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What You Need to Know About Washington, D.C.’s Initiative 77 and the Minimum Wage

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On Tuesday, Washington, D.C., voters will have an opportunity to vote on Initiative 77, a ballot measure supported by a wide array of progressive and labor organizations that would eliminate the subminimum wage for tipped workers and give many working families a much-needed raise.

Initiative 77 would increase the tipped minimum wage to match the full wage: If it passes, the initiative would phase out the tipped minimum wage, leaving a flat $15 per hour minimum wage for D.C. workers. This would be phased in between now and 2025, giving restaurant and bar owners more than enough time to adjust to the change.

Tipped workers aren’t limited to restaurants and bars: Many other workers get tips, too, including manicurists/pedicurists, hairdressers, shampooers, valets, taxi and rideshare drivers, massage therapists, baggage porters and others. Very few of them get anywhere near the 20% standard you see in high-end restaurants and bars.

The current law is changing, but it will still leave tipped workers behind: The current minimum wage in D.C. is $12.50 an hour, with a minimum wage of $3.33 for tipped workers. If tipped workers don’t earn enough from tips to get to $12.50, employers are supposed to pay the difference. After existing minimum wage increases are fully implemented, the full minimum wage for D.C. will be $15 an hour, while the tipped minimum will increase to $5. The cost of living in D.C. is higher than every state in the United States except Hawaii.

D.C. has a particular problem with the minimum wage: As one of the places in the United States with the highest costs of living, low-wage workers are hit harder by discriminatory laws. D.C. has the largest gap in the country between its tipped minimum wage and its prevailing minimum wage. Tipped workers in D.C. are twice as likely to live in poverty as the city’s overall workforce. Tipped workers in D.C. are forced to use public assistance at a higher rate than the overall population, with 14% using food stamps and 23% using Medicaid.

Wherever tipped wage jobs exist, they are typically low-wage, low-quality jobs: Nationally, the median wage is $16.48 and tipped workers median wage is $10.22. Nationally, 46% of tipped workers receive public assistance, whereas non-tipped workers use public assistance at a rate of 35.5%. Workers at tipped jobs are less likely to have access to paid sick leave, paid holiday leave, paid vacations, health insurance and retirement benefits. Seven of the 10 lowest-paying job categories are in food services, according to the U.S. Bureau of Labor Statistics.

Tipped workers are more likely to end up in poverty: In states where the tipped minimum wage is at the federal standard of $2.13, the lowest in the country, the poverty rate for all workers is 14.5%, which breaks down to 18% for waitstaff and bartenders and 7% for non-tipped employees. What day of the week it is, bad weather, a sluggish economy, the changing of the seasons and any number of other factors completely outside of a server’s control can influence tips and make a night, a week or a season less likely to generate needed income.

The predictions of doom and gloom about raising the minimum wage or the tipped minimum wage never come true: Eight states already have eliminated the tipped wage and the restaurants in those states have higher sales per capita, higher job growth, higher job growth for tipped workers and higher rates of tipping. In fact, states without a lower tipped minimum wage have actually seen sectors where tipping is common grow stronger than in states where there is a subminimum wage. This is consistent with the data from overseas where countries have eliminated tipping and subminimum tipped wages. In states without a subminimum tipped wage, tipped workers, across the board, earn 14% higher. Increased minimum wages lead to employers seeing a reduction in turnover and increases in productivity. And, while there are certainly some exceptions, tippers in states without subminimum wage don’t tip less.

Tipped workers are more likely to be women, making lives worse for them and their families: Of the 4.3 million tipped workers in the United States, 60% of them are waiters and bartenders. Of that 2.5 million, 69% of them are women. Furthermore, 24% are parents, and 16% of them are single mothers. Half of the population of tipped bartenders and waitstaff are members of families that earn less than $40,000. Increasing the tipped minimum wage lets parents work fewer nights and have more time at home with their families. It also helps provide for a more steady, predictable income. Since 66% of tipped workers are women, a lower tipped minimum wage essentially creates legalized gender inequity in the industry. These lowest-paid occupations are majority female. More than one in four female restaurant servers or bartenders in D.C. live in poverty, twice the rate of men in the same jobs.

Harassment and objectification are encouraged by the tipped system: The stories about harassment in the restaurant industry are legion. Servers are forced to tolerate inappropriate behavior from customers in order to not see an instant decrease in income. This forces them to subject themselves to objectification and harassment. Workers in states with a subminimum tipped wage are twice as likely to experience sexual harassment in the workplace. In D.C., more than  90% of restaurant workers report some form of sexual harassment on the job. Women’s tips increase if they have blond hair, a larger breast size and a smaller body size, leading to discrimination against women that don’t have those qualities. Nearly 37% of sexual harassment charges filed by women to the EEOC come from the restaurant industry. This rate is five times higher than the overall female workforce. LGBTQ serversalso face a higher rate of harassment in order to obtain tips. Sexual harassment of transgender employees and men is also high in tipped environments. Some 60% of transgender workers reported scary or unwanted sexual behavior. More than 45% of male workers reported that sexual harassment was part of their work life, as well.

