‘School Choice’ Mantra Masks the Harm of Siphoning Funds from Public Education
Ask an education “reform” proponent about any issue facing public education and the answer is always the same: “school...
Ask an education “reform” proponent about any issue facing public education and the answer is always the same: “school choice.” Whether they’re championing charter schools, vouchers or Education Savings Accounts (ESAs), advocates prefer to frame the debate around the right of parents to send their child to a better-performing school. This is merely a smokescreen to divert attention away from what school choice is really about: the transfer of public money to the private sector without accountability or transparency.
Many school choice campaigns are bankrolled by a faction of incredibly wealthy conservative donors and political groups, including the Koch Brothers and the American Legislative Exchange Council (better known as ALEC). Their agenda is clear: dismantle public education.
But it’s a safe bet you won’t hear their names during National School Choice Week (Jan 25-30). What you will hear is a lot of people parroting messages about “freedom,” “innovation,” “options,” even “civil rights” – buzzwords that underpin the campaigns to expand charter schools, vouchers and ESAs across the country. But the jargon masks the devastating impact these policies have had on public education, particularly on those students who are supposed to benefit the most.
Unaccountable Charter Schools: The Truth Hurts
Many people support the idea behind charter schools, but how many are aware of the mounting troubles the charter industry has experienced lately? Probably not enough. Proponents work very, very hard to maintain a facade of success and transparency in the face of evidence that many of these schools operate without any oversight, while wasting taxpayer money and fostering inequity and racial segregation.
Take the North Carolina State Board of Education, which just this month rejected the Department of Public Instruction’s annual report on charter schools as “too negative.” Dominated by school privatization stalwarts, the board is determined to prevent any meaningful oversight of the state’s charters and demanded revisions to the report before it could be submitted to the legislature.
North Carolina educator Stuart Egan took the board to task in an open letter to Lt. Governor and board member Dan Forrest: “Overall, charter schools seem to lack diversity and operate under a different set of rules according to the report you are trying to squelch. The fact is that many of the charter schools you have enabled are perpetuating segregation and are not accomplishing what you advertised they would do,” Egan wrote.
Given the magnitude of waste and fraud in the sector, it’s unsurprising why many charter operators are hiding from accountability and regulation. And according to a new study, the expansion of unregulated charter schools, particularly in urban communities, is beginning to resemble the effort a decade ago to pump up bad mortgages that eventually blew up the economy.
“Supporters of charter schools are using their popularity in Black, urban communities to push for states to remove their charter cap restrictions and to allow multiple authorizers,” Preston Green III of the University of Connecticut and co-author of “Are We Heading Toward a Charter School ‘Bubble’?: Lessons from the Subprime Mortgage Crisis” told EduShyster. “At the same time, private investors are lobbying states to change their rules to encourage charter school growth. The combination of multiple authorizers and a lack of oversight is creating an abundance of poor-performing schools in low-income communities.”
Vouchers: Who Is Really Benefitting?
According to the 2015 PDK/Gallup poll, a whopping 70 percent of Americans oppose school vouchers. They see it for what it is: a privatization scheme that subsidizes tuition for students in private schools. And perhaps they are aware that there is no conclusive evidence that vouchers improve student achievement. The public is also not fooled by the often-repeated falsehood that vouchers are primarily benefitting disadvantaged students.
In Scott Walker’s Wisconsin and Mike Pence’s Indiana, where vouchers have expanded dramatically, promises that the programs would serve low-income students in failing schools didn’t last. “That tale quickly and methodically changed,” said Teresa Meredith, president of the Indiana State Teachers Association. By 2015, only 2 percent of participants [in the voucher program] had attended an ‘F’ public school.
“The most expansive voucher program in America has become an entitlement program which, in large part, now benefits middle class families who always intended to send their children to private (mostly religious) schools and taxpayers are footing the growing bill,” Meredith said.
