Time for an accountable Fed
Time for an accountable Fed
Andrew Levin, professor at Dartmouth College and former special adviser to former Federal Reserve Chair Ben Bernanke...
Andrew Levin, professor at Dartmouth College and former special adviser to former Federal Reserve Chair Ben Bernanke and then-Vice Chair Janet Yellen, released a proposal for reform of the Federal Reserve Board's governing structure in a press call sponsored by the Fed Up campaign. The proposal has a number of important features, but the main point is to make the Fed more accountable to democratically elected officials and to reduce the power of the banking industry in monetary policy.
Under its current structure, the banks largely control the 12 Federal Reserve district banks. This matters because the presidents of these banks are part of the Federal Reserve Board's Open Market Committee (FOMC) which determines monetary policy. At any point in time, five of 12 district bank presidents will be voting members of the FOMC, but all 12 take part in the discussion. The voting presidents will typically be outnumbered by the seven Federal Reserve Board governors, who are appointed by the president and approved by the Senate, although there have been just five sitting governors for the last two years, as the Senate has refused to consider President Obama's nominees.
There is no obvious reason why the banking industry should have special input into the country's monetary policy. This would be comparable to reserving seats on the Federal Communications Commission's board for the cable television industry. While there is no way to prevent an industry group from trying to influence a government regulatory body, in all other cases, they at least must do so from the outside. It is only the Fed where we allow the most directly affected industry group to actually have a direct voice in the policies determined by its regulatory agency.
This is an especially important issue because the Fed's policies are so central to the health of the economy. If the Fed's fears over inflation lead it to raise interest rates to slow the economy and reduce the rate of job creation, there is little that Congress will be able to do to counteract the Fed's actions. For example, if the Fed wants to prevent the unemployment rate from getting below 4.5 percent unemployment, there will be little that Congress and the president can do to get unemployment lower. In that case, the Fed may have needlessly be keeping millions of people out work — disproportionately affecting minorities and less-educated workers — because of a possibly mistaken view of the economy's limits. Furthermore, by deliberately weakening the labor market, the Fed will be keeping tens of millions of workers from having the bargaining power they need to secure wage gains.
While governors who are appointed by democratically elected officials are likely to recognize the importance of reducing unemployment and balance it against the risk of inflation, the district bank presidents are likely to be less concerned about unemployment. It is worth noting that all the dissenting votes calling for more a hawkish stance since the start of the Great Recession have been cast by bank presidents. It is likely that the need to maintain the support of the bank presidents on the FOMC has prevented the Fed from being more aggressive in trying to stimulate the economy and reduce unemployment.
It would be good to see the presidential candidates address the proposal put forward by Levin and the Fed Up campaign. There are very few areas of government that are more important in people's daily lives than the Fed's monetary policy. It literally determines how many people will hold jobs and has a huge effect on workers' wages.
While it would not be appropriate for the president or other politicians to try to micromanage monetary policy, they certainly should be setting its general course. This is analogous to the relationship with the Food and Drug Administration (FDA). No one expects Congress or the president to decide which drugs get approved; however, if the FDA were to allow two years to pass in which it approved no new drugs, it would be entirely appropriate for Congress and the president to question its conduct. The same would apply if the FDA were found to regularly approve drugs that turned out to be harmful.
In the case of the Fed, it is appropriate for the presidential candidates to be telling voters what sort of people they would appoint to the Fed. It is also appropriate for them to comment on its governance structure, which can only be changed by an Act of Congress, which would have to be signed by the president.
Baker is co-director of the Center for Economic and Policy Research (CEPR).
By Dean Baker, contributor
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Milwaukee faces historic opportunity to transform schools. Here’s how.
Milwaukee faces historic opportunity to transform schools. Here’s how.
Milwaukee spends a greater fraction of its general fund on policing than many other major cities. A 2017 report from...
Milwaukee spends a greater fraction of its general fund on policing than many other major cities. A 2017 report from the Center for Popular Democracy, Law for Black Lives, and Black Youth Project 100, compared 11 other cities and found they devoted 25 to 40 percent of their general fund expenditures to policing — Milwaukee spent 47 percent, or nearly $300 million.
Read the full article here.
Ciudanía en Nueva York – Importancia de las Cooperativas de Trabajo
Comunidad Y Trabajadores Unidos - July 15, 2014 - El debate sobre los derechos de migrantes parece estar tan polarizado...
Comunidad Y Trabajadores Unidos - July 15, 2014 - El debate sobre los derechos de migrantes parece estar tan polarizado y por eso no vimos mucho progreso en la reforma migratoria ni en asegurar los derechos de los trabajadores. En Nueva York podemos ver cambios que muestran algunas oportunidades para los migrantes a nivel estatal. En este programa vamos a enfocarnos en dos de los cambios: la legislación que ofrece ciudadanía en Nueva York y el avance de cooperativas de trabajo para trabajadores.
Ciudanía en Nueva York
Hasta ahora el debate sobre la reforma migratoria solo pasó a nivel federal pero la legislación que se desarrolló recientemente, trajo el debate a nivel estatal. La legislación que se desarrolló ofrece ciudanía para en Nueva York para los migrantes y Andrew Friedman habla sobre el significado de esta ley. Andrew Friedman es el co-director del centro de democracia popular y es parte del movimiento que empuja para esta legislación. Friedman habla sobre por qué Nueva York debería desarrollar una legislación que ayude a los migrantes y sobre el papel importante que juegan los migrantes en Nueva York.
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Connecting The Dots Between Banks and Immigrant Detention
Connecting The Dots Between Banks and Immigrant Detention
July 26 was the deadline by which the government was ordered by a judge to reunite all immigrant children separated...