The subminimum tipped wage harms people of color: Research shows that tipping has racist impacts, too. Nonwhite restaurant workers take home 56% less than their white colleagues. Research shows that if the minimum wage had held the value it had in 1968, poverty rates for black and Hispanic Americans would be 20% lower. While many restaurants and bars claim to be race-neutral in hiring, the evidence shows that race often has an impact on who gets hired for jobs that directly interact with customers. And fine-dining environments, the ones where servers and bartenders make the most in tips, are much more likely to hire white servers and bartenders, particularly white males. Also, customers, generally speaking, tip black servers less than white servers. For instance, black servers get 15-25% smaller tips, on average in D.C.

The people behind the opposition to 77 are not worker- or democracy-friendly: Public disclosures show that the Save Our Tips campaign that opposes Initiative 77 is heavily funded by the National Restaurant Assocation. This particular NRA represents the interests of, and is funded by, big corporations, such as McDonald’s, Yum! (which owns Taco Bell, Pizza Hut & KFC), Burger King, Darden Restaurants (which owns Olive Garden, Red Lobster and others) and more. The group spends as much as $98 million to oppose minimum wage increases, safety and labor requirements and benefit increases and requirements. Meanwhile, the CEO of the NRA, Dawn Sweeney, took home $3.8 million in total compensation.

The Save Our Tips campaign is managed in part by Lincoln Strategy Group. In 2016, the group did $600,000 worth of work for the Donald Trump presidential campaign. Lincoln Strategy is managed by Nathan Sproul, a Republican consultant and former executive director of the Arizona Christian Coalition. Sproul has a history of being accused of fraudulent election-related activities, including destroying Democratic voter registration forms and creating a fake grassroots effort to undermine the Consumer Financial Protection Bureau.

Another corporate-sponsored group, the Employment Policy Institute, has come out strongly against the initiative and created a website to attack it and ROC. The Institute is the creation of Rick Berman, a wealthy corporate lobbyist who runs campaigns against public interest groups like the Humane Society and labor unions.

Up until 1996, the tipped subminimum wage had been tied into being 50% of the prevailing minimum wage. That year, legislation decoupled the two and the subminimum wage for tipped jobs has stayed at $2.13 nationally, while some states have raised it. The NRA, headed up then by former Godfather’s Pizza CEO Herman Cain, who would go on to run for president, led the charge to separate the two minimum wages.

The separate tipped minimum wage is a burden on employers and invites misuse: The system of tracking tips and wages so that employers can make up the difference is a complex one that is burdensome for employers. The system requires extensive tracking and accounting of tip flows. Not only this, employers are allowed to average tips over the course of a workweek and only have to pay the difference if the average is less than the minimum wage. Tips can also be pooled among various types of restaurant employees. Tip stealing and wage theft are hard to prove and workers are often reluctant to report them out of fear that they will be given fewer shifts or fired.

Employers frequently fail to pay the balance to their employees: While the law requires to make up the balance when tipped wages don’t reach the full minimum wage, employers often fail to do so. The Department of Labor investigated more than 9,000 restaurants and found that 84% had violated this law and had to pay out nearly $5.5 million in back pay because of tipping violations. How many didn’t get caught?

Restaurants are using union-avoidance tactics to sway employees against the initiative: Numerous reports from workers at D.C. restaurants have made it clear that not only are employers singing on to public letters and posting signs against Initiative 77, they are trying to sway their employees, too. Tactics that have been reported are straight from the union-advoidance industry. Many employers are forcing employees to listen to their opinion on the measure. Others have instructed them to evangelize to customers. Some are sending instructions to their employees on how to volunteer at the polls against the Initiative. Others have shared explicitly political videos with employees. Some managers have gone as far as to speak negatively about community organizations advocating for Initiative 77.

This blog was originally published at AFL-CIO on June 18, 2018. Reprinted with permission.


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11 Things You Need to Know on Equal Pay Day

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Equal Pay Day calls attention to the persistent moral and economic injustice working women face. For a woman to earn as much as a man, she has to work a full year, plus more than a hundred extra days, all the way to April 10. The problem is even worse for women of color, LGBTQ women and part-time workers.

Here are 11 things you need to know on Equal Pay Day:

1. Equal Pay Day for women of color is even later: For black women, Equal Pay Day comes later because they are paid, on average, even less than white women. Equal Pay Day for black women is Aug. 7. For Native American women, it’s Sept. 7. For Latinas, it’s Nov. 1.

2. LGBTQ women face a host of related problems: A woman in a same-sex couple makes 79% of what a straight, white man makes. Additionally, they face higher rates of unemployment, discrimination and harassment on the job.

3. It will take decades to fix the problem if we don’t act now: If nothing changes, it will take until 2059 for women to reach pay equality. For black women, parity won’t come until 2124 and for Latinas, 2233.

