Want to combat inequality? Look to the Fed.
Want to combat inequality? Look to the Fed.
Undermining the central bank's responsibility to promote maximum employment would be a mistake....
Undermining the central bank's responsibility to promote maximum employment would be a mistake.
Read the full article here.
Should New Orleans Allow Undocumented Immigrants to Get City-issued ID Cards?
The Times-Picayune - December 16, 2014, by Robert McClendon - One of the centerpieces of New Orleans Councilwoman...
The Times-Picayune - December 16, 2014, by Robert McClendon - One of the centerpieces of New Orleans Councilwoman LaToya Cantrell's pro-immigrant policy package is a proposed municipal identification card program.
Let us know what you think of the idea by taking the poll below and sharing your views in the comment section.
ID cards are used in so many bureaucratic and commercial interactions that they are easy to take for granted. They are often required during interactions with police, when registering children for school and when opening open bank accounts.
Undocumented immigrants, however, are frequently unable to obtain what has become the most common form of government issued identification: the drivers license.
Louisiana, like many states, has strict eligibility rules for drivers licenses, requiring applicants to prove that they are either American citizens or in the country legally.
Without a state-issued ID, undocumented immigrants are frequently unable to accomplish basic tasks, according to advocacy groups. And, with Congress seemingly hopelessly deadlocked on a reform that would normalize the status of immigrants in the country illegally, that situation is unlikely to change any time soon.
Thus, groups like the center for popular democracy, a left-wing advocacy group, are pushing for cities to take matters into their own hands by creating municipal identification cards that do not require applicants to prove they are in the country legally.
The idea is still relatively new. The first community thought to have created a city-ID program is New Haven, Connecticut, which launched its program in 2007. It's unclear how many cities nationwide have followed suit.
A white paper issued by the Center for Popular Democracy says that other cities with local ID programs include: San Francisco; New York; Richmond, California; Oakland, California; Los Angeles; Washington DC and several municipalities in New Jersey.
Critics of such programs say they undermine security by making it easier to obtain government identification and some have said it will make it easier for non-citizens to vote.
Anti-immigrant hardliners have said they like the strict state laws in place precisely because they make life more difficult for immigrants. The harder life is for immigrants, the more likely they are to "self deport," the activists say.
A city-issued ID program is among many policy changes that Cantrell says she will propose in a non-binding resolution early next year.
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Progressive Activists Protest For A Cause You Should Hear More About, But Won't
More than a dozen community activists picketed the Federal Reserve Bank of Philadelphia this week, protesting what they...
More than a dozen community activists picketed the Federal Reserve Bank of Philadelphia this week, protesting what they say is the bank president’s refusal to meet with them to discuss how Fed monetary policy affects real people.
The roughly 15 activists are members of ACTION United, an organization representing low-income people of color in Philadelphia. ACTION United is affiliated with the national Fed Up campaign, a coalition of progressive groups advocating Fed monetary policies that prioritize full employment and shared economic prosperity.
Fed Up and ACTION United planned Tuesday's protest because they say that Philadelphia Fed President Patrick Harker reneged on a promise to meet, and allow group members to give him a tour of low-income neighborhoods where they are active. The activists point to a video in which Harker appears to commit to the meeting in a conversation with ACTION United organizer Kendra Brooks at the annual Jackson Hole symposium in August.
When Brooks followed up, Theresa Singleton, the Philadelphia Fed’s vice president and community affairs officer, said in an email obtained by HuffPost that a meeting was not in the cards, because the bank is reluctant to work with “just one organization."
Instead, Singleton invited Brooks to Tuesday’s community development briefing for low- and moderate-income community stakeholders. Singleton also said Fed staff would “design and organize” their own community tour.
That response rankled Fed Up and ACTION United members. The Federal Reserve has a dozen regional banks, and the activists have met or have planned meetings with all of the regional Fed leaders except Philadelphia's since the campaign began in August 2014. They want a meeting -- and they want it to take place in an economically distressed community of color -- not in the Fed’s offices.
