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Posts Tagged ‘job creation’

Every American Should Be Guaranteed a Job. The Green New Deal Could Make That Happen.

Monday, August 12th, 2019
fed•er•al jobs guar•an•tee

noun

1. A government policy to provide a job for anyone who wants one

We’ve been talking about this for a while, right?

Yes! President Franklin D. Roosevelt proposed a “second Bill of Rights” in his 1944 State of the Union, a list of economic and social rights including “the right to a useful and remunerative job.”

“Full employment” has been the official goal of the U.S. government since 1978, with the Humphrey-Hawkins Full Employment Act following advocacy from labor groups as well as Coretta Scott King. Early versions of the bill included an actual jobs guarantee, which was cut out of the final legislation.  A jobs guarantee was also part of Jesse Jackson’s 1988 presidential platform.

Are any of this year’s presidential candidates supporting a jobs guarantee?

Several! Cory Booker (N.J.) introduced a Senate bill—co-sponsored by Elizabeth Warren (Mass.), Kamala Harris (Calif.) and Kirsten Gillibrand (N.Y.)—to create a three-year pilot program in up to 15 “high-unemployment communities” to provide jobs with at least a $15 wage.

Bernie Sanders (Vt.) arguably goes further, invoking FDR’s call for a second Bill of Rights and a full jobs guarantee.

If the point is to keep people out of poverty, why not just give people money or provide better social services?

Why not all of the above? A universal basic income is preferred by some, but there’s no need to choose just one policy to answer economic inequality. Jobs advocates argue there is plenty of fulfilling work to be done and that a jobs guarantee would strengthen the bargaining position of workers in the private sector. The Sanders campaign website, for example, suggests childcare, elder care and green infrastructure as areas to emphasize.

Speaking of which, isn’t a jobs guarantee part of the Green New Deal?

That’s right—a Green New Deal could fund millions of jobs to dramatically scale up clean energy production, build and run public transportation, and prepare communities to adapt to the realities of a warming planet. While a jobs guarantee is already popular—52% of Americans support it, according to a poll by Civis Analytics—polling commissioned by the Sunrise Movement indicates that a jobs guarantee focused on green jobs and climate protection is even more popular.

Saving the planet and ending poverty at the same time? Certainly sounds worth a try!

This article appeared originally in In these Times on August 12, 2019. Reprinted with permission.

Lifelong Wage Warrior Larry Mishel Takes On Trump’s Tax Scam

Tuesday, December 19th, 2017

Lawrence Mishel, the outgoing President of the Economic Policy Institute, is finally – after 30 years at the progressive economic research organization – seeing one of his wishes come true. Leaders in both major political parties are talking about wage stagnation, and how to address it.

“I’ve always wanted to elevate the concerns about people’s paychecks as the salient economic issue,” he said in an interview in his downtown Washington office.

The bad news is that the stagnant wages conversation is being co-opted by the Trump administration and congressional Republicans to sell a tax cut bill that will primarily benefit corporations and the wealthy.

Even so, Mishel counts that as progress. When Mishel joined the then-embryonic EPI as its first research director in 1987, all of the major right-wing think tanks denied that wage stagnation among the working class was a problem, even though EPI was among the first to show the trend unfolding, using the federal government’s deep trove of economic data. Few Democrats recognized the issue, either, Mishel said.

Today, “what’s interesting is there is so much of a dedication on the Trump team to link everything they are going to do to good jobs and wages, something that Democrats have not always done, for mysterious reasons,” Mishel said, pointing as an example the administration promoting its tax bill as “a $4,000 pay raise to workers.”

“The polls show that not many people buy it, even among Republicans, but it’s interesting that this transformation has happened,” Mishel said.

A Lifelong Passion

Mishel has had a lifelong passion for the plight of workers, going at least as far back as his Philadelphia boyhood and days at Penn State University. At Penn State, he combined that passion with a passion for economics, and after receiving advanced economics degrees from American University and the University of Wisconsin at Madison, he went to work as an economist for several unions, including the United Auto Workers; United Steelworkers; the American Federation of State, County and Municipal Employees; and the Industrial Union Department of the AFL-CIO.

