Steve Forbes: 'Tax-and-Spend Fever' Is Breaking Out Over Highway Fund
Steve Forbes, editor-in-chief of Forbes Media, isn't too impressed with proposals in Congress to finance transportation...
Steve Forbes, editor-in-chief of Forbes Media, isn't too impressed with proposals in Congress to finance transportation spending with tax hikes.
"Uh-oh! Washington is coming down with another tax-and-spend fever," he writes in Forbes magazine. "The cause this time is an old-timer: highway spending. The prospect of ladling out more money for roads even has many Republicans acting like dogs in heat."
The Highway Trust Fund, which finances most transportation programs, is broke, Forbes explains. About 90 percent of the fund's money comes from federal gasoline and diesel taxes. And that's not sufficient now to pay for existing projects.
"What to do? In Washington the answer is almost always more taxes," Forbes says. To finance the fund, politicians want to boost gasoline taxes and levy a tax on companies' foreign earnings.
So what should be done for the highway fund? "Just pump in general appropriations," Forbes recommends. "Then return the fund to its original 1950s purpose: to build and maintain the federal Interstate Highway System, period."
Elsewhere on the economic policy front, Connie Razza, director of strategic research at the Center for Popular Democracy, says that while the Great Recession officially lasted from December 2007 until June 2009, for many Americans, it's still not over.
And that's a good reason for the Federal Reserve to refrain from raising interest rates soon, she writes in The Nation.
Most economists expect the Fed to lift short-term rates off their record low in either September or December. "A Fed decision to raise rates amounts to a vote of confidence in the economy—a declaration that we have achieved the robust recovery we need," Razza says.
"But for many millions of Americans, the recovery has yet to arrive, and for them, a rate hike will be disastrous. It will put the brakes on an economy still trudging toward stability, stall progress on unemployment and slow wage growth even more."
The unemployment rate fell to a seven-year low of 5.3 percent in June, but wages have averaged an annual increase of just 2 percent since the Great Recession ended.
Source: NewsMax Finance
‘Conservatives Cannot Sit Back’: Coalition Wants to Meet With Fed Chair Janet Yellen
The Daily Signal - December 17, 2014, by Kate Scanlon - Federal Reserve chairwoman Janet Yellen met with...
The Daily Signal - December 17, 2014, by Kate Scanlon - Federal Reserve chairwoman Janet Yellen met with several left-leaning groups last month to discuss monetary policy. Now, several conservative organizations are asking for the same opportunity.
Twenty representatives from more than a dozen conservative groups hand-delivered their request to the Federal Reserve last week seeking a meeting with Yellen.
The groups, led by American Principles in Action, include Americans for Tax Reform, the Jack Kemp Foundation and Citizens for Limited Government.
The letter states that “thought leaders from the center-right” deserve the same opportunity because “the left by no means has a monopoly on concern for unemployment and wage stagnation.”
Steve Lonegan, director of monetary policy at American Principles in Action, told The Daily Signal:
Monetary policy is at the root of economic stability, critical for assuring equitable prosperity for all Americans. Conservatives are committed to building a sound economy where everyone, rich and poor, can grow and prosper.
The left has met with Janet Yellen in an effort to influence monetary policy. Conservatives cannot sit back and allow liberals to have sole voice with the Federal Reserve System.
Conservatives have the science, history, facts and philosophy for advancing good money that assures equitable prosperity for all Americans.
In November, Yellen met with representatives from several left-leaning groups, including The Center for Popular Democracy, a group that, according to its website, works with “high-impact base-building organizations, organizing alliances and progressive unions” to advance a “pro-worker, pro-immigrant, racial and economic justice agenda.”
Ady Barkan, an attorney with the center, told the Associated Press that she thought Yellen and other Fed officials “listened.”
“It was a very good conversation,” said Barkan. “They listened very intently, and they asked meaningful follow-up questions.”
According to The Daily Caller, the closed-door meeting was a source of frustration for conservatives because “the press was shut out of the meeting and no transcript made available.”
According to Bloomberg, the Nov. 14 meeting also included Fed governors Stanley Fischer, Jerome Powell and Lael Brainard.
The letter from the conservative groups argues that they deserve a similar meeting because “an evenhanded insight on achieving our shared goal of job creation and economic mobility would facilitate steps toward realization of this mutual objective.”
You can read the full letter here.
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Activists went all out to save Obamacare. Now they’re fighting for opioid recovery funds.
Activists went all out to save Obamacare. Now they’re fighting for opioid recovery funds.
It’s Phil Krauss’ first time protesting on Capitol Hill. He’s an advocate who kicked heroin three years ago when he was...
It’s Phil Krauss’ first time protesting on Capitol Hill. He’s an advocate who kicked heroin three years ago when he was 32 years old. He’s new to organizing but he’s surrounded by veterans, many who were just at the Russell Senate Office Building two months ago trying to save the Affordable Care Act (ACA).
Read the full article here.
Banks on the Run (Continued)
The Nation - April 30, 2013 - You can’t talk about poverty without talking about the practices of the big banks,...
The Nation - April 30, 2013 - You can’t talk about poverty without talking about the practices of the big banks, including their continuing refusal to stem the foreclosure crisis through mortgage principal reductions.
Consider this: Latinos lost 66 percent of their household wealth after the housing bubble burst, and African-American households lost 53 percent. Nearly 12 million families—disproportionately people of color—have either lost their homes or are currently in foreclosure, and another 16 million are underwater, owing more on their mortgages than their homes are worth.
Communities are decimated by boarded up houses and vacant lots, declining property values and the consequent loss of state and local revenues, and fewer opportunities to weather and recover from financial hardship. A new study from the Urban Institute indicates that white families now average six times the wealth of African-American and Latino families.
So when US Bank executives fled Minneapolis two weeks ago to hold their annual shareholders meeting in what they believed would be friendlier confines in Boise, it was important that activists from Minnesota and Oregon traveled to join Idahoans in an effort to hold the bank accountable. Then last week, Wells Fargo bankers traveled from San Francisco to Salt Lake City for their shareholders meeting, and activists again weren’t deterred—they came from California, Colorado and New York to stand with local groups and protest the bank’s practices.
“Wells Fargo moved the shareholders meeting to Salt Lake because last year there were 3,000 people in the streets in San Francisco,” said Maurice Weeks, campaign coordinator for the Alliance of Californians for Community Empowerment (ACCE), which had fifteen members make the eleven-hour trip to Utah. “We wanted them to know that they can’t hide from us.”
ACCE members attended the shareholders meeting as legal proxies. They were joined by members of the Neighborhood Economic Development Advocacy Project (NEDAP) from New York, the Colorado Student Power Alliance and local groups from Salt Lake City that were focused on Wells Fargo’s investments in private prisons and the impact on communities of color.
Several ACCE members in attendance were facing immediate foreclosures and welcomed the opportunity to tell Wells Fargo CEO John Stumpf—who was paid $22.87 million last year, more than any other banker—that they hadn’t been given a fair shake.
“We’re talking about folks who could pay their mortgages and stay in their houses with a modification, and Wells refuses,” said Weeks. “We’ve had situations where a HUD counselor tells our members that they qualify and Wells still denies a modification.”
More broadly, ACCE was there to demand that Wells commit to pursuing principal reductions—reducing the amount owed on a mortgage so that it reflects the fair market value of the property—wherever they are legally able to do so. A recent report from ACCE, the Center for Popular Democracy and the Home Defenders League suggests that foreclosing on the more than 11,600 California homes currently in Wells’s foreclosure pipeline—which are concentrated in poor and non-white communities—would cost the state approximately $3.3 billion due to the decreased value of the foreclosed properties, decreased value of homes in the surrounding communities and lost tax revenues. In contrast, a comprehensive program of principal reduction would stabilize households, increase tax revenues and boost the economic vitality of distressed communities. (Modifications also happen to be better for the investors who hold the mortgage, but unfortunately banks that service the mortgages—like Wells Fargo—can often make more money by foreclosing.)
