Debbie Wasserman Schultz’s Challenger Has a Chance
During the presidential primary, Democratic National Committee Chair Debbie Wasserman Schultz has managed the...
During the presidential primary, Democratic National Committee Chair Debbie Wasserman Schultz has managed the impressive feat of angering virtually every liberal in America. Bernie Sanders supporters think she displays a transparent biasfor Hillary Clinton. Party stalwarts, including Clinton fans, criticize the decision tohide primary debates on weekend nights, ceding hours of free media time to Republicans in the formative stages of the election. And in a recent interview with the New York Times Magazine, Wasserman Schultz insulted millennial women for being “complacent” about abortion rights. This is an incomplete list.
In two separate petitions, more than 94,000 people have demanded that Wasserman Schultz resign as DNC chair. But back in her district, in Hollywood, Florida, Timothy Canova has another idea: vote her out of office.
Last Thursday, Canova, a former aide to the late Sen. Paul Tsongas and a professor at Nova Southeastern University’s Shepard Broad College of Law, jumped into the Democratic primary in Florida’s 23rd congressional district. It’s Wasserman Schultz’s first primary challenge ever, and with frustration running high against her, it’s almost certain to draw national attention. But Canova first became interested in challenging Wasserman Schultz not because of her actions as DNC chair, but because of her record.
“This is the most liberal county in all of Florida,” Canova said in an interview, referring to Broward County, where most of Wasserman Schultz’s district resides (a small portion is in northern Miami-Dade County). But she more closely associates with her significant support from corporate donors, Canova argued. He listed several of Wasserman Schultz’s votes, such as blocking the SEC and IRS from disclosing corporate political spending (which was part of last month’s omnibus spending bill),opposing a medical marijuana ballot measure that got 58 percent of the vote in Florida, preventing the Consumer Financial Protection Bureau from regulating discrimination in auto lending and opposing their rules cracking down on payday lending, and supporting “fast track” authority for trade deals like the Trans-Pacific Partnership.
“I think anyone who voted for fast track should be primaried. I believe that ordinary citizens have to step up,” Canova said.
Canova espouses many of the populist themes that attract the left: fighting corporate power, defending organized labor, and reducing income inequality. But this is not just a Bernie Sanders Democrat. You have to go back further. Tim Canova is a Marriner Eccles Democrat.
Eccles chaired the Federal Reserve during Franklin Roosevelt’s presidency. And Canova believes the central bank should revisit Eccles’s unorthodox strategies to jump-start a broad-based economic recovery. “In the 1930s, the regional Fed banks made loans directly to the people,” Canova said. “Instead of purchasing $4 trillion in Treasuries and mortgage-backed securities, [the Fed] could buy short-term municipal bonds and drive the yield to zero for state and local governments. They could push money into infrastructure, making loans to state infrastructure banks.” Canova has even suggested that the government create currency outside of the central bank, breaking their monopoly on the money supply, as President Abraham Lincoln did with the “Greenback” in the 1860s.
During World War II, FDR directed Eccles’s Fed to finance American war debt at low rates, eventually producing a stimulus that helped to end the Great Depression. It was a time when the Fed was far more accountable to democratically elected institutions, one that Canova looks back upon fondly. “People like to talk about the Fed’s independence, that’s really a cover for the Fed’s capture,” he said. “They look out for elite groups in society, and the hell with everybody else.”
A growing faction of progressives are beginning to return to their roots, asking whether Fed policies truly support the public interest. The Fed Up campaign, with which Canova has consulted, seeks to pressure the Fed to adopt pro-worker policies. A surprise movement in Congress just cut a 100 year-old subsidy the Fed handed out to banks by $7 billion. Even mainstream figures like economist Larry Summerswonder whether the Fed’s hybrid public/private structure, which critics believe makes it beholden to financial interests, makes sense.
Progressive debates on central banking are not as advanced here as in Europe, where British Labour Party leader Jeremy Corbyn wants a “quantitative easing for people,” where the central bank injects money directly into the economy rather than filtering it through financial institutions. But Canova, who says his views were most influenced by an undergraduate economics professor who taught with one book—John Maynard Keynes’s General Theory of Employment, Interest and Money—bridges this gap. Twenty years ago this week, he wrote an op-ed for the New York Timesopposing the reappointment of Alan Greenspan as Fed chair because of his support for high real interest rates. If elected this fall, he would instantly become the strongest advocate in Congress for a people’s Fed.
