Posts Tagged ‘Employment’
Wednesday, February 3rd, 2016
The Heritage Foundation has released its annual “Index of Economic Freedom.” As America enters an election season increasingly influenced by anger at an economy rigged in favor of the wealthy, maybe it’s time to ask: What is “economic freedom,” and who is it for?
What does economic freedom mean to you, personally? Given that we only recently recovered from a serious national bout of “Powerball Fever,” it’s a safe bet that for most people it means not having to worry about having enough money. It means earning a livable wage; enough to meet basic needs, like food, shelter, transportation, and medical care. It means earning enough to support your family, and having leisure time to enjoy your family. It means being able to educate your children — or yourself — without putting yourself in hock with debt. It means having a fair shot at reaching the next rung on the economic ladder, and securing a better future for your children. It means being able to retire with a decent standard of living.
For the Heritage Foundation, “economic freedom” is “the fundamental right of every human to control his or her own labor and property.” Who’d disagree with that? However, the Heritage definition quickly moves from a focus on the individual to a society in which “governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.”
It sounds good, until you realize we’re not talking about the rights or freedoms of persons like you and me, but wealthy people and “corporate persons.” Heritage breaks “economic freedom” down into four pillars: “Rule of Law,” concerning property rights and “freedom from corruption”; “Limited Government,” concerning “fiscal freedom” and government spending; “Regulatory Efficiency,” concerning “business freedom”, “labor freedom”, and “monetary freedom”; and “Open Markets,” concerning “trade freedom”, “investment freedom,” and “financial freedom.” They repeat the word “freedom” as often as possible, but what do all of those things mean in reality?
If you’re an average worker, it means little to no “regulations concerning minimum wages.” So employers can pay you as little as they like. If you can’t live on what they pay, you’re free to try to earn more elsewhere. Good luck with that, because who gets rich paying higher wages than their competitors? Several of the countries in the Heritage’s “economic freedom” top 10 had the lowest hourly minimum wages, including Chile ($2.20) and Estonia ($2.70). Others have no minimum wage.
There are some developed countries with no minimum wage on Heritage’s index, like Switzerland (number 4) and Denmark (number 12, just behind the U.S.), but they tend to rely on strong trade unions to negotiate fair wages for workers.
If you’re an American worker, it means driving down wages with trade agreements like the Trans Pacific Partnership (TPP), that institute what Heritage calls “trade freedom,” defined as “the absence of tariff and non-tariff barriers” on imports and exports of goods and services. The top 10 on Heritage’s index is almost a membership list of TPP countries, including Singapore, New Zealand, Chile, Australia and Canada.
It means there are few, if any, labor laws prescribing maximum working hours. There’s no limit on how many hours your employer can require you to work. It means you don’t even have a right to a two-day weekend.
It means there are few, if any, “laws inhibiting layoffs,” “severance requirements,” or “measurable regulatory restraints on hiring and hours worked.” In other words, forget about “right to work” states. It’s a “right to work” world, in which you have the right to work harder and longer for less.
It means no Social Security as we know it. In fact, it means no government programs, as Heritage’s index uses zero government spending as a benchmark. (So underdeveloped countries with little governmental capacity may receive “artificially high scores” for government spending.) The government won’t have anything to spend anyway, because “fiscal freedom” means a low top marginal income tax rate, and a low top marginal corporate tax rate. The lower the rates, the higher the “fiscal freedom” score. Serving as a tax haven for corporations and wealthy individuals seeking to avoid taxes back home, under the banner of “investment freedom,” can earn countries like Ireland (number eight on Heritage’s index) high “economic freedom” scores.
How does all this “economic freedom,” mostly for the wealthy and “corporate persons,” work out for the rest of society? According to Heritage, more “economic freedom” is supposed to mean less inequality. Yet, some of the highest ranking countries on Heritage’s index have the highest rates of inequality.
? Despite being number one on Heritage’s index, Hong Kong’s yawning gap between rich and poor has fueled protests, despite increasing minimum wages.
? Number two on Heritage’s index, Singapore has one of the highest rates of inequality, leading to calls for the government to take action.
? The “miracle of Chile” (number seven on Heritage’s index), so christened by conservative economist Milton Friedman, has lost its shine as Chile’s plantation economy has made it one of the countries with the most serious inequality problems.
