The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a...
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a politician has for creating jobs and boosting wages, it must contend with the Federal Reserve’s ability to unilaterally counteract it. If the Fed decides higher wages risk inflation, they can raise interest rates and deliberately strangle economic growth, reversing the wage effect. Why come up with ways to grow the economy, then, if the Fed will react by intentionally slowing it?
The reason the Fed operates as a wet blanket on the economy has to do with who really controls the institution. If the desires of bankers and the rich outweigh the desires of laborers, then their fear of inflation (which cuts into their profits) will always take precedence over full employment. Former Fed Chair Ben Bernanke unwittingly gave a perfect example of that yesterday. Talking about how the Fed could institute “helicopter drops” of money to supplement federal spending and jump-start the economy, he stated from the outset, “no responsible government would ever literally drop money from the sky.” Who sets the boundaries of what’s “responsible” matters a great deal here.
To make the central bank work in the public interest rather than the interests of a select few, you must reform the very structure of the Federal Reserve. That’s the purpose of a new proposal from Andrew Levin, an economics professor at Dartmouth College and former advisor to Fed Chairs Ben Bernanke and Janet Yellen. In conjunction with the activist group Fed Up, which advocates for pro-worker policies at the Fed, Levin has devised a framework to make the central bank a fully public institution, with all the transparency and accountability demanded of other government entities.
It’s such an important idea that Warren Gunnels, policy director for Bernie Sanders’ presidential campaign, talked it up yesterday on a conference call with Levin. While stopping short of endorsing taking the Fed public, Gunnels did say, “Senator Sanders believes we need to made the Fed a more democratic institution, responsive to the concerns of all Americans, not a few billionaires on Wall Street.”
Right now, the Fed is a quasi-public, quasi-private hybrid, taking advantage of that status to maintain high levels of secrecy. Members of the Federal Reserve Board of Governors are nominated by the President and confirmed by the Senate, like other federal agencies. But the twelve regional Federal Reserve banks are legally owned by commercial banks in each of those regions. Banks like JPMorgan Chase and Wells Fargo hold stock in these regional banks, which happen to be one of their primary regulators.
This was how central banks worldwide operated at the time of the Fed’s founding, but that has changed. “Every other central bank around the world is fully public,” Professor Levin said, citing the Bank of Canada’s shift in the 1930s and the Bank of England in the 1940s.
Not only does having private banks own a chunk of the Fed raise questions about regulatory supervision, it implicitly privileges banker concerns over the public at large. This is particularly important because the Fed has failed as an institution consistently over the past decade.
First it failed to identify an $8 trillion housing bubble, along with increases in leverage and derivatives exposure that magnified the housing collapse into a larger crisis. Then, it failed to deploy all its policy tools and allowed a slow recovery to take hold that left millions of workers behind, as growth never caught up to its expectations. British economist Simon Wren-Lewis believes the third big mistake is happening now, through premature interest rate hikes to return to “normal” operations. “Central banks are wasting a huge amount of potential resources” by tightening too quickly, Wren-Lewis says. For everyday Americans, that translates into millions more people out of work than necessary.
So Levin’s plan would cash out the banks’ stock, and begin to remove their influence over the Fed. The board of directors of the regional Fed banks, which currently includes commercial bank executives, would be chosen through a representative process with mandates for diversity (no African-American has ever served as a regional Fed president) and a variety of viewpoints. Nobody affiliated with a financial institution overseen by the Fed could serve on any regional board.
These newly elected boards of directors would choose the regional presidents, which have a say on monetary policy decisions. That selection process would include public hearings and feedback. Under the current system, Fed presidents are re-elected through a pro forma process, with no opportunity for public engagement. Four of the 12 regional presidents were formerly executives at Goldman Sachs, and it’s hard to call that a coincidence.
In addition to breaking the conflict of interest inherent in current Fed governance, making the institution public would subject it to disclosure requirements, Freedom of Information Act requests, and external reviews that all other public agencies must submit to. Levin’s proposal calls for an annual Government Accountability Office review of Fed policies and procedures, and would allow the Fed’s inspector general new authority to investigate the regional banks.
The Levin proposal too often makes concessions to preserving central bank “independence,” like preserving the regional structure and giving Fed officials nonrenewable seven-year terms, which seems a little arbitrary. This impulse also led Democrats to reject Sen. Rand Paul’s legislation to audit the Fed earlier this year. The rhetoric of Federal Reserve “independence” conceals an institutional capture that allows it to ignore workers’ needs in favor of the wealthy. And its persistent failures and banker influence weaken the case for that independence.
Nevertheless, the heart of the proposal is to return democracy to the Fed, so the institution will edge away from its commitment to capital over labor. “The fundamental piece is that the Fed must be a public institution,” said Ady Barkan of the Fed Up Coalition.
Liberals too often ignore the Fed and the role it plays in the economy, but that’s starting to change. An obscure piece of the Federal Reserve Act statute identified by then-House staffer Matt Stoller led to a remarkable cut of billions of dollars in subsidies to big banks last year, under a Republican-majority Congress. Now the Fed Up coalition is not only rolling out this reform plan, but pushing the presidential candidates to answer whether the Fed should deliberately slow down the economy, make sure their institution looks like the general public, and reduce the power of private banks on its operations. (Bernie Sanders laid out his views on Fed reform in the New York Times last December, some of which intersect with the Fed Up proposal. Warren Gunnels, Sanders’ Policy Director, would only say that the Fed Up plan “deserves serious consideration.”)
