The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a...
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a politician has for creating jobs and boosting wages, it must contend with the Federal Reserve’s ability to unilaterally counteract it. If the Fed decides higher wages risk inflation, they can raise interest rates and deliberately strangle economic growth, reversing the wage effect. Why come up with ways to grow the economy, then, if the Fed will react by intentionally slowing it?
The reason the Fed operates as a wet blanket on the economy has to do with who really controls the institution. If the desires of bankers and the rich outweigh the desires of laborers, then their fear of inflation (which cuts into their profits) will always take precedence over full employment. Former Fed Chair Ben Bernanke unwittingly gave a perfect example of that yesterday. Talking about how the Fed could institute “helicopter drops” of money to supplement federal spending and jump-start the economy, he stated from the outset, “no responsible government would ever literally drop money from the sky.” Who sets the boundaries of what’s “responsible” matters a great deal here.
To make the central bank work in the public interest rather than the interests of a select few, you must reform the very structure of the Federal Reserve. That’s the purpose of a new proposal from Andrew Levin, an economics professor at Dartmouth College and former advisor to Fed Chairs Ben Bernanke and Janet Yellen. In conjunction with the activist group Fed Up, which advocates for pro-worker policies at the Fed, Levin has devised a framework to make the central bank a fully public institution, with all the transparency and accountability demanded of other government entities.
It’s such an important idea that Warren Gunnels, policy director for Bernie Sanders’ presidential campaign, talked it up yesterday on a conference call with Levin. While stopping short of endorsing taking the Fed public, Gunnels did say, “Senator Sanders believes we need to made the Fed a more democratic institution, responsive to the concerns of all Americans, not a few billionaires on Wall Street.”
Right now, the Fed is a quasi-public, quasi-private hybrid, taking advantage of that status to maintain high levels of secrecy. Members of the Federal Reserve Board of Governors are nominated by the President and confirmed by the Senate, like other federal agencies. But the twelve regional Federal Reserve banks are legally owned by commercial banks in each of those regions. Banks like JPMorgan Chase and Wells Fargo hold stock in these regional banks, which happen to be one of their primary regulators.
This was how central banks worldwide operated at the time of the Fed’s founding, but that has changed. “Every other central bank around the world is fully public,” Professor Levin said, citing the Bank of Canada’s shift in the 1930s and the Bank of England in the 1940s.
Not only does having private banks own a chunk of the Fed raise questions about regulatory supervision, it implicitly privileges banker concerns over the public at large. This is particularly important because the Fed has failed as an institution consistently over the past decade.
First it failed to identify an $8 trillion housing bubble, along with increases in leverage and derivatives exposure that magnified the housing collapse into a larger crisis. Then, it failed to deploy all its policy tools and allowed a slow recovery to take hold that left millions of workers behind, as growth never caught up to its expectations. British economist Simon Wren-Lewis believes the third big mistake is happening now, through premature interest rate hikes to return to “normal” operations. “Central banks are wasting a huge amount of potential resources” by tightening too quickly, Wren-Lewis says. For everyday Americans, that translates into millions more people out of work than necessary.
So Levin’s plan would cash out the banks’ stock, and begin to remove their influence over the Fed. The board of directors of the regional Fed banks, which currently includes commercial bank executives, would be chosen through a representative process with mandates for diversity (no African-American has ever served as a regional Fed president) and a variety of viewpoints. Nobody affiliated with a financial institution overseen by the Fed could serve on any regional board.
These newly elected boards of directors would choose the regional presidents, which have a say on monetary policy decisions. That selection process would include public hearings and feedback. Under the current system, Fed presidents are re-elected through a pro forma process, with no opportunity for public engagement. Four of the 12 regional presidents were formerly executives at Goldman Sachs, and it’s hard to call that a coincidence.
In addition to breaking the conflict of interest inherent in current Fed governance, making the institution public would subject it to disclosure requirements, Freedom of Information Act requests, and external reviews that all other public agencies must submit to. Levin’s proposal calls for an annual Government Accountability Office review of Fed policies and procedures, and would allow the Fed’s inspector general new authority to investigate the regional banks.
The Levin proposal too often makes concessions to preserving central bank “independence,” like preserving the regional structure and giving Fed officials nonrenewable seven-year terms, which seems a little arbitrary. This impulse also led Democrats to reject Sen. Rand Paul’s legislation to audit the Fed earlier this year. The rhetoric of Federal Reserve “independence” conceals an institutional capture that allows it to ignore workers’ needs in favor of the wealthy. And its persistent failures and banker influence weaken the case for that independence.
Nevertheless, the heart of the proposal is to return democracy to the Fed, so the institution will edge away from its commitment to capital over labor. “The fundamental piece is that the Fed must be a public institution,” said Ady Barkan of the Fed Up Coalition.
Liberals too often ignore the Fed and the role it plays in the economy, but that’s starting to change. An obscure piece of the Federal Reserve Act statute identified by then-House staffer Matt Stoller led to a remarkable cut of billions of dollars in subsidies to big banks last year, under a Republican-majority Congress. Now the Fed Up coalition is not only rolling out this reform plan, but pushing the presidential candidates to answer whether the Fed should deliberately slow down the economy, make sure their institution looks like the general public, and reduce the power of private banks on its operations. (Bernie Sanders laid out his views on Fed reform in the New York Times last December, some of which intersect with the Fed Up proposal. Warren Gunnels, Sanders’ Policy Director, would only say that the Fed Up plan “deserves serious consideration.”)
