Who were the women who confronted Sen. Jeff Flake about Kavanaugh vote in an elevator?
Who were the women who confronted Sen. Jeff Flake about Kavanaugh vote in an elevator?
Two women who said they were survivors of sexual assault angrily confronted Republican Sen. Jeff Flake of Arizona in an...
Two women who said they were survivors of sexual assault angrily confronted Republican Sen. Jeff Flake of Arizona in an elevator Friday morning over his decision to vote yes on Brett Kavanaugh’s nomination to the U.S. Supreme Court.
Read the article and watch the video here.
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to...
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to President Donald Trump.
A newly launched website called BackersOfHate.org breaks down how nine major corporations are affiliated with the Trump administration and the ways they will gain from the Trump agenda. The website also outlines current company policies that already negatively impact people of color, immigrants, Indigenous communities, and low income populations — similar to critiques of the Trump agenda.
Read the full article here.
If Politicians Actually Want to Make Change, They Have to Think Like Organizers
If Politicians Actually Want to Make Change, They Have to Think Like Organizers
In 2011, after years of entrenched fighting between businesses and labor supporters, and months of negotiation in the...
In 2011, after years of entrenched fighting between businesses and labor supporters, and months of negotiation in the city council, Seattle’s paid sick-leave ordinance came down to a walk in the park. The bill’s sponsor, councilmember Nick Licata, invited his colleague Tim Burgess, the council’s stalwart fiscal conservative, for a stroll around Green Lake. At that point, few council members were willing to support the bill and Licata was nowhere close to the five-vote majority he needed.
“I figured, in some ways, the swing vote would be Burgess,” Licata explained. “Given his standing in the business community, if he supported it, then other council members would come out and support it. It would have a domino effect.”
Walking side-by-side around the park’s lakeside path, Licata learned that Burgess wanted only minor concessions. Licata brought those back to his coalition of sick-leave supporters, who agreed to most of them. The bill, which had been stuck for years in legislative limbo, began to move. Burgess voiced his support, other councilmembers followed, and Licata wrangled the votes necessary to pass one of the country’s first laws requiring all employers to provide paid sick time to workers.
Laws like this help make Seattle the progressive city it is. In the past five years alone, Seattle has become the first major city to enact a $15 minimum wage; banned the use of plastic bags; sanctioned homeless encampments on city property; helped lead the charge on statewide votes for legal marijuana and marriage equality, and more. To hear most residents tell it, this progressive streak is as inevitable as good coffee or the craggy face of Mount Ranier—the natural outcome of a city peopled by good liberals who want to do the right thing.
But, as the long fight to win paid sick leave suggests, Seattle’s progressive laws are anything but inevitable. The city’s businesses fight tooth and nail against every attempt to improve worker rights and pay, threatening an exodus to friendlier climates. And while Seattle residents say they want the city to be affordable and want to help the rapidly growing homeless population, they also show up in force to protest affordable-housing measures and proposals to open more temporary homeless encampments.
What has fueled Seattle’s progressive victories, then, isn’t some mystery potion or innate Northwestern goodness, but the same hard work that has forced progress in other cities: grassroots organizing, tenacity, and political allies like Nick Licata. For 18 years, Licata has been one of the most reliable forces inside City Hall pushing and prodding Seattle to be a more humane city.
Since his election in 1998, Licata has had his hands in every piece of progressive legislation to pass through City Hall. He fought years of serious opposition to pass the Rental Registration and Inspection Ordinance, championed paid sick leave and the $15 minimum wage, created Seattle’s first lobbyist-registration law, pushed for sanctioned homeless encampments, and much more. He also fought against public funding of sports stadiums, a bill to outlaw panhandling, and plenty of other attempts at city-sanctioned discrimination.
Throughout his time in office, Licata was doggedly consistent in both his political ideology and his commitment to progressive causes. Among his colleagues, he was often the one vote to the left of all others, but they respected his attention to detail and willingness to work with everyone. Licata’s consistency and legislative success helped him build a citywide progressive base that reelected him every time he ran. Occasionally, it even won him accolades outside his adopted city. The Nation named him Most Valuable Local Official in 2012.
