How Hurricane Maria Could Change Puerto Rico’s Political Future
How Hurricane Maria Could Change Puerto Rico’s Political Future
In the windowless backroom kitchen of the Loisaida community and arts center in Lower Manhattan, Aris MejĂas cradles a...
In the windowless backroom kitchen of the Loisaida community and arts center in Lower Manhattan, Aris MejĂas cradles a plastic ziplock with the last of the dark-roast coffee she brought back from her native Puerto Rico. “It’s probably extinct,” she says. “Ay DĂos, I think I’m gonna cry.” MejĂas’s eyes are red and sunken. Neither she nor Isabel GandĂa has slept much since Hurricane Maria tore through the southeast Caribbean in late September. They’ve been too busy coordinating a donation drive to bring emergency aid to Puerto Rico. At 3:30 in the afternoon, GandĂa is only just getting around to breakfast.
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Fed, Eager to Show It’s Listening, Welcomes Protesters
Fed, Eager to Show It’s Listening, Welcomes Protesters
WASHINGTON — When a dozen protesters in green T-shirts showed up two years ago at the Federal Reserve’s annual...
WASHINGTON — When a dozen protesters in green T-shirts showed up two years ago at the Federal Reserve’s annual conference in Jackson Hole, Wyo., they were regarded by many participants as an amusing addition.
Two years later, they have won a place on the schedule.
The protesters, who want the Fed to extend its economic stimulus campaign, are scheduled to meet on Thursday with eight members of the central bank’s policy-making committee. At the start of a conference devoted to esoteric debates about monetary policy, officials will hear from people struggling to make ends meet.
The Fed’s effort to show that it is listening to its critics reflects the central bank’s broader struggle to find its footing in an era whose great challenge is not the strength of inflation, but the weakness of economic growth.
Officials are wrestling with the limits of monetary policy, the focus of the conference, even as they try to address simmering discontent among liberals who want stronger action and among conservatives who say the Fed has done too much.
The meeting also represents an unlikely victory for Ady Barkan, the 32-year-old lawyer who decided in 2012 that liberals should pay more attention to monetary policy. He now heads the “Fed Up” campaign, a national coalition of community and labor groups that plans to bring more than 100 protesters to Jackson Hole.
“We want to make sure that regular voices are being heard,” Mr. Barkan said in beginning the campaign two years ago. The American economy, he said, was not working for all Americans — particularly not for blacks and other minority groups.
Fed officials so far have chosen to accommodate the group by applauding its efforts at public education, not by seriously engaging its arguments that interest rates should be raised more slowly. Esther George, the president of the Federal Reserve Bank of Kansas City, which hosts the Jackson Hole conference, arranged Thursday’s meeting with the activists. She said in an interview earlier this year that the Fed must balance job growth with other issues, like financial stability.
“I am completely sympathetic,” she said of the group’s concerns.
But she cautioned that the Fed’s powers were limited. Pushing too hard to lower unemployment could lead to higher inflation, or speculative bubbles, that would force the Fed to raise interest rates more quickly. The resulting economic volatility could end up doing more harm than good.
“The Federal Reserve has become somehow the answer to many problems far beyond what we can actually address,” she said. “I wish I could fix all of it with a tool like monetary policy. But we can’t.”
Even Mr. Barkan’s supporters acknowledge the long odds. Fed Up’s budget has grown to $2 million this year, from $145,000 in 2014, mostly from Good Ventures, a nonprofit foundation created by the Facebook co-founder Dustin Moskovitz, which describes the campaign as “relatively unlikely to have an impact.”
Fed Up’s more visible success has come in pursuit of a longer-term goal: advocating for changes in the Fed’s governance that could eventually shift its decision-making.
In a report published earlier this year, Fed Up highlighted the Fed’s lack of diversity. There are no blacks or Hispanics among the 17 officials on the Fed’s policy-making committee of 12 regional bank presidents and five governors. No black or Hispanic has ever served as president of a regional reserve bank.
Moreover, the report said that whites composed 83 percent of the directors of the Fed’s 12 regional reserve banks, who select the regional presidents.