Every year Heritage comes out with a new “economic freedom” index, and every year the questions behind the numbers is the same: What is economic freedom, and who is it for? The answer remains the same, too. Heritage’s “economic freedom” is freedom for the wealthy and giant corporations to further consolidate their wealth and power, and not much else.
This blog originally appeared in ourfuture.org on February 2, 2016. Reprinted with permission.
Friday, January 29th, 2016
On December 30, 2015, the unanimous Commonwealth Court of Pennsylvania, sitting en banc, declared the lifetime employment ban contained in The Older Adults Protective Services Act (OAPSA) to be facially unconstitutional and enjoined Pennsylvania from further enforcement of the law (See Peake v. Commonwealth). OAPSA is a Pennsylvania law that, among other things, prohibits anyone who has ever been convicted of any disqualifying crime at any time in his or her life from ever holding any job at any covered residential health care facility. In essence, the Act imposes a lifetime employment ban, forever disqualifying individuals from work due to often long-past actions for which the offender’s debt to society has since been repaid. Even if the owner or operator of a covered facility, based upon his or her years of experience in the industry, believes that an applicant or employee with a prior conviction is the best qualified for the job, the criminal history of the applicant or employee is the only factor the employer may consider and employment is barred. Employers have no discretion to make individualized hiring decisions.
Writing for the 7-0 Commonwealth Court, Judge Leavitt ruled that the ban “is unconstitutional on its face” because “it goes beyond the necessities of the case and is not substantially related to the Act’s stated objective of protecting older adults.” The Court also found that OAPSA’s employment ban unconstitutionally imposes an irrebuttable presumption of unfitness for employment that is not universally true and that reasonable alternative means exist for ascertaining an individual’s fitness. The Court therefore granted the Petition for Summary Relief, declared OAPSA’s employment ban unconstitutional on its face, and enjoined the Commonwealth of Pennsylvania from future enforcement of the law.
Barring all individuals with prior criminal convictions from employment is antithetical to any concerns for rehabilitation and reintegration with society. An individual who has successfully completed his or her punishment after a criminal act should not be further stigmatized by being unable to get a job. Not surprisingly, recidivism rates are substantially lower for individuals with steady employment opportunities; thus, public safety is actually harmed by statutory employment bars like OAPSA or hiring practices that automatically exclude individuals with criminal records. Allowing those with prior criminal convictions to reenter the work force also saves public tax dollars by avoiding the high costs of corrections and other social service benefits to which an unemployed individual may be entitled. To successfully reintegrate an individual with a record back into society is the very epitome of a win-win situation.
In addition to making for bad public policy, lifetime employment bans such as that in OAPSA are based on a faulty premise: namely, that a past criminal act is indicative of an increased risk of future criminal behavior. Rigorous social science studies have now confirmed that after a limited number of years – four to seven years for a single conviction and no more than ten years for multiple convictions – an individual with a prior criminal conviction is no more likely to commit a criminal offense than any member of the general public. Lifetime employment bans like OAPSA, which are based on an irrebuttable presumption of “once a criminal, always a criminal,” simply are not supported by social science results.
A more thoughtful and balanced approach is required: Yes, under certain circumstances, a prior conviction may be relevant to the fitness of a specific candidate or employee for the requirements of a specific job; but those determinations must be made on a individualized basis with due consideration of all relevant factors, including the nature and severity of the prior criminal conduct, the time elapsed since the conviction, the efforts at rehabilitation and reintegration the individual has made in the interim, and the specific job requirements of the position for which he or she would be hired. The decision whether to hire an individual with a past criminal conviction is not amenable to a one-size-fits-all solution. And a lifetime ban, which completely precludes an employer from hiring an individual with a record (often from decades past), even if the employer thinks that he or she is well-qualified for the position, is irrational and counterproductive.
It’s time to bring some common sense back to this issue: Individuals with a prior criminal conviction already have plenty of barriers to overcome in becoming reemployed. Their reintegration into society should not be made impossible through misguided efforts that are premised upon faulty assumptions and actually result in increased safety risks.
A version of this article was originally published on the LeVan Law Group website. Printed with Permission.