A public, inclusive debate over Fed transparency and accountability is critical, given the importance of this institution to the economy. “These reforms would put the Fed on a path to serving the public for the next 100 years,” said Professor Levin. And that has to mean all the public, through democratic principles, not just the executives at our biggest banks.
By David Dayen
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Lael Brainard, a Fed governor in the political glare
Lael Brainard, a Fed governor in the political glare
In the middle of meetings of the world’s central banking elite in Wyoming’s Jackson Lake Lodge in August 2015, Lael...
In the middle of meetings of the world’s central banking elite in Wyoming’s Jackson Lake Lodge in August 2015, Lael Brainard sat down with activists who were denouncing calls for tighter monetary policy amid America’s sluggish wage growth.
As the Federal Reserve Board member listened intently over the course of about an hour, protesters from New York ranging from fast-food employees to a worker on film sets talked about the difficulties of making ends meet on rock-bottom wages in a high-cost metropolis, recalls Shawn Sebastian, field director of the Fed Up coalition that arranged the meeting.
Ms Brainard’s decision to drop by carried a message. A fairly new member of the Board of Governors who had said relatively little about monetary policy, Ms Brainard was about to set out her stall as a vocal advocate of low interest rates at the Fed — based in part on the absence of wage growth.
Her steadfast calls for continued economic stimulus have burnished her credentials among pro-worker groups including Fed Up, which met a broader range of Fed officials at this year’s Jackson Hole gathering. They come amid speculation that she could be in line for a cabinet role if the Democrats hold the White House in November.
“When it comes to monetary policy, Lael Brainard is one of the strongest and loudest voices advocating for policies that working families across the US need,” says Mr Sebastian.
In Washington, Ms Brainard is being spoken of as one of the candidates for Treasury secretary in a Hillary Clinton administration — a move that would make her the first woman to head the department. At the same time she has become the target of Republican attacks because of her public support for the Clinton campaign and fury within the party over easy-money policies.
Early this year Ms Brainard donated $2,700 to the Clinton campaign, a decision described by former officials as a blunder for a sitting Fed governor during an election year — even if it is permissible under Fed rules. It increased the Fed’s political vulnerability at a time when it is a prime target for vituperative assaults on its independence by Donald Trump, the Republican presidential candidate.
The donation was the subject of sharp exchanges in Congress last month as Fed chair Janet Yellen was forced to reject claims by Republican representative Scott Garrett that the central bank is excessively cosy with the Democrats.
There are people who blather on and she is not one of them
Jared Bernstein, a former economic adviser to Joe Biden
Ted Truman, a former Fed official who is a non-resident senior fellow at the Peterson Institute for International Economics, says Ms Brainard’s donation was a personal mistake that “didn’t help the Fed at all”. He also argues that the issue pales in comparison with politically charged episodes in the past, such as the Nixon years when the Fed was leaned on heavily to keep rates low.
Ms Brainard’s forceful drive for easy monetary policy began two months after the 2015 Jackson Hole meetings, when she delivered a blunt speech that left some with the impression that she was at loggerheads with Ms Yellen. Ms Brainard warned against prematurely lifting rates amid slack in the labour market and subdued inflation — even as the chair was steering markets to expect a move by the end of the year.
Ms Brainard did not go on to formally dissent when Ms Yellen presided over a rate increase that December. Since then the two policymakers have appeared more closely aligned, with both recently arguing that the US recovery has further room to run before the central bank needs to increase rates again.
Ms Brainard has urged caution in part because of the risk that overseas shocks ricochet back to the US via highly integrated financial markets. This global focus builds on her work as the US’s top financial diplomat under former Treasury secretary Tim Geithner between 2010 and 2013, where in the gruelling post of undersecretary for international affairs she was a key US figure in discussions over the euro area debt crisis, as well as the broader global fallout from the financial crash.
Fed should not rush to raise rates, says Brainard
Already low expectations of a September increase fall further after policymaker’s cautious comments
One official who spoke with her regularly was George Papaconstantinou, Greece’s finance minister from 2009 to 2011. He recalls hearing from Ms Brainard two or three times a week during the febrile days of early 2010, as Europe dragged its feet over how to handle the Greek crisis and the US pushed for action. The calls were partly “therapy” for him and partly information-gathering by Ms Brainard so she had “a better sense of how close we were to the edge”. He says: “She clearly knew her stuff.”
Ms Brainard, who declined to comment for this article, developed her interest for global affairs in part on the back of her upbringing as a diplomat’s daughter, spending some of her childhood behind the iron curtain in Poland and East Germany. A former MIT economics professor, she has three children and is married to Kurt Campbell, a former top state department official.
A reserved individual, Ms Brainard left the Treasury with a mixed reputation among officials, some of whom found her unsupportive and distant. Others, including Jared Bernstein, a former economic adviser to vice-president Joe Biden, praise her straight-talking manner and clarity of thought. “There are people who blather on and she is not one of them,” he says.
When Washington observers size up potential Treasury secretaries, Ms Brainard’s name comes up alongside Gary Gensler, the former head of the Commodity Futures Trading Commission, and Sheryl Sandberg, chief operating officer of Facebook.
What gives Ms Brainard’s claim potency is not only her international and domestic economic experience, but also the helpful absence of a stint on Wall Street in her curriculum vitae. For many Democrats, her very public campaign for low rates has only strengthened her qualifications for the post.
By Lael Brainard
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COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S....
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid wages, interest, and civil penalties, K.S Contracting and Mr. Shah will be barred from working on New York City and State contracts for five years.
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015.
“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won’t back down in defending them,” New York City Comptroller Scott M. Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various City sidewalks in Queens.
The Comptroller’s Office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and City agency data to uncover a kickback scheme that preyed on immigrant workers.
After a four-day administrative trial in May 2016, the Comptroller found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. Those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. K.S. Contracting, however, falsely reported to City agencies that all employees on the jobsite who received checks were paid the prevailing wage.
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.
The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.
When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.
Since taking office in 2014, Comptroller Scott M. Stringer’s Bureau of Labor Law has assessed over $20 million and barred 40 contractors from state and City contracts due to prevailing wage violations, both record amounts. The assessed violation number includes underpayment of wages and benefits with interest payable to workers, and civil penalties payable to the City treasury.
“We applaud the Comptroller for standing up for the rights of immigrant workers and debarring bad actors like K.S. Contracting – a company identified by the Center for Popular Democracy as one of the worst violators of wage theft laws in New York. The Comptroller’s aggressive enforcement of prevailing wage law is a perfect example of what is needed to effectively combat wage theft throughout the city and state,” said Kate Hamaji, Center for Popular Democracy.
“We commend Comptroller Stringer for defending the rights of immigrant workers and ensure that they receive the wages and benefits that they deserve,” said Steven Choi, executive director of the New York Immigration Coalition. “In a time when immigrant communities are worried for their future in this country, it is essential that we have strong city advocates who will ensure that their rights are protected.”
“At a time when exploitative employers are feeling increasingly emboldened by Trump’s hateful rhetoric, it is imperative that our City’s leaders are taking a strong stance in defense of immigrant workers. Wage theft is a persistent and pervasive problem in New York, with employers like Paresh Shah cheating their immigrant workers out of millions of dollars in lawful wages and benefits each year. We commend the Comptroller for fighting to recuperate wages for the workers at KS Contracting and for showing employers like Paresh Shah that their behavior will not be tolerated by the City of New York,” said Deborah Axt, Executive Director, Make the Road New York.
“I want to thank New York City Comptroller Scott Stringer for taking the lead in fighting wage theft. Unfortunately wage theft is a crime that is running rampart throughout the construction industry. Hard working men and women, who expect nothing more than a fair day’s pay for a fair’s day’s work are constantly seeing their hard earned wages stolen by dishonest, criminal employers. By debarring KS Contracting for five years, Comptroller Stringer and his office have sent a message loud and clear – stealing workers’ wages will not be tolerated in New York.” said Robert Bonanza, Business Manager, Mason Tenders District Council of Greater New York, LiUNA!.
“I would like to thank Comptroller Stringer and his team in the Bureau of Labor Law for bringing justice to the workers at K.S. Contracting. Unfortunately the Comptroller’s task is made more difficult by the fact that many City agencies do not put top priority on monitoring projects for labor violations. Too many employers in New York City exploit minority and immigrant workers. And it’s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported. This undercuts labor standards for all workers, and safe, educated workers are our City’s most valuable resource. We need more responsible and proactive leaders like Comptroller Stringer to protect that resource,” said Lowell Barton, Vice President/Organizing Director, Laborers Local 1010, LiUNA!.
“In a city where diversity is our greatest strength, we will not let anyone target our immigrant workers for abuse. Undermining labor standards for immigrants it’s an attack on all workers. I commend Comptroller Stringer for standing up for immigrant workers and against wage theft at a time when our immigrant communities are under attack,” said Renata Pumarol, Communications Director, New York Communities for Change.
“We at the Alliance of South Asian American Labor (ASAAL) are extremely conscious of the rights of every human being who lives in this great nation no matter what their immigration status. Many hard working individuals are taken advantage of by unscrupulous employers. We greatly applaud Comptroller Scott Stringer’s aggressive approach to combat wage theft violations and in this way protect the rights of all workers. I applaud his historic record of debarring 40 contractors since taking office and assessing over $20 million in prevailing wage violations, including today’s order against K.S. Contracting,” said Maf Misbah Uddin, ASAAL National President.
By TIP NEWS
Source
Thanks to York School Board for Rejecting Charter Takeover
York Daily Record - November 4, 2014, by Rev. Aaron Willford, Sandra Thompson and Clovis Gallon - Over the past few...
York Daily Record - November 4, 2014, by Rev. Aaron Willford, Sandra Thompson and Clovis Gallon - Over the past few months, something remarkable happened in York. Parents, teachers, students, neighbors and faith leaders united to send a clear message that the education of York's children is more important than the profit margin of an out-of-state charter operator.
On behalf of that community, we would like to thank the York City School Board for standing up for our students, making sure their education comes first, and rejecting a charter takeover of our schools.
When the school board met on Oct. 15, Chief Recovery Officer David Meckley pressured board members to vote on an incomplete, poorly researched charter plan that was rolled out less than a week before. With so little time to review the plan and so many unanswered questions about it, the community urged the board to cast a no vote.
Rejecting the charter plan was not an easy decision for the school board, but it was the right decision — and we applaud their courage. If the plan had been enacted, money that should support students in the classroom would have flowed to a for-profit management company instead. City school children would have been treated like guinea pigs in a radical experiment, and their parents would have lost any say in how their neighborhood schools are run.
