Sexual assault testimony in the Senate Judiciary Committee hearing triggers trauma, reports
Sexual assault testimony in the Senate Judiciary Committee hearing triggers trauma, reports
The political became personal for many this week, as Christine Blasey Ford’s testimony of sexual assault reopened old...
The political became personal for many this week, as Christine Blasey Ford’s testimony of sexual assault reopened old wounds for other victims — including two women who dramatically confronted a key US senator Friday in a Capitol elevator.
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As debate heats up over interest rates, progressive movement mobilizes behind a pro-wages, racial equity agenda
Following the call, participants released the following statements: Dawn O’Neal, teaching assistant and member of Rise...
Following the call, participants released the following statements:
Dawn O’Neal, teaching assistant and member of Rise Up Georgia: Atlanta, Ga.
"When the Fed meets in Jackson Hole to discuss inflation, they will be almost 2,000 miles away from South DeKalb County. Here, the lines of people desperate for even a temporary job at the local work pool stretches around the block – those people include my husband. Together, despite our hard work and best efforts, we still struggle at the end of the month with health and household bills. That’s not just our story, but that of our neighbors and our community. For members of the Fed looking to slow down the economy, I’d invite them to come here to East Atlanta. It’s not easy to live here; for some people the economy means our very survival.”
Keesha Moore, intern, job seeker, and member of Action United: Philadelphia, Penn.
“I have been searching for employment for 7 months now. I am 36 years old and I have a family to provide for and a house to maintain. I know I’m not alone when saying that the way the economy is today my household needs dual income in order to maintain and stay afloat. In Philadelphia, mine is a story all too common: We need more jobs available and fair wages. I don’t think that people who do not live here or pay taxes here should be able to take our jobs away from us with the stroke of a pen. At Jackson Hole, we will remind them that our communities also deserve a say in this debate.”
Josh Bivens, Economic Policy Institute
“The recovery will never reach workers’ wages if the Federal Reserve prematurely slows the recovery. The Fed should at least keep short term rates low until we reach a genuine full recovery from the Great Recession. At a minimum, this means waiting until wage growth is consistent with the Fed’s overall inflation targets and the labor market is back to pre–Great Recession health. And since the pre-Great Recession labor market was likely not at genuine full-employment, we can probably be even more aggressive in that in letting unemployment decline.”
Ady Barkan, campaign director for the Fed Up at the Center for Popular Democracy
“Members of the Fed Up coalition across the country have rallied for a more inclusive Federal Reserve that prioritizes wages and promotes a recovery in all of our communities. Our members have shared their stories with regional Fed Presidents and informed them why raising the rates prematurely would be disastrous in our communities, where many are still mired in a Great Recession. In Jackson Hole, we will put a faces and stories within reach of the Federal Reserve. Before they can have a real discussion of raising interest rates and slowing the economy, they should understand first-hand who it would affect.”
The Fed Up campaign, anchored at the Center for Popular Democracy, will hold a number of teach-ins in Jackson Hole, Wyo. during the Federal Reserve’s symposium from August 27 to 29 to convey why it does not make sense to stop the recovery for America’s families. The teach-ins will be led by workers, economists, and Fed Up allies and will cover an array of topics like the Fed’s role in full employment, the intersection of Black Lives Matter and the Fed, the selection process for regional bank presidents, a historical look at inflation, and more.
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Three Labels Control 80% Of The U.S. Music Industry. What Responsibility Comes With That Power?
Three Labels Control 80% Of The U.S. Music Industry. What Responsibility Comes With That Power?
In recent months, the music media has responded to the political climate by zooming in on artist behavior: Have or...
In recent months, the music media has responded to the political climate by zooming in on artist behavior: Have or haven’t they condemned Trump? Where do they stand? What do they suggest we do to resist? Publications including The FADER have increasingly looked to celebrities to provide a moral compass, to demonstrate what large-scale compassion looks like, and to show their peers what they’re doing wrong.
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Economic Sector Bias at the Federal Reserve
In part one of this two-part posting, I looked at the gender bias at the Federal Reserve, showing how men vastly...
In part one of this two-part posting, I looked at the gender bias at the Federal Reserve, showing how men vastly outnumber women in key posts at Federal Reserve Banks throughout the United States despite the Fed's Congressional mandate. In part two of this posting, I want to take an additional look at the Fed's bias; its failure to represent the economic diversity of America.
For those of you that either didn't read part one or who are unaware of the Federal Reserve's organizational setup, here is a graphic from a report by the Center for Popular Democracy showing the link between the Federal Reserve and its Federal Open Market Committee (FOMC) and its district banks known as Federal Reserve Banks:
Here is a map showing the regions covered by each of the 12 district banks (Federal Reserve Banks) and the 24 branches within each district:
Note that Alaska and Hawaii are covered by the San Francisco district.
If we start at the top of the organizational chart, the seven members of the Federal Reserve Board of Governors are appointed by the President and confirmed by the Senate for a 14-year term of office. The President (and Senate) also confirm two members of the Board to be Chair (currently Janet Yellen) and Vice Chair for four year terms. The FOMC consists of 12 members; the seven aforementioned Board members, the president of the Federal Reserve Bank of New York and four other regional Federal Reserve Bank presidents on a rotating, one-year term basis. The Federal Reserve Banks form an important link between the Federal Reserve and their local economy and help to dictate the Federal Reserve's monetary policies. Each of the twelve district banks has their own president and boards of directors (nine directors in total for each bank); in addition, each of the 24 district branches has its own directors (seven directors in total for each branch). The Board of Directors for each Reserve Bank are appointed in two ways; the majority are appointed by the Reserve Bank and the remainder are appointed by the Federal Reserve's Board of Governors. The directors for each district bank then appoint their own president and vice president. It all sounds rather nepotistic, doesn't it?
By law, under the Federal Reserve Reform Act of 1977, the Boards of Directors of the Federal Reserve are to be
"...elected with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers.".
That is, each of the leaders/directors of the world's most influential central bank and its district banking system are to represent a wide variety of each of the economic sectors that make up the American economy.
The report by the Center for Popular Democracy compares the economic sector representation during the period from 2006 to 2010 when the Government Accountability Office examined the composition of the Federal Reserve Bank Boards and the present. Here is a graphic showing the past and present composition:
In both 2006 to 2010 and 2016, directors from the banking sector filled over one-third of the board seats, growing by 3 percentage points over the timeframe of the study. In combination, in 2016, representatives from the commercial and industrial sector and the banking sector filled 68 percent of seats, up from 63 percent in 2006 to 2010. The service sector's representation fell from 26 percent of seats to 18 percent and agriculture and food processing saw their representation fall from 6 percent of seats to 3 percent. Interestingly, even though they are relatively poorly represented compared to the other sectors, the number of directors affiliated with consumer and community organizations rose from 3 percent to 8 percent.
For your illumination, here are a few of the Directors for each of the Federal Reserve Banks that you can get a sense of who is dictating America's monetary policies:
If you are interested in who is on the boards of the other Federal Reserve Banks, please see the original report.
Interestingly, during the "financial crisis" of 2008, there was some question about directors' independence and actions taken by the Federal Reserve banks since there was at least the perception of conflicts of interest when director-affliated institutions took part in the Federal Reserve System's emergency programs. With a preponderance of representation from the banking and commercial sectors, it certainly doesn't take a genius to figure out which sectors of the economy will likely be favoured by Federal Reserve policies should there be another "financial crisis", does it?
By A Political Junkie
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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.
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De Blasio and Mayors of Chicago, Los Angeles Launch Initiative to Help Immigrants Become U.S. Citizens
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new...
SILive - September 18, 2014, by Anna Sanders - Mayor Bill de Blasio on Wednesday announced the launch of a new initiative to push for eligible immigrants to become U.S. citizens in the nation's three largest cities.
"Cities for Citizenship" aims to increase naturalization programs and other efforts to help immigrants in New York City, Chicago and Los Angeles.
"This win-win effort will help us create more inclusive cities that lift up everyone," de Blasio said in a statement announcing the initiative. "From increased economic activity to larger voting and tax bases, the advantages of citizenship will not only expand opportunity to our immigrant families, but to all New Yorkers and residents nationwide."
The de Blasio administration said increasing immigrant access to citizenship will help fight poverty and estimated that naturalizing 684,000 legal permanent residents will add up to $4.1 billion to the city's economy over a decade.
In a report released Wednesday, the Center for Popular Democracy estimated that there are about 750,000 legal permanent residents eligible for naturalization.
Citigroup, a corporate partner of the initiative, will contribute $1.15 million for the new initiative.
New York City will use funds for NYCitizenship, a coordinated effort to connect low- and moderate-income New Yorkers to free legal assistance during the naturalization process. NYCitizenship works with city agencies to connect those in the city eligible to become U.S. citizens with assistance, such as legal advice, help on applications and financial counseling.
The NYCitizenship program has already helped more than 1,800 New Yorkers complete naturalization applications since 2012, according to the Center for Popular Democracy report.
In addition to the initiative, the city's Office of Immigrant Affairs will also commission a study on the economic impact of citizenship programs nationwide.
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Demonstrators Hold 'Die-In' To Protest Sackler Family’s Ties to Harvard Art Museums
Demonstrators Hold 'Die-In' To Protest Sackler Family’s Ties to Harvard Art Museums
Medical School students and the Center for Popular Democracy’s Opioid Network—a band of more than 45 grassroots...
Medical School students and the Center for Popular Democracy’s Opioid Network—a band of more than 45 grassroots organizations that have formed in response to the opioid crisis—organized the demonstration.
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GOP pours nearly $1M into Arizona special election
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in...
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in Arizona, where the outcome of the special election in the 8th district is perhaps less important than the margin.
Watch the video here.
This Study Found That Major U.S. Cities Spend Millions More On Policing Than On Social Programs
This Study Found That Major U.S. Cities Spend Millions More On Policing Than On Social Programs
That fact that something needs to change in the way policing works in the United States isn’t debated. Nearly everyone...
That fact that something needs to change in the way policing works in the United States isn’t debated.
Nearly everyone, regardless of political ideology, can agree that things aren’t working.
Read the full article here.
What The Federal Reserve Would Look Like If Progressives Had Their Way
What The Federal Reserve Would Look Like If Progressives Had Their Way
The progressive Fed Up coalition released an ambitious Federal Reserve reform plan on Monday designed to increase...
The progressive Fed Up coalition released an ambitious Federal Reserve reform plan on Monday designed to increase discussion of Fed policy in the presidential campaign.
The reforms, which would require the passage of new legislation, would turn the Federal Reserve into a public entity akin to other federal agencies, with the goal of dramatically increasing the accountability of the world’s most powerful financial body.
Currently, the 12 regional Federal Reserve banks are owned by private commercial banks. As a result, financial executives dominate the regional Fed banks’ boards of directors, giving them an outsized role in key decisions like the selection of the banks’ influential presidents.
Four of the current presidents are alumni of Wall Street titan Goldman Sachs.
Fed Up and other progressives argue that the present governance structure undermines the Fed’s role as a regulator of the country’s financial institutions. These critics also argue that the influence of big banks tends to make Fed officials more sensitive to concerns about inflation, even as they hear little from ordinary workers affected by nominal changes in the unemployment rate.
Andrew Levin, a Dartmouth economist and former adviser to the Fed chair, who authored the proposal, said on a call with reporters that the changes would bring the Fed’s structure into line with major central banks in other countries. He mocked the plain conflict of interest inherent in giving the financial industry so much power over an institution charged with regulating it.
“It should be amazing for people in the public that banks actually own shares in the Fed. A lot of people would be shocked to hear that,” Levin said.
“It would be like if lawyers owned shares in the FBI,” he added.
In the new system Levin devised, the selection process of the regional banks’ directors would be supervised by the Washington-based Federal Reserve Board of Governors, with involvement from individual governors and members of Congress in the relevant Fed bank’s jurisdiction. The majority of each bank’s directors would need to come from small businesses and nonprofits. These more diverse boards, in turn, would have to make public their process for selecting a bank president.
Members of the Fed Board of Governors, unlike the regional Fed banks, are appointed by the president and confirmed by the Senate, which is one reason why Fed reform advocates consider them more accountable to the public.
Levin and Fed Up made clear that they view the new governance structure as a way of generating greater ethnic and racial diversity among Fed officials as well. Levin noted that in the Fed’s existence of more than a century, not one of the regional Fed presidents has been African American.
Levin called the statistic “clear evidence that something is broken.”
In making the Fed a public institution, the modified system envisioned by Levin would subject the regional Fed banks to the Freedom of Information Act and the oversight of the Fed Board of Governors’ inspector general.
The entire Fed, including the Fed Board of Governors, would also undergo an annual review by the Government Accountability Office, a government body tasked with evaluating the efficacy and accountability of federal agencies.
The Federal Reserve Board of Governors declined to comment on the new plan, but chairwoman Janet Yellen has opposed past efforts to audit the Fed.
In addition, Levin’s plan changes the terms of both regional Fed bank presidents and Fed governors to seven years. Currently, regional Fed presidents serve for five years, and can be reappointed to a second term — which almost always occurs, thanks to a process that Levin and Fed Up say is typically no more than a formality. Fed Board governors now serve 14-year terms.
