Experts Urge Fed To Pursue 'Genuine Full Employment' Before Rate Hike
The Federal Reserve should pursue "genuine full employment" with "robust wage growth" before raising interest rates, ...
The Federal Reserve should pursue "genuine full employment" with "robust wage growth" before raising interest rates, experts from the Center for Popular Democracy and the Economic Policy Institute argue in anew report.
The report authors say the Fed, the central bank of the United States, can help reverse wage stagnation and narrow gender and racial wage gaps through its monetary policy.
Most Americans have faced wage stagnation over the last 35 years, despite there being a 64.9 percent growth in productivity during this time, according to the report. Wage growth also remained sluggish last month, with average hourly earnings increasing only 2 percent in June from one year ago.
A move by the Fed to slow the economy with an interest rate hike before "genuine full employment" is achieved will "hamper the ability of workers' wages to rise," the authors wrote.
"Because the vast majority of American workers have seen near-stagnant wages even as economy-wide productivity growth has constantly risen, there's ample space for wage gaps to close without anyone losing wages," said report co-author Josh Bivens, EPI's research and policy director. "The Fed has a powerful role in shaping labor market trends and raising wages. By pursuing full employment, it could help to close these wage gaps among workers."
In the report, the experts highlighted wage trends over recent decades among men and women as well as racial groups. Over the past 35 years, racial wage gaps between whites and Latinos or blacks have widened, the report says. During the same time period, disparities in median earnings between men and women did narrow by about 30 percent, but over a quarter of that progress was due to a decline of men's wages, according to the report.
For its part, the Fed has a "dual mandate" to keep prices stable and maximize employment. The Fed's current inflation target is 2 percent, and full employment is defined by the financial institution as a jobless rate between 5.0 percent to 5.2 percent. The nation's unemployment rate in June was 5.3 percent.
At some point this year, the Fed could begin to raise short-term interest rates, which were cut to near zero percent during the Great Recession to support the economy.
The report authors argue that the Fed's full employment estimate is "too meek," adding that the financial institution "should experiment aggressively with letting the unemployment rate fall as low as possible before raising interest rates."
"[T]he Fed should allow much lower unemployment levels, so long as no accelerating inflation results," the report adds. "Substantial evidence supports pursuing this more tolerant approach to falling unemployment. The late 1990s saw much lower rates (4.0 percent for two full years in 1999 and 2000) without sparking accelerating price inflation."
According to the experts, annual wage growth should also be in the 3.5 percent to 4.5 percent range before the Fed considers an interest rate hike.
Here are the three key recommendations listed in the report:
The Federal Reserve should set a clear and ambitious target for wage growth, which will provide an important and straightforward guidepost on the path to maximum employment. Wage targeting can be fairly easily tailored to the Fed's price-inflation target and pegged to increases in productivity.
The Fed should maintain a patient, but watchful posture. The history of the past 35 years shows a generally steady downward trend in price inflation and that prematurely slowing the economy results in higher than desirable unemployment.
The Federal Reserve should not consider an interest-rate hike until indicators of full employment--particularly wage growth--have strengthened.
"Failure to aggressively target and achieve genuine full employment by keeping interest rates low and setting a clear and ambitious target for wage growth explains a large part of why wages continue to stagnate," said report co-author Connie Razza, CPD's director of strategic research. "There is increasing talk about raising interest rates, but it would be a terrible mistake for the Fed to do so. Raising interest rates too soon will slow an already sluggish economy and will disproportionately harm women and people of color."
Source: Progress Illinois
Proposal Would Allow Immigrants in New York Illegally to Become Citizens
ABC 7 New York - June 16, 2014, by Dave Evans - It is a long shot, but a proposal by a New York State lawmaker would...
ABC 7 New York - June 16, 2014, by Dave Evans - It is a long shot, but a proposal by a New York State lawmaker would allow immigrants in the state illegally to become so-called "state citizens" if they've paid state taxes for at least three years.
It might sound a little strange for people to say 'I'm a citizen of New York State yet not an American citizen', but legal experts say it's doable.
And it's something many immigrants in New York desperately want, since the federal government hasn't budged on immigration reform.
"I could be deported tomorrow even though New York is my home. Brooklyn has been my home," said lawyer Cesar Vargas.