While Debbie Wasserman Schultz has few known views on the Federal Reserve, Canova’s populism offers a strong counterweight to her corporate-tinged philosophy. And even before that contrast plays out, the hunger for any challenge to Wasserman Schultz is palpable.
“The money is coming in more rapidly than believable,” said Howie Klein, co-founder of Blue America PAC, which raises money for progressive Democrats. Wasserman Schultz has been on Klein’s radar since she, as chair of the “Red to Blue” campaign for electing House Democrats, refused to campaign against three Republicans in Florida because of prior friendships and their joint support for the state sugar industry.
Klein sent a Blue America fundraising email shortly after Canova’s announcement, and raised $7,000 within 12 hours, and over $10,000 at last count. The intensity of support reached beyond the PAC’s traditional donor base. “Our average donation is $45, but in this case we’re getting $3, $5,” Klein said. “For people who our donors have never heard of, it can take three-four months to do that. It’s just because ofDebbie Wasserman Schultz.”
Similarly, Canova says he’s seeing tens of thousands of visits to his website andFacebook page, suggesting support beyond south Florida. However, he wants to localize rather than nationalize the race. The district, initially drawn with Wasserman Schultz’s input when she served in the Florida state Senate, is now more Hispanic and less reliable for a politician who Canova believes has lost touch with her constituents.
“You talk to people at the Broward County Democratic clubs, they say she takes us for granted,” Canova said. The political model for his campaign is David Brat, another academic who took on a party leader—then-House Majority Leader Eric Cantor—and defeated him, on the grounds that Cantor ignored his district amid constant corporate fundraising.
If there’s one thing Wasserman Schultz can do, it’s raise money—that’s why she chairs the party. She will have a big cash advantage and the power of incumbency. But Canova thinks he can outmatch her by riding the populist tide. “There’s a tendency to get so down about the system, but this is an interesting moment we’re living in,” Canova said. “This is a grassroots movement. We’re tapping in without even trying yet.”
Source: The New Republic
Advocacy Groups Call for Closer Scrutiny of Charter Schools
Trib Total Media - October 1, 2014, by Megan Harris - Three groups with union affiliations on Wednesday pointed to the...
Trib Total Media - October 1, 2014, by Megan Harris - Three groups with union affiliations on Wednesday pointed to the criminal case against ousted PA Cyber Charter School founder Nick Trombetta as an example why the state's nearly 180 charter schools need better oversight and stronger accountability.
The Center for Popular Democracy, Integrity in Education, and Action United of Philadelphia and Pittsburgh issued a report that alleges Pennsylvania charter schools defrauded taxpayers out of more than $30 million. That figure is an aggregate of cases brought by whistleblowers and media exposés, according to the authors.
Pennsylvania Coalition of Public Charter Schools executive director Robert Fayfich said in a prepared statement that “the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in (traditional) districts over that same time period.”
Trombetta, who investigators allege illegally funneled $1 million from school coffers and deferred taxes on an additional $8 million in personal income, pleaded not guilty to 11 counts of mail fraud, bribery, tax conspiracy and filing false tax returns last year. Hearings are ongoing.
Fayfich said, “Fraud and fiscal mismanagement are wrong and cannot be tolerated, but to highlight them in one sector and ignore them in another indicates a motivation to target one type of public school for a political agenda.”
The groups' report urges state officials to temporarily suspend the approval process for new charter schools, investigate existing ones, and shift from standard audits to forensic audits.
School districts paid more than $853 million in tax dollars to charters serving 128,712 students in 2013-14. Almost 4,000 Pittsburgh students attended 33 charter schools the same year.
SourceLíderes del Congreso reanudarán negociación con la Casa Blanca sobre futuro de “Dreamers”
Líderes del Congreso reanudarán negociación con la Casa Blanca sobre futuro de “Dreamers”
Grupos como “United We Dream”, “Women´s March” y “CPD Action” reiteraron hoy que, en las próximas primarias, apoyarán a...
