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Don’t Just Send People Money During a Pandemic—Do It All the Time

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Universal Income Project Leadership - Universal Income Project

The evidence is in: Sending out direct cash payments has been a full-blown success—and we can’t afford to stop.

It’s become almost a cliché in the politics of Washington, D.C.: Every time someone proposes expanding a social program or creating a new one, scores of politicians, lobbyists and so-called economic ?“experts” will pop up to tell you that it will cost too much and we can’t afford it. Somehow, money is never an issue when it comes to tax cuts for the wealthy and corporations or increasing our military budget, but programs that support everyday people are just too damn expensive.

new analysis from the University of Michigan on the impact of recent stimulus payments adds to a growing body of evidence that shows when it comes to direct cash assistance programs, cost is not a prohibitive issue. In fact, for social programs like these, we may be unable to afford not to do them.

According to the analysis, which looked at data from the Census Bureau Household Pulse Survey, in the weeks following the stimulus check payments in December 2020 and March 2021, households across the country saw a significant decrease in their material hardship. American families reported increased food security, a greater ability to pay for household expenses and less anxiety. This effect was particularly pronounced in low-income households and households with children?—?in the six weeks following the passage of the December 2020 Covid relief bill, amongst families with children, the rate of not having enough to eat fell by 21% and the rate of having difficulty paying for household expenses fell by 24%. These rates dropped again by 23% and 31%, respectively, following the passage of the American Rescue Plan in March 2021.

These findings align with the results of a previous analysis in 2017 from the Roosevelt Institute which looked into various programs that provided direct, unconditional cash to individuals in the United States and Canada, such as the Alaska Permanent Fund Dividend and the Eastern Band of Cherokees casino dividend program. Both of these analyses show the same dynamic: when people receive money with no strings attached, they spend it on the things they need, leading them to live healthier, less anxious lives.

While these outcomes are certainly beneficial for recipients in the immediate term, the broader implications of these changes are just as important. When people don’t have food or are living in poverty, it’s not just a burden on them?—?it’s a burden on all of society. These conditions are directly tied to poorer health outcomes, which puts a drain on our nation’s healthcare system. Poor people are more likely to turn to crime as a means of supporting themselves. Those in poverty may require continued support from our inadequate existing social welfare programs, relying on programs like food stamps, housing assistance and disability insurance to barely make ends meet.

The social implications of poverty are even more pronounced among children, where its impact on cognitive development and educational opportunities may alter their life trajectories. Living in a financially stable household and getting enough to eat could mean the difference between having opportunities later in life and getting trapped in a low-income job with no prospects for advancement.

When considering the aggregate impact of poverty on our society, the results are staggering. A 2018 analysis in the Social Work Research journal found that childhood poverty alone costs our society more than $1 trillion every year from a combination of lost productivity, increased health and crime costs, and increased costs as a result of childhood homelessness and maltreatment.

To accurately assess the cost of social programs, we should be comparing the required expenditures to the expected savings from poverty reduction. A good example is the recent expansion of the child tax credit?—?described as a ?“guaranteed income for families”—which is set to provide up to $300 per child per month for kids under the age of six and $250 per child per month for kids between six and seventeen starting in July. The Congressional Joint Committee on Taxation expects this expansion to cost $110 billion for the year, while the Center on Budget and Policy Priorities projects that the program will decrease child poverty by more than 40%. Well, 40% of $1 trillion is $400 billion, which means the savings from this expansion are over three times the amount spent.

There’s good reason to think that the latest round of stimulus checks will also yield positive long-term returns, as people teeter between regaining their financial footing and slipping into poverty. ?“This money is going towards all the bills that weren’t paid during the time we had to take off,” according to Sandy Lash, a single mother in Fort Wayne, Indiana who relied on the stimulus payments to make it through the pandemic. ?“Receiving these checks will enable [us] to make a difference and move up to where we don’t have to struggle anymore.”

This presents our society with a clear choice: Do we allow increasing poverty and financial precarity to continue to drain away our society’s resources? Or do we make the investment now to create a secure and productive population through programs providing direct cash to families? An immediate first step would be to make the expanded child tax credit, which is set to expire after this year, a permanent, ongoing program. Beyond that, establishing a full, national guaranteed income program that provides monthly payments to all Americans?—?such as the one proposed by Rep. Rashida Tlaib through her Automatic BOOST to Communities Act—could pay massive dividends down the road by fully eliminating material poverty in the United States.

It’s not hard to see which of these approaches is the more affordable one.

This blog originally appeared at In These Times on June 9, 2021. Reprinted with permission.

About the Author: Jim Pugh is  is the co-director of the Universal Income Project.


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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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Megan Rapinoe and other soccer stars headed to Congress and the White House for Equal Pay Day

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March 24 is Equal Pay Day—as ever, the occasion for a resoundingly sarcastic “woohoo.” If you start counting on January 1, 2020, Equal Pay Day marks the day on which women have been paid as much as men had been paid by December 31, 2020. Women working full-time and year-round make, on average, 82 cents for every dollar men make.