Education Savings Accounts (or Vouchers on Steroids)
In 2015, Nevada lawmakers were hoping to blaze a new trail for school choice with a new gambit, education savings accounts (ESA), which allow parents to claim more than $5,000 in state funds each year and use it for any qualified education expense. This includes religious-based private schools, but also a variety of other services, all with little or no oversight over student outcomes. In addition, states impose no quality controls on the textbooks, curriculum, tutoring, or supplemental materials that parents can purchase with ESA funds.
Education savings accounts exist in five states, but Nevada became the first to pass a bill that offered them to every public school student regardless of family income. Very few private schools in the state, however, have tuition low enough to be covered by the $5,100 or $5,700 provided annually by ESAs. Wealthier parents can supplement their own income to pay for the tuition, but for lower-income families private school will remain largely out-of-reach.
Earlier this month, a state judge slapped an injunction on the program. In his ruling, District Judge James Wilson said the law diverted public funds to pay for private school tuition and was therefore unconstitutional. The decision will be appealed because advocates have vested a lot in the scheme. ESAs are unquestionably the new school choice battleground and are being pushed in a growing number of states with proponents deploying the usual tropes about “freedom” and “flexibility” to mask their real impact: erosion of public school funding, fewer education resources, wider achievement gaps and increased segregation.
Real Innovation That Works
The good news is that a growing number of communities are finding solutions to struggling schools and achievement gaps that benefit all students, not just some. Educators and parents are working together to expand the community schools model, which is currently present in nearly 5,000 schools nationwide. When public schools extend services and programs beyond the school day, creating strong learning cultures and safe and supportive environments for both students and educators—in effect becoming community “hubs” – student outcomes improve. In 2015, Minnesota educators were instrumental in persuading the legislature to pass a bill creating a grant program for “Full-Service” Community Schools and other states may soon follow suit. To learn more about community schools, read “Investing in What Works” by the Southern Education Foundation and the Annenberg Institute for School Reform.
Source: NEA Today
Blackstone and JPMorgan CEOs still under pressure over Trump
Blackstone and JPMorgan CEOs still under pressure over Trump
Trump's business advisory councils have been dissolved. But protestors aren't done yet with JPMorgan CEO Jamie Dimon...
Trump's business advisory councils have been dissolved. But protestors aren't done yet with JPMorgan CEO Jamie Dimon and Blackstone CEO Stephen Schwarzman.
Read the full article here.
New York Fed Names John Williams President, Bucking Calls for Diversity
New York Fed Names John Williams President, Bucking Calls for Diversity
Progressive groups seized on Mr. Dudley’s retirement as a rare opportunity to influence an economic policy appointment...
Progressive groups seized on Mr. Dudley’s retirement as a rare opportunity to influence an economic policy appointment that is outside Mr. Trump’s control. Protesters marched on the bank’s Lower Manhattan headquarters last month to demand a president who would represent working people. In a statement Tuesday, the Fed Up campaign, a progressive group, criticized the New York Fed’s board for “ignoring the demands of the public and choosing yet another white man whose record on Wall Street regulation and full employment raises serious questions.” The group said the search process “calls into question whether the Federal Reserve can be trusted to act in the public interest.
Read the full article here.
The Perils of Ever-Changing Work Schedules Extend to Children’s Well-Being
Abercrombie & Fitch announced last week that it would stop requiring workers to be on call for shifts that could be...
Abercrombie & Fitch announced last week that it would stop requiring workers to be on call for shifts that could be canceled with little notice, making it the latest retailer to pull back from such scheduling practices.
Williams-Sonoma ended on-call shifts in the last several months, while Gap has scaled back the practice ahead of a study it has commissioned on scheduling. Last year, Starbucks announced that it was bringing more “stability and consistency” to its employees’ hours after an article in The New York Times highlighted the company’s habit of giving workers little advance notice on their schedules and requiring some to close and open stores in consecutive shifts, known as “clopening.”