Grupos como “United We Dream”, “Women´s March” y “CPD Action” reiteraron hoy que, en las próximas primarias, apoyarán a candidatos rivales que estén dispuestos a proteger a la comunidad inmigrante, si los demócratas no cumplen su promesa a los “Dreamers.”
Lea el artículo completo aquí.
How to Join the ‘Day Without Immigrants’ on May Day
How to Join the ‘Day Without Immigrants’ on May Day
A coalition led by immigrants and workers is aiming to mark this year’s May Day with the biggest workers strike and...
A coalition led by immigrants and workers is aiming to mark this year’s May Day with the biggest workers strike and mobilization in over a decade...
Read full article here.
Advocates of minimum wage hike raise more than $1.4 million
Advocates of minimum wage hike raise more than $1.4 million
Proponents of hiking the state’s minimum wage have already collected more than $1.4 million to put the issue on the...
Proponents of hiking the state’s minimum wage have already collected more than $1.4 million to put the issue on the November ballot and convince voters to support it.
But there’s no word on how much the Arizona Restaurant Association has spent so far trying to keep Proposition 206 from ever getting to voters.
New campaign finance reports due Friday show donations of $1,357,509 to Arizonans for Fair Wages and Health Families, with another $100,000 on loan from campaign consultant Bill Scheel. Most of those dollars — about $900,000 — were spent hiring paid circulators to put the issue on the ballot.
But the secretary of state’s office said Friday it has yet to get a spending report from foes. In fact, spokesman Matt Roberts said foes have not even filed to form a campaign committee, a legal prerequisite for spending any money for or against ballot measures.
There clearly has been some spending.
The restaurant association hired attorneys and filed suit on July 14 in a legal bid, unsuccessful to date, to have the measure removed from the November ballot. And the report due Friday is supposed to cover all expenses through Aug. 18.
Neither Steve Chucri, president of the restaurant group, nor Chiane Hewer, its spokeswoman, returned repeated calls seeking comment.
Roberts said his office has no legal opinion on whether the money spent in court over ballot measures has to be reported. But the legal expenses incurred by initiative supporters are listed, with their report saying the group paid $70,000 to the Torres Law Group to defend them in the lawsuit brought by the restaurant association.
Proposition 206, if approved in November, would immediately hike the state minimum wage from $8.05 an hour now to $10. It would hit $12 an hour by 2020, with future increases linked to inflation.
It also would require companies to provide five days of paid sick leave a year; small employers would have to offer three days.
There is one thing missing, however, from the report by the pro-206 group.
The report shows $998,684 of the donations coming from Living United for Change in Arizona.
But Tomas Robles, former director of LUCHA who is now chairing the campaign, said some of those dollars came from elsewhere. He said the organization has been the beneficiary of funds from groups like the Center for Popular Democracy and the United Food and Commercial Workers union.
Robles said, though, that the way Arizona law has been amended by the Republican-controlled legislature does not require detailing the specific donors or the amounts they gave.
While any spending by the restaurant association to date is unknown, the campaign is likely to be overshadowed, at least financially, by the fight over Proposition 205.
That measure would legalize the recreational use of marijuana by all adults; current law limits use of the drug to those who have certain medical conditions, a doctor’s recommendation and a state-issued ID card.
So far the Campaign to Regulate Marijuana Like Alcohol has amassed more than $3 million in donations.
Of that, $778,950 comes from the Marijuana Policy Project, the national group that funded the successful 2010 campaign for medical marijuana. A separate Marijuana Policy Project Foundation kicked in another $236,572.
Virtually all of the other five- and six-figure donations come from existing medical marijuana dispensaries. Proposition 205 would give them first crack at getting a license for one of the fewer than 150 retail outlets that would be allowed until 2021.
So far the campaign has spent nearly $2.6 million.
The opposition Arizonans for Responsible Drug Policy reported collected $950,011 but has spent less than $294,000.
The Arizona Chamber of Commerce is the largest single source of funds for the anti-205 campaign, so far putting in $114,000.
There’s also a $100,000 donation from T. Sanford Denny. He’s the chairman of United National Corp., which Bloomberg says is a privately owned holding company for First Premier Bank.
Another $100,000 was chipped in by Randy Kendrick, wife of Arizona Diamondbacks owner Ken Kendrick.