Vargas came to this country from Mexico when he was five. He's like almost 3 million other undocumented workers in New York State with few rights. He's a lawyer. He passed the bar but can't practice. He's not a citizen.
"I pay taxes, I created my own small business, I advocate for my community, I only want the opportunity, no special treatment, just the opportunity to be a lawyer for my community," he said.
In Battery Park Monday, a rally was held with the Statue of Liberty as a backdrop.
"2.7 million people make their home in this state and we have a responsibility to them as a state," said State Senator Gustavo Rivera.
Rivera introduced a bill Monday that if someone has an ID, has lived in this country for three years and paid taxes, they could then become a citizen of New York State.
They would be allowed to vote and run in local and state elections. They could get a driver's license, and qualify for Medicaid coverage.
"Now all of these things will allow almost 3 million people to fully participate in the civic, political and economic life of the state of New York. They are already contributing," said Rivera.
The bill has almost no chance at becoming a law anytime soon in Albany. If it did, we would be American citizens and New York citizens as well, and conservatives call that absurd.
"It's a bad idea. It's not only bad, it's probably an insane idea to create a separate category of citizens in our country," said New York Conservative Party chairman Mike Long.
Conservatives say they're worred the idea is even being brought up in Albany, because that gets the discussion rolling, and eventually they fear something like this could pass.
Also, advocates agree, saying this bill won't pass anytime soon. But they want people to start thinking and talking about this issue.
Source
Divided Democrats face liberal backlash on immigration
Divided Democrats face liberal backlash on immigration
Opponents of demonstrators urging the Democratic Party to protect the Deferred Action for Childhood Arrivals Act (DACA...
Opponents of demonstrators urging the Democratic Party to protect the Deferred Action for Childhood Arrivals Act (DACA) stand outside the office of California Democratic Sen. Dianne Feinstein in Los Angeles Wednesday, Jan. 3, 2018. California has the largest number of people who are affected by the law, also known as the Dream Act.
Read the full article here.
Report: Anti-gay Laws Drive Up Poverty Rates for LGBT People
Miami Herald - September 30, 2014, by Steve Rothaus - A report issued Tuesday shows that LGBT Americans face added...
Miami Herald - September 30, 2014, by Steve Rothaus - A report issued Tuesday shows that LGBT Americans face added financial burdens — and often higher poverty rates — because of antigay national, state and local legislation.
NBC News has covered the story, with a video of Arlene Goldberg, the Fort Myers widow who is suing Florida to recognize her marriage to longtime partner Carol Goldwasser.
Goldberg’s primary income is Social Security. Because Florida doesn’t recognize Goldberg’s marriage, she is unable to qualify as Goldwasser’s widow and collect her Social Security payments, which were $700 more each month than Goldberg’s.
Here’s a news release from the Movement Advancement Project (MAP) and the Center for American Progress (CAP):
Washington, D.C. — A landmark report released today paints a stark picture of the added financial burdens faced by lesbian, gay, bisexual, and transgender (LGBT) Americans because of anti-LGBT laws at the national, state and local levels. According to the report, these laws contribute to significantly higher rates of poverty among LGBT Americans and create unfair financial penalties in the form of higher taxes, reduced wages and Social Security income, increased healthcare costs, and more.
The momentum of recent court rulings overturning marriage bans across the country has created the impression that LGBT Americans are on the cusp of achieving full equality from coast-to-coast. But the new report, Paying an Unfair Price: The Financial Penalty for Being LGBT in America, documents how inequitable laws harm the economic well-being of LGBT people in three key ways: by enabling legal discrimination in jobs, housing, credit and other areas; by failing to recognize LGBT families, both in general and across a range of programs and laws designed to help American families; and by creating barriers to safe and affordable education for LGBT students and the children of LGBT parents.
Paying an Unfair Pricewas co-authored by the Movement Advancement Project (MAP) and the Center for American Progress (CAP), in partnership with Center for Community Change, Center for Popular Democracy, National Association of Social Workers, and the National Education Association. It is available online at www.lgbtmap.org/unfair-price.
