Object Action: The "F" Word in a Post-truth Era Opening Reception to Collect For Change Inauguration

Object Action: The "F" Word in a Post-truth Era Opening Reception to Collect For Change Inauguration
Object Action: The "F" Word in a Post-Truth Eramarks the inauguration of Collect For Change-an initiative which collaborates with artists across disciplines, offering artwork with a portion of...
Object Action: The "F" Word in a Post-Truth Eramarks the inauguration of Collect For Change-an initiative which collaborates with artists across disciplines, offering artwork with a portion of sales benefiting a charity personally selected by each artist. As a feminist response to the one-year anniversary of the current administration, the group exhibition highlights "objects" and works by female artists "objecting" to a dominant paradigm through innovative media in the feminist realm.
Featured artists Ana Teresa Fernández, Chitra Ganesh, Michelle Hartney, Angela Hennessy, Nadja Verena Marcin, Sanaz Mazinani, and Michele Pred will donate a portion of all artwork sales to Art & Abolition, The Center For Popular Democracy's Puerto Rico Rebuilding Fund, Girls Garage, Girls Inc., NARAL Pro-Choice California, Planned Parenthood, and 350.org.
Read the full article here.
Supreme Court deadlocks on immigration case
Karla Cano faces uncertainty. She had expected to qualify for deferred action under the Obama administration’s executive orders on immigration. But a tied decision by the U.S. Supreme Court...
Karla Cano faces uncertainty. She had expected to qualify for deferred action under the Obama administration’s executive orders on immigration. But a tied decision by the U.S. Supreme Court creates uncertainty for Cano and her family.
“All that is unjust about my situation will continue,” said Cano, 21, a senior at Mount Mary University and the mother of a 2-year-old son.
“I am in college so I can have a career helping others, but I cannot start a career like that without work authorization,” she said. “We just want to help this country and support our families like anyone else.”
The court on June 23 deadlocked on President Barack Obama’s executive actions taken to shield millions living in the United States from deportation.
The 4–4 tie means the next president and a new Congress will determine any change in U.S. immigration policy. The president said the court’s deadlock “takes us further from the country we aspire to be.”
Hillary Clinton, the Democratic Party’s presumptive nominee for president, called the court ruling unacceptable and pledged to “do everything possible under the law to go further to protect families.”
The dispute before the eight justices — the case was heard in April, after the death of Antonin Scalia — was over the legality of the administration’s orders creating “deferred action for parents of Americans and lawful permanent residents” or DAPA and expanding “deferred action for childhood arrivals” or DACA.
Basically the actions would have provided protection from deportation and three-year work permits to about 5 million undocumented parents of U.S. citizens and lawful permanent residents, as well as undocumented people who came to the United States before the age of 16.
The president announced the orders in 2014 and, soon after, they were challenged by 26 states led by Republican governors, including Wisconsin Gov. Scott Walker.
Federal district and appeals courts sided with the states and said the executive office lacked the authority to issue orders shielding immigrants from deportation.
The high court tie means the appeals court ruling stands. But the ruling in United States v. Texas did not set any landmark standards in the dispute over immigration.
The U.S. Justice Department brought the case to the Supreme Court, seeking to overturn the appeals court decision.
The American Civil Liberties Union was among the many groups to file a friend-of-the-court brief in the case.
Cecillia Wang, director of the ACLU’s Immigrants’ Rights Project, said, the “4–4 tie has a profound impact on millions of American families whose lives will remain in limbo and who will now continue the fight. In setting the DAPA guidelines, President Obama exercised the same prosecutorial discretion his predecessors have wielded without controversy and ultimately the courts should hold that the action was lawful.”
Reaction from the U.S. progressive community was swift and compassionate.
“This split decision deals a severe blow to millions of immigrant families who have already been waiting more than 18 months for the DAPA and DACA programs to be implemented,” said Alianza Americas’ executive director Oscar Chacón. “The cold fact is that millions of parents and children will go to bed tonight knowing once again that their families could be torn apart at any moment.”
At the Center for Popular Democracy, co-executive director Ana Maria Archila said, “If the highest court in the land cannot find a majority for justice and compassion, there is something truly broken in our system of laws, checks and balances.”