The new reports also show that a branch of the Service Employees International Union spent $2.1 million in its ill-fated attempt to put a measure on the ballot to cap the compensation of non-medical hospital executives at $450,000 a year. Proponents gave up after a lawsuit was filed contending that many of the people who circulated petitions had not complied with state law, voiding any of the signatures they collected.
By: Howard Fischer
Source
From Low Pay to High Stress: These Are the Absolute Worst Companies to Work for in America, According to Employees
From Low Pay to High Stress: These Are the Absolute Worst Companies to Work for in America, According to Employees
“American consumers have a love-hate relationship with drugstore chains and their pricey prescriptions, but it seems...
“American consumers have a love-hate relationship with drugstore chains and their pricey prescriptions, but it seems employees do as well. Disgruntled Walgreens employees site poor pay (cashiers are paid just $9 per hour) and other labor issues as major negatives. The Center for Popular Democracy tallied actual employee votes and named Walgreens the worst company in America. They’ve even been accused of promoting employees to salary positions to skirt overtime pay, resulting in employees earning less money per hour than their hourly counterparts.
Read the full article here.
New Report Details Plans for Low-Wage Worker Justice
The Village Voice - February 14, 2013 - When a worker in this city has to endure a three-hour walk to work because his...
The Village Voice - February 14, 2013 - When a worker in this city has to endure a three-hour walk to work because his minimum wage salary doesn't allow for him to afford public transportation, that's a problem.
Low-wage workers across the city have stood up in the past year to demand that such insecurity be eradicated and to pressure employers to finally begin to provide them with just compensation for their labor.
Building on the progress generated by these worker-led movements--in industries such as retail, fast-food, airline security and car washing--UnitedNY, the Center for Popular Democracy and other advocacy groups held a symposium and released a report yesterday analyzing the state of the city's low-wage worker movement.
"It's very difficult to try and make ends meet on $7.25 minimum wage in New York City," Alterique Hall, a worker in the fast-food industry, said during a news conference following the event. "Some nights you want to lay down cry because you [feel] like 'what's the point of going to work and putting all of myself into a job, [if] I'm going to be miserable when I get off work, miserable when I go home...and don't want to wake up and go to work the next day...to get disrespected, treated poorly and paid poorly.'"
Hall, who's been active in the push for fairer wages in the fast-food industry, is the worker who is often forced to embark on the three-hour treks to work. Hall said that his boss will sometimes said him home as a penalty for his tardiness--without considering the ridiculous journey he has to travel just to get to there.
"Working hard, and working as hard as you can, isn't paying off for them," mayoral hopeful and former City Comptroller Bill Thompson, said during the news conference. "They're being underemployed, They're being underpaid. They're being taken advantage of. They're being ignored. They're becoming a permanent underclass in the city of New York."
The UnitedNY and CPD report lays out four specific initiatives that workers and advocates must pressure the city to implement in order to help better the plight of low-wage workers. The reports calls on the city and employers to :
[Raise] standards for low-wage workers. [Regulate] high-violation industries where labor abuses are rampant. [Establish] a Mayor's Office of Labor Standards to ensure that employment laws are enforced. [Urge] the State to allow NYC to set a minimum wage higher than the State minimum--due to the higher cost of living in the City.The report pays close attention to the need for City Council to pass the paid sick-leave bill, and increase the minimum wage in the city to $10/hour--a salary that would net a worker with regular hours about $20,000/year in earnings.
"We can't continue to be a Tale of Two Cities, where the path to the middle class keeps fading for thousands of New Yorkers," said New York City Public Advocate Bill de Blasio. "We must break the logjam and pass paid sick leave in the City Council. We have to protect low-wage workers fighting union busting employers. We can't tolerate inaction any longer. It's time for real action to fight for working families."
During one of the symposium workshops, a panel of labor experts discussed the obstacles facing low-wage workers in their fight to obtain such rights.
"[We've] shifted from a General Motors economy to a Wal-Mart economy," Dorian Warren, a professor of public affairs at Columbia University, said during the discussion. "[The job market is filled with] part-time jobs, low wages, no benefits, no social contract, no ability to move up in the job the way 20th century workers were able to."