A second key demand by ACCE members was that Wells Fargo report its data on principal reductions, short sales and foreclosures by race, income and zip code. Last year, the bank reached a $175 million settlement with the Department of Justice for allegedly charging African-American and Latino borrowers higher rates and fees and steering them into subprime loans when they should have qualified for regular loans.
“Our members want to make sure Wells isn’t still preying on communities of color,” said Weeks.
NEDAC presented a resolution for an independent investigation of Wells Fargo’s business practices in order to ensure that they don’t violate any fair lending or fair mortgage laws. Although the resolution was voted down, Weeks said it received more discussion than any other resolution presented to the shareholders.
“ACCE members—but also people we didn’t know—were all voicing concerns about Wells Fargo’s mortgage practices,” said Weeks.
According to Weeks, when Stumpf tried to move onto “business as usual,” Makayla Major, an ACCE member from East Oakland, stood up and shouted, “John Stumpf, you’re a liar and a crook. You are stealing too many homes in my neighborhood!” Weeks said that the room was lined with “forty or fifty” security guards and that “six or seven” immediately moved in to “make her be quiet.”
Then ACCE member Manuela Alvarez—who has been trying unsuccessfully to modify her subprime loan since her husband was injured on the job—said, “You are trying to steal my home, like you’ve stolen the homes of tens of thousands of other hard-working families. It’s time for you to be held accountable!”
She, too, was quickly surrounded by security.
ACCE member Melvin Willis then began reading a “Citizens Arrest Warrant” for Stumpf for “the following crimes: illegally foreclosing on millions of homeowners nationwide; intentionally targeting communities of color with predatory, high-cost loans; and gouging students with predatory student loans—usury.”
“He was immediately swarmed and at that point we were all escorted out of the room and the hotel,” said Weeks. “But John Stumpf and the shareholders definitely heard our message, and we made it clear that they can’t ignore these issues.”
Wells Fargo made $19 billion in profits last year and record profits last quarter. None of this would have been possible without the bank bailout and continued borrowing of taxpayer money at zero percent interest from the Federal Reserve (which Wells Fargo and the other big banks then turn around and loan to state and local governments at much higher rates).
ACCE and its allies showed up in Salt Lake City to take a stand against a wealth-stripping machine. There will be more actions ahead against Bank of America (May 9), Sallie Mae (May 30) and Walmart (June 7). Sign up to stay informed here.
“The message from the banks is that the foreclosure crisis is over, and a lot of the general public is hearing that,” said Weeks. “But we see on the ground that that’s far from true, and that Wells Fargo continues to profit at the expense of our communities. That’s why we’re keeping up the pressure of this campaign. We’re going to fight for our communities as hard as we possibly can.”
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Why Dianne Feinstein’s shutdown vote helps her re-election
Feinstein’s stand has earned her the approval, if not full-fledged embrace, of activists. “She came right on the Dream...
Feinstein’s stand has earned her the approval, if not full-fledged embrace, of activists.
“She came right on the Dream Act and that’s really important,” said Center for Popular Democracy’s Ady Barkan, who was among the activists leading a Jan. 3 rally at Feinstein’s Los Angeles office to press her on the issue.
Read the full article here.
Banks eye changes to CEO gatherings
BANKS EYE CHANGES TO CEO GATHERINGS — When the Financial Services Forum holds its next meeting, a key item on the...
BANKS EYE CHANGES TO CEO GATHERINGS — When the Financial Services Forum holds its next meeting, a key item on the agenda may well be the fate of the organization representing CEOs of the nation's largest banks, insurers and asset managers.
Sources familiar with the matter told M.M. that some banks are ready to hash out whether it makes sense to keep investing in the group, wind it down or consider other options, including merging its functions with those of another trade organization. The CEOs are scheduled to meet next in October. Its members include the heads of JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley.
Washington's banking industry insiders have been chattering about the direction of the group since longtime president and chief executive Rob Nichols was named last year as head of the larger American Bankers Association. The ABA represents a broad range of small, regional and large banks.
"There's an ongoing debate among all the banks whether it's worth having all these different trade associations," one source familiar with discussions said.
