Im Hinterhof eines Mythos
Silicon Valley - Sitz von Google, Facebook und Co.: If you can make it there, you'll make it anywhere. Was aber, wenn...
Silicon Valley - Sitz von Google, Facebook und Co.: If you can make it there, you'll make it anywhere. Was aber, wenn man es nicht schafft? Oder wenn man kein Hightech-Jünger ist, sondern einfach nur Busfahrer? Das Silicon Valley ist das krasseste Exempel der immer weiter auseinander driftenden US-Gesellschaft.
Das Silicon Valley ist die Pilgerstätte der Hightech-Jünger, ein Magnet für Talente aus aller Welt. Eingeklemmt zwischen Pazifik und San Francisco Bay, liegt die Heimat von Apple, Intel, Google, von Hewlett-Packard, Oracle, Facebook und etlichen weiteren Technologiefirmen - und von knapp drei Millionen Menschen. Während die Hard- und Softwarefirmen Spitzengehälter zahlen, fallen die Einkommen der weniger noblen Jobs.
Wer als Lehrer, Verkäufer, Busfahrer oder Maurer arbeitet, kann sich ein Leben im superteuren Silicon Valley kaum mehr leisten, die Zahl der "working poor" wächst - also derjenigen, die trotz Job in Armut leben. Auch die Zahl der Obdachlosen nimmt zu. Der soziale Abstieg kommt mitunter rasant: Eine Trennung, eine Firmenpleite oder ein Unfall können auch einen Aktienmillionär über Nacht zum Sozialfall machen. In den Hinterhöfen des Valley finden sich immer mehr Asyle und Ausgabestellen für Essen und Kleidung. Die Schlangen sind lang für die, die im Schatten des amerikanischen Traums leben.
Das Silicon Valley
"Silicon Valley" ist nur ein Spitzname. Weil Silicon – Silizium – der Grundstoff der Computerchips ist, die hier erfunden wurden. Computerchips, die längst auch in Smartphones, Autos, Spielzeug und Küchenmaschinen stecken. Das Silizium-Tal liegt zwischen San Francisco und San Jose auf einer Halbinsel, die im Westen vom Pazifik und den Santa Cruz Mountains begrenzt wird, im Osten von der San Francisco Bay und, dahinter, dem Höhenzug Diablo Range.
Source: Bayern
Two Reports Detail Wide Discrimination Against Transgender Americans
Windy City Media Group - February 18, 2015, by Gretchen Rachel Hammond - When the Supreme Court of the United States...
Windy City Media Group - February 18, 2015, by Gretchen Rachel Hammond - When the Supreme Court of the United States rules on the issue of same-sex marriage later this year, many of the advocacy organizations and groups nationwide that have fought for a resolution to the issue are hopeful that LGBTQ equality will take a giant leap forward. However two reports released February 18 by the Denver-based LGBT think tank The Movement Advancement Project (MAP) starkly demonstrate that the transgender community remains snared in disproportionate inequity, discrimination and oppression in almost all areas of American life—employment, housing, K-12 and higher education, healthcare, pensions, the criminal justice system, immigration, obtaining credit, loans, financial aid or identification documents and even marriage.
The ramifications to the community in terms of poverty, societal attitudes and manifestations of violence against transgender individuals have been bluntly illustrated with the deaths of eight transgender women across the United States in the first seven weeks of 2015.
The data, stories and issues raised in the reports entitled Understanding Issues Facing Transgender Americans and Paying and Unfair Price: the Penalty for Being Transgender in America were assembled and co-authored by MAP alongside the Center for American Progress, the National Center for Transgender Equality (NCTE), and the Transgender Law Center, in partnership with Center for Community Change, Center for Popular Democracy, GLAAD, National Association of Social Workers, and the National Education Association.
Understanding Issues Facing Transgender Americans details each sphere of society in which transgender Americans face daily discrimination and offers brief recommendations on a local, state and federal level. The figures are sobering.