Warren says that the quality of jobs in the American economy will only decline if something isn't done. He noted that 24 percent of jobs were low-wage in 2009. By 2020, that number is expected to nearly double and hit 40 percent. To make matters worse, technological "advances" are expected to increase unemployment rates by 3-5 percent moving forward.
"We're looking at an economy only of low-wage work in the future, but also of high and permanent levels of unemployment," Warren said.
The panel was moderated by acclaimed labor reporter, Steven Greenhouse of the N.Y. Times and included Angelo Falcon, president of the National Institute for Latino Policy, Deborah Axt, co-executive director of Make the Road New York, M. Patricia Smith, the solicitor of labor for U.S. Department of Labor and Ana Avendano of the AFL-CIO.
Several panelists stressed the need to combat attacks from right-minded forces seeking to erode worker wage and benefit rights. Falcon says that those fighting for worker rights must correct popular narratives, many of which categorize wage and benefit increases for workers as business-killers.
"When we talk about the minimum wage, the immediate response from business is, we're going to lose jobs because, we're only going to be able to hire a few people. We have to have an answer to that objection," Falcon said. "Through raising the minimum wage, you create job growth in terms of people being able to put more money into the economy. You're [putting] less pressure on social welfare systems...the system is still subsidizing business [when the public provides] welfare and other social services."
Warren* argued a similar point.
"I think we have to be much more explicit about targeting the right the way that they've targeted us. There's a reason why the right has gone after public sector unionism," Warren* said. "They know that's where the heart of the labor movement is in terms of funding and in terms of membership. We have to get smarter about which parts of the right do we target to destroy ideologically, organizationally so that we can advance further our movements. "
Source
Who’s truly rebuilding the Democratic Party? The activists.
Who’s truly rebuilding the Democratic Party? The activists.
In June 2010 I made a very bad tweet that I came to regret. (Hard to imagine, I know.) I yelled at the disability...
In June 2010 I made a very bad tweet that I came to regret. (Hard to imagine, I know.) I yelled at the disability rights group Adapt.
I’d come to DC to attend a conference of progressive leaders, “America’s Future Now.” And while I knew a lot about financial reform, I didn’t know enough about politics, activism, or the Democratic Party.
Read the full article here.
Candidates Ready for GOP Debate: Alleged NY Backers of Hate Rhetoric
NEW YORK - Protestors called out some prominent New Yorkers ahead of tonight's GOP presidential candidate debate,...
NEW YORK - Protestors called out some prominent New Yorkers ahead of tonight's GOP presidential candidate debate, accusing them of funding a network of groups that promote anti-immigrant hate speech. Connie Razza, director of strategic research for the Center for Popular Democracy Action, said those allegations are confirmed in a new report that identifies New Yorker Barbara Winston as a financial contributor and board member of groups that, for example, worked to restrict undocumented immigrants' access to driver's licenses in the wake of the 9-11 attacks.
"When Donald Trump talks about deporting all of the undocumented immigrants in the United States," she said, "he's really picking up the platform that these wealthy New Yorkers have been investing in, over years." We reached out for comment to Bruce Winston Gem where Barbara Winston serves as president. Asked to respond to the allegation that Barbara Winston funded hate speech organizations, a manager there said, “No, it is not true.” Immigrant advocates say they protested in front of the Harry Winston Jewelers on Fifth Avenue Tuesday, because they say Barbara Winston owns that property.
Daniel Altschuler, managing director of the Make the Road Action Fund and co-editor of the report, "Backers of Hate in the Empire State," said it calls on nonprofit groups, political parties and the news media to sever ties with the New Yorkers cited in the report and the groups they are allegedly funding. "These are folks that have been buttressing the anti-immigrant infrastructure in this country," he said. "It identifies these folks, and demands that they be held responsible for promoting this kind of anti-immigrant rhetoric and false facts." Razza said it has been a major goal of these anti-immigrant groups to get their views front and center in prime-time slots such as tonight's GOP debate. "These wealthy New Yorkers are providing funding both to this anti-immigrant hate network and to the Republican Party," she said, "and starting to mainstream anti-immigrant hate in a way that's really dangerous."