Although the workers directly affected by unpredictable schedules are the most obvious winners, the biggest beneficiaries of a change in the practice could be their children.
A growing body of research suggests that children’s language and problem-solving skills may suffer as a result of their parents’ problematic schedules, and that they may be more likely than other children to smoke and drink when they are older.
“Young children and adolescents of parents working unpredictable schedules or outside standard daytime working hours are more likely to have inferior cognitive and behavioral outcomes,” the Economic Policy Institute, a liberal advocacy group, said last week in a report.
Last year, two Democratic representatives introduced the Schedules That Work Act, which would require employers to give workers more say about their hours and provide them with incentives to encourage more stable schedules.
“We are all talking about this today,” said Representative Rosa DeLauro, Democrat of Connecticut, who is one of the bill’s lead sponsors. “Five years ago, it was an issue people would have brushed to the corner.” The bill has 69 co-sponsors; two Democrats also introduced companion legislation in the Senate.
Among the needs that policy makers and activists working on the issue identify is finding stable, professional child care on a schedule that shifts from week to week.
“The arrangements families put together are usually ad hoc,” Ms. DeLauro said. “They have to rely on other family members, friends. If something breaks down in that chain, they have a problem.”
While all shifting schedules pose a challenge in this regard, on-call work may be unique in the way it complicates child care arrangements.
Kris Buchmann of Albuquerque worked a retail job at a local mall when her son, now 3 ½, was about 1 year old. She said she was frequently scheduled for on-call shifts that never materialized or that lasted less than an hour when they did.
“I still had to pay a babysitter,” said Ms. Buchmann, who is active in a New Mexico organizing group called Organizers in the Land of Enchantment, or OLÉ. “Sometimes I would have to go pick her up, take her back to my house because she didn’t have transportation, drive to work, get sent home, still have to pay her, and drive her home.”
When Ms. Buchmann demanded a more stable schedule, her employer refused, an experience that is not uncommon. After that, she left the job.
As practices like unpredictable scheduling have proliferated in recent years, fed by a shift toward lean staffing models made possible by sophisticated software, they have attracted public criticism.
In a nationwide New York Times/CBS News poll in May, 72 percent of Americans favored requiring chain stores to provide at least two weeks’ notice for any change in schedule, or else compensate workers with extra pay.
Regulators have also taken notice. In April, the office of the New York State attorney general sent letters to 13 retailers, questioning their use of on-call shifts. The letters, which were first reported by The Wall Street Journal, said retailers were providing workers with “too little time to make arrangements for family needs, let alone to find an alternative source of income to compensate for the lost pay.”
Several companies that received letters from the New York attorney general have denied that they use on-call scheduling for low-wage workers, or that it is common in their stores. Some retailers say that only a small fraction of their workers who have been on unpredictable schedules care for children.
“Very few of our store associates are working parents,” said Michael Scheiner, a spokesman for Abercrombie & Fitch, which was among the letter’s recipients.
But the problem appears to be widespread. A 2012 study of nonfood retail workers in New York City by Stephanie Luce of the City University of New York and by the Retail Action Project, a workers’ advocacy group, found that more than half of the surveyed workers who cared for others, like children or elderly family members, had to make themselves available for last-minute shifts.
Because the practice is relatively new, however, scholars must infer its likely impact from research over the last decade showing the effects on children of parents working nonstandard hours, including night shifts, that have been more common for years.
In one of the most respected studies, published in 2005 in the journal Child Development, Prof. Wen-Jui Han of New York University looked at children during their first three years of life, controlling for such demographic variables as their mothers’ income, education, and race and ethnicity.
Professor Han, who was then at Columbia University, found that children of mothers who worked nonstandard schedules performed lower on problem-solving, verbal comprehension and spoken language tests than children of mothers who worked traditional schedules. Part of the explanation, she concluded, was increased stress on the part of the parents.