July 26 was the deadline by which the government was ordered by a judge to reunite all immigrant children separated from their parents in Trump's so-called zero-tolerance border policy earlier this year. But of the approximately 2,500 children that were separated 711 still remain without their parents after the deadline, lawyers for the government said. Of those, 431 cases remain where the parents were deported before getting their children back and the rest were "ineligible" to be returned as per the government. Meanwhile protesters across the country have continued confronting ICE offices and other institutions involved in the immigrant crackdown including banks that are financing private prisons for immigrants. JPMorgan Chase, Wells Fargo, and BlackRock, have been targeted by activists this week after the Center for Popular Democracy released a report called Bankrolling Oppression. Eight people were arrested while protesting outside the home of JP Morgan CEO Jamie Dimon.
Watch the video here.
Legal Experts Pan US for Disappointing Human Rights Record
MSNBC - April 17, 2015, by Willa Frej -The United States has a record of human rights abuses despite its position as a...
MSNBC - April 17, 2015, by Willa Frej -The United States has a record of human rights abuses despite its position as a leading voice on human rights issues worldwide, legal experts said at a forum here on Friday, from water shutoffs in Detroit and widespread police brutality to Guantanamo Bay and drone strikes. The alleged abuses include asserting immunity from and not ratifying certain international rights laws and treaties, not joining the International Criminal Court, and supporting governments with abysmal rights records of their own.
Experts at the forum, which took place at Hunter College and previewed the country’s upcoming human rights review by the United Nations, acknowledged that the U.S. is not typically considered an egregious human rights abuser. But a simple look beneath the surface, panelists said, uncovers a staggering range of human rights issues:
Lack of healthcare. Despite the Affordable Care Act’s success in promoting healthcare access, affordable health insurance is not available in many states and not accessible to undocumented immigrants. In a state like Texas, where restrictions sharply limit access to reproductive health, Latina women are twice as likely to contract cervical cancer and 30% more likely to die from it, Katrina Anderson from the Center for Reproductive Rights said.
Water shutoffs. In Detroit, 14,000 households and 38,000 people were without water at the end of 2013, according to Rob Robinson of the National Economic & Social Rights Initiative, after the city implemented a program that shut off water in households that couldn’t pay their bills. More 80% of the city’s population is African American, he added, and 40% live below the poverty line.
Police brutality. The U.S. is now experiencing what it’s like to be both over-policed and under-protected, the Center for Popular Democracy’s Marbre Stahly-Butts argued. From the gripping videos capturing instances of police violence to the ensuing national outrage, there’s a new level of awareness around law enforcement abuses.
The response, which has largely centered around the implementation of body camera use by police, has felt inadequate to many, Stahly-Butts said, especially given the billions of dollars allocated to fighting terrorism overseas. “Why no war on racism?” she asked.
Gwen Carr, the mother of Eric Garner, who died as a result of a police chokehold last year, put a human face to the issue. “If there’s a crime, there should be accountability, whether you’re wearing blue jeans, a blue business suit, or a blue uniform,” she said. His tragedy, she said, was her motivation for speaking out on behalf of human rights, specifically urging police to abide by the same laws they enforce.
Indefinite detention and drone strikes. Despite an early push by President Obama to close Guantanamo Bay, 122 men remain in the prison without charge or trial. Fifty-six of these men have been cleared for transfer out of the prison, but just five transfers have taken place so far in 2015. In another counterterrorism offensive, the Obama administration has expanded the drone strike program in Pakistan and Yemen. The Center for Constitutional Rights’ Baher Azmy told the audience that the program has killed more than one thousand civilians since 2002.
Out-of-control surveillance. The U.S. government’s large-scale data dragnet, revealed by former NSA contractor Edward Snowden in 2013, is inconsistent with the universal Declaration of Human Rights, according to Faiza Patel, a co-director of the Brennan Center’s Liberty and National Security Program. The “collect-it-all” approach to surveillance eviscerates privacy, Patel argued, by allowing the government to listen in on Americans’ phone calls and read text, email and other online messages without sufficient oversight.
Other speakers were more hopeful. Catherina Albisa, a human rights lawyer with the National Economic & Social Rights Initiative, said the U.S. began as a fierce champion of human rights and described an “emerging landscape” of young people and protesters committed to economic justice through human rights. But government commitments to those rights have languished, Albisa argued, noting America’s “manufactured” water crisis and the closing of abortion clinics in Texas as evidence of deteriorating rights for U.S. residents.
Maria McFarland Sanchez-Moreno, co-director of Human Rights Watch’s U.S. Program, went further, suggesting the U.S. government undermines human rights standards. The U.S. is an active participant in the United Nation’s human rights review process, she explained, but the last set of recommendations resulted in zero domestic reforms. That lack of responsiveness could undermine the review’s credibility going forward, she warned.
The U.S. is set to undergo its second United Nations review in Geneva, Switzerland, on May 11.
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How to Build an Anti-Poverty Movement, From the Grassroots Up
The Nation - January 14, 2014, by Greg Kaufman - With more than 46 million people living below the poverty line,...
The Nation - January 14, 2014, by Greg Kaufman - With more than 46 million people living below the poverty line, struggling to survive on $19,530 or less for a family of three, and with more than one in three Americans living on less than twice that amount, scrimping to pay for basics, this country will require a broad-based movement to reverse the decades of failed national imagination.
The groups listed below are all worth watching as they do just that: galvanize communities, arm activists with information, and fight for living-wage jobs, stable housing and a strong safety net that catches people when they fall.
1. Coalition of Immokalee Workers: If you want to see what is possible through grassroots organizing by those who are most affected by poverty—or what it means to set a seemingly unreachable goal and persevere, or understand your opposition and find new ways to challenge it—look no further than the Coalition of Immokalee Workers.