Peter H. (“Tad”) LeVan, the lead attorney working pro bono on Peake and it predecessor case, Nixon v. Commonwealth of Pennsylvania, is a seasoned trial and appellate attorney who has tried a number of high-stakes cases against national banks, Wall Street financial institutions and a Madoff investment firm, securing settlements on behalf of injured plan participants that have exceeded $700 million
Friday, January 22nd, 2016
If you want to know why a political revolution is necessary (and why the status quo’s most intellectually fraudulent campaign in recent Democratic primaries is such a threat to working people), you need only check out this new report from our friends at the Economic Policy Institute. Wal-Mart (that would be the board the status quo candidate sat on without uttering a peep while millions of women were discriminated against and the Waltons pursued their middle-class killing business plan) essentially obliterated, conservatively, 400,000 jobs in a decade or so.
This paper updates earlier work (Scott 2007) to provide a conservative estimate of how many jobs have likely been displaced by Chinese imports entering the country through Wal-Mart:
Chinese imports entering through Wal-Mart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports to China conducted through Wal-Mart likely accounted for 15.3 percent of the growth of the total U.S. goods trade deficit with China between 2001 and 2013.
The Wal-Mart-based trade deficit with China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.
The manufacturing sector and its workers have been hardest hit by the growth of Wal-Mart’s imports. Wal-Mart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Wal-Mart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.
Wal-Mart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Wal-Mart trade deficit with China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.
China has achieved its rapidly growing trade surpluses by manipulating its currency: it invests hundreds of billions of dollars per year in U.S. Treasury bills, other government securities, and private foreign assets to bid up the value of the dollar and other currencies and thereby lower the cost of its exports to the United States and other countries. China has also repressed the labor rights of its workers and suppressed their wages, making its products artificially cheap and further subsidizing its exports. Wal-Mart has aided China’s abuse of labor rights and its violations of internationally recognized norms of fair trade by providing a vast and ever-expanding conduit for the distribution of artificially cheap and subsidized Chinese exports to the United States. [emphasis added]
Since Wal-Mart’s exports to China were negligible, the rapid growth of its imports had a proportionately bigger impact on the U.S. trade deficit and job losses than overall U.S. trade flows with China (since the rest of U.S. trade with China does include significant U.S. exports to that country). On average, each of the 4,835 stores Wal-Mart operated in the United States in fiscal 2014 (Wal-Mart Stores Inc. 2014) was responsible for the loss of about 86 U.S. jobs due to the growth of Wal-Mart’s trade deficit with China between 2001 and 2013.
So, if for some reason, you shop at Wal-Mart, think about each of those workers whose job you helped eliminate by supporting this scar on the economy. While middle-class jobs disappear and people become even more impoverished, forcing them to shop at Wal-Mart, the Waltons became the richest family in the country, with $149 billion in wealth for six people.
Be my guest: continue to believe the fraudulent rhetoric coming from the status quo. Continue to live in a dream world and ignore the reality, and the record, continue to embrace the most amazing individual cognitive dissonance imaginable and fawn over a fraud in complete ignorance of the facts laid out.
And, then, don’t be surprised and weep when Wal-Mart grows, poverty widens and nothing changes.
This blog originally appeared in workinglife.org on December 22, 2016. Reprinted with permission.
Jonathan Tasini is the 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. Hiss 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 is also publisher/editor of Working Life.
Wednesday, January 13th, 2016
WASHINGTON. D.C.—Last night, President Obama gave his State of the Union address before a joint session of Congress—but barely mentioned unions. The president did touch on a number of issues important to workers—such as increasing manufacturing in America, taxing the rich more equitably, increasing education funding and increasing enforcement of trade laws—but said nothing about increased attacks on workers’ rights around the country during the last 12 months.
This despite 2011 being the a year in which unions (especially those representing public-sector workers) have been under unprecedented attacks in places like Wisconsin, Ohio and Indiana.
The only time Obama explicitly mentioned a union was in reference to “Master Lock’s unionized plant” in Milwaukee, which he said is now running at “full capacity” because the company brought back jobs from overseas.
At the beginning of his speech, Obama said: “At the end of World War II, when another generation of heroes returned home from combat, they built the strongest economy and middle class the world has ever known.” However, he did not mention the fundamental role that unions played in building that middle class. Unions represented nearly one-third of all workers in the decade following World War II.
