Why Black Lives Matter wants Hillary Clinton to reinstate Glass-Steagall
Why Black Lives Matter wants Hillary Clinton to reinstate Glass-Steagall
Hillary Clinton's support from financial institutions has always been her Achilles heel but running counter to this...
Hillary Clinton's support from financial institutions has always been her Achilles heel but running counter to this criticism is her pledge to end systemic racism. The two are actually closely related and if she is to make good on her promises on racial justice, she will have to test those close connections to Wall Street by directly pushing for a reinstatement of Glass-Steagall and closing the carried interest tax loophole.
The Movement for Black Lives' policy platform calls for a reinstatement of Glass-Steagall, the 1933 law that separated commercial and investment banking. The law has lately become a core focus of economic progressives.
Groups involved with the Movement for Black Lives see it as a key way to advance economic racial justice. Hillary Clinton has hesitated to publicly talk about the policy – in no small part because Bill Clinton was the one who repealed the law under his administration. The absence of an impermeable boundary between commercial and investing functions both instigated and then accelerated the 2008 financial crisis, forcing millions to lose their homes and jobs.
Communities of color were hit hard and recovered more slowly. Mortgage lenders like Wells Fargo systemically targeted black and brown borrowers for subprime loans, putting many at risk of foreclosure. In the years after the recession, many of these lenders settled multi-billion-dollar discrimination lawsuits years after the damage had been done.
Also, a 2015 American Civil Liberties Union study showed that black families continued to lose wealth years after the recession – even as white families began to climb out. The average black household lost 40 percent of its non-home equity wealth.
"Hillary Clinton has hesitated to publicly talk about Glass Steagall – in no small part because Bill Clinton was the one who repealed the law under his administration."
Home ownership is one of the most stable and reliable ways to acquire wealth in America, and the massive loss of homes among black and brown communities during the 2008 crisis will take decades to recover from. A new Glass-Steagall would help prevent banks from getting bigger and riskier, stopping them from coming back to black and brown neighborhoods and destroying even more wealth.
The carried interest tax loophole is another example. Eliminating this loophole, which lets private equity firms and hedge funds avoid taxes on part of their income, could raise $180 billion. It might sound like a drop in the bucket in the context of a national budget, but when you look closer, it is money that could make a huge difference.
It is also money that could have drastic implications for cities and states around the country that claim they don't have enough funding. The City of Chicago is facing a massive school funding crisis of more than a billion dollars. The hedge fund-cozy Mayor Rahm Emanuel and Governor Bruce Rauner routinely go to the school district for more concessions to make up the gap.
In the meantime, billionaire hedge-funders use the carried interest loophole to get out of paying taxes that translates into much needed revenue. The details of closing the loophole should be worked out by economists, but one thing is clear: if we keep a loophole that costs us billions of dollars while closing schools in black and brown neighborhoods, we are making a strong statement about the level of racial injustice we are willing to accept.
If Hillary Clinton wins the election, she will enter office at one of the most racially charged moments in American history. It is also a moment of some of the greatest income inequality in history – a reality even starker for black and brown communities. If we truly want to achieve racial justice, we should look at policies that prevent a repeat of the 2008 crisis. Closing the carried interest loophole and reinstating a modern Glass-Steagall are the tip of the iceberg. It is up to us to push Clinton for more.
Commentary by Maurice Weeks, who leads the housing & Wall Street accountability campaign at Center for Popular Democracy. Follow him on Twitter @mo87mo87.
By Maurice Weeks
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Twitter will now allow you to report hate speech against people with disabilities
Twitter will now allow you to report hate speech against people with disabilities
“This is a really good development for me and millions of people like me who want to be able to use Twitter without...
“This is a really good development for me and millions of people like me who want to be able to use Twitter without being attacked for our disabilities,” activist Ady Barkan, director of Local Progress at the Center for Popular Democracy, told Mic. “I applaud Twitter for its policy change.”
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A New and Ugly form of Racial Bias
A New and Ugly form of Racial Bias
Take a moment and imagine that you are on a train — let’s say a train serving wine as you traverse through picturesque...
Take a moment and imagine that you are on a train — let’s say a train serving wine as you traverse through picturesque Napa Valley. You are with a group of your peers. You are adults and enjoying your time of fellowship. But because of a perceived notion that you are not fit for that environment you are unceremoniously removed from the train. Can you imagine the indignity of this encounter? Think about the anxiety this situation may cause. Think about the disrespect that you would feel.