When the CIW was founded in 1993, it was as a small group of tomato farmworkers in Immokalee, Florida, trying to end a twenty-year decline in their poverty wages. Who is historically more powerless than farmworkers? Yet today, most major buyers of Florida tomatoes have signed agreements with the CIW to pay an extra penny per pound for tomatoes. These agreements have resulted in over $11 million in additional earnings for the workers since January 2011.
In addition, through its Fair Food Program, the CIW has persuaded corporate buyers to purchase tomatoes only from growers who sign a strict code of conduct that includes zero tolerance for forced labor or sexual assault. As a result, the majority of growers (those accounting for 90 percent of the tomato industry’s $650 million in revenue) have agreed to that code. If major violations occur but don’t get corrected—and there’s a twenty-four-hour hotline for worker complaints—corporations will not buy from those growers.
The Fair Food Program serves as a new model of social responsibility, and its influence is clear in the recently signed agreement between retailers and factory owners in the Bangladesh garment industry. Follow the CIW not only to get involved with farmworkers but for a sense of what can be achieved through strategic, fearless organizing.
2. Center for Community Change: For forty-five years, the Center for Community Change has worked with low-income communities and local grassroots organizations to fight poverty. The CCC has intentionally worked behind the scenes, keeping the spotlight focused on members of the communities instead and organizing around issues ranging from voter registration, affordable housing and community development to, more recently, immigration reform, healthcare and retirement security.
Executive director Deepak Bhargava says, “We have chosen as our great task in this next era to build a nationwide movement against poverty and for economic justice. The core issue is jobs—making sure that good jobs are available and accessible to everyone.” The CCC plans to work with grassroots organizations at the local and state levels, and then form coalitions at the national level, to demand policies that create good jobs with good wages. Its goal, Bhargava says, is to help build “a massive, diverse, boisterous, energized and organized social movement.”
3. Children’s HealthWatch: This country’s political leaders talk a good game about their commitment to the well-being of children, but in too many cases, their actions tell a far different story. That story is captured, in part, by the pediatricians and healthcare professionals at Children’s HealthWatch.
CHW collects data at pediatric clinics and hospitals to show the real impact of public policy choices on the health, nutrition and development of children up to the age of 4. CHW research has shown, for example, that children receiving SNAP (food stamps) are less likely to be food insecure, underweight or at risk for developmental delays than their peers who are likely eligible for SNAP but not receiving it. CHW has also demonstrated the importance of affordable housing for children’s health, showing that children in households that move frequently or fall behind on rent are significantly more likely to be underweight, in fair or poor health, and at risk for developmental delays than their stably housed peers. And CHW has examined energy insecurity, showing that children in families struggling to afford utilities and keep their homes sufficiently heated or cooled are more likely to be food insecure, hospitalized at some point since birth, or to have moved twice or more in the past year.
By using science to evaluate whether our policies demonstrate a commitment to children and then proposing alternatives, CHW’s research guides activists past the bombast and rhetoric of today’s policy-makers.
4. Half in Ten: This campaign—which I am currently advising—is a project of the Coalition on Human Needs, the Center for American Progress Action Fund, and the Leadership Conference on Civil and Human Rights, and it has 200 partner organizations across the country. Its mission is simple: to cut poverty in half over ten years, just as we did between 1964 and 1973.
Through its comprehensive annual report, Half in Ten tracks the country’s progress toward this goal and outlines the many policies that could help slash poverty. In its 2007 inaugural report, Half in Ten demonstrated how poverty could be reduced by 26 percent simply by passing a modest increase in the minimum wage (to $8.40 at the time), expanding the earned-income tax and child tax credits, and providing affordable childcare to low-income families, among other proposals. Our leaders failed to make those recommended policy changes, and then the economy crashed, burying ever more Americans in deeper holes.
But Half in Ten keeps pushing toward its goal. In addition to policy analysis, the campaign mobilizes local groups in the field to speak out and take action during congressional policy debates. The campaign also works through its “Our American Story” project to ensure that low-income people have opportunities to tell their stories to the media, policy-makers and other advocacy groups. Follow Half in Ten to get a sense of the anti-poverty policy landscape, take action at the federal level, and hear powerful stories about individuals and families who are struggling to survive in this broken economy.
5. Occupy Our Homes/Home Defenders League: Many of us would like to believe that the foreclosure crisis is over, but the fact is that far too many people are still losing their homes because banks refuse to modify mortgages, fail to return phone calls, or simply (and scandalously) file fraudulent paperwork. If my family or neighbors were ever in a dire situation with a bank that refused to work with them, Occupy Our Homes and the Home Defenders League (HDL) are the allies I would want on my side.
With community partners in more than twenty-five cities and states, these activists help homeowners organize protests, call-ins to bank officials, and other actions to cut through the bureaucratic roadblocks that individuals and families encounter when they deal with the banks. They also show up with neighbors to stop forced evictions.
In May, Occupy and HDL mobilized hundreds of people for a sit-in at the Justice Department, successfully shaming the feds and playing a key role in restarting stalled litigation against Wall Street. They are also collaborating with dozens of local groups, large and small, to rebuild the wealth stripped out of communities of color by pressing cities to use their power of eminent domain to do what the banks have refused to do: enact wide-scale principal reductions.
6. Center on Budget and Policy Priorities: As we approach the fiftieth anniversary of the War on Poverty, conservatives are deploying bogus “studies” and revisionist history to attempt to discredit programs that are not only vital to people who are struggling, but have been proven effective in preventing much higher poverty rates. The Center on Budget and Policy Priorities does a forceful job of countering this misinformation with analyses that—tellingly—conservatives rarely challenge.