So they decided to pressure the Philadelphia Fed with a protest, featuring Fed Up’s trademark “What recovery?” signs and green "Whose Recovery?" T-shirts.
ACTION United also sent Brooks to the community development briefing, where she and several nonprofit executives and bankers who work with low- and moderate-income earners spoke with Harker and Singleton.
Brooks said she was mostly pleased with what she heard from Harker and other Fed officials, who she said sounded genuinely committed to researching the conditions in communities the Fed serves and finding ways to improve “economic autonomy” in the Philadelphia region.
“The outcome of the meeting was much better than we anticipated, but going in, we did not know the information that we knew coming out.” Brooks said. “We hope he will continue to keep the doors open for organizations like ours and our coalition. And that we will continue to be a part of that conversation and not excluded.”
But Brooks noted that the Fed officials did not discuss how monetary policy and the Fed’s adjustment of interest rates disproportionately affects low-income workers and communities of color.
For the Fed Up campaign, the exclusion of monetary policy reaffirms that nothing short of a meeting between Harker and activists will suffice.
“We appreciate and accept the invitation to discuss community development and research, but this is not a substitute for the promise President Harker made to Fed Up,” said Shawn Sebastian, a policy advocate and staff attorney for the Fed Up campaign. “President Harker promised to speak with working families in the black neighborhoods of Philadelphia about their experiences -- where unemployment is double white unemployment. Harker promised to discuss how his monetary policy decisions can build a true full employment economy that works for everyone.”
Philadelphia Fed spokeswoman Marilyn Wimp, in an email to HuffPost, didn't address a question about whether Harker reneged on his promise to meet with protesters. She instead pointed to Tuesday's briefing as evidence of Harker's interest in reaching out to diverse parts of the community.
But the list of the Tuesday briefing’s attendees reveals that Brooks was the only stakeholder from a group with a position on Fed interest rates.
Crafting monetary policy is a main responsibility of the Federal Reserve regional banks. Regional Fed presidents occupy five of the 12 seats on the Federal Open Market Committee, responsible for adjusting the Fed’s benchmark interest rates. Lately, they have accounted for half of the committee’s votes, because the Senate has failed to approve presidential nominees for two of the seven seats reserved for members of the Federal Reserve Board of Governors in Washington.
The FOMC keeps its benchmark interest rates low when it is more concerned about full employment, and raises them to curb excessive inflation when the economy has grown enough to drive up prices.
Fed Up wants the central bank to maintain current low interest rates for the near term, which will allow economic demand to continue to grow, benefitting workers with more jobs and higher wages. The campaign applauded the Fed’s decision to leave rates unchanged in September.
But Fed Up leaders said they're worried about the Philadelphia Fed and the role its president may play in future monetary policy decisions. The Philadelphia region's previous Fed president, Charles Plosser, who left the post in March, was an outspoken inflation hawk.
Harker, who will serve a one-year term on the FOMC in 2017, was a member of the Philadelphia Fed board’s search committee for a new president, recusing himself once he became a candidate.
Harker’s views on monetary policy are not yet known. He is a former trustee of the Goldman Sachs Trust, which Sebastian and other Fed Up critics said they worry will make him more sympathetic to financial institutions' concerns about inflation.
Source: Huffington Post
Fed Up Says It Unjustly Lost Rooms at Jackson Hole Meeting
Fed Up Says It Unjustly Lost Rooms at Jackson Hole Meeting
A coalition of community and labor groups known as “Fed Up” said 39 members planning to stay at the hotel hosting the...
A coalition of community and labor groups known as “Fed Up” said 39 members planning to stay at the hotel hosting the Federal Reserve’s prestigious annual retreat in Jackson Hole, Wyoming, were unfairly singled out when their 13 room reservations were canceled.
The group, which is pressing the U.S. central bank to appoint more minorities and women to its leadership, said most of its attendees would have been black and Latino. It has filed a complaint with the U.S. Department of Justice and other government officials. The group believes it lost the rooms because of “specific targeting of the Fed Up coalition.”
