Archive for the ‘economy’ Category
Tuesday, June 30th, 2015
For the past several decades, the idea that high levels of inequality were good for the economy dominated political and economic thought. Politicians believed the trickle-down theory that enabling “job creators” to get richer would help us all, and economists provided cover for this line of thinking because they thought there was a tradeoff between growth and equity.
But, as inequality has risen to extreme levels in the United States, the foundations of the economy have weakened, and America is now experiencing the kinds of problems that plague less-developed countries. The United States now must confront high levels of societal distrust that make it hard to do business, governmental favors for privileged elites that distort the economy, and fewer opportunities for children of the middle class and the poor to get ahead—wasting vast quantities of human potential.
Fortunately, a new class of economists and policymakers are now challenging the old, flawed, ideas about inequality. Academics have begun to rethink their views about the decline of the middle class, and progressive politicians are finally starting to openly contest the logic underlying supply-side after years of failing to do so. There is a growing realization that a strong middle class is not merely the result of a strong economy—as was previously thought—but rather a source of America’s economic growth.
The new direction on economic policymaking cannot arrive soon enough, because our economy continues to suffer deeply from a financial crash caused in large part by high levels of inequality. Rebuilding the middle class is critical, as a strong middle class performs four vital functions in the US economy.
First, a strong middle class helps society run relatively smoothly, with higher levels of trust among its citizens. People need to be able to trust one another enough to do business with one another. When there is little trust, the cost of doing business shoots up—or, as economists put it, transaction costs increase.
Second, a strong middle class leads to better governance. A thriving economy depends on a well-functioning government that provides critical services, such as roads and schools, with relatively little corruption. As the middle class has weakened and inequality has risen, the wealthy have gained excessive political power and the middle class has become less civic-minded, leading to a host of governmental dysfunctions.
Third, the middle class is a source of stable consumer demand, which enables businesses to invest in new products and hire additional workers—thereby fueling growth. As consumer demand in the years prior to the Great Recession was based heavily on middle-class debt, the economy was unstable. And now that the middle class is so weak—burdened by stagnant incomes, high debt levels, and underwater mortgages—it can’t consume enough to keep the American economy going.
Finally, a strong middle class creates more human capital. In the modern economy, a skilled, healthy, and entrepreneurial workforce is a driver of economic growth—at least as much as the physical capital of factories and machines. As inequality has risen and the middle class has weakened, America has not developed the full human potential of its middle and working classes.
To have strong and sustainable growth, the economy needs to work for everyone. That’s why we need to focus policy on rebuilding our economy from the middle out.
About the Author: The author’s name is David Madland. David Madland is the author of Hollowed Out: Why the Economy Doesn’t Work Without a Strong Middle Class and the Managing Director for Economic Policy at the Center for American Progress. Follow Madland on Twitter: @DavidMadland
Friday, June 26th, 2015
Last week, the U.S. Bureau of Labor Statistics issued its numbers for inflation and for real wage movements. The numbers reflected the weak numbers of the first quarter for economic growth: Zero inflation and zero real wage growth in the past three months. The economy is showing signs that it is fragile. It can be spoofed by international developments that raise the value of the dollar and slow U.S. export growth, or by bad weather—events, the Federal Reserve cannot control or easily predict.
So what is the Federal Reserve doing? At its June Open Market Committee Meeting, where Federal Reserve policy is set, the Fed stayed put on interest rates. Yet, it gave indications that it was considering giving in to the stampede for the Fed to act sometime this year to raise interest rates in a deliberate move to slow the economy. A policy to slow the economy is based on beliefs, not on the hard data before us on wages or inflation. This is regrettable.
The deeper reality is that the Fed took unprecedented moves to build up huge reserves of U.S. Treasuries. What is really going on is more that the speculators on Wall Street are nervous. They are afraid that somehow, from some unknown source, inflationary pressures will rapidly appear and the Fed will quickly unwind its position with, for some of them, disastrous consequences on bets they have placed on bond prices. They would prefer the certainty of having the Fed start to unwind its position now, slowly divesting itself of its bond reserves and easing the economy to higher interest rates. This has nothing to do with the economy, and everything to do with Wall Street speculation. Unfortunately, the press plays sycophant to these speculators, who are constantly quoted as giving “economic” advice when they state with certainty the need for the Fed to raise interest rates.