“Parents try their best to attend to their children in a sensitive and warm manner, but the physical and emotional exhaustion from nonstandard schedules makes it difficult,” Professor Han said in an interview. “With young children, if they’re crying, asking for food, asking for something, it’s all about how you interact with them.”
Another key issue, she found, was access to quality child care. Children whose mothers worked nonstandard schedules during their first year of life were significantly less likely to be enrolled in professional day care centers throughout early childhood. This type of child care setting, she noted in the paper, tends to be associated with better cognitive development than informal arrangements like relying on extended family members, a frequent alternative.
As for adolescents, Professor Han and two colleagues published a second paper, in the journal Developmental Psychology in 2010, which said that the longer mothers worked odd hours, the more likely their children were to smoke, drink, act out and engage in sexual activity.
The specific effect of on-call work and other frequently changing schedules — as opposed to work hours that fall outside the traditional workday — is only beginning to be studied, but social scientists worry that it has similar implications for children.
In a study of female workers at a large clothing retailer published last year in the Industrial & Labor Relations Review, Julia R. Henly and Susan J. Lambert of the University of Chicago found that the unpredictability of the workers’ schedules was related to higher stress and difficulties juggling work and family demands.
While the study did not examine the way this affected children, Dr. Henly suggested that the challenges posed by unpredictable work hours could take a toll on children as well. She also predicted that mothers with constantly changing work schedules would be less likely to enroll their children in preschool and other high-quality child care facilities.
“Some amount of early childhood education is important,” she said. “But it’s impossible to take advantage of those opportunities if you have a schedule that doesn’t allow you to get your kid there.”
According to Carrie Gleason of the Center for Popular Democracy, a nonprofit organization that helps community groups organize, such complications may explain why there appear to be fewer parents who work on-call shifts.
“A lot of times we find that they don’t last very long,” she said. “It’s absolutely impossible for working parents to meet their responsibilities to their families and hold down a job at a company with on-call shifts.”
Still, even parents who don’t work on-call jobs often have little advance notice of their schedules. In many companies that officially promise to make schedules available in advance, Ms. Gleason said, “managers edit the schedule up until the hours someone is supposed to come in.”
Correction: August 14, 2015
Because of an editing error, an article on Thursday about the effects on children of their parents’ unpredictable work schedules misstated part of the name of a group in which Kris Buchmann, who left a retail job because of the difficulties in arranging child care, is active. It is Organizers in the Land of Enchantment, not Organizers in the Land of Enrichment.
Source: New York Times
It’s Time to Reimagine Safety and Security in Our Communities
It’s Time to Reimagine Safety and Security in Our Communities
The over-policing and mass criminalization of Black and brown people is the moral crisis of our time. The United States...
The over-policing and mass criminalization of Black and brown people is the moral crisis of our time.
The United States has the world’s largest incarcerated population with approximately 2.2 million people currently behind prisons and jails (21 percent of the world’s prisoners) while several police departments across the country are under investigation for charges of police brutality, gross misconduct and civil rights violations.
Read the full article here.
The High Cost of Policing
The High Cost of Policing
To the Editor: “Crime Is Falling, but Police Levels Remain Robust” (news article, Jan. 8) raises important questions...
To the Editor:
“Crime Is Falling, but Police Levels Remain Robust” (news article, Jan. 8) raises important questions about the need to keep expanding police forces as crime falls. The United States spends a staggering $100 billion on policing a year. It also comes with serious trade-offs for municipalities short of cash.
Read the full letter here.
Franken scandal haunts Gillibrand’s 2020 chances
Franken scandal haunts Gillibrand’s 2020 chances
Today, nearly a year after Gillibrand led the charge in calling for Franken’s resignation, the anger is fresh on the...
