CPD IN THE NEWS

The California-based insurance company HealthNet agreed to cover a breathing assistance machine for Ady Barkan, a 34-year-old progressive activist afflicted with ALS, after his complaints about the company went viral on Twitter.

The company had initially refused to cover the costs of the machine on the grounds that it was “experimental,” according to Barkan.

Read the full article here.

Democrats in Congress are pushing the Federal Reserve to emphasize diversity when filling top policymaking roles.

In a new letter sent to Fed Chairwoman Janet Yellen, the lawmakers noted that the overwhelming majority of top central bank positions are filled by white men, and they urged a rapid change.

“The importance of ensuring that such positions are filled by persons that reflect and represent the interests of our diverse country cannot be overstated,” they wrote. “When the voices of women, African-Americans, Latinos, Asian Pacific Americans, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected.”

The letter, spearheaded by Sen. Elizabeth Warren (Mass.) and Rep. John Conyers Jr. (Mich.), garnered signatures from 11 senators and 116 House Democrats. Sen. Bernie Sanders (I-Vt.), a Democratic presidential contender, signed the letter, as did every Democrat in the Congressional Black Caucus.

Hillary Clinton jumped into the fray as well, issuing a statement Thursday echoing that message and calling for reforms at the Fed to limit Wall Street input.

"Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms -- like getting bankers off the boards of regional Federal Reserve banks -- are long overdue," said a campaign spokesperson.

The members called for the Fed to consider a range of factors when filling upcoming vacancies, including a candidate's ethnicity, economic and professional background.

They note that while unemployment has fallen sharply over the last several months, minority groups still fall behind. White unemployment is 4.3 percent, Hispanic unemployment is 6.1 percent, and black unemployment is 8.8 percent.

The lawmakers noted that every member of the Federal Open Market Committee (FOMC), which sets the nation’s interest rate policy, is white.

In response to the lawmaker critique, the Fed said it was committing to boosting diversity, and touted its recent efforts along those lines.

"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," said a Fed spokesperson. "By law, we consider the interests of agriculture, commerce, industry, services, labor, and consumers. We also are aiming to increase ethnic and gender diversity. "

Thursday’s letter is the latest in a growing leftward push to influence the Fed, as liberals view the central bank as disproportionately influenced by input from Wall Street. With the economy on the mend and the Fed eyeing upcoming interest rate increases, they argue that too many Americans lower on the economic scale are not yet feeling those economic gains and need more support from the central bank.

Yellen was previously asked about diversity at the Fed at a congressional hearing earlier this year, and she committed to look into the matter.

Did you know 67% of all job growth comes from small businesses? Read More

A top priority for the lawmakers is ensuring increased diversity at the 12 regional Fed banks scattered across the country. Those banks occupy five rotating seats on the FOMC. But their boards are mostly filled by commercial banks, which directly back each institution.

Democrats have said for years that the arrangement ensures that the financial sector enjoys a prime seat in communicating with the Fed. Thursday’s letter noted that no regional bank head is black or Latino, and no African-American has ever helmed a regional Fed bank in the organization's 100-year history.

By Peter Schroeder

Source

The City Council’s dominant Progressive Caucus—led by Speaker Melissa Mark-Viverito—announced their endorsement today of Minnesota Congressman Keith Ellison for chairman of the Democratic National Committee.

As Democrats look to recover from a devastating Election Day, Ellison is vying to lead the party against former Vermont Gov. Howard Dean and South Carolina chairman Jaime Harrison. Ellison, the first Muslim-American ever elected to the House of Representatives, has attracted the support of Sen. Charles Schumer and Vermont Sen. Bernie Sanders, whom the congressman backed for the presidency in defiance of most party leaders.

Now the Progressive Caucus, whose 19 members mostly though not unanimously favored Hillary Clinton in the Democratic primary, has added its backing to the Midwestern lawmaker’s bid.

“The members of the Progressive Caucus Alliance are proud to add our voices to those in support of Keith Ellison for Chair of the Democratic National Committee,” the group said in a press release today. “Congressman Ellison has been a true progressive champion in Congress, and has demonstrated the grit and tenacity that we’ll need for the tough fights ahead.”

Dean, who headed the DNC from 2005 to 2009, has asserted that the organization needs a chair who can attend to party business full-time. The Democrats have suffered severe setbacks over the past eight years under chairs who held elected office, most recently the controversial Florida Congresswoman Debbie Wasserman-Schultz.

The former Green Mountain State governor and 2004 presidential candidate has highlighted the success of his “50-state strategy” in yielding the first Democratic majority in Congress in 22 years in 2006.

More important for the Council’s Progressive Caucus, however, are Ellison’s two turns as keynote speaker at “Local Progress” gatherings of low-level left-leaning officials. This, the caucus asserted, showed an emphasis on building a party bench at the most basic levels of government.

“As municipal legislators, we are especially enthusiastic about his emphasis on progressive politics at the local level,” their statement said. “Congressman Ellison recognizes that progressive politics matter at the most local of levels: to families seeking a job that pays the bills, to kids from low-income families hoping to go to college, and to parents worried about whether their kids of color will be treated fairly by the criminal justice system. He knows the difference it makes to unite action at the local, state and federal levels, and why it is important to build strength among City Council members and other local elected officials.”

