Yellen to Meet Group Seeking Low Rates, Greater Openness
Bloomberg News - November 11, 2014, by Christopher Condon - Federal Reserve Chair ...
Bloomberg News - November 11, 2014, by Christopher Condon - Federal Reserve Chair Janet Yellen will meet Nov. 14 with a coalition of community groups, labor unions and faith leaders seeking to influence monetary policy and the way some Fed officials are appointed.
The group has called for the Fed to place greater weight on lowering unemployment. They also want more public say in the appointment of district Fed leaders, just as regional Fed presidents in Dallas and Philadelphia plan to retire next year.
“The most important thing is to keep interest rates low,” said Shawn Sebastian, a policy advocate at the Brooklyn-based Center for Popular Democracy, one of the organizers. “The hawks in the Fed are pushing hard to raise rates soon, but most people in the public realize we are not three months away from a recovery.”
The meeting comes as the Fed moves closer to a decision on when to raise interest rates for the first time since 2006.
Unemployment fell to 5.8 percent in October, and most Federal Open Market Committee officials expect the U.S. central bank will lift its benchmark rate at some point next year, after leaving it near zero since December 2008.
The organizers look to add to pressure on the central bank to be more transparent. The Fed has come in for criticism from Congress, where Republicans have proposed legislation limiting its discretion on monetary policy and banking supervision. Congress has already curbed the Fed’s emergency lending powers.
The FOMC, the Fed’s main policy-setting panel, has 12 voting seats. Eight of those are reserved for the bank’s board of governors and the president of the New YorkFed. The heads of the other 11 regional banks rotate through four remaining spots.
Regional Feds
The governors are appointed by the U.S. president and confirmed by the Senate. Regional bank heads are picked by their respective boards, which are typically dominated by business executives. The group meeting with Yellen say there should be more public input when Philadelphia’s Charles Plosser and Dallas’s Richard Fisherstep down in 2015.
“The Dallas Fed needs to create a transparent and inclusive process for selecting” a new president, Danny Cendejas, an organizer at the Texas Organizing Project, said in a statement. “Members of the public have the right to know who is making this crucial decision and what criteria they are using.”
The group sent an open letter to Yellen, and to the Philadelphia and Dallas boards, demanding more transparency and public engagement.
Marilyn Wimp, a spokeswoman for the Philadelphia Fed, said in an e-mail the bank had received the letter. She declined to comment further. James Hoard, spokesman for the Dallas Fed, didn’t immediately respond to a message seeking comment.
Plosser and Fisher have been among Fed officials favoring raising rates sooner to prevent inflation and financial-instability pressures from building.
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Let cities better help their retirees
In less than 20 years, one in every five Americans will be over the age of 65 and we will live longer than any...
In less than 20 years, one in every five Americans will be over the age of 65 and we will live longer than any generation before us. For those without adequate savings for retirement, those added years will be a time of uncertainty and dependency rather than leisure.
Connecticut is the latest state seeking to stave off this looming crisis in elder poverty, passing legislation to provide access to a state-sponsored retirement plan for the 600,000 Connecticut residents who do not have a plan through their employers. The bill will automatically enroll workers in businesses with five or more workers in a retirement plan overseen by a new quasi-public authority. Connecticut joins California, Illinois, and more than a dozen other states pushing for state-sponsored plans to encourage workers to save for retirement.
The accelerated pace of activity follows decades of wage stagnation that have left the average American worker with just half of what workers saved in the 1970s. Half of those nearing retirement have no retirement savings at all and those that do have savings have only enough to provide a median income of around $400 per month.
At the same time, employers have largely abandoned defined benefit pension plans that once guaranteed a minimum level of security based on salary and length of service, opting instead for plans that put the onus on workers to build up their own retirement accounts. Today, more than half of American workers have no private pension coverage at all.
Those who retire without a pension or sufficient savings will depend largely on Social Security for their retirement income, a system that will grow increasingly burdened as baby boomers retire, leaving fewer workers to cover the costs of each retiree.
This daunting reality has spurred states like Connecticut to act.
Innovation at the state level, however, is currently hindered by the federal Employment Retirement Security Act (ERISA), which generally preempts state action on private sector pensions. State legislatures have had to build language into bills making any plan contingent on an exemption from federal ERISA requirements. This burden creates uncertainty for both workers and state administrators, preventing many states from even exploring the possibility of a plan.
In response, the Department of Labor (DOL) is currently developing a safe harbor rule that would clarify how states can bypass ERISA requirements. The rule would let states develop the retirement security model that best suits their residents, while also learning from the successes and missteps of other state plans.
