Fed chairman defends interest rate hikes as Trump’s attacks show no sign of working
Fed chairman defends interest rate hikes as Trump’s attacks show no sign of working
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech. Much like Trump, they say raising rates again will harm working people’s...
Several protesters from the progressive group Fed Up stood outside the conference room where Powell delivered the speech. Much like Trump, they say raising rates again will harm working people’s chances of getting jobs and better pay. The protesters wore green T-shirts reading “The Fed wants more of us unemployed.
Read the full article here.
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a politician has for creating jobs and boosting wages, it must contend with the...
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a politician has for creating jobs and boosting wages, it must contend with the Federal Reserve’s ability to unilaterally counteract it. If the Fed decides higher wages risk inflation, they can raise interest rates and deliberately strangle economic growth, reversing the wage effect. Why come up with ways to grow the economy, then, if the Fed will react by intentionally slowing it?
The reason the Fed operates as a wet blanket on the economy has to do with who really controls the institution. If the desires of bankers and the rich outweigh the desires of laborers, then their fear of inflation (which cuts into their profits) will always take precedence over full employment. Former Fed Chair Ben Bernanke unwittingly gave a perfect example of that yesterday. Talking about how the Fed could institute “helicopter drops” of money to supplement federal spending and jump-start the economy, he stated from the outset, “no responsible government would ever literally drop money from the sky.” Who sets the boundaries of what’s “responsible” matters a great deal here.
To make the central bank work in the public interest rather than the interests of a select few, you must reform the very structure of the Federal Reserve. That’s the purpose of a new proposal from Andrew Levin, an economics professor at Dartmouth College and former advisor to Fed Chairs Ben Bernanke and Janet Yellen. In conjunction with the activist group Fed Up, which advocates for pro-worker policies at the Fed, Levin has devised a framework to make the central bank a fully public institution, with all the transparency and accountability demanded of other government entities.
It’s such an important idea that Warren Gunnels, policy director for Bernie Sanders’ presidential campaign, talked it up yesterday on a conference call with Levin. While stopping short of endorsing taking the Fed public, Gunnels did say, “Senator Sanders believes we need to made the Fed a more democratic institution, responsive to the concerns of all Americans, not a few billionaires on Wall Street.”
Right now, the Fed is a quasi-public, quasi-private hybrid, taking advantage of that status to maintain high levels of secrecy. Members of the Federal Reserve Board of Governors are nominated by the President and confirmed by the Senate, like other federal agencies. But the twelve regional Federal Reserve banks are legally owned by commercial banks in each of those regions. Banks like JPMorgan Chase and Wells Fargo hold stock in these regional banks, which happen to be one of their primary regulators.
This was how central banks worldwide operated at the time of the Fed’s founding, but that has changed. “Every other central bank around the world is fully public,” Professor Levin said, citing the Bank of Canada’s shift in the 1930s and the Bank of England in the 1940s.
Not only does having private banks own a chunk of the Fed raise questions about regulatory supervision, it implicitly privileges banker concerns over the public at large. This is particularly important because the Fed has failed as an institution consistently over the past decade.
First it failed to identify an $8 trillion housing bubble, along with increases in leverage and derivatives exposure that magnified the housing collapse into a larger crisis. Then, it failed to deploy all its policy tools and allowed a slow recovery to take hold that left millions of workers behind, as growth never caught up to its expectations. British economist Simon Wren-Lewis believes the third big mistake is happening now, through premature interest rate hikes to return to “normal” operations. “Central banks are wasting a huge amount of potential resources” by tightening too quickly, Wren-Lewis says. For everyday Americans, that translates into millions more people out of work than necessary.
So Levin’s plan would cash out the banks’ stock, and begin to remove their influence over the Fed. The board of directors of the regional Fed banks, which currently includes commercial bank executives, would be chosen through a representative process with mandates for diversity (no African-American has ever served as a regional Fed president) and a variety of viewpoints. Nobody affiliated with a financial institution overseen by the Fed could serve on any regional board.