A public, inclusive debate over Fed transparency and accountability is critical, given the importance of this institution to the economy. “These reforms would put the Fed on a path to serving the public for the next 100 years,” said Professor Levin. And that has to mean all the public, through democratic principles, not just the executives at our biggest banks.
By David Dayen
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Here's How The #AbolishICE Movement Really Got Started
Here's How The #AbolishICE Movement Really Got Started
"The demand to abolish ICE has existed almost since the beginning of ICE," Ana Maria Archila, co-executive director of...
"The demand to abolish ICE has existed almost since the beginning of ICE," Ana Maria Archila, co-executive director of the Center for Popular Democracy, told Refinery29. "Since its creation, there were organizations that were saying that the inclusion of ICE as an agency that is designed specifically to separate families, put people in detention, to deport them is a dangerous development in the way we as a country relate to migration."
Read the full article here.
Slew Of Organizations Denounce Civil Right Violations of Puerto Ricans on May Day and Demand Gov. Roselló To Stop Austerity Measures
05.03.2018 New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful...
05.03.2018
New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful assembly of students, families and activists on May Day protesting against austerity measures and the national debt, the Center for Popular Democracy signed on to an open letter to Governor Roselló and released the following statement through its Co-Executive Director, Ana María Archila, who was present at the event and recorded the state violence response in a video:
“This week, as teachers, students, and retirees in Puerto Rico were exercising their First Amendment rights with a peaceful march to demand dignity for their families, the police came out in riot gear and unleashed tear gas on the crowd. Children, elderly people, entire families were fighting to catch their breath. It was a scene that doesn’t belong in a democratic society.
But this scene is not new in Puerto Rico. The police are used to controlling and enforcing colonial rule on the island. And they are enabled by our silence stateside. The crisis confronting Puerto Rico is enormous, and it’s as much a crisis of democracy as it is an economic and climate crisis.
Governor Roselló must condemn the violence perpetrated against his own people. And he must address the root causes of the march: the austerity measures that prioritize banks over people and are putting the brakes on the island’s recovery. We will continue to stand in solidarity with the Puerto Rican people as they continue to demand dignity and a better life for themselves and their families.”
Below, the Center for Popular Democracy join several organizations in solidarity with the Puerto Rican people and sign on this open letter to Governor Ricardo Roselló demanding an investigation into the abuses perpetrated by the Police Department on May Day rally and demand a stop to austerity measures and cancellation of the debt:
Open Letter to the Governor of Puerto Rico Ricardo Roselló
Sign-On Letter Condemning the Actions of the Puerto Rican Government on May Day and Demanding Justice for the Puerto Rican People
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and organizations that came together on May 1, 2018 to march against inhumane austerity measures that continue to drive a massive exodus of families in search of a better life. We stand with the millions of Puerto Ricans who remain on the island and fight every day to sustain their families and improve their collective quality of life. We write today to condemn the inhumane and violent police actions of the government of Ricardo Rosselló.
On May 1, 2018, thousands of Puerto Rican people, including elderly adults and children, who were exercising their First Amendment right to protest were met with state violence through the use of tear gas and violence at the hands of the police. Images captured at the event, corroborated by first-hand accounts, show crowds of people fighting to catch their breath as they ran away from police in riot gear. This type of scene has no place in a democratic society. The right to assemble and express frustration at the government is essential to the practice of democracy. We are deeply disturbed by Governor Roselló’s defense of the police brutality and demand that the local government take the appropriate actions to prosecute those who gave and executed the orders for these actions to take place.
On May 1, 2018, thousands of Puerto Ricans came out to protest the measures that the governor and the fiscal control board have put forward over the last two years. These measures adversely affect working class Puerto Ricans, and include:
1. Privatizing of the public school system and the power company;
2. Doubling the tuition costs in Puerto Rico's public university;
3. Closing over 300 schools;
4. Slashing labor rights;
5. Raising taxes; and
6. Cutting pensions.
This dire situation is forcing families to flee the island en masse. The Center for Puerto Rican Studies estimates that Puerto Rico could lose 14% of its population, 470,000 people, by 2019.
On May Day, the people of Puerto Rico came out with clear demands for their government. Today we stand with them and echo their demands in solidarity, and we commit to advocate for them in the United States.
We further demand immediate accountability for the May Day violence. Our demands are as follows:
1. Stop austerity: The Government of Puerto Rico should stop all austerity measures and invest in the working people of Puerto Rico by strengthening labor rights, raising the minimum wage, and promoting other policies that allow families in the island to live with dignity. Living with dignity includes rebuilding Puerto Rico’s power grid with 100% clean and renewable energy and keeping the power grid and power generation in public hands under community control, so as to mitigate the climate crisis and adapt for future extreme weather.
2. Cancel the debt: The Government of Puerto Rico should not make, and the U.S. government should stop promoting, any more debt payments to billionaire bondholders. Instead, all government efforts should focus on securing payments to pension holders. The Puerto Rican government should also prosecute any individual that has profited from the debt crisis.
3. Prosecute: The Government of Puerto Rico should conduct a full, transparent and impartial investigation into the police violence during the May Day actions and prosecute every police officer and civil servant who instructed and executed these acts of violence against the Puerto Rican people. We also encourage human right organizations to conduct their own independent investigations and oversight to guarantee that this process is done with full transparency.