While the proposed DOL rule is a great first step, it does not go far enough in its present form. The rule is limited to states, but cities such as New York are also considering similar plans. They should be afforded the same opportunity to ensure a secure retirement for their residents.
In developing its rule, the DOL should aim to reach the largest possible number of workers, including those whose state legislatures are unable or unwilling to address retirement security. Including cities also allows for more tailored programs when demographics and industries vary widely across a state.
Preventing an elder poverty crisis will require creative solutions at all levels of government. The DOL should ensure that federal regulations foster that creativity, rather than stifle it.
By ANDREW FRIEDMAN
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Cities Are Saying ‘No’ to ICE by Canceling Their Contracts With the Agency
Cities Are Saying ‘No’ to ICE by Canceling Their Contracts With the Agency
The stunning victory of 28-year-old Democratic Socialist Alexandria Ocasio-Cortez in the New York primary on June 26...
The stunning victory of 28-year-old Democratic Socialist Alexandria Ocasio-Cortez in the New York primary on June 26 pushed the call to “abolish ICE” suddenly and powerfully onto the national stage. (ICE, of course, is the acronym for the Immigration and Customs Enforcement agency.) But even before big-name politicians like Kirsten Gillibrand and Bill de Blasio began taking up the call, a growing anti-ICE rebellion had begun reverberating across city and county legislatures in response to the Trump administration’s brutalizing “zero-tolerance” immigration policy.
Read the full article here.
Citizen Green: First Flint and New Orleans, then North Carolina
Citizen Green: First Flint and New Orleans, then North Carolina
Take it as a given that the state General Assembly will pass legislation to increase teacher pay when it reconvenes for...
Take it as a given that the state General Assembly will pass legislation to increase teacher pay when it reconvenes for the short session on April 25, albeit somewhere below the 5-percent raise Gov. Pat McCrory wants.
Improving teacher salaries is the kind of popular public policy the governor can take to the voters, in addition to the infrastructure bond referendum that passed last month, in his reelection bid. He’s the only one who will have to face voters across the state in November, but the ultra-conservatives in the legislature who are protected by gerrymandering owe McCrory big time after he signed HB 2.
But also expect the emboldened Republican super-majority to aggressively push through a legislative agenda that radically promotes for-profit education while punishing students in poor, low-achieving schools.
The NC School Board Association is closely monitoring a proposal by state Rep. Rob Bryan (R-Mecklenburg) to create a so-called Achievement School District. The proposal, released in the form of draft legislation in January, would yank five low-performing schools across North Carolina from the control of local school boards and place them under the administration of a statewide Achievement School District to be operated by a private company contracted by the state.
The model of states superseding local control of education by turning academically struggling schools over to charters was pioneered in 2003 in Louisiana, where it rapidly expanded in the aftermath of Hurricane Katrina. Tennessee followed suit in 2010, and Michigan got in the game in 2013. Parallel to taking control of local schools, the state of Michigan also placed the city of Flint in receivership, with disastrous consequences when citizens were exposed to lead poisoning from the water in Flint River. It should be obvious that opaque administration and lack of local accountability invites abuse and undermines democracy.
A study by the New York-based Center for Popular Democracy found that takeover districts in Louisiana, Tennessee and Michigan failed to improve test scores, while metrics were “altered from year to year, confounding accountability and transparency.”
The authors wrote, “Additionally, lawsuits and student protests demonstrate that when local oversight is stripped away, children may face harmful practices such as discriminatory enrollment, punitive disciplinary measures, and inadequate access to special education resources. Students suffer in the wake of high teacher turnover and personnel instability brought on by the rushed firing of staff. Finally, we find that a consistent lack of oversight can create an environment rife with fraud and mismanagement, where private interests gain financially while taxpayers, students and teachers are left behind. We conclude that takeover districts actually hinder children’s chances of academic success rather than improving them.”
As further warning that the Republican lawmakers intend to take away control and funding from public education, take it from Bryan Holloway, a former Republican lawmaker who now works as a lobbyist for the NC School Board Association.
A remarkable story published by the Elkin Tribune on March 30 quotes Holloway as telling the Elkin City School Board: “There could be numerous education bills go through in this short session you may not like at all.”
Last year, the state Senate approved legislation to shift funding from public schools to charters, including federal child nutrition funds, even though many charter schools don’t provide free lunch, prompting sharp criticism from many Democratic lawmakers. The House could move on the legislation and present it for Gov. McCrory’s signature in the short session.