In Wisconsin, Voces de la Frontera held news conferences in Green Bay, Madison and in Milwaukee. LULAC, Centro Hispano and the Southside Organizing Committee also were involved.
“This is very sad for me,” said Jose Flores, a factory worker, father of four and also the president of Voces de la Frontera. “I have been waiting and fighting for reform like DAPA for years. But we are not giving up. I refuse ... to shrink back into the shadows.”
Cano, a member of Voces de la Frontera, said, “I am not giving up on the struggle. We need more people to get involved in the upcoming elections, because this decision shows the importance of both the presidential and U.S. congressional elections and whom the next president will nominate to the U.S. Supreme Court.”
BY LISA NEFF
Source
May Day Protesters Gather Outside JP Morgan Chase HQ in Manhattan

May Day Protesters Gather Outside JP Morgan Chase HQ in Manhattan
New Yorkers kicked off May Day protests early on May 1, marching from Bryant Park to the JP Morgan Chase headquarters in Manhattan, where they attempted to block the entrance. Over a dozen arrests were made, according to local reports.
The protesters outside JP Morgan were joined by others outside the Wells Fargo building as part of a larger Take on Corporate Backers of Hate March, targeting the corporate entities for financing Immigration and Customs Enforcement (ICE) detention centers and private prisons across the country.
Read full article here.
Companies End On-Call Scheduling After NY Attorney General’s Letter
Gap Inc. is the latest retailer to end its practice of requiring workers to remain on-call for short-notice shifts following an inquiry from New York’s attorney general.
A spokeswoman for...
Gap Inc. is the latest retailer to end its practice of requiring workers to remain on-call for short-notice shifts following an inquiry from New York’s attorney general.
A spokeswoman for the San Francisco-based retailer says the decision also applies to Gap’s other brands, including Banana Republic, Old Navy and Athleta and was part of an effort to “improve scheduling stability and flexibility” for workers.
Spokeswoman Laura Wilkinson says the change will apply “across our global organization” and that the company is working to establish scheduling systems giving store employees at least 10 to 14 days’ notice.
Attorney General Eric Schneiderman’s office sent letters to Gap and 12 other retailers earlier this year questioning them about on-call scheduling, which required hourly workers to stay on-call for shifts set the night before or the same day, giving them little time to arrange for child care or work other jobs.
“Workers deserve stable and reliable work schedules, and I commend Gap for taking an important step to make their employees’ schedules fairer and more predictable,” said Schneiderman, a Democrat.
Abercrombie & Fitch and Victoria’s Secret also ended the practice this summer.
Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, said in a statement that Gap’s decision reflects not only Schneiderman’s concerns but also a new ordinance in San Francisco requiring chain retailers to set schedules in advance. Similar proposals are pending before other city governments.
“Working people in hourly jobs are starting to speak out about the impact that employers’ scheduling practices has on their lives,” Gleason said in a statement.
Source: CBS DC
Advocacy group calls for more oversight of California charter school spending

Advocacy group calls for more oversight of California charter school spending
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy...
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” reported over $200 million lost to fraud, corruption and mismanagement in charter schools.
Read the full article here.
Letter to the Editor: Proposed Legislation in Maryland Would Sacrifice Standards of Charter Schools
Washington Post - March 3, 2015, by Anne Kaiser - I share The Post’s interest in a healthy environment for charter schools in Maryland, as expressed in the Feb. 25 editorial “ Give charter schools a chance.” However, this goal cannot be achieved unless we maintain the high standards for accountability, equity and quality required by Maryland’s charter school law.Over the past decade, I have seen troubling results in states that lowered their standards. A 2014 Center for Popular Democracy report found $100 million in fraud, waste and abuse by charter schools in 14 states and the District. The National Education Policy Center found that charter school teachers face significantly lower compensation and poorer working conditions, leading to high turnover rates and the hiring of unqualified teachers. Michigan, Ohio, Delaware and Pennsylvania have seen wasted taxpayer dollars in their race to expand charter schools.Gov. Larry Hogan’s (R) legislation follows in these flawed footsteps by granting a disproportionate share of funding to charter schools at the expense of traditional public schools, permitting uncertified teachers, allowing union-busting by charter school operators and weakening safeguards for accountability. I will work hard through the legislative process to remove these harmful provisions so that we support charters without sacrificing standards.Anne Kaiser, Annapolis The writer, a Democrat, represents District 14 in the Maryland House, where she is majority leader.Source
‘We’ll Give You Whatever We Have:’ How Organizations Are Fighting to Bring Relief to Puerto Rico

‘We’ll Give You Whatever We Have:’ How Organizations Are Fighting to Bring Relief to Puerto Rico
The sixth-floor windows wouldn’t hold in the winds, they knew. So the doctors and staff at the University Pediatric Hospital in San Juan moved the entire neonatal intensive-care unit, the NICU,...