Beyond advancing progressive policy, Licata’s time in office helped carve out a space for the current progressive bloc of councilmembers, including Kshama Sawant, Mike O’Brien, and Licata’s longtime legislative aide turned successor, Lisa Herbold. It is of course overly simplistic to draw a straight line from Licata to those that came after him, but his ability to stay true to his values while getting things done helped pull Seattle’s traditionally centrist electeds to the left and proved that voters support progressives.
“Nick, for so long, fostered and cultivated this progressive wing of Seattle,” said O’Brien. “One of the things I learned from Nick is you don’t need to shy away from progressive values. You can embrace them.”
Since his election in 1998, Nick Licata has had his hands in every piece of progressive legislation to pass through Seattle's City Hall.
Last December, Licata finished his final term as a city councilor—a move he was careful not to frame as retirement. He is not ending his political work, just changing the form it takes. Some of his time will be spent working with Local Progress, the nonprofit network of progressive local politicians he helped found in 2012. Some of it will be spent promoting his recently published book, Becoming A Citizen Activist, which is part memoir and part how-to guide for navigating local government. All of it is in service of Licata’s theory of the city as a tool for movement-based social and political change.
“With Congress deadlocked and state governments largely taken over by the right wing, large urban areas are the last bastions of progressive strength,” he explained. “But it’s hard to manifest that into political power. We need to start going where our strength is and building out from that.”
* * *
Licata’s attempt to seed state and national change by fomenting shifts at the local level is, in many respects, the logical conclusion of a career built on grassroots activism.
Licata was born in Cleveland in 1947, the son of traditional working-class Catholics who never graduated from high school. His turn towards progressive politics began during his college years at Bowling Green State University, where he helped found the school’s chapter of Students for Democratic Society, and solidified in 1970, when he was a graduate student at the University of Washington protesting the war.
After grad school, Licata moved into PRAG House, a commune that would serve as home base for 25 years of organizing and activism that eventually launched his political career. Like a true Renaissance lefty, he had hand in almost all the consequential battles of the age, as well as some of the less consequential ones. He published a directory of Seattle community groups and social services called the People’s Yellow Pages; helped form Coalition Against Redlining; launched an alternative weekly called the Seattle Sun; helped organize an annual 24-hour dance marathon called Give Peace A Dance to raise money for nuclear disarmament TV ads; and co-founded Citizens For More Important Things to fight public funding of new baseball and football stadiums in Seattle, among other things.
Much of Licata’s activist career was paid for by his work as an insurance broker, a kind of Wallace Stevens of the activist left. But after 15 years of this arrangement, Licata was unhappy and his bosses expected him to become a manager.
He left to run for city council.
* * *
In Licata’s first run at council, he was the underdog against Aaron Ostrom, a popular city staffer with establishment backing. Despite being outspent and running without major endorsements, Licata was able to organize his broad activist networks to show up at the polls and elect him.
“I was somewhat isolated [as a progressive]. I could tell my new colleagues thought I was going to be temporary. The first day in office I didn’t have a chair, though I think it was an oversight,” Licata said.
Nonetheless, Licata managed to prove his efficacy. Years of working in insurance gave him a keen eye for detail and in his first year in office, he found an extra $50,000 that had not been allocated in the budget.
Licata’s attempt to seed state and national change by fomenting shifts at the local level is the logical conclusion of a career built on grassroots activism.
“It’s a trite term, but I think I earned their respect,” said Licata. “Not that I was brilliant, but I dug into things more than usual.”
He also proved he knew how to work the system. Licata’s first major victory was killing Seattle’s bid to host the 2012 Olympics.
“It was almost like drowning the golden child. Even I was very supportive to start. Who doesn’t like the Olympics?”