The report states that one-in-five transgender people have been refused a home or an apartment with laws protecting them on the books in only 18 states and D.C. In schools, 40 percent of gender non-conforming youth have reported some level of harassment with only 13 states offering laws against discrimination because of their gender identity. An astonishing 78 percent of transgender individuals reported being "mistreated or discriminated against at work" while up to 47 percent noted being unfairly denied a job at all. In terms of income, the report cited National Transgender Discrimination Survey (NTDS) figures which stated transgender Americans are "four times more likely to have a household income under $10,000 per year than the population as a whole."
Within the criminal justice system, the report notes that one-in-six transgender people will have been incarcerated at some point in their lives. For Black transgender individuals that figure stands at 47 percent. "Reports from the Bureau of Justice Statistics find that 35 percent of transgender prisoners report experiencing sexual abuse in the last twelve months, compared to 4 percent of all prisoners," the document states while indicating that the disproportionate numbers of low-income transgender people has led to a far greater frequency of police interactions and "higher levels police harassment, imprisonment and violence."
Unfair Price: the Penalty for Being Transgender in America examines that poverty in greater detail. The report lists what it calls two "primary failures of law' as the reason "transgender people in the United States face clear financial penalties and are left economically vulnerable"—pervasive discrimination and a lack of clear legal protections along with hostile educational environments.
The results are denial of employment or harassment while on the job, lower wages, denial of housing and even difficulty accessing homeless shelters, inordinate healthcare costs due to discrimination by insurance companies and healthcare providers and increased difficulty obtaining credit such as a credit card or student loan.
MAP Policy Specialist and Policy Researcher Naomi Goldberg was the lead author on that report while LGBT Movement and Policy Analyst Heron Greenesmith piloted the creation of Understanding Issues Facing Transgender Americans.
Goldberg told Windy City Times that both reports received their genesis from earlier and exhaustive research released by MAP detailing issues facing the LGBT community as a whole. "Beginning last year, we starting releasing issue-specific guides," she said. "Heron released one about the disparities that bisexual face in this country. Often both they and the transgender community are ignored when talking about LGBT people. So this guide about transgender [individuals] is meant to be used as an entry point for people to understand the key areas in which transgender people face challenges."
Goldberg hopes that the reports will be used in multiple areas and across a spectrum of audiences including the media, policy makers and advocacy groups. "It's meant to be another articulation of why protections are needed," she said. "As we see the transgender community gain visibility, a lot of people are coming to understand what it means to be transgender in a new way and I think this guide can be an easily accessible tool for people to talk about the real challenges transgender people face. There's a real opportunity here to articulate the concerns and the needs of the transgender community that is accessible and demystifying."
As a cisgender woman, Goldberg acknowledged that as she began to piece the report together she was surprised at the sheer breadth of discrimination against the transgender community. "It was the ways in which discrimination affects all aspects of life," she said. "In my opinion this is where the work really needs to be focused. We need to understand how to talk about the issues that transgender community face, how to provide recommendations to advance them in the policy sphere and also look at movement capacity—organizations that are doing the work and how to support [them]."
However Goldberg stressed that lack of data concerning the transgender community remains a huge obstacle in creating policy change. "We can probably say that the 2020 census will not be including questions of gender identity and expression," she stated. "There's going to be another fielding of the Transgender Discrimination Survey which uncovered and provided all of us with statistics to pair with people sharing their own stories. Gathering the data is going to be the long game but that is the path forward."
"It's not enough to say 'we're done' when we pass laws," Goldberg added. "This is something the LGBT movement post marriage-equality is going to have to address.
Source
Why Is My Bank Teller Trying to Sell Me a Credit Card I Don't Want?
Mother Jones - April 9, 2015, by Josh Harkinson - Until recently, your typical banker was someone whose main job was to...
Mother Jones - April 9, 2015, by Josh Harkinson - Until recently, your typical banker was someone whose main job was to accept deposits, cash checks, and dispense basic financial advice. But now that job hardly exists anymore—at least not as we once knew it. Today's front-line bank workers—tellers, loan interviewers, and customer-service reps—earn far too little money to be considered "bankers" in the traditional sense of the word. And though they still collect and dispense money, their main job involves hawking credit cards and loans you probably don't need.
Many rank and file bank workers are seeing lower wages and more pressure to hawk financial products.Rank-and-file bank workers are both causes and symptoms of America's widening economic divide, says Aditi Sen, the author of Big Banks and the Dismantling of the Middle Class, a report released today by the Center for Popular Democracy. Based on union organizer interviews with hundreds of workers in the industry, Sen found that front-line bank workers often face quotas for hawking potentially exploitive financial products, often to low-income customers, even though the workers themselves barely qualify as middle class. "We can definitely see bank workers as part of the same continuum of issues facing all low-wage workers," she says.
Banks are, of course, notorious for squeezing profits from their employees and customers. In 2011, the Federal Reserve Board fined Wells Fargo $85 million for forcing workers to sell expensive subprime mortgages to prime borrowers. And in late 2013, a judge slapped Bank of America with a $1.27 billion penalty for its "Hustle Program," which rewarded employees for producing more loans and eliminating controls on the loans' quality.
Yet, by some accounts, these sorts of practices are getting worse. In a 2013 study by the union-backed Committee for Better Banks, 35 percent of low-level bank workers surveyed reported increased sales pressure since 2008, and nearly 38 percent stated that there was no real avenue in the workplace to oppose such practices. One HSBC bank employee, according to the study, reported that workers who failed to meet their sales goals had the difference taken out of their paychecks.
The increasing sales pressure comes at a time when the fortunes of the banks and their low-level workers have diverged widely. Bank profits and CEO pay have rebounded to near record levels while wages for front-line workers are stuck in the gutter.
And that's not all. Nearly a quarter of bank workers surveyed in 2013 reported that their benefits had been cut since 2008, and 44 percent reported that their medical and life insurance was inadequate. A recent University of California-Berkeley study found that 31 percent of bank tellers' families rely on public assistance at an annual cost of $900 million to taxpayers.
There are several factors in all of these woes. Mergers and consolidation have led some retail banks to shutter branches and lay people off. Many banks have outsourced customer-service jobs to overseas call centers, and the rise of internet and smartphone banking has further slashed demand for flesh-and-blood tellers. In other words, it's basically the same mix of foreign and technological competition that has concentrated wealth and depressed middle-class wages throughout the economy. And it means that banks can get away with paying people less, and demanding more in return.
But now the Committee for Better Banks is trying to cultivate common cause between low-level bank workers and the customers they're forced to target. The interviews featured in the new report show that many bank workers strongly oppose the sales quotas as unfair and exploitive. For instance:
A teller at a top-five bank reports that she is subject to stringent individual goals on a daily basis: If she does not make three sales-points (selling someone a new checking, savings, or debit card account) each day in a month, she gets written up.
Customer service representatives at a call center for another major bank report that each individual has to make 40 percent of the sales of the top seller to avoid being written up. Selling credit cards counts more towards sales goals than helping someone open up a checking account or savings account, thereby crafting skewed incentives based on the profitability of a product sold, not on how well it matched the needs of a customer.
"There was one guy who had three credit cards and I ended up pushing a fourth on him, even though I knew that was not good for him.""A lot of time people would call and already have one, two, or three credit cards with us," says Liz, a member of the Committee for Better Banks who worked in a Bank of America call center for five years and did not want to give her last name. "They might have a situation where they are low on funds and we end up pushing another credit card on them. There was one guy who had three credit cards and I ended up pushing a fourth on him, even though I knew that was not good for him; he would just be in more debt. But if didn't, I would end up being put in a reprimand."
On Monday, members of the Committee for Better Banks will converge in Minnesota's Twin Cities to deliver a petition to bank offices demanding better pay and more stable work hours for rank-and-file workers, and an end to sales goals that "push unnecessary products on our customers."
Source
City Council group urges JP Morgan Chase to ditch Trump council
City Council group urges JP Morgan Chase to ditch Trump council
As CEOs flee President Trump’s business advisory councils, the City Council’s Progressive Caucus is calling on JP...
As CEOs flee President Trump’s business advisory councils, the City Council’s Progressive Caucus is calling on JP Morgan Chase to do the same.
The move comes as multiple CEOs have ditched a Trump council on manufacturing business in the wake of a white supremacist rally in Charlottesville, Va., Saturday. Trump did not condemn white supremacists until Monday; on Tuesday he again insisted violence had come from “both sides.” Merck CEO Ken Frazier was first to depart, calling it a “matter of personal conscience” to stand against intolerance.
Read the full article here.
In replacing Dudley, NY Fed aims to avoid political pitfalls
In replacing Dudley, NY Fed aims to avoid political pitfalls
Unions and groups advocating for retirees, teachers, housing, and workers' benefits are among those visiting the ornate...
Unions and groups advocating for retirees, teachers, housing, and workers' benefits are among those visiting the ornate conference rooms of the Federal Reserve Bank of New York to lobby for a less conventional candidate to serve as its next president.
New York Fed directors leading the search for a successor to chief William Dudley, seen as the second most influential policymaker at the U.S. central bank, invited the guests to last week's meeting to seek their advice. According to attendees and others familiar with the search, the directors are close to a "long list" of candidates and appear set to begin formal interviews within weeks.
Read the full article here.
Immigrants in US illegally see this election as crucial - See more at: http://www.timescolonist.com/immigrants-in-us-illegally-see-this-election-as-crucial-1.2472426#sthash.BroJZxQz.dpuf
Immigrants in US illegally see this election as crucial - See more at: http://www.timescolonist.com/immigrants-in-us-illegally-see-this-election-as-crucial-1.2472426#sthash.BroJZxQz.dpuf
NEW YORK, N.Y. - There was never any doubt Juana Alvarez's 18- and 20-year-old American-born daughters would be taking...
NEW YORK, N.Y. - There was never any doubt Juana Alvarez's 18- and 20-year-old American-born daughters would be taking part in the election this year. Alvarez did her best to see to that.
"I had two people I wanted to get registered and I registered them," Alvarez, a 39-year-old housekeeper in Brooklyn who came to the U.S. from Mexico as a teenager, said through a translator.
For Alvarez and the estimated 11 million other immigrants living illegally in the U.S., this is a potentially crucial election, with Republican Donald Trump talking about mass deportations and a border wall and Democrat Hillary Clinton pledging to support immigration reform and protect President Barack Obama's executive actions on behalf of immigrants.
Come Election Day, these immigrants will be watching from the sidelines, their future in the hands of others. Under the U.S. Constitution, only full citizens can vote; legal immigrants who are green card holders also are not allowed to cast a ballot.
Trump has spoken of fears of election fraud or that immigrants living illegally in the country might vote. More broadly, he has said all immigrants should play by the legal rules.
Alvarez and others like her say although they can't vote, they have been taking part in get-out-the-vote efforts among citizens.
In places like New York, California, Arizona and Virginia, they have been knocking on doors and making telephone calls, registering people, urging them to go to the polls, and telling their stories in hopes of persuading voters to keep the interests of immigrants in mind when they go into the booth.
"For me, it's important that those who can vote come out of the shadows and make their voices heard," Alvarez said.
Isabel Medina, a 43-year-old from Los Angeles who has been in the country illegally for 20 years and has three sons, two born in the U.S., has worked phone banks and taken part in voter registration drives for U.S. citizens, making sure that "even though they're frustrated, they are disappointed, they still realize it is really important, that they know the power that they have in their hands."
She says she emphasized the need to vote for all the races, not just the presidency, and the importance of taking part in referendums and propositions.
Even though these immigrants can't vote, their pre-Election Day efforts make a difference, said Karina Ruiz, 32, of Phoenix, who came to the U.S. illegally from Mexico when she was 15 and is acting executive director of the Arizona Dream Act Coalition, an immigrant-advocacy group that has been doing get-out-the-vote work.
"It is making an impact because those people who wouldn't vote otherwise, when they listen to my story and hear their vote does count and make a difference, they're encouraged to participate and be my voice," said Ruiz, who has a work permit and an exemption from deportation under Obama's Deferred Action for Childhood Arrivals policy. That policy was created by executive order, one that could be undone by any president in the future.
"I think to myself: I could just vote once, if I had the power to," she said. But "if I can influence 50 to 60 people to go ahead and vote, that's my voice multiplied by a whole lot."