The sixth-floor windows wouldn’t hold in the winds, they knew. So the doctors and staff at the University Pediatric Hospital in San Juan moved the entire neonatal intensive-care unit, the NICU, down three floors as Hurricane Maria closed in. The predicted damage came. Windows cracked, water poured in. The air-conditioning units blew away.
Read the full article here.
5 Things to Know about Billionaire Betsy DeVos, Trump Education Choice

5 Things to Know about Billionaire Betsy DeVos, Trump Education Choice
Billionaire Betsy DeVos, a major GOP funder and party activist from Michigan, has been tapped by Donald Trump to become the Secretary of the U.S. Department of Education next year.
Many...
Billionaire Betsy DeVos, a major GOP funder and party activist from Michigan, has been tapped by Donald Trump to become the Secretary of the U.S. Department of Education next year.
Many have decried the choice as a looming disaster for public schools in America, with NEA president Lily Eskelsen Garcia observing that DeVos' "efforts over the years have done more to undermine public education than support students. She has lobbied for failed schemes, like vouchers--which take away funding and local control from our public schools--to fund private schools at taxpayers' expense."
Randi Weingarten, the president of AFT, stated that "Betsy DeVos is everything Donald Trump said is wrong in America--an ultra-wealthy heiress who uses her money to game the system and push a special-interest agenda that is opposed by the majority of voters. Installing her in the Department of Education is the opposite of Trump's promise to drain the swamp."
The choice signals the President-elect's intention to put the expansion of taxpayer-funded charter schools and vouchers for private and religious schools at the center of his national agenda on education.
Through her riches, Betsy DeVos has had a disproportionate influence on national and state policies affecting millions of Americans, helping to force through changes to the law that gut the rights of workers and redirect American tax dollars to fund risky charter school experiments that have repeatedly failed for America's children.
She has also applauded efforts to gut election laws that are designed to prevent corruption, recasting the issue of money in politics as free speech and her right to speak "as loudly as we please." (Her remarks about this and her praise for Tom DeLay's "honesty" begin at the 52-minute mark here.)
Here are five facts to get smart about who Betsy DeVos is and what her nomination could mean for America.
1. Betsy DeVos Refused to Send Her Children to Public Schools in Grand Rapids, Michigan
Betsy and her husband Dick DeVos, Jr., have four children they raised in the prosperous town of Ada, Michigan, which is the headquarters of AmWay, the multi-level marketing company that made the DeVos family billionaires. She is also an heir to the Prince Corporation fortune from sun visors and other car parts.
The public elementary, middle, and high school in Ada, a suburb of Grand Rapids, Michigan, are highly ranked, but she did not send her children to public schools. She has said that her two daughters were home-schooled for a number of years.
Instead of sending their children to public schools, for nearly three decades, Betsy and Dick have focused on pushing vouchers for private schools and bankrolling politicians to advance their agenda to redirect American tax dollars away from truly public schools.
2. She Retained a Convicted Felon to Lobby for Her Wish List of Education Reforms (and There Are Other Scandals)
In 2004, Betsy DeVos hired Scott Jensen to aid the legislative agenda of her group "American Federation for Children" (AFC), a 501(c)(4) arm of Alliance for School Choice, her 501(c)3), which push so-called education reform measures.
The problem is that in 2002, Jensen had been charged with three felonies and a misdemeanor for misconduct in office--for illegally using his office as the Republican Assembly Speaker to direct that state employees to perform campaign work at public expense. He and the others who were charged challenged the reach of state statutes in court through various appeals from 2002 through 2004, but they lost their efforts to prevent criminal trials.
But, the fact that Jensen was charged with felonies for misusing public tax dollars for partisan political purposes did not deter Betsy DeVos from hiring him in 2004 to advance her personal agenda to change American schools on behalf of AFC.
