Schumer and Pelosi on Opposite Sides of Budget Deal, As the Fate of DREAMers Hangs in the Balance
Schumer and Pelosi on Opposite Sides of Budget Deal, As the Fate of DREAMers Hangs in the Balance
After failing to force a government shutdown before Christmas, advocates from a variety of groups, including United We...
After failing to force a government shutdown before Christmas, advocates from a variety of groups, including United We Dream, The Center for Popular Democracy, and Make The Road, managed to convince Senate Democrats to do so in January.
Read the full article here.
National educators tour Kentucky Family Resource and Youth Service Centers
National educators tour Kentucky Family Resource and Youth Service Centers
National education leaders are taking notice of the impact the Kentucky Family Resource and Youth Service Centers (...
National education leaders are taking notice of the impact the Kentucky Family Resource and Youth Service Centers (FRYSC) are making across the commonwealth.
An impressive list of these leaders visited Kentucky in late September to see first-hand the array of services the FRYSC Program provides by serving as the vital link between classrooms, families, and communities.
Officials from the National Education Association, Center for Popular Democracy, and the Communities in schools organization initiated the trip.
Participants represented a multi- disciplinary group of educational activists as well as teachers, principles and administrators from public school systems across the country.
Doug Jones, manager of FRYSC Region 7, helped organize the trip by choosing sites for tours in both rural and urban areas.
Source: KFVS12.com
Ahead of Black Friday, Walmart Workers Brief Capitol Hill Lawmakers
People's World - November 19, 2014 - Sen. Elizabeth Warren, D, Mass., Rep. George Miller, D,Calif., and legislative...
People's World - November 19, 2014 - Sen. Elizabeth Warren, D, Mass., Rep. George Miller, D,Calif., and legislative experts held a committee briefing today, titled Walmart and the Economic Insecurity of American Families. Only a week before Black Friday job actions that are expected at more than 1,000 Walmart stores nationwide the lawmakers heard from members of OUR Walmart on how the country's largest employer is creating an economic crisis for working families in America.
"I was glad to join Walmart employees today to support efforts to push back against practices by Walmart and other big corporations that make it hard for working families to make ends meet," said Warren. "Hardworking men and women across the country want a fighting chance to build a future for themselves and their families. We need to give workers this chance by raising the minimum wage, providing some basic fairness in scheduling, and fighting for equal pay for equal work."
"Walmart's shoddy business model is singlehandedly wreaking havoc on American families across the country and making it impossible for hundreds of thousands of workers to have a shot at the American Dream," said Miller, senior Democrat on the House Committee on Education and the Workforce. "America's workers and their families deserve better than they're getting from Walmart today-they deserve higher wages, less erratic schedules, and equal pay regardless of their gender. The courage of Walmart workers who are engaged in sit-down strikes to protest the company's illegal silencing of workers who have called for better jobs and full-time work is essential to creating real change."
At the Senate Health, Education, Labor and Pensions Committee briefing, Walmart workers discussed how Walmart's low pay, manipulation of scheduling and illegal threats to workers have created a new norm across industries that makes it nearly impossible for workers to hold down second jobs, arrange child care, go to school or manage health conditions.
"With Walmart's low-wages and hectic schedules, too many Walmart workers are left on the edge of poverty. But all too often when we stand up, Walmart tries to silence us. Just days before I planned to participate in our first sit-down strike in LA, Walmart fired me for speaking up for better wages and hours, but I'm still fighting today because my former colleagues like Fatmata Jabbie and Cantare Davunt deserve better," said Evelin Cruz, former Walmart employee and OUR Walmart member.
The briefing highlighted the Schedules That Work Act, Fair Minimum Wage Act and Paycheck Fairness Act-legislation that would force the company to improve its pay and hours for hundreds of thousands of American workers. Legislative experts including Carol Joyner of the Labor Project for Working Families, Amy Traub of Demos and Carrie Gleason of the Center for Popular Democracy joined the elected officials and Walmart associates on the panel to discuss the need for legislative action to set a new standard at the country's largest employer.