Soccer stars including Megan Rapinoe are testifying about equal pay before the House Oversight Committee on Wednesday, as well as meeting with President Joe and Dr. Jill Biden at the White House. Members of the U.S. women’s national soccer team recently settled part of a lawsuit dealing with unequal working conditions, but are appealing to have equal pay addressed in court. They appear in the immediate wake of a scandal over the unequal treatment of players in the NCAA men’s and women’s basketball tournaments. 

“I feel like I pull on this shirt for equal pay and for the fans and for kids who want to be in my position,” Rapinoe recently told ESPN. “So that never feels in conflict.”

While March 24 is Equal Pay Day for all U.S. women in 2021, inequality isn’t just a gender thing.

  • Asian American and Pacific Islander Women’s Equal Pay Day was on March 9. They’re paid 85 cents for every dollar men are paid.
  • Mothers’ Equal Pay Day won’t be until June 4. Mothers make 70 cents for a dollar earned by fathers.
  • Black Women’s Equal Pay Day is August 3, to reflect the 63 cents they are paid compared to a dollar for a white man.
  • Native American Women’s Equal Pay Day comes September 8—it’s 60 cents for them.
  • Latina Equal Pay Day isn’t until October 21—55 cents for every dollar paid to white men.

This all adds up to huge lifetime losses. If you translate today’s pay gaps into a 40-year working life, the National Women’s Law Center calculates:

This is already a crisis situation, and it’s been compounded by the unequal harms of the coronavirus pandemic, which have hit women especially hard—and especially Black and brown women. Biden’s infrastructure plan, surprisingly, could help undo some of the damage, but women—and the economy they’re such an important part of—need an even broader set of policy fixes, including equal pay legislation, the Pregnant Workers Fairness Act, anti-discrimination policies with real teeth that will get the attention of employers, and much more.

This blog originally appeared at Daily Kos on March 24, 2021. Reprinted with permission.

About the Author: Laura Clawson has been a contributing editor since December 2006. Clawson has been full-time staff since 2011, and is currently assistant managing editor at the Daily Kos.


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Unemployment Money Chaos Redux?; Clawing Back Dough From the Rich

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How many of you dealt with that chaos when it came to wrestling with the unemployment insurance system last year? Some of the rhetoric we heard was, “well that chaos was just the pandemic crush overwhelming the system”. Yes, that’s true in a very narrow sense—the system collapsed in many places, meaning people who were desperate to get a check to pay rent or for food had to wait months and months for a first check…and lots of people just gave up.

But, here’s the truth, folks—that’s a feature not a bug. So, as enhanced unemployment benefits are about to expire at the end of March but seem likely to be extended in a new stimulus bill, is this chaos going to continue to be as bad as it was a year ago? Michele Evermore, a senior policy analyst at the National Employment Law Project and a leading national expert on the unemployment insurance system, tells us the status and how we fix the broken system.

Remember during the presidential campaign when Joe Biden promised not to raise taxes for anyone making less than $400,000? I thought, “well, that’s dumb”. Why should someone making say $250,000—which puts them in the one percent—not pay higher taxes? I figured right then that that line-in-the-sand $400K number was a purely stupid political calculation—let’s not piss off the people in the suburbs who voted for Trump who we want to get.

Really? Why not try a direct populist argument to reach a whole lot of people who are making under $100,000 and get angry about taxes because they have to pay a heavy load but see people making $250,000 paying a relatively small sum? I talk with Matt Gardner, senior fellow at the Institute for Taxation and Economic Policy, about taxing people above $400,000, why other well-off people shouldn’t pay higher taxes as well and, bonus, how Netflix is paying less than one percent taxes on a massive revenue boost (hint: legalized corruption!)

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

About the Author: Jonathan Tasini is a political / organizing / economic strategist. President of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years.


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Pandemic reveals tale of 2 Californias like never before

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As Bay Area tech workers set up home offices to avoid coronavirus exposure, grocers, farm workers and warehouse employees in the Central Valley never stopped reporting to job sites. Renters pleaded for eviction relief while urban professionals fled for suburbs and resort towns, taking advantage of record-low interest rates to buy bigger, better homes. Most of the state’s 6 million public school children are learning remotely, while affluent families opted for private classrooms that are up and running.

California has long been a picture of inequality, but the pandemic has widened the gap in ways few could have imagined. While other states face large budget deficits, California has a $15 billion surplus, thanks to record 2020 gains from Silicon Valley and white-collar workers who pay the bulk of California’s taxes.


Gov. Gavin Newsom unveiled the state’s record-high $227 billion budget last week despite a year in which unemployment soared beyond 10 percent and the homelessness crisis reached devastating levels in Los Angeles and beyond.

He has proposed directing much of California’s bounty toward struggling residents and low-income families, and it remains to be seen whether the state will continue to reap similar tax rewards in future years. If this is a onetime windfall, Newsom and lawmakers will have to find other resources to sustain additional aid — and face pressure to raise tax rates even more on the wealthy.