Fed Chair Janet Yellen is the first woman to lead the U.S. central bank and it remains under pressure to become more diverse. Democratic presidential nominee Hillary Clinton joined calls for reform in May and the central bank has taken fire from Republicans, who warn its low interest rate policies risk inflating another asset bubble.
The Fed Up coalition, which wants rates to stay low to boost hiring and lift wages, has discussed its concerns with Fed officials, including Esther George, president of the Kansas City Fed, which hosts the annual Jackson Hole monetary-policy conference in late August.
Faced with criticism that it doesn’t look out for the interests of poorer Americans, the Fed has been making efforts to change. The Kansas City Fed said on Thursday that it will hold a conference on the challenges low- to moderate-income communities face on Sept. 7-8 at its headquarters.
Booking Error
Alex Klein, vice president and general manager of Grand Teton Lodge Company and Flagg Ranch, said the reservations were canceled because “an error in the booking system” resulted in the Jackson Lake Lodge being oversold by 18 rooms. “We worked proactively and diligently with guests to relocate them to our nearby Flagg Ranch property,” he said in a statement.
The Kansas City Fed has a contract to provide rooms for guests at the symposium and “has no input regarding any decisions that the Lodge makes outside of its contract with us,” said bank spokesman Bill Medley.
The symposium, which gathers policy makers and economic-thought leaders for a three-day retreat in the heart of the Grand Teton mountains, is probably the most important event of its kind on the central-banking calendar. Yellen will attend and plans to address the conference on Aug. 26. This year’s meeting, which is invitation only, is focused on the topic “Designing Resilient Monetary Policy Frameworks for the Future.”
The hotel, while remote, is open to the public and Fed Up representatives have made the trip for the past two years. In 2015, Fed Up held an alternative conference at the Lodge which was addressed by Nobel-prize winning economist Joseph Stiglitz.
By Steve Matthews & Jeanna Smialek
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Why the Federal Reserve is due for a radical reinvention
Why the Federal Reserve is due for a radical reinvention
The Federal Reserve is a hot topic in the news these days. Usually, the stories revolve around the merits of its...
The Federal Reserve is a hot topic in the news these days. Usually, the stories revolve around the merits of its decisions: Was quantitative easing a good idea? Should it raise interest rates again in April? But Andrew Levin, a Dartmouth economist and former aide to Federal Reserve Chair Janet Yellen, thinks our questions need to go much deeper.
On Monday, Levin and the activist campaign Fed Up proposed four major reforms that would radically alter the structure of the Federal Reserve. The reason they cite is compellingly simple: How the Fed works is basically out of whack with what it does today.
The Federal Reserve began around a century ago as a decentralized and private institution aimed at avoiding financial panics and making sure the interactions between the nation's for-profit banks remained stable. Since then, it's basically become a kind of government agency, with a fundamental role in shaping the American economy and the supply of wages and jobs for everyday workers. But the design and governance of the Fed has not kept up with that shift in responsibilities.
To understand why, let's start at the very beginning. Western economies began creating central banks several centuries ago as modern capitalism was first coming into focus, to serve as a "lender of last resort." Private banks could go and borrow from the central bank when times were tight — even if was just for a few days — and that would quell potential financial panics and bank runs. As a result, central banks were generally created by government charters, but as private corporations whose shares were owned by the banks that borrowed from them. "When the Bank of England and some other major central banks were founded, they were viewed as mostly providing services to commercial banks," as Levin explained to The Week.
America's Federal Reserve was created in 1913 under very similar circumstances. A potential financial crisis in 1907 was averted only when J.P. Morgan stepped in to backstop the country's private banks with his own personal fortune. No one wanted a repeat of that, so the Fed was created. It's actually a system of 12 regions, each overseen by a Fed branch bank — there's one in Dallas, in Richmond, in New York City, and so forth — with the private banks owning the shares of whatever Fed bank oversees their region.
More importantly, each regional Fed bank is run by a board of nine directors, six of whom are appointed by the private banking industry. The other three are appointed by the Federal Reserve system's national Board of Governors — a seven-member group appointed by the U.S. president and confirmed by the Senate. Together, the directors appoint a president to run their particular regional bank, rather like a CEO and a corporate board: They set the president's salary, review his or her performance, etc. All nine used to do that, but Dodd-Frank reformed the system in 2010 so that three of the six governors appointed by the private banks no longer play a role in selecting the president.
