Last week President Obama gave a speech at Knox College in Illinois in which he announced plans to return his focus to the economy. The agenda he outlined centered on policies to rebuild the middle class leading to growth from the middle out as he put it.
The basic idea sounds good. There are few who would take issue with the focus of his policies: improving the nation’s infrastructure, better school to work transitions, high quality pre-school for everyone. These ideas all score very high in opinion polls and focus groups, although there might be serious differences on what they mean concretely.
But even if we can agree on the best way to rebuild our infrastructure, better our schools, and guarantee high quality pre-school education we will still face serious economic problems well into the future for the simple reason that the economy lacks demand. Generating demand has to be issue one,
» Read more about: A Demand Economy: What’s Needed for Growth »
For many Millennials, the present higher education system exudes an overwhelming sense of permanence. In our short lives, college tuition has always been high, education funding has always been decreasing, and college has always meant a risky “investment in our futures.” We know that these yearly tuition hikes are wrong, and that the current tuition rates already saddle us with debt we probably won’t pay off until we retire, if we retire. For many of us, the consequences are much more immediate, as many low-income students cannot afford higher education anymore. Yet we continue to shell out the money, or take out the loans. Confronted with the institutional power of the higher education system, we feel powerless.
Depressing, right? But history shows us that all is not lost by exposing the mechanisms that brought about the status quo. In their Fall 2012 article in Dissent, Aaron Bady and Roosevelt Institute Fellow Mike Konczal reveal what higher education used to mean and how it was systematically destroyed.
» Read more about: Millennials: Lower Expectations for Higher Education »
Every year Walmart holds a combination shareholder meeting and pep rally to whip up enthusiasm and promote its image as a good investment and a good corporate citizen. These huge events have the quality of a religious revival meeting, including testimonials and music to keep its stockholders and employees (whom Walmart calls “associates”) enthralled. Women’s Wear Daily called last month’s event, with 14,000 shareholders and employees, “a high-octane, entertainment-filled spectacle with moments devoted to business.”
The company always invites celebrities to entertain and mingle. At last month’s gathering in Bentonville, Arkansas — the company’s headquarters — singers Kelly Clarkson, Jennifer Hudson, John Legend, and Prince Royce performed, Hugh Jackman emceed, and Tom Cruise cruised the crowd, then mounted the stage and said: “I’ve wanted to come here for quite some time, actually because the culture you have here is like no other. I truly admire your company. [It’s] a role model for how business can address some of the biggest issues facing our world.”
» Read more about: Walmart Celebrities: Which Side Are You On? »
Thursday’s community meeting in the auditorium of Boyle Heights’ Lorena Street Elementary School was ostensibly a Los Angeles Unified School District briefing on why the school was about to share half of its classrooms and campus resources with a charter school.
The players were right out of Central Casting. To one side of Lorena Elementary’s podium stood LAUSD principal Enrique Soberanes — a rumpled, embattled Jaime Escalante-esque embodiment of an inner-city public school educator.
Opposite Soberanes, standing tall and lean and tanned was the impeccably tailored Dr. Jim Kennedy, looking more a William Morris Endeavor agent than the incoming principal of Walton Family Foundation-backed Extera Public School No. 2, the new K-1 charter school being imposed on Lorena Street as a co-locator.
Facing the principals were roughly 75 bewildered, mostly Spanish-speaking and working class parents, their children and a score of frustrated and angry LAUSD teachers.
» Read more about: “Co-Location” Controversy in Boyle Heights »
Big Oil says we ought to be supporting fracking because it causes less air pollution than other forms of energy, such as coal or even conventional oil drilling. As is frequently the case in these fights over facts, the oil companies have it about half right – maybe less.
Fracking technology pumps a mix of water, chemicals and sand a mile or so into the earth’s crust to release natural gas captured between layers of rock that the usual methods of drilling couldn’t touch. It’s birthed a modern day gold rush as the petroleum companies hurry to be the first to drill the Barnett Shale in Texas or the Marcellus Shale that lies beneath parts of Pennsylvania, New York, Ohio, Virginia, West Virginia, Kentucky and Maryland. Closer to home, there is the Monterey Shale formation in the old oil fields around Taft, west of Bakersfield.
Push below the surface of the big oil theme and we learn that while burning natural gas for fuel produces only about half the carbon emissions as coal,
» Read more about: Big Oil Has Big Plans for Our Environment »
It’s not coincidental that at this very moment both the labor and racial justice movements stand at a crossroads in our nation’s consciousness. The people who fight to undo worker’s rights and assault unions are often the very same folks who craft laws and policies that allowed Trayvon Martin’s killer to walk free, that disenfranchise black voters and expand the use of racial profiling. Moreover, the public rhetoric of post-racialism is closely tied to the false promise of rampant corporate profiteering that casts the labor movement as an irrelevant “special interest.”
In 2013 the landscape of the national labor movement could charitably be described as “receding.” