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Billionaires Can Have the Cosmos—We Only Want the Earth

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Luis Feliz Leon (@Lfelizleon) | Twitter

Fleeing is what the rich do best. Republican Sen. Ted Cruz fled Texas last winter, abandoning millions to freezing temperatures. But some have tired of the Earth altogether.

Billionaires Jeff Bezos, Elon Musk, and Richard Branson are fleeing to space on rockets with stratospheric price tags.

Branson was the first to venture forth July 11, in a gambit to launch a commercial space tourism industry—as if we didn’t have enough trouble with the carbon emissions from excess tourism.

That’s what it means to be ultra-rich—to squander oodles of untaxed cash and rake in public subsidies on boyhood fantasies of “space hotels, amusement parks, yachts, and colonies,” as Bezos put it in high school.

But the billionaires playing space cowboys aren’t like the rest of us. They’re on the other side of the fault line of an accelerating climate catastrophe caused by greenhouse emissions.

Workers who plow fields, erect scaffolding, haul garbage, lay track, and stuff mail are not going to escape onboard a winged rocket. We are going to have to fight to survive on Earth.

EXTREME HEAT

From 1992 to 2017 in the U.S., heat stress killed 815 workers and injured 70,000; every year, 65,000 people visit the emergency room for heat stress.

In June, an extreme heat wave hit the Pacific Northwest. With no federal heat standards in place, the United Farmworkers called on Washington’s governor to issue protections for thousands of vulnerable farmworkers.

Washington and Oregon adopted emergency heat standards for outdoor workers, guaranteeing cool drinking water and shade breaks (Oregon’s stronger rules cover indoor workers too)—but not before Guatemalan-born farmworker Sebastian Francisco Perez, 38, died moving irrigation lines in a 104-degree field in Marion County, Oregon.

Proposed heat-stress legislation in Congress, the Asunción Valdivia Heat Illness and Fatality Prevention Act, doesn’t go far enough, especially in the wake of a Supreme Court ruling that bans union organizers from approaching farmworkers in the fields.

Telecom workers, canvassers, and even librarians are among the union members who are fighting for contractual protection from heat and smoke.

In Maine, unions are teaming up with housing advocates, environmental groups, and indigenous people to push climate bills that will recognize tribal sovereignty, build energy-efficient affordable housing, and create green jobs in low-income areas.

WE WANT THE EARTH

But these are modest efforts compared to the scale of the challenge. All told, the scalding heat wave in the Pacific Northwest killed 800 people. Blistering heat melted power cables and buckled roads in normally temperate Seattle and Portland.

In New York, scorching sun gave way to floods. Viral videos showed subway riders wading through train stations waist-deep in sewage and runoff. A massive flood also hit Detroit, turning thousands of Labor Notes books to pulp.

Meanwhile the Southwest is parched; the people of Colorado are preparing for wildfires. Already the Canadian village of Lytton, British Columbia, combusted after setting an all-time heat record of 121 degrees.

European Union researchers released more evidence in July that planetary heating’s pace far outstrips the climate’s ability to adjust, noting that human-caused climate change is “abrupt and irreversible.”

But it’s never about more information; it’s about power. Alaska, for instance, is installing a cooling system to keep the permafrost frozen and prevent a section of the Trans-Alaska pipeline from crashing and spewing oil everywhere.

In other words, rather than solve the problem by removing the pipeline, the owners have geoengineered a way to keep exacerbating the very conditions that are melting the ice.

Newly leaked audio of an Exxon lobbyist reveals how sneakily the world’s biggest fossil fuel corporations have fought to stymie legislative solutions and sow doubts about the science behind climate action.

It’s up to workers to jump-start a mass movement to save life itself. If we leave it up to the oil barons and space cowboys, they will chase the last dollar till they annihilate us all.

Bezos and his space-trotting pals can have the cosmos. We only want the Earth.

This post originally appeared at Labor Notes on July 15, 2021. Reprinted with permission.

About the Author: Luis Leon is a staff writer and organizer with Labor Notes.


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We Are Zoomers and We Want the PRO Act

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Gen Z and Millennials are facing a bleak economic future. The answer is to massively expand union membership and democratize workplaces.

Like so many other recent college graduates of Gen Z who are trying to enter the workforce, become financially independent and grow our families, we’re seeing the promised ?“American dream” drift further and further out of reach. 

The economy our generation enters today is defined by rising inequality and stagnant wages. Debilitating student debt and astronomically high costs of living in metropolitan areas have dwindled our chances of achieving the same economic prosperity as previous generations. Our parents worked jobs that didn’t require a college degree and allowed them to purchase homes at a fraction of today’s price. Now that dream feels more like a fantasy for our cohort of younger workers.