Narayana Kocherlakota, former president of the Federal Reserve Bank of Minneapolis, said that the absence of minorities was “quite troubling.”
“Those kinds of persistent absences of key demographic groups really suggest that the appointment process, there is something that can be fixed there,” he said.
Fed Up also argued that bank executives should not sit on regional Fed boards. Under current law, bankers hold three of the nine seats on each board. The regional reserve banks are owned by the commercial banks in each district, although they operate under the authority of the Fed’s board, a government agency whose members are nominated by the president and confirmed by the Senate.
In May, 127 congressional Democrats signed a letter to Janet L. Yellen, the Fed chairwoman, calling attention to the Fed’s lack of diversity and the influence of the banking industry.
On the same day, a spokesman for Hillary Clinton’s presidential campaign said in a statement that “Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that common sense reforms — like getting bankers off the boards of regional Federal Reserve Banks — are long overdue.”
Two months later, the Democratic Party adopted a campaign platform that included similar language, the first time in recent decades it mentioned the Fed.
Andrew Levin, an economist at Dartmouth College, said Fed Up’s greatest chance for significant influence was not in framing the current debate about interest rates, but in changing the Fed itself. He co-wrote a report that the campaign published Monday detailing a proposal to make the Fed a fully public institution.
“Having a diverse set of policy makers — including African-Americans and Hispanics — will influence the Fed’s decision-making,” he said. “And it should. The public should have confidence that the public is well represented at the F.O.M.C. table.”
Mr. Barkan started the “Fed Up” campaign after joining the Center for Popular Democracy in 2012, a few years after graduating from Yale Law School. He had read a 2011 article by the journalist Matthew Yglesias, titled “Fed Up.” Unions and other advocacy groups were focused on minimum-wage laws. Mr. Barkan was compelled by the argument that they also should be focused on interest rates.
“Even if they move once less over the course of several years, that’s still massive,” he said earlier this year. “The number of people who have jobs because of that, or higher wages, that dwarves a $15-an-hour wage increase in a smaller city.”
The campaign has gained traction in part because the Fed is eager to show that it is listening. During the first protest two years ago, Mr. Barkan approached Ms. Yellen, who listened politely and invited him to bring a group of workers to Washington, where she met with them in November 2014.
Lael Brainard, a Fed governor who plans to attend the Thursday meeting, made a point last year of visiting the parallel conference Mr. Barkan staged on the sidelines of the Fed event. And Mr. Barkan’s group has now succeeded in persuading each of the regional reserve presidents to meet with groups of local workers.
Neel Kashkari, the new president of the Federal Reserve Bank of Minneapolis, met with Fed Up’s local affiliate, Neighborhoods Organizing for Change, this month, telling the group that he shared their concern about the persistence of higher rates of unemployment among blacks and other minority groups.
Mr. Kashkari also accepted an invitation to spend a day with one of the group’s members, Rosheeda Credit, a Minneapolis resident who described the struggles she and her boyfriend faced to cover the cost of rent and child care for their five children.
“Walking a day in somebody else’s shoes is actually — it makes the anecdotes that much more real,” Mr. Kashkari, who arrived at the bank in January, told reporters after the meeting. “It influences how I think about the problems we face.”
By BINYAMIN APPELBAUM
Source
Puerto Rico Activists Crash Federal Reserve Panel With Creative Protest
Puerto Rico Activists Crash Federal Reserve Panel With Creative Protest
NEW YORK — Over a dozen activists descended on a building where Federal Reserve chair Janet Yellen and her three living...
NEW YORK — Over a dozen activists descended on a building where Federal Reserve chair Janet Yellen and her three living predecessors were speaking on Thursday to demand that the Fed bail out Puerto Rico’s cash-strapped government.
The demonstrators, who are affiliated with the progressive Fed Up coalition, distributed Puerto Rican flags and empanadas as Puerto Rican music played outside Manhattan’s International House, a student residence. Yellen was there for an unprecedented panel discussion alongside past Fed chairs Ben Bernanke, Paul Volcker and Alan Greenspan, who participated via videostream.
