Which States Have Most to Lose From DACA Elimination
Which States Have Most to Lose From DACA Elimination
Attorney General Jeff Sessions announced Tuesday the end of an Obama-era program that has allowed almost 800,000...
Attorney General Jeff Sessions announced Tuesday the end of an Obama-era program that has allowed almost 800,000 undocumented young people temporary relief from deportation and the ability to work.
“We are people of compassion, and we’re people of law—but there’s nothing compassionate about the failure to enforce immigration law,” Sessions said in a speech that emphasized the argument that the Deferred Action for Childhood Arrivals (DACA) program, which was put in place through executive action in 2012, was an instance of executive overreach. “The nation must set and enforce a limit on how many immigrants we accept each year, and that means all cannot be accepted.”
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A Campaign for Full Employment, and the Federal Reserve
A Campaign for Full Employment, and the Federal Reserve
Fed Up Field Director Shawn Sebastian with the Center for Popular Democracy joins us to talk about their campaign...
Fed Up Field Director Shawn Sebastian with the Center for Popular Democracy joins us to talk about their campaign pushing the Federal Reserve to adopt pro-worker policies, keeping interest rates low, and how they re getting public support to build a better economy.
CHARLES SHOWALTER AND SHAWN SEBASTIAN
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Why You Should Care About the Federal Reserve’s Secrecy and Elitism
New Republic - Last weekend, Cee Cee Butler, a 34-year-old McDonald’s worker from Washington D.C., became sick with the...
New Republic - Last weekend, Cee Cee Butler, a 34-year-old McDonald’s worker from Washington D.C., became sick with the flu, or at least something that resembled the flu. Her phone had been cut off and she missed work Friday, Saturday and Sunday. “I did a ‘no-call, no-show’ for three days and I’ve never done that in over the year and a half I’ve been working here at McDonald's,” she said. “They terminated me Tuesday morning. So I lost my job, my rent is going up in December, I have two kids—19 and 5, a girl and boy—and I can’t afford to take care of them.”
On Friday, Butler gathered outside the Federal Reserve building with around two dozen activists from labor unions and progressive groups before an afternoon meeting with Fed Chair Janet Yellen. The groups are part of a new campaign called “Fed Up” that is pressuring Yellen and her colleagues to keep interest rates at zero until the recovery strengthens and wages rise. “The economy is not working for the vast majority of people,” said Ady Barkan, a lawyer from The Center for Popular Democracy, which is the lead organizer of the campaign. Fed Up wants to rectify that problem by putting direct pressure on the Federal Reserve itself—a quest that may not captivate the public’s attention but could have a very real effect on the lives of working Americans.
In August, for instance, members of Fed Up staged protests outside of the Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming. Many reporters there said it was the first time they could remember protestors at the conference—but their tactics must have worked, because Yellen agreed to meet with the protesters Friday afternoon in the boardroom where the Federal Open Markets Committee (FOMC) meets eight times a year to set monetary policy. Three other Federal Reserve governors—Vice Chair Stanley Fischer, Jerome Powell and Lael Brainard—joined the meeting and the activists said that Yellen was engaged throughout and was moved by the stories she heard. They hope that this meeting was just the first of many in the future.
The message the Fed Up campaign delivered is the same one voters sent loud and clear last week: The recovery is not being felt by millions of Americans. Exit polls indicated that 45 percent of voters considered the economy the most important issue of the midterms. Wage growth for low-income workers, like janitors and fast food workers, are barely keeping up with inflation. “That’s not an economic recovery,” said Jean Andre, who does location support for film production and is a member of New York Communities for Change. “That’s not the way thing should be.”
But the slow recovery isn’t always noticeable in leading economic indicators. The unemployment rate, for instance, has fallen 2.1 percentage points since the start of 2013 and is now at 5.8 percent, its lowest point in more than six years. As a result, some economists inside and outside the Fed, including inflation hawk Charles Plosser, have called for a hike in interest rates in the near future. “Beginning to raise rates sooner rather than later reduces the chance that inflation will accelerate and, in so doing, require policy to become fairly aggressive with perhaps unsettling consequences,” Plosser, the president of the Federal Reserve Bank of Philadelphia, said Wednesday.
