Hold the Fed Accountable: Opposing View
USA Today - March 17, 2015, by Mark Weisbrot - Should the Federal Reserve raise interest rates in order to create more...
USA Today - March 17, 2015, by Mark Weisbrot - Should the Federal Reserve raise interest rates in order to create more unemployment and keep wages from rising? If the question were asked that way, the vast majority of Americans would say, "No!"
It is not posed in this manner, even though economists — including Fed economists — and many journalists who write for the business press know that this is exactly what the Fed will be doing when it raises interest rates.
Of course, the justification is that we "need" to do this in order to keep inflation from rising to harmful levels. But the Consumer Price Index is actually down slightly for the year ending in January; in other words, inflation is in negative territory. Why should anyone want to increase unemployment just to keep inflation down?
OUR VIEW: Why it's good news if Fed loses 'patience'
When the Fed increases unemployment, it increases it twice as much for African Americans as for everyone else. And higher unemployment also reduces wage growth much more for African-American workers and lower-wage workers. Across the board, more unemployment translates very directly into more income inequality.
This is no time to be increasing unemployment and inequality, and pushing down wages. Median household income in the U.S. is still down about 3% since the recession ended in mid-2009. For the vast majority of the workforce, wages have stagnated or declined since 1979. Meanwhile, in the first three years of the current economic recovery, the top 1% of Americans received 91% of all income gains.
Fortunately, for probably the first time in the Fed's century of existence, there is a grass-roots movement to hold America's central bank accountable to the voters, citizens and working people of this country. A coalition led by the Center for Popular Democracy is "Fed Up" and trying to make sure that the Fed doesn't cut off wage growth before it even gets rolling.
If America is to shed the title of "Land of Inequality," this is how it is going to happen: by more people becoming aware of how the Fed's monetary policy affects them and demanding that it change.
Source
Dumpster Tapes showcases local Latinx talent at the second annual Demolición
Dumpster Tapes showcases local Latinx talent at the second annual Demolición
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have...
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have detained an average of 26,240 people per day through July 2017, according to a new report by the Center for Popular Democracy and Make the Road New York. Through over $100 million loans, lines of credit and bonds, Wall Street has been financially propping up CoreCivic and GeoCorp, America's two largest private immigration detention centers.
Read the full article here.
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President...
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both Democrats and Republicans. As a result, thousands of people plan to gather in Washington, D.C., on Saturday, April 15, 2017, at 11 a.m. The Tax March was an idea that started on Twitter, but has gained momentum on and offline, with over 135 marches planned in cities across the country...
Read full article here.
Ten Ways to Combat Upward Redistribution of Income
Moyers & Co - January 1, 2015, by Dean Baker - The big gainers in the last three decades (aka the one percent) like...
Moyers & Co - January 1, 2015, by Dean Baker - The big gainers in the last three decades (aka the one percent) like to pretend that their good fortune was simply the result of the natural workings of the market. This backdrop largely limits political debate in Washington. The main difference is that the conservatives want to keep all the money for themselves, while the liberals are willing to toss a few crumbs to the rest of the country in the form of food stamps, healthcare insurance, and other transfers.
While the crumbs are helpful, the serious among us have to be thinking about the unrigging of the economy so that all the money doesn’t flow upward in the first place. Here are 10 ways in which we should be looking to change the structure of the market in 2015 so that all the money doesn’t flow to the one percent.
In all these areas changes will be difficult, since the one percent will use their wealth and power to ensure that the rules not be rewritten to benefit the bulk of the country. However, this list should provide a useful set of market-friendly policies that will lead to both more equality and more growth.
1. Expanded Trade in Medical Care
The Affordable Care Act extended coverage to millions of people and, for the first time, allows people the freedom to quit jobs they don’t like and still have access to insurance. Nonetheless, we still pay close to twice as much per person for our health care as people in other wealthy countries.
If our trade policy were not dominated by protectionists, it would be directed toward making it easier for qualified foreign physicians to practice in the United States, potentially saving patients tens of billions every year. Even with the federal government committed to protectionist policies, nothing stops state governments from seeking out lower-cost care for Medicaid patients in other countries. The savings, which can run into the hundreds of thousands of dollars in some cases, can be shared with beneficiaries.