Over the course of the 20th Century, various developments like the end of the gold standard and the creation of federal deposit insurance diluted the importance of the regional banks as lenders of last resort. At the same time, however, the regional banks found themselves owning large amounts of financial instruments as a result of serving that role. So they created a joint national group to manage all those holdings called the Federal Open Market Committee (FOMC), and over time it grew in importance. Its decisions are determined by 12 votes: the seven members of the Board of Governors, plus five of the 12 regional presidents. (The 12 presidents rotate through the voting positions, while the other seven sit in on the FOMC but don't vote.)
Today, when we talk about the Fed setting interest rates or meeting to decide monetary policy — which in turn decides the rate of wage growth and the supply of jobs throughout the entire national economy — we're talking about the FOMC. "For all practical purposes, the Federal Reserve today is a public enterprise," Levin said. "It's serving the public. It's making nationally critical decisions."
The problem is the Federal Reserve system was originally conceived of and designed as an add-on to the private banking industry, and that design has remained even as the nature and responsibilities of the Fed have change enormously: "This whole rationale that made perfect sense in 1913 doesn't make sense anymore," Levin said. The result is an institution that, while of enormous import to the public good, is incredibly complex, opaque, and governed with comparatively little input from everyday Americans.
"The Fed, in order to be effective, has to have the confidence of the public," Levin said. But allowing the banks to hold such enormous sway over the decision-making of the institution tasked with both setting national interest rates and regulating the financial system undermines that confidence. Economist Dean Baker analogized it to "reserving seats on the Federal Communications Commission’s board for the cable television industry." Levin himself likened it to allowing criminal attorneys or defense lawyers to select the director of the FBI and set his or her salary and performance review.
So Levin has put forward four major reforms. They're broad, and the details for how they could play out are negotiable, but they're aimed at starting a conversation around the topic.
One is to eliminate private ownership of shares in the Federal Reserve system and make it fully public, but more importantly to completely reform how the nine directors of each regional bank are appointed. This could involve reducing the number of directors, but mostly it would involve selecting them all via the same process, one that brings in all aspects of the community — small businesses, community groups, unions, non-profits, etc. In particular, directors should not come from institutions — i.e. private banks and financial entities — that the Fed system is tasked with overseeing.
The next step would be to make the process by which the nine directors for each region select their president public and transparent. As Ady Barkan, the campaign director for Fed Up, pointed out in a press call, when all 12 regional president slots were up for replacement in February, all 12 were quietly and opaquely re-appointed — even after the Fed Up campaign pressed Fed officials to lay out a system by which the public could participate. The ones for Dallas, Minneapolis, and Philadelphia were all previously associated with Goldman Sachs. St. Louis Federal Reserve President James Bullard once told Barkan that, "To call the reappointment process pro forma would be an understatement."
Third would be to set term limits for Fed officials. Make them long enough to insulate those officials from political pressure. But don't allow them to serve multiple terms one after the other as they can now.
And finally, apply the same transparency standards to the Fed that are applied to other government agencies: Allow the Government Accountability Office to publish an annual review of all the Fed's operations and policies, and make sure both the Fed's Inspector General and the Freedom of Information Act apply to the 12 regional banks as well as the national Board of Governors.
"What I've proposed is something that seems incremental, workable, and helpful," Levin concluded. And despite arguments over whether the Fed is making the right choices in the here and now about things like interest rates, Levin's goal is much bigger: to make the Fed a healthy functioning member of our democracy long after the current economic situation — and whatever particular monetary policy stance it calls for — has passed.
"These reforms are to improve governance, accountability and transparency," Levin said. "We live in a democracy — and the government is supposed to serve the public."
