The Health-Care Industry Is Sick
The Health-Care Industry Is Sick
I have ALS, a deadly, incurable neurological disease that is paralyzing my whole body, including my diaphragm. This...
I have ALS, a deadly, incurable neurological disease that is paralyzing my whole body, including my diaphragm. This makes it difficult for me to breathe while lying flat in bed. This month, my doctor prescribed me a Trilogy breathing-assistance machine, which would solve the problem (at least for now). Yet my insurance, Health Net, denied coverage, calling it “experimental.”
Read the full article here.
Hillary Clinton wants to shake up the Fed
Hillary Clinton wants to shake up the Fed
Hillary Clinton wants the Federal Reserve to look a lot different. The Democratic candidate's campaign said Thursday...
Hillary Clinton wants the Federal Reserve to look a lot different.
The Democratic candidate's campaign said Thursday that it supports a plan presented by Democratic lawmakers calling for more diversity at the Federal Reserve and removing bankers from the boards of regional branches.
A statement from Clinton campaign spokesperson Jesse Ferguson argued that the changes were necessary in order to make the central bank more representative of the American people (emphasis ours):
The Federal Reserve is a vital institution for our economy and the well-being of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That's why Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms -- like getting bankers off the boards of regional Federal Reserve banks -- are long overdue. Secretary Clinton will also defend the Fed's so-called dual mandate -- the legal requirement that it focus on full employment as well as inflation -- and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry.
The biggest issue raised in Secretary Clinton's statement is that employees of banks make up a considerable portion of the boards of the twelve regional Federal Reserve banks.
The original letter, signed by Congressional Democrats such as Massachusetts Sen. Elizabeth Warren and presidential candidate Vermont Sen. Bernie Sanders, was sent to Federal Reserve Chair Janet Yellen on Thursday morning. It cited some gains made by the Fed, but said there is more work to be done.
"However, despite these gains, we remain deeply concerned that the Federal Reserve has not yet fulfilled its statutory and moral obligation to ensure that its leadership reflects the composition of our diverse nation in terms of gender, race and ethnicity, economic background, and occupation, and we call on you to take steps to promptly begin to remedy this issue," said the letter.
The Democrats' letter also cited statistics that showed that 92% of regional bank presidents are white; 100% of the current voting members of the Federal Open Markets Committee are white, and 75% of the regional bank directorships are male.
The Fed's leadership is made of three levels. The lowest level is made up of the 12 regional banks' boards of directors. Those elect the next level, the presidents of the regional branches. At the top level are the seven members of the Fed's Board of Governors appointed by the US president, including the chair.
The seven governors and the regional presidents make up the Federal Open Markets Committee, which determines monetary policy for the US.
The letter from Democrats also advocated for caution in monetary-policy decision-making at upcoming meetings, taking into consideration how policy would affect average Americans.
"Moreover, as you make crucial monetary policy decisions in 2016, we urge you to give due consideration to the interests and priorities of the millions of people around the country who still have not benefited from this recovery," said the letter.
"We share the vision that you laid out in Chicago two years ago: an economy in which all working families 'get the chance they deserve to build better lives'."
There has been a push among Democrats in Congress urging the Fed to keep interest rates near their historically low levels in order to allow more workers to find jobs and increase wages.
Chair Yellen said in her regular testimony before Congress that she is sympathetic to the position.
By Bob Bryan
Source
We Can Fight Back Against Trump’s Islamophobia
We Can Fight Back Against Trump’s Islamophobia
Taif Jany is a rising young policy expert who was born and raised in Iraq and now lives in Washington, DC. His family...
Taif Jany is a rising young policy expert who was born and raised in Iraq and now lives in Washington, DC. His family is Mandaean, not Muslim, but his birthplace and brown skin make him feel like a target all the time. He sometimes looks over his shoulder when he walks through DC, where he works as policy coordinator for the Young Elected Officials (YEO) Network Action, a program of People for the American Way. Over the last year, his feelings of insecurity have only gotten worse.
This article was produced in partnership with Local Progress, a network of progressive local elected officials, to highlight some of the bold efforts unfolding in cities across the country.