2. Prescription Drugs
This is part of the healthcare story, but a big-enough part to deserve a separate mention. Patent monopolies can allow drug companies to charge prices that are 100 times higher than the free-market price. The hepatitis-C drug Sovaldi sells in the United States for $84,000. The generic version is available in India for less than $1,000. State Medicaid programs can pay to send patients to India, along with one or more family members, and still have tens of thousands of savings that can be shared with beneficiaries.
3. Wall Street Sales Tax
The financial sector continues to rake in money at the expense of the rest of the country, courtesy of bailouts, too-big-to-fail insurance, and being largely exempt from taxes applied to other industries. Even the IMF argues that the financial sector is undertaxed.
While most members of Congress and presidential candidates are too indebted to Wall Street to push for a financial-transactions tax, states can get a foot in the door. It is possible to tax the transfer of mortgages on property within the state. A modest tax of 0.2 percentage points won’t affect normal mortgage issuance, but it will discourage the shuffling of mortgages and raise some serious revenue. This money can be used to fund needed public services and, in part, to support lower taxes in other areas.
4. Limiting CEO Pay
CEOs are able to arrange paychecks in the tens of millions of dollars in large part because corporate directors are effectively paid off to look the other way. The incentives can be radically altered if directors stood to lose their stipends if a say-on-pay vote by the shareholders was defeated.
State governments can put this into law for corporations chartered in their state. Also, any corporation can put this rule into their own bylaws. Since fewer than three percent of pay packages are voted down, any director who is confident enough that they will not be in the bottom three percent should be happy to support such a change in bylaws.
5. Limiting Pay at Nonprofits
Nonprofit organizations like universities, hospitals, and charities are hugely subsidized by taxpayers. Since most of their contributions come from people in the top income bracket, the ability to deduct charitable contributions effectively means that taxpayers are paying 40 cents of every dollar a rich person contributes.
Since taxpayers are out for much of the cost, it seems only fair to put some rules in place. (Actually, we already do.) How about a pay cap of $400,000 for any employee of a nonprofit? This is twice the pay of a cabinet officer. If a university or other nonprofit can’t find competent people who are prepared to work for twice the pay of a cabinet secretary, perhaps it is not the sort of organization that taxpayers should be supporting.
States can also get into the act on this one. Most states offer special tax treatment to nonprofits. They could apply the two-times-a-cabinet-member’s-pay rule to the nonprofits within their state.
6. Applying Sales Tax to Internet Sales
Jeff Bezos has become one of the richest men in the world because he was successful in expanding Amazon into a huge retailer that doesn’t have to collect the same sales taxes as corner grocery stores. There is no excuse for giving special exemptions to Amazon and other Internet retailers. The states that don’t yet tax Internet sales in their state should move quickly to do so. It makes no sense to subsidize giant retailers like Amazon at the expense of traditional mom-and-pop retail outfits.
7. Democratizing the Sharing Economy
Start-ups like Airbnb and Uber have quickly turned into multi-billion-dollar businesses, in large part by evading the regulations that apply to their traditional competitors. The plan here should be to modernize the rules for taxis, hotels and other outposts of the “sharing” economy and be sure they apply to everyone equally. You don’t get to operate an unsafe taxi driven by an alcoholic just because it’s ordered over the Internet.
In the case of Airbnb, local governments could quickly add some new competition by having local websites where people could list available rooms without paying fees to Airbnb. The advantage to the cities is that they could be sure that these rooms met fire safety and other requirements. Then the only people who listed on Airbnb would be people renting fire traps or other illegal units or who were too ill-informed to save themselves the Airbnb commission. (This gives “sharing” economy a whole new meaning.)
8. The Overvalued Dollar
Our economists are learning and have discovered the problem of secular stagnation. This means that many economists now recognize that the economy can suffer from a persistent problem of inadequate demand, leading the economy to run at below-potential levels of output and to have excessive unemployment.