But as he dug into the contract and read about other host cities, Licata realized Seattle would have to take on any financial liabilities from the games and likely wind up with a pile of debt.
“The people we’re supposed to serve most, not the tourists, not the people coming in, not the investors, not the businesses, but the people living here? They don’t gain. In fact a lot of them lose,” Licata said.
He started his uphill battle with his most conservative colleagues, highlighting the financial case against hosting the Olympics. He got his message out to local journalists who started covering the issue. He also hosted a public forum downtown in the go-to journalist watering hole. The room was packed with people who had come to listen to a panel of experts make the case against the Olympics (the pro side declined his invitation). He commissioned a countywide poll that showed people were against the bid when they knew about the debt. The council slowly came around and, in the end, eight of nine members signed a letter in opposition to the bid. Because no councilmember was willing to sponsor a resolution in support, the issue died.
Licata’s organizer approach to legislating and willingness to work with everyone was a recurring theme of his time in office and served him well in his proudest victories.
Getting the Rental Registration and Inspection Ordinance—a basic law that requires landlords to register rental properties so the city can make sure they’re up to code—took six years of negotiations between advocates and the Rental Housing Association.
The Paid Sick and Safe Time bill was a similarly big lift that required years of brokering negotiation between labor, activists, and businesses. Councilman O’Brien says that tenacity was an example of Licata at his best.
“He’s watching it and figuring out ‘where are my votes, who’s with me, now where do I get the next vote? I think we need to have a brown bag, we need a town hall, I need to build momentum. What are the obstacles that keep you from supporting this? Can we work on that?’” O’Brien explained.
Licata’s organizer approach to legislating and willingness to work with everyone was a recurring theme of his time in office
He continued, “The bill that came out in the end wasn’t exactly how anyone wanted it in the start, but it was great. He had the ability when he was driving something to be really aware of the politics on the floor, what changes he needed to make, how to manage that dynamic.”
Licata readily admits he can’t take sole credit for $15 Now’s success or many of the city’s big progressive victories. But he’s proud of the role he’s played as an activist on the inside connecting the fist-raised activists he came up with and the establishment whose support and votes are critical for political success.
“I’m not very good at sports analogies. But I think I’m like the midfielders in soccer. They make sure the ball gets to the striker or keeps the ball away from their own goalie. But they don’t end up on the front cover.”
Now that he’s left office, Licata wants to see if he can take his mid-fielding talents national to see if cities’ progressive momentum can combat state and national conservatism.
* * *
The idea that like-minded local politicians need to work together to bolster regional and national progressive policy is at the heart of Local Progress, the nonprofit Licata co-founded with New York City Councilman Brad Lander in 2012. They point to the minimum-wage movement as example of their success. The $15 Now effort started in Seattle then spread to other cities and gained enough momentum to get introduced at state and national levels.
The organization is young and only recently raised enough money to hire staff, but it has succeeded in recruiting 400 members in 40 states, the majority of whom are elected officials. Local Progress’ work is a mix of big-picture enthusiasm building and nitty-gritty policy work.
Licata is working part-time with Local Progress to explore how best to accomplish regional organizing. The work is rooted in a feeling that there’s no choice but to focus on cities.
Lander said, “There’s still a lot cities can do on their own through legislation and policy, as we’ve been seeing. When cities get together they can make changes in their states. Then start to make those changes nationally.”
"I think you can change the world and you have to. You just have to go about it strategically and it takes some time.” —Nick Licata
Michael Kazin, Georgetown University history professor and co-editor of Dissent magazine, agreed that ever-more-progressive city politics have helped shift the national conversation. But without a corresponding movement of national progressives activists, local politicians can only do so much.
“There has to be a left populist movement. It can’t at all dismiss the importance of race and gender and sexual orientation and environment. All that’s right. But you’re not going to win majority without having a majority,” said Kazin.
He continued, “You need a lot of young people who are excited about politics and activists, and not just at election time.”