By Jeff Spross
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Report: Hedge funds that ‘killed’ Toys ‘R’ Us ‘prey’ on Puerto Rico
Report: Hedge funds that ‘killed’ Toys ‘R’ Us ‘prey’ on Puerto Rico
Some of the hedge funds that are speculating on Puerto Rico debt also forced Toys R Us to shut down, according to a...
Some of the hedge funds that are speculating on Puerto Rico debt also forced Toys R Us to shut down, according to a report released by Hedge Clippers, which advocates for income equality by targeting hedge and private equity funds, in partnership with the Center for Popular Democracy, a nonprofit that advocates for workers rights.
Read the full article here.
New York dedicates millions of dollars to help immigrants fight deportations
New York dedicates millions of dollars to help immigrants fight deportations
New York will soon offer free legal services for poor immigrants facing deportations, thanks to a new budget provision...
New York will soon offer free legal services for poor immigrants facing deportations, thanks to a new budget provision announced this week by Gov. Andrew Cuomo.
The state’s 2017-2018 budget sets aside $10 million for expanding immigrant legal defense services, $4 million of which will go to the Vera Institute of Justice’s New York Immigrant Family Unity Project — a coalition of groups that seek to ensure that all undocumented immigrants have public defenders...
Read full article here.
ABQ call center workers get more family-friendly workplace rules
More than workers at Albuquerque’s T-Mobile call center began working under new workplace rules this week. The company...
More than workers at Albuquerque’s T-Mobile call center began working under new workplace rules this week. The company has been under increasing pressure to modify work rules to give workers greater flexibility to balance family and work requirements.
The company operates a nationwide call center near Jefferson and Menaul in Albuquerque and recently announced plans to add more employees top the more than 1,500 local workers already employed at the site.
News of the new workplace rules came from the Communications Workers of America which has been leading efforts with local organizations for these changes:
For Immediate Release July 2, 2015
Public Pressure Pushes T-Mobile US to Provide Fairer Paid Parental Leave Policy
WASHINGTON, D.C. – Responding to growing public pressure and local government initiatives, T-Mobile US announced this week that it would be adopt a paid parental leave program. The company also said it would end an oppressive policy that required call center workers to be on the phone 96.5% of their work time, leaving them with virtually no time for follow up on customer issues or to make changes in customers’ accounts as needed.
This is great news for workers who often must struggle to balance family and career. It comes as workers at T-Mobile US and a coalition of community supporters in cities like Albuquerque, N.M., step up efforts to restore a fair workweek and achieve other improvements for workers.
Members of TU, the union of T-Mobile workers, the Communications Workers of America and many organizations, including the Center for Popular Democracy, OLÉ and other coalition partners, have been raising concerns about unfair scheduling and other issues for workers at T-Mobile US and other employers. Workers want a voice in the decisions that affect them in their workplace — not just the ones that the company selectively picks and chooses. That’s why T-Mobile US workers are joining TU.
T-Mobile US’s initial scheduling changes were made just as the Albuquerque City Council was moving forward to consider a proposal to implement paid sick leave and scheduling improvements. The Albuquerque coalition hosted a town hall meeting on irregular scheduling, where Albuquerque City Council members pledged to support their fight for a fair workweek including the right to take sick leave without retaliation.
A recent National Labor Relations Board (NLRB) decision found T-Mobile guilty of engaging in illegal employment policies that prevented workers from even talking to each other about problems on the job. The judge ordered the company to rescind those policies and inform all 46,000 employees about the verdict.
Parental leave is a good first step toward helping workers balance their career and family responsibilities. But workers want real bargaining rights and the right to fairly choose union representation. That’s what T-Mobile must realize.
Source: The New Mexico Political Report
LA Joins NYC, Chicago in Push to Naturalize Permanent Residents
89.3 KPCC - September 17, 2014, by Josie Huang - Mayor Eric Garcetti has joined a new campaign that encourages the...
89.3 KPCC - September 17, 2014, by Josie Huang - Mayor Eric Garcetti has joined a new campaign that encourages the estimated 390,000 legal permanent residents in Los Angeles to become citizens for their own benefit — and the city's.
The “Cities for Citizenship" project, funded by $1.1 billion from corporate partner Citigroup, is also kicking off in New York and Chicago.