In 2005, he was tried in state court and convicted on all counts. The presiding judge told Jensen "what you did was a great wrong to the citizens of this state" because "You used your power and your influence to run an illegal campaign funding operation." The judge sentenced Jensen to five years, including 15 months of confinement along with supervised release.
That conviction and public condemnation did not end Jensen's job for Betsy DeVos. Jensen appealed his conviction, and he also lost his office in the legislature, but he had a job with DeVos.
For the next five years, Jensen was a convicted felon and DeVos' point person in pushing her school choice agenda in the states.
In 2010, after changes in the judiciary, Jensen won an appeal of his conviction and agreed to plead guilty to a misdemeanor crime to settle the case.
His conviction for that crime also had no impact on DeVos' decision to keep him on to push school choice.
Accordingly, perhaps it should come as no surprise that while all that was going on, another DeVos family school choice PAC was fined for $5.2 million by the Ohio Elections Board in 2008 for circumventing Ohio campaign finance laws. It was the largest fine for violating election laws in state history.
Do the ends justify the means for Betsy DeVos?
3. DeVos Has Pushed Policies Cloaked as "Choice" that Undermine Public Schools in Michigan and Nationwide
Her particular area of interest is the deregulation and privatization of the education system, initially through the introduction of education "vouchers."
The primary organizations that DeVos has bankrolled to carry out these policy goals are the dark money group, American Federation for Children (AFC), which is a 501(c)(4), and its affiliated 501(c)(3) nonprofit group, Alliance for School Choice. These groups have become major contributors to the right-wing corporate education reform echo chamber.
AFC describes itself as "creating an education revolution" through what is described as "school choice," via vouchers (tax dollars spent on private schools including religious schools), tax credits, and non-taxable "Education Savings Accounts."
AFC has gone through several evolutions since its 1998 founding including name changes. Some of these changes occurred after political controversies such as violations of campaign finance laws in Ohio and Wisconsin, as noted above.
AFC is and always has been a very important player in local state and national politics, helping to strongly support Republican candidates who move her education privatization agenda forward.
For example, AFC invested heavily in Wisconsin's recall elections to protect its political allies, including Republican Governor Scott Walker. Since 2010, AFC has spent at least $4.5 million on independent expenditures and issue ads in Wisconsin. This amount doesn't include the individual donations given by members of the DeVos family, or any spending on dark money groups trying to influence the elections without disclosing their donors.
AFC also aggressively promotes the school privatization agenda via the American Legislative Exchange Council (ALEC), where Jensen has represented AFC's lobbying agenda.
ALEC, describes itself as a voluntary association of state legislators but it operates as a corporate bill mill where the corporations that fund most of ALEC's operations and where corporate lobbyists and special interest representatives get an "equal voice and vote" with elected officials to approve "model" bills without the press or public present. AFC has been a "trustee" level sponsor of ALEC and is a member of ALEC's Education Task Force.
AFC works alongside ALEC to push so-called "model bills" promoting "school choice" and tax changes to subsidize private schools. Essentially, both ALEC and AFC want that national priority to be expanded funding for charter schools, which defunds truly public schools.
The nomination of Betsy DeVos to be the head of the Department of Education is a clear sign that the nation is about to embark on a dangerously extreme national experiment in the privatization of our education system that could deal a death blow to our public schools as we have known them.
There's little doubt that DeVos would use her power to undermine one of America's greatest innovations that helped make our country and economy so strong in the 20th century--quality public schools--and instead, use the idea of 'reform' to further subsidize private schools along with for-profit companies and non-profits operating charter schools.
The expansion of charters has marched forward despite the fact that fly-by-night charter operators that have committed more than $200 million dollars in fraud and waste in recent years, as documented by the Center for Popular Democracy.
Some of that expansion has occurred through for-profit companies, like K12 Inc., getting tax dollars for so-called "virtual schools," to operate as charters or as part of the public school system.
Dick DeVos, in a joint interview with Betsy DeVos, noted that he "commended to homeschoolers to consider is check out K12... Bill Bennett reviews the K12 personally, ... it's very consistent with our Christian world view..."