That is, in some ways, what Licata hopes to engender with his new book. As the name implies, Becoming A Citizen Activist is Licata’s attempt to share the lessons he’s learned to help people effectively navigate city politics.
Perhaps the most important of those lessons is that success comes from barely perceptible micro-victories that build into movements and major victories in the long term.
“Everyone becomes disappointed in the gap between the ideal and the deliverable,” said Licata. “You’re not going to change the world overnight. I think you can change the world and you have to. You just have to go about it strategically and it takes some time.”
Licata’s 18 years in office and over 40 years of community activism in Seattle are certainly evidence of that. His many losses and half wins and small steps forward have added up to marked change in Seattle over time. Of course, like most cities, Seattle is still a deeply inequitable place with a growing gap between rich and poor. But Licata’s work has helped give progressives a platform from which to combat those inequities. And given that, it seems possible that bringing that same detail-focused, local approach to the national stage might eventually bring about national progressive change.
By Josh Cohen
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The fight to make bad jobs better
The fight to make bad jobs better
As of November 26, 2017, fast food companies in New York are required to post worker schedules 14 days in advance. If...
As of November 26, 2017, fast food companies in New York are required to post worker schedules 14 days in advance. If they change the schedule within that window, they will pay an extra fee to the workers who are affected. And before they hire more people, they must offer the available hours to their existing part-time workers.
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Yellen Meets With Activists Seeking Fed Reforms
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with...
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with the Federal Reserve.
More than two dozen activists demonstrated outside the Fed and then met with Chair Janet Yellen on Friday as part of a new campaign seeking policy reforms and a commitment to keep interest rates low until good jobs are plentiful for all workers. Although the labor market has steadily strengthened this year, wages have remained stagnant.
During the hour-long discussion with Yellen and three other Fed board members, coalition representatives discussed problems their communities were facing with high unemployment and weak wage growth.
Ady Barkan, one of the organizers of "Fed Up: The National Campaign for a Strong Economy," said Yellen and the other Fed officials listened but made no commitments about future Fed policy.
"It was a very good conversation," said Barkan, an attorney with the Center for Popular Democracy in Brooklyn. "They listened very intently, and they asked meaningful follow-up questions."
Fed officials confirmed that the meeting took place but declined to comment on the issues raised at the meeting.
The Fed's outreach to community activists was the latest move by Yellen to focus attention on lingering problems from the Great Recession. Wearing green tee-shirts with the phrase "What Recovery?" the group had protested outside of the Fed's headquarters on Constitution Avenue under the watchful eye of nine Fed security officers.
Members of the group, some of whom had demonstrated at a central bank gathering in August in Jackson Hole, Wyoming said it was important that Fed officials not be swayed by arguments that it needs to move quickly to raise interest rates to make sure inflation does not become a threat.
"The banks are the ones that crashed the economy ... but they're the ones who got the bonuses and the bailouts while workers and homeowners like me were left to drown," said Jean Andre, 48, of New York, who said he was having a tough time finding full-time work.
In addition to Yellen, the Fed officials who took part in the meeting were Fed Vice Chairman Stanley Fischer and Fed board members Jerome Powell and Lael Brainard.
Members of the coalition said about half of the meeting was taken up by their members telling stories about the difficulty in finding jobs, particularly in disadvantaged groups and communities dealing with unemployment much higher than the 5.8 percent national average.
The Fed officials also were presented a petition signed by 5,000 people around the country urging the central bank to keep interest rates low until the country reaches full employment.
The group also pushed for a more open process in the selection of presidents of the Fed's 12 regional banks. They say the current process is too secretive and dominated by officials from banks and other businesses with little input from the public. The regional presidents, along with Fed board members in Washington, participate in the deliberations to set interest rates.
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Austin, Texas: If We Can’t Be a Sanctuary City, How about a Freedom City?
Austin, Texas: If We Can’t Be a Sanctuary City, How about a Freedom City?
The ACLU has said it supports advocacy for freedom cities. Sarah Johnson, director for Local Progress, said, “There is...