Sources of global instability abound. The discussions over the Greek debt, the Eurozone bankers and the International Monetary Fund are far from a workable solution. In the meantime, the Swiss Franc is rising uncontrollably in response to that uncertainty. Iraq, Syria, Yemen and the ongoing conflict with ISL make the Mideast equally unpredictable. And, if snows were the issue in the first quarter, the California drought, the Texas floods and Midwest tornadoes so far this quarter should not make anyone confident that the current hurricane season is going to be a sleeper. Further incidents in Charleston and now Charlotte with violent attacks on African American churches and the constant stream of discontent with the ongoing and unresolved issue of police misconduct make the domestic situation equally volatile. With so many uncontrollable and unpredictable risk factors that could slow the economy, the fears of Wall Street speculators should and must take a back seat.
These risks are not all unrelated. A more robust U.S. economy will help the world economy and help reduce some risks associated with weak economic performance; especially in the Eurozone. And a more robust U.S. economy will hopefully speed job growth to reduce the economic tensions that overlay the raw social tensions domestically.
The Fed must expand its view of measures of full-employment. The Wall Street gamblers base their assumptions on full employment from a time gone by. For instance, economists today still persist in viewing the high African American unemployment rate as a “structural” issue, since African American workers are assumed to be so low-skilled they cannot find jobs in a modern economy. So, they ignore the warning signs that job growth is frail when the African American unemployment stalls, as it has, at around 10%.
In May, the unemployment rate for adult African American workers (those older than 25) with associate degrees was 5.6%, which was higher or about the same as the unemployment rate for white, Asian and Hispanic high school graduates. Those numbers are inconsistent with full employment. They indicate a market where employers are very free to pick and choose which workers they want. A faster growing economy will force employers to be less choosy.
The slow economy cascaded higher educated workers down into jobs that require less education. If the economy does not speed up, that misallocation of productive capacity could become permanent, as employers may continue to seek only college graduates to serve coffee. This costs us in loss productivity growth. It is another sign of a labor market that is not at full employment.
Locking in high African American unemployment and college degree requirements for entry-level jobs is not in the economy’s interest. And covering Wall Street bets isn’t either.
This blog was originally posted on AFL-CIO blog on June 26, 2015. Reprinted with permission.
About the Author: The author’s name is William E. Spriggs. William E. Spriggs is the Chief Economist for AFL-CIO. His is also a Professor at Howard University. Follow Spriggs on Twitter: @WSpriggs.
Wednesday, March 18th, 2015
Posted on 05 March 2015.
It’s a good thing when we use real words to describe the truth. When bankers rip off people with mortgage scams, it’s robbery–even if they get away with it because we have a government unwillingness to jail them. And, once and a while, a politician gets it right.
Kudos to NY Attorney General Eric Schneiderman for calling the wage theft of fast food workers what it is. A crime. No, a crime wave:
At a press conference at his lower Manhattan office, Mr. Schneiderman, a Democrat, linked the recent decision against Ronald Johnson of New Majority Holdings, LLC—who a judge found had rounded down workers’ hours, paid below minimum wage and failed to reimburse upkeep costs of delivery vehicles—as part of a larger string of abuses his office has uncovered. The attorney general highlighted underpayment at 21 other fast food restaurants citywide—at franchises like Domino’s Pizza and McDonald’s—affecting 16,000 workers and for which has reaped $19 million in recovered wages.“There is an effort by thousands of businesses, unfortunately, to underpay workers what they are legally owed. And we have to go after them and treat it like a crime wave, which is what it is. It’s a crime wave. We’re talking about millions and millions, even hundreds of millions of dollars,” Mr. Schneiderman said. “If this money was just being stolen, by some organized gang of crooks, you bet everyone would know about it and be on it. This is something we treat just as seriously.”[emphasis added]
His point is that this goes way beyond one particular fine. It’s broad, it’s deep, it’s persistent.It’s a crime.
Maybe he needs to school the people at the Justice Department about what a crime is. And to call it like it is.
About the Author: Eric Schneiderman is a political/organizing/economic strategist. President of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years; his goal is to find the “white spaces” that need filling, the places to make connections and create projects to enhance the great work many people do to advance a better world. He’s also publisher/editor of Working Life.