The action from elected officials comes as an increasing number of Americans and Walmart workers point to OUR Walmart as making significant changes at the country's largest retailer. Most recently, after public calls from OUR Walmart, the company committed to raise wages for its lowest paid workers and rolled out a new scheduling system that allows workers to sign up for open shifts. To date, workers at more than 2,100 Walmart stores nationwide have signed a petition calling on Walmart and the Waltons to publicly commit to paying $15 an hour and providing consistent, full-time hours.
"In three short years, OUR Walmart has grown to a powerful, national network that is making big changes at the country's largest employer," said Cantare Davunt, a Walmart customer service manager and OUR Walmart member during the briefing today."But more needs to be done. Legislative action would have a huge impact, but Walmart can lead the way now by adopting policies that give us the schedules and pay we need."
The briefing comes before next week's Black Friday nationwide strikes. Tens of thousands of workers, teachers, voters, clergy, environmentalists, and civil rights leaders will join workers at more than 1,600 protests, speaking out against retaliation and calling on Walmart and the Walton family to publicly commit to $15 an hour and provide full-time work.
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Denver's rapid charter expansion yields underwhelming results
Denver's rapid charter expansion yields underwhelming results
Dive Brief: Twenty-seven new charter schools have opened in Denver in the last five years with six more set to open...
Dive Brief:
Twenty-seven new charter schools have opened in Denver in the last five years with six more set to open this summer, but critics point to data about underwhelming performance and examples of forced choice that parents don’t want.
An Alternet article reposted by Salon reports some of the charters that have replaced traditional school options practice harsh discipline disproportionately levied against students of color, and opponents argue a small, powerful circle of local leaders have pushed a charter agenda with the support of big money from outside of the city that has bought electoral support.
A report from the Center for Popular Democracy identified 38% of Denver’s charters as performing “significantly below expectations,” and some parents say they’d prefer more funding and support for neighborhood schools over new expenditures on charters.
Dive Insight:
Charter school performance across the country is mixed. There are high-performing charter schools that have impressive student outcomes that proponents can point to as evidence the charter sector should be expanded. At the same time, there are mediocre or low-performing charter schools that critics can point to as saying the sector does nothing more than siphon funding from traditional schools.
While the CPD study found 38% of Denver’s charters to be significantly underperforming, another found six out of eight of the city’s top schools to be charters. A report to the Colorado General Assembly based on data from the 2011-12 school year found similarly mixed results, where charters perform better on some metrics but not on others. Denver is not the only city engaging in this debate, which has become familiar in virtually every major urban area in the country.
By Tara García Mathewson
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Rally calling for immigration reform include scores of undocumented immigrants
Penn Live – August 5, 2013, by Ivy DeJesus - Close to 100 protesters rallied on Monday within ear shot of a political...
Penn Live – August 5, 2013, by Ivy DeJesus - Close to 100 protesters rallied on Monday within ear shot of a political event in Harrisburg headlined by House Speaker John Boehner and Rep. Scott Perry (PA-4) to demand immigration reform.
Chanting in English and Spanish, protesters made their way from the City Island parking lot up to the path leading to Metro Bank Park where the Republican lawmakers held a fundraiser.
Protesters carried placards and shouted in unison a string of chants, including: “Serve the needy, not the greedy,” and “Move Boehner, get out of the way. You’re not welcome in Pa.”
The rally was organized by a coalition of advocacy groups, among them Keystone Progress, Pennsylvanians United for Immigration Reform, Center for Popular Democracy and Central PA Area Labor Federation. The majority of participants drove in from other parts of the state or were bused in.
As House members return to their districts for August recess, representatives of the coalition said they intended to take their messages to lawmakers’ local offices.
Perry’s 4th congressional district encompasses York County and parts of Dauphin County.
Hiro Nishikawa, one of the protesters, said that the long-simmering debate is finally getting widespread public attention.
Nishikawa said immigration policy continues to be dictated by outdated laws, including the 1996 law that mandates detention and apprehension of undocumented immigrants who have any prior police records. The law has led to approximately 400,000 undocumented immigrants being detained under the Obama Administration.
“People recognize things are messed up,” Nishikawa said. “The huge concern is the fairness of the law. It needs to be changed.”
Amid widespread calls for an immigration policy overhaul, a deeply divided Congress has been unable to advance any comprehensive reform. President Obama has used his executive power to push some laws that provide pathways to citizenship, including an amnesty program for qualified young people. In spite of a bipartisan Senate bill approved in June, Washington insiders are largely in agreement that the House is not likely to agree on a major bill this year.“We are entrenched in the culture that is America..we are part of the people that are here.” – Jorge Salazar
Rally participants represented a diverse group of people, including church and labor groups, immigrants from a number of countries, and even undocumented immigrants.
Carmen Guerrero, a community organizer from outside Philadelphia, said lawmakers have not given the immigration issue the urgency it deserves.
“The law is broken,” Guerrero said in Spanish. She came from Mexico 13 years ago. “This is a country of immigrants. It’s a country where immigration has to keep moving forward with its law. It’s been too long without reform. It has been reformed but only to attack the immigrant community, to suppress the community.”
Guerrero said that U.S. immigration policy is so cumbersome, many immigrants prefer to sidestep the system and enter the country illegally. She said most countries face daunting obstacles for legal entry, including excessively long waiting periods.
“The opportunity to come here legally is too small,” she said. “At the end of the day, we rather break the law. There is no realization to be able to come legally and be part of society, as we should.”
Guerrero, a single mother of three who has worked two full-time jobs back to back as a hotel housekeeper and restaurant dishwasher, says she pays taxes and is in no way taking jobs away from citizens.
“We are the landscapers, the service, the dishwashsers at the restaurants and hotels,” she said. “I don’t think a professional would want those jobs.” -Jorge Salazar
Another undocumented immigrant, Jorge Salazar acknowledged that it would be difficult to process 11 million undocumented immigrants through the immigration system, but that in the end, it would not burden taxpayers.
“It’s not going to be costly,” he said. “We are going to pay for it. Immigration is one of the few government programs funded by the applicants.”
Salazar’s family arrived from Bolivia 23 years ago, but due to a series of legal mistakes, his family found itself staying put once their visa expired.
Salazar said he considers himself a part of the American society; he said he works and goes to school and is an active member of his community. He traveled to Harrisburg from his Philadelphia suburb home.
He said he and his family were concerned that they were risking deportation by being vocally and actively involved in calling for immigration reform.
“The reality is we have to do this,” he said. “People need to know that we are your neighbors, we are next to you in school, we are next to you in church. All my friends are American citizens. We are entrenched in the culture that is America..we are part of the people that are here.”
Source
Protesters disrupt Senate hearing on health care bill that may be dead
Protesters disrupt Senate hearing on health care bill that may be dead
WASHINGTON — The Republican bill to replace Obamacare appears all but dead in the Senate, but the chamber’s Finance...
WASHINGTON — The Republican bill to replace Obamacare appears all but dead in the Senate, but the chamber’s Finance Committee proceeded with a hearing on it anyway Monday afternoon.
Finance Chairman Orrin Hatch asked by a reporter what chance the bill has of passing, replied “Zero. ... I don’t think it has much chance. The Democrats aren’t going to support it. They’re too interested in demagoguing it.”
Read the full article here.
Here's How to Make the Fed More Transparent and Accountable
The Federal Reserve has long faced fierce scrutiny from members of Congress, community leaders, and the press for its...
The Federal Reserve has long faced fierce scrutiny from members of Congress, community leaders, and the press for its lack of transparency. Fed Chair Janet Yellen, still early in her term, has signaled an intention to improve transparency and hold the Fed accountable to the public interest, and she’ll face an important test this month as she starts deciding whom to appoint to the newly formed Community Advisory Council.
In the most recent example of Fed’s insular system of governance, Bloomberg Business revealed concerning news about the recent appointment of Patrick Harker as president of the Philadelphia Federal Reserve. Harker had served on the bank’s Board of Directors prior to his appointment, and was even on the search committee interviewing candidates for the presidential slot. Then, in a behind-the-scenes maneuver reminiscent of Dick Cheney’s infamous self-selection as George W. Bush’s running mate, Harker became a candidate for the job himself, and was swiftly chosen by his Board colleagues. Harker’s shadowy appointment process was par for the course at the Fed. In Dallas, the presidential appointment process has been downright dynastic: the outgoing president, Richard Fisher, appointed an advisory committee made up of the people who appointed him to help select his successor.
Chair Yellen has an immediate opportunity to reverse course and change the face of the Fed. This year, the Fed announced the creation of a Community Advisory Council, intended to offer Fed leaders “diverse perspectives” on the economy, “with a particular focus on the concerns of low- and moderate-income populations.” Applications for the Community Advisory Council were due last week. The question facing Fed officials is whether they will appoint individuals to the Council who represent low- and moderate-income voices, or whether the Council will be another elite echo chamber (one earlier predecessor to the Council was heavy on members from for-profit lenders like Capital One and Citigroup—hardly organizations representing the interests of working families).
The announcement of the CAC was a direct response to growing demand for greater public representation at the Fed, and it’s not hard to see why. Of the 108 members of the 12 banks’ boards of directors (which select and oversee those 12 presidents), only 15 come from the nonprofit sector, academia, or labor organizations. The other 93 come from corporations or banks, even though the law requires that two-thirds represent a “diverse” set of interests, including those of labor and consumers. Fed officials lack diversity in other ways, too: among governors and presidents, all but one are white, and the vast majority are men.
Fed officials have huge power over the American economy: They vote on crucial monetary policy decisions, determining whether we reach full employment with rising wages for all or whether the economy continues toward stagnation and inequality. As long as Fed bodies are dominated by the financial sector, their decisions will reflect the perspectives of the very entities the Fed is meant to oversee, rather than the working families across the country who need higher wages and more equitable economic growth.
So, who will lead the Fed in the years to come? Next February, the terms of all 12 regional Fed presidents expire. Their respective Boards of Directors will decide whether to reappoint the presidents or replace them. A coalition of community-based organizations, faith leaders, policy advocates, and labor unions are calling for the Federal Reserve to make this process more transparent. At a bare minimum, the banks should publicize the schedule for the decision-making, the names and roles of the decision-makers, the criteria that will govern the process, and the names of candidates under consideration. A more public process would involve the opportunity for members of the public to serve on the search committees, mechanisms for the public to submit questions and receive answers from prospective candidates, and public forums where Fed officials actually engage in dialogue with the people whom they are supposed to represent. Chair Yellen and officials at the Fed have the power to implement such reforms, and their decisions will speak volumes about their commitment to building an independent central bank with democratic legitimacy.
Janet Yellen’s appointment as the first woman to lead the Fed signaled that change might be coming to a historically opaque institution. But to truly transform the Fed, Yellen and her fellow governors must ensure that the voices of working families aren’t drowned out by wealthy financial interests. The first step is ensuring that the new CAC lives up to its mission by including women, people of color, and representatives of organizations with low- and moderate-income members. It could even directly install some low- and moderate-income individuals on the Council. That would indeed bring new perspective to an institution that has, for too long, been dominated by the voices of America’s elite.
Source: The American Prospect
As debate heats up over interest rates, progressive movement mobilizes behind a pro-wages, racial equity agenda
Following the call, participants released the following statements: Dawn O’Neal, teaching assistant and member of Rise...
Following the call, participants released the following statements:
Dawn O’Neal, teaching assistant and member of Rise Up Georgia: Atlanta, Ga.
"When the Fed meets in Jackson Hole to discuss inflation, they will be almost 2,000 miles away from South DeKalb County. Here, the lines of people desperate for even a temporary job at the local work pool stretches around the block – those people include my husband. Together, despite our hard work and best efforts, we still struggle at the end of the month with health and household bills. That’s not just our story, but that of our neighbors and our community. For members of the Fed looking to slow down the economy, I’d invite them to come here to East Atlanta. It’s not easy to live here; for some people the economy means our very survival.”
Keesha Moore, intern, job seeker, and member of Action United: Philadelphia, Penn.
“I have been searching for employment for 7 months now. I am 36 years old and I have a family to provide for and a house to maintain. I know I’m not alone when saying that the way the economy is today my household needs dual income in order to maintain and stay afloat. In Philadelphia, mine is a story all too common: We need more jobs available and fair wages. I don’t think that people who do not live here or pay taxes here should be able to take our jobs away from us with the stroke of a pen. At Jackson Hole, we will remind them that our communities also deserve a say in this debate.”
Josh Bivens, Economic Policy Institute
“The recovery will never reach workers’ wages if the Federal Reserve prematurely slows the recovery. The Fed should at least keep short term rates low until we reach a genuine full recovery from the Great Recession. At a minimum, this means waiting until wage growth is consistent with the Fed’s overall inflation targets and the labor market is back to pre–Great Recession health. And since the pre-Great Recession labor market was likely not at genuine full-employment, we can probably be even more aggressive in that in letting unemployment decline.”
Ady Barkan, campaign director for the Fed Up at the Center for Popular Democracy
“Members of the Fed Up coalition across the country have rallied for a more inclusive Federal Reserve that prioritizes wages and promotes a recovery in all of our communities. Our members have shared their stories with regional Fed Presidents and informed them why raising the rates prematurely would be disastrous in our communities, where many are still mired in a Great Recession. In Jackson Hole, we will put a faces and stories within reach of the Federal Reserve. Before they can have a real discussion of raising interest rates and slowing the economy, they should understand first-hand who it would affect.”
The Fed Up campaign, anchored at the Center for Popular Democracy, will hold a number of teach-ins in Jackson Hole, Wyo. during the Federal Reserve’s symposium from August 27 to 29 to convey why it does not make sense to stop the recovery for America’s families. The teach-ins will be led by workers, economists, and Fed Up allies and will cover an array of topics like the Fed’s role in full employment, the intersection of Black Lives Matter and the Fed, the selection process for regional bank presidents, a historical look at inflation, and more.
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Why the Federal Reserve Needs To Go Beyond Interest Rate Policy
Why the Federal Reserve Needs To Go Beyond Interest Rate Policy
KIM BROWN, TRNN: Welcome to the Real News Network. Im Kim Brown in Baltimore. Interests rates will remain unchanged....
KIM BROWN, TRNN: Welcome to the Real News Network. Im Kim Brown in Baltimore.
Interests rates will remain unchanged. That coming out of this weeks meeting of the Federal Reserve in DC. The official word from the feds, per their own statement, was that job gains have been solid, that household spending has been growing strongly, and inflation is running below expectations. But does this mean that the economy is actually doing well or are we still in a recession dressed up to appear better than what it actually is?
Joining us today from New York City is Jerald Epstein. Jerald is the co-director of the Political Economy Research Institute. Hes also professor of economics at the University of Massachusetts at Amherst. Jerald welcome back.
JERALD EPSTEIN: Thanks a lot Kim.
BROWN: Jerald lets start with the basics and then we can delve a little bit deeper. If the economy is showing the signs of strength as the Fed has indicated, then why didnt they raise interest rates now and do you think that they are likely to do so at all this year?
EPSTEIN: Well I think Janet Yellen whos the chair of the Fed, is aware that even though its been showing strength and the economy has been growing moderately for several years now, that theres still much more room to go. That is that wage growth has gone up a tiny bit more than inflation recently, its still pretty stagnant, pretty flat line and she knows theres still a number of workers out that who are so discouraged that they havent joined the labor force. So Janet Yellen is concerned about the labor force and the growth of wages but the problem is twofold. First of all, its always dangerous to raise interest rates around election time. So traditionally the federal reserve, theyll try not to do that, move interest rates right around an election. So thats one factor leading them not to do anything.