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and their demands, condemn the actions of the Puerto Rican government, and demand that the local government take the appropriate actions to prosecute those who instructed and executed these actions.
Sincerely,
SPACEs United for a New Economy Maryland Communities United Black Voters Matter Fund CT PR Agenda Progressive Caucus Action Fund The Bully Project Center for Popular Democracy Make the Road PA Make the Road CT 215 People Alliance Alliance for Puerto Rico-Massachusetts Make the Road NJ United We DREAM NYCC Chicago Boricua Resistance! OLÉ in Albuquerque, NM Organize Florida Delaware Alliance for Community Advancement CASA Mi Familia Vota Make the Road NY VAMOS4PR 32BJ Matt Nelson Action Center for Race and the Economy Refund America Proyect Massachusets Jobs with Justice DiaspoRicans DiaspoRiqueños New Haven Association of Legal Services Attorneys United Action CT Womens March Alliance for Quality Education National Economic and Social Rights Initiative Courage Campaign Action NC Harry Potter Alliance Blue Future Youth Progressive Action Catalyst Pennsylvania Student Power Network Movement Voter Project Student Power Networks About Face: Veterans Against the War Americas for Conservation Florida Immigrant Rights Coalition- FLIC One America Services, Immigrant Rights, and Education Network (SIREN) Arkansas United Community Coalition Make the Road NV Sunrise Movement Lil Sis American Family Voices Resource Generation Climate Hawks Vote The Shalom Center National Korean American Service & Education Consortium (NAKASEC) Massachusetts Education Justice Alliance Public Higher Education Network of Massachusetts Institute for Policy Studies, New Internationalism Project Korean Resource Center (KRC) HANA Center NAKASEC - Virginia Pineros y Campesinos Unidos del Noroeste (PCUN) Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA) Progressive Leadership Alliance of Nevada (PLAN)
New Report Says NYC Latino Construction Workers Disproportionately Die On The Job
Fox News Latino – October 24, 2013 - A disproportional number of Latino construction workers in New York City die...
Fox News Latino – October 24, 2013 -
A disproportional number of Latino construction workers in New York City die while on the job compared to their coworkers of other races, according to a new report.
From 2003 to 2011, three-fourths of construction workers who died were either U.S.-born Latinos or immigrants, according to a review of all of the fatal falls on the job investigated by the Occupational Safety and Health Administration, an agency of the federal Labor Department.
“The data we have demonstrates that Latinos and immigrants are more likely to die in these types of accidents,” Connie Razza, from the Center for Popular Democracy, which compiled the report, told the New York Daily News.
Construction safety advocates and a study by the New York State Trial Lawyers Association cited safety violations on job sites run by smaller, non-union contractors and an unwillingness by some undocumented workers to report violations as main reasons for the high number of deaths among Latino workers.
“Contractors aren’t taking simple steps to protect their workers,” said Razza. “They are not providing the training and the safety equipment that are required by law.”
While New York may have a surprisingly high number of deaths of Latino construction workers, numbers nationwide for Hispanic deaths on the jobs are also greater than any other group.
OSHA reported that 749 Latino workers were killed from work-related injuries in 2011— more than 14 deaths a week or two Latino workers killed every single day of the year. While 12 percent of all fatal work injuries in 2011 involved contractor work, Latinos made up 28 percent of fatal work injuries among contractors — well above their 16 percent share of all fatal work injuries in 2011.
Advocacy groups in New York are working to combat any changes to the state’s scaffolding law, which organizations like Razza’s the Center for Popular Democracy say gives incentive to keep workplaces safe.
Contractors argue that the law, which holds owners and contractors who did not follow safety rules fully liable for workplace injuries and deaths, has caused their insurance costs to skyrocket.
New York lawmakers, however, has historically blocked any of the proposed changes to the law.
“All we’re looking for is the ability to have the same right as anybody else would in the American jurisprudence system,” said Louis J. Coletti, president and CEO of the Building Trades Employers’ Association.
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Can We Head Off a Long Hot Summer of Riots and Rebellion?
Huffington Post - 05.27.2015 - The nation's attention has been focused on the recent riots in Baltimore, but the harsh...
Huffington Post - 05.27.2015 - The nation's attention has been focused on the recent riots in Baltimore, but the harsh truth is that they could have happened in any major city. Indeed, we could see a long hot summer of urban (and, as in places like Ferguson, suburban) riots that would make the two-day disturbances in Baltimore seem trivial in comparison.
We can surely expect more turmoil next year, too, if social and economic conditions continue to deteriorate, and if candidates for president and Congress fail to make specific suggestions for addressing the suffering and hardship facing the nation.
But promises can only quell riots for so long. Hope soon turns to frustration, and then anger, unless there's real action to change conditions.
The turmoil in Baltimore followed the trajectory of the urban riots of the 1960s (in Detroit, Newark, Los Angeles, and 161 other cities) and subsequent civil disorders in Miami (1980), Los Angeles (1992) and elsewhere. It typically begins with an incident of police abuse against an African-American resident. Outraged members of the black community organize nonviolent protests, the police over-react and the protests become violent and threatening.
In Baltimore, the death of Freddie Gray, a 25-year-old unarmed black man, at the hands of the police, triggered the demonstrations, but the city was already a powder keg of economic and racial grievances. The same is true in cities across America.
Fixing racist police practices and bias in our criminal justice system is important. But the underlying cause of riots is the hopelessness that comes with persistent poverty, unemployment, slum housing, widespread sickness, underfunded schools and lack of opportunity to escape such intolerable conditions.