Like Betsy DeVos' AFC, K12 has had a seat and vote on ALEC's Education Task Force, and K12 has a seat on ALEC's corporate board. K12 has paid its CEO millions in stock in the company, whose revenues come overwhelmingly from public school budgets. CMD has called one of the leaders of K12 the highest paid "teacher" in America.
As the Center for Media and Democracy has detailed, the federal government has spent nearly $4 billion in tax dollars on the charter school experiment advanced by DeVos and other billionaires, like the Kochs and the Walton family.
CMD has also documented how charter schools in the DeVos backyard of Michigan have been embroiled in fraud and scandal, and how the state has even received federal tax dollars for charters that never even opened. That does not include the nearly $1 billion state spending that the Detroit Free Press has documented have gone to charters in that state.
4. Theocracy: She Has Pushed for Vouchers and More to Get Tax Money to Support Christian Schools
DeVos has approached the issue of education as a religious issue for her personally and as an area which she wants to change the law to reflect her personal views. A long-time partisan activist, she got involved in education "reform" in the early 1990s, around the time that her husband ran for a seat on the Michigan state Board of Education.
After he stepped down from that post, in 1993 she and her husband took on the "Education Freedom Fund," which, she has said, "I would define as ultimately Christian in its nature because in excess of 90% of the parents who receive these scholarships choose Christian schools to go to." EFF provides private funding for private school tuition, and is supported with significant donations from the DeVos family.
Why did she and here husband choose to get involved in the political battles over public education even though they did not send their kids to public schools and they financially support private Christian schools?
In a joint interview for "The Gathering," a group focused on advancing Christian ideology through philanthropy, she and her husband said they decided to focus on reforming public education and funding for private education because the "Lord led us there" and "God led us."
At that meeting, they were asked if it would not have been simpler to fund Christian schools directly rather than fund political efforts like vouchers to get more tax dollars to fund Christian schools, and she replied: "There are not enough philanthropic dollars in America to fund what is currently the need in education versus what is spent every year on education in this country... So, our desire is to confront the culture in ways that will continue to advance God's Kingdom," adding that they want "to impact our culture [in ways] that may have great Kingdom gain in the long-run by changing the way we approach things."
Her husband added: "We are working .... to allow for our Christian worldview, which for us comes from a Calvinist tradition, and to provide for a more expanded opportunity someday for all parents to be able to educate their children in a school that reflects their world view and not each day sending their child to a school that may be reflecting a world view that may be quite antithetical to the worldview they hold in their families."
When asked if they are "against public education," they have denied that charge while trying to reframe the conversation.
Betsy DeVos responded: "No, we are for good education and for having every child have an opportunity for a good education. And having grown up in families that are in the business world, we both believe that competition and choices make everyone better, and that ultimately if the system that prevails in the United States today had more competition, if there were other choices for people to make freely that all of the schools would become better as a result and that excellence would be sought in every setting. So we are very strong proponents of fundamentally changing the way we approach education ... because there are hundreds of thousands and millions of children that are forced to go every day to a school that is not meeting their needs and it's not right."
Her husband added that they are for "public education" but that's not the same as "public schools." He said public funding for education of all kinds is a "laudable concept" that should not be forced to operate through "government-run schools."
He also stated: "In my opinion, the Church has sadly retrenched from its central role in our community, to where now as we look at many communities in our country the church which ought to be in our view far more central to the life in our community has been displaced by the public school as the center for activity the center for what goes on the community...."
He added, "it is certainly our hope that churches would continue no matter what the environment whether there is government funding someday through vouchers or tax credits or some other mechanism...that more and more churches will get more and more active and engaged in education. We just can think of no better way to rebuild our families and our communities than to have that circle of church, school, and family much more tightly focused and being built on a consistent world view."
Betsy DeVos did not disagree with this statement of their shared goals and responded: "If I can just add to that very quickly, I think for many years the church in general has felt that it is important for the children of the congregation to be in the schools to make a difference but in fact I think what has happened in many cases for the last couple of decades is that the schools have impacted the kids more than the kids have impacted the schools. The young children need to have a pretty solid foundation to be able to combat the kind of influences that they are presented with on a daily basis."
(All quotes above are transcribed from their hour-long interview for "The Gathering," available here.)