“Personally I feel intimidated when I walk around the street,” said Jany. “I feel like I’m an easy target, even though I’m not Muslim. I hear from some of my Muslim friends about daily harassment in cities, suburbs, everywhere.”
And that was before Donald Trump won the presidential election.
Jany and his friends have good reason to be scared. Muslims, along with Arabs and South Asians more broadly, are under assault in the United States. While anti-Muslim bigotry has a long and grotesque history in this country, the shape and nature of the bias has intensified during the last few years, with Muslims suffering the fallout in deeds as well as words. In 2015, 78 mosques were targeted for arson or other forms of vandalism, more than triple the number of mosques targeted in the two years prior. Since 2010, ten states have passed “anti-Sharia” laws, with a majority of the rest pushing to add “anti-Sharia” measures to their books, never mind the fact that Sharia poses zero threat, legal or otherwise, to American constitutional law. And hate crimes are on the rise across the country, with official reports of anti-Muslim crimes jumping from 154 in 2014 to 174 in 2015.
Then there is the rhetoric—poison-tipped words and proposals deployed, not merely by fringe-racist characters like Pamela Geller but also by leading political figures who have turned Muslim bashing into campaign-season sport. Trump has rightly garnered the most attention with his pitch for a “total and complete shutdown of Muslims” seeking to come to the country, followed by the allegedly toned-down version of that pitch—his call for “extreme vetting.” He has also said he would “implement” a database to track Muslims. But he has hardly been the only one to embrace bigotry. Almost all of his Republican primary competitors trafficked, at some point or another, in anti-Muslim slurs, with Ben Carson comparing Syrian refugees to “rabid dogs” and Mike Huckabee describing Muslims as “uncorked animals.” And such rhetoric hurts; it has real, often violent, consequences. One recent Georgetown University study found that anti-Muslim attacks corresponded with calls from prominent politicians to ban Muslim immigrants.
That’s why Jany, along with hundreds of politicians and local leaders across the country have begun pushing back. Under the aegis of the American Leaders Against Hate and Anti-Muslim Bigotry Campaign, progressive officials at every level of local government have begun introducing legislation and pressing for policies that combat Islamophobia. From school-district initiatives in California and elsewhere that require schools to monitor religious bullying, to advertising and education campaigns in cities like New York that aim to teach non-Muslims about Muslim communities, local officials are joining forces with Muslim constituents to show what true leadership looks like. In the last month alone, the city councils of Columbus (Ohio) and New York City passed resolutions condemning Islamophobia—and affirming support for Muslim communities.
“We were regressing into more and more Islamophobia,” said Daneek Miller, who represents southeast Queens as the New York City Council’s only Muslim member and who helped pass the New York resolution. “These last six months or so, with Trump, have made things worse. We had to do something to reverse the trend.”
These new efforts are taking root in cities and towns across the country, creating oases of tolerance in some of the most unlikely states. In Kansas City, Missouri, the school board recently passed a resolution that condemns hate speech against Muslims and those who might be mistaken for Muslims, and explicitly supports its Muslim students. The Metro Nashville Public School Board in Tennessee adopted a similar resolution on October 11.
The American Leaders Against Hate campaign is the joint creation of Local Progress, a network of hundreds of progressive local officials, and the YEO Network Action, which came together earlier this year in the hope of transforming isolated local initiatives into a national platform against Islamophobia. Even before the campaign began mobilizing officials, the occasional mayor or city council would attempt isolated interventions. (In Muncie, Indiana, home state of Trump running mate Mike Pence, for instance, the City Council passed a unanimous resolution promoting religious freedom this past March.) Since the campaign’s launch, these interventions have accelerated rapidly in number as well as kind.
The campaign has thus far come up with about a dozen policy solutions to reduce Islamophobia. Some of them are relatively easy lifts that can be done on a local level. For instance, school districts can write into their bylaws explicit support for Muslim students, and a commitment to hold those who discriminate based on race or religion accountable for their actions. Many school districts have begun to take bullying more seriously; the American Leaders Against Hate campaign suggests being extra-vigilant about bullying based on religion or skin color, including a formalized tracking system for incidents.