Believe it or not, this is the reality for a large portion of the African American community. According to a 2015 Gallup poll, more African American adults feel discriminated against while shopping than doing anything. This sentiment includes encounters with the police.
A report released by the Center for Popular Democracy confirms these perceptions felt by African Americans. The report found that African American consumers are seven times more likely to be targeted as potential thieves as are white customers.
However, research on shoplifting trends in retail stores found no differences by race or ethnicity. Some research even suggests that African Americans are less likely to engage in shoplifting than are other groups. That means African Americans are being overly targeted by retailers while the real criminals get away.
This form of discrimination is not new. It is an adaptation of previous forms of discrimination transformed anew due to significant gains in civil rights protections. This form of discrimination has a name: consumer racial profiling.
Consumer racial profiling is particularly troublesome because it disproportionately affects African American women, a consumer group who engages in the retail sector at significantly higher rates than men.
The image that I asked you to conjure was not of my own making. It actually happened to a group of Black women. Notwithstanding the fact these train riders reached a final settlement just last month, California and other states can do a great deal more to end the consumer racial profiling that plagues retail environments.
Specifically in California, a piece of legislation I have authored (AB 2707—the Stop Consumer Racial Profiling Act of 2016) will amend our state’s civil rights statute to include the definition of this demeaning practice and require the state’s civil rights watchdog to investigate reported incidences of the practice. It is my hope that this legislation would pass a vote of my colleagues and be signed by the Governor. But more important than the passage of a bill is the transformation of behaviors by retailers that violate the civil and human rights of African American consumers.
Corporate loss prevention schemes must be reformed, executives, managers and rank-and-file employees must be awakened, and people of goodwill must demand that the targeting of consumers by racial characteristic is factually and morally wrong. It must end.
A new civil rights consciousness has gripped a great deal of the country. Maybe we can address some of the challenges that still occur on the basis of race by turning the tide against consumer racial profiling and letting it be a thing of the past.
By Sebastian Ridley-Thomas
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Do Black Lives Matter to the Federal Reserve?
O’Neal is one of dozens of activists and policy experts traveling to Jackson Hole this week to urge the Fed against...
O’Neal is one of dozens of activists and policy experts traveling to Jackson Hole this week to urge the Fed against raising rates. The campaign, called Fed Up, includes some two-dozen unions, community groups, and think tanks, from the AFL-CIO to the Working Families Party. In Jackson Hole, organizers will deliver a petitiondemanding that the Fed rethink its plan to raise interest rates until the recovery can reach more Americans. Fed Up also plans to hold a series of teach-ins exploring questions like “How Do We Build a Fed that Works for Us?” and “Do Black Lives Matter to the Federal Reserve?”
While there’s only so much the Fed can do when spending on public investments and social programs is well below where it should be, the absence of fiscal support makes monetary policy that much more critical to promote a broadly shared recovery. At its core, the Fed Up campaign is about answering two questions, said Ady Barkan of the Center for Popular Democracy during a press call previewing the upcoming meeting: “Whose recovery is this?” and “Whose Federal Reserve is this?”
“I don’t think that those at the Fed know how life is here in south DeKalb County when they say that the economy is recovering,” O’Neal said during the call. O’Neal makes $8.50 an hour at the daycare center she works at in Atlanta. That’s not enough, she says, to cover rent, food, and utilities for her household, let alone the medication she needs to treat asthma and high blood pressure. “Our life is a constant struggle,” she says. “We have to decide whether, you know, are we going to buy meat, or are we going to buy medicine, or are we going to pinch off the electric bill this month?”
But, she emphasized, she’s hardly alone. “It’s also my neighbor. It’s also the person down the hall, my neighbor next door, around the corner. The whole community is suffering.”
The Atlanta area has been particularly hard hit by the financial crisis and weak economic recovery. In 2009, the Pew Hispanic Center named Metro Atlanta one of a handful of “distinct epicenters” of the nationwide foreclosure crisis. According to their report, less than 300 U.S. counties had foreclosure rates of more than 1.8 percent, and 19 of those counties, including DeKalb, are in Metro Atlanta. As elsewhere, the crisis had a particularly severe impact on black communities: All of the 19 counties Pew singled out as centers of the crisis are majority-black.