When Mishel became president of EPI in 2002, the think tank was beginning to gain a reputation as being more than an advocate of pro-worker policies; it has a reputation for rigorous, fact-based scholarship and economic analysis that is relied on by a broad range of scholars, journalists and lawmakers. Its “State of Working America” reports have become a bible for people seeking to understand the economy from a Main Street point of view.

This month, Mishel hands over the reins of the EPI presidency to Thea Lee, who was previously deputy chief of staff for the AFL-CIO and a leading spokesperson for the union on issues like the impact of trade policy on workers.

But Mishel says he’s not going to disappear; he plans to continue to do research for EPI. “I want to tell the narrative about how wages were suppressed,” he said, particularly to make the point that four decades of stagnant wages for the working class is the result of, to borrow from the title of an EPI publication, “failure by design.”

An Economic Conundrum

The current state of the economy presents a classic economic conundrum. Economic textbooks say that with today’s national unemployment rate, 4.1 percent, we should see wage inflation caused by a tight labor market.

The last time the national unemployment rate averaged 4 percent, in 2000, wages rose on average about 5 percent a year, as shown in this wage tracker by the Federal Reserve Bank of Atlanta. In 2017, the wage tracker shows wage growth in 2017 hovering around 3.4 percent. EPI research further finds that this substandard wage growth has been even worse for people at the lower end of the income scale, whose wages in 2016 grew only about half as much as those of the top 20 percent.

“A true sign of a robust economy is rapid wage growth, and we don’t see wages growing that much faster than inflation, even with roughly 4 percent unemployment,” Mishel said.

Barring a last-minute surprise, passage of the Trump administration/Republican tax bill this week appears inevitable. Asked to what the American economy might look like a year after the tax bill is passed, Mishel predicted a continued stock market rise because companies, already flush with cash and finding themselves flooded with more, will continue to choose to use that cash to buy back their shares rather than invest in creating new jobs.

The big winners will be stockholders and corporate executives. Workers? Not so much. A boost in stock prices at best only benefits the third of American workers who have meaningful stock holdings, primarily retirement accounts. And even among that group of workers, the average retirement account stock portfolio is less than $100,000.

“The rising stock market is not a sign that the economy is doing well,” Mishel said. In fact, an overheated stock market, disconnected from the pulse of the Main Street economy, is prone to the kind of explosive bubble-burst that the nation saw in 2008.

What We Need Instead

What we need instead, Mishel said, is structural changes that will lead to real wage growth and improved working-class living standards. Those policies include:

• Raising the minimum wage, which Mishel said would have ripple effects beyond low-wage workers to boost the take-home pay of about 30 percent of the workforce.

• Targeting job creation in areas of high unemployment, which are disproportionately communities of color. Ultimately, government policy should be to ensure that every person who wants a job has access to a job, publicly funded if necessary. “You want a situation where employers are chasing after workers, and not workers chasing after employers. When employers are chasing after workers, wages go up,” Mishel said.

• Rebuilding the collective bargaining system. In 2016, only about one in 10 workers belonged to a labor union, a close to 50 percent decline from 1983. Nearly half of those work in the public sector. In private companies, fewer than one in 16 workers – less than 7 percent – belong to a union. If unions are stronger, Mishel said, “workers in non-union employers benefit as well, because their employers will follow the lead of the employers where collective bargaining is setting the standard. …I don’t think we will ever get robust middle-class wage growth or have the vibrant democracy that we need without reestablishing collective bargaining.”

• Assuring what Mishel calls “day-one fairness,” which would include eliminating such practices as misclassifying full-time workers so they are not eligible for health benefits or overtime, or forced arbitration and noncompete clauses that prevent workers from challenging bad worker policies or even leaving a bad employer to work for a competitor.

Having Their Moment

When Mishel is presented with the view that Donald Trump’s presidency and right-wing control of Congress has placed many of these policy goals further out of reach, he offers a contrarian view.

“The right is having its moment now,” he said, “but what has happened, though, is that the traditional stranglehold on the Democratic Party policy agenda by what you could call the corporate Democrats and their friends has been broken… The center-left policymakers have moved much closer to where the Economic Policy Institute has always been. So [with] the next wave of candidates and the next wave of legislation that comes if and when Democrats have electoral victories, we will do a lot better than we did during the Clinton era or the Obama era.”