5. She Bragged that Her Family Was the Biggest GOP Funder of "Soft Money," Plus They Have Funneled Millions in Dark Money
Betsy DeVos has used her family fortune to distort public policy to suit her personal agenda through direct donations and dark money because, in her own words, she wants a "return on our investment."
The DeVos family is a major funder of the Republican party. In a 1997 op-ed that DeVos wrote for the Capitol Hill newspaper Roll Call, she pointedly admitted, "my family is the largest single contributor of soft money to the national Republican party." She also said that she decided to stop taking offense at the suggestion that they were buying influence and simply concede the point, admitting "we expect a return on our investment," to make America reflect their vision for it.
DeVos has served as chairwoman of the Michigan Republican Party and was the finance chairwoman of the National Republican Senatorial Committee.
In addition to the disclosed and undisclosed political spending for controversial politicians like Tom DeLay--whom Betsy DeVos has called one of the most honest men in politics--the DeVos family through the Richard and Helen DeVos Foundation has been a major funder of many extreme socially conservative organizations such as the Family Research Council, Focus on the Family and Coral Ridge Ministries.
The DeVos family fortune funds pro-education privatization, anti-union and pro-school voucher groups.
In 2011 alone, the DeVos foundation gave $3 million to David Koch's Americans for Prosperity, a conservative group created and funded by the Koch Brothers. The DeVos Foundation gave another $2.5 million to the Koch conduit DonorsTrust from 2009 to 2010.
The DeVos foundation has also contributed millions of dollars to other right wing organizations such as the State Policy Network, Heritage Foundation, the American Enterprise Institute, FreedomWorks, Federalist Society, Mackinac Center for Public Policy, and others.
Betsy and Dick DeVos were featured at a meeting of the ALEC sibling group, the State Policy Network, which gave its highest award in 2014 to the Mackinac Center for pushing the misnamed "right to work" bill into law in Michigan, even though that think tank has claimed to the IRS that it engages in no lobbying.
Their fortune has helped to underwrite Mackinac's operations and agenda, which has included expanding powers for emergency managers to replace elected officials, which helped create the conditions for the Flint, Michigan, tragedy of kids being poisoned by lead in their water, as CMD has detailed in a history of those provision.
In 2015, DeVos money also helped fund the push for adoption of a statewide religious freedom restoration act, or RFRA law, that awards adoption agencies in Michigan the right to claim a religious exemption from having to serve LGBTQ couples. Both the Richard and Helen DeVos Foundation and the Dick and Betsy DeVos Foundation gave money to Bethany Christian Services, which lobbied hard for passage of the controversial RFRA.
Recently, the DeVos family also helped fund two pieces of extreme state legislation in Michigan. The state preemption bill, dubbed the "death star," HB 4052, passed by the legislature in 2015 bans cities from enacting their own laws governing wages and benefits. In one fell swoop, the law preempted local regulation of nine wage and benefit policies ranging from minimum wage to worker training and organizing.
Kim Haddow and CMD researchers contributed to this article.
By Lisa Graves
Source
Elizabeth Warren and more than 100 House Democrats blast lack of diversity at the Fed

Elizabeth Warren and more than 100 House Democrats blast lack of diversity at the Fed
The Federal Reserve System is one of the most important institutions in the entire American government. Its composition is also almost shockingly non-diverse, with zero African Americans or...
The Federal Reserve System is one of the most important institutions in the entire American government. Its composition is also almost shockingly non-diverse, with zero African Americans or Latinos serving on the key panel whose decisions impact job creation and the pace of economic growth, despite fairly overwhelming evidence that Fed decisions impact racial groups differently.
What's more, the bodies that choose which people sit on that non-diverse committee are themselves extremely non-diverse — locking into place a system in which the interests of African Americans, Latinos, and lower-income people more generally may be underconsidered in making decisions about unemployment, inflation, and interest rates.
All this is the subject of a letter released at noon today by a group of 111 members of the House of Representatives plus 11 senators, headlined by Elizabeth Warren, Cory Booker, Bernie Sanders, Jeff Merkley, Kirsten Gillibrand, and Al Franken, demanding that the Fed pay more attention to diversity in its ranks.