Since then, the weak recovery has in some ways only worsened inequities like this. In 2011, the unemployment rate for blacks in the Atlanta area stood at 14.4 percent, or twice the rate of their white neighbors. Three years later, black unemployment had dropped to 13.7 percent, but because joblessness among whites in Atlanta had fallen much faster, blacks were now nearly three times as likely to be jobless as whites. Today, DeKalb County has a poverty rate of 19 percent, well above the average for Georgia and the nation as a whole. And most of that poverty has been concentrated on the county’s majority-black south side.
But among black communities nationwide, DeKalb has actually fared relatively well. The area was hit hard by the downturn, but it remains the second-most affluent black-majority county in the country. By contrast, in Washington, D.C., a majority-minority city, black unemployment is a staggering 15.8 percent, more than five times the rate for whites, according to the Economic Policy Institute. Nationwide, after hitting its highest levels since the 1980s, black unemployment remains about double the rate for whites. The mortgage crisis and subsequent downturn destroyed a full 47 percent of black families’ wealth, and that wealth is far from recovered.
Despite that, the Federal Reserve seems perilously close to raising interest rates, possibly as soon as next month—a change that could have a disastrous effect on the already-weak recovery.
“We shouldn’t mince words,” said Barkan. “When the Federal Reserve raises interest rates, it is doing so in order to slow the economy down in order to prevent the economy from creating more jobs.” A slowdown like that would not only make it harder for the labor market to recover, but it also has a good chance of widening the gap in unemployment between blacks and whites. Historically, the joblessness gap between black and white workers tends to grow when the economy slows down.
But Fed officials remain stubbornly committed to a rate hike, even as instability grips the stock market this week. In a speech on Monday, following another day of market volatility, Atlanta Fed President Dennis Lockhart sought to allay suspicionthat the Fed’s plans to raise rates this year had changed. In June, 15 out of 17 senior Fed officials indicated that they’d like to see a rate hike this year, echoing a similar statement from March. As Lockhart put it in another speech on August 10, “The economy has made great gains and is approaching an acceptable normal.” Nowhere in his speech did Lockhart mention the poverty and racial inequality gripping communities just a few miles from the Atlanta Federal Reserve Bank he chairs.
For O’Neal, places like south DeKalb are very far from an acceptable normal. “When the Fed says that the economy is recovering and they want to raise the interest rates,” she said, “I look around and I don’t see recovery in my community.”
Unfortunately, plenty of Fed leaders don’t seem to think an unequal recovery is their responsibility to address. In testimony before Congress last month, Fed Chair Janet Yellen said that while black unemployment remains very high, “there really isn’t anything directly the Federal Reserve can do to affect the structure of unemployment across groups.”
But Barkan begs to differ. “We think that’s really a mistake,” he said. “A strong economy—more job growth and more wage growth—has a disproportionately positive effect on African Americans because of the racial disparities that exist in our labor market.” Keeping interest rates low is far from the only solution to racial inequality in the job market (and not even the only thing the Fed can do by itself), but it’s a good start.
Josh Bivens of the Economic Policy Institute, another Fed Up signatory, agrees.Because low-wage workers and workers of color tend to feel changes in unemployment much more dramatically, he said, keeping unemployment low should be the Fed’s first priority. “A policy that lets the unemployment rate get as low as it can possibly go without sparking inflation is one that’s going to have disproportionate benefits to workers of color,” he added.
Unfortunately, Barkan said, Fed officials have a long history of overlooking issues like racial gaps in unemployment and wealth. A big part of the problem is the central bank’s leadership, which is heavily skewed toward the banking sector. By law, 72 out of 108 directors of the Fed’s 12 regional banks must represent workers. But currently, just two officially do, compared with 91 who come directly from banks and financial institutions. “Of course when you have leadership like that you get policies that don’t advance the needs of American working families,” Barkan said.
Which is exactly why Fed Up plans to confront the central bank’s leadership today in Jackson Hole. In doing so, the coalition will help connect monetary policy and policymakers to the people and communities it most impacts.
And demanding that interest rates stay low is just a first step. During the conference, Fed Up will also present a report from PolicyLink on what a more equitable recovery would look like. The report explores how genuinely full employment—which has long been a core policy mandate for the Federal Reserve—would reshape our economy. The report defines full employment as no more than 4 percent unemployment for all groups and a labor-force participation rate no lower than 75 percent for men and 60 percent for women. (Currently, labor-force participation remains stuck at 69 percent for men and 56.7 percent for women, the lowest levels in decades.)