The activists were joined by Puerto Rican lawmaker Manuel Natal, who was in town to participate in a panel discussion hosted by City Council Speaker Melissa Mark-Viverito on Friday.
“They have two mechanisms under their authority to help Puerto Rico: one is to provide a bailout to Puerto Rico similar to the one they did to banks, the same banks that are now in Puerto Rico making a fortune out of our fiscal situation,” Natal said. “And the second would be to buy our debt” and charge Puerto Rico interest rates that are lower than the market would offer.
The activists claim that since the Fed had the authority to buy trillions of dollars of bad debt from Wall Street banks after the 2008 financial crisis, it can do the same for the debt of Puerto Rico.
Economic observers with knowledge of the Fed’s functions consider that argument dubious. Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics who was an economist at the Fed Board of Governors for many years, said that the Fed is not allowed to buy municipal debt — of the kind Puerto Rico owes — that comes due over a period longer than six months. He also said such a purchase would be inconsistent with the Fed’s dual mandate of maintaining price stability and full employment.
The Fed has “never bailed out any insolvent entity as far as I know. They always demand collateral sufficient to cover any loan,” Gagnon said, as the Fed did when it provided aid to major U.S. banks.
Natal, the lawmaker, also believes some of Puerto Rico’s debt has been issued unconstitutionally and can therefore be nullified.
Greg Williams, a spokesman for Jubilee USA, a coalition of faith-based groups that advocates for global debt relief policies, declined to endorse a Fed bailout, but suggested the Fed could broker a deal instead.
“We support a proposal where the Fed facilitates a restructuring process,” Williams said.
More important than the details of the demonstrators’ demands, however, is the protest’s political symbolism in the midst of a heated battle over Puerto Rico’s future. The demonstration was perhaps the most colorful in a series of political moves and counter-moves by the Puerto Rican government and its sympathizers on one hand and the commonwealth’s bondholders and their allies on the other. Both seek to influence a congressional rescue plan that could enable Puerto Rico to restructure its debts.
Members of Congress from both parties are negotiating changes to the draft of a relief bill released last week by the House Committee on Natural Resources, which has jurisdiction over U.S. territories.
But many in Puerto Rico, and some progressives in the mainland United States, object to the Washington-based federal oversight board the bill would introduce to audit Puerto Rico’s finances and recommend reforms. Under the terms of the bill, Puerto Rico would pursue voluntary compromises with its creditors; failing that, the board could greenlight court-supervised debt restructuring that would force bondholders to accept the losses.
Those critics of the draft bill — including lawmaker Natal — view the board as having the trappings of American colonial rule over Puerto Rico.
Critics of the draft House bill say it has the trappings of American colonial rule over Puerto Rico.
They also argue that Puerto Rico should not have to meet any conditions to gain access to court-supervised debt restructuring. Puerto Rico, unlike the fifty mainland states, lacks the power to grant its municipalities and public corporations federal bankruptcy protections.
Puerto Rico is taking a multi-pronged approach to secure debt relief that appears designed to increase its leverage with creditors and win terms that are as favorable as possible.
The island’s governor, Alejandro Garcia Padilla, signed a bill on Wednesday that would empower him to declare a state of emergency and enact a moratorium on the island’s $70 billion debt. Puerto Rico’s next major debt payment — a $422 million tranche — comes due on May 1.
Daniel Hanson, a Puerto Rico specialist for the financial analysis firm The Height, wrote in an email newsletter that Puerto Rico’s creditors will likely challenge the moratorium in court, where Puerto Rico’s “playbook is not likely to be persuasive to American courts adjudicating the contracted rights of creditors.”
Garcia Padilla has said the island is incapable of paying its debts in full. Puerto Rico has enacted spending cuts and tax hikes in recent years that have stifled its economy and depleted its social services, creating a situation that many people already characterize as a humanitarian crisis.
Puerto Rico also argued for the right to enforce a local bankruptcy law that went before the Supreme Court last month after lower courts had blocked the island from putting it into effect. The high court is expected to rule in the case by late June.