One of the only times that President Obama did indirectly to address union issues was in what could be interpreted to be a reference to wanting more “flexibility” in contract language “to replace teachers.” Obama said:
Teachers matter. So instead of bashing them, or defending the status quo, let’s offer schools a deal. Give them the resources to keep good teachers on the job, and reward the best ones. And in return, grant schools flexibility: to teach with creativity and passion; to stop teaching to the test and to replace teachers who just aren’t helping kids learn. That’s a bargain worth making.
While some could interpret this language as attacking the contract clauses of teacher union contracts, American Federation of Teachers President Randi Weingarten did not see this as an anti-teacher union statement, telling In These Times, “I heard a different tone about what teachers and students need—as well as what he has always said about teacher accountability.” Weingarten further praised the speech, saying that it was about “fighting for the middle class, for economic fairness, taking on the banks, telling others to stop bashing and leading with accountability—it’s an important populist message for the times we are in. I think the president deserves that acknowledgement.”
The only other time that Obama referenced an event involving a union was in speaking about the role of workers (represented by the United Auto Workers union) in helping to revive the auto industry. Obama said: “In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number one automaker.”
While praising GM’s return to profitability, Obama did not mention how, despite the auto industry returning to profitability, the industry has done nothing to eliminate a two-tier wage system that was implemented as part of the bailout. The UAW did not return request for comment on the president’s section of the speech.
“There is little or nothing in this speech to oppose what most employers are doing; cutting jobs, busting unions, slashing wages, liquidating benefits, and running roughshod over workers in every way possible,” said UE Political Action Director Chris Townsend. “As for workers, we are forced to work for a poverty existence at a “competitive wage” until we tipple into the grave. How inspiring is that?”
Kim Bobo, executive director of Interfaith Worker Justice, criticized the speech for failing to emphasize the importance of protecting living standards and workers’ rights. “We need a national jobs policy that creates enough jobs for all those who are able to work, raises core standards around living wages and family-supporting benefits, stops and deters wage theft, and ensures that public and private sector workers have the right to collective bargaining,” she said in a statement Wednesday.
But despite the lack of positive references to the role of unions and organized labor, the speech did receive good reviews for Obama’s calls to renew America’s manufacturing sector, enforce trade laws more fairly, crack down on Wall Street, and reform tax laws to tax wealthy people at higher rates. (Billionaire Warren Buffet’s secretary was actually present for the speech to symbolize America’s dysfunctional tax code; her boss actually pays a lower tax rate overall than she does.) Specifically, he called for the creation of a “Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China.”
AFL-CIO President Richard Trumka said:
President Obama’s speech tonight shows that he has listened to the single mom working two jobs to get by, to the out-of-work construction worker, to the retired factory worker, to the student serving coffee to help pay for college. …And tonight he made clear that the era of the 1% getting rich by looting the economy, rather than creating jobs, is over—what a contrast to the vision presented by presidential candidates squabbling over how much further to cut the taxes of the 1%.
The call for reviewing manufacturing and cracking down on unfair trade practices drew particular praise from United Steelworkers (USW) President Leo Gerard. He said:
President Obama has listened to us as American workers and laid out a vision of the America we want and need, one that creates jobs and prosperity for us and not the 1% who have looted the economy….The President’s commitment to discourage job outsourcing and promote insourcing is a ticket to a better economy.
We especially applaud the announcement to renew his policy to get tough on trade enforcement with a new unit to bring together resources and investigators from across the government to go after unfair trade practices in countries around the world, including China.
The GOp chose Indiana Governor Mitch Daniels to deliver the party’s response to the State of the Union address. Daniels has spearheaded the effort to pass “Right-to-Work” legislation in Indiana, which would weaken private-sector unions. On its website, the AFL-CIO said the choice of Daniels sends a “clear signal the party is making attacks on working people a top priority in the 2012 elections.”
Surprisingly, though, Daniels didn’t say anything about unions. At least from my perspective last night, it was as if the massive fights for collective bargaining rights we witnessed in Wisconsin and Ohio last year (which, of course, continue in Wisconsin) never even happened.
Full disclosure: the UAW and USW are In These Times sponsors.
This blog originally appeared in inthesetimes.com on January 13, 2016. Reprinted with permission.