As Barkan and Bivens emphasized, a change like that would have a particularly dramatic impact on communities of color. In Atlanta, black unemployment would drop 10 percent while average household income would increase by 11 percent for black families. A full 175,000 people would be lifted out of poverty and the local economy would grow by $24 billion. Nationwide, the change would be just as dramatic. Genuine full employment would cut black unemployment by two-thirds and lift more than nine million people out of poverty.
It’s this kind of recovery that the Fed needs to begin thinking seriously about, said Barkan. The first step, he added, is to rethink how monetary policy is formulated and who gets a seat at the table.
Correction: In a previous version of this article, Dawn O'Neal's name was mispelled as O'Neil.
Source: The American Prospect
Bloomington Addiction Treatment Agenda Pushed by Group
Bloomington Addiction Treatment Agenda Pushed by Group
“The vast majority of funding for Hoosier Action and its initiatives comes from its dues-paying membership,” Greene...
“The vast majority of funding for Hoosier Action and its initiatives comes from its dues-paying membership,” Greene said. “Although we are a local partner of the Center for Popular Democracy, a national network that offers support.”
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Protesters Call on Harvard to Divest from Puerto Rican Debt
Protesters Call on Harvard to Divest from Puerto Rican Debt
“We know that Harvard is a large university with a big endowment, and it can set a tone for how higher education...
“We know that Harvard is a large university with a big endowment, and it can set a tone for how higher education universities invest,” protest organizer Julio Lopez Varona said. “It could make investments that are moral and not hurt anybody.”
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Advocates Demand More Money for Opioid Crisis
Advocates Demand More Money for Opioid Crisis
Today, advocates for expanded funding to address opioid misuse will take to the Capitol to push Congress for $45...
Today, advocates for expanded funding to address opioid misuse will take to the Capitol to push Congress for $45 billion for treatment and overdose prevention. While President Donald Trump declared the opioid epidemic a federal public health emergency last month, his administration hasn’t asked for additional money to help states address the crisis, and Congress hasn’t made any moves or come up with its own emergency authorization, either.
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Police arrest 155 health care protesters at U.S. Capitol
Police arrest 155 health care protesters at U.S. Capitol
U.S. Capitol Police officers arrested at least 155 demonstrators Wednesday at Senate office buildings, as health care...
U.S. Capitol Police officers arrested at least 155 demonstrators Wednesday at Senate office buildings, as health care advocates continued to pressure lawmakers two days after a Republican effort to repeal and replace the Affordable Care Act collapsed.
Police officials said in a statement that officers responded to “demonstration activity” at 45 separate locations in Senate office buildings beginning about 2:15 p.m. Authorities said demonstrators were warned “to cease and desist with their unlawful demonstration activities” before police made arrests, the statement said.
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Report slams Louisiana charter school oversight
The Times-Picayune - 05-08-2015 - Louisiana understaffs its ...
The Times-Picayune - 05-08-2015 - Louisiana understaffs its charter schools oversight offices and, instead of proactively investigating these schools, relies on charters' own reports and whistleblowers to uncover problems, according to a report released Tuesday (May 12) by the Center for Popular Democracy and the Coalition for Community Schools. That allows theft, cheating and mismanagement to happen, such as the $26,000 stolen from Lake Area New Tech High and the years of special education violations alleged at Lagniappe Academies.
The report also casts a skeptical eye on the veracity of the data that Louisiana uses to calculate the performance scores that keep charters open and determine their renewal terms. And it faults the state for closing struggling charters instead of intervening to improve them.
The Center for Popular Democracy's partners include the American Federation of Teachers, which has an uneasy relationship with charters, and the Annenberg Institute for School Reform, which studies charter school oversight. Kyle Serrette, the center's director of educational justice campaigns, said its parent members had children in charter and conventional public schools.
That said, one of the report's recommendations is to "impose a moratorium on new charter schools until the state oversight system is adequately reformed."
The Louisiana-based Coalition for Community Schools opposes charter schools outright and filed a civil rights complaint against the state Education Department in 2014. That complaint also included a demand to freeze chartering in New Orleans.