As for what will happen after Election Day, "the uncertainty, it is there, I don't know what's going to happen," said Medina, who avoids talking about the election with her U.S.-born sons because she doesn't want them to get scared that their parents might be deported. "I am worried, yes."
By Deepti Hajela
Source
Will last-minute work soon be history?
When Russell Miller worked at Abercrombie, one of his days each week had to be an on-call day. He wouldn’t know if he’...
When Russell Miller worked at Abercrombie, one of his days each week had to be an on-call day. He wouldn’t know if he’d have to show up to work until an hour in advance.
“You had to block out that time period as if you were working,” he says. One store he worked at was 45 minutes from his house. “We had to be ready to be there on time. With all the regulations about what we wear, how we look and how we present ourselves, I had to get fully ready for my shift and ready to walk out the door at the time I made the phone call to find out if they were even going to need me or not.”
For Miller, this was more than an inconvenience.
“Having a second job wouldn’t work at a time when I was scheduled for an on-call shift. If they scheduled me for an on-call shift and they didn’t call me, that was real money lost and real time opportunity lost.”
On-call scheduling “means you have to put your life on hold,” says Rachel Laforest, director of the Retail Action Project, a division of the Retail Wholesale and Department Stores Union. “It becomes very difficult to lead full lives, so for example, if I’m a parent and I have to figure out arranging for child care, it’s impossible for me to do that” with such short notice, she says.
There isn’t good national data on the prevalence of on-call scheduling, but regional surveys suggest it’s widespread and not limited to retail, says Stephanie Luce, professor of labor studies at CUNY. “We see it in fast food, airlines, beauty services, domestic services, child care services," she says. "Smaller studies seem to suggest this practice really picked up after the recession, however, over the past couple of years, there’s been a real push back.”
After New York’s attorney general suggested Abercrombie and 12 other companies were potentially violating New York law through the practice, Abercrombie announced it would work to discontinue the practice.
The company responded on August fifth “...we understand – and share – the attorney general’s concerns about call-in shift scheduling. The attorney general’s letter helped focus our ongoing internal discussions about how to create a stable and predictable work environment as possible for our employees.”
Gap Inc. told Marketplace: “Each of our brands have made a commitment to evaluate their practices and determine where we may be able to improve scheduling stability for our employees, while continuing to drive productivity in stores.”
Gap also says it’s working on a pilot project with University of California, Hastings College of the Law “to examine workplace scheduling and productivity. Led by recognized expert professor Joan Williams, the goal of the Gap Hourly Scheduling Initiative is to use research and data to create solutions that will be sustainable and can be implemented across our company’s entire footprint and fleet."
Under pressure from a lawsuit, Victoria’s Secret discontinued on-call scheduling earlier this year.
To the extent firms are reconsidering the practice, the reasons are both technological and monetary.
On-call scheduling resulted from pressure to restrict the ratio of hours to sales and an attempt to more nimbly adapt to changes in demand, says University of Chicago associate professor Susan Lambert. It also results in companies “overhiring,” using many part time workers instead of fewer full time workers. But Lambert says “the costs of managing this way do not enter the balance sheets of firms.” Employees who work irregularly, for example, may not always be up to speed with the latest changes to the store or the layout, she says.
“From a very engineering standpoint,...[on-call scheduling] may look efficient but when you look on front lines of firms, you see all the opportunities costs there are in terms of people walking out because they can’t find something or can’t get help.”
Another factor is technology.
“New technologies give us now the ability to predict very well variations in demand,” Lambert says.
Companies don’t need to keep workers on hold; they can figure out pretty well whether they need to have someone show up to work far in advance of two hours before the shift starts, she says. Companies are so good at predicting demand that they tried to "overoptimize" down to the minute, keeping workers on call to cover even slight changes in demand.
“You don’t need to do that micro-management,” she says. “Retailers are learning that."
So it may be, she says, that workers and firms are finding on-call scheduling is a headache for everyone.
Here are the responses from the 13 companies the New York attorney general wrote warnings to:
Ann Inc.: "Staffing guidelines do not include the practice of on-call shifts."