Mike Elk is a labor journalist whose 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. Elk has also written for the New York Times, the Washington Post, Reuters and The Nation and is currently a reporter at Politico.
Tuesday, October 20th, 2015
Have you noticed how often conservatives who disagree with a policy proposal call it a “job killer?”
They’re especially incensed about proposals to raise the federal minimum wage. They claim it will force employers to lay off workers worth hiring at the current federal minimum of $7.25 an hour but not at a higher minimum.
But as Princeton University economist Alan Krueger pointed out recently in the New York Times, “research suggests that a minimum wage set as high as $12 an hour will do more good than harm for low-wage workers.”
That’s because a higher minimum puts more money into the pockets of people who will spend it, mostly in the local economy. That spending encourages businesses to hire more workers.
Which is why many economists, like Krueger, support raising the federal minimum to $12 an hour.
What about $15 an hour?
Across America, workers at fast-food and big-box retail establishments are striking for $15. Some cities are already moving toward this goal. Bernie Sanders is advocating it. A national movement is growing for a $15 an hour minimum.
Yet economists are nervous. Krueger says a $15 an hour minimum would “put us in uncharted waters, and risk undesirable and unintended consequences” of job loss.
Yet maybe some jobs are worth risking if a strong moral case can be made for a $15 minimum.
That moral case is that no one should be working full time and still remain in poverty.
People who work full time are fulfilling their most basic social responsibility. As such, they should earn enough to live on.
A full-time worker with two kids needs at least $30,135 this year to be safely out of poverty. That’s $15 an hour for a forty-hour workweek.
Any amount below this usually requires government make up the shortfall – using tax payments from the rest of us to finance food stamps, Medicaid, housing assistance, and other kinds of help.
What about the risk of job loss? Historically, such a risk hasn’t deterred us from setting minimum work standards based on public morality.
The original child labor laws that went into effect in many states at turn of last century were opposed by business groups that argued such standards would raise the costs of business and force employers to lay off large numbers of young workers.
But America decided the employment of young children was morally wrong.
The safety laws enacted in the wake of the tragic Triangle Shirt Waste Factory fire of 1911, which killed 145 workers, were also deemed “job killers.”
“We are of the opinion that if the present recommendations [for stricter building codes] are insisted upon…factories will be driven from the city,”argued New York’s association of realtors.
But New York and hundreds of other cities enacted them nonetheless because they viewed unsafe sweatshops morally objectionable.
It was the same with the 1938 legislation mandating a forty-hour workweek with time-and-a-half for overtime, along with the first national minimum wage.
“It will destroy small industry,” predicted Georgia Congressman Edward Cox. It’s “a solution of this problem which is utterly impractical and in operation would be much more destructive than constructive to the very purposes which it is designed to serve,” charged Rep. Arthur Phillip Lamneck of Ohio.
America enacted fair labor standards anyway because it was the right thing to do.
Over the years America has decided that certain kinds of jobs – jobs that were done by children, or were unsafe, or required people to work too many hours, or below poverty wages – offend our sense of decency.
So we’ve raised standards and lost such jobs. In effect, we’ve decided such jobs aren’t worth keeping.
Even if a $15 an hour minimum wage risks job losses, it is still the right thing to do.
This post appeared in Our Future on October 19, 2015. Originally posted at RobertReich.org. Reprinted with permission.
About the Author: Robert B. Reich, Chancellor’s Professor of Public Policy at the University of California at Berkeley and Senior Fellow at the Blum Center for Developing Economies, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the twentieth century.
Tuesday, September 29th, 2015
Four in five Americans thinks companies should be required to “offer paid leave to parents of new children and employees caring for sick family members.” So trust a Republican to come up with a paid family leave policy that doesn’t require anything and benefits business, not workers. Marco Rubio is the one Republican presidential candidate with any plan on this issue, and experts say it wouldn’t expand paid leave to many workers who don’t already have it.
Rubio would give tax credits to companies that offer paid leave. The problem is, such tax credits already exist for other things the government wants to encourage companies to do—and we know that it doesn’t work very well.
The government offers tax credits to encourage companies to do other things, like hiring veterans or people with disabilities and offering on-site child care. But there is little evidence that these credits significantly change employers’ behavior. Employer-sponsored child care is still extremely rare, for instance, and a subsidy for firms that hire various disadvantaged workers has been found to have little effect on their employment.