During policy debates about programs like SNAP, TANF (welfare), healthcare, housing, Social Security, disability insurance, Medicaid, Medicare and other domestic priorities, you can count on CBPP experts to provide vital, clear-eyed analysis of how government programs work. Follow the work of policy wizards like Arloc Sherman, LaDonna Pavetti, Liz Schott, Jared Bernstein, Robert Greenstein, Douglas Rice, Kathy Ruffing and others to get the information you need to see through the spin, misinformation and outright lies about key policies that combat poverty.
7. Jobs With Justice: For twenty-six years, Jobs With Justice has built powerful coalitions with labor, community, student and faith leaders to protect and advance the rights of working people. Most recently, Jobs With Justice has played a pivotal role in the national Caring Across Generations campaign, which helped secure historic overtime and minimum-wage protections for homecare workers. Its Debt-Free Future campaign has mobilized students and concerned citizens to make college more affordable, expose abusive private lenders and win debt relief for working families. Jobs With Justice is also a critical partner in challenging the exploitative labor practices of employers like Walmart and the large fast food chains, and in protecting the right of immigrant workers to organize without threat of retaliation.
With its savvy use of strategic communications, original research and on-the-ground mobilizing, Jobs With Justice is challenging the structural problems of our economy in creative and effective ways.
8. Western Center on Law and Poverty: Translating grassroots activism into legislative victories will require strong inside/outside partnerships at the local, state and federal levels. One group that has mastered this delicate dance is the Western Center on Law and Poverty in Sacramento, California.
California is the seat of some of the poorest congressional districts in the nation, and it’s also home to more poor Americans than any other state. For over a decade, the state government has been dominated by budget austerity—California was the epicenter of the “no tax” pledge—as well as the kind of budget brinkmanship that now plagues Congress. But in part through the Western Center’s leadership, advocates have moved from simply defending against cuts to articulating a shared vision for a more vibrant, inclusive economy.
The Western Center has spearheaded new alliances among women, immigrants, the working poor, people without homes, the formerly incarcerated, food stamp recipients, labor union members, college students, youth and others, creating new opportunities for low-income people to get involved in effecting change. The result has been a series of notable victories, such as requiring call centers serving Californians who need public assistance to be located in-state in order to create jobs; restoring dental care through Medicaid; enacting protections against excessive bank fines or fees; introducing a Homeless Bill of Rights to outlaw the criminalization of homelessness; and protecting SNAP from federal cuts. The Western Center and its allies have also defended against bad policy proposals like the ALEC-inspired legislation to drug-test public assistance applicants. Follow this group to see how diverse coalitions get results at the state level.
9. Center for Hunger-Free Communities, Witnesses to Hunger: Founded in Philadelphia in 2008, Witnesses to Hunger is a research and advocacy project led by mothers and other caregivers of young children who have experienced hunger and poverty. Through photography and testimonials, Witnesses advocates for change at the local, state and national levels. There are now more than eighty Witnesses in various cities, including Philadelphia, Camden, Boston and Baltimore. (A new chapter in Sacramento is in the works.) In addition to lobbying Congress on issues like food stamps, welfare and affordable housing, Witnesses is vocal in its insistence that people living in poverty be included in conversations among advocates and political leaders in Washington, where low-income people are too often talked about but never heard. Follow this group to learn about poverty and hunger—which policies help, which policies harm—and to work directly alongside those living in poverty.
10. NETWORK: While the real power of an anti-poverty movement will come from the grassroots, a national leader who mobilizes people of faith and speaks with prophetic authority can play a powerful role—especially since the opposition so often cites Scripture as a justification for stripping the safety net.
Sister Simone Campbell and NETWORK, a Catholic social justice lobby, captured the attention of millions of Americans as well as the mainstream media with their 2012 “Nuns on the Bus” Tour challenging Congressman Paul Ryan’s reckless budget proposals. Since then, Sister Simone has proved that she can not only tap into a network of progressive faith-based organizations, but also respond effectively to the absurd proposition that charities and religious institutions can address the needs that arise from a broken economy on their own, without the help of government resources. What’s more, she was masterful during Ryan’s hearing on the War on Poverty, eloquently batting away assertions that social programs create dependence and that the minimum wage should be banned, as well as challenges to her own standing as a Catholic.
While an anti-poverty movement will need nonviolent civil disobedience and avenues to express anger and despair, Sister Simone and NETWORK have shown that it’s possible to beat the opposition at its own game.
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Retailers Discover That Labor Isn't Just a Cost
For the past couple of decades, retailing in the U.S. has -- with some notable exceptions -- been a vast experiment in...
For the past couple of decades, retailing in the U.S. has -- with some notable exceptions -- been a vast experiment in minimizing labor costs.
At the 2009 annual convention of the National Retail Federation, though, Charles DeWitt noticed the beginnings of a shift. "Retailers started coming up to me and saying, 'We can't get any more out of this cost stone,'" recounted DeWitt, vice president of business development at workforce-management-software maker Kronos.
Since then, this change in attitude has become the stuff of business headlines. Most notably, Wal-Mart, the retailer that set the cost-cutting tone in the 1990s, has been raising wages and spending more on training. There's surely a cyclical element at work here -- as the unemployment rate drops, it's harder for retailers to find workers. There's also a political element -- bad press and minimum-wage campaigns must have some effect on corporate behavior.
But the really intriguing possibility is that retailers, in their technology-driven rush to optimize operations during the past two decades ("rocket science retailing," one Wharton School operations expert dubbed it) were actually failing to optimize labor. Their systems measured it only as a cost, and didn't track the impact of low wages, part-time work and unpredictable work schedules on sales and profits. Now some retailers are trying to fix that.