The two groups' report said Louisiana charters could suffer from "tens of millions of fraud in the 2013-14 school year alone," based on the methodology of the Association of Certified Fraud Examiners. In that time, employees of three New Orleans charter schools stole about $110,000, and two charter operators were accused of meddling with retirement payments.
Oversight agencies play almost no role in helping charter schools improve academic outcomes."
"The state has invested heavily in increasing the number of charter schools while failing to create a solid regulatory framework that truly protects students, families and taxpayers," the authors write. Furthermore, "oversight agencies play almost no role in helping charter schools improve academic outcomes. ... The state has no system in place to provide a path to high-quality academics for all struggling charter schools."
Charter schools are publicly funded but run by independent non-profit boards. They control their own curriculum and hiring but must meet academic and operational standards to stay open. The state Education Department oversees most of Louisiana's 130-plus charters; local school systems oversee the rest.
Read the report
However, as of December, the Education Department's charter audit team consisted of only three people, according to a critical December report from the Louisiana legislative auditor's office. Education Superintendent John White defended his team at the time, saying they reviewed charter schools' audits, among other activities.
Tuesday's paper says that isn't enough. Not only do charters hire their own accountants to conduct annual audits, but the audits are not designed to prevent or detect fraud. Indeed, reports typically contain a disclaimer saying they are not expressing an opinion on fraud controls. The legislative auditor's office might dig deeper but rarely does so, the report states.
"The only audits Louisiana charter schools routinely undergo are the ones they pay for themselves," the authors write.
The report faults the Education Department for not spending enough time on-site at charters. Charters receive regular visits and reviews from state inspectors, and Louisiana Recovery School District officials said their own findings of wrongdoing at Lagniappe Academies in New Orleans showed that their oversight procedures worked.
The authors of Tuesday's report disagreed. The state's 2013-14 review of Lagniappe Academies gave full points for special education, the two organizations said, and it was only later that state inspectors uncovered extensive reports of violations during that time period.
"The situation at Lagniappe shows exactly the problems with the state's oversight structure for charter schools," the report says. "The state relies on a largely self-reporting oversight structure that is easily manipulated by the schools themselves."
The authors doubt the accuracy of the test scores that are used to measure charters' academic performance, writing that the data "is vulnerable to manipulation."
Finally, the authors disagree with the state's readiness to close charters, including Lagniappe.
"Clearly there are times when problems are significant enough that a school must be closed. Yet, the current intervention (process) is designed to make school closure a normal and common part of the state's accountability system," the authors write. "The system needs to be updated to produce more stability for Louisiana children." In six years, more than 1,700 New Orleans students have seen their charter schools close, according to the report.
Louisiana's laws are "designed to set a high standard but not to help," Serrette said.
The state does at times intervene instead of closing schools, although this is not mentioned in the report. The Recovery School District has chosen successful charter operators to take over failing schools, for example, and White directed Lycée Français to find a new chief executive and assigned it a consultant team. Lycée has gone on to make a B grade, and its charter contract has been extended.
The report's recommendations include:
Require fraud audits every three years, to be conducted by the state legislative auditor's office
Train charter staff and boards on preventing fraud
Hire more staff for the legislative auditor's office and charter school oversight teams
Require "mandatory, hands-on, long-term, strategic support" for charters in trouble
Go beyond test scores when calculating school letter grades
Create local committees, including neighbors and parents, to design schools that serve the needs of a community
Coordinate social services at and around schools
Release raw testing data to the public.
Some of these issues are not unique to charters. Louisiana's conventional public schools also face pressure to keep test scores high: If they don't, they may be taken over by the state. There have been numerous examples of corruption and fraud in school boards and systems. Serrette said it was likely Louisiana's regular school systems needed stronger oversight as well.
Source: Nola.com
The Eugenicist Doctor and the Vast Fortune Behind Trump’s Immigration Regime
The Eugenicist Doctor and the Vast Fortune Behind Trump’s Immigration Regime
Since the 2016 election, according to a report from the Center for Popular Democracy, Wall Street behemoths JPMorgan...
Since the 2016 election, according to a report from the Center for Popular Democracy, Wall Street behemoths JPMorgan Chase & Co., Wells Fargo, and BlackRock have all increased their shares in the nation’s two largest prison companies, CoreCivic and GEO Group, financing the growth of a $5 billion industry with gargantuan loans: the two companies are now carrying a total of $1.94 billion and $1.18 billion in debt, respectively.
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