Today, nearly a year after Gillibrand led the charge in calling for Franken’s resignation, the anger is fresh on the minds of major donors across the country...Ana Maria Archila, co-executive director for the Center for Popular Democracy, called Gillibrand’s response “important and courageous.” “It probably made her more enemies than friends,” said Archila, who famously confronted Sen. Jeff Flake (R-Ariz.) in a congressional elevator this summer during the Kavanaugh hearings.
Read the full article here.
Fed Up With Being Shut Out of Federal Reserve, Activists Descend on Summit
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike...
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike would slow the economy and harm those for whom the so-called "recovery" has been weakest, including poor people, women, and communities of color.Instead, the coalition is calling on the Fed to ditch those plans and give vulnerable communities, including "tens of millions of Black Americans who are still struggling," a say in economic policy.
Fed officials have for months signaled an intent to raise short-term interest rates—which were slashed to zero in 2008 in an effort to spur spending and investment—as soon as this fall or winter. As the Washington Post reported Thursday, reported wage growth "combined with the strong hiring and a rapidly falling unemployment rate, gave the Fed hope that the economy would be able to withstand the first rate hike in nearly a decade by the end of the year."
But recent volatility in stock markets in the U.S. and globally, as well as internal policy disagreements, are leading some economic observers to predict that the Fed may now beless likely to set a rate hike at its September meeting.
Regardless, the Fed Up campaign—anchored at the Center for Popular Democracy and supported by 25 groups including the Economic Policy Institute, Demos, and the AFL-CIO—says raising interest rates would be foolhardy.
And they're in Wyoming to make that view known. According to the Huffington Post, "Fed Up's member organizations brought over 100 primarily low-income grassroots activists from across the country for the gathering. It's a dramatic increase from its inaugural visit to Jackson Hole last year, when the campaign brought a group of 10 activists."
As Sam Ross-Brown wrote at the American Prospect this month, "Fed Up's goal is a more 'pro-worker' Federal Reserve, and their first step is stopping the Fed from hiking interest rates before wages and employment have a chance to catch up with the recovery. Building on a similar action last year, the coalition began circulating a petition this week demanding the Fed keep rates low until wages and employment rise."
"There is no data supporting the Fed's push for higher interest rates," said Ady Barkan, campaign director for Fed Up. "While they toy with halting the recovery, there is a crisis of stagnant wages and a lack of good jobs."
According to Whose Recovery? A National Convening on Inequality, Race, and the Federal Reserve—the Fed Up Coalition's policy agenda for three days of teach-ins and workshops in Jackson Hole—a rate hike would slow down the economy so that there are fewer new jobs and workers have less power to negotiate raises.
"By raising interest rates, the Federal Reserve will make it more expensive for us to pay our credit card, student loan, car, and mortgage payments," the Fed Up campaign says. "That means we will have less money in our pockets to buy the goods and services we need. And that will have a terrible ripple effect throughout the economy: businesses will earn less revenue, so they will lay off workers (or avoid hiring new workers) and they won’t be able or willing to give workers any raises. With bad job prospects and stagnant wages, working families won’t earn enough to buy the goods and services they need, which starts the whole cycle again."
"If this sounds like a terrible idea," the coalition continues, "that's because it is."
The Fed Up perspective is supported by economist Joseph Stiglitz, who spoke alongside the grassroots activists at an event on Thursday. The same day, Stiglitz wrote in an LA Timesop-ed:
It is hard to see why the Fed would choose slower job and wage growth for most Americans just to protect against the theoretical risk of moderately higher inflation. But, then again, it's often hard to understand the Fed's policy choices, which tend to contribute to widening inequality in the United States.
Too often, after the end of one recession, the Fed, fearing inflation, has used monetary policy to dampen the economic expansion. Its maneuvers keep inflation low but unemployment higher than it otherwise would be, negatively affecting all workers, not just those out of a job. Workers in jobs face greater stresses, downward pressure on wages and diminished opportunities for upward career mobility. The costs of higher unemployment are borne disproportionately by people in lower-income jobs, who also tend to be disproportionately people of color and women.