One big set of targets are the scheduling systems that have allowed retailers to ever-more-closely match staffing to customer traffic, but in the process wrought havoc with many workers' lives by making their schedules so unpredictable. Jodi Kantor gave a face to this last year with a compelling New York Times account of the chaotic life of a single-mom Starbucks barista.
Kronos supplies Starbucks' scheduling software, and DeWitt was quoted in the Times article describing its workings as "like magic." So it was a little surprising to see him on stage last week at O'Reilly Media's Next:Economy conference, nodding pleasantly and occasionally chiming in as a Starbucks barista, a labor activist and a journalist described the horrors inflicted by scheduling software.
When I told him afterward that I was surprised he wasn't more defensive, DeWitt said, "I'm more of a math guy, an optimization guy. This is a parameter to be optimized." It's also a business opportunity. "We are in early-stage investigations with very big customers," DeWitt went on. "The plan is to go in and suck all these things out of the database and work with them to customize metrics."
The idea is to figure out how dynamic scheduling and other labor practices affect metrics such as absenteeism, turnover and sales. Right now a lot of retailers just don't know. Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy and the labor activist who shared the stage with DeWitt, recalled a conversation she had with an executive at a big retailer at last year's National Retail Federation convention. "I said, 'These schedules cost you in terms of turnover.' She said, 'I’m in operations. That’s HR.'"
That's not true everywhere. Here's Stuart B. Burgdoerfer, chief financial officer of L Brands, the retailer that includes the Victoria's Secret and Bath & Body Works chains, speaking at the company'sannual investor day this month:
As we looked at the data, we just had too many people working too few hours per week. And the trouble with that or the opportunity with that is how well can they really know your business, how invested are they in us, or we in them, if they're only working a few hours per week and their turnover rate is very high?
And so we see the opportunity to have a more knowledgeable, more engaged, more effective and productive associate. When she's working, typically she is working more hours per week. So that's the opportunity. And we think it's a significant one. Really do.
Recent academic work backs this up, to a point. Researchers such as University of Chicago social psychologists Susan Lambert and Julia Henly and Pennsylvania State University labor economist Lonnie Golden have been documenting the extent and social costs of irregular scheduling. Meanwhile, operations experts at business schools have been trying to identify labor practices that maximize sales and profits.
The best known of these is probably the "good jobs strategy" outlined by Zeynep Ton of the Massachusetts Institute of Technology, first in a2012 Harvard Business Review article and then in a 2014 book. Ton studied low-cost, high-wage retailers such as Costco, Trader Joe's, Oklahoma-based convenience-store chain QuikTrip and Spanish supermarket chain Mercadona and concluded that they operated in a virtuous cycle in which highly trained, autonomous, full-time employees working with a limited selection of products drove high performance.
There's a tendency, upon hearing accounts such as Ton's (she also spoke at the Next:Economy conference), to wonder why every retailer doesn’t do that. One reason is that the limited-selection approach can't work for everybody. Another is that, as my Bloomberg View colleague Megan McArdle wrote last year, if every retailer paid like Costco, many of Costco's labor advantages would disappear. And finally, while some retailers surely have hurt themselves in their zeal to optimize labor, the move away from full-time retail jobs and toward staffing that's closely matched to customer demand hasn't been totally irrational.
In one recent study, Saravanan Kesavan, Bradley R. Staats and Wendell Gilland of the University of North Carolina looked at labor practices at a large (unidentified) retail chain. Their hypothesis was that the use of temporary and part-time workers would be linked with per-store sales in an inverted U-shaped curve -- with sales at first rising as the percentage of temps and part-timers rose, but eventually falling.
The data backed them up. To maximize sales, the optimal share of temp workers was 13 percent and part-timers 44 percent. But those percentages were both higher than the retailer's current averages of 7 percent and 32 percent. Overall, hiring more part-timers and more temps was likely to lead to higher sales.
The data-driven reexamination of labor practices by big retailers will surely lead to some improvements in how workers are treated and paid. I don't get the impression that, by itself, it will lead to all retail jobs becoming good jobs.
Source: Bloomberg
The Federal Reserve Board's Plan to Kill Jobs
Truthout - March 2, 2015, by Dean Baker - There is an enormous amount of political debate over various pieces of...
Truthout - March 2, 2015, by Dean Baker - There is an enormous amount of political debate over various pieces of legislation that are supposed to be massive job killers. For example, Republicans lambasted President Obama’s increase in taxes on the wealthy back in 2013 as a job killer. They endlessly have condemned the Affordable Care Act as a jobs killer. The same is true of proposals to raise the minimum wage.
While there is great concern in Washington over these and other imaginary job killers, the Federal Reserve Board is openly mapping out an actual job killing strategy and drawing almost no attention at all for it. The Fed’s job killing strategy centers on its plan to start raising interest rates, which is generally expected to begin at some point this year.
The Fed’s plans to raise interest rates are rarely spoken of as hurting employment, but job-killing is really at the center of the story. The rationale for raising interest rates is that inflation could begin to pick up and start to exceed the Fed’s current 2.0 percent target, if the Fed doesn’t slow the economy with higher interest rates.
Higher interest rates slow the economy by discouraging people from borrowing to buy homes or cars. They will also have some effect in discouraging businesses from investing. With reduced demand from these sectors, businesses will hire fewer workers. This will weaken the labor market, which means workers have less bargaining power. If workers have less bargaining power, they will be less well-situated to get pay increases. And if wages are not rising there will be less inflationary pressure in the economy.