Examples include the increased willingness of the Democratic Party mainstream to embrace universal health care, a $15 minimum wage by 2023, and support for collective bargaining for all public employees, Mishel said.

With this change, “you will see the Economic Policy Institute emerge as a much more important source of policy proposals,” Mishel predicted. “Our time will come again; there may be a Democratic House in 2019, and who knows about the Senate? Nothing is for sure, but it is not as grim as ‘the Democrats will never get back.’”

The People Can Win

In the meantime, Mishel advises people concerned about the state of the American worker to not think of the economy as “broken.”

“People walk around as if we have a bad economy,” Mishel said. “We don’t have a bad economy. It’s been built to do what it is doing, which is skimming the most for those at the top.”

That should be heartening, he went on to say, because changing the economy is “a matter of organizing and policy and mobilization.” That work won’t be easy, he said, but “the people can win.”

This blog was originally published at OurFuture.org on December 19, 2017. Reprinted with permission.

About the Author: Isaiah J. Poole is communications director of People’s Action, and 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.

We Must Create Good Jobs: Sherrod Brown Shows the Way Forward

Thursday, March 16th, 2017

February, the first full month of the Trump presidency, witnessed solid jobs growth of 235,000 with the headline unemployment rate little changed, at 4.7 percent, according to the Bureau of Labor Services monthly report.

Trump has already tweeted to claim credit for the results, but neither his plan nor his administration were in place. In fact, the February figures, a record 77th straight month of jobs growth, result from the momentum of the Obama recovery, plus whatever benefit or harm came from Trump’s bombast.

The jobs growth will harden the Federal Reserve’s resolve to raise interest rates again when its Open Market Committee meets next week. The Fed is acting in anticipation of an expected rise in inflation, that is to date not much in evidence.

By raising rates, The Fed is choosing to put a drag on the economy, even though full recovery is a long way off. Nearly 15 million people are still in need of full-time work. The share of the population in the workforce – 60 percent – is still down from 2000. If our work rate were back to where it was, about 10 million more Americans would have jobs.

Over the course of the recovery, most of the jobs created are contingent – part-time, short-term, contract work – with few benefits and often low wages. Lawrence Katz and former Obama economic advisor Alan Kreuger found that a staggering 94 percent of new jobs created from 2005 to 2015 were “alternative work,” contract or short-term or contingent.

Trump’s trickle-down agenda – to cut taxes on rich and corporations so they will create jobs – doesn’t address this reality. In fact, corporations are swimming in money, and using it increasingly to buy back shares or for mergers that do little to create jobs. Companies, contrary to Trump’s rhetoric, don’t lack capital or access to it, they lack demand for their products.

Democrats are sensibly critical of the Trump agenda, but too many fall back to a defense of Obama’s policies as the alternative. Obama helped save the economy that was in free fall when he took office, and presided over record months of jobs growth, but his policies, frustrated by Republican obstruction, did little to counter the stagnant wages, growing inequality and increasing insecurity of the modern economy.

The challenge is not simply to expose Trump’s bait and switch on the working people who voted for him, but to lay out elements of a bold alternative agenda. Bernie Sanders modeled that effort in his surging primary challenge.

Now, Senator Sherrod Brown of Ohio, who is up for re-election in 2018, has stepped  boldly into the breach. Brown has released a 77 page, meticulously documented report –Working Too Hard for Too Little – that delves into how policies and power have undermined workers, and offers the elements of an agenda to rebuild the middle class.

Brown’s central insight is a direct counter to Trump’s recycled voodoo. Trump believes that cajoling and bribing companies is the way to generate good jobs. Brown argues “It’s not businesses who drive the economy – it is workers.”   Workers with decent wages and secure jobs generate the demand that allow companies to grow and the economy to thrive. As it is, “Between 2000 and 2013, the middle class shrank in all 50 states. And that’s hurting our country. When hard work doesn’t pay off – when workers have no economic security and their paychecks don’t reflect the work they do – our economy cannot grow.”

