Mind the Gap: How the Federal Reserve Can Help Raise Wages for America’s Women and Men
The American economy remains too weak. Over the past 35 years, the vast majority of workers have seen their wages stagnate. And, racial and gender wage gaps have persisted. The failure to...
The American economy remains too weak. Over the past 35 years, the vast majority of workers have seen their wages stagnate. And, racial and gender wage gaps have persisted. The failure to aggressively target and achieve genuine full employment explains a large part of this disappointing performance. And this failure looks poised to continue. Despite these indicators that we are far from full employment and the fact that the inflation rate remains below the Federal Reserve’s target rate, pressure is mounting on the Federal Reserve to raise interest rates to slow the pace of economic expansion and job growth in the name of fighting hypothetical future inflation. It would be a terrible mistake for the Fed to yield to this pressure.This paper makes the case that the Fed should pursue genuine full employment that features robust wage growth, rather than be satisfied with job growth that is consistent but does not boost the pace of wage growth. The paper considers the shifts in gender and racial wage gaps since 1979 and highlights the fact that because the vast majority of American workers have seen near-stagnant wages even as economy-wide productivity growth has consistently risen, there is ample room for wage-gaps to close without any group suffering wage declines.Key findings:
A significant portion of the limited progress towards closing the gender wage gap in recent decades has been due to the outright decline of men’s wages. Although there is greater gender wage equity among the bottom 10 percent of earners than among higher wage-earners, the gap between men and women has closed very little since 1979 Wage disparities between white earners and Latino or Black earners have increased in the past 35 years Productivity growth—which measures the average amount of income generated in each hour of work in the economy—has remained strong. At 64.9 percent over the 35-year period, productivity growth represents the possible increases in every worker’s wage throughout the economy. White women, the group whose median wage growth has been strongest over the period, gained at roughly one-third the rate of productivity.The Federal Reserve plays a powerful role in shaping labor market trends. To be sure, these wage gaps among groups of workers result from a long history of discrimination within the labor market, education, housing, wealth-building, and criminal justice policies, and require a full array of economic, social, and political policies.However, until we reach genuine full employment, a Federal Reserve decision to slow the economy will hamper the ability of workers’ wages to rise.Key recommendations:
The Federal Reserve should set a clear and ambitious target for wage growth, which will provide an important and straightforward guidepost on the path to maximum employment.Wage targeting can be fairly easily tailored to the Fed’s price-inflation target and pegged toincreases in productivity. The Fed should maintain a patient, but watchful posture. The history of the past 35 years shows a generally steady downward trend in price inflation and that prematurely slowing the economy results in higher than desirable unemployment. The Federal Reserve should not consider an interest-rate hike until indicators of full employment—particularly wage growth—have strengthened.Raising interest rates too soon will slow an already sluggish economy, stall progress on unemployment, and perpetuate wage stagnation for the vast majority of American workers. This harm will be disproportionately felt by women and people of color, who are concentrated in the most vulnerable strata of the workforce.
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Home Act Offers Hope for Immigrants
Times Union - September 17, 2014, by Andrew Friedman & Javier Valdes - With President...
Times Union - September 17, 2014, by Andrew Friedman & Javier Valdes - With President Barack Obama once again delaying immigration reform with a path to citizenship, immigrants aren't waiting any longer for Washington to act on their behalf.
Instead, they are uniting around a new strategy for progress: the extension of state citizenship to millions of noncitizen residents.
New York is at the forefront of this national effort.
Legislation called the New York is Home Act, recently introduced by state Sen. Gustavo Rivera and Assembly Member Karim Camara, would extend the full rights and responsibilities of state citizenship to nearly 3 million non-citizens who meet very specific criteria and apply through New York's Office for New Americans.
Earlier this week, Senate Republicans, aware of their political vulnerabilities this election season, launched a thinly-veiled fear-mongering campaign over the legislation. They are trying to turn a commonsense legislative proposal into a wedge issue and divide Democrats in the process.