Forum spokeswoman Laena Fallon did not comment on any CEO discussions about overhauling the organization.
“The Forum CEOs are looking forward to their annual fall meeting and are working together on a number of shared industry priorities including cybersecurity, strengthening the financial system, and helping provide credit to drive the economy forward," Fallon said.
JACKSON HOLE KICKOFF — The Federal Reserve Bank of Kansas City's annual economic symposium starts today in Jackson Hole. The main event for the markets will be tomorrow morning's speech by Federal Reserve Chair Janet Yellen on the Fed's "monetary policy toolkit." Bloomberg's Steve Matthews and Jeff Black expect that "any description she offers of the U.S. economy will probably be crafted to keep an interest-rate rise on the table for the central bank’s policy meeting next month — without committing it to act." http://bloom.bg/2bOzoxt.
The Wall Street Journal's Greg Ip argues that central bankers are facing big questions about their relevance, because of the persistence of slow economic growth since the 2008 crisis and therefore low interest rates. He lays out what they may do next: http://on.wsj.com/2bWVnp2.
'FED UP' MEETING AHEAD OF THE FESTIVITIES — In a sign of the movement's growing clout, a coalition of labor and community groups banding together as "Fed Up" expect at least seven Fed presidents and one Fed governor to show up at a public meeting in Jackson Hole this afternoon. Among other things, they will talk about reforming the Fed's structure and how monetary policy affects working-class communities. Fed Up expects the attendee list to include Fed Governor (and potential Clinton Treasury Secretary) Lael Brainard, New York Fed President William Dudley, Kansas City Fed President Esther George and Minneapolis Fed President Neel Kashkari.
The meeting will be livestreamed here at 6:30 p.m. ET: http://bit.ly/2bAZAuy.
Fed Up director Ady Barkan told M.M. that a major topic of discussion will be a proposal to overhaul the structure of the Fed to minimize the influence of commercial banks. "We're going to be asking them whether they support that, and why not if they don't," Barkan said.
HAPPY THURSDAY — It's been a pleasure serving as your guest host the last couple of weeks. I'm handing it over to my colleagues tomorrow, so please keep sending tips to Pro Financial Services editor Mark McQuillan: mmcquillan@politico.com. Happy to keep in touch on Twitter @zachary.
THIS MORNING ON POLITICO PRO FINANCIAL SERVICES – VIctoria Guida on the GAO's opinion on community-based flood insurance -- and to get Morning Money every day before 6 a.m. -- please contact Pro Services at (703) 341-4600 or info@politicopro.com.
DRIVING THE DAY — Hillary Clinton will give a speech on the "disturbing 'alt-right' philosophy" of Donald Trump's campaign; 3 p.m. ET in Reno, Nev. ... Fed Up meets with Federal Reserve officials at 6:30 p.m. as the economic symposium begins in Jackson Hole. ...
FOR YOUR FALL CALENDAR — A federal appeals court has scheduled Oct. 24 oral arguments in the government's fight to keep MetLife under scrutiny of the Federal Reserve because of its potential systemic risks.
TIME TO MEASURE THE DRAPES, MAJORITY LEADER SCHUMER? — The New York Times gives Democrats a 60 percent chance of retaking the Senate. http://nyti.ms/2bOAPfg.
HOW DELAWARE DEFEATED CORPORATE SUNSHINE — A 3,000-word Reuters investigation on the state's fight against proposals that would reveal the owners of corporate shell companies: "[T]he proposed law continues to languish, thanks in part to [Delaware Secretary of State Jeffrey] Bullock. He was neither the first nor the only official to take up the fight, but became a leader in defending the status quo as worldwide support for change gained traction." http://reut.rs/2c8f8vb.
GOVERNMENT AT ODDS WITH ITSELF ON STUDENT LOANS — Bloomberg's Shahien Nasiripour on how the CFPB has become student loan borrowers' advocate against the Education Department: "Both the [CFPB] and the Obama administration share the same goal: improved customer service and fewer loan delinquencies. But industry observers see the administration as more accommodating to the industry's needs, while the consumer bureau has made clear that it's ready to sue. It's as if the Obama administration is using a carrot while the consumer bureau is brandishing a stick." http://bloom.bg/2bjb5uv.