Since Baltimore exploded, many pundits have taken to quoting Martin Luther King, who once said that "a riot is the language of the unheard." But few pundits have discovered another one of King's profound insights: "There is no noise as powerful as the sound of the marching feet of a determined people."
Riots are not truly political protests. They are expressions of hot anger -- outrage about social conditions. They do not have a clear objective, a policy agenda or a strategy for bringing about change. They are a wake-up call to those in power.
In contrast, social movements reflect cold anger. They are intentional and strategic. They take place when people are hopeful -- when people believe not only that things should be different, but also that they can be different.
Riots tell us what desperate people are against. Social movements tell us what hopeful people are for.
To avoid a long hot summer this year and in the future, but also to address the underlying causes and tensions in our communities, we need to do two things. First, strengthen and invest in the social movements -- grassroots organizing and coalition building -- that have emerged in cities across the country. Second, engage the country in a policy conversation about full employment, and then take action to guarantee every American a good job.
Invest in Grassroots Organizing and Coalition Building
Visiting the U.S. in the 1830s, Frenchman Alexis de Tocqueville, author of Democracy in America, was impressed by the outpouring of local voluntary organizations that brought Americans together to solve problems, provide a sense of community and public purpose, and tame the hyper-individualism that he considered a threat to democracy.
Every fight for social reform since then -- from the abolition movement to the labor movement's fight against sweatshops in the early 1900s, to the civil rights movement of the 1960s, to the environmental and women's movements of the past half century -- has reflected elements of the self-help spirit that Tocqueville observed.
America's struggling families -- including the residents of poor communities, like inner city Baltimore -- need stronger vehicles to gain a voice in their cities and the larger society. This is the most effective alternative to riots.
Studies show that voluntary associations and interest groups today are titled toward affluent Americans. As political scientist Martin Gilens demonstrates in Affluence and Influence, America's policymakers respond almost exclusively to the policy preferences of the economically advantaged. But under specific circumstances -- especially during impending elections, and when ordinary Americans are well-organized -- the preferences of the middle class and the poor do matter.
Around the country, there are thousands of local nonprofit community groups that organize and mobilize people around their everyday concerns -- from the lack of stop signs at dangerous intersections, to police misconduct and racial profiling, to the proliferation of killings by people with assault weapons, to environmental and health hazards in poor communities, to predatory bank lending and the epidemic of foreclosures, to the repression of basic voting rights, to inadequate funding for public schools, to the shortage of decent affordable housing, to the lack of jobs and decent pay.
Groups such as the Moral Monday movement in North Carolina, the Alliance of Californians for Community Empowerment and the fledgling Black Lives Matter movement (created in 2012 after Trayvon Martin's murder in Florida) channel people's anger into constructive action around specific policy demands. Some of these groups are part of regional and national advocacy networks, such as the Center for Community Change, National People's Action, the Partnership for Working Families, US Action, PICO, the Industrial Areas Foundation and the Center for Popular Democracy.
Most of these organizations, however, operate on shoe-string budgets. In addition to dues and bake sales, they rely on private foundations to help them hire staff, maintain an office, conduct research and, occasionally, engage a lawyer. Their funding for organizing, research, publicity, policy advocacy and other tasks is minuscule when compared with big corporations that have armies of high-paid lobbyists, donate billions in campaign contributions and have huge war chests devoted to public relations and propaganda.
Despite a playing field that is tilted heavily in favor of big business and wealthy people, grassroots organizing groups and advocacy networks have won some significant victories at the local, state and federal levels.
A growing number of cities, including Seattle and Los Angeles, have adopted municipal wages that will reach $15 an hour within a few years. In response to pressure from community groups and its own employees, Walmart -- the nation's largest private employer with 1.3 million workers -- earlier this year, announced that it would boost pay for its lowest-level workers to at least $9 an hour starting this spring, and raise that to $10 next year. Walmart estimated that about 500,000 employees will receive a raise, totaling roughly $1 billion a year. In April, McDonald's announced its own wage increases -- also in response to protests by employees and community groups, as well as support from elected officials. The company said that, beginning July 1 of this year, starting wages at company-owned McDonald's would be one dollar over the locally mandated minimum wage. Last year, minimum wage increases passed by wide margins in five states, including decidedly red states like Arkansas, Alaska, South Dakota and Nebraska. Paid sick time passed by a wide margin in Massachusetts and in three cities. New York is moving rapidly toward high quality, free, full-day pre-kindergarten educational options for every family -- every child, rich, middle and poor. In California, there are significant efforts to curb carbon emissions and explicitly link those efforts to job creation and investment in low-income communities. The criminal justice reform movement has secured breakthroughs on "ban the box" that open up employment opportunities for the formerly incarcerated The immigrant rights movement has successfully pushed 20 states to authorize in-state college tuition for undocumented students The Black Lives Matter movement is connecting criminal justice and police reform to the "Fight for $15" among low-wage workers of color.These and other movements represent a powerful convergence of constituencies and social forces with the potential to reshape the national agenda. But to be effective, they need more resources to hire staff, reach more people in their communities and workplaces, and get their voices heard in the corridors of power.
America's foundations -- which are funded by wealthy people and corporations that get generous tax breaks for their philanthropic giving -- donate about $55 billion a year to a wide variety of causes. They devote less than to 10 percent of that amount to groups engaged in organizing and advocacy for social justice.