In Congress, Democrats sensitive to Puerto Rico’s plight — and solicitous of the votes of former island residents living on the mainland — hope to dilute some of the proposed oversight board’s sweeping powers.
The Height’s Hanson, however, expects subsequent iterations of the House bill to be “more creditor-friendly,” he wrote.
Meanwhile, organizations representing Puerto Rico’s powerful creditors have stepped up their efforts to amend the legislation to limit the restructuring authority that the island would get. The commonwealth’s bondholders include a significant number of so-called vulture funds, which are hedge funds that have bought its debt from other creditors at discounted rates on the promise of recovering the obligations’ original full-dollar value.
A group called Main Street Bondholders, which claims to represent ordinary retirees, has created a web site attacking the draft House bill for granting Puerto Rico “super Chapter 9” bankruptcy protections.
Main Street Bondholders is associated with the conservative seniors group 60 Plus, which played an active role in the fight against the Affordable Care Act. The New York Times reported in December that 60 Plus is funded by a handful of large, anonymous donors and was recruited into the effort by a Republican public relations firm that also represents BlueMountain Capital, a creditor that has been outspoken against federal government help for the island.
The fight over whether to help Puerto Rico has reached the bottom rung of American discourse — cable news ads paid for by undisclosed donors. The ad, which ran on CNN and was paid for by the Center for Individual Freedom, urges Congress to “stop the Washington bailout of Puerto Rico.” The Virginia-based conservative group does not disclose its donors. It was founded in 1998 to combat government restrictions on smoking.
The CFIF did not respond to a Huffington Post question about whether any of its funders have a financial stake in the outcome of the Puerto Rico bailout.
By Daniel Marans & Ben Walsh
Source
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
Women workers vow to fight back after Supreme Court ruling
Women workers vow to fight back after Supreme Court ruling
“In early 2017, I became network president and co-executive director at the Center for Popular Democracy, a national...
“In early 2017, I became network president and co-executive director at the Center for Popular Democracy, a national network of more than 50 grassroots community organizing groups in 34 states, Puerto Rico, and Washington, D.C. In this capacity, I’ve had the opportunity to meet working women all across the country, and I’ve seen firsthand the commitment Freeman Brown is naming. Women, especially women of color, know that being a union member gives them greater economic security than their nonunion sisters have.”
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Drafts on Scaffold Sought
Times Union - August 21, 2014, by Casey Seiler - The...
Times Union - August 21, 2014, by Casey Seiler - The Center for Popular Democracy, a labor-backed advocacy group that supports New York's controversial Scaffold Law, wants to see all the drafts of a controversial report authored by SUNY's Nelson A. Rockefeller Institute of Government and paid for by the Lawsuit Reform Alliance, a business-backed organization that opposes Scaffold Law.
The Alliance paid almost $83,000 for the Institute's analysis of the law's economic impacts. That report, made public in February, has been the subject of fierce debate — over both the details of the study as well as larger issues of academic integrity. The Rockefeller Institute, which insists its work was done with independence and integrity, subsequently backed away from the most controversial chapter of the report, which included a statistical analysis that concluded gravity-related accidents fell in Illinois after the state ditched its version.
The law, which places "absolute liability" on employers for gravity-related workplace injuries, is supported by labor unions but opposed by business groups that claim it needlessly drives up construction costs. Opponents would like to see New York follow other states by adopting a "comparative negligence" standard that would make workers proportionately responsible when their actions contribute to an accident.
An initial Freedom of Information Law request from the Center for Popular Democracy resulted in SUNY's release of email communications between Rockefeller Institute researchers and Tom Stebbins of the Lawsuit Reform Alliance — contact that was required by the contract for the report.
On appeal, SUNY released an initial draft copy of the report that had been attached to one of those emails. The Times Union last week offered a side-by-side comparison of the draft and final versions. Changes between the two tended to increase the report's toll of the cost and impact of the law, though the researchers argue those edits represented good-faith efforts to seek the best data. The Center is now requesting to see all interim drafts of the report submitted to the Lawsuit Reform Alliance for review. "Given that the anti-worker groups behind this debunked report are still trying to use its flawed findings to weaken New York's safety laws, SUNY should release all of the drafts that we know exist," said Josie Duffy, a policy advocate with the group.