Beyond the particulars of interest rates and inflation, however, the Fed Up Coalition iscalling for the central bank to facilitate more robust public engagement and greater transparency, given its position as "arguably the nation's most powerful economic actor."
"For far too long, our communities have been isolated from the Federal Reserve’s policy choices," the coalition writes in Whose Recovery? "Monetary policy has been left up to the bankers and the economists, with the public largely shut out and confounded by its seeming complexity."
Unsurprisingly, the document continues, "[t]he consequences of this disengagement have been profound. For the past 45 years, with only a few exceptions, the Federal Reserve has set policy that benefits banks and harms borrowers, helps employers and hurts workers, and privileges the voices and needs of corporate elites rather than those of America's working families."
Source: CommonDreams
Florence District One Candidate Questionnaire: Alexis D. Pipkins, Sr.
Florence District One Candidate Questionnaire: Alexis D. Pipkins, Sr.
The Morning News recently sent out a questionnaire to the candidates running for the Florence School District One Board...
The Morning News recently sent out a questionnaire to the candidates running for the Florence School District One Board of Trustees. Here are the answers from Alexis D. Pipkins, Sr. who is running for another term representing District 4; he faces one challenger.
1. What do you feel you have contributed during your current tenure on the board?
My background as a lifelong resident of the Florence Community, and working closely within the region has given me a clear sense of both the educational and economic issues and needs that we face. Over the past 15 years, as a member of the Florence School District 1 Board of Trustees, I have ensured that I have been knowledgeable of the issues, needs, and concerns of my constituents, and I have represented and I have been a voice even during turbulent of challenges. Further, I understand that leadership must be politically astute to represent the views and concerns of those you represent even though others may not agree, or do not care, and only want to advance their own agenda that is only best for “their community” and not all communities. I have attained the Level 6 on the SCSBA, which is the highest level for a school board member, and presently I serve as the President of the SC Caucus of Black School Board Members which provides dialogue on educational issues and concerns to address the full growth and development of Black and other minority children, and I am also affiliated with the National Local Progress Movement which focuses on progressive thought and insight for local officials
2. What are the issues that you think need to be addressed?
Student achievement, and recognizing the individuality and creativity of each student’s needs
Recognizing that the public schools are becoming more diverse
Equity in funding for all schools
Special Education
Technology infusion and integration for all students
Early Childhood
Career Clusters and Pathways- which is more opportunities for expansion of vocational and career center programs
Funding throughout the district
Special Education and meeting the diverse needs of students, to include the increase diagnosis of Autism
Impact of poverty, mental health, and other risk factors have on today’s learners
Lack of teachers
New and innovative approaches to teacher development and recruitment in order to develop and retain a diverse, qualified, and effective 21st Century pool of educators and staff
3. How have you sought to make changes in those areas?
By asking for items to be placed on the agenda, and engaging staff and others throughout the state and country on best practices and promising practices to ensure that we are utilizing the best program for all of our children. Also, researching the issues and knowing the national agenda. I have always committed myself to being engaged and welcoming to constituents and having a listening ear to see what the children are saying and feeling. As an educator and advocate for children and families, I always empathize and evaluate how I would feel when making decisions and question if policies or procedures that are guiding discussion or the direction of the Board are relevant today. I have demonstrated that my approach to knowing what the educational needs and issues are not based on perception or a one way train rail.
4. What specific program are you most proud of in FSD1 and why?
Small Learning Communities at our schools to decrease class sizes
Implementation of the Parents As Teachers Program to address 0-3, to provide parents with skills and supports to ensure that their children are ready to enter school
Montessori which provides learners the opportunity to be creative
Career and Technology which provides students the opportunity to enter the work place upon graduation
The work that was done by the previous Discipline Code Committees which has ensured the district recognized inequalities and unfair discipline practices and the underutilization and non-utilization of support services for students with complex needs and behaviors. This dialogue that I led was the foundation for the present Code of Conduct which will have to be assessed over the next few years to evaluate its effectiveness and impact on student learning and behavior.