These newly elected boards of directors would choose the regional presidents, which have a say on monetary policy decisions. That selection process would include public hearings and feedback. Under the current system, Fed presidents are re-elected through a pro forma process, with no opportunity for public engagement. Four of the 12 regional presidents were formerly executives at Goldman Sachs, and it’s hard to call that a coincidence.
In addition to breaking the conflict of interest inherent in current Fed governance, making the institution public would subject it to disclosure requirements, Freedom of Information Act requests, and external reviews that all other public agencies must submit to. Levin’s proposal calls for an annual Government Accountability Office review of Fed policies and procedures, and would allow the Fed’s inspector general new authority to investigate the regional banks.
The Levin proposal too often makes concessions to preserving central bank “independence,” like preserving the regional structure and giving Fed officials nonrenewable seven-year terms, which seems a little arbitrary. This impulse also led Democrats to reject Sen. Rand Paul’s legislation to audit the Fed earlier this year. The rhetoric of Federal Reserve “independence” conceals an institutional capture that allows it to ignore workers’ needs in favor of the wealthy. And its persistent failures and banker influence weaken the case for that independence.
Nevertheless, the heart of the proposal is to return democracy to the Fed, so the institution will edge away from its commitment to capital over labor. “The fundamental piece is that the Fed must be a public institution,” said Ady Barkan of the Fed Up Coalition.
Liberals too often ignore the Fed and the role it plays in the economy, but that’s starting to change. An obscure piece of the Federal Reserve Act statute identified by then-House staffer Matt Stoller led to a remarkable cut of billions of dollars in subsidies to big banks last year, under a Republican-majority Congress. Now the Fed Up coalition is not only rolling out this reform plan, but pushing the presidential candidates to answer whether the Fed should deliberately slow down the economy, make sure their institution looks like the general public, and reduce the power of private banks on its operations. (Bernie Sanders laid out his views on Fed reform in the New York Times last December, some of which intersect with the Fed Up proposal. Warren Gunnels, Sanders’ Policy Director, would only say that the Fed Up plan “deserves serious consideration.”)
A public, inclusive debate over Fed transparency and accountability is critical, given the importance of this institution to the economy. “These reforms would put the Fed on a path to serving the public for the next 100 years,” said Professor Levin. And that has to mean all the public, through democratic principles, not just the executives at our biggest banks.
By David Dayen
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Presentan plan para obtener la ciudanía estatal en NY El proyecto concedería a los indocumentados neoyorquinos gran parte de los derechos que otorga la ciudadanía federal
El Diario - June 16, 2014 by Juan Matossian - Nueva York - Ante la inoperancia del Congreso para aprobar una reforma migratoria federal, legisladores neoyorquinos presentaron el lunes una...
El Diario - June 16, 2014 by Juan Matossian - Nueva York - Ante la inoperancia del Congreso para aprobar una reforma migratoria federal, legisladores neoyorquinos presentaron el lunes una propuesta para conceder la ciudanía estatal a los casi 2.7 millones de indocumentados del estado de Nueva York.
El proyecto de ley “New York is Home” (Nueva York es el hogar) concedería a los indocumentados neoyorquinos gran parte de los derechos que otorga la ciudadanía federal. Entre ellos, la posibilidad de tramitar una licencia para manejar, de obtener licencia profesional para trabajar, solicitar ayudas para estudiar en la universidad, acceder a cuidado de salud a través del Medicaid estatal, o de votar en las elecciones municipales y estatales.
“El estado debe de reconocer las contribuciones que hacen los residentes no ciudadanos que cumplen las reglas, trabajan aquí y pagan sus impuestos”, dijo el senador estatalGustavo Rivera (D-Bronx), que introdujo la medida en la legislatura estatal junto al asambleísta Karim Camara (D–Brooklyn). “La inclusión de los inmigrantes en nuestro sistema político y económico nos beneficiaría, mientras su exclusión nos perjudica a todos”.
Si la ley es aprobada, los indocumentados deberían cumplir una serie de requisitos para ser elegibles para la ciudadanía estatal. Los principales serían tener una prueba de identidad, demostrar que se ha residido al menos tres años en el estado y que se han pagado los impuestos durante ese tiempo, y un compromiso de cumplir las leyes neoyorquinas y la constitución estatal.