See more at: http://www.workinglife.org/the-bio-stuff/#sthash.zfgd8cpI.dpuf
Friday, December 6th, 2013
President Barack Obama today said that “a relentless, decades-long trend”—“a dangerous and growing inequality and lack of upward mobility…has jeopardized middle-class America’s basic bargain: that if you work hard, you have a chance to get ahead.”
The president declared that “making sure the economy works for every working American” is the “defining challenge of our time” and drives everything he does as president. His proposals to reduce inequality include an increase in the minimum wage and “ensuring that our collective bargaining laws function as they’re supposed to, so unions have a level playing field to organize for a better deal for workers and better wages for the middle class.”
In the speech at a community center in a low-income area of Washington, D.C., which was hosted by the Center for American Progress, Obama said, “[T]he premise that we are created equal is the opening line in the American story.” He highlighted a series of efforts throughout American history to put those words into practice—from Abraham Lincoln starting a system of land grant colleges; to Theodore Roosevelt fighting for an eight-hour day and worker protections; to Franklin D. Roosevelt fighting for Social Security, unemployment benefits and a minimum wage; to Lyndon B. Johnson fighting for Medicare and Medicaid.
“We built a ladder of opportunity to climb and stretched out a safety net so that if we fell, it wouldn’t be too far, and we could bounce back. As a result, America built the largest middle class the world has ever known. And for three decades after World War II, it was the engine of our prosperity.”
However, Obama said, “starting in the late 70s, the social compact began to unravel.”
A more competitive world lets companies ship jobs anywhere. And as good manufacturing jobs automated or headed offshore, workers lost their leverage, jobs paid less and offered fewer benefits. As values of community broke down and competitive pressures increased, businesses lobbied Washington to weaken unions and the value of the minimum wage.
As trickle-down ideology became more prominent, taxes were slashed for the wealthiest, while investments in things that make us all richer, like schools and infrastructure, were allowed to wither.
The result is “an economy that’s become profoundly unequal.” Income inequality has grown to record levels, with the top 1% having 288 time the net worth of the typical family, with CEO pay soaring from 20 to 30 times that of the average worker to more than 273 times and with the top 10% taking half of all income, up from a third since 1979. In addition, Obama outlined how upward mobility has been squashed at the same time.
The president said that growing inequality and lessened upward mobility “should offend all of us and it should compel us to action. We are a better country than this.” He highlighted that these trends are bad for our economy, pointing to studies that show that economic growth is more fragile in countries with greater inequality.
Obama then presented a “road map” of proposals to reduce inequality and restore economic opportunity:
- Relentlessly push a growth agenda, making America a magnet for good, middle-class jobs in manufacturing and energy and infrastructure and technology, and ending incentives to ship jobs overseas;
- Empower more Americans with the skills and education they need to compete in a highly competitive global economy;
- Empower our workers. “It’s time to ensure our collective bargaining laws function as they’re supposed to so unions have a level playing field to organize for a better deal for workers and better wages for the middle class. It’s time to pass the Paycheck Fairness Act so that women will have more tools to fight pay discrimination. It’s time to pass the Employment Non-Discrimination Act so workers can’t be fired for who they are or who they love;
- Target programs for the communities and workers who have been hardest hit by the economic change and the Great Recession; and
- Revamp retirement to protect Americans in their Golden Years.
He said that “it was well past time” to raise the minimum wage for a growing service sector that includes “airport workers, and fast-food workers, and nurse assistants, and retail salespeople who work their tails off and are still living at or barely above poverty.”
Obama also called for renewing the extended unemployment insurance program for the long-term unemployed and protection of the Supplemental Nutrition Assistance Program that Republicans have targeted for cuts.
It makes a difference for a mother who’s working but is just having a hard time putting food on the table for her kids, [and] it makes a difference for a father who lost his job and is out there looking for a new one that he can keep a roof over his kids’ heads.
He also told congressional Republicans, who have blocked and continue to block action on the economy—from creating jobs to raising the minimum wage to ending tax breaks for corporations that ship jobs overseas:
You owe it to the American people to tell us what you are for, not just what you’re against….If Republicans have concrete plans that will actually reduce inequality, build the middle class, or provide more ladders of opportunity to the poor, let’s hear them.
Read the full speech here.
This article was originally printed on AFL-CIO on December 4, 2013. Reprinted with permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journaland managing editor of the Seafarers Log. He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.