Gov. Andrew Cuomo, Senate Democrats, and progressive leaders like New York City Mayor Bill de Blasio should not take the bait. Instead, they should rally around this legislation, and recognize how sensible and pragmatic it is.
Today, as in the past, New York is home to many immigrants who make valuable contributions to the communities where they live and work.
From Buffalo to the Bronx, non-citizen residents overwhelmingly want the same things as native-born New York residents: good schools, decent jobs, safe neighborhoods, economic security, and real opportunities for inclusion and advancement.
According to the New York is Home Act, non-citizen residents who can show proof of identity, three years of residency, tax payments, and a commitment to follow the law and serve on juries would be eligible to become state citizens.
To non-citizen residents who meet those specific criteria, access to the following benefits would be granted: financial aid for higher education, health care, drivers' licenses, professional licenses, the right to vote, the right to run for office, and complete protection against racial profiling.
The argument for full equality and inclusion of immigrant residents is that state citizenship should recognize and reward the efforts of noncitizens who make our communities stronger.
We all stand to gain when everyone who calls New York home is treated as a real contributor to the greatness of our state. By the same token, viewing immigrants as expendable, exploitable and deportable hurts us all and undermines our shared values.
What happens in New York with this legislation is being closely watched around the country, especially in states like Oregon, California, Illinois, and New Jersey, where efforts to introduce and pass similar legislation are gaining traction because of Washington's failure on immigration.
The New York is Home Act would enable the full and equal participation of immigrants in all activities that define our democracy and economy.
It respects the federal government's authority over federal immigration, while asserting New York's authority to define its state citizenry and the beneficiaries of state citizenship.
State laws around the country have long excluded non-citizens from voting rights, higher education, health care, drivers' licenses, and professional licenses. This exclusion is a loss for all of us, because it limits the ability of immigrants to participate fully in activities that strengthen the social and economic fabric of our country and advance our common interests as Americans.
It's time to promote full inclusion and equality for all.
Taking all the necessary political steps to get this done in New York will be a challenge, but with a reunified Democratic state Senate and leadership from Cuomo, it can happen.
We should set a clear example for the nation and create a model for other states to follow.
Through the expansion of state citizenship, non-citizens can exercise greater economic and political power on behalf of everyone, and do more to help our entire state and country grow, thrive, and prosper. New York is the only home many noncitizen residents have ever known.
Now is the moment to start counting and respecting these New Yorkers as real citizens.
Andrew Friedman is co-executive director of the Center for Popular Democracy. Javier Valdes is co-executive director of Make the Road New York.
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Demonstrators Take Over Manhattan Amazon Store in Protest of Queens HQ
Demonstrators Take Over Manhattan Amazon Store in Protest of Queens HQ
"I think Amazon is only going to make it worse," said Charles Khan, of the Center for Popular Democracy. "There's no reason to give them $3 billion when we have so many problems, homelessness."...
"I think Amazon is only going to make it worse," said Charles Khan, of the Center for Popular Democracy. "There's no reason to give them $3 billion when we have so many problems, homelessness."
Read the full article here.
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to President Donald Trump.
A newly launched website called BackersOfHate.org...
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to President Donald Trump.
A newly launched website called BackersOfHate.org breaks down how nine major corporations are affiliated with the Trump administration and the ways they will gain from the Trump agenda. The website also outlines current company policies that already negatively impact people of color, immigrants, Indigenous communities, and low income populations — similar to critiques of the Trump agenda.
Read the full article here.
Here Are the City Policies That Democrats Need to be Talking About
Here Are the City Policies That Democrats Need to be Talking About
This has been an incredibly disturbing election year: to a degree unprecedented in our lifetimes, hatred and xenophobia are being marshalled to support a reactionary nationalistic agenda. As...