Plosser’s worry about rising inflation, even though it is nowhere to be found, could prove dangerous. If the FOMC listens to the hawks, it will prematurely raise rates and choke off the recovery before workers see wage growth. So far, Yellen has done a good job ignoring Plosser and Co. And, luckily, Plosser and Richard Fisher, the president of the Dallas Federal Reserve Bank and another hawk at the FOMC, announced that they would retire in the spring of 2015, opening up two positions that have a significant impact on monetary policy. Fed Up sees their retirements as a boon—and is keen to have a say in the selection process.
Under the current rules, Plosser and Fisher’s replacements will be chosen by the board of the Philadelphia and Dallas reserve banks, respectively. Each board has nine members, three from banks and six from nonbanks—companies and organizations that are not financial institutions. Because of Dodd-Frank restrictions, only the six non-bank members are involved in selecting the replacements. But of those six members, three are chosen by banks and three are chosen by the Fed board in Washington. Workers and consumers are supposed to be represented on the board, but of the 108 members, 91 are from financial institutions and corporations. Just two are leaders of labor groups and another 15 represent non-profit organizations.
Fed Up has a list of demands to make the replacement process more transparent and to ensure the public has adequate representation within the central bank. They want a public schedule of the process, a list of criteria for how the replacements will be chosen, a chance for members to question the candidates, and public forums where citizens can discuss monetary policy with candidates and the search committee. These reforms, they hope, will keep presidents like Plosser and Fisher—who activists say are disconnected from the daily struggles of their constituents—out of office. “We need a president in Philadelphia who will listen to working people,” said Kati Slipp, the director of Pennsylvania Working Families. “Charles Plosser hasn’t been or he would not believe that our economy has really recovered.” In fact, Fed Up is already getting results. On Friday morning, the Philadelphia Fed announced that it was setting up an email to receive inquiries about the search process. “That would never have happened if this campaign hadn’t happened,” Slipp said. The campaign said it expected the same things from the Dallas Fed.
After Republicans destroyed Democrats in the midterms, many liberal commentators argued that a fresh agenda for raising wages could help the Democratic Party win back voters, particularly those in the white working class. But the problem isn’t that Democrats’ ideas—raising the minimum wage, investing in infrastructure and strengthening the safety net—won’t help middle- and lower-class Americans. It’s that the weak recovery has destroyed those ideas’ political salience. It’s a political problem much more than a policy one.
Such arguments almost always ignore monetary policy. After all, no one but Ron Paul fanatics care about the Federal Reserve. And the Fed is independent from the federal government. If a Democratic candidate’s economic message was to fill the FOMC with economists committed to keeping interest rates low or even adopting a different monetary policy regime altogether, voters would likely roll their eyes. It would be a political disaster. But given congressional gridlock, it might also be far more effective at boosting the recovery.
The Fed Up campaign isn’t going to change that. Millions of Americans will not suddenly realize that the most important economic actor in the United States is not the president or Congress but the Federal Reserve. They will not understand that some inflation is needed, especially right now, to convince businesses to invest and consumers to spend money to get the economy back going again. But the campaign may convince some Americans of the Fed’s importance. That’s why Cee Cee Butler, the former McDonald's worker who was fired Tuesday, and Jean Andre, the man who scouts out locations for films, spent a cold Friday morning outside the Fed.
“I just got out of the shelter two years ago and here I am about to be back in one. I’m not trying to go back there,” Butler said. “My daughter will never walk in my shoes. She doesn’t need to. That’s why my voice needs to be heard.”
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Parents as Decision Makers
Parents as Decision Makers
All the time, parents are making decisions about what happens in their children’s lives. The same needs to be true when...