Today, Millennials and Gen Z collectively make up 40 percent of the U.S. workforce but own only 5.9 percent of household wealth, while Baby Boomers account for just 25 percent of the workforce but own 53 percent of household net worth. When Baby Boomers were Millennials’ age, they owned more than double the wealth of Millennials today. Our generations won’t have the same stability as our parents and grandparents unless systematic changes are made to reinvigorate a key tool in the workplace that helped generations before us enjoy more economic security: labor unions. 

Congress is currently devising a solution that makes it easier for workers to organize and collectively bargain through unions. In March, the House passed the Protecting the Right to Organize (PRO) Act, a bill that would allow gig workers to unionize, legalize solidarity strikes and ban various union-busting tactics that keep workers underpaid and overworked. By expanding access to unionization, the PRO Act strengthens avenues for workers to improve their wages and working conditions. It’s a necessary long-term policy for Millennials and Gen Z to remedy endemic economic inequalities. 

Union membership used to be far more common in America, with unions helping workers bargain for fair wages and expansive benefits. But, as union membership declined from 27 percent in 1979 to 10.3 percent in 2019, income inequality soared with the top one percent increasing their income by 160 percent during this period, compared to just a 26 percent increase for the bottom 90 percent. While the average CEO salary has grown by 940 percent since 1978, worker pay has only increased 12 percent over the past 40 years. Our Boomer parents and grandparents aged into the workforce when unions had high levels of membership, giving them power to hold employers accountable for living wages, safer conditions and robust benefits. 

Today, meanwhile, Millennial and Zoomer integration into the workforce is characterized by low union membership and stagnant wages, making it significantly harder to afford an education, buy a home and start a family. Even as Millennials and Zoomers become America’s most educated generationsresearch shows that real wages for high school graduates are 5.5 percent lower than in 2000 and the wages of young college graduates are 2.5 percent lower. These trends raise the stakes of younger workers in the fight to pass the PRO Act. 

The PRO Act would help offset weak labor laws that have historically stifled labor organizing. A full 48 percent of non-union workers say they would join a union, but less than 11 percent of workers are unionized because many employers utilize aggressive tactics to squash any organizing efforts. Employers can legally bar union organizers from talking to workers in the workplace and during union elections, nearly 90 percent of employers require workers to attend captive audience meetings where they deliver anti-union messages. The PRO Act would prohibit such tactics, making it far easier for workers to organize.

But what difference would unions make? Examples of organized labor’s successes are all around us. Striking teachers’ unions in West Virginia won a 5 percent raise in 2018, and teachers in Los Angeles won a 6 percent raise in 2019. During the pandemic, when large corporate grocers reaped record profits while refusing to pay their workers hazard pay, UFCW locals led the fight across California to pass $5 hazard pay mandates for essential workers in cities like South San Francisco.

Now is the time for Millennials and Zoomers to demand that the Senate follow the lead of the House and pass the PRO Act. Make calls, send emails, and organize your community. No senator from either party can claim to care about young people or working Americans if they don’t support this bill. A version of the PRO Act is reportedly included in the $3.5 trillion human infrastructure package that Democrats plan to pass through budget reconciliation, meaning it could be closer than ever to becoming law. We can help make that a reality. 

The fight to pass the PRO Act is not just about democratizing the workplace, it’s our best shot at building a fair economy and reviving the American dream?—?for our generation and all those who follow. 

This blog originally appeared at In These Times on July 20, 2021. Reprinted with permission.

About the author: James Coleman is a 22-year-old City Councilmember for the City of South San Francisco, and graduate from Harvard University.


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We Have a Jobs Crisis and an Environmental Crisis. The Answer to Both Is a Civilian Climate Corps.

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free enterprise | Today's Workplace

From Bernie Sanders and AOC to the Sunrise Movement, progressives are working to establish an updated version of a New Deal program to meet the challenges of economic and climate upheaval. Its time has come.

The Senate’s bipartisan infrastructure deal embraced by President Joe Biden appears to be a dud. Instead of taxing the rich to modernize America’s roads, water systems and other infrastructure, it promotes various forms of privatization. A summary released in late June about how new construction will be financed includes so-called ?“public-private partnerships,” which are essentially high-interest loans to state and local governments that deliver massive returns for Wall Street banks, private equity investors and multinational financial firms. Also listed is a fringe policy idea called ?“asset recycling,” which would incentivize states and cities to outright sell off public assets. Back in 2009, Chicago leased out its parking meters to investors as far away as Abu Dhabi for at least $1 billion under value, which has forced residents to pick up the tab ever since. Asset recycling is that type of scheme on steroids. 