“There’s a way in which the pandemic has amplified all of these systemic and societal issues we were always aware of,” said Brandon Greene, director of the racial and economic justice program at the ACLU of Northern California. “These gaps persist and are widening. And if it can happen here, in a blue state where you have the political capital, it can happen anywhere.”

California’s low-income workers and people of color have borne the brunt of both the economic fallout of the recession and the physical toll of the virus itself. The Latino Covid-19 death rate is 22 percent higher than the statewide average, and the Black death rate is 16 percent higher, according to California’s health equity tracker.

Even before the pandemic, ZIP codes home to just 2 percent of California’s population held 20 percent of the state’s net worth, according to the nonpartisan Legislative Analyst’s Office. In 2020, more than 40 percent of households making less than $40,000 annually saw reduced work hours or pay, and an equal share had to cut back on food, according to the Public Policy Institute of California.

“Decades-long inequalities, those preexisting conditions around race, around ethnicity, the preexisting conditions around wealth disparities and income disparities, obviously have come to the fore and must be addressed,” Newsom said while outlining his budget proposal last week.

Moments later, he made a stark proclamation about how the other side is doing: “The folks at the top are doing pretty damn well.”

Newsom, 53, is a multimillionaire businessman in addition to being governor, and his own personal life has punctuated the extreme differences in California. His dinner at the French Laundry in November not only enraged the public for his flouting of his own advice against gathering; it served as an optics problem with menu prices that many Californians cannot afford even in normal times. Newsom sent his own children back to private classrooms in late October while most families were stuck in remote learning. When he had to quarantine in November, he said he was “blessed because we have many rooms” in his Sacramento County home.

However, the Democratic governor has prided himself on bridging the equity gap and has branded his efforts as “California for All” since taking office two years ago. He appointed the state’s first surgeon general, Nadine Burke Harris, who has focused her career on addressing childhood trauma in disadvantaged communities and led vaccine discussions mindful of equal distribution. Newsom has pushed hard to reopen public schools this spring because he says students in low-income neighborhoods are struggling the most with distance learning.

Newsom has proposed $600 state stimulus checks to nearly 4 million low-income workers as part of his budget plan. He launched an effort to shelter tens of thousands of homeless Californians in hotel rooms when the outbreak began and then transitioned toward a program that would convert that into permanent housing. He helped enact renter protections from eviction and wants to extend those protections.

Californians saw an array of relief in 2020, as all levels of government tried to lessen the burden. Children who live in communities that have long gone without broadband and quality internet access received hotspots and other Wi-Fi access. Cities stopped using parking tickets and towing as a way to bring in revenue. More lower-level offenders were freed from prisons and jails after virus outbreaks.

Advocates say the jarring juxtaposition in the pandemic, as the state’s richest got richer and its poor got poorer, prove it’s not enough. They are lobbying Newsom and the Legislature to use California’s unexpected windfall to help the state’s neediest by expanding the social safety net and to turn temporary relief granted during the pandemic into permanent solutions. They worry that momentum is already losing steam, and that things will revert to normal when the vaccine reaches the masses and Covid-19 is in the past.

“These things that were implemented as a kind of lifeline are now expiring and folks still need it,” said Jhumpa Bhattacharya, a vice president at the Insight Center for Community Economic Development based in Oakland. “We live in a society where we don’t believe in government intervention, and there’s this narrative that you can pull yourself up by your bootstraps. When the pandemic hit, we saw that’s not true, and my hope is that we will be able to develop a new understanding of how our society works.”

California Democrats have proposed bigger taxes on the ultra-rich as a solution, with groups like the California Teachers Association pushing last year for legislation to hike taxes for residents with more than $30 million in assets. That bill failed, but Assemblymember Luz Rivas (D-Arleta) just proposed raising taxes on corporations by $2 billion to fund housing for people experiencing homelessness.

Newsom made clear last week that he will not entertain major tax proposals, declaring “they’re not part of the conversation.” The pandemic’s remote work culture has shown information-based companies that office location may not matter as much as once thought, while California’s high housing costs, regulations and taxes are a deterrent.

Further taxing the rich is proving to be a political risk and a threat to the very system that makes it possible for California to thrive even in dark times. Just last month, Oracle and Hewlett Packard Enterprise announced they were moving their headquarters to rival state Texas. Elon Musk, now the richest person on the planet, also said he was moving to the Lone Star State, though his company Tesla will remain in California.

“There’s about 1 percent of taxpayers that pay half the income tax in the state, and the reason why state revenues have been so strong is that those taxpayers had a very good year. As long as those people are willing to stay in California and be taxed, the money will come in,” said David Shulman, senior economist emeritus for the UCLA Anderson Forecast. “But there is a point where they will say it doesn’t work anymore. The question is, are we at a tipping point? There’s certainly more evidence that we are getting close to it.”


The last major tax hike in California was a 2012 voter-approved tax on residents making more than $250,000 championed by Gov. Jerry Brown, which voters later extended through 2030. Voters in November, however, rejected a ballot initiative to tax commercial properties at their current value, which would have generated up to $12 billion more annually.

Advocates say another tax hike is overdue, but even without one, the state could change its priorities to make better use of its billions.