Perhaps not surprisingly, most foundations allocate the vast bulk of their donations to institutions (such as elite colleges and universities, hospitals, museums and others arts organizations) that primarily serve the affluent. It is time for these tax-exempt foundations to invest in organizations that promote grassroots organizing and help give working families and the poor a stronger voice in our democracy.
Inequality, Poverty, Joblessness and Economic Insecurity
Ironically, while most of the media were focusing on the Baltimore riots, it was John Angelos, the Baltimore Orioles's chief operating officer, who seized the opportunity to redirected attention to the root causes of the city's turmoil. He tweeted:
My greater source of personal concern, outrage and sympathy beyond this particular case is focused neither upon one night's property damage nor upon the acts, but is focused rather upon the past four-decade period during which an American political elite have shipped middle class and working class jobs away from Baltimore and cities and towns around the U.S. to third-world dictatorships like China and others, plunged tens of millions of good, hard-working Americans into economic devastation, and then followed that action around the nation by diminishing every American's civil rights protections in order to control an unfairly impoverished population living under an ever-declining standard of living and suffering at the butt end of an ever-more militarized and aggressive surveillance state.
The shape of the current crisis is by now very familiar. The harsh reality is that no other wealthy nation allows the level of sheer destitution and misery found in the United States, including poverty, hunger, slums, homelessness and ill-health.
About 50 million Americans live below the official poverty line. One-third of the country-- over 100 million people-- cannot make ends meet. They don't earn enough to sustain their families. One in three American households say they are living paycheck to paycheck, continuously on the brink of financial disaster. A staggering 36 percent say that they or someone else in their household had to reduce meals or cut back on food to save money during the past year.
Because incomes and wages have declined, a record number of Americans are in debt. They mortgage their future to pay for their homes, a college education, and, with credit cards, day-to-day expenses
Some $7 trillion of Americans' household wealth evaporated in the housing crash that began in 2007. The burden has fallen disproportionately on African American and Latino families, who saw more than half of their total wealth disappear as a result of Wall Street's risky and reckless practices.
The current official unemployment rate is 5.4 percent, but it varies considerably by race. It is 4.7 percent for whites compared with 6.9 percent for Hispanics, and 9.6 percent for African-Americans. But several years into the so-called "recovery," the real unemployment rate -- which also includes discouraged workers who've given up trying to find a job and those who are employed part time but not able to secure full-time work -- is double the official rate.
Almost one-third of America's jobless have been out of work for 27 weeks or more. Among those lucky enough to have jobs, women earn only 78 percent of what men make. African American women make 64 percent and Hispanic women 54 percent of men's earnings.
The United States is the most unequal of the world's wealthiest societies. The richest one percent of all Americans take home approximately 20 percent of the country's total income and owns 40 percent of the nation's wealth. Since 1979, wages for the richest one percent have increased by 138 percent; in contrast, wages for the bottom 90 percent have increased just 15 percent. In the last few years, as the country has struggled to recover from the greatest financial crisis since the Great Depression, this top tier has received nearly all of the added income generated from economic growth.
A recent report by the Institute for Policy Studies found that the $26.7 billion in bonuses handed to 165,200 executives by Wall Street banks in 2013 would be enough to more than double the pay for all 1,085,000 Americans who work full time at the current federal minimum wage of $7.25-per-hour.
The low wages paid by many employers cost taxpayers about $153 billion each year by forcing employees to rely on public assistance to afford food, healthcare and other basic necessities, according to a recent study conducted by the University of California's Berkeley Center for Labor Research and Education. This is more than the annual budgets of the U.S. Department of Education and Health and Human Services combined.
A Policy Agenda for Good Jobs and Shared Prosperity
Fortunately, this situation can be fixed. In previous periods of American history when we faced an economic and moral crisis -- the Gilded Age of the late 1800s, the Depression of the 1930s, and the explosive racial divide of the 1960s -- reform movements mobilized new constituencies to promote bold solutions that changed public opinion and pushed elected officials to adopt new policies. Ideas that were once considered radical -- the minimum wage, Social Security, women's suffrage, the Voting Rights Act, consumer and environment protection laws and many others -- became viewed as common sense.
In response to our current crisis, a new wave of advocacy groups and policy experts has emerged to put new ideas on the table.
With the support of local advocacy groups, a growing wave of progressive mayors and other local officials in Pittsburgh, San Francisco, Newark, Minneapolis, Seattle, Los Angeles and elsewhere have sought to address the widening economic divide and persistent poverty in order to build an economy that works for all families. The growing number of cities with municipal minimum wage laws is only one aspects of this crescendo of conscience in favor of shared prosperity.
Think tanks like the Center for American Progress, the Roosevelt Institute, the Center for Budget and Policy Priorities, the Center for Economic and Policy Research, and the Economic Policy Institute have released reports that provide bold prescriptions to the problems of inequality, poverty and joblessness.
A growing number of enlightened business leaders now recognize that we need policies that invest in good jobs, rather than our current short-term focus on enriching the already rich, especially those in the financial sector that caused the economic crash in the first place. Many now recognize that we cannot put most of our hopes simply in improving skills and education. Over the past generation, overall skills and educational levels have increased, but wages (even for those with college degrees) have stagnated.