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Car wash activists release report on John Lage
Amsterdam News - June 20, 2013 - According to a recently released report by car wash workers and their advocates, the...
Amsterdam News - June 20, 2013 - According to a recently released report by car wash workers and their advocates, the owner of several car washes with labor law violations is still paid by the city to clean city-owned cars.
Created and distributed by Make the Road New York, Center for Popular Democracy, New York Communities for Change and the Retail, Wholesale and Department Store Union, the report includes public documents that they believe show that city taxpayers have “spent hundreds of thousands of dollars supporting” John Lage and his associate Fernando Magalhaes.
According to the report, between 2007 and 2013, Lage Car Wash Inc. had contracts with the New York City Police Department and the Department of Housing Preservation and Development (HPD) worth over $300,000 combined. Also, the city paid Lage Car Wash at least $135,924 for the past three years for car wash services and almost $38,000 to other entities that are controlled by Lage or Magalhaes. Last year, New York State Attorney General Eric Schneiderman launched an investigation in Lage’s business practices.
Currently, car wash employees of Lage’s report that they work over 50 hours a week for an hourly wage of $6 without tips or about $7.30 including tips and including overtime. Back in 2005, the U.S. Labor Department sued Lage on charges he and 15 of his companies “willfully and repeatedly” violated wage laws. The suit ended with Lage paying $4.7 million in wages and fines.
None of this was of much surprise to Retail, Wholesale and Department Store Union President Stuart Appelbaum.
“This report is proof that Lage Car Wash Inc. and its treatment of workers is not fair to the workers, nor do these conditions uplift and sustain our communities,” said Appelbaum. “New York City should quickly take action and truly reconsider doing business with a company who operates in this manner.”
Last week, car wash workers and supporters attended the Car Wash Workers General Assembly, where they discussed their experiences working for Lage-owned companies.
“We learned from the strike at Sunny Day [in the Bronx] and the struggle at Soho [in Manhattan] that we can defend our rights and win, and we are no longer going to accept mistreatment and poverty wages,” said Hector Gómez, a car wash worker who worked at the recently closed Lage Car Wash in Soho and currently works at Sutphin Car Wash. “Just think how much more we can win when all the car washes in New York City are organized and united.”
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A top regulator's close ties to Wall Street damage one of its most crucial functions 10 years after the crisis
A top regulator's close ties to Wall Street damage one of its most crucial functions 10 years after the crisis
“A new report from the Fed Up coalition, an activist group calling for more inclusive economic policies, says the key...
“A new report from the Fed Up coalition, an activist group calling for more inclusive economic policies, says the key regional Fed bank's conflicts lead to subpar regulation of Wall Street. As William Dudley, a former Goldman Sachs partner, prepares to retire as New York Fed president, Fed Up calls on the bank to "select a new president who will put the interests of the public before Wall Street. A new report from the Fed Up coalition, led by the Center for Popular Democracy, a Washington-based nonprofit, shows just how stark the lack of diversity in race, gender, and professional backgrounds has been at the New York Fed.”
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Under Trump, local governments become activists
Under Trump, local governments become activists
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s...
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s Office of Sustainability hoisted a diaper bag on her shoulder, packed her 11-week-old daughter, Sabine, into a stroller, maneuvered into a creaky elevator in City Hall, and rode up to the mayor’s reception room. This was just too important to miss.
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Protesters Converge On Stephen Schwarzman's Water Mill Home
Protesters Converge On Stephen Schwarzman's Water Mill Home
About 35 protesters from various political organizations—the Center for Popular Democracy, Make the Road New York, New...
About 35 protesters from various political organizations—the Center for Popular Democracy, Make the Road New York, New York Communities for Change, and Strong for All Economy Coalition—converged on the Water Mill Home of Stephen Schwarzman on Friday afternoon.Â
Mr. Schwarzman is the chairman and CEO of The Blackstone Group and an adviser to President Donald Trump.
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29 days ago
29 days ago