If that’s not strange enough, the article also quotes Holloway as saying, “A bill to eliminate school boards throughout the state we’ve been told is going to be introduced. I don’t think it has legs to go anywhere, but because they are brazen enough to even be willing to file it means you’ll probably have to deal with it in the future.”
The General Assembly started down this path in 2014 when they passed a law to give every public school in the state a letter grade from A to F. Predictably, the schools that consistently earn Ds and Fs are the ones that serve communities with concentrated poverty.
Fortunately, teachers and principals see very clearly what our lawmakers in Raleigh are trying to do.
“They are putting a big red X on the schools that already have a big red X on them,” Michelle Wolverton, the principal at Hunter Elementary in Greensboro, told a few intrepid souls who braved the blustery cold for a Rally for Public Education at Greensboro’s Governmental Plaza on April 9. “They have a big red X on them because of poverty. They have a big red X on them because a high percentage of the students are immigrants. They have a big red X on them because of poverty and because the economics are not equal.”
by Jordan Green
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The Problem With Bernie Sanders’ Bold Plan To Aid Puerto Rico
The Problem With Bernie Sanders’ Bold Plan To Aid Puerto Rico
Democratic presidential candidate Sen. Bernie Sanders, I-Vt., holds a town hall meeting at the Luis Muñoz Marin...
Democratic presidential candidate Sen. Bernie Sanders, I-Vt., holds a town hall meeting at the Luis Muñoz Marin Foundation in Trujillo Alto, Puerto Rico, Monday, May 16, 2016. Sanders arrived in Puerto Rico on Monday to talk about the U.S. territory's worsening debt crisis ahead of the June 5 primary.
The race for the Democratic nomination is in its final throes, and Sen. Bernie Sanders (I-VT) and Hillary Clinton are fighting it out for every last remaining delegate. Puerto Rico’s June 5 primary — in which 67 delegates are up for grabs — will carry more political weight than usual, and the campaigns are lavishing attention on the island.
As he campaigned in the territory’s capital on Monday, Sanders laid out a bold proposal to help Puerto Rico dig itself out from $72 billion dollars in debt, but economists and former government officials tell ThinkProgress the plan is legally impossible.
Both Sanders and Clinton have urged Congress to pass a bill giving Puerto Rico the ability to declare bankruptcy and restructure its debt. But Sanders went further this week, demanding that the Federal Reserve act unilaterally to help the island if Congress continues to drag its feet on a bill to restructure the massive debt the Puerto Rican government says it cannot pay.
Ironically, the reforms Congress passed to rein in Wall Street following the 2008 financial crisis — reforms Sanders supported — are part of why the Federal Reserve can’t do what Sanders is now demanding.
“If the Federal Reserve could bail out Wall Street, it can help the 3.5 million American citizens in Puerto Rico improve its economy and lift its children out of poverty,” he said. “Under current law, the Federal Reserve has the authority.”
Some progressive groups, like the Center for Popular Democracy, are voicing support for Sanders’ plan. In an e-mail to ThinkProgress, the director of the CPD’s “Fed Up” campaign said that if the U.S. government could find a way to prop up Wall Street during the 2008 crash, it can do the same for Puerto Rico.
“When the financial crisis hit Wall Street, they used all of their most creative legal minds and institutional power to design solutions that would protect the big banks from collapse; if they wanted to, Fed officials could similarly find appropriate solutions here.”
But other economic experts and former Federal Reserve board members told ThinkProgress that Sanders is mistaken. Ironically, the reforms Congress passed to rein in Wall Street following the 2008 financial crisis — reforms Sanders supported — are part of why the Federal Reserve can’t do what Sanders is now demanding.
“The type of assistance Senator Sanders is asking the Fed to provide would not be legally possible,” said Donald Kohn, who served on the Federal Reserve’s Board of Governors from 2002 to 2010. “[It is] not what the Congress intended. Among other things, [the law] requires that any facility be broadly based and not intended for a particular troubled borrower.”
The reforms in the 2010 Dodd-Frank bill sharply curtailed the central bank’s ability to make emergency loans to struggling banks, partnerships, or corporations in order to keep them afloat. While questioning whether the Puerto Rican government counts as a bank, partnership, or corporation in the first place, Kohn also cited another section of the law saying the Federal Reserve must “prohibit borrowing from programs and facilities by borrowers that are insolvent,” as Puerto Rico will soon be, and that emergency lending powers are “not to aid a failing financial company.”
The Federal Reserve has given Congress the same message, and other fiscal policy experts agree. University of Pennsylvania professor Peter Conti-Brown, an expert on the Fed’s legal authority, told the Washington Examiner that Dodd-Frank “specifically forbids this kind of targeted bailout,” while Cato Institute director of financial regulation studies Mark Calabria added that “the intent and clear language forbids ‘one-off’ rescues to single entities.”