4. Fixing the wage gap will reduce poverty: The poverty rate for women would be cut in half if the wage gap were eliminated. Additionally, 25.8 million children would benefit from closing the gap.

5. Fixing the wage gap would boost the economy: Eliminating the wage gap would increase women’s earnings by $512.6 billion, a 2.8% boost to the country’s gross domestic product. Women are consumers and the bulk of this new income would be injected directly into the economy.

6. Women aren’t paid less because they choose to work in low-paying jobs: The gender pay gap persists in nearly every occupation, regardless of race, ethnicity, education, age and location.

7. Education alone isn’t the solution: Women are paid less at every level of education. Women with advanced degrees get paid less than men with bachelor’s degrees.

8. The Paycheck Fairness Act would help: This bipartisan legislation would close loopholes in existing law, break harmful patterns of pay discrimination and strengthen protections for women workers.

9. Being in union makes a difference: Women who are represented by unions and negotiate together are closer to pay equality, making 94 cents per dollar that white men make.

10. Business leaders have a role in the solution: Individual business owners and leaders have the power to close the pay gap and improve people’s lives. Catalyst offers five tips on what business leaders can do.

11. Many companies already are working on solutions: Learn from them.


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Eight years after the last minimum wage increase, Democrats want to give 41 million workers a raise

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The federal minimum wage has been stuck at $7.25 an hour since July 24, 2009—for eight years. Thanks to Republicans in Congress and the White House, it won’t be going up any time soon, and though many states have raised their minimum wages, 21 states remain stuck at $7.25 an hour. That’s a poverty wage. A new analysis from the National Employment Law Project shows what the Democrats’ Raise the Wage Act of 2017—which would take the minimum wage up to $15 by 2024, a gradual raise by any standard except the Republican “no raise ever” standard—would do for low-wage workers:

  • 20.7 million workers would see pay raises in the 21 states whose minimum wages are stuck at $7.25.
  • Fully half of the 41.5 million workers who would see pay increases are in the 21 states stuck at $7.25.
  • In the 13 other states with minimum wages of less than $9, nearly 13 million more workers also would see their hourly pay rise.
  • Of all the workers nationwide who would receive raises, 8 in 10 are in the 34 states with the lowest minimum wages.
  • In 19 of the 21 states at $7.25, more than 30 percent of wage-earners would benefit from raising the federal minimum wage to $15 by 2024; the highest share is in Mississippi, with 44.4 percent.

Republicans want these workers stuck at poverty wages. There’s no other serious explanation for their refusal to raise the minimum wage over the past eight years.

 This blog was originally published at DailyKos on July 24, 2017. Reprinted with permission.
About the Author: Laura Clawson is labor editor at DailyKos. 

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Bosses are stealing billions from their workers’ paychecks, but it’s not treated like a crime

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 Here’s a kind of theft almost no one goes to prison for. When an employer doesn’t pay workers the money they’ve earned, it has the same effect as if they got paid and then walked out on the street and had their pockets picked. But somehow wage theft—not paying workers the minimum wage for the hours they’ve worked, stealing tips, not paying overtime, and other ways of not paying workers what they’ve earned—doesn’t get treated as the crime it truly is. It has a huge impact, though, as a new study from the Economic Policy Institute shows. The EPI looked at just one form of wage theft: paying below minimum wage. Just that one type of violation steals billions of dollars out of workers’ paychecks:
  • In the 10 most populous states in the country, each year 2.4 million workers covered by state or federal minimum wage laws report being paid less than the applicable minimum wage in their state—approximately 17 percent of the eligible low-wage workforce.
  • The total underpayment of wages to these workers amounts to over $8 billion annually. If the findings for these states are representative for the rest of the country, they suggest that the total wages stolen from workers due to minimum wage violations exceeds $15 billion each year.
  • Workers suffering minimum wage violations are underpaid an average of $64 per week, nearly one-quarter of their weekly earnings. This means that a victim who works year-round is losing, on average, $3,300 per year and receiving only $10,500 in annual wages. […]
  • In the 10 most populous states, workers are most likely to be paid less than the minimum wage in Florida (7.3 percent), Ohio (5.5 percent), and New York (5.0 percent). However, the severity of underpayment is the worst in Pennsylvania and Texas, where the average victim of a minimum wage violation is cheated out of over 30 percent of earned pay.

Young workers, women, immigrants, and people of color are disproportionately affected because they’re overrepresented in low-wage jobs to begin with. This wage theft is keeping people in poverty—the poverty rate among workers paid less than the minimum wage in this study was 21 percent, and would have dropped to 15 percent if they’d been paid minimum wage. If their bosses had followed the law, in other words.

The wage thieves rarely face penalties for stealing, and when they do:

Employers found to have illegally underpaid an employee are usually required only to pay back a portion of the stolen wages—not even the full amount owed, much less a penalty for violating the law.