The potential impact of Fed rate hikes on jobs is large. Suppose the Fed raises interest rates enough to shave 0.2 percentage points off the growth rate, say pushing growth for the year down from 2.4 percent to 2.2 percent. If we assume employment growth drops roughly in proportion to GDP growth, this would imply a reduction in the rate of job growth of almost 10 percent. If the economy would have otherwise created 2.4 million jobs over the course of the year, the Fed’s rate hikes would have cost the economy more than 200,000 jobs in this scenario.
For comparison purposes, we are having a big fight over the Keystone pipeline. The proponents of the pipeline point to the jobs created by building a pipeline as an important justification, even if the oil being pumped through the pipeline may cause enormous damage to the environment. According to the State Department’s analysis, building the pipeline would create 21,000 for two years. This pipeline related jobs gain has been widely touted in the media and is supposed to make it difficult for many members of Congress to go along with President Obama in opposing Keystone.
Yet, the Fed can easily destroy ten times as many jobs with a set of interest rate hikes this year with its actions passing largely unnoticed. In fact, the impact of Fed interest rate hikes on jobs can easily be far larger than this 200,000 number. If the Fed decides that the unemployment rate should not fall below a certain level (5.4 percent is a number is often used), then it could be costing the economy millions of jobs if the economy could actually sustain a considerably lower level of unemployment as it did in the late 1990s.
To be clear, Federal Reserve Board Chair Janet Yellen and her colleagues on the Fed’s Open Market Committee (FOMC) that determines interest rates are not evil people sitting around figuring out how to ruin the lives of American workers. The Fed has a legal mandate to control inflation, in addition to its mandate to sustain high levels of unemployment. If they raise interest rates it will be because they fear inflationary pressures will build if they let the economy continue to grow and unemployment to fall.
But this is inevitably a judgment call. The call is based on both their assessment of the risk of inflation and also the relative harm from higher rates of inflation as opposed to higher rates of unemployment. It is likely that the members of the FOMC, who largely come from the financial industry, are much more concerned about inflation than the population as a whole. They are also likely to be less concerned about unemployment. These are people who tend to read about unemployment in the data, not to see it themselves or among their friends and family members.
This is why it is important that the public be paying attention to the Fed’s interest rate policies and let them know how they feel about raising interest rates to kill jobs. The Center for Popular Democracy has organized an impressive grassroots campaign around the Fed’s interest rate policies. Those who don’t want to see the government deliberately trying to kill jobs might want to join in.Source
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
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How to Build the Movement for Progressive Power, the Urban Way
As the gears of federal government have ground to a halt, a new energy has been rocking the foundations of our urban...
As the gears of federal government have ground to a halt, a new energy has been rocking the foundations of our urban centers. From Atlanta to Seattle and points in between, cities have begun seizing the initiative, transforming themselves into laboratories for progressive change. Cities Rising is The Nation’s chronicle of those urban experiments.
Cities are where the action is these days. Progressive action, political action. From paid sick days to universal pre-K, fossil-fuel divestment to anti-fracking ordinances, police reform to immigrant rights, the country’s urban centers are leading the way, far outpacing the federal government in vision and action. Just look at the growing movement for a $15 minimum wage. While Bernie Sanders has been raising minimum-wage consciousness on the campaign trail—introducing a bill in July to raise the federal minimum to $15 and calling for the same during the first Democratic presidential debate—it was local politicians, with names barely known beyond their districts, who first heeded the call of struggling workers and made $15 a reality. Before Bernie, in other words, there was Nick Licata and Kshama Sawant, Ruth Atkins, and the Emeryville City Council.
In recognition of this moment, progressive politicians from cities around the country—Los Angeles, San Francisco, Minneapolis, Denver, Philadelphia, and beyond—have joined forces to begin sharing their strategies for creative progressive change. Calling themselves Local Progress, they swap policy solutions to urgent, ongoing injustices like income inequality and police brutality, share model legislation and provide strategic support for legislative campaigns. Kind of like an urban anti-ALEC. Today, just three years after it was formed, more than 400 elected officials from 40 states are part of the effort. And the victories are beginning to add up—from paid parental leave in Boston to paid sick leave in New York City, socially responsible investing in Seattle to the use of eminent domain in Richmond, California, to slash homeowner debt.
This week, Local Progress members from all over the country are meeting in Los Angeles for the group’s fourth national gathering. From October 26 through 28, they aretrading their best ideas and strategies for building progressive local power—and combatting police violence, spreading the Fight for $15, expanding affordable housing, boosting civic engagement, and pushing the fight for LGBTQ rights beyond marriage equality.
Chuy Garcia, who gave Chicago mayor Rahm Emanuel a run for his millions in this year’s election, will be on the scene, as will Minneapolis Mayor Betsy Hodges, SEIU President Mary Kay Henry, AFL-CIO Executive Vice President Tefere Gebre, and dozens of council members, alderman, and supervisors from around the country. If cities are the incubators of promising progressive ideas, this gathering is a bit like the annual science expo.
The Nation has asked four Local Progress stalwarts to share some of the policy solutions they’ll be discussing at the gathering. New York City Council members Brad Lander and Antonio Reynoso, San Francisco Supervisor John Avalos, and Chicago Alderman Scott Waguespack all weighed in, offering thoughts on everything from humanizing the sharing economy to organizing for police reform, protecting sanctuary cities, and pushing back against privatization and regressive tax policy. Here’s what they said.
—Lizzy Ratner
PROTECTING WORKERS IN THE ON-DEMAND ECONOMY
By Brad Lander
Rides from Uber. Home cleaning from Handy. Meals from Seamless. Web design from Upwork. Even doctors from Medicast.
There’s no doubt the on-demand economy is convenient. Consumers can arrange for services at the tap of a touchscreen. Workers can choose their hours and earn a little extra cash.
But there’s a very dark side to the “sharing” economy: The benefits aren’t usually shared with the workers.