In Los Angeles, a quarter-million dollar allocation will go toward introducing financial literacy to citizenship classes at city libraries, said Linda Lopez, chief of the Mayor's Office of Immigrant Affairs. The cost of applying for citizenship — $680 — is prohibitive for many, and Lopez said new curriculum will teach students about saving for the naturalization process, as well as other aspects of their lives.
The new initiative will also help fund citizenship drives at community centers and outreach to employers in sectors with high concentrations of permanent residents, such as hospitality, health care and technology, Lopez said.
Lopez said the city is eager to boost civic engagement among its residents.
"Naturalization really offers the opportunity to participate in local and community affairs either through voting and different advocacy work," Lopez said. Cities also benefit financially when residents naturalize, said Andrew Friedman of the non-profit Center for Popular Democracy which has partnered with the cities.
He said studies have shown that citizens earn 8 to 11 percent more than permanent residents.
"Some of it has to do with more job opportunities, a higher degree of comfort on the part of employers," he said. "Folks are also able to access higher-paying industry jobs than they might as legal permanent residents though they have work authorization.
The center co-authored a report with the University of Southern California and The National Partnership for New Americans that found if half of those eligible sought citizenship, as much as $3 billion could flow to the L.A. economy over 10 years. Financial giant Citigroup said in a statement it wanted to help immigrant families see "direct economic benefits."
Citi's Global Director of Community Development Bob Annibale said: "Citi believes that citizenship is an asset that enables low-income immigrants to gain financial capability, and building a national identity must go hand-in-hand with building a financial identity."
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Report: $15 Chicago Minimum Wage Would Lift Up Struggling Workers
Progress Illinois - May 27, 2014, by Ellyn Fortino - A proposal to hike Chicago's minimum wage to $15 an hour would not...
Progress Illinois - May 27, 2014, by Ellyn Fortino - A proposal to hike Chicago's minimum wage to $15 an hour would not only be a boon for many low-wage workers but also the city's economy, according to a new report by the Center for Popular Democracy.
"Raising the minimum wage to $15 an hour would promote economic stability among Chicago workers, economic vitality in their neighborhoods and economic growth throughout this city," said Connie Razza, director of strategic research at the center, which works both locally and nationally to build "the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial and economic justice agenda."
The new report comes ahead of Wednesday's Chicago City Council meeting, during which aldermen with the Progressive Reform Caucus plan to introduce an ordinance for a citywide hourly minimum wage of $15 an hour. The ordinance was developed with members of Raise Chicago, a coalition of community and labor groups advocating for a higher hourly wage floor in the city. Chicago's current minimum wage is $8.25 an hour, the same as the base hourly wage in Illinois and $1 more than the federal level.
Under the proposed ordinance, large companies in Chicago making at least $50 million annually would have one year to phase in a $15 minimum hourly wage, including for workers at their subsidiaries and franchise locations, according to Raise Chicago. Small and mid-sized businesses would have slightly more than five years to boost their employees' wages to $15 an hour.
The first phase of the proposed ordinance, which would apply to larger firms, would increase the wages for 22 percent of Chicago workers, or 229,000 people, according to the report. Phase one would generate nearly $1.5 billion in new gross wages annually, or $1.1 billion after deductions. During the first stage of the proposed ordinance, the higher employee wages would mean an estimated $616 million in new economic activity across the region, leading to the creation of 5,350 new jobs, the report showed. A $15 hourly wage for workers employed by large businesses in the city would also provide approximately $45 million in new sales tax revenue.
Increased wages for workers could also lower employee turnover costs for businesses, according to the report. Requiring Chicago employers with annual gross revenues of $50 million or greater to pay their workers at least $15 an hour would reduce labor turnover in the workforce by as much as 80 percent per year.
However, larger firms covered under the proposed ordinance could see their overall employer costs increase by up to 4 percent, according to the report's estimations. As a result, affected firms may raise consumer prices by about 2 percent. Such a price hike would translate into an $0.08 increase for a $4 hamburger, the report noted.