Perhaps the school board was looking into a crystal ball when it cast that vote. Just a week later, a federal judge appointed a receiver for Mosaica Education Inc., one of the two charter companies initially in the running to take over York city's schools. The heavily indebted Mosaica was sued by its primary lender in September after defaulting on its debt.
AdvertisementImagine where York's students would be if a charter operator took over their schools and, right out of the gate, found itself under enormous financial pressure for "a series of bad business decisions," as lender Tatonka Capital Corp. claims in its lawsuit against Mosaica.
The case against Mosaica followed a string of troubling studies questioning charter school oversight and accountability in Pennsylvania. A spring report from Auditor General Eugene DePasquale found that a lack of state oversight of charters was creating problems — with some observers comparing the current charter environment to the "wild, wild west."
A blistering report from the Center for Popular Democracy this fall revealed more than $30 million in proven or alleged fraud, waste, or abuse in Pennsylvania's charter school system over the past 17 years.
Giving Meckley a blank check on charterization in York would have been a big mistake.
Fortunately, the school board recognized how fraught with risk this plan was and chose to maintain local control of all the city's schools.
Now, it is critical for the school board to work in partnership with York's educators to improve the city's schools and give every child a shot at success.
Educators and administrators are already implementing a road map to fiscal recovery that will strengthen educational programs. We are glad that the school board is giving this "internal option," as it is known, an opportunity to work before taking any action that will negatively impact our schools, our students, or our community.
York city schools, like many other districts across the commonwealth, face a funding crisis created by deep cuts in state funding for public schools. All Pennsylvania school children deserve better from Harrisburg. It is high time our elected leaders reverse those cuts and put our schools back on track.
Until that happens, York's children should not be treated any differently than other Pennsylvania students. They shouldn't be guinea pigs in a charter experiment. And they shouldn't be deprived of the opportunity to attend their neighborhood schools.
Our school board agrees, and now it is up to all of us to take responsibility for the future of our city's public schools and the students who learn there.
We have no doubt that the York community is strongly committed to making our schools the best they can be. Working together, we can achieve truly remarkable things.
Rev. Aaron Willford is a member of York Concerned Clergy. Sandra Thompson is president of the York NAACP. Clovis Gallon is a teacher and York Education Association member.
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Mysterious "Computer Glitch" Conveniently Cancels Hotel Rooms For Fed Protesters At Jackson Hole Event
Mysterious "Computer Glitch" Conveniently Cancels Hotel Rooms For Fed Protesters At Jackson Hole Event
Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole,...
Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole, Wyoming to protest Federal Reserve hike rates amidst the unequal “economic recovery.” The Jackson Hole event is invite only, closed to the public and costs $1,000 per person to attend.
It appears that this year, Janet Yellen and company went out of their way to ensure there would be no such protests diverting the attention of the nation's most esteemed economists.
According to a formal complaint filed by Ady Barkan, the Campaign Director for the Fed Up Campaign, to the DOJ and the Department of the Interior, “In early May, members of our coalition made three separate reservations for a total of 13 rooms at the Lodge for the nights of August 24, 25, and 26. We paid for the rooms. We requested and paid for rollaway beds that would allow us to sleep three guests to a room, for a total of 39 guest accommodations.
On July 26, my colleague Ruben Lucio received a phone call and then a follow-up email from Zachary Meyers, the Director of Hotel Operations at the Company, informing us that the Company would not honor our paid-for reservations and we could no longer stay at the Lodge. Meyers informed Lucio of a “reservations system glitch that caused the overbooking of Jackson Lake Lodge affecting your reservations” and explained that “the system issue caused us to take reservations for rooms that we don’t actually have inventory to honor. I’m very sorry for the unfortunate mishap with our systems at GTLC that led to this regrettable situation.”
The complaint also states that of the 18 rooms that were affected by the supposed “glitch,” all 13 rooms that were allocated to the Fed Up Coalition were coincidentally all cancelled. Of course, the hotel denied any knowledge that these rooms were protesting the oligarchs at the Fed.
“There is no legitimate explanation for the Company’s decision. As Klein explained to me, the Company books out its conference and sleeping rooms on a first-come first-serve basis. However, faced with an alleged computer glitch that affected only the three nights we were present, the Company decided to honor reservations made after ours and cancel our reservations. Our reservations constituted only 3 percent of the rooms at Jackson Lake Lodge (13 out of 385), yet the Company decided that our group would bear 72 percent of the total burden for its mistake (13 rooms out of 18 overbooked reservations). This is egregious disparate treatment.
In addition, Klein’s stated rationale for selecting our 13 rooms for cancellation is an explicit and intentional targeting of our First Amendment right to assemble on government property: he selected us precisely because we are a group of multiple guests. Because we were arriving in groups of 5, 5, and 3 rooms, we would not be allowed at the Lodge. (Yet Klein notably did not remove rooms from the reservation block belonging to the Kansas City Federal Reserve, even though its block was far larger than ours and would have been even “easier” to cancel.)”
According to the Intercept, the Fed Up coalition is still planning to attend the conference. “They still expect 120 members, their largest contingent ever, to attend the proceedings, but they will have to stay in alternative accommodations that are a 20- to 30-minute drive away, separate from symposium guests and the press.”
We are sure that the Fed, already criticized for its lack of diversity, had no say in this mysteriously convenient “glitch.”
By Tyler Durden
Source
Spa mayor seeks to ban gun, ammo sales at City Center
Spa mayor seeks to ban gun, ammo sales at City Center
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday...