Working “by-the-gig” rarely provides job security, health insurance, paid sick days or family leave, on-the-job training, or retirement contributions. Workers lack the right to organize a union. And eight in 10 freelance workers report having been cheated out of wages they were owed.
President Obama and Democratic presidential candidates are finally talking about the issue. But the Republican Congress will likely block any progress. Marco Rubio recently called for even further deregulation, leaving workers at the mercy of multibillion-dollar corporations.
So cities are taking the lead in writing new rules, working with Local Progress, the National Employment Law Project, forward-thinking unions, and worker organizations to level the on-demand playing field.
In Seattle, City Council member Mike O’Brien is fighting for a bill that would allow drivers for Uber, Lyft, and other “ridesharing” companies to organize and bargain collectively so that workers have some voice in the terms and conditions of their work.
In New York City, we are working with the Freelancers Union to combat wage theft and late payment. When conventional employees are cheated out of wages, the state labor department can enforce and win double damages. The #FreelanceIsntFree campaign (which recently brought its message to the White House) would provide freelancers with similar protection.
Council Member Corey Johnson and I are working with the New York City Taxi Workers Alliance to mandate a “driver benefits fund” (funded by a small fare surcharge) to provide for-hire drivers with healthcare benefits—a first step toward the “Shared Security Account” that Nick Hanauer and David Rolf called for in a Democracy Journal article this summer. And we’re amending New York City’s human-rights laws to make clear they apply to independent workers. There is no reason Uber should be able to discriminate against drivers based on race or religion.
Meanwhile, from San Francisco to Burlington, cities are establishing offices of labor standards and adopting other innovative approaches (like partnering with community-based organizations) to enforce the laws that protect workers. One task: making sure conventional employees aren’t illegally misclassified as independent workers by employers trying to cheat them out of benefits and protections (a big problem for day laborers and domestic workers). These offices can also make sure that companies who need licenses from the city get and keep them only if they respect local, state, and federal laws.
Ultimately, we’ll need national regulation to match the growing on-demand economy. But for now, progressive cities are bringing worker protections into the 21st century—and some real sharing into the sharing economy.
THE MUNICIPAL BATTLE FOR EQUAL JUSTICE UNDER LAW
By Antonio Reynoso
Eric Garner. Michael Brown. Tamir Rice. Sandra Bland. For more than a year, the senseless deaths of young black men and women by police officers or in police custody have dominated headlines and helped fuel a movement. Under the banner of Black Lives Matter, this movement has been gaining ground in cities, towns, and counties across the country, spreading the call to end racist policing and begin enacting serious police reform. Its powerful message has reached all the way to the presidential campaign trail and beyond. But as the public waits for progress at the national level, change is already happening at the local level, thanks to powerful alliances between community activists and hundreds of local politicians.
In New York City, where I am a City Council member representingneighborhoods in Brooklyn and Queens, there is a desperate need for sensible reforms of the New York City Police Department (NYPD). For all to many New Yorkers, the excessive use of police force is a daily reality. The excessive surveillance of the Muslim community and a racialized stop-and-frisk policy also take their toll.
In response, organizations and progressive politicians have been fighting to improve accountability and transparency after years of racial profiling by the NYPD. The work has been supported by a broad coalition called Communities United for Police Reform, which has driven a strategic, multi-year campaign to knock on doors, organize the public, influence the public discourse, and pass legislation to implement smart reforms.
Communities want change, and they want to participate in the process of reforming the NYPD. So, working together, we’ve introduced the Right To Know Act as a way to meet their demands. These bills would require NYPD officers not only to identify themselves when stopping civilians but also to explain that the searches are voluntary and may be declined.
This is not the first time we have stood up for the people of our community. In 2013 and 2014, in partnership with Communities United for Police Reform, the City Council passed a series of bills known as the Community Safety Act, which together banned racial profiling by police and made it easier for New Yorkers who have experienced profiling to sue NYPD officers. The act also installed an independent inspector general to oversee the actions of the NYPD.
Of course, New York City is not the only city in our nation where racial profiling, unjust searches, and incidences of police brutality are common occurrences. Nor is it the only city where coalitions of community leaders and elected officials are working to improve the system. In the last year alone, communities have joined together with progressive local legislators to correct the imbalance of justice.
In Los Angeles County, the grassroots organization Dignity and Power Nowwon a transformative campaign, led by formerly incarcerated people and their families, to establish a strong civilian oversight commission for the sheriff’s department, which has an ugly history of violence against civilians on the streets and in county jails.
In Newark, community leaders partnered with Mayor Ras Baraka to create one of strongest civilian complaint review boards in the country, which has both a voice in disciplining police officers and a policy advisory role.
And in Minneapolis, a coalition led by Neighborhoods Organizing for Change succeeded in pressing the City Council to repeal spitting and loitering ordinances that were being disproportionately used to harass and harm black and Latino residents. They also won passage of a data-collection law that will begin to collect and publicize important evidence about the police department’s stop-and-frisk and use-of-force practices.
Members of Local Progress, partnering with community-based allies, have been central to these fights and many more, and we will continue combating such injustices across the United States, fighting for everyone to be treated equally under the law.
CITIES MUST LEAD THE NATION ON IMMIGRANT JUSTICE
By John Avalos
In the last few years, hundreds of cities across America have disentangled their police departments and jails from the federal immigrant-deportation machine, refusing to honor the Feds’ requests that cities detain immigrants past their release date so they could be picked up and deported. These policies protect immigrant families from the devastation of deportation and from crime, because they foster better relationships between the police and immigrant communities. The movement has been a bright spot for our country’s immigrant-rights movement.