EX-FED OFFICIAL WARNS AGAINST GOING EASY ON INFLATION — Former Fed Governor Kevin Warsh argues in a WSJ opinion piece that central bankers should resist calls to accommodate higher inflation, which has yet to rear its head, despite low interest rates: "A new inflation target would undermine the Fed’s commitment to any policy framework. It would please the denizens of Wall Street who pine for still-looser Fed policy. And households would be understandably miffed to receive a new lecture on unconventional monetary policy — this one on the benefits of higher prices." http://on.wsj.com/2bhsAqQ.
U.S., EU DUKE IT OUT OVER APPLE, TAXES — The FT's Barney Jopson and Arthur Beesley on the intensifying feud: "The U.S. has launched a stinging attack on the European Commission in a last-ditch bid to dissuade Brussels from hitting Apple with a demand for billions of euros in underpaid taxes. In a sharp escalation of the transatlantic feud, the U.S. Treasury Department issued a rare warning on Wednesday that Brussels was becoming a 'supernational tax authority' that threatened international agreements on tax reform. The criticism comes as the European Commission is finalizing a probe into an alleged sweetheart tax deal that Ireland granted to Apple, the biggest single case in a crackdown on corporate tax avoidance across the EU. After prolonged delays, a definitive ruling is expected next month." http://on.ft.com/2bhuJT5.
FLOOD INSURANCE POLITICS IN LOUISIANA SENATE RACE — Louisiana Insurance Commissioner Jim Donelon endorsed Republican Rep. Charles Boustany in the race for the state's open U.S. Senate seat, arguing that he is "the only candidate I trust to fight for affordable flood insurance." Congress faces a September 2017 deadline to reauthorize the government-run National Flood Insurance Program. "I look forward to working with Commissioner Donelon to write common-sense flood insurance policy as Louisiana’s next United States Senator when Congress begins work on reauthorizing the National Flood Insurance Program in 2017," Boustany said in a statement.
NYT'S TAKE ON GOLDMAN CATERING TO THE 'COMMON MAN' — From William Cohan in DealBook: "As it has done many times in its past to survive and to thrive, Goldman is in the process of reinvention. This explains Marcus, its new online lending business named after the company’s founder, Marcus Goldman, along with GS Bank, its online savings account business with no minimum balance requirements. After all these years, Goldman Sachs has suddenly discovered retail banking. But it is not out of altruism or charity, nor is it nefarious. It is all about making money from money, which has always been Goldman’s specialty." http://nyti.ms/2bCDhcf.
Read more: http://www.politico.com/tipsheets/morning-money/2016/08/banks-eye-change...
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By ZACHARY WARMBRODT
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Report Calling for More Oversight to Prevent Charter School Fraud Draws Rebuke
LA Times - March 23, 2015, by Zahira Torres - California lawmakers must strengthen financial oversight of charter...
LA Times - March 23, 2015, by Zahira Torres - California lawmakers must strengthen financial oversight of charter schools to stem cases of fraud and mismanagement that have already cost taxpayers $81 million, according to a new report from several advocacy groups.
The report by the Center for Popular Democracy, the Alliance of Californians for Community Empowerment Institute and Public Advocates Inc., said state and local leaders rely too heavily on self-reporting through whistleblowers or audits paid for by charter school operators. Local leaders also lack the staff and training to monitor charter schools and identify fraud, according to the report.
But the California Charter Schools Assn. offered a swift rebuke of the report in a two-page statement that said the authors offered dated examples of fraud and did little to prove that systemic problems exist.
The report pointed to cases that revealed $81 million in misused funds at charter schools over the last two decades, but said those do not reflect the true cost to taxpayers because weak financial controls allow fraud and mismanagement to go undetected.
Last year, the Los Angeles County Board of Education revoked the charter for Wisdom Academy of Young Scientists after auditors found that administrators funneled $2.6 million to the former director, her family and close associates.