The unemployment rate, Brown argues, isn’t the measure of a good economy. “The unemployment rate is one thing, but whether workers have jobs that pay a decent wage and provide security is another. And the unemployment rate certainly doesn’t reflect the frustration, the worry, the anger, the pain that workers feel.”

Senator Brown details how the policies that have structured globalization, technology, corporate management have undermined workers, savaged unions, and pushed companies to offshore, contract out, and cut back on jobs, wages and benefits.  He then offers a worker based alternative agenda, some old and some new.

He’d act directly to lift the floor under workers – requiring a $15.00 minimum wage, setting up a national fund to finance 12 weeks family and medical leave, mandating minimum paid vacation days and enforcing overtime pay.

He calls for empowering workers at the workplace– cracking down on labor violations, curbing wage theft, policing misuse of contract labor, and reviving the right to organize and bargain collectively. While Republicans are intent on destroying unions, Brown argues that clearly we all have a large stake in challenging the current imbalance of power in the workplace.

He details measures to help workers save for retirement – including matching grants and expansion of opportunities for part-time and short-term workers.

Then Brown offers a far more coherent plan than Trump to change corporate incentives. He’d create a “Corporate Freeloader Fee,” levied against all corporations “whose pay is so low that taxpayers are forced to subsidize their workers.” The fee would force companies to reimburse American taxpayers for the insult. He’d accompany this with offering companies that do right by the workers a tax break – if they “commit to staying in the US, to hiring in the US and to providing good wages and fair benefits for workers.”

The academic rigor – complete with footnotes – of Brown’s report is a rarity among politicians. It exposes House Speaker Paul Ryan’s much celebrated power points for the thin gruel that they are. Brown doesn’t see creating jobs as a standalone – affordable health care, better schools, access to colleges and good training, aggressive anti-trust and more are also vital.

Work unites all of us, Brown writes, citing Pope Francis: “We don’t get dignity from power nor money or culture. We get dignity from work.” With Working too Hard for Too Little, Brown has shown Americans that there is an alternative. The choice is not between Trump’s antics and more of the same. Good analysis leads to bold alternatives that offer a way out. His courage and his leadership should be applauded.

This blog originally appeared in ourfuture.org on March 10, 2017. Reprinted with permission.

Robert Borosage is a board member of both the Blue Green Alliance and Working America.  He earned a BA in political science from Michigan State University in 1966, a master’s degree in international affairs from George Washington University in 1968, and a JD from Yale Law School in 1971. Borosage then practiced law until 1974, at which time he founded the Center for National Security Studies.

Trump’s war on EPA regulations will kill jobs and a lot of people

Thursday, January 26th, 2017

romm_joe_bio

In his first days in office, President Donald Trump has launched a major effort to hurt job growth, stifle innovation, and make Americans sicker and less productive. How? By waging war on regulations, particularly those designed to protect the environment.

Trump ran on a pledge to kill regulations, and focused much of his wrath on EPA climate rules such as the Clean Power Plan. Upon assuming office, he put in place a “freeze” on all federal regulations; told business leaders “we’re going to be cutting regulation massively” by 75 percent or “maybe more”; and told car company executives that environmental regulations are “out of control.”

Yet, contrary to popular myth, regulations such as clean air and water standards do not have a net negative impact on job growth. Indeed, studies have found that the exact type of regulations Trump is targeting actually spur innovation and competitiveness.

 
Total jobs created by recent 2-term Presidents. CREDIT: Bureau of Labor Statistics via CNNMoney.

As Bureau of Labor Statistics data make clear (above chart), the recent two-term presidents who were in favor of regulation, especially environmental regulation (Obama and Clinton) created vastly more net jobs than the anti-regulation Presidents (Reagan and George W. Bush). “Businesses have added jobs at a nearly 2.5 times faster rate under Democrats than under Republicans, on average,” the U.S. Congress Joint Economic Committee reported in June.

The multiple economic benefits of regulations are well documented. First, EPA regulations make companies invest money to reduce some of the damage that results from their operation— such as polluting the air or water. That investment directly creates jobs, which generally cancel out any jobs lost by the cost imposed on the polluters.