The report is online at cpdaction.org. - See more at: http://www.publicnewsservice.org/2015-10-28/immigrant-issues/candidates-...
Source: Public News Service
Progressive Groups Go On The Offensive Against A Fed Interest Rate Hike
Progressive groups are launching a national campaign this week to pressure the Federal Reserve not to raise interest...
Progressive groups are launching a national campaign this week to pressure the Federal Reserve not to raise interest rates until wages begin growing more significantly. And they are getting some help from popular liberal economist Robert Reich.
The groups, led by the Center for Popular Democracy’s Fed Up campaign -- a foundation-funded nonprofit committed to a more "pro-worker" Federal Reserve -- inaugurated the effort in earnest over the weekend with mass email blasts and solicitation on other digital platforms of a petition, “Tell the Fed: Don’t Raise Interest Rates!”
Participating organizations, which include online progressive heavyweights CREDO Action, Daily Kos and the Working Families Party, will send the petition to an increasing number of activists over the course of the week. The groups, a complete list of which you can find in the petition, have a combined email list and website visitor reach in the millions.
Activists will deliver the petition signatures they amass in the coming weeks to Fed officials at the Kansas City Federal Reserve Bank’s annual symposium in Jackson Hole, Wyoming, onAug. 27-29. Fed Up is sending a delegation of low-income workers and representatives from communities of color to the symposium with the goal of raising awareness of working families’ concerns about Fed monetary policy. The Fed Up campaign formally began with a similar visit to Jackson Hole last year.
Some of the emails to activists will include a video from Robert Reich, an economist at the University of California, Berkeley and former secretary of labor, that is likely to give the effort a high-profile boost. Reich posted the video, along with a link to the petition, on his Facebook page on Friday. As of Monday afternoon it already had been viewed over 142,000 times -- and shared by more than 3,600 people. Reich relies on a production team to make his videos, but does the illustrations featured in them himself.
The new online campaign aims to influence the Fed at a pivotal moment: The central bank is indicating that it will raise interest rates as soon as September. Atlanta Fed President Dennis Lockhart, who sits on the FOMC, confirmed on Monday that the Fed would soon raise rates, saying the "the point of 'liftoff' is close." Lockhart's remarks come after July jobs numbers Friday showed relatively steady job gains.
Robert Reich’s Federal Reserve 101
The progressive groups pushing back against a rate hike are betting that if the public knew how much they stood to lose if rates go up, they would be willing to speak out against a hike. They could then generate pressure to change the Fed’s calculus.
For that to happen, though, people need to understand what the Federal Reserve is -- which activists acknowledge is rare.
So Reich’s five-minute video starts at square one, explaining how the Federal Reserve works and why it affects Americans’ lives -- before articulating the case against a rate hike. The Fed cuts interest rates, or keeps them low, he explains, in order to stimulate the economy. “The lower the [Fed’s] rates, the easier it is to borrow,” Reich says in the video. “The easier it is to borrow, the more active the economy becomes.”
Reich then elaborates on the virtuous cycle that takes hold when low rates leave people with more disposable income, as graphics illustrating his points whiz by onscreen. Consumers spend more, Reich explains, growing businesses and increasing demand for labor. And if there is enough demand for workers, he continues, employers raise wages to compete for those workers.
Why Do Progressives Think A September Rate Hike Is Premature?
Reich, like the campaign he is backing, makes the case that the Fed should wait until demand for workers is high enough to increase wages substantially before raising interest rates. Although the official unemployment rate of 5.3 percent is low by historical standards, it has yet to translate into substantial wage growth. Average wages have risen 2.1 percent in the past 12 months -- not much higher than the rate of price inflation, which, as of June, was 1.8 percent (not including energy and food).
Economists like Jared Bernstein of the Center on Budget and Policy Priorities argue that wage growth has yet to take off because there are still too many job seekers for the number of jobs available. The official unemployment rate does not account for the 6.3 million underemployed workers, who have part-time work but want to work full time, or the 668,000 jobless workers, who have given up seeking work altogether.
Although the progressive groups’ petition does not explicitly demand that the Fed wait for a specific wage growth figure before raising interest rates, the Fed Up campaign and its partners have largely coalesced around a wage growth target of 3.5 to 4 percent. The liberal-leaningEconomic Policy Institute, which is participating in the new petition campaign, estimates that with that type of wage growth, price inflation will not “significantly exceed” the Fed’s 2 percent inflation target.