Schools can also work anti-bullying and pro-diversity information into their curricula. They can train teachers and guidance counselors to not only know more about Muslim cultures but also to know how to spot bias within themselves and their students, and how to deal with it. While these measures are relatively minor tweaks on their own, together they add up to providing more inclusive environments for Muslim kids and others whose place of birth or religion make them susceptible to Trump-style bigotry.
Other policy changes, such as establishing anti-profiling measures for police, will need to clear more hurdles. But the first step toward clearing those hurdles is to get local elected leaders together to create a national platform capable of tackling bigger issues. The American Leaders Against Hate campaign, for instance, has recommended that states curb surveillance, which disproportionately affects Muslim communities. In the age of NSA data mining, that might be a big ask, but local officials are already making some headway. In June, Santa Clara County, California, passed a landmark ordinance that will help inform citizens about new technology the government is using for policing and surveillance, and make the legal framework for using those technologies transparent and open for debate.
While many of the efforts have been warmly received, a few have run into the buzzsaw of anti-Muslim hysteria either during or after their passage. In Kansas City, for instance, the school-board resolution condemning anti-Muslim hate speech caused an uproar that spread well beyond the city. Despite the fact that the resolution doesn’t require any major changes to school curricula, conservative websites warned of “creeping Sharia law,” and the school district received thousands of angry, sometimes violent, e-mails, many originating from an extremist group called Act for America. The barrage was so intense that the school district had to set special e-mail filters so that its employees could conduct normal business.
That backlash, Kansas City Board of Education chair Melissa Robinson said, was further proof of the amount of work needed to combat Islamophobia. “It’s an illumination of the hate that’s going on around our country,” Robinson said. “As an African-American woman, thinking about the history of what it means to be black in this country, I can relate to what they’re going through in a very deep way.”
Robinson says Kansas City Public Schools joined the American Leaders Against Hate campaign because they understood that Islamophobia wasn’t limited to the city’s school district. The campaign allows local action, like the kind Robinson is doing in Kansas, to have national impact.
Progressives at every level of local government have begun introducing legislation that combats Islamophobia.
While policy is the end goal of the nationwide campaign, its organizers also see it as a chance for ramping up pro-diversity rhetoric. Just as Donald Trump’s verbal attacks on Muslims have led to an increase in anti-Muslim violence, members of the American Leaders Against Hate campaign are hoping that by highlighting Islamophobia and the need for diversity and tolerance, they’ll be able to spur action in the other direction. That’s why the first part of the campaign has involved getting hundreds of local leaders to sign a letter pledging their support for Muslim communities: to show there is a large and effective counterweight to hateful rhetoric.
As the letter demonstrates, countering hateful rhetoric doesn’t have to involve arduous policy change. Instead, it can involve leaders using their positions of power to call for greater tolerance. Under New York City Mayor Bill de Blasio, for example, the city has begun an ad campaign to not only promote tolerance, but also ensure that Muslim New Yorkers feel welcome in the city. And in Minnesota, which has the largest Somali population in the United States, Abdi Warsame, a City Council member and Local Progress stalwart, has been using his platform to call for greater understanding between the Muslim and non-Muslim community, and to push for city services to be accessible to people who speak different languages, a boon to the city’s large Somali population.
“It’s very important to highlight the issue of Islamophobia in the same way we’d highlight anti-Semitism or homophobia, and start having a dialogue and discourse,” Warsame said. “We want to bring people together to discuss this issue. It’s not just about Muslims. It’s about who we want to be as cities, as states, as a country.”
By Peter Moskowitz
Source
As the federal government fails the people of Puerto Rico, local governments and states must step up
As the federal government fails the people of Puerto Rico, local governments and states must step up
Given the likelihood that even more Puerto Ricans will resettle on the mainland the Center for Popular Democracy and...
Given the likelihood that even more Puerto Ricans will resettle on the mainland the Center for Popular Democracy and Local Progress have published a policy guide, the first of its kind, offering a roadmap for cities and states to address the immediate needs of their new constituents.