Second, the reduction in harm itself boosts growth—cleaner air, for instance, means fewer sick days lost to asthma or cardiopulmonary illness. Here, for instance, are the health and mortality benefits of EPA Clean Air Act programs since 1990 aimed at reducing fine particles and ozone levels:

Health and mortality improvement from EPA clean air regulations since 1990, according to peer-reviewed research. Via EPA website (for now).

EPA particulate regulations (PM2.5) alone are now saving some 200,000 lives a year. And the benefits to the economy of these health improvements are enormous. The loss in economic output due to restricted activity, sickness, and death is enormous.

Indeed, the 2016 “Draft Report to Congress on the Benefits and Costs of Federal Regulations” by the Office of Management and Budget found that over the previous 10 years, EPA’s air regulations cost the economy $41 to $48 billion (in 2014$) while providing benefits worth $172 to $668 billion.

The same report found that Energy Department efficiency standards—which Trump has also frozen—cost the economy $7.5 to $10.6 billion but provided $19 to $32.6 billion in savings. And it found that the joint EPA and Transportation Department “rules pertaining to the control of greenhouse gas emissions from mobile sources and improved vehicle fuel economy” had costs of $9.5 to $18 billion and benefits worth $35 to $64 billion.

Third, beyond those direct costs and benefits, environmental regulations spur innovation. This was the key notion that Harvard Business School professor and competitiveness guru Michael Porter first suggested in the 1990s. Subsequent reviews of the economic literature on the so-called “Porter Hypothesis” confirmed he was right. Indeed, the most recent studies confirm Porter’s broader theory that “stricter regulation enhances business performance.”

It’s worth noting that a comprehensive peer-reviewed analysis of the performance of the U.S. economy in the past six decades found that “growth in total factor productivity was much faster under Democrats (1.89 percent versus 0.84 percent for Republicans).” So if anyone’s policies are hurting productivity, it would appear to be the GOP’s.

Finally, in the coming decades, the ever-worsening reality of climate change will ensure that the primary new manufacturing jobs will be green and sustainable. In 2010, the New York Times reported “in the energy sector alone, the deployment of new technologies, like wind and solar power, has the potential to support 20 million jobs by 2030 and trillions of dollars in revenue, analysts estimate.

Let meA bus moves past solar and wind farms in northwestern China. Beijing is using the kind of investments and regulations President Trump opposes to become the world leader in this fast-growing source of new jobs. CREDIT: AP Photo/Ng Han Guan.

The Paris climate deal—unanimously agreed upon by 190 nations in December 2015—means that the potential revenues generated for cleantech in the coming decades will be measured in the tens of trillions of dollars.

This potential is quickly becoming a reality. Other countries, especially China, have used regulations and investment to become leaders in clean energy technologies like solar and wind. And now China is using the same strategy with batteries and electric vehicles (EVs) to capture what is projected to be an EV market of more than 37 million in 2025.

But Trump intends to kill the very policies and regulations that would give the U.S. a piece of what is becoming the largest collection of new job-creating industries.

So, tragically, Trump’s war on regulations will not only kill countless U.S. jobs, it will kill a lot of people.

 

This post appeared originally in Think Progress on January 25, 2017. Reprinted with permission.

Dr. Joe Romm is a Fellow at American Progress and is the founding editor of Climate Progress, which New York Times columnist Tom Friedman called “the indispensable blog” and Time magazine named one of the 25 “Best Blogs of 2010.” In 2009, Rolling Stone put Romm #88 on its list of 100 “people who are reinventing America.” Time named him a “Hero of the Environment? and “The Web’s most influential climate-change blogger.” Romm was acting assistant secretary of energy for energy efficiency and renewable energy in 1997, where he oversaw $1 billion in R&D, demonstration, and deployment of low-carbon technology. He holds a Ph.D. in physics from MIT.

 

Union workers, not Donald Trump, pushed Fiat Chrysler into creating 2,000 jobs

Tuesday, January 10th, 2017

Great news: Fiat Chrysler has announced a $1 billion, 2,000-job investment in plants in Michigan and Ohio. Donald Trump didn’t quite claim credit in his predictable tweet about the news, but Reuters, for instance, reported the story with the headline “Fiat Chrysler ups the ante as automakers respond to Trump.”