These progressives warn that a Fed interest rate hike that occurs before significant wage growth takes hold would disproportionately hurt people of color and women. Both groups face routine discrimination in the job market that they are more likely to overcome in a high-demand economy buttressed by low rates. And people of color are much more likely to be workers on the lower side of the earnings spectrum, who have the least leverage vis-à-vis employers. That means they are often the last people to get hired or get a raise when the job market heats up, and the first to lose their jobs when it cools down. For evidence of this, they say, look no further than the shockingly high African-American unemployment rate of 9.1 percent.
What About Inflation?
The Fed balances its mandate to maximize employment with an obligation to prevent excessive inflation. That is why it raises interest rates when it believes prices are at or near its target inflation rate of 2 percent. Some economists also believe that even when consumer prices are below the target rate, the Fed should raise rates if housing and stock prices are getting unreasonably high.
Reich -- and the many economists and activists with whom he finds common cause -- appreciate the Fed’s obligation to prevent runaway inflation. But they note that inflation has remained consistently below the Fed’s target rate of 2 percent. And they believe that for the sake of job creation and wage growth, the economy can tolerate slightly higher inflation than the current Fed target.
“More jobs and better wages are more important than theoretical worries about accelerating inflation,” Reich concludes.
Reich and allies point to the late 1990s as a model for Fed monetary policy. They credit then-Fed Chair Alan Greenspan for refusing to raise interest rates even as the official unemployment rate dipped, against the wishes of other Fed officials concerned about inflation. As a result, wage growth was widespread enough to produce significant gains for workers at the bottom of the earnings spectrum.
A New Progressive Priority?
The petition campaign against a Fed rate hike is something of a coup for advocates who, asHuffPost reported at length in June, have long argued that Fed monetary policy should be a higher priority for the political left. Although the foundation-funded Fed Up campaign has been agitating for a more “pro-worker” Fed for nearly a year now, this is the first time it is collaborating with major progressive players like CREDO Action, Daily Kos and the Working Families Party. The Economic Policy Institute, which is a member of the Fed Up campaign’s founding coalition, is also activating its email list for a Fed Up petition effort for the first time.
A broad array of liberal-leaning organizations joined forces in the summer and fall of 2013 to torpedo President Barack Obama’s nomination of Lawrence Summers as chair of the Federal Reserve Board of Governors. Summers united economic progressives concerned about his Wall Street ties and women’s advocates angered by his remarks about women. Their efforts succeeded in winning the appointment of Janet Yellen as chair instead of Summers.
But since that time, the Fed has largely faded from the progressive foreground. Higher-profile fights like the movements for the $15 minimum wage and against the Trans-Pacific Partnership trade deal have taken up the lion’s share of progressive energy and attention, dwarfing more esoteric causes. To the extent progressives have publicly pressured the Fed, it has been to police Wall Street more carefully, not maintain a dovish monetary policy.
“In general it’s clear that the Federal Reserve gets far less attention from progressives than it should in light of the tremendous influence it has over the economy and Americans’ quality of life,” said Josh Nelson, communications director for CREDO Action.
This relative inattention is evident in how little Federal Reserve monetary policy has come up in the 2016 Democratic presidential primary. The topic has not been discussed widely on the campaign trail. Of the major Democratic presidential candidates, only former Maryland Gov. Martin O’Malley responded to a request for comment last week on a possible Fed rate hike. O’Malley agreed with progressive activists that the Fed should wait for more robust wage growth before raising rates.
By contrast, the right wing has relentlessly trained its fire on the Fed for “debasing” the dollar with its quantitative easing program -- its now-defunct multitrillion-dollar asset purchasing program -- and low interest rates. Republican members of Congress regularly grill Yellen for printing too much money.
To the extent that Republican presidential candidates have broached the subject, they have weighed in in support of raising rates. Donald Trump, a real estate mogul and ersatz Republican presidential candidate, warned last week that the Fed’s low interest rates are causing an asset bubble. New Jersey Gov. Chris Christie has also slammed the Fed’s “easy money” policies for endangering the economy.