If Biden is committed to tackling both climate change and inequality?—?which he says he is—then encouraging privatization is counterproductive. Privatizing infrastructure makes adapting to a warming climate harder—because it gives decision making power to corporations and investors. It raises fees and rates for residents—because those corporations and investors need to make a profit. And it creates a race to the bottom on worker wages—because contracted out workers are less likely to be members of a union.

But all is not lost. Biden has a chance to deliver for working people and a healthy climate if he listens to progressives when it comes to a promising proposal that could potentially create millions of good-paying, green public jobs: The Civilian Climate Corps (CCC).

The CCC would be a government jobs program that puts people to work directly combatting the climate crisis. First envisioned by the youth-led Sunrise Movement, the program would aim to ?“conserve and restore public lands and waters, bolster community resilience, increase reforestation, increase carbon sequestration in the agricultural sector, protect biodiversity, improve access to recreation, and address the changing climate.”

Its impact could be considerable, especially if the final product echoes a proposal released in April by Rep. Alexandria Ocasio-Cortez (D?N.Y.) and Sen. Ed Markey (D?Mass.). Their proposed CCC would create 1.5 million jobs that would pay at least $15 per hour, provide full healthcare coverage, and offer support beyond the workplace, like housing and educational grants.

The good news is that, even though Biden’s bipartisan deal doesn’t include money for the CCC, the president actually already established the program in a January executive order, and his original American Jobs Plan called for $10 billion in funding for it. The bad news is that the proposed funding was only a fraction of what’s needed. Biden’s proposal would only create up to 20,000 jobs a year—nowhere near the overall need.

That’s why progressives like Sen. Bernie Sanders (I?Vt.) and Ocasio-Cortez, alongside groups like Sunrise and the National Wildlife Federation, are pushing for a much bigger and broader infrastructure investment than the bipartisan deal, to include substantial funding for the CCC.

One avenue will be to pressure Biden to keep his word when it comes to public jobs. In late June, the president signed an executive order directing the the federal government to encourage diversity and inclusion among its workforce. If a CCC becomes a reality, it must avoid the mistakes made by its predecessor, President Franklin D. Roosevelt’s Civilian Conservation Corps, which was established in 1933.

The first corps accomplished plenty. Over nine years, it employed some 3 million young men to fight forest fires, build more than 100,000 miles of roads and trails, construct 318,000 dams, connect telephone lines across mountain passes, plant 3 billion trees, and much more. But it suffered the same affliction as many New Deal-era programs by mostly shutting out Black Americans. 

While the bill authorizing the program stipulated that ?“no discrimination shall be made on account of race, color, or creed,” Black workers were separated into different camps and often given more difficult, less prestigious work. They also experienced resistance when climbing the ranks within the Civilian Conservation Corps’ administrative hierarchy. Women weren’t allowed to join at all, instead offered opportunities with Eleanor Roosevelt’s ?“She-She-She” camps, which were widely scorned and only benefited some 8,500 people.

That’s why a new CCC must aim to target communities most harmed by the intersecting Covid-19, climate and unemployment crises. As In These Times’ editors wrote back in April, ?“The new Civilian Climate Corps must center Black, Brown, Asian, and Indigenous communities, which have been disproportionately affected by environmental injustice (and Covid-19).”

Public employment has long offered stable jobs to people of color, particularly after the Civil Rights Act of 1964. Black Americans gained 28 percent of new federal government jobs in the 1960s, while only making up 10 percent of the U.S. population. By the 1980s and 1990s, Black public employees were twice as likely as their private sector counterparts to receive promotions into white collar managerial positions and technical jobs. For both men and women, the median wage earned by Black employees is significantly higher in the public sector than in other industries.

For now, with the Senate still debating the paltry bipartisan infrastructure deal, it appears that funding for the CCC will have to find its way into a future budget reconciliation package, which wouldn’t require Republican votes to pass. ?“I want to enlist a new generation of climate conservation and resilience workers like FDR did with the American work plan for preserving our landscape with the Civilian Conservation Corps,” Biden said in a July 7 speech in Illinois. He made clear that the CCC, as well as other policies like two free years of community college, aren’t going to be in the bipartisan deal. ?“In Washington, they call it a reconciliation bill,” he said of the plan for enacting other major parts of his agenda.