Read the full article here.
Another retailer pulls plug on on-call scheduling
"Following discussions with my office, L Brands' (LB...
"Following discussions with my office, L Brands' (LB) subsidiary Bath & Body Works has agreed to end on-call shifts for employees in all U.S. stores next month," New York Attorney General Eric Schneiderman said Wednesday in a statement.
The agreement comes after the Columbus, Ohio-based retailer made the same moves at youth-focused retailer Abercrombie & Fitch (ANF) and underwear purveyor Victoria's Secret.
L Brands, which operates nearly 1,600 Bath & Body Works stores in the United States, declined to comment. A company source, however, said the company is phasing out on-call scheduling.
The company's move drew limited praise from one group advocating for workers, which said the change, while positive, still leaves troublesome policies in place.
"Since July, they have been relying on shift extensions at Victoria's Secret, which are on-call shifts by another name," Erin Hurley, an organizer for Rise Up Georgia in Atlanta, a partner of the Fair Workweek Initiative at the Center for Popular Democracy. "While we celebrate the step forward, we call on L Brands to take a definitive step toward a fair workweek by giving workers shifts with definite start and end times, and enough hours to support their families," added Hurley, a former Bath & Body Works employee.
Schneiderman in August said Gap (GPS) would this month end its policy of requiring workers to remain on-call for short-notice shifts after his office launched an inquiry, requesting information about scheduling practices from 13 retailers, including Gap, Abercrombie & Fitch and Bath & Body Works.
At the time, the attorney general said his office had received reports of more employers setting shifts the night before or even just a few hours in advance. The practice left workers with little time to arrange for childcare or work other jobs.
In New York, if workers shows up for a shift that they end up not being needed for, they're legally entitled to four hours of pay. Schneiderman's investigation delved into possible violations of that law.
"Employees deserve stable and reliable work schedules to adequately plan for childcare, transportation and other basic needs," Schneiderman said, adding that his inquiry had yielded "positive results for tens of thousands of workers."
Roughly a dozen states and a few municipalities have passed legislation addressing on-call scheduling, and a bill, the Schedules That Work Act, was reintroduced on Capitol Hill in July, with Sen. Elizabeth Warren, D-Massachusetts, among the sponsors.
"You can't win what you don't fight for," Warren told a news conference in acknowledging that the bill stood little chance of being enacted by the Republican-led Congress.
Source: CBS News
Elizabeth Warren, Workers Take Aim at ‘Walmart Economy’
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-...
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-CA) invited Walmart workers to brief Congress on Tuesday about the retail giant’s abusive practices, the conversation was about more than just Walmart.
“No one in this country should work full-time and still live in poverty,” Warren said.
“This is about the simple dignity of the people you have hired to work,” Miller said. “When you have a higher minimum wage, fair scheduling, and equal work for equal pay, the perception of the business goes up in the people’s mind, the customers go up and the revenues go up.”
Cantare Duvant, a Walmart customer service manager, said at the briefing that since Walmart is the nation’s largest retailer, it sets the standard for others in the industry. “So not only do we as Walmart workers deserve better, our economy also deserves better,” she said.
Duvant is a member of OUR Walmart (Organization United for Respect at Walmart), a union-backed group of Walmart workers who are, in Duvant’s words, “struggling to support our families on low pay and erratic scheduling” in what is now “Walmart’s low-wage economy.”
“Walmart specifically is worth discussing not only because of the 1.3 million workers it directly employs, but also because of the impact its employment practices have on the rest of our economy,” said Amy Traub, senior policy analyst at Demos. She said Walmart does this by “pushing down wages, limited workers hours, and squeezing its suppliers and its competitors.”
A majority of Americans are paid by the hour, and about half of early-career adults have no say in their work schedules, said Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy. “This isn’t just a narrow section of people,” she said.
Sen. Warren, a progressive hero who was recently appointed to a position in the Senate Democratic leadership, said that the issue of low-wage work in America is “deeply personal” for her.