All the time, parents are making decisions about what happens in their children’s lives. The same needs to be true when it comes to choosing what happens with their child’s academic education. It is more than just choosing a school but also what happens in the school building. With the sustainable community school model, parents are very much part of the decision-making process. This goes beyond the realm of engagement but views them as collaborators in the achievements of the school. The Community Schools Toolkit created by The Center for Popular Democracy signifies the importance of this involvement by stating, “parent engagement is promoted so the full community actively participates in planning and decision-making.” It is important to consider parents in the same manner as teachers and administrators although they provide a different perspective. It is like pieces to a puzzle, each one has a part to contribute which must be done for it to be whole. Parents must be at the table with equal input regarding the daily activities that happen in the school building from academics to after-school programming and other aspects such as community events.
It is quite understood, parents are not formally trained as educators; however, they are the first teachers of children. This is a shared experience we all have as adults. Yes, some were better than others but it was those things our parents taught us which have a lasting impact. As a result, parents possess the necessary qualities to be involved with the process of choosing curriculum, managing the budget, and identifying staff, teachers, and administrators who are a good fit with the school’s climate. The parents have a particular perspective when it comes to their involvement and their inclusion and embracement would create a cohesive culture for success. They need not be considered an option but one of the main individuals in building the school’s environment conducive to learning.
This role of parent involvement is different and separate from PTAs or PTOs. These organizations are representative of an existing institution within the school. It may not necessarily project the sole interests of parents since it is also an organization comprised of other members. Additionally, the groups are connected to a national organization where the interests may align with corporations. Parents as decision-makers bring a different viewpoint as a result of their concern for children and the community and not institutions or corporations.
The relationship between the school and parents needs to be one of partnership instead of a dichotomous one. They both are involved with developing the child to become a successful adult who can function as a productive member of society. One thing a parent is free to do when compared to those who work for the school district is aggressively advocate. There is every reason to take the risk where the answer may be no for others. They aren’t at risk of losing their job, adverse disciplinary action, or retaliation. So, parents can do what the others can’t which is lobby elected officials, make demands with the central office leadership and Superintendent, speak out against the unequal and unfair treatment, and actively galvanize all stakeholders to be involved in the process of making not only the school better but the overall community.
Since parents possess a variety of resources, it’s proper for them to assist with the development of the school. Some of these assets which can be contributed are time, talents, knowledge, and skills. For example, I am a Social Worker by profession and I can be utilized to provide a range of services to the school community. A benefit with having a parent involved is their existing relationship with the school along with their knowledge of the community, and their vested interest of the best possible outcome for the children, the school, and neighborhood.
There are times when parents are regarded as an after-thought and advisors. Ultimately, the successful outcome of the school is comprised of the necessary ingredient which is parent engagement. But, parents as decision makers goes beyond the realm of engagement to the extent of involvement in every aspect of the school’s functioning. Recently, there was reporting of lead levels above the EPA threshold in Newark, NJ public schools. Although this was an ongoing problem for some years and known to Newark Public School officials, this information wasn’t disclosed to the parents or the community. It is important for parents to be provided with the necessary information so they can determine how to proceed with it. Also, their inclusion recognizes the link between the overall success of the school and the progressive development of the community. When all of us embrace the inclusion of the children’s first teachers in the process of academic development, we will understand the essential impact of parents as decision-makers.
By Viva White
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Richmond Fed President Jeffrey Lacker to Retire in October
Richmond Fed President Jeffrey Lacker to Retire in October
Federal Reserve Bank of Richmond President Jeffrey Lacker, one of the Fed system’s most outspoken advocates for higher...
Federal Reserve Bank of Richmond President Jeffrey Lacker, one of the Fed system’s most outspoken advocates for higher short-term interest rates in recent years, will retire Oct. 1 after 28 years at the bank, the regional Fed bank said Tuesday.
The Richmond Fed’s board of directors has formed a search committee led by Chairwoman Margaret Lewis to find a new president, and has hired the firm of Heidrick & Struggles to assist in the search, the bank said. The bank intends to conduct “a nationwide search to identify a broad, diverse and highly qualified candidate pool for this leadership role,” it said.