Warren Gunnels with the Sanders campaign argued in an e-mail to ThinkProgress that because only a fraction of Dodd-Frank’s reforms have been finalized and implemented, the Federal Reserve can still step in. “The Federal Reserve has the authority to facilitate an orderly restructuring of Puerto Rico’s debt through a reverse auction process that will lead to major haircuts for Wall Street vulture funds,” he said.
Still, most experts say it falls on Congress to act to rescue Puerto Rico. House Republicans introduced a bill this week that would allow Puerto Rico to restructure its debt, but would also implement an un-elected control board to oversee the island’s budget and cut the minimum wage from $7.25 to $4.25 an hour for workers under 25.
We don’t need more austerity for children in Puerto Rico who are going hungry.
Sanders blasted the proposal as undemocratic and a further burden on the poor. “We need austerity for billionaire Wall Street hedge fund managers who have exacerbated the financial crisis in Puerto Rico. We don’t need more austerity for children in Puerto Rico who are going hungry,” he said.
Regardless of the feasibility of Sanders’ Federal Reserve proposal, his pro-sovereignty and anti-austerity message resonated with Puerto Ricans on and off the island. Two prominent officials, including the mayor of the capital of San Juan, rescinded their endorsements for Hillary Clinton after Sanders’ visit, while other community leaders sang his praises.
“Bernie Sanders is the only candidate dedicated to the people of Puerto Rico,” said Jose Nicolas Medina, an attorney in San Juan. “Much of our problems are due the policies of Clinton. As first lady and as Senator, Hillary did nothing to help the situation of Puerto Rico. So we punish the Clintons with our votes.”
Others watching Sanders’ speeches told ThinkProgress they were inspired by his promise to allow Puerto Ricans to vote for either independence or statehood during his first year in the White House, and his characterization of the current U.S.-Puerto Rican relationship as “colonial-like treatment.”
“To have a candidate for president finally admit that Puerto Rico is a colony is historic,” said Phillip Arroyo, the former chair of the Young Democrats of America’s Hispanic Caucus and a Puerto Rican living in Florida. “He has planted a seed in the mind of the new generation. It will ultimately bear fruit regardless of whether he’s elected.”
BY ALICE OLLSTEIN
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CPD Director of Research Connie Razza on Melissa Harris-Perry
How Pension Plans are at Risk Melisa Harris-Perry - March 23, 2014 - Lynnette Khalfani-Cox, Connie Razza, Arun Gupta...
Melisa Harris-Perry - March 23, 2014 - Lynnette Khalfani-Cox, Connie Razza, Arun Gupta and Karen Friedman takes a closer look at Detroit’s pension funds as the city struggles with bankruptcy and the growing retirement savings crisis nationwide.
How CEO Pensions Compare to Average Workers' PensionsMelissa Harris-Perry - March 23, 2014 - According to a recent survey, CEO pensions are worth at least 239 times more than the average employee's 401(k) at ten of the biggest U.S. companies.
Why Cities are Watching Detroit
Melissa Harris-Perry - March 23, 2014 - The MHP table discusses if other American cities could be on the same road as Detroit.
Starbucks vows to do more to ease barista schedules
An internal memo from a Starbucks executive this week urged store managers to "go the extra mile" to improve workers'...
An internal memo from a Starbucks executive this week urged store managers to "go the extra mile" to improve workers' schedules.
The letter was distributed on Tuesday and refers to a New York Times story that was set to be published the following day titled, "Starbucks falls short after pledging better labor practices."
The Times story referred to a survey by the nonprofit advocacy group Center for Popular Democracy.
Based on interviews with 200 baristas in 37 states, the survey says Starbucks "is not living up to its commitment to provide predictable, sustainable schedules to its workforce."
In 2014, Starbucks said it was changing its policies telling managers to post schedules at least a week in advance and not make store employees work an opening and closing shift back-to-back.
In this week's memo, Cliff Burrows, Starbucks (SBUX) group president of the U.S. and Americas, said the findings of the new survey "suggest" that neither commitment was being met -- "contrary to the expectations we have in place."
In his letter, Burrows urges managers to improve scheduling for coffee baristas, who the company calls partners.
"To our store managers, I want to stress that as we continue to evolve and improve the usability of our system, we have to go the extra mile to ensure partners have a consistent schedule -- free of back-to-back close and open shifts that are less than 8 hours apart -- that is posted 2 weeks in advance," he wrote.