Las posibilidades de que la propuesta salga adelante son escasas, después que Albany ha rechazado o ni siquiera ha querido votar medidas menos ambiciosas de ayuda para los inmigrantes, como el DREAM Act o la licencia de manejar para indocumentados. Además, la legislatura estatal cierra su curso legislativo esta misma semana, por lo que la ley no podrá ser votada hasta el otoño.
El otro gran objetivo que persiguen los impulsores de la propuesta, que está respaldada por una gran coalición de organizaciones pro inmigrantes como Make the Road New York o Hispanic Federation, es que otros estados también presenten sus planes paralelos y seguir metiendo presión al Congreso para que vote la reforma migratoria.
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Democrats to introduce bills to challenge arbitration system
Democrats to introduce bills to challenge arbitration system
By Nick Niedzwiadek
ALBANY — Democratic lawmakers are expected to introduce a pair of bills to counter how corporations use binding arbitration to limit their financial exposure in legal...
By Nick Niedzwiadek
ALBANY — Democratic lawmakers are expected to introduce a pair of bills to counter how corporations use binding arbitration to limit their financial exposure in legal disputes.
Consumer advocates say corporations are increasingly requiring potential employees and consumers to agree to binding arbitration in the event of a dispute as a precondition for employment or use of a product. They say that such proceedings lack transparency, put people on an uneven playing field against well-heeled corporations and can leave people with little other legal recourse.
Assemblywoman Latoya Joyner of the Bronx and Sen. Brad Hoylman of Manhattan are expected to introduce a bill that would amend state labor law to allow employees or organized labor organizations the power to bring legal proceedings against an employer for potential violations as a stand-in for the Department of Labor — independent of any private employment agreement. The state would recover a portion of the fines assessed as part of such proceedings.
Senator Jose Serrano of the Bronx and Assemblyman Brian Kavanagh of Manhattan would establish a similar process for private citizens to seek civil penalties on behalf of the state for violations of consumer protection statutes if the applicable public agency fails to pursue them due to a lack of resources.
“Too often large companies take advantage of consumers by forcing them into signing 'take-it-or-leave-it' contracts that include hidden clauses requiring forced arbitration that heavily favor businesses,” Serrano said in a statement. “My legislation will create a level playing field and give the power back to the consumers in New York State by allowing them an opportunity to fight back when they are victims of fraud."
Several of the legislators are expected to announce the legislation at a protest in Manhattan on Thursday along with New York City Comptroller Scott Stringer and Public Advocate Tish James, according to organizers. Joining them will be a number of progressive groups, including the Center for Popular Democracy, Citizen Action, Make the Road New York and New York Communities for Change. The event will coincide with the release of a report called: “Justice for Sale: How Corporations Use Forced Arbitration Agreements to Exploit Working Families.”
"Legal rights are worthless if there's no remedy when laws are broken,” Kate Hamaji, a research analyst at the Center for Popular Democracy who authored the report, said in a statement. “Forced arbitration essentially allows corporations to opt out of the justice system by creating a private parallel system that makes it prohibitively expensive to seek justice and creates incentives for arbitrators to rule in favor of companies."
The report can be found here.
Puerto Ricans call for protest in Washington
Puerto Ricans call for protest in Washington
“Convened by the Power4Puerto Rico coalition, refugees and civic and union groups have organized a day of protests - which could include acts of civil disobedience - and visits to offices of...
“Convened by the Power4Puerto Rico coalition, refugees and civic and union groups have organized a day of protests - which could include acts of civil disobedience - and visits to offices of members of Congress, to mark the six-month anniversary of the worst catastrophe the Island has faced in a century. The events, which begin on Monday evening, will be headed on Tuesday by a protest in front of the headquarters of FEMA in Washington DC, said Samy Nemir Olivares, spokesman for the Center for Popular Democracy.”
Read the full article here.