“Unfair laws deliver a one-two punch. They both drive poverty within the LGBT community and then hit people when they are down,” said Ineke Mushovic, Executive Director of MAP. “While families with means might be able to withstand the costs of extra taxation or the unfair denial of Social Security benefits, for an already-struggling family these financial penalties can mean the difference between getting by and getting evicted. Anti-LGBT laws do the most harm to the most vulnerable in the LGBT community, including those who are barely making ends meet, families with children, older adults, and people of color.”
The report documents the often-devastating consequences when the law fails LGBT families. For example, children raised by same-sex parents are almost twice as likely to be poor as children raised by married opposite-sex parents. Additionally, 15 percent of transgender workers have incomes of less than $10,000 per year; among the population as a whole, the comparable figure is just four percent. To demonstrate the connection between anti-LGBT laws and the finances of LGBT Americans and their families, the report outlines how LGBT people living in states with low levels of equality are more likely to be poor, both compared to their non-LGBT neighbors, and compared to their LGBT counterparts in state with high levels of equality. For example, the denial of marriage costs gay and lesbian families money; same-sex couples with children had just $689 less in household income than married opposite-sex couples in states with marriage and relationship recognition for same-sex couples, but had an astounding $8,912 less in household income in states lacking such protections.
DISCRIMINATORY LAWS CREATE A DEVASTATING CYCLE OF POVERTY
How do inequitable laws contribute to higher rates of poverty for LGBT people? The report documents how LGBT people in the United States face clear financial penalties because of three primary failures in the law.
1. Lack of protection from discrimination means that LGBT people can be fired, denied housing and credit, and refused medically-necessary healthcare simply because they are LGBT. The financial penalty: LGBT people can struggle to find work, make less on the job, and have higher housing and medical costs than their non-LGBT peers.
2. Refusal to recognize LGBT families means that LGBT families are denied many of thesame benefits afforded to non-LGBT families when it comes to health insurance, taxes, vital safety-net programs, and retirement planning. The financial penalty: LGBT families pay more for health insurance, taxes, and legal assistance, and may be unable to access essential protections for their families in times of crisis.
3. Failure to adequately protect LGBT students means that LGBT people and their families often face a hostile, unsafe, and unwelcoming environment in local schools, as well as discrimination in accessing financial aid and other support. The financial penalty: LGBT youth are more likely to perform poorly in school and to face challenges pursuing postsecondary educational opportunities, as can youth with LGBT parents. This, in turn, can reduce their earnings over time, as well as their chances of having successful jobs and careers.
“Imagine losing your job or your home simply because of who you are or whom you love. Imagine having to choose between paying the rent and finding legal help so you can establish parenting rights for the child you have been raising from birth,” said Laura E. Durso, Director LGBT Progress at the Center for American Progress at CAP. “These are just a couple of the added costs that are harming the economic security of LGBT people across the country. It is unfair and un-American that LGBT people are penalized because of who they are, and it has real and profound effects on their ability to stay out of poverty and provide for their families.”
Paying an Unfair Price offers broad recommendations for helping strengthen economic security for LGBT Americans. Recommendations include: instituting basic nondiscrimination protections at the federal and state level; allowing same-sex couples to marry in all states; allowing LGBT parents to form legal ties with the children they are raising; andprotecting students from discrimination and harassment on the basis of sexual orientation and gender identity.
“At a time when so many American families are struggling to make ends meet, the report's findings point to an even bleaker reality for those who are both LGBT and people of color," said Connie Razza, Director of Strategic Research at the Center for Popular Democracy. "Unchecked employment discrimination and laws that needlessly increase the costs of healthcare, housing and childcare are doing profound harm to our economic strength as a nation. This report offers real-life policy solutions that, if implemented, would protect some of our most vulnerable individuals and families."
“Reducing the unfair financial penalties that LGBT people face in this country because they are LGBT is not that complicated. It is a simple matter of treating LGBT Americans equally under the law. For example, extending the freedom to marry, including LGBT students in safe schools laws, and ending the exclusion of LGBT people from laws meant to protect families when a parent dies or becomes disabled,” said Deepak Bhargava, executive director of the Center for Community Change.
Source
City Governments Spend More For Policing Than Social Services
City Governments Spend More For Policing Than Social Services
Watch a discussion about how governments spend more money on policing than they do on social services....
Watch a discussion about how governments spend more money on policing than they do on social services.
Watch the video here.