The ACLU has said it supports advocacy for freedom cities. Sarah Johnson, director for Local Progress, said, “There is an interest from all of our members in Texas and in other states across the country in really pursuing the strongest possible policies to protect immigrants at this time.”
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Rick Kriseman, Karl Nurse urge presidential pardons to keep immigrant families together
Rick Kriseman, Karl Nurse urge presidential pardons to keep immigrant families together
St. Petersburg Mayor Rick Kriseman and City Council member Karl Nurse on Wednesday joined a national letter from local...
St. Petersburg Mayor Rick Kriseman and City Council member Karl Nurse on Wednesday joined a national letter from local elected officials to President Barack Obama calling on him to protect hundreds of thousands of immigrant families by issuing a pardon for lawfully present immigrants with years-old or low-level criminal offenses.
The letter is signed by 60 local elected officials. It kicks off a week in which the president’s legacy on immigration will be at stake, with confirmation hearings and a national day of action that will highlight his record of both deportation and protection, and potentially show just how much could be dismantled by the incoming administration.
The White House has rejected previous calls for pardons for undocumented immigrants, asserting that a pardon cannot be used to grant people lawful immigration status. However, for legally present immigrants who already have status, but who face the risk of deportation based on minor and old convictions, a presidential pardon could provide durable protection against deportation that could not be undone by any future president.
Many of those who would be affected by the pardon were convicted of minor offenses, such as jumping a turnstile. In many cases, the offenses occurred decades ago. The letter joins Local Progress members with over 100 immigrant rights groups who made the same request to the president late last month. Forgiving all immigration consequences of convictions would guarantee that individuals can stay with their families and in their communities. Local Progress is a network of progressive local elected officials from around the country united by our shared commitment to equal justice under law, shared prosperity, sustainable and livable cities, and good government that serves the public interest. Local Progress is staffed by the Center for Popular Democracy.
As local elected officials, the signers of the letter see the impacts of a broken immigration system up close and in their communities, every day. Indeed, localities are often forced to deal with the consequences of deportation, be it in a family, business, child or broader neighborhood.
“As an immigrant who legally came to this country as a child, I have a brother and a sister who could be deported if they had committed a misdemeanor anytime in the last 58 years. So this is personal,” Nurse said.
Kriseman added: “I applaud Councilman Karl Nurse for joining this effort and offer my enthusiastic support. I trust President Obama will do the right thing for our immigrant families in his remaining days in office.”
There is a significant historical precedent for this type of presidential pardon.
Categorical pardons have been used to grant clemency to broad classes of people in the past by presidents ranging from Abraham Lincoln to Jimmy Carter, the latter of whom issued a pardon to approximately half a million men who had broken draft laws to avoid serving in the Vietnam War.
dons to keep immigrant families together
By ANNE LINDBERG
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Scaffold Law Debate Heats Up Over Dueling Reports on Safety and Costs
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-...
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-immigrant rights advocacy group criticizes the construction industry for using what they call misleading figures and cherry picking data to lobby against the state's controversial "scaffold law."
The scaffold law is a century-old law in place to protect worker's rights. Under the law, contractors and property owners serving as contractors are responsible for providing a safe work environment for their employees or become liable for any on-site injuries and accidents.
Opponents of the law point out that contractors are fully liable for workers' injuries even if it is determined the worker is at fault. Opponents say it is outdated and causes construction costs to rise due to the increased costs of insurance premiums. Supporters of the law say it provides common sense protection for workers performing a dangerous job and maintain that contractors are not held liable in court if proper safety precautions are in place.
The new report, titled Fatally Flawed and released by the Center for Popular Democracy, which is supported financially by the New York State Trial Lawyers Association and labor unions, is a scathing criticism of a Rockefeller Institute study — which is frequently referenced by the construction industry — that concluded the scaffold law resulted in an additional 667 work site injuries and adds about $3 billion in additional costs to construction projects in New York state each year.