The law basically gives employers permission to steal from workers, in other words. And it sure won’t be getting better under Donald Trump.

This blog originally appeared at DailyKos.com on May 12, 2017. Reprinted with permission. 

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.


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Would You Trust Henry Kissinger with Your Social Security?

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Years ago a political scientist said that the mass media can’t influence what people think, but it can influence what people think about. Today it does both. If you’re a billionaire who wants to manipulate public opinion, that means you’ll keep feeding it stories that serve your ideology and self-interest.

Hedge fund billionaire Peter G. “Pete” Peterson is a master of the art. At a time when 47 million Americans (including one child in five) live in poverty, when our national infrastructure is collapsing and the middle class dream is dying before our eyes, he’s managed to convince a few voters, a lot of politicians, and far too many major-media journalists that our most urgent problem is … federal deficit spending.

They don’t just want you to be concerned about it. They want you to be afraid.

The front for this effort (one of many assembled by the Peterson Foundation) is called “The Coalition for Fiscal and National Security,” and they’ve assembled a list of prominent figures to promote it. Let us consider the message, and the messengers.

******************

The group’s mantra is a statement that retired Admiral Mike Mullen first made when he was Chairman of the Joint Chiefs of Staff:

“The single biggest threat to our national security is our debt.”

That’s a surprisingly bold and naive proclamation, especially from someone of Mullen’s stature. It takes a lot of imagination, and some highly implausible assumptions, to believe that our national security is really endangered by federal deficits.

The Peterson Foundation provides both, of course. Unfortunately its manipulated facts and figures fail to make their case, even when taken at face value.

What would a rational list of nonmilitary risks look like? Climate change would almost certainly top the list. Many military experts already consider it a grave national security threat. A bipartisan group of 48 defense leaders and experts – including, perhaps paradoxically, some of the Peterson group’s signatories – signed a full-page ad let year entitled “Republicans and Democrats Agree: U.S. Security Demands Global Climate Action.”

One defense expert called climate change “the mother of all risks.”

It’s easy to see why. Rising sea levels threaten many of our coastal towns and cities, including most of lower Manhattan. Millions of Americans are likely to become internal refugees in their own country, posing the risk of widespread lawlessness and instability.

Climate change is expected to trigger a number of future conflicts around the globe, as nations and peoples compete for increasingly scarce resources. Some scientists believe that climate change contributed to the rise of ISIS in Iraq and Syria.

Wealth inequality also belongs near the top of the list. Extreme inequality makes a society unstable. Today millions are trapped in poverty while the20 richest Americans own more wealth than half the entire nation – some 150 million people in 57 million households.

Persistent poverty plagues minority communities, while the 400 richest Americans own more than the nation’s entire African-American population (plus one-third of this nation’s Latinos). There are growing rates of suicide, opioid overdose, and deaths from alcoholism among lower-income whites. Economist Anne Case calls them “deaths of despair.”

What will happen if the middle class continues to collapse, if poverty remains inescapable for generation after generation, if most people face working years filled with dashed hopes and retirements plagued by penury?

Despair can turn to rage, sometimes without warning.

That’s one reason why it’s especially imprudent for the corporate-friendly “Coalition” to target Social Security, along with the rest of the social safety net. Sure, they try to sound reasonable. They even mention cutting the military budget (although they tip their hand by emphasizing military health care and payroll expenses, rather than cost overruns or expensive weapons systems.)

But they always turn to social programs, sometimes with not-so-subtle transitions like this: “Defense spending is the largest single category of discretionary spending… In 2015, it was second only to Social Security spending.”

See what they did there?

There’s little chance of getting tax increases or cuts in military spending through this Congress or the next, and they know it. The drumbeat for lower deficits only serves to undermine the social safety net – when we should be spending more to rebuild our economy.

******************

When a group uses prominent people to promote its arguments, it’s prudent to ask: Who are these people? Can we trust them? Are they wise and just?

Well, there’s former Michael Hayden, who headed both the NSA and the CIA. History will remember Hayden for giving sworn testimony to Congress that contained numerous falsehoods, as documented by the Senate Subcommittee on Intelligence. (Experts say it’s very difficult to convict someone for lying to Congress, but it’s still wrong — and illegal.)

Hayden signed off on detainee abuses that he argues were not technically“torture.” He insists other torturers have done much worse, in case that’s your moral standard.

Madeleine Albright’s on the list too. She was widely criticized for answering “we think the price is worth it” when asked about the Iraqi children who died as the result of sanctions against Iraq.

But the most prominent name on the list is Henry Kissinger’s. Is Kissinger credible?  It’s true that he’s popular among media and political elites, but that sad fact only serves to remind us that some memories are short – and that, for some people, the ties of social status outweigh those of morality and decency.

It was Kissinger who reportedly fed confidential information to then-candidate Richard Nixon – information that was used to sabotage the Vietnam peace talks, extracting a massive toll in human lives just to boost Nixon’s election chances.