Except that’s not what happened at all. In 2015 contract negotiations, the UAW pushed Fiat Chrysler to invest in American manufacturing, and got promises on that front. That led to what we’re seeing now, the Detroit News reports:

The announcement is the final phase of an industrialization plan announced in January 2016, which was a significant part of the automaker’s contract negotiations with the United Auto Workers in 2015. The plan called for the realignment of the company’s U.S. manufacturing operations to move away from cars to more-profitable Jeep and Ram products. […]

[CEO Sergio] Marchionne appeared to try and distance the announced moves from having anything to do with President-elect Donald Trump, saying they “have been under discussion with Dennis Williams and the rest of the UAW leadership for some time.”

Working people fought for this. Don’t let Donald Trump get the credit that goes to those union workers.

This article originally appeared at DailyKOS.com on January 9, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Trump falsely claims he created thousands of new jobs, and news outlets lap it up

Monday, January 2nd, 2017

It was a huge announcement. An announcement so full of winning that we may even get tired of winning.

“Because of what’s happening and the spirit and the hope,” President-elect Donald Trump told reporters on Wednesday, “I was just called by the head people at Sprint and they’re going to be bringing 5,000 jobs back to the United States.”

And just in case there’s any doubt about who deserves credit for these jobs, Trump was happy to take it. “I just spoke with the head person,” Trump claimed, “he said because of me they’re doing 5,000 jobs in this country.”

There’s just one problem. It’s not true. Or, at least, the suggestion that Trump is responsible for new, previously unannounced jobs is not true. The jobs are coming to the United States, but they are coming as part of a series of investments that were first announced in mid-October.

Sprint’s parent company, SoftBank, said in October that it would partner with a Saudi sovereign wealth fund to invest about $100 billion in the tech sector. On December 6, SoftBank CEO Masayoshi Son told Trump the company would use some of these funds to bring 50,000 jobs to the United States. Trump promptly announced as much on Twitter.


SoftBank confirmed to the tech news site Engadget that the 5,000 jobs Trump took credit for on Wednesday are “part of the 50,000 jobs that Masa previously announced.” The company added that the 50,000 jobs “will be a combination of newly created jobs and bringing some existing jobs back to the U.S.”

Yet, despite the fact that the 5,000 jobs Trump took credit for on Wednesday were already announced earlier this month and are part of a series of investments that were themselves announced in mid-October, numerous headlines presented Trump’s claim as fact.

Media critic Oliver Willis rounded up some of the headlines that emerged shortly after Trump’s attempt to take credit for 5,000 new jobs. Here, for example, is USAToday:

And here is CNN:

And here’s the Washington Post:

In fairness, some of these outlets reported additional details about what actually happened in the body of their stories, although the many news consumers who only read these headlines would still be mislead. Some outlets also published far more informative headlines. Here, for example, is Bloomberg:

Sprint, it should be noted, helped Trump push a favorable line. “We are excited to work with President-Elect Trump and his Administration to do our part to drive economic growth and create jobs in the U.S.,” Sprint CEO Marcelo Claure said in a statement included in that release.

It’s also worth noting that Sprint has an incentive to help Trump use already-announced news to bolster his approval ratings. The company attempted a merger with its rival T-Mobile, but abandoned that effort in 2014 due to antitrust issues raised by the Federal Communications Commission.

After Trump takes power, however, Sprint could attempt to revive this effort under the new administration.

This blog originally appeared in ThinkProgress.org on December 29, 2016. Reprinted with permission.

Ian Millhiser is the Justice Editor at ThinkProgress. He is a skeptic of the Supreme Court, hater of Samuel Alito, and a constitutional lawyer of ill repute. Contact him at  imillhiser@thinkprogress.org.

This week in the war on workers: SoftBank investment is not necessarily something to look forward to

Monday, December 19th, 2016

 

Donald Trump’s claim that, because of him, SoftBank would be investing $50 billion in the U.S. and creating 50,000 jobs was greeted somewhat less credulously than his Carrier claims. But it’s still worth an extra look at the details. It’s not just that SoftBank had already planned a major investment fund before the election:

Worse yet, this deal is lose, lose, lose for the domestic economy. First, this inflow of foreign capital will bid up the U.S. dollar, which will reduce the competitiveness of U.S. manufacturing by making imports cheaper and exports more expensive. This will increase the U.S. trade deficit and reduce employment in U.S. manufacturing. The U.S. dollar has gained about 25 percent in the past two-and-a-half years, and one-fifth of that increase has occurred since the election. As a result, the trade deficit in manufactured goods increased sharply in 2015 and is poised for another increase after the recent run-up in the dollar. Meanwhile, the United States has lost 78,000 manufacturing jobs since the first of the year due, in part, to the rising trade deficit.