Wednesday, June 26th, 2013
I know what it’s like to depend upon coal to feed a family. Many years ago I worked at a steel mill in Ohio. My job was at the coke plant where West Virginia coal was turned into coking coal for the blast furnace. The top of the coke ovens was an area the size of a football field where monstrous machines funneled coal into the ovens. It was my job to put the heavy oven lids back on nice and tight. It was literally as hot as hell up there. It felt like walking barefoot on hot coals. The air we breathed was truly foul but to us it was the sweet smell of something like success. We called it the smell of money because it paid the bills.
Yet as soon as I got a chance to escape the coke ovens, I took it. I got a job bid on a crew at the blast furnace. But I couldn’t escape the coal. Like the devil or a bad check, coal will find you. It followed me to the blast furnace.
Big railroad cars full of coking coal arrived at the blast furnace every two or three hours. In the winter it would get as cold as twenty below zero and the coal would freeze solid into one huge mass. The company said under no circumstances were we to climb into the open-top railroad cars to break up the coal. But the company also made it clear we better hurry up and get that coal offloaded. So in we went, carrying big torches to heat the coal and pry bars to break it up. We prayed that it wouldn’t loosen all at once with the possibility that we might go down the chute with it. Many times on a cold winter night I had to look in on my sleeping babies to motivate myself to leave for work on midnight shift.
There was a small group of environmentalists in town who kept raising hell about the pollution from the steel mills. I understood their point. After all, I was more directly affected by pollution than they were. But they didn’t even give lip service to our need to feed our families. So I dismissed them out of hand. In fact, I hated them and feared the changes they might be able to bring about. Jobs or the environment? An easy choice to make. Jobs are more important.
Eventually I was permanently downsized from the mill. The loss of my job caused severe dislocation for my family. It also caused dislocation in my mind, creating an opening, a new space. Facts and events that had once gone in one ear and out the other began to find a place in my thinking. Global warming. Poisoned rivers and oceans. Black lung disease. Hurricane Katrina. Oil spills. Coal-fired power plants spewing acid and deadly metals into our air.
Slowly and not always surely, I began to realize that the environmentalists I had once rejected as extremists were correct when they said that fossil fuels are destroying the earth. Coal and oil aren’t just causing some problems we can learn to live with in pursuit of economic survival. They are going to make it impossible for humans to live on this planet.
Jobs or the environment? Posing the question that way eliminates any chance of coming up with answers and it ignores the people who live at ground zero of the debate. I know first-hand what goes through the minds of coal miners as they sit at the kitchen table facing a pile of bills. “Yes, I know what some people say about what we do. They may even be right. But just give me one more month on this job so I can pay the rent and the electric and the credit card bill. Then maybe one more month after that and another after that until the youngest finishes school.”
Jobs or the environment? Soon it will be too late and we will have neither. Unless we come together under the banner of both.
This article was originally printed in Love and War: My First Thirty Years of Writing by Lee Ballinger. If you would like to make a comment or to be notified when the book is published, please email [email protected] or go to http://www.facebook.com/leeballingerwrites.
Friday, May 10th, 2013
A stunning 73.4 million young workers are estimated to be jobless in 2013, an increase of 3.5 million between 2007 and 2013, according to an International Labor Organization (ILO) report released Wednesday. Even worse, the number of unemployed young workers is likely to increase through 2018, with the long-term impact felt for decades, the report forecasts.
According to “Global Employment Trends for Youth 2013: A Generation at Risk.”
The youth employment crisis will not be overcome without stronger employment growth. But job growth will not happen on its own. The report urges nations to adopt aggressive policies for improving job growth, including strategies targeting employment of disadvantaged youth. Further, nations must invest in education and training and ensure labor rights are based on international labor standards “to ensure that young people receive equal treatment and are afforded rights at work.
The report also finds:
Increasing the participation of young people in employers’ and workers’ organizations and in social dialogue and improving their awareness about young workers’ rights—including through modules in school curricula—are key instruments for enabling young people to voice their concerns and for improving the quality of jobs available to them.
Among the report’s findings:
- Young workers are increasingly employed in non-standard jobs, including temporary employment and part-time work. Informal employment accounts for half of young workers in the Russian Federation.
- In 2012, youth unemployment was highest in the Middle East (28.3%) and North Africa (23.7%) and lowest in East Asia (9.5%) and South Asia (9.3%).
- Gender gaps in youth unemployment rates are exceptionally large in the Middle East and North Africa.