Early College which provides students the opportunity to receive college credit and even an Associate Degree when they graduate from high school
Present dialogue on a Middle School Concept that has been talked about for years
5. How do you handle inquiries and complaints from the community?
I refer families to the Superintendent’s Office or to the appropriate office for support. I also follow-up with families and community that approach me to ensure that their complaints and inquires have been addressed. I also request items be placed on the agenda for discussion and action.
6. What do you think the role of the board is, in the district and in the community?
The board is responsible for establishing the Vision and Mission for the local school district, and ensuring that the Superintendent has the resources to implement the vision by having good policies and procedures, and good stewards of the district’s Operational Funds and Capital or Building Funds. This role must be student centered and family centered by recognizing the diverse needs of students within our community. Not all students learn in the same manner, thus the board must be aware of such and hold the administration accountable for creating programs and services which will help students achieve and be successful. It is the job of the board to be knowledgeable, and current on educational issues and trends, and not just be a “rubber stamping board” but ask questions, communicate with the public- and not just those who share your personal beliefs and positions.
7. What are your past/other areas of service? (church, civic organizations, etc.)
Professional:
I am an advocate, teacher, educator, trainer, and servant-leader. Presently, I am employed as the Executive Director of Lee County First Steps, and the Lee County Adult Education Family Literacy Coordinator.
Educational attainments include:
1990 graduate of the historic Wilson High School
Bachelor of Arts Degree in Political Science and a concentration in Secondary Education Graduate from Winthrop University
Master of Arts Degree in Management from Webster University
Education Specialist Degree Specialization in Leadership in Educational Administration from Capella University
Completion of the Non Profit Leadership Institute from Francis Marion University
Completion of the Francis Marion Rural Leadership Institute
Church:
My faith walk began at my home church, Snow Hill Baptist Church where I was active during my youth, and I was licensed to preach at Maxwell Baptist Church where I was Sunday School Teacher, Sunday School Superintendent, Minister of Christian Education and Membership Services, Boys Scout Troop Master. Presently I am a member and ordained Elder of the Gospel (2010) and serve as an Associate Minister and have served as a Youth Advisor at the Greater Gethsemane Apostolic Church in Florence, South Carolina.
Past and Present Civic:
Gate City Masonic Lodge 276
Florence 1 Local Education Association (SCEA) Treasurer, President
Weed and Seed Steering Committee
Queenie’s Helping Hands Ministry
Angel Tree Prison Ministry
The School Foundation Board
Pee Dee International Festival Planning Committee
PTA (North Vista Elementary, Williams Middle School)
PTSA (Wilson High School)
By Melissa Rollins
Source
Wall Street, Main Street, and Martin Luther King Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full Employment Mandate
Executive Summary The story of the economic recovery varies dramatically depending on where it is being told. On...
The story of the economic recovery varies dramatically depending on where it is being told. On Wall Street, big banks look stronger, bigger, and healthier than ever. Large companies are making record profits. But, the labor market remains weak. Although the economy has added more jobs in recent months, job growth on Main Street is not nearly as robust as during previous recoveries.[i] Unemployment rates in nearly every state remain above pre-recession levels. Wages have been stagnant or falling for most workers and the quality of jobs has decreased significantly. Main Street still has no clear route to prosperity.
Dowload the report now.