Second, foreign investment in the U.S. economy is dominated by foreign purchases of existing U.S. companies. Between 1990 and 2005, foreign multinational companies (MNCs) acquired or established domestic subsidiaries that employed 5.25 million U.S. employees. The vast majority (94 percent) of jobs associated with those investments were in existing firms acquired by foreign MNCs. However, 4 million of those jobs disappeared through layoffs or divestiture of part or all of those companies […]

SoftBank provides a clear example of plans to acquire and merge existing U.S. businesses.

This article originally appeared at DailyKOS.com on December 17, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Coal Communities Ask Trump To Honor His Promises

Friday, December 16th, 2016

Coal miners, their communities and Faith groups are calling on President-presumed-Elect Donald Trump to honor his campaign promise to help coal workers. In an “Open Letter to President-Elect Donald Trump from coal miners,” hundreds of coal miners from Appalachia to Western coal lands asked for help for coal communities across the country.

They want Trump to take action to make sure coal CEOs and companies keep promises to restore the landscape and local environments by “reclaiming” the old mines, which would mean jobs in coal communities. They also asked Trump to protect the pension and health benefits they were promised. The companies and CEOs made millions from the mines and should not be allowed leave behind a devastated environment and ruined communities.

The letter was organized by Interfaith Worker Justice (IWJ), a network of Faith groups and worker centers working “to mobilize people of faith and work advocates in support of economic justice and worker rights at the local, state and national levels.” It asks Trump to stop coal CEOs and companies from abandoning their responsibility to clean up old mines.

The letters asks Trump to, “Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.”

Please visit the website Help Coal Workers to read stories from coal workers, read the letter and sign a petition asking Trump to honor his promises.

For example, one of those stories:

“I worked in the mines for 25 years until I had an accident and could not work anymore,” said Charles E. Boyd of McCalla, Alabama. “I am on disability due to my work injury. I also have black lung. My pension and health benefits was promised to coal miners by our government. Please keep the promise.”

The Open Letter to President-Elect Donald Trump from coal miners:

Dear Mr. President-Elect Trump,

Dear Congressman Zinke, nominee for Secretary of the Department of the Interior,

Anybody who works on American coal mines knows that the industry is rapidly changing. Mines are closing, coal companies are declaring bankruptcy, and many of us are losing our jobs and our livelihoods. For some of us, these are the only jobs that we’ve ever known – once assured of a lifelong and stable career with good pay and a community in which to raise a family. No more.

We all have strong opinions about why our industry is suffering: which politicians or whose agenda is to blame. Regardless of politics, the bottom line is that we need to take care of our brothers and sisters who are facing uncertain times.

That means ensuring that coal companies follow through on their commitments to coal miners across the country. As you take action to revitalize the coal industry, we urge you and Congressman Zinke to do everything possible to hold true to your promise on the campaign trail that you are beholden to “no special interest. My only interest is you, the American people.”

Here’s how the Trump Administration can be a champion for coal mining communities in crisis:

Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.

Through bankruptcy proceedings, we have learned that several companies are working to drastically reduce their financial and legal responsibility to reclaim mined land.

Any new or expanded coal leasing should be in concert with the strongest possible assurances that coal companies will honor their obligations to communities to create jobs by reclaiming and rehabilitating mined land.

Work with Congress to increase revenue and funding for communities as well as programs that support local economies.

There are a number of pieces of legislation on the table in Congress that would invest in coal communities, fund reclamation and economic revitalization projects, and protect promised benefits to coal miners and their families.

We urge you to work with Congress to pass these laws if they do not move forward before your inauguration

We, the undersigned coal miners and concerned individuals from across the country, demand action that will bring relief to coal communities.