Sanders is currently crafting language for such a bill, and plans to include increased funding for the CCC (reportedly $50 billion on top of Biden’s original proposal). Making such an investment a reality will likely require climate organizers and advocates to keep the pressure on lawmakers in Washington so they don’t renege on their promises on the environment. 

People need jobs. We need to modernize our infrastructure to combat climate change. The federal government is the only institution with enough coordination and resources to kill those two birds with one stone. A well-funded CCC is the clear path forward. 

This blog originally appeared at In These Times on July 13, 2021. Reprinted with permission.

About the author: Jeremy Mohler is a Washington D.C.-based political writer with In the Public Interest and a meditation teacher.


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CEO pay rises, average worker pay stagnates, this week, year, decade in the war on workers

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Interview with Laura Clawson, Daily Kos Contributing Editor | Smart  Bitches, Trashy Books

The pandemic did not change rising economic inequality in the United States—go figure. We’ve seen again and again how existing inequalities instead were exacerbated as people who could work remotely did so and stayed relatively safe while others had to put their health and safety on the line to keep scraping by, as women have been forced out of the workforce, as racial inequalities were heightened both in the economy and in the question of who was likeliest to get sick and to die.

And the pandemic did not disrupt the growing gulf between CEO pay and average worker pay, a preliminary analysis by the Economic Policy Institute finds. According to early data from 281 firms, “The offer by CEOs to forgo salary increases during the pandemic was largely symbolic. Salaries were stable, but many CEOs pocketed a windfall by cashing in stock options and obtaining vested stock awards, compounding income inequalities laid bare during the past year,” Lawrence Mishel and Jori Kandra report. “CEO compensation, including realized stock options and vested stock awards, rose 15.9% from 2019 to 2020 among early reporting firms. Growth in CEO compensation was slightly faster than last year’s strong growth—14.0% between 2018 and 2019—while the annual compensation of the average worker increased just 1.8% in 2020.”

This blog originally appeared at Daily Kos on May 29, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor


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New Survey From Broad Coalition Shows Overlapping Challenges of Racial, Gender, and Economic Injustice Amid COVID-19 Pandemic

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Today, Color Of Change, National Employment Law Project, the TIME’S UP Foundation Impact Lab, and the Worker Institute at Cornell ILR released results from new survey research showing deep racial, gender, and economic disparities in the impact of the COVID-19 pandemic. The data point to immediate worker needs and long-standing structural inequities that policymakers and employers must address.

“The outcomes workers are facing as a result of the pandemic are because of deeply embedded racism and sexism in the labor market and beyond — factors which are not new, but have been amplified over the course of this crisis,” said report co-author Dr. Rakeen Mabud, Director of Research and Strategy at TIME’S UP Foundation. “We stand at a tipping point to make our nation better, stronger, and more equal, but only if policymakers do not repeat the mistakes of the past.”

The national survey, which was conducted in late 2020 and oversampled Black and Latinx respondents, examines outcomes across overlapping determinants of worker wellbeing and power, including measures related to economic security, health and safety, and agency and voice in the workplace and beyond.

“While our challenges may seem unprecedented, the reality of today’s economy is all too familiar: women, Black and brown people, and those at the intersection are getting left behind by their employers, our government and by the healthcare system as a whole,” said Rashad Robinson, president of Color Of Change. “As Biden and Congress steer our nation through this crisis with the latest proposed package, this research shows that leaders in government must pay particular attention to marginalized communities. Funneling funds through big banks and corporate bailouts — schemes that leave out Black and brown workers — does not cut it. We need immediate, direct relief.”

The results demonstrate the profound and often compounding challenges that working people in the United States – particularly Black and Latinx workers, women workers, and those who are underpaid – are navigating in the workplace and beyond.

Some key findings:

  • Employers and government agencies are denying workers, and Black workers in particular, access to critical unemployment supports. Thirty-four percent of Black workers, 26% of Latinx workers, and 14% of white workers who applied for unemployment assistance were denied it.
  • Working women (17%) were more likely than working men (12%) to report that their household had trouble paying bills before the pandemic began, and a larger share of women (45%) than men (38%) reported increased challenges covering household expenses since then.
  • Black and Latinx workers are most concerned about employer retaliation for speaking up about unsafe workplace conditions. Thirty-four percent of Black workers and 25% of Latinx workers reported concerns about employer retaliation, compared to 19% of white workers.
  • Almost half of Black workers (48%), nearly a third of Latinx workers (29%), and many Asian workers (15%) fear receiving substandard health care due to their race if they become seriously ill, compared to 4% of white workers.
  • Support for Black Lives Matter and #MeToo movements transcends race, gender, and socioeconomic identity. More than half of men (61%) and women (68%) expressed support for #metoo, and 58% and 64% of men and women support Black Lives Matter.
  • Sixty-two percent and 61% of non-union Black and Asian workers, respectively, said that they would definitely or probably support a union at their job, compared to 42% of white workers and 44% of Latinx workers. However, union membership stands at 8% to 12% across these groups, woefully out of step with these levels of support.