When her father lost his job after having a heart attack, Warren said, her working-class family couldn’t pay the bills, lost their car, and almost lost their home. Then one day, “My mother, who was 50 years old and had never worked outside the home, pulled on her best dress, put on her lipstick, put on her high heels, and walked to Sears to get a minimum-wage job.”
“But here’s the key: It was a minimum-wage job in an America where a minimum-wage job would support a family of three.”
That could never happen today, Warren said, when “a momma and a baby on a full-time minimum-wage job cannot keep themselves out of poverty.”
Warren used the briefing to promote three pieces of legislation aimed at helping low-wage workers, including but not limited to people working at Walmart.
Those bills would raise the federal minimum wage to $10.10 per hour, give workers more reliable and flexible schedules, and help women address unequal pay based on gender.
Equal pay came up because women make up about two-thirds of the low-wage work force, and many are family breadwinners. Warren said that women in about half of American jobs can be fired just for asking whether their pay is unequal to their male coworkers.
The Schedules That Work Act, Warren said, is about the “basic fairness” of workers being able to plan for a second job, child care, or schooling. It would require employers to give workers their schedules two weeks in advance, compensate them for showing up for work only to be sent home, and not retaliate against workers for requesting more flexible or predictable schedules.
All three bills have been blocked by Republicans, which Warren openly acknowledged.
“I know that change is not easy. We might not pass these bills right away,” she said. “But don’t kid yourself about the importance of these bills, and the assurance that we’re eventually going to get them through.”
The Schedules That Work Act in particular would help Fatmata Jabbie, a Walmart worker and refugee from Saudi Arabia whose story was read at the hearing.
“Although I am not full-time yet, I am virtually on call seven days a week to pick up extra hours,” she said in her written statement. Her reward for that trouble is usually only 30 to 36 hours of work and $150 to $200 in take-home pay.
“I am a mom with two beautiful children, so I am not the only one who relies on that salary to survive,” Jabbie said.
OUR Walmart is pushing for bigger reforms than the three bills Warren promoted though. Members of the group are calling for their aggressively non-unionized employer to pay a minimum living wage of $15 an hour, provide stable, full-time schedules, and stop retaliating against workers who speak out against the company’s practices.
Duvant, for instance, already makes the $10.10 per hour that the federal minimum wage bill would guarantee—but that doesn’t do her much good, she said, when Walmart will only schedule her for 16 hours of work per week.
And Evelin Cruz, who worked for Walmart for 11 years, said at the hearing that the company fired her a few weeks ago for her activism with OUR Walmart.
“We spoke out for change, and Walmart did what it does best, which is bully, retaliate, and fire me,” she said.
Cruz told RH Reality Check that even though she no longer works at Walmart and is looking for other work, she’ll keep up the fight with OUR Walmart.
“That’s what they count on, for people to be out of Walmart and no longer want to participate,” she said. “But this is an issue that is not only affecting people in Walmart. It’s a widespread problem of scheduling, lack of hours, and a minimum wage that you can’t survive on.”
Source
Fed’s Mester Calls Case for Gradual Rate Increases ‘Compelling’
Fed’s Mester Calls Case for Gradual Rate Increases ‘Compelling’
Federal Reserve Bank of Cleveland President Loretta Mester said there’s a “compelling” case for gradually raising...
Federal Reserve Bank of Cleveland President Loretta Mester said there’s a “compelling” case for gradually raising interest rates, with the U.S. economy approaching the central bank’s targets on employment and inflation.
“Policy has to be forward-looking,” Mester told reporters Thursday following a speech in Lexington, Kentucky. “If you have a forecast and inflation is moving up to your target and you’re at full employment, then it seems like a gradual increase from a very low interest rate is pretty compelling to me. Pre-emptiveness is important.”
She declined to say precisely when she believed rate increases would be necessary.
The policy-making Federal Open Market Committee will meet Sept. 20-21 to decide whether to lift the target range for its benchmark rate. Fed Chair Janet Yellen said last week the case for an increase had “strengthened in recent months.”
Investors see a roughly one-in-four probability that the Fed will act later this month, based on pricing in federal futures funds contracts.