Mr. Lacker became the second Fed official to announce his plans to retire in 2017. Atlanta Fed President Dennis Lockhart will step down at the end of February.
“Jeff has been an outstanding leader for the Richmond Fed and has made many contributions to the Federal Reserve System,” Ms. Lewis said in a statement announcing his departure.
A Richmond Fed spokesman said Mr. Lacker wants to return to teaching, writing and academic research, though he had no details on where Mr. Lacker may go after he leaves the bank later this year.
Mr. Lacker joined the Richmond Fed in 1989 and served in various leadership positions before becoming president in August 2004. For the past decade he has anchored the Fed’s hawkish wing, warning of the risks of rising inflation and dissenting often in favor of a higher benchmark federal-funds rate, which officials held near zero for six years following the financial crisis.
He was a voting member of the Fed’s policy committee in 2006, 2009, 2012 and 2015, and dissented a total of 15 times out of 32 meetings.
Mr. Lacker also argued against the Fed’s interventions in financial markets throughout the financial crisis, and has said financial instability was worsened by expectations that the Fed would always provide a backstop for financial firms in trouble.
Over the past year, he has also argued against efforts to overhaul the Fed system, including measures that would subject the Fed’s interest-rate decisions to greater congressional scrutiny or tie its policy to a mathematical formula.
“I’m hoping that our leaders in Congress and the administration understand that our independence is of value and is important to the credibility of the country’s commitment to price stability and I hope they’re willing to proceed accordingly,” he said after the November presidential election.
Mr. Lacker said in a statement Tuesday he felt fortunate “to have participated in some of the most extraordinary policy deliberations in our nation’s history. It’s been my deepest privilege to lead the Richmond Fed and the dedicated people who work here.”
The search to replace Mr. Lacker is likely to face scrutiny from activists and congressional Democrats who have called for more diversity among the Fed’s upper ranks, as well as more openness about how it selects its regional bank leaders.
Following Mr. Lockhart’s announcement last year, the left-leaning Center for Popular Democracy’s Fed Up campaign said it hoped the next Atlanta Fed president would be black or Hispanic, which would be a first for a regional Fed bank.
In an unusual move, a group of African-American House members wrote to Fed Chairwoman Janet Yellen and the chairman of the Atlanta Fed’s board urging them to consider candidates of diverse racial, ethnic, gender and professional backgrounds. The lawmakers also noted that most of the presidents worked at major financial firms before their appointments.
“We hope that candidates from distinctive sectors like academia, labor, and nonprofit organizations are given due consideration,” they wrote.
Before joining the Richmond Fed, Mr. Lacker was an assistant professor of economics at the Krannert School of Management at Purdue University and previously worked at Wharton Econometrics in Philadelphia, the bank said.
The bank posted information about its search process on its website Tuesday.
By Kate Davidson
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Ballot fight probable over higher Arizona minimum wage
Ballot fight probable over higher Arizona minimum wage
PHOENIX — Backers of a proposal to raise the state’s minimum wage to $12 an hour by 2020 claim they’ve already got...
PHOENIX — Backers of a proposal to raise the state’s minimum wage to $12 an hour by 2020 claim they’ve already got more than half the signatures they need, potentially setting the stage for an expensive fight with restaurants and other businesses.
Tomas Robles said Tuesday the campaign he is heading has 90,000 signatures in hand. But he conceded it will likely need far more than the minimum of 150,642 names on petitions by the July 7 deadline to ensure the measure goes on the November ballot.
Robles said the group has at least $200,000 to supplement its volunteers with paid circulators to more than meet the goal.
That would provide voters the first opportunity to update the law they approved in 2006, which created a $6.75-an-hour state minimum wage the first year, when the federal government said employers could pay as little at $5.15.