“It’s all very frustrating, since with the fifth largest economy in the world, these things are fixable. The money is there,” said Courtney McKinney, spokesperson for the Western Center on Law and Poverty. “It is a question of priorities — whether or not millions of people being plunged into poverty is seen as enough of a destabilizer to encourage the wealthy, business and political class in California to put money into addressing poverty and the trappings of poor environment in smart, sensible ways. Easier said than done.”

Assemblymember Alex Lee (D-San Jose), a coauthor of legislation to extend the eviction moratorium for another year, said resistance to more permanent solutions to help low-income residents is a reminder that California is not as progressive as it claims to be.

In the November election, California proved it’s not the liberal bastion people think it is. Besides rejecting the business property tax increase, they opposed affirmative action and rent control while they sided with gig employers and dialysis companies instead of labor unions.

“Whether or not people should be evicted during a pandemic in a recession … even just having to fight about that says we aren’t where we should be yet,” Lee said. “I think a lot of people are realizing this stuff, and that even though we have Democratic super, ultra majorities, we aren’t living up to the progressive potential we have. I would never characterize us as progressive state.”

This blog originally appeared at Politico on January 17, 2021. Reprinted with permission.

About the Author: Mackenzie Mays covers education in California. Prior to joining POLITICO in 2019, she was the investigative reporter at the Fresno Bee, where her political watchdog reporting received a National Press Club press freedom award.


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Women of color suffer as coronavirus takes existing economic inequalities and doubles down on them

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The coronavirus economy is crushing women, people of color, and especially women of color. While the economy added 661,000 jobs between August and September, 865,000 women dropped out of the paid workforce. White women have recovered 61% of the jobs they lost in the early months of the pandemic, while Black women have recovered just 39%. As of a September 30 report in The Washington Post, less than 45% of mothers of children aged six to 12 have gotten back jobs they lost, while fathers of children in that age group have seen employment rebound 70%. Workers with college degrees have gotten back 55% of lost jobs, while for workers with high school degrees it’s less than 40%.

The devastation to state and local government jobs—particularly in education—and to the childcare industry has hit women particularly hard, putting many out of work—and then, in turn, women in other industries feel the squeeze because their kids are at home and household labor and childcare fall disproportionately on them.

Unemployment actually rose among Latinas in the most recent jobs report, going from 10.5% to 11%, and Latinas accounted for 324,000 of the women dropping out of the workforce. Though unemployment among Black women is just as high, at 11.1%, only 58,000 Black women dropped out.

This may be just the tip of the iceberg, though. A study published by Lean In “found that one in four women are considering downsizing their careers or leaving the workforce as a result of the damage wrought by COVID-19,” The 19th reported. “It’s the first time in six years of research that the annual study has found evidence of women intending to leave their jobs at higher rates than men.”

In an unequal economy and an unequal society, go figure. The new burdens of a crisis fall hardest on the people already struggling. This is a challenge to the United States and, in particular, to Democrats should they win big in November: What are we going to do to fix this?

This blog originally appeared at Daily Kos on October 5, 2020. Reprinted with permission.

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


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America’s Rich Just Scored A Triple Jackpot

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At racetracks all across America, lucky bettors every so often rake in small fortunes when the horses they pick to finish one, two, three — a trifecta — just happen to finish in that order. Last spring at the Kentucky Derby, for instance, a $1 trifecta bet returned a tidy little $11,475.30.

But America’s awesomely affluent don’t have to place any bets to rake in windfalls. They’re essentially hitting jackpots on a daily basis, as a “trifecta” of timely just-released research reminds us.

The first of these three newly released blasts came in late September from the Census Bureau. The gap between America’s haves and have-nots, the new Census data show, has grown “to its highest level in more than 50 years of tracking income inequality.”

The first week in October then brought the second blast, an Institute for Policy Studies analysis on the latest trends in corporate executive pay. In 2018, the IPS report details, 50 major U.S. corporations paid their CEOs over 1,000 times the compensation that went to their most typical workers.

The third blast comes from two of the world’s top inequality scholars. In 2018, economists Emmanuel Saez and Gabriel Zucman inform us, America’s 400 richest households paid taxes at a lower rate than any other income cohort in the nation, the first time that’s happened since the modern federal income tax went into effect in 1913.

The combined federal, state, and local tax rate on the nation’s richest 400 households, Saez and Zucman have calculated, last year fell 2.5 percentage points to 23 percent. In other words, the nation’s richest 400 households paid less than a quarter of their income in taxes.

Households in the nation’s poorest 50 percent, by contrast, paid 24.2 percent of their incomes in combined 2018 federal, state, and local taxes.

These disturbing new numbers appear Saez and Zucman’s new book, The Triumph of Injustice. The book traces how tax rates on the richest of America’s rich have nosedived since the middle of the 20th century. In 1950, the two economists point out, our top 400 households had a combined tax bill that averaged 70 percent of their incomes. A generation later, in 1980, that combined rate took 47 percent — about half — of top-400-household incomes. That rate has since fallen to last year’s 23 percent.