Gap Inc.: "Each of our brands have made a commitment to evaluate their practices and determine where we may be able to improve scheduling stability for our employees, while continuing to drive productivity in stores. As part of our commitment to more sustainable scheduling practices, we are working on a pilot project with Gap Brand and UC Hastings College of Law to examine workplace scheduling and productivity."
J.C. Penney Co: "We do not utilize on-call scheduling, and JCPenney has always maintained a policy against the practice."
Sears Holdings Corp: "Sears Holdings does not use on-call scheduling for store associates. That said, we will fully cooperate with the New York Attorney General’s office’s requests."
Target Corp: "Target does not use on-call scheduling."
TJX Cos: "We don’t use on-call shifts at TJX and it hasn’t been our practice, i.e. nothing new since April."
Williams-Sonoma Inc: "We actually discontinued [on-call scheduling] for the entire country."
Burlington Stores Inc., Crocs Inc., J. Crew Group Inc. and Urban Outfitters Inc. did not return requests for comment.
Source: Marketplace
Another Study Finds Unaccountable Charter Schools Dogged by Corruption
Moyers & Company - October 6, 2014, by Joshua Holland - In today’s Washington Post, Jeff Bryant, director of the...
Moyers & Company - October 6, 2014, by Joshua Holland - In today’s Washington Post, Jeff Bryant, director of the Education Opportunity Network, writes about the promises that were first offered by advocates of the charter school industry:
When former President Bill Clinton recently meandered onto the topic of charter schools, he mentioned something about an “original bargain” that charters were, according to the reporter for The Huffington Post, “supposed to do a better job of educating students.”
A writer at Salon called the remark “stunning” because it brought to light the fact that the overwhelming majority of charter schools do no better than traditional public schools. Yet… charter schools are rarely shuttered for low academic performance….
In a real “bargaining process,” those who bear the consequences of the deal have some say-so on the terms, the deal-makers have to represent themselves honestly (or the deal is off and the negotiating ends), and there are measures in place to ensure everyone involved is held accountable after the deal has been struck.
But that’s not what’s happening in the great charter industry rollout transpiring across the country. Rather than a negotiation over terms, charters are being imposed on communities – either by legislative fiat or well-engineered public policy campaigns. Many charter school operators keep their practices hidden or have been found to be blatantly corrupt. And no one seems to be doing anything to ensure real accountability for these rapidly expanding school operations.
But in May, BillMoyers.com looked at a report issued by Integrity in Education and the Center for Popular Democracy — two groups that oppose school privatization. The study examined charter schools’ performance in 15 states, and revealed $136 million in fraud, waste and abuse in those states. The authors of that study wrote that, “where there is little oversight, and lots of public dollars available, there are incentives for ethically challenged charter operators to charge for services that were never provided.”
Last week, they released a follow-up study of charter schools in Pennsylvania. It found that “charter school officials have defrauded at least $30 million intended for Pennsylvania school children since 1997.”
Yet every year virtually all of the state’s charter schools are found to be financially sound. While the state has complex, multi-layered systems of oversight of the charter system, this history of financial fraud makes it clear that these systems are not effectively detecting or preventing fraud. Indeed, the vast majority of fraud was uncovered by whistleblowers and media exposés, not by the state’s oversight agencies.
The authors found that while the auditing techniques used by Pennsylvania regulators could identify inefficiencies, oversight agencies don’t use tools “specifically designed to uncover fraud.” It also found that oversight agencies were understaffed and underfunded. “With too few qualified people on staff, and too little training, agencies are unable to uncover clues that might lead to fuller investigations and the discovery of fraud,” write the report’s authors.
They also noted that their findings weren’t unique:
Numerous government entities have raised the flag about the risk of fraud nationally and in Pennsylvania. Reporting in 2010 on the lack of charter-school oversight in states throughout the country, the Office of the Inspector General for the U.S. Department of Education raised concerns that state-level education departments were failing “to provide adequate oversight needed to ensure that Federal funds [were] properly used and accounted for.” Also in 2010 in Philadelphia (which educates 50 percent of all Pennsylvania charter-school students), the Office of the Controller performed a “fraud vulnerability assessment” of the city’s oversight of charter schools and reported that the Charter School Office… made the city’s more than $290 million paid to charter schools “extremely vulnerable to fraud, waste, and abuse.” A 2014 follow-up report found that the School District of Philadelphia continues to provide “minimal oversight over charter schools except during the charter renewal process.”