Rubio’s plan would be a nice reward for companies that are already doing the right thing by offering paid leave, but it’s unlikely to mean paid leave for workers who don’t already have it, and that means once again leaving low-income women in the dust. Hillary Clinton policy adviser Ann O’Leary writes that:
The companies that don’t offer [paid leave] tend to have large and mainly lower-skilled workforces. But that’s the rub?—?the people who need paid leave the most are the very people that Rubio’s plan ignores. While everyone should have access to paid family leave, it’s particularly vital for, say, a mother working at a low wage, because she’ll likely have less in savings. […]Consider this fact: In the early 1960s, just over 16 percent of women with less than a high school education had access to paid maternity leave after the birth of their first child. Today that number has not moved at all?—?still only 16 percent of our least educated workers have paid family leave.
But for women with a college degree or more, in the early 1960s, 14 percent had access to paid leave and today that number is over 64 percent. We have literally not moved the needle at all to help our least empowered workers have access to paid maternal leave.
We need policies that actually change this, expanding paid family leave to people who cannot afford to miss a week of pay, not policies that exist to get attention for Marco Rubio as the lone Republican talking about paid leave.
This blog was originally posted on Daily Kos on September 28, 2015. Reprinted with permission.
Monday, July 6th, 2015
The June Bureau of Labor Statistics jobs report shows continued growth — 223,000 new jobs added with the official unemployment rate declining to 5.3%. Jobs growth remains steady — rising for 57 straight months, now setting a new record each month – but slow, lagging previous recoveries. The decline in the unemployment rate was largely due to 432,000 people leaving the labor force, reversing the increase that took place in May.
The headline unemployment figure is always misleading. Nearly 17 million people are still in need of full-time work. Long-term unemployment has declined, but remains higher than before the great recession. The employment-population ratio has also not recovered, remaining at 59.3%, marginally lower than a year ago. The portion of the working age population that is employed or wants a job, the labor force participation rate, declined last month and is lower than a year ago. This is not a picture of robust growth.
The BLS reports are important largely as signposts for the Federal Reserve and its pending decision on when to raise interest rates. Fed Chair Janet Yellen sensibly has been focused on disappointing wage growth and looking for “additional strength in the labor market.” She won’t find much that is encouraging in this report. In this month’s report, hourly wages showed no growth, with the yearly average up barely 2%, despite hikes in the minimum wage by more and more cities and states and more and more companies. Average hours worked remained steady.
Speculation is that the Federal Reserve is headed towards beginning to wage interest rates in September. Higher interest rates will be a drag on growth, jobs and thus wages. The Fed would be well advised to wait until more workers find jobs, and the greater demand for workers is reflected in continuing rising wages.
Government employment showed no increase. The US Congress continues to block any investment to rebuild our decrepit infrastructure at a time of record low interest rates. With the US able to borrow for virtually nothing, an investment in infrastructure, as Larry Summers argues, would pay for itself, with even a minimum return in efficiency. No business leader with a whit of sense would refuse to grasp this opportunity. Perhaps Donald Trump who has built his fortune by making far riskier bets with borrowed money could explain this to his colleagues.
Manufacturing employment showed little change, adding 4,000 jobs. For the president to meet his pledge of adding 1 million manufacturing jobs in his second term, he would have to average over 32,000 a month. This seems less and less likely, as manufacturing is weakened by our rising trade deficits, resulting from the strong dollar and our perverse trade policies that the president is intent on extending. The economy has gained only 38,000 manufacturing jobs in the first six months of this year.
The economy continues to add jobs, which is an indisputably good thing. But the pace is slow, and little of the recovery is reaching most Americans. Surveys show that Americans are growing more optimistic about the economy. This is reflected in rising non-revolving consumer credit – significantly student and car loans – which is outpacing after-tax income growth. If the Fed raises interest rates, these debts will grow more costly, putting a crimp on consumer demand. Again, with the Congress refusing to act sensibly, the Fed has every reason to wait until wages are rising and more Americans are working before starting to put on the brakes.
This blog was originally posted on Our Future on July 2, 2015. Reprinted with permission.
About the Author: The author’s name is Robert Borosage. Robert L. Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America. Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post,Tthe New York Times and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).