But during the last few months, the policies, and in some cases the very idea, of sanctuary cities has come under attack. The catalyst for these changes was an undocumented immigrant named Juan Francisco Lopez-Sanchez who allegedly shot and killed a young white woman named Kate Steinle. He claims that the shooting was an accident, but her case has become a cause célèbre among opponents of immigrants because Lopez-Sanchez had been deported five times previously, and had recently been released from jail in San Francisco without being turned over to Immigration and Customs Enforcement (ICE).
San Francisco’s Due Process for All Ordinance, the latest update to its Sanctuary City policy, bars the sheriff from detaining people past their release date on behalf of ICE’s Secure Communities, or S-Comm, program. The goal of Due Process for All is to protect immigrants and their families from S-Comm, which created an immigration dragnet, deporting tens of thousands of immigrants and tearing their families apart. Due Process for All also enables immigrants to be integrated into San Francisco’s local law-enforcement efforts by promoting relationships between immigrant communities and the police. San Francisco has been at the leading edge of a national movement: across the nation, over 350 other local governments have recently adopted policies limiting collaboration with federal immigration officials.
But as a result of the widespread effort of local governments to limit coordination with the S-Comm, the federal government has tweaked and renamed its deportation effort the Priority Enforcement Program (PEP), which calls on local law enforcement to notify Homeland Security of a detainee’s release rather than detaining the individual past his or her release date. Like S-Comm, PEP has the same effect of weakening trust between immigrants and local law enforcement because local law enforcement is seen as an arm of federal immigration efforts.
The politics of race, citizen entitlement, and immigration reform have put San Francisco and other cities’ sanctuary-city policies squarely in the cross hairs of conservative extremists and political opportunists. From the highly polarizing presidential campaign of Donald Trump to the calculated posturing of Hillary Clinton (who supports PEP) to the election-year pandering of San Francisco Mayor Ed Lee, eager to blame the policy for Steinle’s death, politicians are scapegoating immigrants and undermining the sanctuary city policies that immigrants rely on for their security. Just last week, the US Senate narrowly failed to pass a Republican-backed bill that threatened to withhold federal grants from sanctuary cities and increase penalties for undocumented immigrants who reenter the United States after deportation.
Some cities are already working to resist this pressure. On the same day that Senate Republicans sought to punish sanctuary cities, the San Francisco Board of Supervisors unanimously passed a resolution reaffirming our commitment to the Due Process for All Ordinance and urging our sheriff not to comply with the new PEP program.
Cities around the country should follow suit and adopt a wide array of programs and policies to protect and empower immigrant communities. Like New Haven, they can establish Municipal ID cards to help immigrants navigate daily life; like Chicago, they can ensure that city services are available in multiple languages; like New York, they can provide quality free legal counsel to residents facing deportation; and like Los Angeles, they can conduct outreach programs and offer affordable citizenship preparation courses to help residents naturalize and gain the benefits of citizenship.
This moment is a pivotal one for our nation and the many cities that have sought to protect immigrants against deportation. We either succumb to the rightward push of the politics of race and citizen entitlement or we strengthen our efforts to protect and integrate immigrants and their families in recognition and honor of the contributions they make to our society. Local governments must lead our nation forward.
FIGHT FOR A PROGRESSIVE SOURCE OF REVENUE IN CHICAGO
By Scott Waguespack
The fiscal crisis that’s squeezing cities and towns across this country is perhaps at its most dramatic in Chicago.
Our municipal pension systems are woefully underfunded, the result of decades of failure by city and state governments to pay their share. Our schools are facing an enormous fiscal shortfall that could result in the firing of 5,000 teachers in the middle of the year. And we’re witnessing heartbreaking violence in our communities, the result of an overwhelmed police force and neighborhoods mired in economic hardship.
Simply put, our city has a cash problem.
To his credit, Mayor Rahm Emanuel acknowledged this problem in his recent budget address, railing against the budgeting tricks of previous years and vowing to end the city’s structural deficit. Unfortunately, Mayor Emanuel reached into the same tired bag of tricks in order to solve the problem: regressive tax increases on working families and privatization of public services.
These are tricks we’re all too familiar with here in Chicago. We’ve already been through some of the worst privatization deals in the country, and we know full well from our experiences with parking meters and school janitors that it’s been a fiscal boondoggle resulting in higher costs and worse services for taxpayers. And the mayor’s regressive property-tax proposal is just another way to balance budgets by raising taxes on working families who are already struggling to get by.
Here’s the good news, though: Chicago is one of the wealthiest cities on the planet. There’s an enormous amount of capital flowing through this city every day. Chicago’s City Council Progressive Caucus, which I chair, has been advocating for common-sense tax ideas to direct some of these dollars toward crucial programs and services, easing the burden on working families without selling off public assets.
We’ve advocated for creating a special property-taxing district that covers the skyscrapers in downtown Chicago. Too often, owners of these buildings hire politically connected firms to get enormous discounts on their assessments; a more fair valuation would generate substantial new revenue.
We support reforming the billion-dollar mayoral slush fund called “tax-increment financing.” We support fixing the problems in the infamous parking-meter privatization deal. We introduced an amendment that would tax big-box stores for the undue stress they put on our stormwater system, and have called for expanding the sales tax to include luxury services like pet grooming or portfolio management.
In short, the Progressive Caucus has progressive revenue ideas that will work for all of Chicago. We’ve convened a series of town hall meetings across the city, drawing crowds of hundreds of concerned neighbors, and have introduced a series of amendments to move this budget in the right direction.
As progressive leaders who love this city, our caucus knows we need new revenue to educate our children, care for those in need, and provide growth and opportunity in every community. For our city to prosper, those dollars must come from those who can most afford to pay, not from the pockets of working families.
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