The key graf:
According to a study by the Center for Popular Democracy released in early February, 2016, 83 percent of Federal Reserve head office board members are white, and men occupy nearly three-fourths of all regional bank directorships. The lack of public representation on regional Banks’ boards is even more distressing in light of the lack of diversity among regional Bank presidents and the resulting lack of diversity on the Federal Open Market Committee (FOMC). Currently, 92 percent of regional Bank presidents are white, and not a single president is either African-American or Latino. Moreover, at present 100 percent of voting FOMC participants are white, while 83 percent of regional Bank presidents and 60 percent of voting FOMC members are men.
Progressives interested in monetary policy issues have long struggled to engage the public, activist groups, or elected officials in the topic. The focus on diversity from the left-wing Center for Popular Democracy's "Fed Up" campaign that inspired this letter represents a new tactical effort to change that.
Diversity among decision-makers is not, of course, directly a monetary policy issue. But as the letter points out, monetary policy does have significant consequences for racial disparities in employment. They cite research from the Economic Policy Institute "demonstrating that for every .91 percent reduction in unemployment for whites, black unemployment drops 1.7 percent" meaning that African Americans have more to gain from monetary policy that is more pro-growth and less inflation-averse.
Michigan Representative John Conyers who was one of the main driving forces behind the letter issued a statement observing that "Detroit and cities across the country with high minority populations have some of the highest unemployment rates and will be harmed if the Federal Reserve does not consider our needs when they make key policy decisions."
How the Federal Reserve is organized
The specifics of the letter hinge on the structure of the Federal Reserve system, which is, in a word, confusing.
The main hub of the Fed is the Board of Governors in Washington, DC, which consists of a chair, a vice chair, and five other board members. Currently there are two vacancies on the board, and all five board members are white.
In addition to the Board of Governors, there are 12 regional Federal Reserve banks, each of which has its own president and its own board of directors. Each bank's president is selected by its board, with the choice subject to confirmation by the main board. Each regional bank board itself is composed in part of members selected by the private banks of the region and in part of members selected by the central board.
Monetary policy decisions are made by what's known as the Open Market Committee. The committee is composed of the seven members of the Board of Governors (at present, again, there are two vacancies) plus the president of the New York Fed, plus four other regional bank presidents serving on a rotating basis.
The point of the letter is that all these various groups underrepresent women and massively underrepresent African Americans and Latinos.
Today's Fed neglects race
Diversity of membership is neither necessary nor sufficient to ensure that a broad range of interests is represented. But there is considerable evidence that the current not-so-diverse group of monetary policymakers is not considering the full range of interests in American society.
Narayana Kocherlakota, the former president of the Federal Reserve Bank of Minneapolis, was the only nonwhite FOMC member during his term and offered this observation back in January:
However, there is one key source of economic difference in American life that is likely underemphasized in FOMC deliberations: race. Let’s look, for example, at the most recently released transcripts for FOMC meetings, which cover the year 2010 (my first full year on the Committee). It was a challenging year for the US economy as a whole, as the unemployment rate was above 9 1/4% in every month. But it was especially challenging for African-Americans: In every month of 2010, the unemployment rate among African-Americans was at least 15 1/2%. I did a search of the hundreds of pages of the meeting transcripts. Based on that search, my conclusion is that there was no reference in the meetings to labor market conditions among African-Americans (or Black Americans).
Monetary policymakers, with their needed independence, always risk being (or at least being seen as) insufficiently empathetic to the lives of their nations’ citizens. The Federal Reserve Act has mitigated this risk in the US by ensuring that an appreciation for economic diversity is at the heart of the FOMC’s deliberations.
The details of monetary policy get pretty complicated, and there's rarely been much sign of normal people being interested in them. But issues about who is represented and whose interests get discussed are easier to understand, so you can see why this particular angle is gaining momentum in Congress.
After the release of the letter, Hillary Clinton also weighed-in on the issue via spokesman Jesse Ferguson who offered a statement:
The Federal Reserve is a vital institution for our economy and the wellbeing of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That's why Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue. Secretary Clinton will also defend the Fed's so-called dual mandate — the legal requirement that it focus on full employment as well as inflation — and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry
By Matthew Yglesias
Source
Fed Up With Being Shut Out of Federal Reserve, Activists Descend on Summit
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike would slow the economy and harm those for whom the so-called "recovery" has been...