Earlier this month, in the wake of the Baltimore uprising, and in anticipation of the next election cycle, Sen. Elizabeth Warren, New York Mayor Bill de Blasio and Nobel Prize winning economist Joseph Stiglitz released a 115-page report, Rewriting the Rules of the American Economy, that offered proposals to address income inequality and poverty. The "trickle-down" economics that has prevailed since 1980 has "decimated America's middle class," according to the report. "It's time to try something new," Stiglitz said, taking aim at excessive executive compensation, declining wages and labor standards, weak regulation of the financial industry and generous tax rates for the wealthy. They also called for universal pre-kindergarten, a federal paid family leave policy and a $15-an-hour federal minimum wage.
Also, last month, a coalition of advocacy groups -- including the Center for Community Change, Center for Popular Democracy, Jobs With Justice, Working Families Organization and the Leadership Conference on Civil and Human Rights -- launched a national campaign to advance the idea that every American should and can have access to a good job. Their plan, called Putting Families First: Good Jobs for All, is both audacious and simple: Everyone who wants a job should have assured access to a good job that provides dignity, a voice on the job, fair wages and good benefits.
A good job means one that pays enough to allow a family to buy or rent a decent home, put food on the table and clothes on their backs, afford health insurance and child care, send the kids to college, take a yearly vacation and retire with dignity. A good job means that parents don't have to juggle two or three jobs to stay afloat, and that they still have time to spend with their kids.
As a society, we have to make sure that people who work can support their families and assure that everyone can retire in dignity.
During this election cycle, and over the next few years, this coalition of conscience hopes to inject the goal of a good job for all into the political debate and the national conversation. It is proposing solutions commensurate with the scale of the challenge -- rather than tinkering at the margins. The Putting Families First agenda has five key elements:
Guaranteeing Good Wages and Benefits. Requiring every job in the United States to meet a minimum standard of quality -- in wages, benefits, and working conditions -- and offer unhindered access to collective representation and a real voice for workers. Unlocking Opportunity in the Poorest Communities. Investing resources on a large scale to restart the economy in places where racial bias and sustained disinvestment have produced communities of concentrated poverty. Taxing concentrated wealth. Funding new investments in job creation, care, and economic renewal by taxing those who benefit most from the current economic model - investors, financiers, wealth managers, and individuals in the highest income brackets. Building a Clean Energy Economy. Using the large-scale investments required for transition to a clean energy future to create millions of good jobs that are accessible to all Americans, especially those hardest hit by hard times -- workers of color, women, and economically distressed communities. Valuing Families. Ending the systematic devaluation of care work, which disproportionately keeps women in poverty, by making high quality child care available to all working parents, raising the quality of jobs in the early childhood education and care fields, transforming homecare and providing financial support to unpaid caregivers.These are not pie-in-the-sky ideas. Many of them have already been adopted in cities and states, such as municipal minimum wage laws, paid family leave policies, green jobs ordinances, and state laws to improve conditions for nannies, maids, and other domestic workers. In many other countries, including the social democracies of Europe, Australia and Canada, most of these ideas are taken for granted.
It may appear paradoxical to propose a bold agenda for change at a time when Congress is paralyzed and the immediate prospect of bold federal action appears dim. But the moment is ripe. America seems to be holding its breath, trying to decide what kind of country it wants to be. We seem to be at one of those crossroad moments when attitudes are rapidly shifting, and significant reform is possible.
Americans are upset with widening inequality, the political influence of big business and declining living standards. Public opinion is generally favorable toward greater government activism to address poverty, inequality and opportunity. A national survey by the Pew Research Center last year found that 60 percent of Americans -- including 75 percent of Democrats, 60 percent of independents, and even 42 percent of Republicans -- think that the economic system unfairly favors the wealthy. The poll discovered that 69 percent of Americans believe that the government should do "a lot" or "some" to reduce the gap between the rich and everyone else. Nearly all Democrats (93 percent) and large majorities of independents (83 percent) and Republicans (64 percent) said they favor government action to reduce poverty.
Over half (54 percent) of Americans support raising taxes on the wealthy and corporations in order to expand programs for the poor, compared with one third (35 percent) who believe that lowering taxes on the wealthy to encourage investment and economic growth would be the more effective approach. A new national poll found that 63 percent of Americans support raising the federal wage threshold to that level. These are clear signs of a tectonic shift in our national thinking. But public opinion, on its own, doesn't translate into public policy. It has to be mobilized. As Cong. Keith Ellison of Minnesota has said: "Being right is not enough! We've got to organize."
The coalition behind the Putting Families First: Good Jobs for All plan intends to engage millions of Americans in multiple layers of civic action -- organizing, demonstrating, voting and advocating for legislation. They also want to encourage opinion leaders -- faith leaders, enlightened businesspersons, academics and policy analysts, columnists and editorial writers, and others -- to participate in a broad and deep national conversation about shifting our country's priorities toward full employment, clean energy and the other components of their agenda.
No time is better to do this than during a national election season, when the country is focusing on what candidates for president and Congress have to say about America's problems and potential.
If the voices and concerns of ordinary Americans aren't at the center of this debate, we can expect the ticking time bomb of urban unrest to explode in more and more communities. Without major reforms, the recent upheavals in Ferguson and Baltimore may simply be a precursor to a wave of 21st century riots.
To avoid more turmoil in our streets, and to address the growing frustration of a large segment of our society, we must focus the nation's attention on bold policy prescriptions to address the roots causes of poverty, inequality, joblessness and economic insecurity.
This isn't just an insurance policy against future riots. It is also a blueprint for a more livable, prosperous, and healthier society.
Source: Huffington Post
Blow up the deficit!