According to last week's report, the oft-cited Rockefeller Institute study is "fundamentally biased" and calls the New York Civil Justice Institute, which paid $82,800 to commission the Rockefeller study, "a poorly-disguised front group" for the construction industry aligned Lawsuit Reform Alliance of New York. According to the report, the Lawsuit Reform Alliance of New York and the New York Civil Justice Institute share the same address, 19 Dove St, Suite 201, Albany, N.Y., and the same telephone and fax numbers.
"This [Rockefeller Institute] study was bought and paid for by the construction industry," Josie Duffy, a staff attorney for the Center for Popular Democracy. "This is a direct result of people who do not like the scaffold law for business reasons, paying for this report to be released."
On the claim that the scaffold law contributed an additional 667 injuries, the report says the Rockefeller Institute "confuses correlation with causation."
This claim, according the Center for Popular Democracy, is based on worker injury rates in "sub-sectors and non-construction industries," such as warehouse work, transportation, roofing, residential building construction, manufacturing, wholesale trade and utilities industries, and are compared to the rest of the nation.
"The authors assert that these differences are greater in New York and attribute these greater differences entirely to the scaffold law," the new report reads. "There is simply no basis to conclude that the scaffold law is the cause of these differences. Indeed, the authors provide no justification for comparing injury rates in construction with injury rates in less hazardous industries, or using those differences as a proxy for the impact of the scaffold law."
Duffy bluntly says that the scaffold law does not cause an increase in workplace accidents. She says the Rockefeller Institute's study, which was released in February, lacks factual evidence that the law makes work sites more dangerous and "that number is coming from nowhere."
"To me, that is the most egregious part of this whole report," Duffy said.
Despite the strong words used in the report and by Duffy, Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, says that the Rockefeller report "conclusively" found the law made construction sites more dangerous for workers.
He said that absolute liability for contractors creates "perverse incentives" for workers.
"Workers are not incentivized because they are never held responsible and contractors are not incentivized because they are guilty in nearly every circumstance," Stebbins said. "Only by apportioning liability to fault, as is done in every other state and every other part of our civil justice system, can we maintain balance and improve safety."
According to Stebbins, the report released by the Center for Popular Democracy last week is a "political hit piece, with no statistical merit or actual research of any kind. They cannot get researchers to back up their opinions, because the facts do not support the scaffold law."
Stebbins argues that absolute liability causes the insurance markets to treat sites with sterling safety records the same as companies with less stringent safety precautions. Opponents of the scaffold law say that absolute liability holds the company liable for the worker injuries regardless of who is actually found to be at fault.
Duffy however, said that companies are not automatically found to be liable for injuries sustained by workers on construction sites and are typically safe from injury-related costs so long as they had the proper safety precautions in place.
"What absolute liability means is that you have to pay for the costs of the injuries … and that's only going to happen if you're breaking the law," she explained. "What this law says is there has to be some level of protection for workers."
According to Duffy, under the law companies still hold the right to argue their case in court and they are not automatically found responsible for every injury.
"It's important that employers get to have their voices heard in law, I support that this law allows people to get their voices heard on both sides and that's a very, very real protection," she said "Nothing happens automatically in this law and you can't even be taken to court unless your breaking the law in the first place."
The report also criticizes the Rockefeller Institute for failing to take into consideration certain conditions in New York that may affect the injury rates in the state. Such measures include New York generally has more high-level construction works which may drive up injury rates and New York construction workers are more likely to be union workers and therefore are more likely to report injuries. According to the report, Texas has one of the lowest construction injury rates yet is among the highest in construction fatality rates.
According to the report, "Such low-injury-rate states have artificially suppressed the US injury rate, which the paper nonetheless compares to the New York rate."
"This is a law that protects construction workers. Construction workers are doing a really difficult job and they're doing it every day and they are growing our economy," Duffy said. "Construction workers are literally the bread and butter of what makes New York City, New York City … and this is a state of construction."