Too Low for Too Long
Mester, who votes this year on the FOMC, said the Fed must take seriously the risk to financial stability caused by keeping rates low for too long, although she said she didn’t think the central bank was currently “behind the curve.” Nor did she see signs of financial instability already in the economy.
In her speech, Mester rejected the argument made to a number of Fed officials last week by a coalition of community activists that continued low interest rates are needed to extend the benefits of economic recovery to disadvantaged minorities.
“I do not believe that at this point in the business cycle, the current very low level of interest rates is an effective solution to these longer-run issues,” she said.
Eleven Fed governors and regional presidents, including Vice Chairman Stanley Fischer, met with organizers from the Center for Popular Democracy’s “Fed Up” campaign on the sidelines of the annual policy retreat in Jackson Hole, Wyoming, hosted by the Kansas City Fed.
The U.S. central bank has kept rates on hold through five meetings this year following a rate hike in December that was the first in nearly a decade.
By Christopher Condon
Source
Seattle passes scaled-back tax on Amazon, big companies
Seattle passes scaled-back tax on Amazon, big companies
On Monday, about 40 elected officials from across the United States, some representing local governments in the running...
On Monday, about 40 elected officials from across the United States, some representing local governments in the running to host Amazon’s second headquarters, published an open letter to Seattle in support of the head tax and expressing concern that Amazon opposed the measure. “By threatening Seattle over this tax, Amazon is sending a message to all of our cities: we play by our own rules,” the officials wrote.
Read the full article here.
13 Retailers Questioned By N.Y. Attorney General About Worker Scheduling
LA Times - April 13, 2015, by Samantha Masunaga - he scheduling practices of 13 retailers, including Gap Inc., Target...
LA Times - April 13, 2015, by Samantha Masunaga - he scheduling practices of 13 retailers, including Gap Inc., Target Corp. and Abercrombie & Fitch Co., are being scrutinized by New York Atty. Gen. Eric T. Schneiderman.
In a letter sent to the retailers, the attorney general's office said it had received reports that a growing number of employers, particularly in the retail industry, were requiring hourly employees to work on-call shifts. The office said it had “reason to believe” the 13 retailers might be using this kind of scheduling.
A New York state law requires that employees who are asked to come into work must be paid for at least four hours atminimum wage or the number of hours in the regularly scheduled shift, whichever is less, even if the employee is sent home.
California has a similar law that says employees must be paid for half of their usual time — two to four hours — if they are required to come in to work but are not needed or work less than their normal schedule.
The letter was also sent to J. Crew Group Inc.; L Brands, which owns Victoria's Secret and Bath and Body Works; Burlington Stores Inc.; TJX Cos.; Urban Outfitters Inc.; Sears Holdings Corp.; Williams-Sonoma Inc.; Crocs Inc.; Ann Inc., which owns Ann Taylor; and J.C. Penney Co.
The letters ask the retailers for more information about how they schedule employees for work, including whether they use on-call shifts and computerized scheduling programs.
Rachel Deutsch, an attorney at the Center for Popular Democracy, a New York worker advocacy group, said on-call scheduling can make it difficult for workers to arrange child care or pick up a second job.
“These are folks that want to work,” she said. “They’re ready and willing to work, and some weeks they might get no pay at all even though they set aside 100% of their time to work.”
Danielle Lang, a Skadden fellow at Bet Tzedek Legal Services in Los Angeles, said the attorney general’s action could have repercussions in other states.
“The New York attorney general is a powerful force,” she said. “It’s certainly an issue that’s facing so many of our low-wage workers in California, and anything that puts a highlight on this practice and really pressures employers to think about these practices is a good thing.”
Sears, Target and Ann Inc. said in separate statements that they do not have on-call shifts for their workers. J.C. Penney said it has a policy against on-call scheduling.
TJX spokeswoman Doreen Thompson said in a statement that company management teams “work to develop schedules that serve the needs of both our associates and our company.”
Gap said in a statement that the company has been working on a project with the Center for WorkLife Law at UC Hastings College of the Law to examine workplace scheduling and productivity and will see the first set of data results in the fall.