The bottom line: America’s richest used to pay over three times more of their income in total taxes than they do now. The predictable result? America’s richest have become phenomenally richer than they used to be.

The business magazine Forbes began publishing its annual list of the nation’s 400 richest in 1982. The shipping magnate Daniel Ludwig topped that first annual Forbes list. His total fortune: just $2 billion.

Forbes earlier this month released the 2019 ranking of the top 400. The fortune now needed to enter the ranks of America’s 400 richest: $2.1 billion.

Admittedly, we’re not taking inflation into account with this comparison. So let’s do that. Adjusting for inflation, Ludwig — the richest single individual in the inaugural Forbes list — had a 1982 fortune worth $5.3 billion. A stash that size today would rank him just 125th.

In that initial 1982 Forbes 400, America’s richest averaged $230.8 million in net worth each. In today’s dollars, that would come to nearly $633 million. The 2019 top 400 average: $7.4 billion, 32 times the top-400 average net worth in 1982.

Wages for the typical American worker, meanwhile, have been “increasing” on average by less than a half percent a year over the last four decades.

“It’s the economy, stupid,” Bill Clinton’s top campaign guru quipped during the 1992 presidential campaign.

No, it’s the inequality, stupid, the vast gap between the rich and everyone else that’s poisoning nearly every aspect of modern American life, from our crumbling infrastructure to our endangered environment. Hitting an occasional trifecta at the racetrack won’t close that gap. Taxing the rich — and confronting their corporate power — will.

This blog was originally published at OurFuture.org on October 22, 2019. Reprinted with permission.

About the Author: A veteran labor journalist, Sam Pizzigati has written widely on economic inequality, in articles, books, and online, for both popular and scholarly readers. Sam Pizzigati co-edits Inequality.org. Follow him at @Too_Much_Online.


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Income inequality went up again in 2018, and the Republican tax law may have made it worse

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U.S. income inequality continued to grow in 2018, according to new Census Bureau figures. That’s a continuation of a decades-long trend—and a problem several of the Democratic presidential candidates have plans to combat.

The biggest rises in inequality came in Alabama, Arkansas, California, Kansas, Nebraska, New Hampshire, New Mexico, Texas, and Virginia, making increasing inequality a nationwide phenomenon hitting red states, blue states, and swing states across regions of the country. But it’s not something that’s just happening in a vacuum. It’s a product of policy and of choices that giant corporations, unfettered by government, are making to transfer wealth upward. Candidates like Sens. Elizabeth Warren and Bernie Sanders have offered plans from a wealth tax to a $15 minimum wage to strengthening unions to combat the continuing trend. Republicans, meanwhile, are looking for ways to make it worse.

“In 2018 the unemployment rate was already low, and the labor market was getting tight, resulting in higher wages. This can explain the increase in the median household income,” University of Florida economist Hector Sandoval told the Associated Press. “However, the increase in the Gini index shows that the distribution became more unequal. That is, top income earners got even larger increases in their income, and one of the reasons for that might well be the tax cut.”

We’d need more data to know for sure, but we can be sure that it’s an outcome Republicans wouldn’t object to—except selectively during campaign season.

This article was originally published at Daily Kos on September 26, 2019. Reprinted with permission.

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

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Forget Elections—Labor Needs To Get Back to Its Roots

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With the midterms behind us, we have Nov. 4, 2020, to look forward to—labor’s next morning after. On Nov. 5, 2008, we were euphoric and full of delusional hope over the imminent passage of the Employee Free Choice Act and the restoration of labor. On Nov. 9, 2016, we were paralyzed by despair and denial.

At this point, betting our future on the next brutal mating ritual of Republicans and Democrats is not a bet most workers are willing to take. Since the 1950s, union membership decline has been a straight line downward, regardless of which political party is in power. Only 10.7 percent of workers are unionized; an enormous 89.3 percent are not. That’s too low to make much difference for most people in most places—more molecular level Brownian motion than labor movement. No threat to wealth, the wealthy, or powerful. Much worse, no voice or power of, by, or, for workers. Instead, organized labor has become so marginal Donald Trump has been able to usurp its role as the emotional voice for workers.

The economy is doing great—apart from workers. Wages remain stagnant. Forty percent of adults don’t have enough savings to cover a $400 emergency expense such as a car repair or medical crisis. Forty-three percent of families aren’t making enough to cover monthly living expenses. Uncertain work, unpredictable work hours, mandatory overtime, dictatorial bosses, miserable job standards, create day-to-day desperation with psychological and social tolls. The labor market is ripe for an organizing explosion, but it isn’t happening.

Blaming the rich and the Republicans is great sport. The income inequality research industry is booming and there is no need to catalog Republican offenses—they campaign on them. Long ago, labor outsourced its representation in the public sphere to the Democratic Party, and in the process become a dependent franchise and an easy target. But the truth is that the Democrats patronize labor on a good day, sell us out on a bad day, and ignore us on most days. (I speak as a recovering politician, a Democrat who ran and was elected four times to city council in my heavily Republican small town.)