“Given the rapid and continuing expansion of the charter school industry and the tremendous investment of public dollars, California must act now to reform its oversight system," the report said. "Without reform, California stands to lose millions of dollars as a result of charter school fraud, waste and mismanagement.”
The report said more focus must be placed on the state's 1,000-plus charter schools which received $3 billion in public funding last year.
Charter schools are publicly-funded but privately managed.
The California Charter Schools Assn. released a two-page statement Tuesday questioning the accuracy of the report and the authors' intentions. The group said it agreed that public dollars should be used appropriately, but argued that the report offered few examples of fraud.
In those cases, charter schools closed or made large-scale changes that helped prevent fraud in the future, according to the association.
"While we don't presume to understand the motives behind this report, we do know that California is a state where the charter school sector, authorizers and legislators have come together to put into place real solutions," the group said in the statement.
Recommendations in the report include mandating audits that would be specifically geared toward preventing fraud; requiring charter schools to set up internal risk management programs that would conduct annual fraud risk assessments; ranking charter audits by level of fraud risk and denying requests for new charter schools that do not commit to fraud controls.
The report did not study oversight policies or make recommendations for traditional public schools.
"To assume that there is greater risk at charter schools than school districts, particularly in light of all the real time oversight on financial reports, is simply unfounded," the charter school association said in its statement.
Kyle Serrette, director of education at the Center for Popular Democracy, said many public school systems employ internal auditors and have developed policies to help prevent fraud. But he said public schools should face the same scrutiny.
“There is no proactive system to monitor for fraud, waste and abuse,” Serrette said about the charter schools studied in the report. “California set up a system that prosecutes fraud rather than prevents it.”
He added, "We want to be able to detect the sheep from the sheep in wolves' clothing.”
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Ciudades Invierten Para Que Más Inmigrantes se Hagan Ciudadanos
Vivelo Hoy - September 17, 2014, by Jaime Reyes - Chicago se unió a las ciudades de los Angeles y Nueva York en el...
Vivelo Hoy - September 17, 2014, by Jaime Reyes - Chicago se unió a las ciudades de los Angeles y Nueva York en el programa “Cities for Citizenship” para que más inmigrantes legales se hagan ciudadanos.
El programa, que además ayudará a inmigrantes con micropréstamos, servicios financieros y legales, será financiado por la corporación Citigroup, con más de $1 millón, y será coordinado por las organizaciones no lucrativas Center for Popular Democracy y National Partnership for New Americans.
Según un comunicado del municipio de Chicago, en Estados Unidos hay más de 8.8 millones de residentes legales, quienes son elegibles para ser ciudadanos.
“Los inmigrantes que se naturalizan hacen grandes contribuciones a nuestras comunidades, ciudades y país y nos conviene colectivamente promover la ciudadanía”, indicó el alcalde de Chicago, Rahm Emanuel, junto a los alcaldes Eric Garcetti, de los Angeles y Bill de Blasio, de Nueva York
Para leer más de nuestra cobertura sobre inmigrantes, visite este enlace.
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Donald Trump: Evictor-in-chief
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration...
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration announced it intends to end the Deferred Action for Childhood Arrivals (DACA).
Many DACA recipients, employed in the construction industry, built the very buildings that made real-estate moguls like Trump rich.
Everyday, the people of New York City are fighting landlords and their racist policies. This past couple of weeks have been no exception. On Wednesday, Aug. 30, thousands turned out for a march to protect DACA. It was organized by 15 different community organizations, including 32BJ SEIU, Working Families Party, Make the Road New York, New York Immigration Coalition, United We Dream, Tenants and Neighbors, Churches United For Fair Housing (CUFFH), New York Communities for Change, Alliance for Quality Education (AQE), VOCAL NY, the Women’s March, and the Center for Popular Democracy. Thousands in cities and municipalities around the country also rallied and marched to defend DACA.
Read the full article here.
Building a National People’s Movement
Over the past year, millions of workers have earned a raise as a result of the growing boldness of workers and...
