specifically, Levin wants the 12 regional Fed banks to be brought fully into the government. He also wants the process of selecting new bank presidents—they are key regulators and contributors in setting interest-rate policy—opened up more fully to public input, as well as term limits for Fed officials.
This would represent a revolution to the internal staffing of the Fed, which will no longer be at the mercy of its now-defunct shareholders, America’s commercial banks; it would also mean that Goldman Sachs would lose all its leverage as the world’s biggest central bank incubator, a revolving door relationship which has allowed the Manhattan firm to dominate the world of finance for the decades.
Levin’s proposal was made in conjunction with the Center for Popular Democracy’s Fed Up coalition, a group that has been pressuring the central bank for more accountability for some time. The left-leaning group has been critical of the structure of the regional banks, and has been pressing the Fed to hold off on raising rates in a bid to make sure the recovery is enjoyed not just by the wealthy, in their view.
The proposal was revealed on a conference call that also included a representative from Bernie Sanders’s presidential campaign, although all campaigns were invited to participate.
The WSJ adds that according to Levin, who knows the Fed’s operating structure intimately, says the members of the regional Fed bank boards of directors, the majority of whom are selected by the private banks with the approval of the Washington-based governors, should be chosen differently. The professor says director slots now reserved for financial professionals regulated by the Fed should be eliminated, and that directors who oversee and advise the regional banks should be selected in a public process involving the Washington governors and local elected officials. These directors also should better represent the diversity of the U.S.
Levin also wants formal public input into the selection of new bank presidents, with candidates’ names known publicly and a process that allows for public comment in a way that doesn’t now exist. The professor also wants all Fed officials to serve for single seven-year terms, which would give them the needed distance from the political process while eliminating situations where some policy makers stay at the bank for decades. Alan Greenspan, for example, was Fed chairman from 1987 to 2006.
As the WSJ conveniently adds, the selection of regional bank presidents has become a hot-button issue. Currently, the leaders of the New York, Philadelphia, Dallas and Minneapolis Fed banks are helmed by men who formerly worked for or had close connections to investment bank Goldman Sachs.
Levin called for watchdog agency the Government Accountability Office to annually review and report on Fed operations, including the regional Fed banks. He also wants the regional Fed banks to be covered under the Freedom of Information Act. A regular annual review hopefully would insulate the effort from perceptions of political interference, Mr. Levin said.
* * *
While ending the Fed may still seem like a pipe dream, at least until the market’s next major crash at which point the population may finally turn on the culprit behind America’s serial boom-bust culture, the U.S. central bank, Levin’s proposal would get to the heart of the most insidious conflict of interest in the US: the fact that the Federal Reserve works not for the people of America, but for its owners – the banks.
Which is also why, sadly, this proposal will be dead on arrival, as its passage would represent the biggest loss for Wall Street in the past 103 years, far more significant than anything Dodd-Frank could hope to accomplish.
By Zero Hedge
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Movement for paid sick leave gains ground
The New Crossroads - May 13, 2013, By Gregory N. Heires - Grassroots campaigns for local and state laws requiring...
The New Crossroads - May 13, 2013, By Gregory N. Heires - Grassroots campaigns for local and state laws requiring employers to provide their workers with paid sick days are gaining steam.
In the latest sign of the growing movement, the New York City Council approved legislation that would make 1 million workers eligible for paid sick days.
The passage of the bill capped a three-year fight for the legislation by unions and health-care advocates.
But the legislation faces a possible veto by billionaire Mayor Michael Bloomberg, who has said he would not sign the bill into law. However, the City Council approved the legislation by a veto-proof margin.
On the day of the vote, Kristin Rowe-Finkbeiner, executive director of MomsRising.org, an online and on-the-ground grassroots organization of more than a million people who are working to achieve economic security for all families in the United States, said, “It’s been a long fight, but today the New York City Council heeded the call of New York families and passed a bill that would allow more than a million New Yorkers to earn paid time off to use when they are sick or to take care of a sick child, spouse or parent.”
Rowe-Finkbeiner called upon Bloomberg to “stand up to corporate lobbyists, listen to the people who elected him and sign this important bill.”
The new paid sick leave bill, which the Council passed by a 45-3 vote, would go into effect in April 2014. Initially, the law would require businesses with 20 or more workers to provide five paid sick days to its employees.
In October 2015, it would be expanded to cover firms with 15 or more workers. Furthermore, the law would protect workers who are not entitled to paid sick leave from being fired if they take time off.
“This is a sweet victory,” Bill Lipton, state director of the Working Families Party, told The New York Times. “It provides economic security for New Yorkers, and a shot in the arm for the paid sick days movement across the country.”
The Working Families Party and MomsRising.org were part of a coalition that included the New York City Central Labor Council, the Center for Popular Democracy, the New York City Council’s Progressive Caucus, 32 BJ SEIU, Make the Road New York, A Better Balance and NY Paid Sick Leave Coalition.
New York City joins an increasing number of municipalities and states that are supporting sick pay legislation. San Francisco, Washington, D.C., and Milwaukee have adopted paid sick day laws. Pushes for similar legislation are underway in nearly 20 cities and states, including Denver, Miami, Seattle, Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Iowa, Maine, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Vermont, Washington and Wisconsin.
In March, Sen. Tom Harkin (D-Iowa) and Rep. Rosa DeLauro (D-Conn.) introduced the Health Families Act. The legislation would allow workers to earn paid sick leave that they could use for personal illnesses, caring for a sick family member, preventive care or treatment for domestic violence.