This post originally appeared on ourfuture.org on December 15, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

 

The letter from Carrier to its employees that Donald Trump doesn’t want you to read

Monday, December 5th, 2016

aaron ruparOn Thursday, President-elect Donald Trump traveled to the Carrier factory in Indianapolis, Indiana to tout the deal he helped orchestrate to keep about 800 manufacturing jobs in the United States in exchange for state and federal incentives, including $7 million from Indiana.

“Companies are not going to leave the United States anymore without consequences. Not going to happen. It’s not going to happen, I’ll tell you right now,” Trump said during a speech at the factory.

What Trump didn’t mention, either then or during a subsequent “thank you” rally later Thursday in Cincinnati, is that the deal he and Vice President-elect Mike Pence helped broker won’t prevent Carrier from outsourcing more jobs than are being saved in Indiana. The company will keep about 800 jobs at the Indianapolis plant, but will still move 600 jobs from Indianapolis to Mexico. Another 700 jobs are being moved to Mexico from a separate factory in Huntington, Indiana, which will be closed.

In sum, about 800 American jobs are being saved, but another 1,300 are disappearing. Those painful details were acknowledged in a letter Carrier sent to affected workers on Thursday that was posted to Twitter by Indianapolis-based journalist Rafael Sánchez.

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Trump’s deal with United Technology, the company that owns Carrier, is good news for the workers who will keep their jobs, of course. But doling out huge tax breaks and other incentives to entice companies to keep jobs in the United States is bad economics, as Trump himself acknowledged on the campaign trail when he denounced government officials for believing that providing economic incentives to corporations keeps jobs in the United States.

During a Thursday appearance on CNBC, conservative economic policy analyst Jimmy Pethokoukis went so far as to call Trump’s speech at the Carrier plant “absolutely the worst speech” about economics in more than 30 years.

“The idea that American corporations are going to have to make business decisions, not based on the fact that we’ve created an ideal environment for economic growth in the United States, but out of fear of punitive actions based on who knows what criteria exactly from a presidential administration,” Pethokoukis, a scholar with the conservative-leaning American Enterprise Institute, said. “I think that’s absolutely chilling.”

On Friday, the latest jobs numbers reinforced that Trump’s Carrier deal comes amid a long-term downturn in manufacturing jobs in the country. While a net 178,000 private and public positions were added in November and the unemployment rate fell to 4.6 percent, the lowest since August 2007, manufacturing jobs fell by 4,000. For the year, manufacturing jobs across the country have fallen by 78,000.

If the trend continues into 2017—manufacturing jobs in the country have been declining since before George W. Bush took office—Trump would need to strike roughly 100 Carrier-equivalent deals to stem the tide, at an untold cost to taxpayers.

This blog originally appeared in ThinkProgress.org on December 1, 2016. Reprinted with permission.

Aaron Rupar is a Journalist at ThinkProgress. Twitter: @atrupar. Email: arupar@americanprogress.org

This week in the war on workers: What happens if Obama's overtime expansion is reversed?

Monday, November 21st, 2016

LauraClawson

President Obama’s expansion of overtime pay goes into effect on December 1. But what happens if it gets rolled back in 2017? Here are some of the Department of Labor’s takeaways from a Congressional Budget Office report:

  1. CBO finds that reversing the rule would strip nearly 4 million workers of overtime protections. According to the report, there are nearly 4 million workers whose employers will be required to pay them overtime when they work more than 40 hours a week when the rule goes into effect.
  2. CBO finds that reversing the rule would reduce workers’ earnings while increasing the hours they work. The report finds that if the rule is reversed, the total annual earnings of all affected workers would decrease by more than $500 million in 2017. Further, these workers would earn less money while working more hours.
  3. At a time when income inequality is already of great concern, CBO finds that reversing the rule would primarily benefit people with high incomes. If the rule were reversed, affected workers, most of whom have moderate incomes, would experience a loss in earnings. These losses would be accompanied by an increase in firms’ profits, of which the vast majority (CBO estimates 85 percent) would accrue to people in the top income quintile.
  4. CBO finds that reversing the rule would not create or save jobs. The report finds no significant impact on the number of jobs in the economy.

Nearly 4 million workers.

This article originally appeared at DailyKOS.com on November 19, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

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