Partisan and competitive thinking insidiously affects behavior. Fifty percent plus one passes for solidarity. Unionists succumb to political speak, sounding like Washington rather than “folks â€round here.” We blame workers for voting for Republicans. If they’d only voted how we told them, then we could get things done. We estrange ourselves from large chunks of workers while giving ourselves an excuse for failure. We don’t have to do the hard work of building a movement, we only need to win an election.

Maybe we should rethink that.

Instead, start today from where we are and who we are. Simple collective self-representation without institutional, ideological, partisan or monetary artifice. Understanding who and where we are by our own compass; by our own position, not opposition. This requires radical respect for our fellow workers. For lack of a better term, this unadorned organizing is social organizing.

Abundant example are scattered across the globe and buried in history. I witnessed a jarring worker tutorial in social organizing in Poland in 1995, when AFL-CIO desperation over labor’s decline and my good luck resulted in a leave of absence from my elected Central Labor Council job to work in those early post-revolutionary years with Solidarnosc leadership and membership. Ironically, at one point, I was tasked with organizing a conference on American union organizing for Solidarnosc activists. Just as the accomplished, well-educated American organizer sent over by the union began his presentation, one Solidarnosc members interrupted to ask, “What do you mean “organize?” A moment of awkward silence followed. Then, charitably, another Solidarnosc member suggested, “Do you mean, join our organization and we’ll represent you?” The original questioner jumped in, “we had 45 years of that with the Communists.” The workers then came up with their own definition of organizing, “co-creating our own future.” Workers, not the organization, were the of, by, and for.

Post-revolution, the solidarity of Solidarnosc dissipated into political and institutional factions. Still, this incident illuminates the commitment to social organizing that helped spark this transformational worker movement.

When all we have is each other, social organizing is where we start.

Back to basics

Social organizing built the labor movement. When 19th-century American workers had virtually no institutional or political voice or power, they developed both by caring about and for each other. In nearly every inch of America, now-forgotten workers came together with that definition of solidarity.

In 1894, Coxey’s Army of unemployed workers marched on Washington, D.C., to press for defined jobs and meaningful work. As branches passed through cities and towns—including Fort Wayne, Ind., where I work—the Fort Wayne Sentinel reported that local residents lavished them for days with food and social support. That same year the Sentinel reported, during the 1894 streetcar workers strike, housewives directed garden hoses at scabs, horse drawn wagons inexplicably unhitched on the tracks, and riders boycotted the streetcars. Returning the solidarity, striking workers went back to work without pay for one day, Memorial Day, so citizens could visit the graves of their departed. Streetcar workers and the community won that strike.

Thousands of lost histories such as this were the roots of community-based solidarity in industrial America. This populist industrial solidarity spawned and supported Workingmen’s Associations, Knights of Labor chapters, Trade and Labor Councils. In turn, these organizations incubated worker organizing in workplaces and by trades. Local solidarity in railroad towns and company towns built the institutional, political and legal foundations for our now diminished labor movement. The gravity of solidarity drew workers into the inextricably intertwined labor market and community. This culture of solidarity included direct actions such as strikes and boycotts but, more consistently and importantly, direct education of, by, and for workers. Apprenticeships,“lectors” who read news and literature aloud to workers on the job, and intentionally educational union meetings with guest speakers were part of the culture. Railroad and industrial activities were regularly covered in newspapers, with the reporting focused more on workers than bosses or business. Journalists, whether Knights of Labor or just solid reporters, would commonly cover union federation meetings. Union leaders understood their role as representative in the community meant talking to reporters, not hiding from them. Everybody had something to teach and everybody had something to learn and an obligation to do both. A culture of solidarity meant educate to organize and organize to educate.

We could take solace and avoid the hard work of organizing by saying America and the world are different now. Our mid-twentieth century institutions, economy, and democracy have decayed or been hijacked. Our social divisions can feel insurmountable. We’ve been sliced, diced, monetized, politicized and controlled. But are we so special that we now believe we are the first ones to have ever been so seemingly screwed? Or do we try to work through it, experiment based on what we can learn from other times and places and most importantly, each other?

Social organizing after the 2008 Recession

Since 1996, the folks I’ve been working with at the Workers’ Project, a research and education nonprofit, have experimented scores of times with worker representation through social organizing. We are confident and hopeful various configurations of workers have been experimenting elsewhere. We have learned some lessons from our successes and failures.

One instructive experiment focused on unemployed workers’ social organizing for voice and power during and after the Great Recession. A torrent of mostly non-union workers, newly jobless after the economic crash, were overwhelming Indiana’s unemployment offices. The state offices were disinterested or actively hostile toward unemployed workers. Meanwhile, a union foundry in Kendallville, Ind., was closing. Busted up from years of foundry work, the union president, the late Leonard Hicks, was ready to quit working but unwilling to stop representing his folks as their lives became even tougher.

To address both problems, we brought together union and non-union unemployed workers to bargain with the state through a social organizing movement, Unemployed and Anxiously Employed Workers’ Initiative (UAEWI).