It was Kissinger who delivered the illegal order to bomb Cambodia and Laos. More bomb material rained down on these tiny nations than was used in all of World War II. His actions cost countless lives and gave rise to the mad, massacring Pol Pot regime.

It was Kissinger who ignored the pleadings of a US diplomat and gave the green light to Pakistani atrocities in what is now Bangladesh, praisingPakistan’s dictator for his “delicacy and tact” while ridiculing those who “bleed” for “the dying Bengalis.”

“Yahya hasn’t had so much fun since the last Hindu massacre!” Kissinger said of Pakistani dictator Yahya Khan. (The government of Bangladesh reported that 3,000,000 people died in the “fun.”)

Kissinger supported the violent overthrow of the Chilean government by a right-wing dictator. Kissinger gave the go-ahead to the Indonesian government’s massacre of from 100,000 to 230,000 people in East Timor. (Estimates vary.) Kissinger’s other offenses and blunders are too numerous to list here.

His intellect is overrated, too. Princeton professor Gary Bass writes that “Kissinger’s policies were not only morally flawed but also disastrous as Cold War strategy.”

Would you trust this man with your Social Security? Do you think he’d make wise and humane decisions about our society’s priorities?

******************

Sure, there are some decent people on the Coalition list. But they’ve been misled by tricksters and lulled by the groupthink that comes from decades inside a bubble of insular privilege.

And what a bubble it is. It’s a glassy gold bubble that filters out every color of the rainbow except its own, bathing its occupants in a warm autumn-colored glow as strangers shiver in the cold blue daylight outside. The bubble speaks with the voice of false authority. It’s a floating oracle with the soul of a confidence man.

But the crowd is thinning out. There are real threats to face outside the bubble: poverty, inequality, a crumbling infrastructure, a dying planet. It’s time for the bubble to disappear, as all bubbles eventually do, by blowing away on the wind or vanishing with a soft pop in the light of the midday sun.

This blog originally appeared in ourfuture.org on June 16, 2016.  Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”


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Newly-Elected Congressman: Anti-Poverty Programs Are ‘A Bribe Not To Work That Hard’

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Anti-poverty aid programs are nothing more than a bribe to keep low-income people from getting married or going to work, according to a new U.S. Congressman from Wisconsin.

“When you look at that amount of money, which is in essence a bribe not to work that hard or a bribe not to marry someone with a full-time job, people immediately realize you have a problem,” Rep.-elect Glenn Grothman (R) said on a statewide television show aired Sunday evening.

When the show’s host gave him a chance to walk back the bribery line, Grothman instead doubled down. “Well, if you tell somebody you’re going to get $35,000 if you don’t get married and you’re not going to get anything if you marry somebody making 50 grand a year, it’s certainly a strong incentive not to raise children in wedlock,” he said.

That $35,000 figure is seemingly plucked from a Cato Institute study that was discredited more than a year ago by the Center on Budget and Policy Priorities (CBPP). As the CBPP explained last August, the Cato study describes theoretical totals that a person could extract from a combination of anti-poverty programs without bothering to link that theoretical figure back to practical reality. The study’s assumptions about how bureaucratic rules and real-world experience interact produce “a misleading portrayal of the trade-off between work and welfare.” In the real world, CBPP wrote, the vast majority of public assistance program beneficiaries are working families rather than jobless ones, and very few families that receive public benefits tap into every available system in the way Grothman’s $35,000 figure implies.

While Grothman’s use of the word “bribe” caught his interviewer’s attention, a different, less-inflammatory phrase in his remarks is concealing an even larger deception. In portraying public assistance programs as an incentive “not to work that hard,” Grothman insinuates that people who work part-time or earn so low a wage that they qualify for housing aid and food stamps aren’t doing hard work, or that they are settling for poorly compensated positions rather than chasing better jobs. The comment simultaneously ignores the reality of the modern American labor market — where there are two job applicants for every opening and most hiring comes from service industry jobs that pay poverty wages — and hints that people who skull pots and fry potatoes for $8 an hour are lazy.

For most of the people Grothman is talking about, working full-time hours in a physically or emotionally demanding service job doesn’t provide enough income to survive. Six out of seven children who get health insurance from the federal government have parents who work. Six out of seven able-bodied food stamps recipients had a job within a year of their enrollment date, and more than half work while on food stamps. The work requirements that conservatives like Grothman enshrined during the Clinton-era welfare reform push have made the safety net less effective during recessions when jobs are scarce, but they mean that very few families are getting the sort of free ride the Wisconsin Republican imagines.

The social contract whereby a person’s willingness to work hard assured them of basic economic security has frayed. Progressives see that as a reason to raise the minimum wage to restore buying power low-income workers have lost to inflation. But Grothman and several of his fellow anti-safety net conservatives say the solution is instead to spend less money helping poor people (despite the fact that leaving them to fend for themselves is more expensive for the economy as a whole) and more money encouraging them to get married (even though that does nothing to cure poverty).