- In all developing countries surveyed, more young people receive below-average wages than average or above-average wages. This trend is strongest in Cambodia, Liberia, Malawi and Peru, where two-thirds of working young are classified as poorly paid.
- Young people continue to suffer disproportionately from decent work deficits and low-quality jobs, measured in terms of working poverty, low pay and/or employment status and exposure to occupational hazards and injury.
Underlying the inability of young workers to find jobs, the report finds, is the persistent unavailability of quality, full-time jobs; the proliferation of temporary jobs; a skills mismatch; and the growth of informal, subsistence jobs in developing countries.
Packed with charts and graphs, the 150-page report also includes case studies highlighting best practices for addressing youth unemployment, including Peru’s job action plan and the dual apprenticeship program offered in some European countries.
Report: 73.4 Million Young Workers Jobless in 2013 originally appeared on the AFL-CIO Solidarity Center’s website.
This article was posted on the AFL-CIO on May 9, 2013. Reprinted with Permission.
About the Author: Tula Connell has a background in journalism—covering bull roping in Texas and school boards in Virginia—She started working in the labor movement in 1991. Beginning as a writer for SEIU (and OPEIU member), She now blogs under the title of AFL-CIO managing editor.
Tuesday, April 30th, 2013
A new report from the Center for Economic and Policy Research (CEPR) shows the country needs to increase union membership significantly, create universal health care, a universal retirement system (beyond Social Security), expand college attainment and achieve gender pay equity to create more “good” jobs in the United States.
CEPR defines a good job as one that pays at least $19 per hour, has employer-provided health insurance and has some kind of retirement plan. In previous reports, they showed there has been a significant decline in the past 30 years in the share of good jobs in the United States. The decline comes despite increases in productivity and educational attainment of the workforce.
The report notes that one of the key reasons for the decline in good jobs in recent decades is the decline in union participation. Increasing the percentage of the workforce that belongs to unions translates to an increase of good jobs of just less than 7%.
In the report, CEPR has five primary conclusions:
- It will take big steps to increase the number of good jobs in the economy, and none of the policies they propose would be sufficient alone.
- Eliminating bad jobs is easier than creating good jobs.
- Pursuing more than one of these policies would raise the number of good jobs more than the sum of the two policies individually.
- Increasing the membership of unions creates more good jobs than a comparable expansion of college attainment would, and it would do it more quickly than expanding college attainment.
- Gender pay equity would erase most of the good jobs gap between men and women.
Read the full report.
This article was originally posted on the AFL-CIO on April 29, 2013. Reprinted with Permission.
About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist whose writings have appeared on AFL-CIO, Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.
Monday, April 8th, 2013
Republicans are suffering grievously from the syndrome that singer Joni Mitchell memorialized in the hit “Big Yellow Taxi” in 1970. The chorus says it all:
Don’t it always seem to go
That you don’t know what you’ve got
Till it’s gone
They paved paradise
And put up a parking lot
Republicans bellyached for years that government must shrink. It had to be smaller. Cut the budget come hell or high water, they yammered. Well, darn if the sequester hasn’t brought hell and high water to Republican districts across America. Now Republican lawmakers can’t stop carping about how small government shouldn’t occur in their districts. Don’t it always seem to go that you don’t know what you’ve got till you vote to kill it?
Paradise was among the first to go. Specifically, the paradise of American parks. The National Park Service, complying with the mandate that it slash about 9 percent of its budget through September, reduced hours, cut staff and stopped providing some services such as campgrounds,based on recommendations from each park superintendent.
Among the campgrounds shut down are those at Wind Cave National Park in South Dakota. The state’s Republican Senator John Thune is feeling particularly grumpy about that. He accused the Park Service of closing his campgrounds instead of cutting wasteful and duplicative spending, examples of which he neglected to offer.
He’s singing the whiny sequester tune popularized by Republicans who refused to raise taxes on the rich to reduce the impact of $1 trillion in indiscriminate, across-the-board budget cuts they demanded. They all said they wanted smaller government. They huffed and they puffed and they threatened to take down the nation’s economy until they got it.
Now that it’s here, now that it’s affecting their constituents, Republicans contend the $1 trillion in indiscriminate, across-the-board budget cuts they demanded should have been specifically targeted to eliminate only “waste, fraud and abuse.”