First, we listened as workers talked about problems and possibilities. We developed a survey. In the unemployment office parking lot, we surveyed unemployed workers about how the office was doing, giving them a report card style survey to fill out, with a voluntary contact information form. The state immediately called in the police to stop us—claiming that we were trespassing on private property, because the public office was housed on private land. We alerted the media and the state received reams of bad press.

The media coverage revealed to unemployed workers they could have a voice and some grit. They began coming to UAEWI meetings, along with the union foundry workers in Kendallville and other union shops experiencing mass lay-offs.

Our ranks of unemployed included workers with education and experience in sociology. With their assistance, the UAEWI members developed and collected a broader survey. The survey was not for academic publication, or for an institutional or partisan agenda, but instead for collective self-representation. It had real value for public policy discussions. While the political class talk about or for unemployed workers, UAEWI represented themselves.

Membership was determined solely by a worker’s decision to participate in the survey—to voluntarily add their voice to the collective voice. We conducted education and training classes as well as group talk sessions. Within a few months, the State’s unemployment office management found themselves in a union hall across a bargaining table with the UAEWI members. Unemployed workers gained improvements in services including increased staffing and training but most importantly, a change in attitude. Most UAEWI members had never been union members; they learned how collective representation worked.

For seven more years, we continued and broadened annual UAEWI surveys. We gathered responses wherever we found voiceless workers: from folks leaving food banks, township trustee office, social service agencies, a mobile Mexican consulate. Our sampling exceeded 500 workers in 2012 and was conducted in English, Spanish and Burmese. We asked more wide-ranging public policy questions about issues such as economic development.

UAEWI members bargained in the public sphere. They provided local, state, national, and international journalists with reliable data, context, and access to socially organized workers willing to tell compelling stories. Some of the stories supported Peabody and Murrow investigative journalism awards. UAEWI members presented survey report results to other members and the public in very public formats ranging from traditional research reports to semi-theatrical presentations and even cinematic effort. UAEWI members attended and spoke before the local and state Workforce Investment Boards, Fort Wayne City Council, Indiana Economic Development Board meetings.

Just the modest act of asking drew workers out of their isolation and into solidarity. Many UAEWI members were personally transformed as they shaped public policies from the unemployment office to well beyond. They were co-creating their own futures. This was bargaining in the public sphere, bargaining with the state over the terms and conditions of our lives. Bargaining with state is foundational for worker representation in the 21st century, just as it was with Coxey’s Army in the 19th century. The UAEWI effort only updated representation with a bit of worker-driven social science.

In the last four years, learning from UAEWI effort, we have experimented with applying worker-driven social science and applying it to original NLRA intent in workplaces. In labor speak workers develop “non-certified minority status bargaining” with so-called private employers. (This less legalistic, institutional and technocratic organizing was envisioned when the NLRA was first implemented—the work of labor law scholar, the late Clyde Summers, as well as Charles Morris’s in Blue Eagle At Work documents this well.)

We helped workers develop their collective understanding and identity to, from the worm’s eye view, make things better at work. In each case, their self-organizing grew from “solidarity selfies” and a survey of co-workers’ thoughts on the terms and conditions of their employment. It is simultaneously concerted activity under the NLRA and, more importantly, intellectual property owned by the workers. We provided supportive research and education for Latina workers at a manufacturing plant; sub-contracted workers at a retail outlet; and Burmese workers at a manufacturing plant. One group faced unsafe work conditions causing miscarriages. The second faced a classic bullying boss culture. The third faced systematic ethnic and language discrimination.

We provided them access to social science, legal support, and social organizing talent, as well as a place in our community of solidarity. We supported their conversations to develop strategies to negotiate with the boss. They succeeded on their own terms. First the survey process overcame employer-imposed isolation. Workers experienced their own workplace “me too” revelations which led to collective voice. They built their representational power by developing a research report on their work lives that became collectively owned and copyrighted intellectual property with real bargaining value. Each unit could choose to share the findings with whoever they decide in the public-private spectrum: media, government regulators, elected officials, customers, suppliers, competitors, stockholders or, if willing, across the table with the boss.

The Latina factory workers met with the plant owner to present their findings. Safety conditions improved, maternity leaves were granted, healthy babies were born, and little Jose Manuel now attends our events. Some of the workers were fired, most moved on to other jobs, some won legal settlements. Most remain active in the Hispanic Workers Circle.

The subcontracted retail workers successfully confronted top national corporate management. They ended the bullying management culture and maintain an ongoing social “solidarity union” collecting no dues and participating in all Workers’ Project activities.

The Burmese factory workers efforts are ongoing. They constitute a significant portion of our Burmese Workers Circle which is developing as a workers’ and civil rights organization.

Stay tuned for more news: All groups continue full-throated participation in Workers’ Project activities and Fort Wayne’s huge annual Labor Day picnic.

We think collective intellectual property is an intriguing innovation. As workers we are robbed of our intellectual property as employers pick our brains, pick our pockets, only to pick up and leave us jobless. As consumers, our data has collected by others, monetized and politicized at our expense to benefit wealth. Intellectual property we own collectively can help us bargain with anyone in the power spectrum, from private employer to the state.