Conservatives May Control State Governments, But Progressives Are Rising
Bill Moyers - March 18, 2015, by George Goehl, Ana María Archila, and Fred Azcarate - In November, conservatives swept...
Bill Moyers - March 18, 2015, by George Goehl, Ana María Archila, and Fred Azcarate - In November, conservatives swept not only Congress, but a majority of statehouses. While gridlock in Washington is frustrating, the rightward lurch of statehouses could be devastating. Reveling in their newfound power, state lawmakers and their corporate allies are writing regressive policies that could hurt families by exacerbating inequality, further curtailing an already weakened democracy, and worsening an environmental crisis of global proportions.
From a law that would censor public university professors in Kansas to a governor who prohibits state officials from using the term “climate change” in Florida, ideologues in state capitols are wasting little time when it comes to enacting an extreme agenda. And that’s just the tip of the iceberg. Wisconsin officially enacted right to work legislation on Monday, a policy that’s shown to lower wages and benefits by weakening the power of unions. Missouri, New Mexico, West Virginia, Kentucky, and Illinois are all entertaining various versions of the law. In states like New York and Ohio, legislators are considering severe cuts to public education, while vastly expanding charter schools.
Of course, a look at key 2014 ballot initiatives shows voters held progressive values on issues like the minimum wage, paid sick days, and a millionaires tax. And just 36.4 percent of eligible voters cast their ballots in 2014, meaning that there is surely a silent majority sitting on the sidelines.
The path to policies that put families first is not short, but a bold coalition across the country took an aggressive step forward this week.
On March 11th, under the banner “We Rise,” thousands of people joined more than 28 actions in 16 states to awaken that silent majority and call their legislators to account. A joint project of National People’s Action, Center for Popular Democracy, USAction and other allies across the country, the message of the day was simple: our cities and states belong to us, not big corporations and the wealthy. We can work together and push our legislators to enact an agenda that puts people and the planet before profits. And at each local action, leaders unveiled their proposals for what that agenda would look like in their cities and states.
In Minnesota, grassroots leaders are fighting for a proposal to re-enfranchise over 44,000 formerly incarcerated people. In Nevada, our allies are agitating for a $15 minimum wage. In Illinois, we are organizing for closing corporate tax loopholes and a financial transaction tax (a “LaSalle Street tax”) that would help plug the state’s budget hole. With each of these proposals, we are moving from defense to offense and changing the conversation about race, democracy and our economy.
We’ve seen over and over again in American history, change starts close to home – in our towns, cities and states. On March 11th, we saw a fresh reminder of the power of local change. Our families and communities are defining this new front in American public life, and we will continue rising to challenge corporate power and win the policies that put people and planet first - not last.
If November was a wave election, then this Spring will be a wave of bottom-up people power activism. What starts with defending people and our democracy from an extreme corporate conservative agenda, will pivot to offense as grassroots organizations across the country fight to fundamentally reshape our government and our economy from the bottom up. Expect an unabashedly bold agenda that holds the potential for awakening the progressive majority and ushering in a new era in America, an era where our country works for everyone, not just the wealthy and well connected.
Source
Fed policymakers see rate hikes, blurring dove-hawk divide
Fed policymakers see rate hikes, blurring dove-hawk divide
Whitehurst’s group of activists, Fed Up, has printed pamphlets to distribute at the conference venue that say George,...
Whitehurst’s group of activists, Fed Up, has printed pamphlets to distribute at the conference venue that say George, along with other traditionally hawkish policymakers, “wants more people to be unemployed.”
Read the full article here.
Instead Of Turning On Each Other, Immigrant And Domestic Workers Unite To Form New Organization
The Huffington Post - November 17, 2013, by Farah Mohamed & Ryam Grim - In times of economic weakness, the...
The Huffington Post - November 17, 2013, by Farah Mohamed & Ryam Grim - In times of economic weakness, the ruling class has tended to pit domestic workers against immigrants, warning the former that wages are low and jobs are scarce because of the latter.
The effort in the United States has led to tremendous hostility toward immigrants, exhibited by then-GOP presidential candidate Mitt Romney's recommendation that conditions be made so unbearable for undocumented immigrants that they "self deport."