Ellison’s bid also comes as many Democrats, including Schumer, have argued the party needs to increase outreach to blue collar white voters in depressed industrial areas. But the Progressive Caucus insisted the “incredibly divisive national atmosphere” President-elect Donald Trump’s incendiary anti-immigrant rhetoric has created demands party leadership that will stick up for minorities.

“We need a leader who will stand firm against hatred, bias, discrimination, anti-Semitism, Islamophobia,” the Council members’ release said. “The members of the Progressive Caucus Alliance know that Congressman Ellison will be that type of leader, and we enthusiastically support his bid for Chair of the DNC.”

“We are enthusiastic that he will be [the] first Muslim-American DNC Chair,” it added.

Disclosure: Donald Trump is the father-in-law of Jared Kushner, the publisher of Observer Media.

By Will Bredderman

Source

Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike would slow the economy and harm those for whom the so-called "recovery" has been weakest, including poor people, women, and communities of color.Instead, the coalition is calling on the Fed to ditch those plans and give vulnerable communities, including "tens of millions of Black Americans who are still struggling," a say in economic policy. 

Fed officials have for months signaled an intent to raise short-term interest rates—which were slashed to zero in 2008 in an effort to spur spending and investment—as soon as this fall or winter. As the Washington Post reported Thursday, reported wage growth "combined with the strong hiring and a rapidly falling unemployment rate, gave the Fed hope that the economy would be able to withstand the first rate hike in nearly a decade by the end of the year."

But recent volatility in stock markets in the U.S. and globally, as well as internal policy disagreements, are leading some economic observers to predict that the Fed may now beless likely to set a rate hike at its September meeting.

Regardless, the Fed Up campaign—anchored at the Center for Popular Democracy and supported by 25 groups including the Economic Policy Institute, Demos, and the AFL-CIO—says raising interest rates would be foolhardy.

And they're in Wyoming to make that view known. According to the Huffington Post, "Fed Up's member organizations brought over 100 primarily low-income grassroots activists from across the country for the gathering. It's a dramatic increase from its inaugural visit to Jackson Hole last year, when the campaign brought a group of 10 activists."

As Sam Ross-Brown wrote at the American Prospect this month, "Fed Up's goal is a more 'pro-worker' Federal Reserve, and their first step is stopping the Fed from hiking interest rates before wages and employment have a chance to catch up with the recovery. Building on a similar action last year, the coalition began circulating a petition this week demanding the Fed keep rates low until wages and employment rise."

"There is no data supporting the Fed's push for higher interest rates," said Ady Barkan, campaign director for Fed Up. "While they toy with halting the recovery, there is a crisis of stagnant wages and a lack of good jobs."

According to Whose Recovery? A National Convening on Inequality, Race, and the Federal Reserve—the Fed Up Coalition's policy agenda for three days of teach-ins and workshops in Jackson Hole—a rate hike would slow down the economy so that there are fewer new jobs and workers have less power to negotiate raises.

"By raising interest rates, the Federal Reserve will make it more expensive for us to pay our credit card, student loan, car, and mortgage payments," the Fed Up campaign says. "That means we will have less money in our pockets to buy the goods and services we need. And that will have a terrible ripple effect throughout the economy: businesses will earn less revenue, so they will lay off workers (or avoid hiring new workers) and they won’t be able or willing to give workers any raises. With bad job prospects and stagnant wages, working families won’t earn enough to buy the goods and services they need, which starts the whole cycle again."

"If this sounds like a terrible idea," the coalition continues, "that's because it is."

The Fed Up perspective is supported by economist Joseph Stiglitz, who spoke alongside the grassroots activists at an event on Thursday. The same day, Stiglitz wrote in an LA Timesop-ed:

It is hard to see why the Fed would choose slower job and wage growth for most Americans just to protect against the theoretical risk of moderately higher inflation. But, then again, it's often hard to understand the Fed's policy choices, which tend to contribute to widening inequality in the United States.

Too often, after the end of one recession, the Fed, fearing inflation, has used monetary policy to dampen the economic expansion. Its maneuvers keep inflation low but unemployment higher than it otherwise would be, negatively affecting all workers, not just those out of a job. Workers in jobs face greater stresses, downward pressure on wages and diminished opportunities for upward career mobility. The costs of higher unemployment are borne disproportionately by people in lower-income jobs, who also tend to be disproportionately people of color and women.

Beyond the particulars of interest rates and inflation, however, the Fed Up Coalition iscalling for the central bank to facilitate more robust public engagement and greater transparency, given its position as "arguably the nation's most powerful economic actor."

"For far too long, our communities have been isolated from the Federal Reserve’s policy choices," the coalition writes in Whose Recovery? "Monetary policy has been left up to the bankers and the economists, with the public largely shut out and confounded by its seeming complexity."

Unsurprisingly, the document continues, "[t]he consequences of this disengagement have been profound. For the past 45 years, with only a few exceptions, the Federal Reserve has set policy that benefits banks and harms borrowers, helps employers and hurts workers, and privileges the voices and needs of corporate elites rather than those of America's working families."

Source: CommonDreams