Over the past year, millions of workers have earned a raise as a result of the growing boldness of workers and organizers across the country. The success of the Fight for 15 and similar movements is no accident. Rather, it is the product of years of experimentation, perseverance, and creativity—and today, organizers may have finally hit on a powerful formula for helping workers take back some measure of power.
This success stems first and foremost from a basic reality: The economy in its current state is just not working for Americans. Nearly a decade after the 2008 recession, millions of families around the country have yet to be even touched by the recovery. Wages have stayed flat even as worker productivity has soared. Too many are stuck in jobs that don’t pay the bills, working hard and failing to even stay afloat.
Moreover, it has become increasingly clear that their suffering is by design, not a product of simple economics. The bad behavior of major corporations has been a driving force. Walmart and McDonald’s have come under fire for paying workers wages that force them onto public assistance to cover their basic needs. Pharmacy chains like Walgreens “promote” workers to salaried positions that require more hours without the chance at overtime pay. And countless businesses, from pizza chains to car washes, rob workers of an honest day’s pay through different forms of wage theft.
This atmosphere is ripe for the emergence of policies that give workers the pay they deserve. Getting these policies in place, however, requires a fight.
For years, community and labor organizations around the country supported workers by helping them organize themselves, going store by store, employer by employer. More recently, though, organizations such as Make the Road New York, Working Washington, New York Communities for Change, and others have begun to target entire industries—and, in turn, the economy as a whole. Pinning the blame on bad practices that are common to all companies—rather than one individual employer—allowed them to make the case that the problem demanded a widespread response.
Moreover, the demands have grown bigger, escalating from modest increases in the minimum wage to $8.75 to a more ambitious $10.10 and then all the way to $15. And while minimum-wage fights were traditionally separate from those for paid sick days, many organizers realized linking the two made for a far more powerful and galvanizing campaigns. The more ambitious our demands became, the more effective we have become, demonstrating the political salience of transformative demands.
Finally, more money for robust field campaigns was a critical part of the solution. Unions like the Service Employees International Union made a strategic decision to invest big in campaigns that would lift up the needs of all workers—including those who weren’t part of their union, a fundamentally new approach to organizing. As momentum grew, other unions and foundations have joined the cause, recognizing that helping working women and men to stand up for themselves and their families helps the whole economy. This funding has enabled organizations to launch bigger, more ambitious campaigns and to have the firepower needed to win them.
The results have been nothing short of extraordinary. Just a few years ago, when fast-food workers first went on strike in New York City, a $15 wage was unimaginable. This year, it became a reality in two of the largest states in the country—New York and California—affecting nearly nine million workers. Nearly 30 states have taken action to lift their minimum wage above the federal threshold of $7.25—and almost ten have done so for tipped workers. Ten states and more than a dozen cities have passed paid sick days for workers.
In the coming year, more than a dozen states and cities ranging from Wisconsin to Pennsylvania will be seeking a raise for their residents, reaching as high as $15 in many places. And, with half the country concentrated in America’s top 35 metro areas, the impact of these local laws has been disproportionate.
Today, organizers around the country are setting their sights on bigger goals, applying the lessons learned from the push for higher wages. We will be working to improve access to affordable housing, enact fair scheduling reforms that protect workers from unpredictable hours, and reduce the parasitic power and tax avoidance of hedge funds and other major corporations.
Yet individual victories are not enough. To truly convert this energy into lasting change, we will need a unified, nationwide movement that situates economic justice as just one part of a broader agenda of opportunity. And we will need this movement to be rooted in resilient, democratic people’s organizations on the front lines, all across the country.
This weekend, the Center for Popular Democracy is convening a People’s Convention that will bring together thousands of organizers from community groups across the country. The weekend will provide an opportunity to share lessons learned, to strategize together and to harness the energy of the past year into a powerful organized movement for progressive change through the next decade.
By providing the space for community leaders and organizers to begin working as one, we will begin to shift the balance of power back to working families and ensure the voices calling out for a future with dignity and justice will not fade out.
By Andrew Friedman
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5 days ago