Ciudades no sólo benefician a los inmigrantes con el ID municipal
Ciudades no sólo benefician a los inmigrantes con el ID municipal
Ocho años atrás, a raíz de ataques contra la comunidad local de inmigrantes y el fracaso de la legislatura estatal en expandir el acceso a licencias de conducir, la ciudad de New Haven creó el...
Ocho años atrás, a raíz de ataques contra la comunidad local de inmigrantes y el fracaso de la legislatura estatal en expandir el acceso a licencias de conducir, la ciudad de New Haven creó el primer programa municipal del país que otorga un documento de identificación.
Poco a poco, otras ciudades siguieron el ejemplo de New Haven y reconocieron los grandes beneficios que otorga una identificación municipal, no solo para los residentes que no pueden obtener acceso a otros tipos de identificación emitida por el gobierno, sino por el bien de la vida política y económica en general.
Al principio, la adopción de programas de identificación municipal fue un proceso lento, pero se ha acelerado significativamente en el año 2015, impulsada en gran parte por el lanzamiento de la identificación municipal de la ciudad de Nueva York. El IDNYC , aprobado por el Concejo Municipal el año pasado y estrenado a inicios de este año por el alcalde Bill de Blasio, es ahora el más extenso programa de identificación municipal en el país, con más de 350,000 inscritos.
Sin la correcta identificación, una persona tal vez no pueda abrir una cuenta bancaria o cobrar un cheque, recibir atención médica en un hospital, inscribir a su hijo en la escuela, solicitar beneficios públicos, presentar una queja ante el departamento de policía, sacar libros de la biblioteca, votar en las elecciones o siquiera recoger un paquete de la oficina de correos. Con una simple medida, la identificación municipal elimina todas esas barreras.
Si bien las comunidades inmigrantes han sido una fuerza influyente al solicitar que las ciudades adopten programas de identificación municipal, los beneficiarios no se limitarán a las comunidades de inmigrantes.
La identificación municipal es una medida política de gran impacto, precisamente por su potencial de adaptarse a un amplio espectro de situaciones de la vida real. Una docena de ciudades tienen programas nuevos, y hay campañas a su favor en otras tantas. Estos programas tienen el propósito de reducir la falta de acceso a servicios municipales para jóvenes, personas sin hogar, ancianos, ex convictos y personas trasgénero.
Las ciudades también se están dando cuenta de que, para que sus programas de identificación local tengan éxito, deben ser atractivos para todos, incluso residentes que ya tienen otras formas de identificación. El uso de estos documentos de identificación otorga beneficios en negocios e instituciones culturales locales. De esta manera, las ciudades atraen una amplia gama de participantes, lo que le da mayor legitimidad a dicho documento en la comunidad.
Mientras continúe la lucha por la reforma a nivel federal, la identificación municipal es algo que los gobiernos locales pueden hacer para incluir y empoderar a los inmigrantes en su comunidad.
Programas como estos envían un mensaje de inclusión y bienvenida no solo dentro de los linderos de la ciudad donde existen, sino también externamente, hacia el resto del país y Washington DC, donde millones de vidas están en la cuerda floja, pendientes de un debate paralizado.
Source: El Diario
Immigration Advocates Applaud Mayor Bill De Blasio’s ID Card Plan
CBSNew York - February 11, 2014 - Undocumented immigrants and their supporters are cheering Mayor Bill de Blasio’s plan for creating city identification cards this year. But, as WCBS 880′s Alex...
CBSNew York - February 11, 2014 - Undocumented immigrants and their supporters are cheering Mayor Bill de Blasio’s plan for creating city identification cards this year. But, as WCBS 880′s Alex Silverman reported, they also want to make sure New York gets it right.
During his State of the City address Monday, de Blasio vowed to make municipal ID cards available to all residents in 2014 regardless of their immigration status, “so that no daughter or son of our city goes without bank accounts, leases, library cards, simply because they lack identification.”
“To all of my fellow New Yorkers who are undocumented, I say: New York City is your home, too, and we will not force any of our residents to live their lives in the shadows,” he said.
Aracely Cruz said she’s been waiting 10 years to hear a promise like de Blasio’s.
“I face fear every day,” she said. “I don’t trust anybody.”