Owning our own voices and power, collective human agency, is our democracy where we work and where we live. Valuing each other, sharing our experiences, information, ideas, and respect seems a great place to start especially when you are starting at scratch. Social organizing, old school or innovative, is still solidarity.

This blog was originally published at In These Times on November 16, 2018. Reprinted with permission. 

About the Author: Tom Lewandowski is co-founder and director of the Workers’ Project in Fort Wayne, Ind.


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BREAKING: Iowa Lawmakers Pass Sweeping Anti-Union Bill

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DES MOINES, Iowa – Lawmakers in Iowa have voted to dismantle the state’s 40-year-old collective bargaining law, dramatically weakening the power of public sector labor unions and leaving some 185,000 public workers unable to bargain over benefits, healthcare, vacations, retirement, and nearly all workplace issues outside of wages.

Iowa is a right-to-work state, and the new law would prevent voluntary union dues from being deducted from a public employee’s paycheck. It would also require regular recertification votes. Police officers, firefighters and transit workers are exempt from most of the bill’s provisions.

Republican lawmakers introduced their union-busting bill on February 7 and fast-tracked it through the legislative process. Both the House and Senate, which are controlled by the GOP, approved the bill Thursday, passing the most sweeping and impactful changes to Iowa law in decades. Gov. Terry Branstad is expected to sign the bill soon.

During the 10-day stretch before lawmakers voted, Iowa saw its largest labor mobilization in years, with thousands of union members standing up, speaking out and taking action. The weekend before Valentine’s Day, workers and their families packed legislative forums and town hall meetings in districts across the state. Teachers and their allies rallied and marched at the state Capitol.

A union rally and public hearing Monday drew scores of demonstrators so dense that the Iowa Capitol was packed shoulder-to-shoulder on every floor. Firefighters wore their iconic helmets. Nurses showed up after their shifts in scrubs. Workers continued to pour into the Capitol for hours after the event started, with lines of people spilling out of the statehouse entrances. More than 4,600 people went through the Capitol security checkpoints, Radio Iowa reported. Thousands more Iowans flooded statehouse switchboards and lawmakers’ emails.

Minority Democrats in both chambers managed to briefly slow down the bill’s passage, extending debate over three days of marathon sessions and raising important questions about outside influence by corporate interests like the Koch Brothers, ALEC and Americans for Prosperity.

“We’re talking about people’s lives, their kids, and their homes,” said Candace Acord, an AFSCME member and community-based corrections officer from Iowa City. “I don’t understand what the problem is here when we just want health insurance for our families.”

“My main concern is insurance may now become so unattainable due to the cost that I may not be able to afford healthcare for me and my family,” said Lynette Halsted, an SEIU member and emergency room nurse at the University of Iowa Hospitals and Clinics. “Staffing ratios are no longer permissible subjects of bargaining, but evidence-based practice shows that the more patients a nurse has the worse the outcome can be for patients.”

The nonpartisan Iowa Policy Project weighed in with a report on the impacts of the new law, stating it will:

“exacerbate existing trends—low and stagnating wages, growing uncertainty about access to affordable health care, and increasing income inequality—that are already accelerating downward mobility for many Iowa households. And these effects are likely to disproportionately harm rural communities, low-income workers, and to threaten the quality of the health care, public safety, and public education systems upon which all Iowans depend.”

Thousands of people also submitted written comments opposing the union-busting bill.

Carrie Dodd, a junior high English teacher from rural Madrid, wrote: “My husband and I both work in school districts and we will be financially devastated if we lose our insurance, receive lower pay, and have to work more for less.”

T.J. Foley, a senior at Valley High School in Des Moines, wrote: “Union power is key to effective teachers, and effective teachers mean Iowa’s students are successful and our future as a state is secure.”

The recent demonstrations highlighted the power, however diminished, that labor still has to educate, organize, and mobilize workers and their families, and the critical role unions play in bringing every day, regular people into social justice movements.

But the future of organized labor is now more uncertain than ever, and the path forward is unclear. Many workers at the demonstrations said they believe the next step is to re-elect Democrats into the majority in 2018. That task will be even more difficult now that Iowa’s public sector unions have been severely weakened, arguably the real purpose of the new law.

There is also no guarantee a Democratic majority would restore collective bargaining rights. Democrats controlled the Iowa Senate in 2013, and collaborated with a Republican governor and House Republicans to pass the largest corporate property tax cuts in state history, cuts which caused a budget shortfall that Republicans are now using to justify their attacks on labor. Unions were unable to expand their collective bargaining rights even when Democrats held a trifecta of political power in 2008.

But workers aren’t giving up.

“We will resist and persist in the face of these neoliberal attacks,” said Naoki Izvmo, a teaching assistant and UE-COGS member at the University of Iowa. “Workers are the true source of power in society, not the law.”

This blog originally appeared at Inthesetimes.com on February 16, 2017. Reprinted with permission.

David Goodner is a writer, organizer and Catholic Worker from Iowa City. Follow him on twitter @davidgoodner.


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