“The survey results speak to the enormous challenges people have experienced in healthcare institutions, voting systems, and the world of work. They also point to a broad-based desire for voice at work and support for movements advancing racial and gender justice,” said report co-author Sanjay Pinto, Fellow at the Worker Institute at Cornell. “We need responses that confront racial, gender, and economic disparities across different systems, both through policy and the power of collective action.”

This group of partners will remain focused on worker wellbeing and power through the pandemic and its aftermath, working with worker-led organizations and policymakers to support cross-cutting, equity-focused interventions that advance a just recovery: one that supports lasting security, safety, and agency in the workplace and beyond.

“The Just Recovery Survey offers both sobering and hopeful new indicators measuring the impact of the pandemic and economic crisis on working people, and provides new insight into the particular challenges confronting Black, Latinx, women, and low-paid workers, and those in frontline occupations,” said report co-author Maya Pinto, senior researcher and policy analyst at the National Employment Law Project. “Results underscore the urgent need for policymakers and employers to support and implement the policies workers need and demand, to build worker power and ensure health and economic security for all.”

Read the complete survey findings at bit.ly/justrecoverysurvey

###

This blog originally appeared at NELP on February 3, 2021. Reprinted with permission.

About Color Of Change
Color of Change is the nation’s largest online racial justice organization. We help people respond effectively to injustice in the world around us. As a national online force driven by over 7 million members, we move decision-makers in corporations and government to create a more human and less hostile world for Black people in America.

About National Employment Law Project
The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research and advocates on issues affecting underpaid and unemployed workers. For more about NELP, visit www.nelp.org. Follow NELP on Twitter at @NelpNews.

About TIME’S UP Foundation
The TIME’S UP Foundation insists upon safe, fair, and dignified work for all by changing culture, companies, and laws. We enable more people to seek justice through the TIME’S UP Legal Defense Fund. We pioneer innovative research driving toward solutions to address systemic inequality and injustice in the workplace through the TIME’S UP Impact Lab. And we reshape key industries from within so they serve as a model for all industries. The TIME’S UP Foundation is a 501(c)(3) charitable organization.

About the Worker Institute at Cornell
The Worker Institute at Cornell works to advance worker rights and collective representation through research, education, and training in conjunction with labor and social justice movements. We seek innovative solutions to problems faced by working people in our workplaces and economy today.


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‘A tale of 2 recessions’: As rich Americans get richer, the bottom half struggles

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The path toward economic recovery in the U.S. has become sharply divided, with wealthier Americans earning and saving at record levels while the poorest struggle to pay their bills and put food on the table.

The result is a splintered economic picture characterized by high highs — the stock market has hit record levels — and incongruous low lows: Nearly 30 million Americans are receiving unemployment benefits, and the jobless rate stands at 8.4 percent. And that dichotomy, economists fear, could obscure the need for an additional economic stimulus that most say is sorely needed.

The trend is on track to exacerbate dramatic wealth and income gaps in the U.S., where divides are already wider than any other nation in the G-7, a group of major developed countries. Spiraling inequality can also contribute to political and financial instability, fuel social unrest and extend any economic recession.

The growing divide could also have damaging implications for President Donald Trump’s reelection bid. Economic downturns historically have been harmful if not fatal for incumbent presidents, and Trump’s base of working-class, blue-collar voters in the Midwest are among the demographics hurting the most. The White House has worked to highlight a rapid economic recovery as a primary reason to reelect the president, but his support on the issue is slipping: Nearly 3 in 5 people say the economy is on the wrong track, a recent Reuters/Ipsos poll found.

Democrats are now seizing on what they see as an opportunity to hit the president on what had been one of his strongest reelection arguments.

“The economic inequities that began before the downturn have only worsened under this failed presidency,” Democratic presidential nominee Joe Biden said Friday. “No one thought they’d lose their job for good or see small businesses shut down en masse. But that kind of recovery requires leadership — leadership we didn’t have, and still don’t have.”

Recent economic data and surveys have laid bare the growing divide. Americans saved a stunning $3.2 trillion in July, the same month that more than 1 in 7 households with children told the U.S. Census Bureau they sometimes or often didn’t have enough food. More than a quarter of adults surveyed have reported paying down debt faster than usual, according to a new AP-NORC poll, while the same proportion said they have been unable to make rent or mortgage payments or pay a bill.