The second factor leading them not to do anything is that keeping inflation under control is one of their main mandates. They have two. Maintaining inflation at a low rate and they have a 2% target, and reaching high employment. Inflation is still below 2%. Theres really no signs of inflation going up. So theres no compelling reason from the point of view of the macro economy to raise interest rates.
BROWN: Its funny that you mention that the Fed is less likely to raise interest rates or even mess with the interest rate around election time because the Republican nominee for president, Donald Trump has already accused Chairwoman Yellen of keeping the interest rates unchanged in order to appease the Obama administration. She of course has denied this. What are your thoughts?
EPSTEIN: Well I dont think she did it for Clinton or Obama. But it is I think a tradition and its common for Federal Reserves not to raise and certainly change interest rates right before an election. So she is in sort of a tradition of what the Federal Reserve typically does. And its also typical especially recently for politicians to make the Federal Reserve the whipping boy or girl for political reasons. Sometimes theres good reasons. For that.
But there was something kind of unusual for this meeting. In the recent meetings its been unanimous to keep interest rates the same or to mostly do what the Federal Reserve has done. But this time it was quite contentious. There were actually 3 people on the federal open market committee, the ones who make this decision who voted to raise interest rates.
This is kind of challenge to Janet Yellens leadership in this regard and it also shows what kind of pressure the Federal Reserve is under, particularly from the banks and the mutual fund industry, the insurance industry because with interest rates being so low, its very difficult for them to eek out much of a profit. And is typically the case when interest rates are very low for a very long period of time. Some sectors and very powerful important sectors of the financial industry push very hard for interest rates to be raised and they usually get a pretty good hearing at the Federal Reserve [be]cause the Federal Reserve has traditionally done pretty much what the banks have wanted them to do.
BROWN: Jerald it seems as if theres not enough agreement between the Federal Reserve and among every day Americans on how well this economic recovery is going. So lets unpack some of the elements of this. Starting with Chairwoman Janet Yellens comments on labor markets.
JANET YELLEN: Were generally pleased with the progress of the economy and the decision not to raise rates today and to wait for some further evidence that were continuing on this course is largely based on the judgement that were not seeing evidence that the economy is overheating and that we are seeing evidence that people are being drawn in in larger numbers than what I wouldve expected into the labor market and that thats healthy to continue.
BROWN: So the unemployment rate was under 5% in August and the caveat to that is more Americans are working part-time jobs. Plus, the gig economy is one way that people are surviving and supplementing their income. So is unemployment published monthly by the Bureau of Labor statistics, giving us an accurate figure on the number of Americans who are out of the labor force?
EPSTEIN: They dont have an accurate number. They have estimates and I think its true that theres still quite a few so called discouraged workers who are out of the labor force. Its also the case like we said in the beginning that wage growth has been stagnant. Look, the Federal Reserve has a real dilemma here. On the one hand and this is typically the case with Janet Yellen who I think does want to indicate that their policies have had some effect, otherwise nobody will want them to continue these policies. And she thinks that they have had some positive effect on employment and I think they have.
But on the other hand their policies cannot turn around the long run decline of our economy. We need much different kinds, much bigger, much more radical policies in terms of public investment to generate jobs, hiking the minimum wage to a living wage, providing much more in a way of a safety net for workers, protecting pensions and other investments. So the list is very, very broad and very deep. And the Federal Reserve has been pretty reluctant to go further down that list.
The Federal Reserve could do more. They could use different tools to invest directly in the economy. Theres a group called Fed Up which has proposed that they do this. But Janet Yellen and her committee want to stay pretty close to their broader toolkit that theyve developed and are really afraid to, I think take more radical action which they plausibly could take.
But in the end it really raises questions of the Federal Reserves legitimacy. Can they take some kind of really radical action without the broader government saying go ahead and do it? And until the political stalemate we have is resolved, Im afraid the Federal Reserve cant do much more and that means this kind of stagnation in wages and so forth is going to continue.