Assemblyman Francisco Moya, a Democrat from Queens, said the Center for Popular Democracy's report "injected some truth into the politically-charged debate surrounding the scaffold law."
"Many untruths have been lobbed at the scaffold law in an attempt to dismantle it. This report makes clear that those untruths have unfortunately been crafted by parties who have a financial interest in watering down workplace protections," Moya, a staunch supporter of the law, said in an e-mail. "When it comes to life and death decisions about workplace safety, there's no room for politics. It has to be about facts. And the fact is that the Scaffold Law protects workers. That's the real bottom line."
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111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist...
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist rally and riot this month, to Washington, D.C., 111 miles away. The journey—a nonviolent response to the violence of the hate groups that descended on Charlottesville—is expected to take ten days.
They are led by the Reverend Cornell William Brooks, a civil rights lawyer and former president and CEO of the NAACP.
Read the full article here.
Activists at Jackson Hole See Recovery on Wall Street, ‘Not My Street’
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the...
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the Kansas City Federal Reserve Bank’s annual conference in Jackson Hole, Wyo., to tell central bank officials that any move to raise interest rates soon could wreak havoc on the lives of Americans still struggling with a weak economic recovery.
U.S. unemployment has fallen fairly rapidly in recent months, to 6.2% in July, down from its post-recession peak of 10%. However, the activists said those numbers mask much deeper troubles in the country’s poorer neighborhoods. The unemployment rate for African-Americans, for instance, was 11.1% in July.
Reggie Rounds, 57 years old, came to the conference from Ferguson, Mo., the site of recent violent protests following the killing of an unarmed teenager by a police officer. During a brief conversation here with Federal Reserve Vice Chairman Stanley Fischer, Mr. Rounds, who is unemployed and says he hasn’t had regular work for years, urged the central bank to keep poor Americans on their minds as they make policy decisions.
“I deal with people who have educated themselves. These people, sir, are inundated with student loans. They’re making just not livable wages or not wages at all,” Mr. Rounds told Mr. Fischer. “We’re desperately needing a stimulant into this economy, and job creation, to get us going.”
Mr. Fischer responded: “That’s what the Fed has been trying to do and will continue to try to do.”
The Fed has kept interest rates near zero since December 2008 and bought more than $3 trillion in government and mortgage bonds to keep long-term rates low, spur investment and boost hiring.
However, recent improvements in the job market and a pickup in inflation have revived debate about when the central bank should begin lifting interest rates from rock-bottom lows. In her speech here Friday, Fed Chairwoman Janet Yellen said if the labor market keeps improving faster than the Fed forecasts the central bank could raise rates sooner than expected. Many investors anticipate the first move in the summer of next year, a perception some top Fed officials have encouraged.
Representatives of the Center for Popular Democracy, a left-leaning national nonprofit organization, said they organized the activists’ trip to Jackson Hole. The participants argued that near-term rate increases could have a deep negative impact on the most vulnerable sectors of the population.
Reuben Eckels, 51, a reverend from Wichita, Kan., said he had come to the conference to tell policy makers “how raising interest rates would affect the community in which I serve.” He and other activists played down the notion of a “skills gap” where workers might not have the qualifications for the jobs available.
“We have young people who are college students in our church who have a 4.0 [grade average], Dean’s list, they can’t find jobs,” he said. “So this is not about just raising the rates so we can offset an imbalance for those elderly who are trying to save their portfolio. This is about people on the street, everyday people … who are just trying to live a good quality of life.”
Shemethia Butler, 34, is one such individual. Hailing from Washington, D.C. the mother of two says she is dealing with extreme stress because the wages she earns at McDonald’s aren’t enough to cover her rent, much less basic expenses like food, electricity and transportation.
“I have no vehicle. My housing situation is stressful. I’m about to lose my apartment. I’m struggling really hard,” she said. “Things may be fine on Wall Street, but they’re not fine on my street.”
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1 month ago
1 month ago