Tuesday, November 11th, 2014
The latest jobs report from the Bureau of Labor Statistics confirms what voters felt when they went to the polls Tuesday: Job growth continues slowly but inadequately, built on a weak foundation of weak wage growth and low labor force participation.
There were 214,000 new jobs created in October, the report said, with the unemployment rate at 5.8 percent. It’s enough to prompt optimistic headlines, but as we’ve said repeatedly, this is well under the rate of growth we really need to make workers whole after the damage done by the 2008 recession. We’ve been living with unemployment above 5.8 percent since August 2008 – more than six years.
We still have an economy in which 32 percent of the unemployed have been out of work for more than 26 weeks – that’s almost 3 million people who the job market still does not have room to accommodate. The labor-force participation rate remains at a historic low, under 63 percent. Job growth continues to be concentrated in low-wage service jobs, with only modest increases in manufacturing, construction and other blue-collar occupations. Public-sector job growth barely budged upward.
Wage growth year-over-year remains stuck at about 2 percent, which in effect is virtually no growth at all when inflation is taken into account. Wages should be growing at a rate of 3.5 percent annually to remain consistent with the Federal Reserve’s 2 percent inflation target, so there is plenty of room to raise wages without raising fears of inflation.
This is the economic climate that drove voter anger and frustration Tuesday. It motivated voters to approve minimum-wage-increase referendums whenever they were on the ballot, even as they voted out Democrats who support a minimum wage increase but did not present a bold vision for how to rebuild middle-class prosperity.
Here’s where the tragedy of Tuesday’s election results come into sharp relief. Republicans were more successful than Democrats in tapping into voters’ economic anxiety, even with their record of blocking the policy changes needed to address the causes of that anxiety.
A major infrastructure investment program, done while borrowing costs are near zero, would have bolstered construction, manufacturing and other higher-age sectors. But that effort has now been held hostage to a deal to let corporations off the hook that have stashed profits overseas to avoid corporate taxes. Now that Republicans control the Senate as well as the House, we will see that deal go forward as a bipartisan “compromise” to show that Washington can “get things done.” Never mind that by any reasonable standard letting the nation’s biggest corporations keep billions of their ill-gotten gains from shifting profits overseas is too high a price to pay for the trickle of extra dollars that would be yielded for infrastructure.
There is even less of a chance that a Republican-controlled Congress, believing that every economic challenge is a nail that requires the hammer of top-end tax cuts and government spending cuts, will send increased state and local funds to the nation’s pockets of high unemployment. The Economic Policy Institute released a chart this week that showed that every state but two has shown a decline in the percentage of the working-age population with a job. The drop has been 3 percent nationally, and 28 states have percentages below the national average. Four states – Georgia, Kentucky, New Mexico and Arkansas – have declines that more than double the national average.
That shows how in so many ways, what gains there are in the economy are not broadly shared. This will not be fixed, as Republicans are saying, by repealing the Affordable Care Act, building the Keystone XL pipeline, and by cutting corporate taxes. We need to invest in infrastructure, clean energy, education from preschool to affordable college, and in the communities that are always left behind in a you’re-on-your-own economic climate. Voters who in frustration voted out Democrats who failed to present a vision for how this can be done will now have to join a movement to ensure that Washington and the nation cannot duck these issues in the months and years ahead.
This blog originally appeared in Ourfuture.org on November 7, 2014. Reprinted with permission. http://ourfuture.org/20141107/jobs-report-under-the-sunny-headline-deep-roots-of-discontent.
About the author: Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.
Friday, August 9th, 2013
What started out last fall as a one-day walkout at fast-food restaurants to protest poverty-level wages and stand up for basic human dignity has transformed into a movement that has captured the public interest.
I’ve been privileged, especially in recent weeks, to talk to institutional partners, policymakers and media about why low-wage workers across the country are risking their jobs and forgoing a much-needed day’s pay to work toward a better future for themselves and their families. We will be better off when hardworking people have enough money in their pockets to put back into their communities and generate more jobs, and SEIU members are proud to back these workers in their pursuit of economic justice and better lives for their families.