A historic House vote on marijuana legalization will take place later this month. We break down why Democrats are voting on the bill despite the fact that it’ll be dead upon arrival in the Senate.

And while the employment rate for high-wage workers has almost entirely recovered — by mid-July it was down just 1 percent from January — it remains down 15.4 percent for low-wage workers, according to Harvard’s Opportunity Insights economic tracker.

“What that’s created is this tale of two recessions,” said Beth Akers, a labor economist with the Manhattan Institute who worked on the Council of Economic Advisers under President George W. Bush. “There are so obviously complete communities that have been almost entirely unscathed by Covid, while others are entirely devastated.”

Trump and his allies have seized on the strength of the stock market and positive growth in areas like manufacturing and retail sales as evidence of what they have been calling a “V-shaped recovery”: a sharp drop-off followed by rapid growth.

But economists say that argument fails to see the larger picture, one where roughly a million laid-off workers are filing for unemployment benefits each week, millions more have seen their pay and hours cut, and permanent job losses are rising. The economy gained 1.4 million jobs in August, the Labor Department reported Friday, but the pace of job growth has slowed at a time when less than half of the jobs lost earlier this year have been recovered.

Some economists have begun to refer to the recovery as “K-shaped,” because while some households and communities have mostly recovered, others are continuing to struggle — or even seeing their situation deteriorate further.

“If you just look at the top of the K, it’s a V — but you can’t just look at what’s above water,” said Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth. “There could be a whole iceberg underneath it that you’re going to plow into.”

The burden is falling heavily on the poorest Americans, who are more likely to be out of work and less likely to have savings to lean on to weather the crisis. While recessions are always hardest on the poor, the coronavirus downturn has amplified those effects because shutdowns and widespread closures have wiped out low-wage jobs in industries like leisure and hospitality.

Highly touted gains in the stock market, meanwhile, help only the wealthiest 10 percent or so of households, as most others own little or no stock.

The disconnect between the stock market and the broader economy has been stark. On the same day in late August that MGM Resorts announced it would be laying off a quarter of its workforce, throwing some 18,000 workers into unemployment, its stock price jumped more than 6 percent, reaching its highest closing price since the start of March.

“The haves and the have-nots, there’s always been a distinction,” Sahm said. But now, she added, “we are widening this in a way I don’t think people have really wrapped their head around.”

A store going out of business
A customer leaves a retail store, which is going out of business, during the coronavirus pandemic. | Lynne Sladky/AP Photo

Without further stimulus, the situation appears poised to get worse. Economic growth until now had been led by increasing levels of consumer spending, buoyed by stimulus checks and enhanced unemployment benefits that gave many people, including jobless workers, more money to spend.

Low-income consumers have led the way, and they spent slightly more in August than they did in January, according to the Opportunity Insights tracker — even as middle- and high-income consumers are still spending less.

But those low-income consumers were also the most dependent on the extra $600 per week in boosted unemployment benefits, which expired in July. Since that lapsed — and since Congress appears unlikely to extend it any time soon, if at all — “we’re likely to see other macroeconomic numbers really fall off a cliff in the coming weeks,” Akers said.

The expected drop in spending, paired with the expiration of economic relief initiatives like the Paycheck Protection Program, could also spell trouble for businesses in the coming months. Many economists expect a wave of bankruptcies and business closures in the fall, contributing to further layoffs.

In that sector, too, owners are feeling disparate impacts. More than 1 in 5 small business owners reported that sales are still 50 percent or less than where they were before the pandemic, according to a recent survey from the National Federation of Independent Business, and the same proportion say they will need to close their doors if current economic conditions do not improve within six months.

At the same time, however, half said they are nearly back to where they were before, and approximately 1 in 7 owners say they are doing better now than they were before the pandemic, the survey showed.

Those diverging narratives could be understating the need for further stimulus by smoothing over some of the deeper weaknesses in the labor market and the economy, experts say.

“This is a case where the averages tell a different story than the underlying data itself,” said Peter Atwater, an adjunct economics professor at William & Mary.

While Republicans appear to be embracing the idea of further “targeted” aid, they are also touting what Trump has called a “rocket-ship” economic recovery and emphasizing record-breaking growth while downplaying the record-breaking losses that preceded it.

“There’s no question the recovery has beat expectations,” said Rep. Kevin Brady (R-Texas), the top Republican on the House Ways and Means Committee, this week on a press call with reporters.