Many communities are disproportionately struggling in this economy. The Latino unemployment rate is more than 2 percent higher than the rate for whites, and Latino wages and wealth are considerably lower than whites. Women continue to earn substantially less than men. This paper focuses on the economic disparities facing the African-American community in particular because the economic crisis is most acute there: African-American unemployment rates continue to exceed the national unemployment rates at the height of the recession, Black workers’ wages have dropped $0.44 over the past 15 years, though Latino and white wages have risen by $0.48 and $0.45, respectively; unemployment rates among African Americans are higher than those of other racial or ethnic groups; and, though Latino and white wealth has stabilized since the Great Recession, Black wealth continues to shrink. So, while Main Street may be stabilizing (albeit at a lower standard), the recovery has yet to reach Martin Luther King Boulevard. Creating a strong American economy must include prioritizing a genuine recovery for the African American community.
This joint report of the Center for Popular Democracy and the Economic Policy Institute examines the current state of the American economy and labor market, with particular attention to racial inequality and its contours before, during, and in aftermath of the Great Recession. It describes the role that federal monetary policy has played in exacerbating economic disparities over recent decades -- the shrinking national income share for working America and the exploding income and wealth gaps between the top 1 percent and the rest of us. The paper further explores the consequences of the major policy decision currently facing the Federal Reserve (or the Fed): whether to prioritize genuine full employment or to avoid inflation at the cost of robust employment and wage gains. Only by pursuing genuine full employment will the Fed ensure that the recovery reaches Main Street and Martin Luther King Boulevard – and communities of working people throughout the country. As the Fed makes crucial monetary policy decisions in the months and years to come, it must ensure that all communities can share in the prosperity of a functional economy.
The report also studies the decision-making processes and bodies of the Federal Reserve. Although the Board members that govern the regional Federal Reserve banks are legally required to represent the broad interests of the public, they are, in fact, predominantly representatives of the financial sector or large corporations. Without governance that represents the full diversity of the public, Fed decisions risk remaining uninformed by the full economic reality they create, as experienced in communities throughout the country. The Federal Reserve’s focus over the past 35 years has been on price stability, or tamping down inflation. While this focus is good for Wall Street, it has resulted in wage stagnation for most workers on Main Street. The cost of this focus has been slow recoveries in labor markets after each downturn. America needs the Federal Reserve to concentrate on labor market stability and insure that wages are rising with productivity, so that workers reap the benefits from their efficiencies and hard work; that means prioritizing a wage growth target, rather than inflation. A Federal Reserve dominated by banks and major corporations will produce an economy that works for them, at the risk of leaving tens of millions of working families – particularly Black working families – with little hope of a better life.
The report recommends that the Fed:
Create a Strong & Fair Economy
Stimulate Good Jobs for All: The Federal Reserve should commit to building a full employment economy. It should keep interest rates low so that the numbers job openings and job seekers are balanced and everybody who wants to can find a good job.
Invest in the Real Economy: The Fed should use its existing legal authority to provide low- and zero-interest loans so that cities and states can invest in public works projects like renewable energy generation, public transit, and affordable housing that will create good new jobs.
Research for the Public Good: The Fed should study the harmful effects of inequality and examine how policies like raising the minimum wage and guaranteeing a fair workweek can strengthen the economy and expand the middle class.
Create a More Transparent & Democratic Federal Reserve
Ensure That Working Families’ Voices Are Heard: Fed officials should regularly meet with working families and community leaders, not just business executives, in order to get a more accurate picture of how the economy is working.
Represent the Public: In regional banks around the country, Fed leaders come overwhelmingly from financial institutions and major corporations. The Fed should appoint genuine representatives of the public interest to these governance positions.
Create a Legitimate Process for Selecting Fed Presidents: In late 2015 and early 2016, the regional Fed banks will select their next presidents, who will serve five year terms. Currently, the process for selecting those presidents is completely opaque and involves no public input. That needs to change, so that the public has a real role in the selection process.
Dowload the report now.
[i] Dean Baker, “257,000 Jobs Are Great, but Those Wall Street Boys Are Really Smart” (blog post), Center for Economic and Policy Research, February 6, 2015, http://www.cepr.net/index.php/blogs/beat-the-press/257000-jobs-are-great....
Last Updated April 21, 2015.
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