I traveled to New York City on Wednesday, to talk to Comedy Central host Stephen Colbert about the fast-food strikes. How in the world did this happen? I told Kendall Fells, an organizer from Fast Food Forward, it is because of the courage of the strikers, such as Shay Kerr and Shakira Campbell.
Shay has worked at McDonald’s in East Flatbush, N.Y., for six months. She earns minimum wage and, because sometimes her hours are cut for no reason, she can’t rely on a set pay every week. Since she cannot make ends meet on her wages, she has been bouncing around shelters. She’s fighting for a union so she can make a better life for herself and her 6-year-old son. Shakira is leading an action tomorrow at her store to be put back on the schedule. Their stories echo stories I’ve heard from workers all around the country.
Shakira, Shay, and many others who I have had the privilege of meeting in recent months are helping the public understand that, contrary to what some believe, these positions aren’t being filled by teenagers. Anyone who thinks they are is nostalgic for a time that no longer exists.
More than 4 million people work in the food service industry. Their average age is 28. Many of these workers have children and are trying to support a family. The median wage (including managerial staff) of $9.08 an hour still falls far below the federal poverty line for a worker lucky enough to get 40 hours a week and never have to take a sick day. According to the National Employment Law Project, low-wage jobs comprised 21 percent of recession losses, but 58 percent of recovery growth in the last few years.
This means middle-class jobs are disappearing while low-wage jobs are growing. If we simply accept this as fact, then the divide between the haves and the have-nots will only grow worse. And that is just wrong.
We cannot build a strong, equitable economy on low-paying jobs. Corporate profits are at an all-time high. McDonalds earned $5.5 billion just last year; other fast-food restaurants and retail chains are similarly profitable. They can afford to raise wages.
Americans have a long history of sticking together to fight for something better. SEIU can be proud of how we are fighting on so many fronts, from winning commonsense immigration reform, to delivering on the promise of the Affordable Care Act, to telling our elected officials to invest in vital public services, and to organizing in various sectors to make sure workers have a voice in the workplace. All of our members are involved in these campaigns to help workers strengthen and grow our union. As we do it, we know we have to reach out to the growing service sector of low-wage jobs in retail and fast food.
We are united to make a path to power for all workers; winning a just society; and leaving the world a better and more equal place for next generations to come.
This article originally appeared on SEIU blog on August 8, 2013. Reprinted with permission.
About the Author: Mary Kay Henry is the International President of the Service Employees International Union (SEIU).
Tuesday, August 6th, 2013
Whenever communities, lawmakers or activists question or criticize Walmart for the way it treats workers—the low-pay, the stores’ impact on the communities—the retail giant pulls out a well-worn script with a simple message, “Walmart creates jobs and if there’s one thing this economy needs, it’s more jobs.”
Setting aside the quality of the jobs for another day, is Walmart telling the truth? Sure doesn’t look like it, according to Salon’s Kathleen Geier, who matches Walmart’s claims against in-depth research from universities, economists, government studies and other sources. Here’s what she finds:
Contrary to Walmart’s self-glorifying mythology, the retailer is anything but a job creator—in fact, it is a huge job killer. Not only that, destroying jobs is an essential component of Walmart’s anti-worker business model.
She cites a study led by Economist David Neumark—who, by the way, has written against raising the minimum wage in a Wall Street Journal op-ed.
Using data from more than 3,000 counties, [the] results show that when a Walmart store opens, it kills an average 150 retail jobs at the county level, with each Walmart worker replacing about 1.4 retail workers. These results are robust under a variety of models and tests.
A 2009 study by Loyola University found that the opening of a Chicago Walmart store was “a wash,” destroying as many jobs as it created. According to the report, “There is no evidence that Wal-Mart sparked any significant net growth in economic activity or employment in the area.” Says Geier:
In short, when Walmart comes to town, it doesn’t “create” anything. All it does is put mom-and-pop stores out of business.
Walmart’s job-killing spree doesn’t stop at the city limits. The remains of once good jobs are scattered throughout Walmart’s entire supply chain. Its cut-throat drive for lower prices, writes Geier, squeezes suppliers to deliver goods at the lowest possible prices and that means cutting labor costs—aka jobs.
Read the full article.
Walmart’s using that specious jobs argument in its fight to block a living wage law in Washington,D.C. Find out more here.
Article originally appeared on AFL-CIO NOW on August 6, 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