This has been an incredibly disturbing election year: to a degree unprecedented in our lifetimes, hatred and xenophobia are being marshalled to support a reactionary nationalistic agenda. As leaders of Local Progress, a network of more than 500 progressive elected officials from cities and towns across the country, we stand together in support of a positive vision to make America great: economic inclusion, racial and gender equity, sustainable communities, and good government that serves the public interest.
This week, as Republicans and Democrats gather for their national conventions, Local Progress is releasing a national platform of our own. We adopted the platform on July 9 in Pittsburgh at our Fifth Annual Convening, which was attended by over 100 local elected officials from around the country and hosted by Pittsburgh Mayor Bill Peduto.
Our platform lays out a series of practical and transformational steps that the federal government can take to promote strong, equitable cities. On an array of issues – from affordable housing and environmental protection to workers’ rights and police reform – we’ve identified strategies Congress and the executive branch can take to support, incentivize, and collaborate with local government officials like us who are trying to help our constituents build dignified and secure lives. You can read our full platform here.
With conservatives in control of Congress and a large majority of statehouses, many of the most important policy developments in recent years have come from the local level. In our cities of Minneapolis and New York, for example, we’ve passed paid sick days laws that guarantee workers time off to care for themselves and their loved ones. Earned sick time is a worker rights issue, but it’s also about gender and racial equity, because those previously lacking paid sick days are overwhelmingly women and people of color. Our cities are also confronting the affordable housing crisis with inclusionary housing laws; pushing for reform of our police departments to eliminate discriminatory policing and keep our communities safe; and shifting budget priorities to invest in the infrastructure, programs and services that help all of our constituents thrive.
These city policies have transformed the national discourse. Hillary Clinton’s support for a higher federal minimum wage is a testament to the power of the workers, community-based organizations, and policy advocates who set such a worthy goal and to Sen. Bernie Sanders, who did so much to build momentum for the issue and pull her along. But it’s also a testament to Seattle, San Francisco, Los Angeles, Washington DC, and other cities that have actually passed $15 minimum wages and are shifting the boundaries of mainstream discourse. The members of Local Progress have been at the frontlines of these fights in cities around the country, and we are proud to stand in the trenches with constituents who are working so bravely to build a more just society.
But the fact is that we cannot do it alone. The devastation wrought by the water crisis in Flint brought national attention to a reality being felt across the country: localities are starved of the resources they need to provide crucial services for their residents, particularly for low-income families and communities of color. As public servants, we believe in the power of government to improve the lives of our constituents. However, too often federal and state governments are an obstacle, not an aid, to advancing local policies that address these urgent issues.
In too many states, cities do not receive the financial resources they need to build strong schools, run proper public transit systems, or keep parks clean and safe. And we are often prohibited from passing laws to raise the revenue we need. Beyond financial constraints, many states are preempting cities’ ability to pass common sense regulations: smart gun safety laws, livable wages for workers (a limitation that affects New York City), and a just transition to a clean energy economy.
In short, we need the federal government to help us. Here are a few examples, drawn from our platform, that show how the next Congress and Administration can help city governments make a huge difference in our constituents’ lives:
The Department of Education can double down on investments in community schools that have been proven to reduce inequities, as well as restorative justice programs to help end the school-to-prison pipeline. And it can evaluate for-profit charter schools to determine whether they are exacerbating segregation and adhering to basic standards of accountability.
Congress can support the creation and preservation of affordable housing with a significant expansion of the Section 8 voucher program and public housing, as well as a stronger commitment to programs that prevent homelessness. And the Department of Housing and Urban Development can ensure the distressed mortgages it sells help the community – rather than Wall Street speculators.
The Department of Transportation can partner with cities to strengthen Vision Zero and “complete streets” initiatives that improve access to public transit and prioritize safety, sustainability, and racial and economic equity.
The Department of Labor can collaborate with cities to enforce labor standards and respond to the challenges created by the on-demand economy.
And, of course, the federal government must help eliminate the racially disparate impact of local policing and criminal justice systems. The Department of Justice should strengthen its oversight of local police departments, ensure that special prosecutors conduct investigations of alleged police misconduct, and curtail the transfers of military equipment to local departments. And it should incentivize the creation of alternatives to incarceration such as mental health and addiction services in both states and localities.