“Gap Inc. is committed to establishing sustainable scheduling practices that will improve stability for our employees, while helping toeffectively manage our business,” spokeswoman Laura Wilkinson said.
The remaining companies did not respond immediately to requests for comment.
Source
The Fed’s Main Job Is Jobs, And A Coalition Plans To Keep It On Task
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve...
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve Friday when the Labor Department releases its August unemployment statistics. But where will the Fed’s eyes be focused? A group of activists are planning the next steps of their effort to keep the Fed focused on the continuing unemployment crisis, and keep the Fed from taking actions that will make things worse for millions still seeking work.
“We’ve got a lot of work ahead of us,” said Shawn Sebastian of the Center for Popular Democracy, who was part of a group of activists and unemployed people who confronted members of the Fed at last month’s economic summit in Jackson Hole, Wyo. That includes following up on a promise by Fed chair Janet Yellen to meet with the group in Washington and pressing a more detailed plan for how the Fed should proceed to help the Main Street economy grow.
“We are going to be looking at the full range of policy options,” Sebastian said.
The “inflation hawks” were poised to seize the narrative when the members of the Fed attended the Jackson Hole summit. These Fed members, egged on by conservative academics and policymakers, want the Fed to put the brakes on economic growth and turn its attention to fighting inflation, even though there are no signs that inflation is an imminent threat. On the contrary, wages as a percentage of economic output are at their lowest level since the late 1940s (while corporate profits as a share of the economy are at record highs), one sign that there are far more people looking for work than there are jobs for them.
What the hawks did not count on was the Center for Popular Democracy’s ragtag group of 10 unemployed people and activist supporters. They trekked to Jackson Hole to confront Fed members with their stories of struggling to find decent jobs, along with a demand that the Fed not abandon its unfinished role in rebuilding the middle-class economy, in the form of a letter endorsed by more than 70 organizations. Their biggest success, Sebastian said, was a two-hour meeting with Kansas City Federal Reserve Bank President Esther George, who just before Jackson Hole said in an interview with CNBC that it was time for the Fed to begin thinking about raising interest rates “when you see the economy getting as close as we are to full employment.”
But Sebastian and his group told George that the economy was nowhere near full employment and that the analysis of the inflation hawks was “lacking in relevance, substance and rigor.” One member of the group told of how she went from being an MBA who had risen to a management job over 15 years to being laid off and unable to find work for months, finally settling for a job that paid half as much as the job she lost.
It’s not clear what substantive effect hearing these stories had on George and other inflation hawks on the Fed, Sebastian said. “But I do hope we contributed to her thinking and we also started an engagement” with the Fed, he said. Fed members now know that when they discuss economic policy, “you can’t make decisions without public scrutiny anymore, because we’re paying attention now.”
One of the ideas that the group will refine and attempt to build consensus around would have the Fed invest directly in infrastructure bonds and similar government instruments, in much the same way that it purchased billions in bonds to prop up the financial sector in the years following the 2008 financial crash. The bond-purchasing program, known as quantitative easing, helped boost Wall Street share prices, according to most experts, but had no direct effect on job-creation or on bringing the economic recovery to communities around the country hardest hit by the crash – as the nation has now vividly seen in Ferguson, Mo.
Having the Fed directly buy bonds that would enable federal, state or local governments to fund transportation projects, school construction or other public facilities would put the Fed’s power to work in ways that directly creates jobs in the short run and assets that enhance the nation’s competitiveness and well-being in the long run.
The Fed could also better use its regulatory authority to prod the banks to pour into the economy the close to $2 trillion that is now sitting in its vaults. That hoarded cash could be put to work creating jobs and lifting the wages of working-class people.
Whatever policies take shape during the next phase of the Center for Popular Democracy’s campaign to keep the Fed focused on full employment, Sebastian says that the opening round has been a success in sending the message that “we’re not in an inflation crisis … we are in an unemployment crisis. You can’t ignore an ongoing crisis for the sake of a ghost of inflation that may or may not appear.”
1 month ago
1 month ago