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday in a welcoming speech to Local Progress New York.
Read the full article here.
How Hurricane Maria Could Change Puerto Rico’s Political Future
How Hurricane Maria Could Change Puerto Rico’s Political Future
In the windowless backroom kitchen of the Loisaida community and arts center in Lower Manhattan, Aris Mejías cradles a...
In the windowless backroom kitchen of the Loisaida community and arts center in Lower Manhattan, Aris Mejías cradles a plastic ziplock with the last of the dark-roast coffee she brought back from her native Puerto Rico. “It’s probably extinct,” she says. “Ay Díos, I think I’m gonna cry.” Mejías’s eyes are red and sunken. Neither she nor Isabel Gandía has slept much since Hurricane Maria tore through the southeast Caribbean in late September. They’ve been too busy coordinating a donation drive to bring emergency aid to Puerto Rico. At 3:30 in the afternoon, Gandía is only just getting around to breakfast.
Read the full article here.
Dumpster Tapes showcases local Latinx talent at the second annual Demolición
Dumpster Tapes showcases local Latinx talent at the second annual Demolición
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have...
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have detained an average of 26,240 people per day through July 2017, according to a new report by the Center for Popular Democracy and Make the Road New York. Through over $100 million loans, lines of credit and bonds, Wall Street has been financially propping up CoreCivic and GeoCorp, America's two largest private immigration detention centers.
Read the full article here.
Can We Head Off a Long Hot Summer of Riots and Rebellion?
Huffington Post - 05.27.2015 - The nation's attention has been focused on the recent riots in Baltimore, but the harsh...
Huffington Post - 05.27.2015 - The nation's attention has been focused on the recent riots in Baltimore, but the harsh truth is that they could have happened in any major city. Indeed, we could see a long hot summer of urban (and, as in places like Ferguson, suburban) riots that would make the two-day disturbances in Baltimore seem trivial in comparison.
We can surely expect more turmoil next year, too, if social and economic conditions continue to deteriorate, and if candidates for president and Congress fail to make specific suggestions for addressing the suffering and hardship facing the nation.
But promises can only quell riots for so long. Hope soon turns to frustration, and then anger, unless there's real action to change conditions.
The turmoil in Baltimore followed the trajectory of the urban riots of the 1960s (in Detroit, Newark, Los Angeles, and 161 other cities) and subsequent civil disorders in Miami (1980), Los Angeles (1992) and elsewhere. It typically begins with an incident of police abuse against an African-American resident. Outraged members of the black community organize nonviolent protests, the police over-react and the protests become violent and threatening.
In Baltimore, the death of Freddie Gray, a 25-year-old unarmed black man, at the hands of the police, triggered the demonstrations, but the city was already a powder keg of economic and racial grievances. The same is true in cities across America.
Fixing racist police practices and bias in our criminal justice system is important. But the underlying cause of riots is the hopelessness that comes with persistent poverty, unemployment, slum housing, widespread sickness, underfunded schools and lack of opportunity to escape such intolerable conditions.
Since Baltimore exploded, many pundits have taken to quoting Martin Luther King, who once said that "a riot is the language of the unheard." But few pundits have discovered another one of King's profound insights: "There is no noise as powerful as the sound of the marching feet of a determined people."
Riots are not truly political protests. They are expressions of hot anger -- outrage about social conditions. They do not have a clear objective, a policy agenda or a strategy for bringing about change. They are a wake-up call to those in power.
In contrast, social movements reflect cold anger. They are intentional and strategic. They take place when people are hopeful -- when people believe not only that things should be different, but also that they can be different.
Riots tell us what desperate people are against. Social movements tell us what hopeful people are for.
To avoid a long hot summer this year and in the future, but also to address the underlying causes and tensions in our communities, we need to do two things. First, strengthen and invest in the social movements -- grassroots organizing and coalition building -- that have emerged in cities across the country. Second, engage the country in a policy conversation about full employment, and then take action to guarantee every American a good job.
Invest in Grassroots Organizing and Coalition Building
Visiting the U.S. in the 1830s, Frenchman Alexis de Tocqueville, author of Democracy in America, was impressed by the outpouring of local voluntary organizations that brought Americans together to solve problems, provide a sense of community and public purpose, and tame the hyper-individualism that he considered a threat to democracy.
Every fight for social reform since then -- from the abolition movement to the labor movement's fight against sweatshops in the early 1900s, to the civil rights movement of the 1960s, to the environmental and women's movements of the past half century -- has reflected elements of the self-help spirit that Tocqueville observed.
America's struggling families -- including the residents of poor communities, like inner city Baltimore -- need stronger vehicles to gain a voice in their cities and the larger society. This is the most effective alternative to riots.
Studies show that voluntary associations and interest groups today are titled toward affluent Americans. As political scientist Martin Gilens demonstrates in Affluence and Influence, America's policymakers respond almost exclusively to the policy preferences of the economically advantaged. But under specific circumstances -- especially during impending elections, and when ordinary Americans are well-organized -- the preferences of the middle class and the poor do matter.
Around the country, there are thousands of local nonprofit community groups that organize and mobilize people around their everyday concerns -- from the lack of stop signs at dangerous intersections, to police misconduct and racial profiling, to the proliferation of killings by people with assault weapons, to environmental and health hazards in poor communities, to predatory bank lending and the epidemic of foreclosures, to the repression of basic voting rights, to inadequate funding for public schools, to the shortage of decent affordable housing, to the lack of jobs and decent pay.