Unfortunately, most economists still don’t feel they can talk about the most obvious cause of the lack of demand: the country’s large trade deficit. The annual deficit is currently more than $500 billion (at three percent of GDP). This has the same effect on the economy as if consumers were to massively cut back their annual consumption by $500 billion and instead put this money under their mattress. The lost demand translates into more than six million jobs.
The obvious solution is to reduce the value of the dollar against other currencies in order to make US goods and services more competitive internationally. The value of the dollar is a matter that is determined at the national policy level. In principle the United States could be negotiating for a lower-valued dollar in a big trade agreement like the Trans-Pacific Partnership. Instead it is pushing for stronger patent protection for Merck and Pfizer, stronger copyright protection for Disney and Mickey Mouse, and a system of business-friendly courts that can override laws in the United States and elsewhere.
9. Shorter Work Years and Work Weeks
If we can’t directly increase demand in the economy through lowering the value of the dollar, we can still increase the number of jobs by reducing the amount of time that people work on average. This is the secret of Germany’s economic miracle. It has had slower growth than the United States, yet it has seen a huge increase in employment in its recession recovery. The average work year in Germany has 20-percent fewer hours than in the United States.
One of the policies that has helped bring about job growth in Germany is work sharing. This policy encourages companies to cut back hours instead of laying off workers. Workers are compensated for their lost wages through the unemployment insurance system. Most states have work-sharing programs as part of their unemployment insurance system. The compensation rate is generally lower in the United States than in Germany (typically 50 percent, compared with 60 to 80 percent in Germany), but it still beats losing a job.
Other policies that go in the same direction are paid family leave and paid sick days. These policies are important in their own right but can help better divide the available work among those who want jobs. Another great feature of these policies is that we don’t have to wait for the president and Congress to take action. They can be implemented at the state and even local level.
10. The Federal Reserve Board
The last and possibly most important item on the list is the Federal Reserve Board. It will be coming under pressure from the Wall Street types to raise interest rates. The point of higher interest rates is to slow the economy and keep people from getting jobs. The Fed would do this because more jobs will mean that workers have more bargaining power and would be in a position to raise wages. In short a Fed move to raise interest rates is very directly about keeping workers from getting higher wages. (Most workers have only been able to achieve real wage gains when the unemployment rate has been low.)
Fortunately, there are efforts to apply some pressure in the opposite direction, most importantly by the Center for Popular Democracy. They aim to let the Fed governors in Washington and presidents of 12 district Fed banks know that people who care about jobs are watching the Fed’s actions. This should make it harder for the Fed to take steps to deliberately throw people out of work and reduce workers’ bargaining power.
That’s my list of the top 10 places where progressives can focus in 2015 on restructuring the economy in ways that prevent income from flowing upward. The list is hardly exhaustive, and I left out some obvious important areas, like strengthening unions, because everyone should know them. Let’s hope for a good year and some real progress in turning the economy around.
Source
Queens Radio Show Aims to Help Day Laborers Avoid Death or Injury on the Job
Queens Radio Show Aims to Help Day Laborers Avoid Death or Injury on the Job
As a muted telenovela played on a T.V. overhead, Jorge Roldan inched toward the microphone in a basement radio studio...
As a muted telenovela played on a T.V. overhead, Jorge Roldan inched toward the microphone in a basement radio studio in Corona, Queens.
Speaking in Spanish, Roldan, a coordinator at the Laborers’ International Union of North America who is based in Long Island City, reminded his audience, mainly construction workers, that their bosses are obligated to give them respirators when they work on jobs involving airborne contaminants like asbestos.
“New York is an old city – many buildings have asbestos,” he said. “Wash your clothes in two different machines. The asbestos resist everything.”
His advice was standard fare for Sin Fronteras. Since April, the hour-long program has brought together six Latinos weekly to offer advice on a delicate topic for the Latino immigrant community: the exploitation and mistreatment of undocumented laborers.