This blog originally appeared in Thinkprogress.org on December 2, 2014. Reprinted with permission. http://thinkprogress.org/economy/2014/12/02/3598130/welfare-bribe-grothman/

About the Author: Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org. He previously worked as an organizer on various political campaigns from New Hampshire to Georgia to Missouri. His writing on music and film has appeared on TinyMixTapes, IndieWire’s Press Play, and TheGrio, among other sites.


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Federal Unemployment Benefits Expire Due To Congressional Inaction

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Sen. Dianne Feinstein (D-CA) urged lawmakers to embrace a package that could avert the so-called fiscal cliff, noting that 2.1 million Americans have already lost federal unemployment benefits as a result of Congressional inaction. “From this point on, it is lose-lose,” Feinstein explained, during an appearance on Fox News Sunday. “My big worry, is, a contraction of the economy. The loss of jobs, which could be well over 2 million in addition to the people already on unemployment.”

Indeed, the National Employment Law Project, a worker advocacy group, projects that “more than 2 million Americans will stop receiving benefits after Dec. 29, when the federal Emergency Unemployment Compensation program will cease to exist.” The benefits have kept 2.3 million out of poverty last year alone, and the Congressional Budget Office projects that a full, year-long extension would lead to the creation of 300,000 new jobs.

The initiative requires recipients to search for a job while receiving payments, and one study found that unemployment recipients search harder for jobs than those who are not receiving money from the program.

Earlier this week, Senate Minority Leader Mitch McConnell (R-KY) demanded spending cuts to pay for the program, which would cost $30 billion. Democrats have been pushing for a full extension of benefits.

This post was originally posted on Think Progress on December 30, 2012. Reprinted with Permission.

About the Author: Igor Volsky is the Deputy Editor of ThinkProgress.org. Igor is co-author of Howard Dean’s Prescription for Real Healthcare Reform and has appeared on MSNBC, CNN, Fox Business, Fox News, and CNBC television, and has been a guest on many radio shows. In 2011, Forbes named Igor one of their top 30 under 30 in Law & Policy. Igor grew up in Russia, Israel and New Jersey and graduated from Marist College in Poughkeepsie, New York. He was previously the Health and LGBT editor at ThinkProgress.


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The Price of Cheap: Slave Labor, No Jobs

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Cheap. Low prices. Bargains. It’s the American way of recent decades–a promise we’ve been given by everyone from politicians to corporate marketing campaigns. And most people find it hard to see the devastating cost to us as a society. But, sometimes things happen at once that can give a very clear picture, if you look. For your consideration.

First, a now well-known episode:

While Twinkies have a reputation for an unlimited shelf life, the company that makes the junk food may not.Hostess Brands, the bankrupt maker of cream-filled pastries like Twinkies and Ho Hos, said on Friday that it planned to wind down its operations. The decision comes a week after one of the company’s biggest unions went on strike to protest a labor contract.

Richard Trumka has it exactly right:

“What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor,” Trumka said in a public statement. “Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price.”…“These workers, who consistently make great products Americans love and have offered multiple concessions, want their company to succeed,” Trumka said in the statement. “They have bravely taken a stand against the corporate race-to-the-bottom. And now they and their communities are suffering the tragedy of a needless layoff. This is wrong. It has to stop. It’s wrecking America.”

Second, some of those cheap goods people snap up at Ikea were made by slave labor:

Ikea has long been famous for its inexpensive, some-assembly-required furniture. On Friday the company admitted that political prisoners in the former East Germany provided some of the labor that helped it keep its prices so low.A report by auditors at Ernst & Young concluded that Ikea, a Swedish company, knowingly benefited from forced labor in the former East Germany to manufacture some of its products in the 1980s. Ikea had commissioned the report in May as a result of accusations that both political and criminal prisoners were involved in making components of Ikea furniture and that some Ikea employees knew about it.

And, lastly, Black Friday is approaching–and Wal-Mart workers are asking for people to assist in their fight back against the Beast of Bentonville, the paragon of low-cost.

So, the lesson:

If we pull all those strands together–the destruction of the lives of thousands of workers who made Twinkies; the sweat that brought people the couch or bed they picked up in their car at Ikea; and the hard times hundreds of thousands of people have to endure to eke out a tiny paycheck from Wal-Mart–it tells the tale of America.

Cheap means the end of the middle-class, not to mention the mythical American Dream because cheap means minimum wage jobs, no health care, no pensions.

Low-cost means paychecks that don’t make it possible for a worker to get through the end of the month without seeing her or his financial debt grow larger.

Bargains are only beneficial to the fat-cat CEOs who pocket obscene paychecks because hidden behind that “bargain” price is an endless cycle of poverty and despair: to give millions of people “bargains”, CEOs manufacture products in low-wage countries or low-wage factories, and, the, they pay–or fire, in the case of Twinkies–workers every declining wages…and, then, those same workers don’t have enough money to buy much–so they are forced to, then, shop at the very low-wage stores–Wal-Mart being the prime example–that are the engine for the destructive cycle.