As most working Americans could tell you, the economy is still not doing well. Right now, political pressure to fix...
As most working Americans could tell you, the economy is still not doing well.
Right now, political pressure to fix this tends to focus on the Federal Reserve. When the Fed hikes interest rates to curb inflation, it also risks squashing job growth. So activists like the Fed Up campaign are pushing Fed officials to lay off their recent interest rate increases. And a bevy of economists just released a letter urging the Fed to target inflation higher than 2 percent.
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Dreamers Deferred As Congress Lets DACA Deadline Pass
Dreamers Deferred As Congress Lets DACA Deadline Pass
"For most of us, DACA was the only opportunity we had to come out of the shadows and show everyone what we are capable...
"For most of us, DACA was the only opportunity we had to come out of the shadows and show everyone what we are capable of doing, regardless of the legal status in which we stand in,” Aguilera said in a testimonial provided by the Center for Popular Democracy to ABC News...“With no clear path forward on the horizon to protect Dreamers, thousands of immigrant youth are left in limbo and in the sights of Trump’s deportation machine,” said Ana Maria Archila, co-executive director of the Center for Popular Democracy in a statement to ABC News.
Read the full article here.
California’s Emeryville is third city to pass Fair Workweek policy
California’s Emeryville is third city to pass Fair Workweek policy
EMERYVILLE, Calif. – On Oct. 18, this city became the third in the nation to pass a Fair Workweek policy. The City...
EMERYVILLE, Calif. – On Oct. 18, this city became the third in the nation to pass a Fair Workweek policy. The City Council passed the ordinance unanimously at its first reading, following testimony at a pre-meeting press conference and during the meeting itself, by those most affected.
Under the new policy, employers will have to give workers their schedules two weeks in advance, compensating them for last-minute changes. When more hours become available, current workers will have priority so they can get closer to fulltime work.
The council must confirm its action with a second vote, scheduled for Nov. 1. The new law, which will affect some 4,000 fast food and retail workers, is to become effective in July 2017.
Almost two years ago, San Francisco’s Board of Supervisors passed the first such measure, the Retail Workers Bill of Rights, and just last month, Seattle followed suit http://www.peoplesworld.org/article/tale-of-two-cities-yes-vs-no-on-fair....
New York City may be next: Mayor Bill de Blasio and City Council members are pressing legislation to require employers to give some 65,000 hourly fast food workers a two week notice of changes in their shift assignments. However, the bill doesn’t extend such requirements to retail stores or full-service restaurants.
Emeryville, a small city across the Bay from San Francisco with a large concentration of retail stores, already has the country’s highest minimum wage, with large employers required to pay their workers at least $14.82 per hour. Smaller businesses must pay at least $13 per hour.
At the state level, earlier this year California passed a new minimum wage law with a path to a $15 hourly minimum.
At the press conference, low wage workers, local residents, community and labor organizations, faith leaders and academic researchers told of the many challenges faced by retail workers who must deal with constantly shifting and unpredictable schedules and variable numbers of work hours.
Moriah Larkins, an Emeryville retail worker and activist with the Alliance of Californians for Community Empowerment (ACCE) who MC’d the press conference, told of her own experience working six days a week for a “bad apple” employer. “And on my days off they would call me in, and I have my son, who was two years old at the time.”
At first, Larkins said, she used to scramble and pay extra for last minute child care. But as she realized her extra hours, and less time for her son, were making him unhappy, she started refusing the extra shifts. After that, her hours, which had been 32 to 40 per week, were cut in half.
“Now,” she said, “I work for a ‘good apple.’ I work 28 hours per week, I can pay all my bills, I can spend time with my son and finish my nursing degree.”
In a conversation after the press conference, Larkins said she hoped the ordinance would pass “without exceptions.” She and others are warning that before the final vote Nov. 1, the California Retail Association is trying hard to weaken the measure.
Other retail and fast food workers described their experiences, including a past employer who paid subminimum wages and another who fired a worker after “forgetting” he had accepted her timely request for a day off.
The new ordinance has been in the making for a while. In May, Emeryville Mayor Dianne Martinez and Councilmember Ruth Atkin wrote an op-ed published by the San Francisco Chronicle, in which they said a regional fair workweek was needed to assure workers “stable schedules so they can pay the bills, live healthier lives, “and contribute more to our communities.
A recent study, Wages and Hours: Why workers in Emeryville’s service sector need a fair workweek, conducted by ACCE, the East Bay Alliance for a Sustainable Economy (EBASE), and the Center for Popular Democracy found that in a sample of more than 100 frontline Emeryville retail workers, some 68 percent had part-time schedules, 82 percent were people of color, eight out of 10 had variable schedules and nearly two-thirds only got their schedules a week or less in advance. Over two-thirds said they wanted to work more hours, while over half said they were scheduled for “clopening” shifts, or back-to-back closings and openings with less than 11 hours off.
The study concluded that employers need to commit to predictable, flexible and responsive schedules that allow for adequate rest.
At the Oct. 18 press conference, EBASE Deputy Director Jennifer Lin said, “Providing a fair work week is not only good for workers, it’s good for business, too.” With many retailers already scheduling in advance, she said, the new ordinance will help level the playing field, and stable schedules and more adequate hours also reduce turnover and absenteeism.