Translated “Without Frontiers,” the offering is the only public-affairs program of 91.9 Radio Impacto 2, an unlicensed Spanish-language music station founded in 2008 that caters to the Ecuadorian population. Sin Fronteras focuses on worker-safety issues, but also promotes cultural events in the Ecuadorian and Latino community. Its guests have included Queens Assemblyman Francisco Moya and Ecuadorian Consul General Linda Machuca, among other local leaders.
More than 98,000 Ecuadorians live in Queens. Latinos account for over 27 percent of the borough population and are a nearly equal percentage of the construction workers citywide, according to a 2015 report by the New York Committee for Operational Safety & Health, a labor advocacy group. An investigation in 2013 by the non-profit Center for Popular Democracy found that between 2003 to 2011, Latino and/or immigrant workers made up three quarters of fatal falls at construction sites in New York City.
“We don’t want more of our people to die,” said Sin Fronteras’ founder, Rosita Cali, an Ecuadorian immigrant who also co-directs Padres en Acción, an organization in Jackson Heights that offers workplace safety trainings sponsored by the Occupational Health and Safety Administration – known as “OSHA classes.”
“Workers have to protect themselves,” she said. “They have the right to say, ‘no, I’m not going to go on that ladder.’ They have a voice and a vote.”
Juan, a 28-year-old Ecuadorian construction worker, represents the people the program tries to reach. An undocumented immigrant, he said he has been a construction worker since March and makes $17 an hour, nearly one-third more than in his previous job working in a kitchen. But about two months ago, he said, he started feeling sick after working with fiberglass insulation in a building in Brooklyn.
Juan said he asked his construction supervisor for a mask, but was told that there were none available.
“They told us that there weren’t any, that we would have to wait,” said the worker, who asked that his last name not be published. “The day went by, and then the week. How can that be?”
By the end of the week, he said, he had an obstructed sense of smell, body aches and a cough, which his doctor attributed to inhalation of fiberglass.
“When you remove the insulation, the dust rises – even your skin starts to sting,” said Juan.
Christina Fox, the work center coordinator for New Immigrant Community Empowerment, a non-profit based in Jackson Heights, said the Latino laborers she works with often don’t report injuries to their supervisors. She explained that workers might not think their injuries are severe enough or don’t know that they have a right to receive compensation.
Attending a workplace safety class could change this.
“A worker will be able to go to their job, recognize there’s a crack in the retaining wall, stop, and tell their supervisor,” she said. “But low-income workers don’t [always] have the flexibility to leave the job. A lot of workers might enter that risk situation.”
It’s a scenario that Sin Fronteras aims to address. Cali began pushing for more workers’ rights classes several years ago. When she heard in 2013 that the Ecuadorian Consulate was running out of space to host OSHA classes, she offered up the basement of her jewelry store and barbershop in Corona – the same basement where her program is now recorded.
For two months, she said, dozens of immigrants flocked to her shop weekly to learn about their right to report workplace accidents, regardless of legal status.
“When I saw how huge and exaggerated the demand was, I said, ‘this can’t be – we’re going to hold classes in other places,'” recalled Cali.
She created Sin Fronteras to expand the outreach. Like the majority of the hosts on the program, she doesn’t have professional radio experience, but the station’s owners immediately liked the idea of a program that seeks to help the community. The six hosts on Sin Fronteras are all volunteers and include a lawyer who specializes in construction accidents and the founder of Padres en Acción, Ronaldo Bini, who speaks about public-safety measures.
“Because people lack knowledge, they aren’t prepared and lose the chance to build their lives,” said Cali. “We want people to listen to the radio programs and come here and take OSHA classes, scaffold classes for workers’ protection.”
Maria Fernanda Baquerizo, the community relations coordinator at New York’s Ecuadorian Consulate, said that labor abuse is prevalent in the largely undocumented Ecuadorian community in Queens.
“It’s very positive that our community, our immigrants, can listen to important information of where to receive help,” she said. “Because generally the people who are abused at work, the undocumented, think that their employers can abuse them and not pay them wages… Immigrants feel helpless, they feel alone. They don’t know how to move forward.”
By Leila Miller
Source
5 days ago
5 days ago