Groups such as the Moral Monday movement in North Carolina, the Alliance of Californians for Community Empowerment and the fledgling Black Lives Matter movement (created in 2012 after Trayvon Martin's murder in Florida) channel people's anger into constructive action around specific policy demands. Some of these groups are part of regional and national advocacy networks, such as the Center for Community Change, National People's Action, the Partnership for Working Families, US Action, PICO, the Industrial Areas Foundation and the Center for Popular Democracy.
Most of these organizations, however, operate on shoe-string budgets. In addition to dues and bake sales, they rely on private foundations to help them hire staff, maintain an office, conduct research and, occasionally, engage a lawyer. Their funding for organizing, research, publicity, policy advocacy and other tasks is minuscule when compared with big corporations that have armies of high-paid lobbyists, donate billions in campaign contributions and have huge war chests devoted to public relations and propaganda.
Despite a playing field that is tilted heavily in favor of big business and wealthy people, grassroots organizing groups and advocacy networks have won some significant victories at the local, state and federal levels.
A growing number of cities, including Seattle and Los Angeles, have adopted municipal wages that will reach $15 an hour within a few years. In response to pressure from community groups and its own employees, Walmart -- the nation's largest private employer with 1.3 million workers -- earlier this year, announced that it would boost pay for its lowest-level workers to at least $9 an hour starting this spring, and raise that to $10 next year. Walmart estimated that about 500,000 employees will receive a raise, totaling roughly $1 billion a year. In April, McDonald's announced its own wage increases -- also in response to protests by employees and community groups, as well as support from elected officials. The company said that, beginning July 1 of this year, starting wages at company-owned McDonald's would be one dollar over the locally mandated minimum wage. Last year, minimum wage increases passed by wide margins in five states, including decidedly red states like Arkansas, Alaska, South Dakota and Nebraska. Paid sick time passed by a wide margin in Massachusetts and in three cities. New York is moving rapidly toward high quality, free, full-day pre-kindergarten educational options for every family -- every child, rich, middle and poor. In California, there are significant efforts to curb carbon emissions and explicitly link those efforts to job creation and investment in low-income communities. The criminal justice reform movement has secured breakthroughs on "ban the box" that open up employment opportunities for the formerly incarcerated The immigrant rights movement has successfully pushed 20 states to authorize in-state college tuition for undocumented students The Black Lives Matter movement is connecting criminal justice and police reform to the "Fight for $15" among low-wage workers of color.These and other movements represent a powerful convergence of constituencies and social forces with the potential to reshape the national agenda. But to be effective, they need more resources to hire staff, reach more people in their communities and workplaces, and get their voices heard in the corridors of power.
America's foundations -- which are funded by wealthy people and corporations that get generous tax breaks for their philanthropic giving -- donate about $55 billion a year to a wide variety of causes. They devote less than to 10 percent of that amount to groups engaged in organizing and advocacy for social justice.
Perhaps not surprisingly, most foundations allocate the vast bulk of their donations to institutions (such as elite colleges and universities, hospitals, museums and others arts organizations) that primarily serve the affluent. It is time for these tax-exempt foundations to invest in organizations that promote grassroots organizing and help give working families and the poor a stronger voice in our democracy.
Inequality, Poverty, Joblessness and Economic Insecurity
Ironically, while most of the media were focusing on the Baltimore riots, it was John Angelos, the Baltimore Orioles's chief operating officer, who seized the opportunity to redirected attention to the root causes of the city's turmoil. He tweeted:
My greater source of personal concern, outrage and sympathy beyond this particular case is focused neither upon one night's property damage nor upon the acts, but is focused rather upon the past four-decade period during which an American political elite have shipped middle class and working class jobs away from Baltimore and cities and towns around the U.S. to third-world dictatorships like China and others, plunged tens of millions of good, hard-working Americans into economic devastation, and then followed that action around the nation by diminishing every American's civil rights protections in order to control an unfairly impoverished population living under an ever-declining standard of living and suffering at the butt end of an ever-more militarized and aggressive surveillance state.
The shape of the current crisis is by now very familiar. The harsh reality is that no other wealthy nation allows the level of sheer destitution and misery found in the United States, including poverty, hunger, slums, homelessness and ill-health.
About 50 million Americans live below the official poverty line. One-third of the country-- over 100 million people-- cannot make ends meet. They don't earn enough to sustain their families. One in three American households say they are living paycheck to paycheck, continuously on the brink of financial disaster. A staggering 36 percent say that they or someone else in their household had to reduce meals or cut back on food to save money during the past year.
Because incomes and wages have declined, a record number of Americans are in debt. They mortgage their future to pay for their homes, a college education, and, with credit cards, day-to-day expenses
Some $7 trillion of Americans' household wealth evaporated in the housing crash that began in 2007. The burden has fallen disproportionately on African American and Latino families, who saw more than half of their total wealth disappear as a result of Wall Street's risky and reckless practices.
The current official unemployment rate is 5.4 percent, but it varies considerably by race. It is 4.7 percent for whites compared with 6.9 percent for Hispanics, and 9.6 percent for African-Americans. But several years into the so-called "recovery," the real unemployment rate -- which also includes discouraged workers who've given up trying to find a job and those who are employed part time but not able to secure full-time work -- is double the official rate.
Almost one-third of America's jobless have been out of work for 27 weeks or more. Among those lucky enough to have jobs, women earn only 78 percent of what men make. African American women make 64 percent and Hispanic women 54 percent of men's earnings.