That’s a confusing assertion, though, from the party insisting on smaller government, the party whose members swore loyalty oaths to Grover Norquist, the anti-government lobbyist who infamously said government must be shrunk small enough to drown in a bathtub. Even if every speck of waste, fraud and abuse that anyone could ever uncover were eliminated, it wouldn’t add up to $1 trillion. And it wouldn’t shrink government.
Government might be more efficient, but it wouldn’t be smaller. Smaller government requires cutting actual services and programs—like Thune’s campground.
So far, Republicans haven’t wailed about cuts to programs for struggling families such as unemployment benefits, public housing, daycare aid for poor working women, the home heating help called LIHEAP, or the food assistance called WIC that impoverished mothers use to feed their babies.
There has been no Republican backlash about the Energy Department laying off 250 workers and furloughing another 2,600 at the nation’s largest Superfund cleanup site, Hanford Nuclear Reservation in Washington State, where radioactive contamination began with the Manhattan Project and continued for 40 years.
Instead, Republicans protested cuts to programs more likely to affect wealthier constituents. That is, constituents more likely to make campaign donations.
They’ve griped like crazy about the decision to stop White House tours, about the Federal Aviation Administration (FAA) closing 149 control towers at small airports and about the reduction in service at National Parks.
The FAA announcement that it would be forced to close the towers in order to slash $637 million from its budget as sequestration requires sent Republicans from rural areas into a tizzy.
One after another stepped up to say stuff should be cut, somewhere, you know, but not their control tower. Several suddenly experienced the realization—something Democrats have been saying for years—that slashing federal spending harms the economy.
Here, for example, is Republican Congressman Blake Farenthold of Texas contending the FAA should preserve a tower in his district to prevent damage to business:
A closure of the air traffic control tower at Victoria Regional Airport will have a negative economic impact on the city of Victoria, Texas and the surrounding region.
Similarly, here’s Republican Congressman Dennis A. Ross railing against closure of the tower in his Florida district because it’s needed for the annual SUN ’n FUN Fly-In convention:
SUN ’n FUN not only provides incredible economic value to Lakeland, but it serves our children by investing $1.4 million dollars annually in education. It is unacceptable to cut this important funding.”
Rep. Ross suggested, instead, eliminating “waste, fraud and abuse to make our government more responsible, effective and efficient.”
Like every other Republican who opted for abolishing “waste, fraud and abuse” instead of cutting services to his own district, Ross failed to specify any examples.
Republicans may have some difficulty spotting waste, fraud and abuse because they’re a little too close to it. Incensed that visiting constituents will be denied visits to the White House, the GOP-controlled House Committee on Oversight and Government Reform devoted its “government oversight and reform” efforts to producing a video criticizing the sequester-caused White House tour cancellations.
That video definitely qualifies as waste.
Republicans never knew what their districts had gotten from the federal government. Until it was gone. Until after they’d paved it over with the sequester. Now they’re stalled in an economically barren parking lot of their own creation.
This article was originally posted on the Working In These Times on April 2, 2013. Reprinted with Permission.
About the Author: Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18.
Tuesday, March 26th, 2013
We already covered how sequestration cuts will affect your state, but here’s an update on the pain these cuts are causing in communities across the country since they went into effect March 1.
Think these cuts aren’t painful? Think again. Here are some highlights on the sequester’s reign of terror from newspapers and media outlets across the country:
FAA To Close 149 Airport Control Towers Due to Sequestration
Head Start Programs Gutted by Sequestration Cuts
Sequestration Will Take Big Bite from Medical Research Funding
Military Tuition Assistance Taken Away After Sequester
Sequestration to Force Weeklong Closure of Government Agency
Meals on Wheels Suffers Amid Sequestration
23 Tooele County Employees Laid Off Due to Sequestration
The Huffington Post’s Sam Stein and Amanda Terkel break down local stories even further. See a longer list of the devastating cuts here.
Remember, the sequester is a completely made up, dumb idea and can be easily repealed by Congress. This year alone, 750,000 will lose their jobs because of the sequester.
Working families are calling on Congress to protect Social Security, Medicare and Medicaid from benefit cuts (i.e., raising the retirement age and the “chained” CPI), repeal the sequester and close tax loopholes for corporations and the wealthiest 2%.
This article was originally posted on the AFL-CIO on March 22, 2013. Reprinted with Permission.