With inflation adjustments required by voters, Arizona’s minimum wage is now $8.05 an hour versus the $7.25 federal minimum. Presuming 2 percent inflation per year between now and the end of the decade, Arizona’s figure still would be below $9.
The 2016 initiative contains something new: A requirement for paid sick leave of 40 hours a year for employees of companies with 15 or more workers. For smaller firms, the paid time off would be 24 hours.
One thing will be different this year than a decade ago. At that time the business community, confident a state like Arizona would never vote to increase wages, didn’t bother to mount a campaign against the 2006 initiative. The result was a blowout, with the measure passing by a margin of close to 2-1.
Glenn Hamer, president of the Arizona Chamber of Commerce and Industry, said Tuesday that business interests won’t make that mistake again.
“I would expect you’d see a very strong response to this, and a very broad response from chambers, major trade associations like the (Arizona) Restaurant Association to fight this should it qualify (for the ballot),” he said.
Hamer said the change would be particularly damaging for small businesses, which would be forced to provide immediate wage increases that could amount to $3 an hour.
He said that is coming on top of increased costs for health insurance for firms that provide such benefits to their workers. “Some simply won’t be able to survive,” he said.
But proponents are hoping to counter that by building a coalition of small businesses that say they can live with a $12 minimum wage.
At Tuesday’s news conference, one of the members, Stephanie Vasquez, owner of Fair Trade Coffee in Phoenix, detailed her support.
“I deeply believe that as an entrepreneur and as a human being that people should be treated with respect and dignity,” she said. Vasquez said the majority of her staffers already are being paid more than the $12 the initiative would mandate.
Arizona’s current $8.05 minimum wage translates to $16,744 a year.
For a single person, the federal government considers anything below $11,880 a year to be living in poverty. That figure is $16,020 for a family of two and $20,160 for a family of three.
Robles, former executive director of Living United for Change in Arizona, said that organization has put $200,000 into the campaign, much of it from a grant from The Center for Popular Democracy, an organization involved in efforts to establish a $15 minimum wage nationally. Campaign-finance reports also show $25,000 from The Fairness Project, which is working to push states to set minimum wages.
By Howard Fischer
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Healthcare protesters arrested at Republican Senate offices
Healthcare protesters arrested at Republican Senate offices
At least 20 health care activists with pre-existing conditions were arrested during sit-ins at Republican senators’...
At least 20 health care activists with pre-existing conditions were arrested during sit-ins at Republican senators’ offices on Capitol Hill on Wednesday, with the numbers of arrests poised to skyrocket into the hundreds.
The sit-ins were organized by a coalition of liberal interest groups to protest the lack of protections for people with pre-existing conditions in the Republican health care bill, which has temporarily stalled in the Senate. As they obstructed access to the senators’ offices, tens of activists were arrested by Capitol Police in a show of civil disobedience.
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Fed Splits Evident Amid Wait for Yellen: Jackson Hole Journal
Bloomberg News - August 22, 2014, by Jeff Kearns, Simon Kennedy and Michael McKee - Divisions within the...
Bloomberg News - August 22, 2014, by Jeff Kearns, Simon Kennedy and Michael McKee - Divisions within the Federal Reserve over how long to keep easy monetary policy are already in evidence in Wyoming as investors prepare for Chair Janet Yellen’s keynote speech.
Fed Bank of St. Louis President James Bullard told Bloomberg Radio that the U.S. central bank may begin tightening monetary policy earlier than officials previously expected.
“The evidence is leading toward an earlier increase than would have been in the works earlier this year,” said Bullard. “Labor markets have improved quite a bit relative to what the committee was thinking.”
Bullard spoke after Kansas City Fed President Esther George told Bloomberg Television that broad-based employment gains suggest the U.S. economy is strong enough to withstand higher interest rates. Philadelphia Fed President Charles Plosser, who voted against the Fed’s policy statement last month, told CNBC he’s concerned about the Fed not adjusting policy appropriately.