Talks between the White House and Democratic leaders, meanwhile, have been stalled for weeks. The Senate is set to return from its summer recess next week with no clear path forward on a relief package.

“People are in these bubbles,” Atwater said. “And if people aren’t leaving their homes, are not really getting out, it’s unlikely that they’re seeing the magnitude of the downside of this K-shaped recovery.”

This article originally appeared at Politico on September 7, 2020. Reprinted with permission.

About the Author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.

A D.C.-area native, Megan headed south for a few years to earn her bachelor’s degree in business journalism and international politics at the University of North Carolina at Chapel Hill. Now settled back inside the Beltway, Megan’s on the hunt for the city’s best Carolina BBQ — and still rooting for the Heels.


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Everyone can get coronavirus, but economic inequality means it will be worst for those at the bottom

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This image has an empty alt attribute; its file name is avatar_2563.jpg

Coronavirus doesn’t spare the powerful. As of this writing, two members of the Housea senator, and the president of Harvard University have tested positive. But as with so many things in the unequal United States of America, it’s going to be worse for people who are already vulnerable: low-income people, people in rural areas, homeless people, single parents, inmates, and more.

There’s the constant strain of affording health care in a system that bankrupts so many people. There’s the need to go to work no matter what if you live paycheck to paycheck and don’t have paid sick leave. There’s the fact that so many of those low-wage jobs require face-to-face contact.

COVID-19 disproportionately hits older people, and rural populations skew old. The most common jobs in rural areas tend not to offer paid sick leave. Rural areas have also lost more than 100 hospitals in the past decade, so the remaining hospitals may struggle to keep up with increased need even more than hospitals in other areas of the country—where it’s already expected to be bad.

We’re told that staying away from other people and washing our hands a lot are two of the best ways to combat the spread of coronavirus. Homeless people lack access to sanitation and often live in crowded environments, be they shelters or encampments. Inmates are another group living in crowded environments and prisons often lack soap as well.

In the workplace, a Politico analysis found that nearly 24 million people are in particularly high-risk, low-wage jobs—cashiers, home health aides, paramedics. Their jobs require them to get close to lots of people day after day, and all too often lack paid sick leave.

Low-income people also can’t stockpile food and retreat to their homes to ride it out—because most don’t have the savings to buy two weeks of food all at once. Families whose kids rely on free or reduced-price school lunches may still have access to those meals, but they are likely to have to go out every day to pick up the food. And many say that their school districts haven’t told them where to go for meals.

Anyone can get sick from COVID-19. Anyone can get very sick from it. But that doesn’t mean the suffering will be evenly distributed. 

This article was originally published at Daily Kos on March 24, 2020. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.


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King and Meany Brought Civil Rights and Labor Together for a Legacy That Continues Today

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Beginning in 1960, Dr. Martin Luther King Jr. and then-President George Meany of the AFL-CIO began a relationship that would help bring the labor and civil rights movements together with a combined focus on social and economic justice.

Meany was an outspoken defender of individual freedom, and in March 1960, he emphasized the crucial link between the union and the civil rights movements. He told an AFL-CIO gathering, “What we want for ourselves, we want for all humanity.” Meany met with King to privately discuss how they could work together. King proposed that the AFL-CIO invest pension assets in housing, to help lessen economic inequality. The AFL-CIO then established the Investment Department in August 1960 to guide union pension funds to be socially responsible investors.

The next year, King spoke to the AFL-CIO Executive Council, comparing what labor had achieved to what the civil rights movement wanted to accomplish: “We are confronted by powerful forces telling us to rely on the good will and understanding of those who profit by exploiting us. They resent our will to organize. They are shocked that active organizations, sit-ins, civil disobedience, and protests are becoming every day tools just as strikes, demonstrations, and union organizations became yours to insure that bargaining power genuinely existed on both sides of the table.” At the AFL-CIO Constitutional Convention later that year, Meany made civil rights a prominent item on the agenda, and King spoke to the delegates about uniting the two movements through a common agenda, noting that African Americans are “almost entirely a working people.”

Not only did the AFL-CIO provide much-needed capital to the civil rights movement, but numerous affiliates did as well. Several combined to give more than $100,000 to King’s Southern Christian Leadership Conference. The UAW directly funded voter registration drives in predominantly African American areas throughout the South and paid bail money for jailed protesters. Meany and the AFL-CIO also used their considerable political influence in helping to shape the Civil Rights Act of 1964 and Voting Rights Act of 1965.