You can download the entire report on Pennsylvania charter schools at The Center for Popular Democracy.
Lobbyists Know the Fed Has Political Power
Lobbyists Know the Fed Has Political Power
Your editorial is exactly right about the lack of impartiality with “The Federal Reserve’s Politicians” (Aug. 29)....
Your editorial is exactly right about the lack of impartiality with “The Federal Reserve’s Politicians” (Aug. 29). While created by Congress, the Fed continues to act as though it is completely unaccountable to the people’s representatives.
As I pointed out to Chairwoman Janet Yellen during a congressional hearing last year, her own calendar reflects weekly meetings with political figures and partisan special-interest groups. Even more troubling, there is a long history of Fed chairs or governors serving as partisan figures in the Treasury or the White House before their appointment. So while the Fed is quick to decry any attempts at congressional oversight, it cannot credibly claim to be politically independent.
We need a rules-based monetary policy that doesn’t leave the Fed with the potential to push an ideologically driven agenda. To make the Fed truly free from politics, the Fed Oversight Reform and Modernization Act of 2015, which my colleagues and I have passed through the House, should be signed into law. The American people deserve transparency at the Fed and market-driven monetary policy that can finally restore confidence in our economy.
Rep. Scott Garrett (R., N.J.)
Glen Rock, N.J.
Your editorial accuses Fed Up, a group representing low-income black and brown communities, of politicizing the Fed, when big banks have always had undue access and influence over the Fed’s policies.
In fact, commercial banks literally own the Federal Reserve. Unlike nearly every other central bank in the world, the Fed isn’t a public institution but instead operates as a joint venture with the banking sector. It is not true that as long as this status quo of Wall Street domination continues, then the Fed is “independent,” but when the Fed Up campaign’s low-income people of color dare to join the monetary-policy conversation, then the Fed’s “independence” has been compromised.
You mention that retirees living off their retirement plans are suffering from a decade of near-zero interest rates. Presumably this refers to retirees who might have a hundred thousand or two tucked away for retirement. This is already far more than the low-wage workers who have joined our campaign will be able to accrue over a lifetime of working.
But let’s take the argument at face value. Even if the Fed were to raise interest rates up to 2%, that’s a mere $2,000 on $100,000 savings over a year. That won’t make much of a difference to how well a middle-class retiree lives, but hiking rates to that level prematurely could cut off struggling families—who are disproportionately people of color—from the added jobs and higher wages they so desperately need.
Shawn Sebastian
Fed Up Campaign
Brooklyn, N.Y.
Lobbying the Federal Reserve as if it is a legislature began with the Humphrey-Hawkins legislation and the Federal Reserve Reform Act of 1977. The chair of the Fed became politicized and conflicted as the act included mandated congressional grilling of the Fed chair, who is now required to stabilize prices, moderate long-term interest rates, while at the same time delivering low unemployment. These lofty goals can’t necessarily be simultaneously executed, as Paul Volcker showed so well when he attacked inflation, effectively saying that employment would rise with a solid economy that had price stability.
Mr. Volcker had the courage to take the abuse and address his critics as he followed a logical path and publicly explained it, but successive chairs have gradually focused more on pleasing the president who appointed them.
Rep. Kevin Brady’s idea for a commission to rethink the idea of the Fed is a good start. We now have about 40 years of increasing monetary, fiscal and employment messes, with a paralyzed Fed, unsustainable deficits and underemployment because politics tramples economic common sense.
Larry Stewart
Vienna, Va.
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Despite Trump, State Progressives Advance Pro-Worker Policies
Despite Trump, State Progressives Advance Pro-Worker Policies
While the president goes on the attack, Democratic-controlled states and municipalities forge ahead....
While the president goes on the attack, Democratic-controlled states and municipalities forge ahead.
Read the full article here.
6 days ago
6 days ago