More than ever, we need strong cities and strong city leaders. The truth is that, right now, Congress is not working for the American people. Cities are leading the way, and will continue to do so. We hope that next year, with a new Congress and a President committed to inclusion, equity, and shared prosperity, Washington DC will give our nation’s cities the support we need to promote genuine social justice for America.
By RITCHIE TORRES AND LISA BENDER
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Report: Lack of oversight leads to fraud, abuse in charter school operations
Arkansas Times - May 6, 2014, by Max Brantley - Don't look for Bill Moyers to be getting any grants from the Walton Family Foundation. ...
Arkansas Times - May 6, 2014, by Max Brantley - Don't look for Bill Moyers to be getting any grants from the Walton Family Foundation. His website reports on a new study about harm to taxpayers and school children from poor oversight of charter schools.
Charter school operators want to have it both ways. When they’re answering critics of school privatization, they say charter schools are public — they use public funds and provide students with a tuition-free education. But when it comes to transparency, they insist they have the same rights to privacy as any other private enterprise.
But a report released Monday by Integrity in Education and the Center for Popular Democracy — two groups that oppose school privatization – presents evidence that inadequate oversight of the charter school industry hurts both kids and taxpayers.
Sabrina Joy Stevens, executive director of Integrity in Education, told BillMoyers.com, “Our report shows that over $100 million has been lost to fraud and abuse in the charter industry, because there is virtually no proactive oversight system in place to thwart unscrupulous or incompetent charter operators before they cheat the public.” The actual amount of fraud and abuse the report uncovered totaled $136 million, and that was just in the 15 states they studied.
Here's the full report. Arkansas is not among the states studied. It had a cap on open enrollment charters for years, unlike some states where proliferation of the schools has led to shady operators, poor education and self-enrichment.
But a bit of the rubber meets the road this week in Arkansas. A Texas charter school operator,Responsive Education Solutions, is going to ask this week for permission to move its proposed Quest charter school into a building on Hardin Road in west Little Rock that neighbors says isn't suitable for the school because of traffic. Responsive Ed has a hand in seven charter schools in Arkansas. It has been faulted in a national study for quality of its work with poor kids and a Slate investigation pointed up shoddy curriculum in science (creationism) and history (fractured facts). In Little Rock, it has not been honest with regulators. It won approval for a school on Rahling Road in far western Little Rock while it was negotiating for a school site closer in, near existing Little Rock and charter schools. Then, it said it wouldn't complete the purchase on the alternative site until it had approval from state and city officials. Records show the sale has closed, though neither the city nor state has formally approved use of the property for a school. How tough is Arkansas oversight? We shall see.
A measure of the looseness of regulation in Arkansas is the decision by top regulator Diane Zook,a member of the state Board of Education, to declare she has no conflict of interest in voting (FOR) on all Quest proposals even though her nephew, Gary Newton, is a lead organizer for the school and she has supported its establishment from early in the organizing process. Newton is financed in several pro-charter-school organizations by money from the Walton Family Foundation. I wonder if lawyer Chris Heller's aunt was on the state Board of Education if anyone would object to that Board member voting on a case, like Quest, where Heller was objecting to the charter on behalf of his employer, the Little Rock School District. I'd make a small wager that Gary Newton would.
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ABQ, SF receive grants to help immigrants become citizens
ABQ, SF receive grants to help immigrants become citizens
Cities for Citizenship is a national initiative supported by advocacy groups Center for Popular Democracy and the National Partnership for New Americans, with Citi Community Development as...
Cities for Citizenship is a national initiative supported by advocacy groups Center for Popular Democracy and the National Partnership for New Americans, with Citi Community Development as founding corporate sponsor. Fourteen cities were awarded challenge grants of either $25,000 or $40,000 a year over two years after 66 cities submitted proposals.
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