In the United States, 40 million people work in jobs that don’t offer paid sick leave. One million workers in New York City, primarily low-wage workers, don’t have paid sick days.
In addition to arguing that workers have the right to paid sick leave, supporters of the New York City bill argued that the policy simply makes common sense. Faced with the prospect of losing pay, workers without the right to paid time off often decide to go to work when they have contagious illnesses. Furthermore, workers are less productive when they are ill.
“It’s an incredible feeling to know that I won’t ever again have to choose between my child’s health and my job,” said Juana Sanchez, who has three children and is a member of Make the Road New York, a Brooklyn-based community organization that represents Latino and other low-income workers.
“I believe this law enshrines the principle that American exceptionalism is not just about large profits and small elites, but a workplace that is safe, fair and respectful of the lives of workers,” said City Council member Gale Brewer, who first introduced the bill in 2009.
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Expandiendo el Electorado en Nueva York
El Diario - December 14, 2014, by Steve Carbo - Aunque las oportunidades para avanzar reformas progresistas se han...
El Diario - December 14, 2014, by Steve Carbo - Aunque las oportunidades para avanzar reformas progresistas se han disminuido en Washington y en muchos estados después de las elecciones de noviembre, existe aún terreno fértil en las ciudades, lugares que reciben menos atención de los medios pero son cada vez más reconocidas como importantes "laboratorios de la democracia".
La ciudad de Nueva York es notable por su liderazgo. Después de tomar las riendas en enero, el Alcalde Bill de Blasio, la Presidenta del Concejo Melissa Mark-Viverito, junto con concejales progresistas, han expandido las leyes de días de enfermedad pagados, han implementado políticas policiales más justas, y han puesto fin a las detenciones injustas de inmigrantes. Y esta semana, el alcalde Bill de Blasio firmó una nueva legislación que que marca el comienzo de una gran expansión del electorado a través de la revitalización de la ley Pro-Voter (Pro-Votante) . Este es un modelo que otras ciudades deberían seguir.
La ley Pro-Votante, que fue inicialmente firmada en el año 2000, prometía expandir las oportunidades para el registro de votantes en la ciudad. La ley exigía que diecinueve agencias municipales, cada una de las cincuenta y nueve juntas comunitarias, y muchas agencias que reciben contratos del gobierno municipal, debían ofrecer formularios de inscripción de votantes, y asistencia completando los formularios, para residentes de la ciudad que estuvieran aplicando para recibir servicios de las agencias, re- certificando su exigibilidad, o reportando un cambio de dirección. Estos programas de registro de votantes en agencias públicas están basados en la Ley Nacional de Registro de Votantes, la cual requiere en parte que las agencias estatales de asistencia pública ofrezcan formularios de registro electoral a sus clientes.
Al ser administrados bien, estos programas tienen la capacidad de registrar del 15 al 20 por ciento de los clientes de la agencia. Un programa local similar en la ciudad de Nueva York podría ayudar a cientos de miles a qué se registren para votar.
Lamentablemente, las cosas aún no se han dado así. En octubre, el Centro para la Democracia Popular, y sus aliados en la coalición Pro-Votante, reportaron en un estudio que las agencias municipales de la ciudad de Nueva York estaban ignorando la ley. El ochenta y cuatro por ciento de los clientes entrevistados para el estudio eran elegibles pero nunca recibieron formularios de registro electoral.
Pero las elecciones son importantes y el cambio está en camino. En su primera Directiva Ejecutiva el verano pasado, el Alcalde De Blasio ordenó a cada una de las agencias contempladas en la ley Pro-Votante que desarrollarán planes para conformarse a la ley, y que reportaran su desempeño en la implementación de estos planes cada seis meses. Nuestra coalición fue invitada a ayudar a desarrollar modelos de planes para las agencias. Inmediatamente el Concejo de la Ciudad tuvo su primera audiencia pública acerca del tema, y el 25 de noviembre aprobó una nueva legislación presentada por los concejales Ben Kallos y Jumanee Williams, la cual fortalece las provisiones de la ley Pro-Votante. Con estas nuevas mejoras y algunos cambios adicionales, como la inclusión de agencias con un alto número de clientes como la agencia de viviendas públicas (NYCHA) y el departamento de educación, y el reemplazo de formulario de papel con formularios electrónicos, la ley Pro-Votante de la cuidad de Nueva York representa un gran modelo nacional que otras ciudades pueden replicar. El gobierno puede y deber jugar un papel líder en asegurarse que cada individuo que es elegible para votar sea agregado a las listas de votantes.
Pero las ciudades no deben para ahí. Con suficiente autoridad y autonomía, las ciudades pueden expandir la democracia permitiendo medidas como el registro de votantes el mismo día de la elecciones, el voto temprano, y la extensión del derecho al voto a los no-ciudadanos y personas que han pasado por el sistema judicial, el registro de estudiantes de secundario, y el pre-registro de jóvenes de 16 y 17 años de edad. Estas son algunas de las medidas promulgadas por la coalición de oficiales electos progresistas, Local Progress, que se han unido por su compromiso a avanzar una economía justa, igualdad para todos, ciudades habitables y gobiernos efectivos.
Los años que vienen van a ser difíciles para las personas que luchan por la justicia social. Pero aún mientras luchamos en contra de la agenda de la agenda regresiva de la derecha, los progresistas debemos buscar oportunidades para avanzar políticas públicas. Y como lao demuestra la nueva ley Pro-Votante, las ciudades representan un gran espacio de oportunidad.
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4 days ago
4 days ago