With precious little Latino support, the Republican coalition doesn't need to reconcile its domestic and foreign-born workers. But the Democratic Party, which includes many Latinos, Asians and African-Americans, is strengthened when the various elements of its coalition see themselves as aligned in a similar struggle -- one for jobs, better conditions and higher wages.
It's the kind of strengthened coalition that two major grassroots community organizations say they're hoping to build with a previously unreported merger. The Center for Popular Democracy and the Leadership Center for the Common Good will merge on Jan. 1, to become a larger and better resourced Center for Popular Democracy, officials at both groups tell HuffPost.
The new organization, which will have offices in New York and Washington, and staff in California, Minnesota and Illinois, will be composed of 35 staff members and 11 core partner organizations with more than 70 partner organizations in 27 states.
"We are actually trying to connect the world of immigrant justice and the world of economic justice by bringing together two hubs," said Ana Maria Archila, co-director of the new organization. "We haven't seen this level of popular trends and organizations in a while, and our merger is really kind of at the center in the world of economic justice, worker community and immigrant rights."
The Center for Popular Democracy, based in New York, has worked with a range of organizations fighting for social justice. Some of its victories include reforming the New York City Police Department's stop-and-frisk policing, raising New York's minimum wage and forcing the passage of legislation requiring paid sick leave for 1 million New Yorkers. The Washington-based Leadership Center for the Common Good advocates for low- and moderate-income communities, communities of color and immigrants.
By uniting, the two hope to increase their reach. For instance, the CPD maintains that its strongest ties are with immigrants' rights and worker organizations. LCCG, by contrast, works with partners rooted within the African-American community.
The merger would fill a vacuum in strong community advocacy. In 2009, conservative provocateur James O'Keefe targeted the Association of Community Organizations for Reform Now, a low- to middle-income grassroots activism group, in a series of videos which resulted in the dissolution of ACORN in 2010. House Republicans still include language in spending bills to ensure no federal money goes to the organization, even though it no longer exists.
But Archila and her new CPD co-director Brian Kettenring, who is a veteran of ACORN, see the new partnership as something different. "We're building something entirely new. We're not building a closed network," Archila said.
The new Center for Popular Democracy's mission, according to a concept paper provided to The Huffington Post, is to "build the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial and economic justice agenda." Staff will be organized around nine "core capabilities," including capacity building, campaigns and politics, and will focus on immigration rights and racial justice, economic justice, voting rights and democracy, education and housing, and Wall Street accountability.
"I would describe the new CPD as a campaign, policy and capacity-building center for community organizations," Kettenring said.
CPD will not launch new campaigns because of the merger, he added, but it does have projects in the works for January, including one that will focus on "articulating a firm vision -- a progressive vision -- of what public education should look like" and "defeating what we see as a corporate takeover of education in America."
By expanding the scale, strength and reach through the merger, the new CPD hopes to play an increasingly crucial role in the rejuvenated battle for social justice.
"There is tremendous energy in our communities -- in communities of color, in working class communities -- to change the way the things are done," Archila said. "There is tremendous political energy, and what we need is organizations -- institutions -- that will take advantage of that and will nurture that and drive it in the direction of concrete victory ... We know how to bring institutions together to make sure that it doesn't just mean one plus one equals two, but one plus one equals so much more. And that's what we think is going to happen with this merger."
Source
Jeff Flake jokes about moment when sexual assault survivors confronted him on elevator
Jeff Flake jokes about moment when sexual assault survivors confronted him on elevator
Sen. Jeff Flake cracked a joke Saturday about the viral moment we was confronted by sexual assault survivors on an...
Sen. Jeff Flake cracked a joke Saturday about the viral moment we was confronted by sexual assault survivors on an elevator last week over his support for embattled Supreme Court nominee Brett Kavanaugh.
Read the full article here.
Struggle and the State
Struggle and the State
Today's Dig is a very good and somewhat unusual Dig: Dan’s got two interviews with two different people. First,...
Today's Dig is a very good and somewhat unusual Dig: Dan’s got two interviews with two different people. First, journalist Eric Blanc on the teacher strike wave that he's been covering for Jacobin. Then comes the Center for Popular Democracy's Xiomara Caro Diaz on last week's May Day demonstrations against austerity in Puerto Rico.
Listen to the episode here.
6 days ago
6 days ago