BROWN: Jerald you raise an excellent point about wage stagnation and how wages have largely remained flat going back 20, 30, and even 40 years depending on who you ask. But new census data this month says that household income jumped over 5% which is the largest such gain in decades but that top 1% of Americans saw an increase of around 7% rise in their income. If most of the economic recovery gained since the great recession of 2007, 2008--if most of these gains have gone to the top1%, does it still count as a recovery if its not being felt by the majority of Americans?
EPSTEIN: No it does and this has been a very lopsided so called recovery and yes there have been some modest gains for the middle class and some working class people. So the Federal Reserve actions have had some positive effect. But until you really change the structure, change the tax policies so that the wealthy have to pay more of their taxes so the multinational corporations cant park their earnings overseas and not pay any taxes like Apple and other corporations have been doing until you have much more aggressive jobs programs to bring about a Green transition and many other things. Were not going to have a real recovery. These kind of very small sorts of gains which are gains but arent enough are going to be the best were going to see.
BROWN: Jerald whats keeping inflation in check right now? Is it cheap oil prices?
EPSTEIN: Its several things. First of all, cheap oil prices and other commodity prices are one thing. But theyre also partially related to the headwinds in the global economy against economic growth. Chinas not growing as much so theyre not demanding as much oil and other commodities. Many other developing countries arent growing so fast. Europe isnt growing hardly at all.
So this really dampens the demand for all of these commodities and with these prices going down that does keep inflation in check. The other thing is, all of the forces that are keeping wages in check. That is, imports from China, the union busting thats been going on, the threat of multinational corporations to move abroad. All of these factors plus more are making it very difficult for workers to have their wages go up. Wages are a cost so that to some extent keep inflation in check as well.
And finally you have the retail industry thats subject to loss of competition that just keeps squeezing and squeezing and squeezing workers more and more. Until we get big increase in the minimum wage, until we get policies to put workers back to work at well-paying jobs, were not going to see real wages go up and were also not going to see prices go up very much at all.
BROWN: And lastly Jerald, the wealthiest Americans, the top 1% of Americans are fairing very well and we are experiencing income inequality probably at the largest gap since the Gilded Age. We have seen so many sickle economic bubble burst over the past 20 years with the tech bubble bursting in the late 90s and the housing bubble bursting in the mid 00s. Are we at risk of another such economic bubble burst on the horizon any time soon.
EPSTEIN: Yes, were always at that kind of risk. Its hard to see where exactly the bubble would come from. There are little bubblets going on all over the place that dont seem so broad and connected up with debt and the financial system that it seems as so were going to have a kind of bubble burst the way we saw in 2007, 2008 but we might have bubblets burst in the high tech industry and so forth. Whats more likely is this slow burn of stagnation and increases in distress effecting so many people in the United States except for the wealthy who will continue to do very well. Not only income inequality at all-time highs, wealth inequality, how much assets people own has grown and grow and grow and grown. If you look for example, if the net wealth, that is assets minus liabilities, minus debt of African Americans in this country. A report recently came out that said, the median net wealth of African Americans is zero. Theres no net wealth. So this system cannot continue to go in this form. It helps to explain a lot of the political disorder that were seeing. The political fighting up were seeing and its just going to keep going unless we have some fundamental changes in the economy.
BROWN: Indeed. Weve been speaking with Jerald Epstein. Jerald is a co-director of the Political Economy Research Institute. Hes also professor of economics at the University of Massachusetts at Amherst. Jerald as always, we appreciate you joining us here on the Real News.
EPSTEIN: Thank you very much Kim.
BROWN: And thank you for tuning in to the Real News Network.
End
DISCLAIMER: Please note that transcripts for The Real News Network are typed from a
recording of the program. TRNN cannot guarantee their complete accuracy.
Source
CPD's Josie Duffy on Why NY Needs the Scaffold Law
NY1 - August 28, 2014 - CPD's Josie Duffy joins Liz Benjamin on NY1 to discuss why workers need the Scaffold Law.
NY1 - August 28, 2014 - CPD's Josie Duffy joins Liz Benjamin on NY1 to discuss why workers need the Scaffold Law.
7 days ago
7 days ago