Just something to think about everytime we are assaulted by a TV ad, or coupon or billboard promising a bargain.

It isn’t more than a bargain with the devil of the bankrupt so-called free market.

This article was originally posted on Working Life on November 16, 2012. Reprinted with Permission.

About the Author: Jonathan Tasini is is a strategist, organizer, activist, commentator and writer, primarily focusing his energies on the topics of work, labor, and economy. In 2006, he unsuccessfully challenged incumbent U.S. Senator Hillary Rodham Clinton in the Democratic primary.


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Australia Seeks to ‘Manage’ the Poor While Making Them Poorer

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When Mitt Romney derides the legions of Americans who are supposedly utterly dependent on government and are ruining the country’s entrepreneurial spirit, we should remember that while this disdain for the poor may have a uniquely American inflection, the greed-is-good ethos flourishes in other rich nations. In the land down under, we see a mirror image of the political establishment’s frontal assault on poor communities, with welfare policy acting as a cudgel for blaming the epidemic of poverty on the poor themselves.

The Australian government has been tightening its grip on welfare benefits through the Income Management program, which essentially dictates how the poor should spend their benefits. Participants may have about 50 to 70 percent of their money placed under state control, reserved for essential items like food.
Like welfare reform in the United States, this is retrofitted paternalism: participants must spend the “quarantined” money using a “Basics Card” at government-approved outlets. The rationale is that too many poor people would squander money on gambling, drinking, pornography and other unproductive things when given a chance.

The program was first piloted in destitute aboriginal communities that had become notorious for cases of family crisis and child abuse. Income Management is now spreading to several new areas, according to the Australian Council of Social Services (ACOSS), with enrollment based on “referral from child protection authorities” and referrals from social workers “on the grounds of ‘vulnerability.’ ” The targeting of these already stigmatized groups–indigenous people, parents in troubled homes, and others deemed financially incompetent–reflects the myth that poverty is cultural and not the result of oppressive structures.

A recent announcement on the introduction of Income Management in Anangu Pitjantjatjara Yankunytjatjara (APY) lands in southern Australia suggests that some communities are eager to comply: “APY Lands residents told us income management would help them better manage their money and help stop humbugging, ensuring there is enough money for life essentials, such as food, housing and clothing.”

To opponents of the program, the main problem facing poor people isn’t their bad self-management, but the faillure of the social service system to provide adequate economic supports for “life essentials.” Adding to the attack on vulnerable families, Income Management has been rolled out with another strict “intervention”: the threat of suspending certain welfare benefits for parents “whose children are not enrolled or regularly attending school,” thus further punishing poor parents and their children.

A coalition of community-based service providers and advocacy organizations has dismissed Income Management as both discriminatory and needlessly punitive. To progressive anti-poverty advocates, Income Management threatens to infantilize people who want self-sufficiency but are hindered by structural economic hardships. Pam Batkin, head of Woodville Community Services, tells Working In These Times via email that the program:

is a simplistic response to very, very complex social problems. People may be unemployed due to lack of education and skills or they may have a disability. Quarantining their welfare payments if they are behind in their rent will not assist them to find a job. Indeed it may make life more difficult for people. Addictions to alcohol, illegal drugs or gambling are complex social issues which cannot be addressed by simply quarantining a person’s welfare payments.

In a statement of opposition issued last fall, Paddy Gibson of Sydney’s Stop the Intervention Collective said the program was “built on racist assumptions that Aboriginal people are incapable of managing their lives; it imposes harsh control measures rather than creating opportunities.”

A policy analysis by ACOSS points to “a lack of evidence that the groups targeted were unable to manage their financial affairs.” Even Parliament’s own assessment admits this in part.

Activists in indigenous communities have condemned recent welfare legislation as an affront to community sovereignty and economic rights. Following the passage of the so-called “Stronger Futures” bill in July, Dr. Djiniyini Gondarra, Yolngu Nations Assembly spokesperson, said in a statement, “By overruling the wishes of the people, the Government has declared a war on democracy.”

And now that the draconian model has been tested on indigenous people, the government is expanding it to new communities, though these “trials” will purportedly be made more palatable by encouraging voluntary, in addition to state-mandated, participation.

Randa Kattan of the Arab Council Australia, located in Bankstown, where the program has just been launched, likened Income Management to the harsh welfare reforms imposed in the United States during the 1990s, which were also designed to punitively push people off of benefits.

Australia, Kattan said, might “eventually… go down the road of the United States. The government wants to push people off the books, blame them for their situation, for things that are beyond their control.” For service providers, Income Management would damage community relations. “This is a system that will change our relationship and how we work with people. This system is about punishment and control. It’s very nasty.”

Another issue with the government’s scorched-earth welfare reform is the potential for waste. ACOSS argued that while “the program increases the cost to Government of social security payments for those assisted by one third to one half,” in the long-run, “the funds being invested in these programs could be more efficiently invested in initiatives to improve income support, employment assistance, housing, health, education and family services in poor communities.”