By contrast, Atlanta Fed President Dennis Lockhart urged more patience, warning in a separate interview with Bloomberg Radio against “moving prematurely and snuffing out some progress.”
* * *
Robots don’t steal jobs, the U.S. labor market is less flexible than it was and workers haven’t suffered unprecedented periods out of work.
Photographer: Bradly Boner/Bloomberg
Fed Chair Janet Yellen arrived at the dinner to be greeted by about 10 people wearing bright green T-shirts emblazoned with “What Recovery?” and carrying placards with labor market data. Close
Those are among the conclusions of papers being presented at the symposium. Here is a review of their contents, which can be read in full on the Kansas City Fed’s website.
Robots and computers don’t steal as many jobs as some believe, and automation actually benefits many workers, Massachusetts Institute of Technology Professor David Autor said in his paper.
A key reason humans aren’t obsolete yet is that simple tasks such as visually identifying a chair, which any child can do, aren’t so easy for engineers to teach to computers, Autor said.
“Journalists and expert commentators overstate the extent of machine substitution for human labor and ignore the strong complementarities that increase productivity, raise earnings, and augment demand for skilled labor,” he wrote. “Challenges to substituting machines for workers in tasks requiring flexibility, judgment, and common sense remain immense.”
* * *
The U.S. labor market became less fluid in recent decades partly because of an aging workforce, a shift to older businesses, and the spread of occupational licensing and certification, economists Steven J. Davis and John Haltiwanger wrote in their paper.
The economists define labor market fluidity as “flows of jobs and workers across employers.” The paper found the U.S. “underwent a large, broad-based decline in the pace of labor market flows in recent decades.”
“An aging workforce is a factor behind the slowdown of worker reallocation,” the paper said.
* * *
U.S. workers in the aftermath of the 2007-2009 recession haven’t experienced unprecedentedly long bouts of non-employment, according to a paper by economists Jae Song and Till von Wachter.
Their findings “suggest that the potential for hysteresis in the aftermath of the Great Recession is moderate,” the paper said. Hysteresis posits that people out of work for too long have a harder time finding work, leading to a persistent decline in the employment-to-population rate
* * *
Policy makers would benefit from a better understanding of labor markets, economist Giuseppe Bertola argued in a paper that weighed the impact of rules making those markets rigid or flexible.
Rules that protect workers from job losses and provide more generous unemployment benefits can soften and smooth shocks to the economy, said Bertola.
* * *
George opened the symposium late yesterday by putting the presenters on the spot.
The last conference devoted to labor markets was 20 years ago, George told the group of almost 200 as they ate steak and salmon dinners beneath elk antler chandeliers.
The presenters and discussants back then included five future Nobel Prize winners and two academics who would go on to be central bankers: Bank of England Deputy Governor Charles Bean and Stanley Fischer, the Bank of Israel governor who became Fed vice chairman in June. Fischer sat at one of the front tables last night.
“So for those of you that will be on the program,” George said to laughter, “We’re either setting you up for a blessing or a curse.”
This year’s topic is “Re-Inventing Labor Market Dynamics.” In 1994 it was “Reducing Unemployment: Current Issues and Policy Options.”
George said she went through the 1994 proceedings only to find central bankers and economists are still grappling with some of the same basic issues today.
“I saw that the discussion included things like the decline in demand for low-skilled workers due to technology and the challenge of the long-term unemployment,” George said. “And questions were raised by that symposium, as they are today, about the usefulness of the unemployment rate as a measure of economic slack.”
It reads like a list of the most vexing issues the Fed faces now and will be attempting to tackle today and tomorrow.
* * *
Fed Chair Janet Yellen arrived at the dinner to be greeted by about 10 people wearing bright green T-shirts emblazoned with “What Recovery?” and carrying placards with labor market data.
The protesters had traveled to Wyoming to highlight the plight of “struggling workers from around the country” who want the Fed to pursue “full employment that reduces poverty and expands the middle class,” according to the Center for Popular Democracy, a Brooklyn-based organization. The backs of their T-shirts had a graph comparing the performance of wage growth among the top 1 percent and the rest.