Union activists were a key part of the March on Washington for Jobs and Freedom as well. The Industrial Union Department of the AFL-CIO endorsed the march, as did 11 international unions and several state and local labor councils. A. Philip Randolph, then-president of the Brotherhood of Sleeping Car Porters, was a key organizer of the event. UAW President Walter Reuther was a speaker at the march, condemning the fact that African Americans were treated as second-class economic citizens.

King’s final act in pursuit of social and economic justice was in support of the sanitation strike in Memphis, Tennessee. After his death, then-President Lyndon B. Johnson sent the undersecretary of labor to settle the strike, and the city acceded to the demands of the working people, leading to the creation of AFSCME Local 1733, which still represents sanitation workers in Memphis.

In 1964, Meany sent a letter to all AFL-CIO affiliates outlining an new pathway that would directly support housing construction and homeownership. In 1965, the Investment Department helped establish the Mortgage Investment Trust, which was the formal embodiment of the socially responsible investment plan and gave a boost to badly needed affordable housing construction. In 1984, the Mortgage Investment Trust was replaced by the AFL-CIO Housing Investment Trust, one of the first socially responsible investment funds in the United States. Since it was created, the HIT has grown to more than $4.5 billion in net assets and has helped finance more than 100,000 affordable housing units and helped create tens of thousands of union jobs.

The partnership between civil rights and labor launched by King and Meany has helped the country make great strides in the intervening years, and the partnership continues.

This blog was originally published at AFL-CIO on January 12, 2018. Reprinted with permission.

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.


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Enormous, Humongous August Trade Deficit Prompts Trade Deficit Bill

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dave.johnsonThe U.S. Census Bureau reported Wednesday that the August trade deficit rose 3 percent to $40.73 billion from July’s $39.5 (slightly revised). Both exports and imports rose, with imports rising more than exports. August exports were $187.9 billion up $1.5 billion from July. August imports were $228.6 billion up $2.6 billion.

The goods deficit was $60.3 billion, offset by a services surplus of $19.6 billion.

Imports from China increased 9.5 percent.

Is Increased “Trade” Good If It Really Means Increased Trade Deficits?

“Trade” is generally considered a good thing. But consider this: closing an American factory and firing its workers (not to mention the managers, supply chain, truck drivers, etc affected) and instead producing the same goods in a country with low wages and few environmental protections, then bringing the same goods back to sell in the same stores increases “trade” because now those goods cross a border. This is how “trade” results in a structural trade deficit. Goods once made here are made there, the economic gains move from here to there.

Offshoring production can be a good thing, but only in a full-employment economy. This is because with everyone employed companies can’t find people to do things that need to be done. Meanwhile workers in other countries need the jobs. The people there can afford things made here, and trade balances. Everyone benefits.

But since the 1970s the US has used “trade” and other policies to intentionally drive unemployment up and wages down, to the benefit of “investors” (Wall Street) and executives, who then pocket the wage differential. This pushes the economy’s gains to a few at the top, increasing inequality, which increases the power of plutocrats to further influence policy in their favor.

The US has run a trade deficit since the 1970s. Coincidentally, see this chart:

The stagnation of wages for working people just happens to correspond with the introduction of the intentional “trade” deficit. Again, “trade” in this case means deindustrialization: closing factories here, opening them there and bringing the same goods across a border to sell in the same stores.

Trade Deficit Reduction Act

This week Rep. Louise Slaughter (D-NY) introduced a bill designed to identify and reduce our enormous, humongous trade deficits. RochesterFirst.com has the story, in Slaughter introduces legislation to reduce trade deficits,

On Monday, Congresswoman Louise Slaughter unveiled the Trade Deficit Reduction Act, which calls for a change in how we approach international trade in order to benefit our workers.

The legislation would put a government-wide focus on addressing the most significant trade deficits that exist between the United States and other countries. The U.S. has run trade deficits since the 1970s.

… “The last thing our community needs as we work to reignite our manufacturing base with advanced technologies like optics and photonics is to undo this progress by enacting another NAFTA-style trade deal. We need a whole new direction in our trade policy, which is why I am standing with workers from PGM Corp. today to unveil the Trade Deficit Reduction Act. This legislation will change how we approach international trade and make it benefit our workers and manufacturers,” said Slaughter.

The bill would require the administration to identify the countries with which the U.S. has the worst trade deficits.

The bill also directs the administration to develop plans of action to address the trade deficits with those countries, with strict deadlines and oversight from Congress.

The intentional trade deficit and other policies to drive up unemployment and drive down wages greatly enrich a few, but history tells us the consequences are dangerous to society. For example, the rising support for Trump and other far-right populists like him around the world.

This post originally appeared on ourfuture.org on October 6, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.


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