Ald. Roderick Sawyer (6th), who intends to co-sponsor the ordinance, said he expects about 10 out of the 50 Chicago aldermen to initially sign on to the legislation.
"The push then would be to get others to join with us in this cause, because it's important," the alderman said. "We should have talked about this many, many years ago, and had (the minimum wage) kept up with inflation, we might not be having this conversation right now. ... I'm hoping that our colleagues will see that this is not a job killer."
Sawyer said there is no specific date planned for when the proposal could go up for a full city council vote.
It is the alderman's hope that Chicago Mayor Rahm Emanuel's recently-formed minimum wage task force will consider the $15 minimum wage proposal. Emanuel has asked members on the diverse committee, chaired by Ald. Will Burns (4th) and the Sargent Shriver National Center on Poverty Law's President John Bouman, to craft a plan to increase the wages for hourly minimum wage and tipped workers in the city.
"I understand the interest in forming this committee," Sawyer said. "I don't think it's necessary because a proposed ordinance is ready to be submitted tomorrow. But now that the committee has been talked about, this [$15 minimum wage ordinance] is the first thing they can look at."
Sawyer and other backers of a $15 minimum wage are "open to listening to any and all suggestions" about the proposed ordinance, the alderman said. Sawyer also noted that Chicagoans are in favor of a $15 minimum wage.
During the March primary election, Chicago voters overwhelming supported a non-binding ballot referendum to increase the city's minimum wage to $15 an hour for employees of companies with annual revenues over $50 million. The referendum appeared on the ballot in 103 city precincts, garnering support from 87 percent of voters.
Katelyn Johnson, executive director of Action Now, which is involved with the Raise Chicago campaign, said the city's strong public support of a $15 minimum wage is not surprising.
"We know that people in this city are struggling," she stressed. "The current minimum wage in Illinois is only $8.25 an hour, and that's so low that the workers, and certainly those who are supporting families, simply cannot survive, oftentimes working two or three jobs just to make ends meet and make other major personal sacrifices for themselves and their families.
"The $15 an hour wage will correct that," Johnson added. "It will provide a path out of poverty for families and allow (workers) to meet their families' basic needs so they no longer have to rely on food stamps or other public assistance. And in addition, it will stimulate the city's economy."
A total of 900,000 people work in Chicago, and 329,000 of them make less than $15 an hour, according to the report. Blacks and Latinos are disproportionately represented among low-wage workers in the city.
Blacks and Latinos make up 23.6 percent and 26.8 percent of the share of all Chicago workers, respectively. However, 28 percent of low-wage earners in the city are black and 42.4 percent are Latino. Low-wage workers who live in the city are concentrated in the Chicago neighborhoods of Austin, Avondale, Bridgeport and McKinley Park, among other areas.
"This geographic concentration of residents earning low wages means that an increase in the minimum wage will offer larger benefits to certain neighborhoods, while also stimulating the citywide economy," the report reads.
Meanwhile, Chicago aldermen are up for re-election next year, and Sawyer said those who co-sponsor the $15 minimum wage ordinance might see more support from voters at the polls.
"I think in my community, (supporting a $15 an hour minimum wage) plays better. People that try to live off of minimum wage understand that it needs to be raised, so those [aldermen] that have people that can understand that will obviously fare better," Sawyer said. "Maybe some in more affluent wards, it many not play as well, but even those there can understand the economic impact."
People who "have more disposable income, they spend it," the alderman continued. "And if you have more disposable income and you spend it, that means the money is circulating in those individual communities. Sales taxes are paid. That means we can get more revenue to do things: Pay down debt, infrastructure improvements, capital improvements."
Over the next few months, Raise Chicago members and others plan to take part in a number of activities to build community support for a $15 Chicago minimum wage and "put pressure on elected officials to carry out the will of the people," Johnson said.
When asked if Chicagoans can expect to see more public protests concerning the minimum wage, Johnson said, "We'll see."
Be sure to check back with Progress Illinois for our coverage of Wednesday's Chicago City Council meeting.
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8 days ago
8 days ago