In an article earlier this month in The Nation magazine, author Michelle Chen noted that the Fight for $15 and Fair Workweek struggles are “converging on sectors that used to be known as bastions of dead-end jobs.” The next step, she said, is “to organize, and unionize, to give workers real collective bargaining leverage over their wages and working conditions. Work-life balance comes by shifting the power balance on the job, so that workers have the final say over when they’re on call.”
By Marilyn Bechtel
Source
Snowy Protest at Philly Fed
The Inquirer - March 5, 2015, by Joseph DiStefano - Ten cold protesters from a national group called Fed Up gathered at...
The Inquirer - March 5, 2015, by Joseph DiStefano - Ten cold protesters from a national group called Fed Up gathered at the Federal Reserve of Philadelphia in the storm this afternoon to urge the Fed to pay more attention to boosting employment and listening to groups representing wage workers and poor people.
The group, which includes labor union and church groups as well as local affilates such as North Philadelphia-based Action United, says its national leaders met with Federal Reserve Chairman Janet Yellen in Washington last year, but they have had a tough time getting Fed officials who oversee regional banks and regulatory teams, such as Charles Plosser, the free-market economist who retired in January as the Philly Fed President, to take them seriously. Other Fed Up affilates held protests in New York, Charlotte, St. Louis, and other Fed cities today. More are planned, said Shawn Sebastian of the liberal, Brooklyn-based Center for Popular Democracy, one of the groups supporting Fed Up.
"Plosser never gave us a meeting," said Action United leader Kendra Brooks, who said she's been organziing poor people to press for improved government job, education and housing programs since she was laid off from her management job at an Easter Seals affiliate in 2012. Herb Taylor, a veteran community-development manager for the Philly Fed, and other local Fed officials did meet with a Fed Up delegation last fall, and Philly Fed leaders have also held meetings with labor unions and community groups, Fed spokesman Jim Ely reminded the group.
"But they gave us crumbs," said Brooks, noting that labor and community-group leaders were not part of the inner circle who selected Plosser's replacement, University of Delaware President Patrick Harker, a Philly Fed board member who will take the top Philly Fed job in July.
Under Ed Boehne, Philadelphia Fed President from the 1970s into the 1990s, the Philly Fed forced banks to expand their inner-city direct-lending programs and ensured labor representation on the Fed board.
Brooks questioned whether Boehne's successors share that committment to listening to and serving all sectors. She said corporate executives like Comcast chief financial officer Michael Angelakis and investor James Nevels, who led the committee that chose Harker, don't represent a wide range of residents of the Philadelphia Federal Reserve district, which covers eastern Pennsylvania, South Jersey and Delaware.
"Comcast does not represent our community, the universities do not represent the community. We need our voices to be heard, also," she said.
Group leaders said they are frustrated the Fed has not pushed banks to be more flexible in setting payment terms for stressed homeowners, or show the forebearance banks often show to troubled corporate borrowers.
Action United member Lionel Rice said he's running out of time. He said he hadn't been able to find a job paying more than fast-food wages since he was laid off after 20 years at the Penn Maid dairy plant in Northeast Philadelphia three years ago. He said a housing finance agency is preparing to foreclose on his home in Olney.
Ely said he would bring the group's petition to Fed officials' attention.
Source
Yellen Meets With Activists Seeking Fed Reforms
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with...
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with the Federal Reserve.
More than two dozen activists demonstrated outside the Fed and then met with Chair Janet Yellen on Friday as part of a new campaign seeking policy reforms and a commitment to keep interest rates low until good jobs are plentiful for all workers. Although the labor market has steadily strengthened this year, wages have remained stagnant.
During the hour-long discussion with Yellen and three other Fed board members, coalition representatives discussed problems their communities were facing with high unemployment and weak wage growth.
Ady Barkan, one of the organizers of "Fed Up: The National Campaign for a Strong Economy," said Yellen and the other Fed officials listened but made no commitments about future Fed policy.
"It was a very good conversation," said Barkan, an attorney with the Center for Popular Democracy in Brooklyn. "They listened very intently, and they asked meaningful follow-up questions."
Fed officials confirmed that the meeting took place but declined to comment on the issues raised at the meeting.
The Fed's outreach to community activists was the latest move by Yellen to focus attention on lingering problems from the Great Recession. Wearing green tee-shirts with the phrase "What Recovery?" the group had protested outside of the Fed's headquarters on Constitution Avenue under the watchful eye of nine Fed security officers.
Members of the group, some of whom had demonstrated at a central bank gathering in August in Jackson Hole, Wyoming said it was important that Fed officials not be swayed by arguments that it needs to move quickly to raise interest rates to make sure inflation does not become a threat.
"The banks are the ones that crashed the economy ... but they're the ones who got the bonuses and the bailouts while workers and homeowners like me were left to drown," said Jean Andre, 48, of New York, who said he was having a tough time finding full-time work.
In addition to Yellen, the Fed officials who took part in the meeting were Fed Vice Chairman Stanley Fischer and Fed board members Jerome Powell and Lael Brainard.
Members of the coalition said about half of the meeting was taken up by their members telling stories about the difficulty in finding jobs, particularly in disadvantaged groups and communities dealing with unemployment much higher than the 5.8 percent national average.
The Fed officials also were presented a petition signed by 5,000 people around the country urging the central bank to keep interest rates low until the country reaches full employment.
The group also pushed for a more open process in the selection of presidents of the Fed's 12 regional banks. They say the current process is too secretive and dominated by officials from banks and other businesses with little input from the public. The regional presidents, along with Fed board members in Washington, participate in the deliberations to set interest rates.
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