Ady Barkan, a staff attorney with the group, spoke briefly with Yellen at the door of the lodge’s Explorers Room. “She said she understands the issues we’re talking about and is doing everything they can,” he said, after she had entered the room.
Yellen has regularly cited weak labor markets as a scourge of the economy she’s trying to boost with easy monetary policy.
Shemethia Butler, who works part time at a McDonald’s Corp. restaurant in Washington, was one of those to make the trip. The 34-year-old said that while she isn’t up on monetary policy, she wants policy makers to know she fears higher interest rates for her and her community. She said she works 25 to 35 hours a week for $9.50 an hour at a job she’s had for just over a year. Before that she was unemployed for two years.
“There’s no recovery,” Butler said. “The economy is broken because there aren’t enough jobs for people like me.”
* * *
Yellen’s speech will be the main event of the first full day of the conference. She will speak at 8 a.m. Mountain Time today.
Her address will be followed by the presentation of the paper by Davis and Haltiwanger.
Autor will then discuss job polarization before a panel on demographics featuring Karen Eggleston of Stanford University, David Lam of the University of Michigan and Ronald Lee of the University of California, Berkeley.
European Central Bank President Mario Draghi will deliver the keynote luncheon speech.
Tomorrow, Von Wachter and then Bertola will present their papers.
The final panel will provide an overview of labor markets and monetary policy. It will include Bank of England Deputy Governor Ben Broadbent, Bank of Japan Governor Haruhiko Kuroda and Brazilian central bank chief Alexandre Tombini.
* * *
The conference is lacking Wall Street participants for the first time.
An exception is Jacob Frenkel, chairman of JPMorgan Chase International, who is attending in his capacity of chairman of the board of trustees of the Group of 30, a private-sector group of mainly former policy makers which advises central banks and governments. Tim Adams, president of the Institute of International Finance, is also present.
Draghi, Kuroda and Bank of Canada Governor Stephen Poloz provide international central banking firepower.
Among academics in attendance are Alan Blinder of Princeton University, Harvard University’s Kenneth Rogoff and Martin Feldstein, and John Taylor of Stanford University. President Barack Obama’s administration is represented by Jason Furman, chairman of the Council of Economic Advisers and Jeffrey Zients, director of the National Economic Council.
* * *
The backdrop for the symposium and Yellen’s speech was set by the release of the minutes from the Federal Open Market Committee’s July discussions.
Fed officials in July raised the possibility they might raise rates sooner than anticipated, as they neared agreement on an exit strategy. Some participants were “increasingly uncomfortable” with the pledge to keep interest rates low for a “considerable period,” the minutes said.
At the same time, “many participants” still saw “a larger gap between current labor market conditions and those consistent with their assessments of normal levels of labor utilization.”
* * *
* * *
Some recent stories on the U.S. labor market:
* * *
The opening day of Jackson Hole has been associated with stock-market gains in each of the past seven years. The Standard & Poor’s 500 Index rose an average 1.3 percent on each of them from 2007 to 2012, following speeches by then-Chairman Ben S. Bernanke, who skipped last year’s conference.
The biggest climb was the 1.9 percent of 2009, when Bernanke said the economy appeared to be “leveling out.” Gains also followed his signals of 2010 and 2012 that fresh asset-purchases were imminent.
The bar is therefore set high for Yellen who identifies slack labor markets as a reason for easy monetary policy. Economist Ed Yardeni says the “Fairy Godmother of the Bull Market” won’t let us down.
Still, Steven Englander of Citigroup Inc. says that because “dovishness is increasingly anticipated,” Yellen may have to intensify her support for low interest rates if risk-assets such as stocks are to rally anew.
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Starbucks Employees Treated Badly
While Starbucks Corp. (NASDAQ: SBUX) CEO and founder Howard Schultz barnstorms America with one new program to help...