Cruz was among the immigration reform proponents who gathered at a news conference Tuesday in lower Manhattan. Also in attendance were a mother who wants the freedom to walk into her child’s school and a day laborer who says he has spent 15 years in Queens with nothing to show to prove he’s part of the city.
City Councilman Carlos Menchaca, D-Brooklyn, head of the Immigration Committee, said members are drafting a bill to create the cards and plans to hold a hearing on the matter within the next month.
“We’re not going to wait for a federal government to give us reform,” he said.
“We’re tired of Congress failing us and failing our families,” said Linda Sarsour, executive director of the Arab American Association of New York. “And what we do in New York is we don’t wait for Congress.”
One concern advocates such as Steve Choi, executive director of the New York City Immigration Coalition, have is “we have to make sure we are ensuring trust, that the city agencies, such as the library and the police, are able to really accept these municipal ID cards without fear that folks are going to be branded somehow.”
Brittny Saunders, a lawyer with the Center for Popular Democracy, said other cities have created an incentive for citizens to also obtain the cards ”by connecting up these IDs with discounts at local businesses.”
Donna Lieberman, executive director of the New York Civil Liberties Union, agreed the ID cards should be used for all New Yorkers, not just undocumented immigrants.
“I, for one, intend to get a municipal ID because I want to use the ID that’s accessible to all New Yorkers,” she said.
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High Road Workweek Partnership Invites Employers to Adopt a Fair Workweek
High Road Workweek Partnership Invites Employers to Adopt a Fair Workweek
As more retailers declare nationwide reforms to their scheduling practices – from ending on-call scheduling to providing greater advance notice – there is increased industry interest in...
As more retailers declare nationwide reforms to their scheduling practices – from ending on-call scheduling to providing greater advance notice – there is increased industry interest in understanding the impact of difficult work schedules on employees. Leading-edge employers are also starting to quantify the down-stream effects of ever-changing work schedules and excessive reliance on part-time staff, including higher turnover, chronic absenteeism, lower productivity, and unsatisfactory customer service. Many industry leaders now recognize that predictable, stable and flexible work schedules are not just good for employees, but are essential to meeting operational, sales and growth objectives.
At the Next:Economy summit, the Center for Popular Democracy’s Fair Workweek Initiative will unveil the High Road Workweek Partnership, a groundbreaking approach to the future of work, which meaningfully incorporates employee voice and scheduling equity values into scheduling technologies and management practices.
Achieving a High Road Workweek involves three key components:
A Partnership of Core Stakeholders: With a 360 degree view from engaging diverse stakeholders, employers can assess the impact of their current scheduling practices and envision a sustainable workweek;
The High Road Workweek Pledge: Translates core business principles into specific scheduling practices that encompass: Predictability and Stability, Adequate Hours, and Employee Input and Flexibility, and Equal Opportunity and Mobility; and
Measurable Implementation and Assessment: Innovative scheduling technologies, guidance for managers, and clear metrics will facilitate implementation of the pledge, while ongoing feedback from employees and a research-based assessment will ensure that new policies deliver the intended outcomes.
The High Road Workweek Partnership delivers lasting scheduling solutions and provides a framework for employers who want to be strongly positioned in the global economy, leveraging the latest technologies and integrating corporate social responsibility into workforce management to create meaningful employment.
“Employers of our country’s hourly workforce are at a crossroads. The worrisome scheduling trends that have come to public attention are persistent and challenging issues that affect both workers and the longevity of a company’s success. Through a meaningful collaboration with employees, a commitment to core scheduling principles, and an innovative use of workforce management metrics, any business is capable of implementing a high road workweek,” says Carrie Gleason, Director of the Fair Workweek Initiative at the Center for Popular Democracy.
Professor Susan Lambert of the University of Chicago, a key architect in developing the framework for scheduling stability, says, “While this year marks tremendous progress in employers recognizing the costs that lean staffing and unpredictable scheduling has for both workers and business, employers will need to implement new metrics for their managers and find ways to incorporate more employee input to ensure these commitments to reform become consistent scheduling improvements. The High Road Workweek Partnership presents an innovative approach to helping employers implement measurable standards for fair work schedules across their operations.”