The United States is the most unequal of the world's wealthiest societies. The richest one percent of all Americans take home approximately 20 percent of the country's total income and owns 40 percent of the nation's wealth. Since 1979, wages for the richest one percent have increased by 138 percent; in contrast, wages for the bottom 90 percent have increased just 15 percent. In the last few years, as the country has struggled to recover from the greatest financial crisis since the Great Depression, this top tier has received nearly all of the added income generated from economic growth.
A recent report by the Institute for Policy Studies found that the $26.7 billion in bonuses handed to 165,200 executives by Wall Street banks in 2013 would be enough to more than double the pay for all 1,085,000 Americans who work full time at the current federal minimum wage of $7.25-per-hour.
The low wages paid by many employers cost taxpayers about $153 billion each year by forcing employees to rely on public assistance to afford food, healthcare and other basic necessities, according to a recent study conducted by the University of California's Berkeley Center for Labor Research and Education. This is more than the annual budgets of the U.S. Department of Education and Health and Human Services combined.
A Policy Agenda for Good Jobs and Shared Prosperity
Fortunately, this situation can be fixed. In previous periods of American history when we faced an economic and moral crisis -- the Gilded Age of the late 1800s, the Depression of the 1930s, and the explosive racial divide of the 1960s -- reform movements mobilized new constituencies to promote bold solutions that changed public opinion and pushed elected officials to adopt new policies. Ideas that were once considered radical -- the minimum wage, Social Security, women's suffrage, the Voting Rights Act, consumer and environment protection laws and many others -- became viewed as common sense.
In response to our current crisis, a new wave of advocacy groups and policy experts has emerged to put new ideas on the table.
With the support of local advocacy groups, a growing wave of progressive mayors and other local officials in Pittsburgh, San Francisco, Newark, Minneapolis, Seattle, Los Angeles and elsewhere have sought to address the widening economic divide and persistent poverty in order to build an economy that works for all families. The growing number of cities with municipal minimum wage laws is only one aspects of this crescendo of conscience in favor of shared prosperity.
Think tanks like the Center for American Progress, the Roosevelt Institute, the Center for Budget and Policy Priorities, the Center for Economic and Policy Research, and the Economic Policy Institute have released reports that provide bold prescriptions to the problems of inequality, poverty and joblessness.
A growing number of enlightened business leaders now recognize that we need policies that invest in good jobs, rather than our current short-term focus on enriching the already rich, especially those in the financial sector that caused the economic crash in the first place. Many now recognize that we cannot put most of our hopes simply in improving skills and education. Over the past generation, overall skills and educational levels have increased, but wages (even for those with college degrees) have stagnated.
Earlier this month, in the wake of the Baltimore uprising, and in anticipation of the next election cycle, Sen. Elizabeth Warren, New York Mayor Bill de Blasio and Nobel Prize winning economist Joseph Stiglitz released a 115-page report, Rewriting the Rules of the American Economy, that offered proposals to address income inequality and poverty. The "trickle-down" economics that has prevailed since 1980 has "decimated America's middle class," according to the report. "It's time to try something new," Stiglitz said, taking aim at excessive executive compensation, declining wages and labor standards, weak regulation of the financial industry and generous tax rates for the wealthy. They also called for universal pre-kindergarten, a federal paid family leave policy and a $15-an-hour federal minimum wage.
Also, last month, a coalition of advocacy groups -- including the Center for Community Change, Center for Popular Democracy, Jobs With Justice, Working Families Organization and the Leadership Conference on Civil and Human Rights -- launched a national campaign to advance the idea that every American should and can have access to a good job. Their plan, called Putting Families First: Good Jobs for All, is both audacious and simple: Everyone who wants a job should have assured access to a good job that provides dignity, a voice on the job, fair wages and good benefits.
A good job means one that pays enough to allow a family to buy or rent a decent home, put food on the table and clothes on their backs, afford health insurance and child care, send the kids to college, take a yearly vacation and retire with dignity. A good job means that parents don't have to juggle two or three jobs to stay afloat, and that they still have time to spend with their kids.
As a society, we have to make sure that people who work can support their families and assure that everyone can retire in dignity.
During this election cycle, and over the next few years, this coalition of conscience hopes to inject the goal of a good job for all into the political debate and the national conversation. It is proposing solutions commensurate with the scale of the challenge -- rather than tinkering at the margins. The Putting Families First agenda has five key elements:
Guaranteeing Good Wages and Benefits. Requiring every job in the United States to meet a minimum standard of quality -- in wages, benefits, and working conditions -- and offer unhindered access to collective representation and a real voice for workers. Unlocking Opportunity in the Poorest Communities. Investing resources on a large scale to restart the economy in places where racial bias and sustained disinvestment have produced communities of concentrated poverty. Taxing concentrated wealth. Funding new investments in job creation, care, and economic renewal by taxing those who benefit most from the current economic model - investors, financiers, wealth managers, and individuals in the highest income brackets. Building a Clean Energy Economy. Using the large-scale investments required for transition to a clean energy future to create millions of good jobs that are accessible to all Americans, especially those hardest hit by hard times -- workers of color, women, and economically distressed communities. Valuing Families. Ending the systematic devaluation of care work, which disproportionately keeps women in poverty, by making high quality child care available to all working parents, raising the quality of jobs in the early childhood education and care fields, transforming homecare and providing financial support to unpaid caregivers.These are not pie-in-the-sky ideas. Many of them have already been adopted in cities and states, such as municipal minimum wage laws, paid family leave policies, green jobs ordinances, and state laws to improve conditions for nannies, maids, and other domestic workers. In many other countries, including the social democracies of Europe, Australia and Canada, most of these ideas are taken for granted.