While Starbucks Corp. (NASDAQ: SBUX) CEO and founder Howard Schultz barnstorms America with one new program to help Americans after another, a new report shows his company continues to treat many of its employees badly.
According to research released by experts at the Center for Popular Democracy:
A 2015 nationwide survey of Starbucks workers reveals that the company is not living up to its commitment to provide predictable, sustainable schedules to its workforce. Starbucks’ frontline employees bear the brunt of the management imperative to minimize store labor costs, which takes precedence over attempts to stabilize work hours, provide healthy schedules, and to ensure employees have real input into their working conditions.
Also:
Many Starbucks scheduling policies fail to reflect the company’s human-focused values, while other policies designed to promote sustainable schedules have been implemented inconsistently.
According to a recent report from 24/7 Wall St. titled Companies Paying Americans the Least:
Coffee giant Starbucks employs roughly 141,000 people in the United States at more than 7,300 locations. Because the coffee chain offers some benefits not commonly offered in low-paying jobs, it has long been considered the ideal job for young students supporting themselves or even single parents. However, an increasing number of reports suggest the famous Seattle company makes life difficult for its employees. Of particular note is the company’s increasing use of complicated and inconsistent scheduling, a practice also used by many other major retailers. This practice means that baristas’ hours may be posted with little notice, preventing them from making other plans, and therefore nearly denying them the ability to earn extra income from other sources.
The work hours, benefit problems and low pay challenges face many employees at large food chains and major retailers, but none of those places has a chief executive who publicly advocates the right of many of America’s most economically challenged people. Among the most recent was Schultz’s effort to support hiring the underprivileged in Phoenix:
“Chicago marked an important milestone in our efforts to put America’s underserved youth on a pathway to employment,” said Howard Schultz, chairman and chief executive officer of Starbucks and co-founder of the Schultz Family Foundation. “As we look ahead to Phoenix, where one in five youth is not in school or employed, we have a critical opportunity to accelerate our collective hiring efforts and create meaningful lifelong opportunities for all. I truly believe that these young men and women represent the most significant untapped source of productivity and talent for our economy, and America’s leading companies are ready to hire them.”
If one of these young people gets a job at Starbucks, the “meaningful lifelong opportunities” may not be much of an opportunity at all.
Source: 247WallSt.com
Death Cab For Cutie shares a new, anti-Trump track
Death Cab For Cutie shares a new, anti-Trump track
Death Cab For Cutie is no fan of Donald Trump. The group has released a new song, “Million Dollar Loan,” inspired by...
Death Cab For Cutie is no fan of Donald Trump. The group has released a new song, “Million Dollar Loan,” inspired by the candidate’s dubious claims of rising from the bottom on his own when he was actually launched into the business world on the back of a million-dollar loan from his father. In a statement, Death Cab frontman Ben Gibbard said that he wrote the song after being “disgusted” by how “flippant” Trump was in his assertions. He goes on to say Trump is “beneath us,” noting that “Donald Trump has repeatedly demonstrated that he is unworthy of the honor and responsibility of being President of the United States of America, and in no way, shape, or form represents what this country truly stands for.”
“Million Dollar Loan” is the first song from the “30 Days, 30 Songs” project, launched by the writer Dave Eggers. Imagined as a continuation of his 2012 “90 Days, 90 Reasons” project, “30 Days, 30 Songs” will, as its title suggests, launch a new, anti-Trump song into the world every day until the election. According to a press release, tracks will be a mixture of new material and unheard songs, and this week’s offerings will include original cuts from Aimee Mann, Jim James, Thao Nguyen, Bhi Bhiman, and Daveed Diggs’ group Clipping, as well as a never-before-heard-unless-you-were-there live song from R.E.M.
All of the tracks will be available on the 30 Days, 30 Songs website, as well as on both Spotify and Apple Music. You can also pick up the songs on iTunes, and all proceeds will be donated to the Center For Popular Democracy, a group that is working to ensure universal voter registration for all Americans.
By Marah Eakin
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1 month ago
1 month ago