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www.populardemocracy.org The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
www.fairworkweek.org The Fair Workweek Initiative, anchored by the Center for Popular Democracy and CPD Action, is driving the growing momentum to restore a workweek that enables working families to thrive. We are committed to elevating the voices of working people to ensure they can shape the solutions that work for their families – whether through improved industry practices or new workplace protections.
Una cita con el jefe de la Reserva Federal de NY
Una coalición de trabajadores latinos afroamericanos se reunirá este viernes con una de las personas más poderosas del sector económicos.
No vamos a hablar con un congresista ni senador, ni...
Una coalición de trabajadores latinos afroamericanos se reunirá este viernes con una de las personas más poderosas del sector económicos.
No vamos a hablar con un congresista ni senador, ni tampoco con el presidente Obama. En vez, le contaremos nuestra historia a una persona de la que pocos han oído; alguien sumamente importante, que está a cargo de dictar política: William Dudley, presidente del Banco Federal de Reserva de Nueva York.
La Reserva Federal es un banco central de Estados Unidos que en este momento es la más importante entidad de política económica, pues el Congreso no ha aprobado leyes significativas para estimular la economía y sacarnos de esta recesión. Eso significa que la Reserva Federal está tomando las principales decisiones sobre la economía, algo que históricamente ha hecho sin participación alguna del público.
Pero la coalición Fed Up, que incluye al Centro para la Democracia Popular, New York Communities for Change y Make the Road New York, se dedica a cambiar eso, pues la Reserva debe escuchar a la gente como usted y yo.
A pesar de lo que sabemos sobre la economía –la vida que llevan nuestras familias y su lucha diaria– miembros de la Reserva Federal como William Dudley se rehúsan a ver la realidad.
Tratan de afirmar que la economía se ha recuperado. Quieren aumentar las tasas de interés y dejar de estimular la economía antes de que el resto de nosotros siquiera tenga la oportunidad de recuperarse. Es una pésima idea.
El desempleo todavía es más alto y los salarios todavía son más bajos que antes de la recesión. Además, los salarios de los trabajadores afroamericanos en general no han aumentado en los últimos 15 años.
Dudley y otros miembros muy poderosos de la Reserva Federal viven en una burbuja y tratan de hacer que aceptemos el decepcionante nivel de desempleo y subempleo actual como algo normal.
Pero aún pasamos dificultades: el desempleo entre los latinos en Nueva York es de 8.5%, y el desempleo entre afroamericanos es de 11%. Por más que las cosas vayan bien en Wall Street para los amigos de William Dudley en Goldman Sachs, no van bien en Jamaica, Mott Haven, Sunset Park ni Washington Heights.
William Dudley ha dicho que la decisión de aumentar las tasas de interés representará un cambio tan profundo que será un “cambio de régimen”. Una decisión de tal magnitud es demasiado importante como para dejarla en manos de los banqueros de Wall Street.
Los desempleados, los subempleados, quienes trabajan demasiado y los mal pagados representan la mayoría en la economía, y tenemos el derecho a voz y voto.
Nos reuniremos con Dudley porque las decisiones más trascendentales de la Reserva Federal –las principales decisiones para toda la economía en este momento– son cruciales. Es necesario escuchar también las voces de los trabajadores latinos y de afroamericanos.
Janet Yellen, the first woman Fed chair, proved the skeptics wrong and got fired anyway
Janet Yellen, the first woman Fed chair, proved the skeptics wrong and got fired anyway
On February 3, Federal Reserve Chair Janet Yellen, the first woman to lead the central bank and likely the most qualified nominee ever for the post, will exit the Fed, leaving a legacy described...
On February 3, Federal Reserve Chair Janet Yellen, the first woman to lead the central bank and likely the most qualified nominee ever for the post, will exit the Fed, leaving a legacy described as “near perfection” and with an “A” grade from a majority of economists.
And yet in 2014, the US Senate confirmed Yellen by a vote of 56-26, the lowest number of “yes” votes a confirmed Fed chair has ever received.
Read the full article here.
4 days ago
4 days ago