But the petition effort raises advocates’ hopes that a progressive movement with the power to match the right's Fed lobby is finally taking shape.
Haedtler said that CREDO Action, Daily Kos and the Working Families Party were eager to get involved.
“They were very enthusiastic about targeting a new institution that was not accustomed to outside pressure by working families,” Haedtler said, adding that he thought soliciting these groups’ involvement “would be more challenging than it was.”
They were receptive to the argument, Haedtler said, that the Federal Reserve can “wipe out a lot of progress” on more visible issues like the minimum wage, if the Fed “does not recognize that the economic recovery has not benefitted everybody.”
CREDO Action did not specify how many activists it would target, but said that the petition would reach “many of the economic justice activists” on the group’s 3.8 million-person email list.
“The traditional obscurity [of the Fed] is why we must organize around it,” CREDO Action’s Nelson said. “People assume they can't influence the Fed. But that's wrong. These are people and they are open to both pressure and input. Pointing out that many communities still suffer is an essential role for advocates.” Nelson added that progressive input is a “necessary counterweight” to Wall Street influence on the central bank.
Chris Bowers, the Daily Kos’ executive campaign director, is confident that the Fed rate hike is not too esoteric for Daily Kos members. “One thing we've learned over the years is that Daily Kos readers tend to be very sophisticated, highly engaged activists who know a great deal about all manner of political issues,” Bowers said in an email. “In fact, some of our best-performing campaigns have focused on topics that might seem surprisingly obscure, such as net neutrality and filibuster reform. So we expect that our readers will readily grasp what's at stake here.”
Daily Kos is soliciting signatures for the petition through a splash screen some people see when they visit the site. Bowers estimates that 20,000 people a day will see the splash over the course of a campaign that will last at least two weeks. He said Daily Kos is gauging the “intensity” of their members’ interest in the Fed based on their engagement with the petition. If enthusiasm is high, it will send the petition to its much larger email activism list.
Beyond Stopping A Rate Hike
Ultimately, the Fed Up campaign and its allies are on a larger mission to make the Federal Reserve more accountable to working people. That means not only preventing an interest rate hike before greater wage growth takes hold, but also pushing the Fed to rebalance its dual mandate toward genuine full employment and higher wages, and away from what they believe is excessive concern about inflation. The theme of this year’s Jackson Hole symposium is“Inflation Dynamics and Monetary Policy,” which Fed Up points to as a typical sign of the Fed’s inflation bias.
“We want to reframe the narrative” at the symposium, Haedtler said. Inflation, he explains, “is not what is on the minds of low-wage workers who have been suffering through a very slow economic recovery.”
“We think of our campaign less as a left/right divide, and more as an effort to bring the voices of working families to the Federal Reserve for the first time,” Haedtler noted. “Ultimately our members are fighting for a broader recovery, better wages and better working conditions.”
Fed Up can point to concrete progress toward this goal since its inaugural action at the Jackson Hole symposium last August. Their protests there led to a meeting between Fed Up activists and Kansas City Fed President Esther George. That in turn opened the door to meetings with four other regional Federal Reserve bank presidents. Fed Up has also met with Yellen and several members of the Fed Board of Governors in their Washington offices.
The meetings have enabled working people organized by Fed Up to share their economic experiences with Fed officials, who make decisions that will affect these people’s lives.
Haedtler believes these meetings are already bearing fruit. The Fed created a Community Advisory Council in January to solicit more diverse views on the state of the economy.
“Even very hawkish regional presidents -- like James Bullard, the St. Louis Fed president -- really seem to take to heart some of the stories we convey to them,” he said.
The Fed Up campaign also wants to reform the selection process for regional Federal Reserve bank presidents, which it says reflects the narrow interests of the bankers that dominate their boards of directors. They are asking regional Fed presidents that they meet with for a timeline of their selection process and a list of candidates being considered.
Fed Up claims credit for the Minneapolis regional Federal Reserve Bank’s decision to disclose the process through which it would select its next president.
“We know something about congressionally confirmed Fed board governors, but very little about regional fed presidents, other than that they are overwhelmingly white, male and have close ties to the financial sector,” Haedtler said.
Source: Huffington Post
30 days ago
30 days ago