The neoliberal arithmetic of Income Management can only be understood in terms of a one-percent political calculus. In both the United States and Australia, privilege is faithfully served at the expense of the poor. Leaders of prosperous Western democracies might be expected to invest public resources more wisely, but then again, they refuse to take orders from anyone on how to spend their money.

This blog originally appeared in Working In These Times on September 21, 2012. Reprinted with permission.

About the author: Michelle Chen work has appeared in AirAmerica, Extra!, Colorlines and Alternet, along with her self-published zine, cain. She is a regular contributor to In These Times’ workers’ rights blog, Working In These Times, and is a member of the In These Times Board of Editors. She also blogs at Colorlines.com. She can be reached at michellechen @ inthesetimes.com.


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What is poverty?

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Mark E. AndersonWhat is poverty? According to the federal government poverty for a family of four is $23,050 a year. The federal minimum wage is $7.25 an hour, which, if you work a 40-hour week, 52 weeks a year, you would earn $15,080 a year. The average rent cost in the United States is $808 (PDF) a month or $9,696 a year. If you use the thriftiest numbers provided by the USDA (I am assuming this is not a healthy diet) groceries for a family of four averages between $507 and $582 (PDF) a month depending on the age of the children. That is $6,084 to $6,984 a year. Food and lodging for this family of four costs between $15,780 and $16,680 a year. I have not even gotten to childcare costs yet, which for a child who is around four years old ranges $3,900 to $15,540 a year (PDF) a year. There is help for this family of four though, the average amount of SNAP benefits available to a family of four? $496 a month, not enough to pay for all of their groceries, however, it is enough to prevent starvation. Even with SNAP benefits it is obvious that in the family of four only one of the adults can work, as the other has to stay home with the children. I cannot imagine how a single parent at this level of income could keep it together let alone get out of poverty.

Federal Poverty Levels 2012

Those are the numbers that define poverty in America; however, the definition of poverty goes much further than those numbers. The American Heritage dictionary defines poverty as, “the state of being poor; lack of the means of providing material needs or comforts.”

Let that soak in for a minute, “lack of the means of providing material needs or comforts.” Things like food, shelter, and stability. You cannot get sick, you cannot take a day off to go to the doctor, you cannot afford to go to the doctor at all. If the price of food goes up you have to take away from some other part of your budget. But what takes the hit? Is your landlord going to allow you to pay less rent? How do you buy school supplies? How do you get to and from work? None of the figures above include transportation.

Imagine living in a world where you don’t know if you have enough money for your next meal, going without food so that your children may eat. Worrying about scraping together enough money to take your child to the doctor for things that most of us take for granted like immunizations. The feelings of inadequacy when your child wants nothing more than a candy bar and you cannot afford it. How grateful you feel when a stranger hands you a dollar bill to buy that candy bar and how miserable it makes you feel inside that you must depend on the kindness of strangers for such small pleasures in life. How hard birthdays and Christmases are when you cannot afford to purchase even the smallest of gifts (especially in our consumer-driven society).

According to conservative mouthpieces if you have a color TV and a refrigerator you are not poor, and several of the memes that exist today say that if you have a newer car and a cell phone you are not poor, discounting that you may have purchased that newer car or cell phone before you lost your job and lost your home. That you need to be drug tested before you can receive any kind of benefits. The poor are second-class citizens who cannot be trusted with the meager benefits that are provided to them. They should, “just get a job,” and “pull themselves up by their bootstraps.” Great advice; however, if you are making minimum wage, you don’t have bootstraps to pull up.

The same people who refuse to help the poor because they are, “lazy and shiftless,” have no problem giving a tax break, that is larger than what someone making minimum wage earns in a year, to someone who makes their money through investments, in other words, a tax break to someone who has never worked a day in their lives. Only because they have a higher social status they deserve what amounts to a government handout in the form of a tax break, while someone working for minimum wage every single day does not deserve a hand up.

While I am not a religious man I find it hypocritical that the people who claim to follow Christianity do not follow some of its core teachings. When my mom forced me to go to confirmation classes at Bashford United Methodist Church in my youth I primarily went through the motions just to make her happy; however, one quote that Rev. Rick Pearson taught me has stuck with me all these years, “If anyone has material possessions and sees his brother in need but has no pity on him, how can the love of God be in him? Dear children, let us not love with words or tongue but with actions and in truth – 1 John 3:17-18.”

This blog originally appeared in Daily Kos Labor on August 19, 2012. Reprinted with permission.

About the Author: Mark Anderson, a Daily Kos Labor contributor, describes himself as a 44 year-old veteran, lifelong Progressive Democrat, Rabid Packer fan, Single Dad, Part-time Grad Student, and Full-time IS worker. You can learn more about him on his Facebook, “Kodiak54 (Mark Andersen)”


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