The Federal Reserve Board of Governors declined to comment on the reform plan. But Fed chair Janet Yellen has condemned legislation in the past that would audit the Fed’s finances, claiming it would “politicize” the institution’s decisionmaking. Yellen’s stance suggests she would likely oppose the even broader GAO review.
Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics who was a top economist at the Fed for many years, said of the reform plan that he is “more concerned that there are already too many limits on the Fed’s power to help the economy.”
Gagnon nonetheless said he views most of the new proposals favorably. His biggest specific objection is to the plan’s seven-year term limits, which he worries would open the Fed up to more political pressure by allowing a single president to decide its makeup.
The rollout of the Fed Up-backed proposal is timed — and packaged — to encourage presidential candidates to speak out. The coalition sent out model questions for the candidates to accompany the release of the reform proposal.
“It is important that we have a president who sees the need for sensible, pragmatic, nonpartisan reforms that will put the Fed on a path to serve the public for the next hundred years,” Levin said.
Sen. Bernie Sanders (I-Vt.) has released his own plan to make the Fed more accountable to the public. His campaign expressed support for the spirit of Fed Up’s reform proposal.
Warren Gunnels, top policy adviser for Sen. Bernie Sanders (I-Vt.), joined the call to express support for the spirit of Fed Up’s proposed reforms.
Sanders “believes we need to structurally reform the Fed so that it is a democratic institution that is responsive to ordinary Americans not just CEOs on Wall Street,” Gunnels said.
Gunnels would not say if Sanders endorsed the proposal, however, claiming the senator needed more time to review it.
He instead pointed to the Federal Reserve platform Sanders laid out in a Dec. 23 New York Times op-ed. In the column, Sanders says he would bar financial industry executives from serving on the boards of regional Fed banks altogether, make Fed assistance to banks contingent on concrete measures of service to the public, such as lending to low-income workers, and preclude the Fed from raising its benchmark interest rate until unemployment is below 4 percent.
Ady Barkan, Fed Up’s campaign director, said that the coalition had invited all five presidential candidates to join the press call, but only Sanders’ campaign had agreed to participate.
Hillary Clinton’s campaign did not respond to a HuffPost request for comment on Fed Up’s proposal, nor did the remaining Republican presidential candidates Sen. Ted Cruz (R-Texas), Ohio Gov. John Kasich (R) and Donald Trump.
Getting Democratic politicians, in particular, to make the Fed a policy cause could prove a difficult task for a number of reasons.
In recent years, Fed reform has tended to be the province of conservative lawmakers eager to rein in the Fed’s unprecedented efforts to aid financial institutions and stimulate economic demand in the wake of the 2008 financial crisis. Democrats have cast themselves as defenders of the Fed in those circumstances, since the central bank’s actions were viewed as crucial to the recovery.
It doesn’t help matters that the Fed is an issue that’s simply not on the public’s radar.
And there is also the risk of being seen as breaching protocol by commenting on an independent, nonpartisan institution.
“I don’t think many voters understand enough to care about it,” Ari Rabin-Havt, a progressive radio host and onetime aide to Democratic Senate Minority Leader Harry Reid (D-Nev.), said in an interview earlier this month. “The people who do care about it somewhat, view it as a ‘temple.’”
But economists and policy experts argue that it would be a mistake for Democrats to ignore the Fed. “Central banks became and still are the only game in town” when governments want to boost economic demand and employment, according a column by New York University economist Nouriel Roubini. That’s partly as a result of the ideological backlash across the developed world against using public spending as a fiscal stimulus, and the delayed effect of other reforms.
And the Fed is especially important in the American context, because the government is likely to remain divided regardless of who wins the presidency, narrowing the possibilities of ameliorative fiscal measures.
“If the economy starts to weaken again, we cannot trust Congress to act,” Mike Konczal, a fellow at the Roosevelt Institute, said earlier this month. “We will need a Fed that is ahead of the curve.”
Short of embracing reforms to the Federal Reserve’s governance, Democrats could make a bigger issue out of the two empty Fed governor seats. President Barack Obama named nominees for the positions many months ago, but Senate Republicans have failed to give them hearings.
Tim Duy, an economist at the University of Oregon, said he is “wary” of the candidates even articulating what kind of people they would nominate to the Fed Board of Governors lest they jeopardize the central bank’s independence. But he said calling for filling the empty governor seats is fair game.
“I would like [the presidential candidates] to at least say that we should have a Fed at full power, because that’s what makes for effective monetary policy,” Duy said earlier this month. “That should be a priority for Democrats and Republicans.”
By Daniel Marans
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3 days ago
3 days ago