About the Author: Jackie Tortora is an blog editor and social media manager at the AFL-CIO.
Wednesday, March 20th, 2013
WASHINGTON, DC—When President Obama proposed raising the federal minimum wage from $7.25 to $9 an hour in his State of the Union speech on February 12, the call came as a surprise to many wage-increase advocates.
Jen Kern, the minimum wage campaign coordinator at the National Employment Law Project, one of the largest advocacy groups on wage issues, says that her organization was consulted only “two hours ahead” of the State of the Union speech.
“We had been pushing him on this for years, since he mentioned it in his campaign in 2008, and never really heard anything from him,” says Kern. “So, yeah, we were surprised.”
“We were given little advance notice,” says Bill Samuel, government affairs director for the AFL-CIO, labor’s main coalition. “I think this is a strategy that the White House has often employed before a State of the Union. I believe that was intentional. It wasn’t a bad motive. I think they decided this should be good news.”
In another indication that the president didn’t consult with allies before selecting the $9-an-hour figure, Congressional Democrats Sen. Tom Harkin (Iowa) and Rep. George Miller (Calif.), who proposed an increase to $9.80-an-hour in last year’s legislative session, were already at work on a new bill to raise the minimum to $10.10. They issued a joint response to the State of the Union applauding the president’s move but questioning the $9-an-hour figure, saying: “While we believe the president’s proposal is lower than what is needed, there is no question that last night he threw the doors open for a robust discussion on the importance of raising the minimum wage.”
Harkin and Miller, who serve as the ranking Democrats on the Senate and House committees with jurisdiction over wage increases, officially introduced their $10.10 proposal on March 5. According to a press release issued by Harkin’s office, “If the minimum wage had kept up with inflation since 1968, it would be worth approximately $10.56 per hour today… Increasing the minimum wage to $10.10 per hour will increase GDP by nearly $33 billion over the course of three years as workers spend their raises in their local businesses and communities.”
The $1.10-an-hour difference between the president’s proposal and Congressional Democrats’ plan would have a cumulative effect. Under both plans, once the minimum wage rate is set, it will thereafter be adjusted as a percentage of inflation, and is unlikely to make a jump as big as $1.10 an hour in one year.
The lack of coordination between labor, the White House and Congressional Democrats appears to continue in the wake of the Miller-Harkin bill. The AFL-CIO isn’t sure whether the White House supports the increase to $10.10 an hour. “I have not heard anything positive or negative. It’s my assumption they are fine with a higher number if it’s possible in the House or Senate,” says the AFL-CIO’s Bill Samuel.
The White House would not respond to inquiries about whether it supports the Miller-Harkin proposal. However, in a blog post for The Huffington Post on Thursday, Acting Secretary of Labor Seth D. Harris reiterated the president’s call to raise the minimum wage to $9 an hour. White House spokesperson Matthew Lehrich told In These Times by email, “The President applauds Senator Harkin, Representative Miller for getting this debate started in Congress. He stands ready to work with Congress to pass legislation to increase the minimum wage as soon as possible—both parties should agree that hard-working families should not be living below the poverty line.”
Meanwhile, four weeks after the State of the Union, the President’s grassroots political advocacy arm, Organizing for America, has yet to meet with the AFL-CIO to discuss how to coordinate mobilizations on the state level to win the minimum wage fight.
“We haven’t talked specifically about their strategy, but we will soon,” says Samuel. “We have a meeting coming up with OFA where I am sure this will be discussed, but we have not had any formal meetings. There has been some talk about using their grassroots structure of OFA and we are certainly preparing to use our grassroots structure.”
Organizing for America did not respond to request for comment.
Despite the apparent lack of coordination so far, labor is optimistic that the president will genuinely push for a minimum wage increase.
“The president is taking on the conservatives and most of the Republican Party to do this,” says Samuel. “It’s always exciting to be in a fight that certainly if we win can help so many people. I think they are serious about it.”
This article was originally posted on the Working In These Times on March 11, 2013. Reprinted with Permission.
About the Author: Mike Elk is a Pittsburgh native and labor journalist for In These Times. His investigative work has been cited on the front page of the New York Times and debated by Whoopi Goldberg and Barbara Walters on ABC’s The View. Elk won a Sidney Award for his coverage of how corporations crafted legislation to exempt prison labor from U.S. minimum wage laws.