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike would slow the economy and harm those for whom the so-called "recovery" has been weakest, including poor people, women, and communities of color.Instead, the coalition is calling on the Fed to ditch those plans and give vulnerable communities, including "tens of millions of Black Americans who are still struggling," a say in economic policy.
Fed officials have for months signaled an intent to raise short-term interest rates—which were slashed to zero in 2008 in an effort to spur spending and investment—as soon as this fall or winter. As the Washington Post reported Thursday, reported wage growth "combined with the strong hiring and a rapidly falling unemployment rate, gave the Fed hope that the economy would be able to withstand the first rate hike in nearly a decade by the end of the year."
But recent volatility in stock markets in the U.S. and globally, as well as internal policy disagreements, are leading some economic observers to predict that the Fed may now beless likely to set a rate hike at its September meeting.
Regardless, the Fed Up campaign—anchored at the Center for Popular Democracy and supported by 25 groups including the Economic Policy Institute, Demos, and the AFL-CIO—says raising interest rates would be foolhardy.
And they're in Wyoming to make that view known. According to the Huffington Post, "Fed Up's member organizations brought over 100 primarily low-income grassroots activists from across the country for the gathering. It's a dramatic increase from its inaugural visit to Jackson Hole last year, when the campaign brought a group of 10 activists."
As Sam Ross-Brown wrote at the American Prospect this month, "Fed Up's goal is a more 'pro-worker' Federal Reserve, and their first step is stopping the Fed from hiking interest rates before wages and employment have a chance to catch up with the recovery. Building on a similar action last year, the coalition began circulating a petition this week demanding the Fed keep rates low until wages and employment rise."
"There is no data supporting the Fed's push for higher interest rates," said Ady Barkan, campaign director for Fed Up. "While they toy with halting the recovery, there is a crisis of stagnant wages and a lack of good jobs."
According to Whose Recovery? A National Convening on Inequality, Race, and the Federal Reserve—the Fed Up Coalition's policy agenda for three days of teach-ins and workshops in Jackson Hole—a rate hike would slow down the economy so that there are fewer new jobs and workers have less power to negotiate raises.
"By raising interest rates, the Federal Reserve will make it more expensive for us to pay our credit card, student loan, car, and mortgage payments," the Fed Up campaign says. "That means we will have less money in our pockets to buy the goods and services we need. And that will have a terrible ripple effect throughout the economy: businesses will earn less revenue, so they will lay off workers (or avoid hiring new workers) and they won’t be able or willing to give workers any raises. With bad job prospects and stagnant wages, working families won’t earn enough to buy the goods and services they need, which starts the whole cycle again."
"If this sounds like a terrible idea," the coalition continues, "that's because it is."
The Fed Up perspective is supported by economist Joseph Stiglitz, who spoke alongside the grassroots activists at an event on Thursday. The same day, Stiglitz wrote in an LA Timesop-ed:
It is hard to see why the Fed would choose slower job and wage growth for most Americans just to protect against the theoretical risk of moderately higher inflation. But, then again, it's often hard to understand the Fed's policy choices, which tend to contribute to widening inequality in the United States.
Too often, after the end of one recession, the Fed, fearing inflation, has used monetary policy to dampen the economic expansion. Its maneuvers keep inflation low but unemployment higher than it otherwise would be, negatively affecting all workers, not just those out of a job. Workers in jobs face greater stresses, downward pressure on wages and diminished opportunities for upward career mobility. The costs of higher unemployment are borne disproportionately by people in lower-income jobs, who also tend to be disproportionately people of color and women.
Beyond the particulars of interest rates and inflation, however, the Fed Up Coalition iscalling for the central bank to facilitate more robust public engagement and greater transparency, given its position as "arguably the nation's most powerful economic actor."
"For far too long, our communities have been isolated from the Federal Reserve’s policy choices," the coalition writes in Whose Recovery? "Monetary policy has been left up to the bankers and the economists, with the public largely shut out and confounded by its seeming complexity."
Unsurprisingly, the document continues, "[t]he consequences of this disengagement have been profound. For the past 45 years, with only a few exceptions, the Federal Reserve has set policy that benefits banks and harms borrowers, helps employers and hurts workers, and privileges the voices and needs of corporate elites rather than those of America's working families."
Source: CommonDreams
4 days ago
4 days ago