Source: CNN Money
Latinos Presentan La Mayor Tasa De Mortalidad Por Accidentes En Industria De La Construcción De Nueva York
Latinos Post – October 25, 2013 - La población hispana e inmigrante que es empleada en el sector de la...
Latinos Post – October 25, 2013 -
La población hispana e inmigrante que es empleada en el sector de la construcción del estado de Nueva York es el grupo étnico más vulnerable a los accidentes fatales en su lugar de trabajo, según reveló este jueves 24 de octubre un reporte realizado por el Centro por la Democracia Popular.
De acuerdo con El Diario NY, Los datos arrojados por el estudio, muestran que entre 2003 y 2011, del total de muertes por caídas y accidentes en las construcciones registrados en La Gran Manzana, el 60% de los casos los fallecidos resultaron ser hombres hispanos y/o inmigrantes.
Se trata de una cifra alarmante ya que 75 trabajadores de la construcción mueren por accidentes de manera anual en el estado de Nueva York, según dio a conocer la periodista Blanca Rosa Vílchez a la cadena de noticias de Univisión.
La fuente señala que en Nueva York el 41% de los trabajadores del sector construcción son hispanos. Sin embargo, el informe dado a conocer este jueves demostró que el 74% de las muertes por accidentes corresponden al mismo grupo étnico.
Un problema de seguridad
El pasado 24 de septiembre, trabajadores de la construcción en Brooklyn se manifestaron para exigir mejoras en las condiciones de seguridad en sus lugares de trabajo, luego de que reportaran una importante alza en los accidentes relacionadas con la escasa inversión en esta materia que las compañías constructores ofrecen, lo que ha causado graves accidentes que en muchos casos han cobrado la vida de trabajadores que reciben un salario mínimo.
En su momento Diario NY dio a conocer que los obreros se manifestaron en el 227 de la avenida Carlton, en Fort Greene, lugar en el que el 10 de septiembre un trabajador de 62 años perdió la vida al venirse abajo el techo de uno de los apartamentos en los que trabajaba.
De acuerdo con los manifestantes, las compañías contratistas de Nueva York compran materiales de mala calidad con tal de ahorrar dinero y no invierten en cursos de seguridad para sus trabajadores, lo que deja a los constructores en una situación peligrosa.
Miedo a denunciar por falta de documentación legal
La comunidad latina que trabaja en la construcción es doblemente vulnerable a esta situación, ya que muchos de los obreros son inmigrantes indocumentados, por lo que en caso de sufrir algún accidente prefieren no denunciar a la empresa constructora por miedo a ser deportados o despedidos.
Por si esto fuera poco, en caso de reportar violaciones a las normas de seguridad, las multas a las compañías constructoras son por montos muy bajos, lo que facilita que se siga omitiendo la inversión en seguridad en los lugares de trabajo.
Según destaca Univisión, las multas a las que se enfrentan las constructoras no superan los 2 mil dólares en caso de accidente, y los 12 mil en caso de muerte de un trabajador, una cifra que refleja la dimensión de los riesgos con los que los obreros de la construcción deben trabajar todos los días.
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Cash Bail Fuels the Prison Industrial Complex. But We Can Stop It.
Cash Bail Fuels the Prison Industrial Complex. But We Can Stop It.
From 2015 to 2018, the homeless population in Los Angeles rose from less than 29,000 to 59,000. Many of those homeless...
From 2015 to 2018, the homeless population in Los Angeles rose from less than 29,000 to 59,000. Many of those homeless Angelenos were formerly incarcerated, and many will again be incarcerated for being homeless. Yet, according to the Center for Popular Democracy’s “Freedom to Thrive” report, Los Angeles spends 25.7% of its general fund budget on policing compared to a mere 3 percent to support nondepartmental “General City Purposes,” which includes city council spending on jobs, youth, homeless services, and substance abuse programs.
Read the full article here.
Wall Street Stands to Make a Killing From Building Trump's Border Wall
Wall Street Stands to Make a Killing From Building Trump's Border Wall
The border wall with Mexico, Donald Trump's proposed monument to nativism and bigotry is, according to an October story...
The border wall with Mexico, Donald Trump's proposed monument to nativism and bigotry is, according to an October story from NBC News, at least 10 months away from "meaningful construction." It currently has no funding from Congress nor from Mexico, contrary to reports from Trump's fever dreams. This reality hasn't dimmed the visions of dollar signs in the eyes of America's largest corporations, which, according to a new report from Make the Road New York, the Center for Popular Democracy, New York Communities for Change, and the Partnership for Working Families, are behind a company making one of the wall prototypes and stand to benefit handsomely.
Read the full article here.
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