It may appear paradoxical to propose a bold agenda for change at a time when Congress is paralyzed and the immediate prospect of bold federal action appears dim. But the moment is ripe. America seems to be holding its breath, trying to decide what kind of country it wants to be. We seem to be at one of those crossroad moments when attitudes are rapidly shifting, and significant reform is possible.
Americans are upset with widening inequality, the political influence of big business and declining living standards. Public opinion is generally favorable toward greater government activism to address poverty, inequality and opportunity. A national survey by the Pew Research Center last year found that 60 percent of Americans -- including 75 percent of Democrats, 60 percent of independents, and even 42 percent of Republicans -- think that the economic system unfairly favors the wealthy. The poll discovered that 69 percent of Americans believe that the government should do "a lot" or "some" to reduce the gap between the rich and everyone else. Nearly all Democrats (93 percent) and large majorities of independents (83 percent) and Republicans (64 percent) said they favor government action to reduce poverty.
Over half (54 percent) of Americans support raising taxes on the wealthy and corporations in order to expand programs for the poor, compared with one third (35 percent) who believe that lowering taxes on the wealthy to encourage investment and economic growth would be the more effective approach. A new national poll found that 63 percent of Americans support raising the federal wage threshold to that level. These are clear signs of a tectonic shift in our national thinking. But public opinion, on its own, doesn't translate into public policy. It has to be mobilized. As Cong. Keith Ellison of Minnesota has said: "Being right is not enough! We've got to organize."
The coalition behind the Putting Families First: Good Jobs for All plan intends to engage millions of Americans in multiple layers of civic action -- organizing, demonstrating, voting and advocating for legislation. They also want to encourage opinion leaders -- faith leaders, enlightened businesspersons, academics and policy analysts, columnists and editorial writers, and others -- to participate in a broad and deep national conversation about shifting our country's priorities toward full employment, clean energy and the other components of their agenda.
No time is better to do this than during a national election season, when the country is focusing on what candidates for president and Congress have to say about America's problems and potential.
If the voices and concerns of ordinary Americans aren't at the center of this debate, we can expect the ticking time bomb of urban unrest to explode in more and more communities. Without major reforms, the recent upheavals in Ferguson and Baltimore may simply be a precursor to a wave of 21st century riots.
To avoid more turmoil in our streets, and to address the growing frustration of a large segment of our society, we must focus the nation's attention on bold policy prescriptions to address the roots causes of poverty, inequality, joblessness and economic insecurity.
This isn't just an insurance policy against future riots. It is also a blueprint for a more livable, prosperous, and healthier society.
Source: Huffington Post
New Toolkit Puts Municipal ID Within Reach of Legislators Across Country
New Toolkit Puts Municipal ID Within Reach of Legislators Across Country
Today, Center for Popular Democracy is releasing a new guide to setting up municipal...
Today, Center for Popular Democracy is releasing a new guide to setting up municipal ID Building Identity: A Toolkit for Designing and Implementing a Successful Municipal ID Program, to take the fight for immigrant dignity to cities across the country.
Municipal IDs allow all residents, regardless of immigration status, gender identity, or other characteristics, to open a bank account or cash a check, see a doctor at a hospital, register their child for school, apply for public benefits, file a complaint with the police department, borrow a book from a library, vote in an election, or even collect a package from the post office. Municipal ID removes all of these barriers with a single stroke.
To mark the release of the toolkit, immigrant New Yorkers who have benefited from the municipal ID program will gather on the front steps of City Hall, NYC, at 11am to call for other cities across the country to adopt similar programs.
In addition to New York City, grassroots organization have successfully passed municipal ID programs in major cities like Newark and Hartford, improving the lives of immigrant communities and underserved populations. Center for Popular Democracy’s new toolkit will help like-minded leaders in other parts of the country create similar programs.
Ana Maria Archila, co-executive director of Center for Popular Democracy, stated: “In each city we pass municipal ID, the immediate outpouring of immigrant families eager to cement their status as members of communities is heartening. Immigrants’ history and contributions make them central parts of our communities across the country. This toolkit symbolizes the effort, partnerships, and strong bonds that will take the fight for immigrant justice to the next level in cities across the country.”
Ruth Pacheco, Make the Road New York member and Queens resident, who has two school-age children, said: “My municipal ID has opened many important doors for me, whether at my children’s school, the bank, or the library. Before, when I had to meet with my children’s teachers, they wouldn’t let me in without ID. Now the IDNYC solves that problem. Before, to open a bank account or present myself at the bank, I had to bring my passport, which was risky. Now the IDNYC solves that problem.”
“The municipal identification program—now IDNYC—is a hallmark of our City and a testament to how robustly we want to engage with New Yorkers of all experiences. This program, as we anticipated, has been particularly helpful to those who have a historic disconnect with governments of all levels. For those people, this municipal identification ogram has changed the game. The level at which people are engaging with government, and with one another in their communities is something that should be modeled and I am heartened that now, with this announcement from the Center for Popular Democracy, other cities will be able to do just that,” said Council Member Carlos Menchaca.
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www.populardemocracy.org
The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
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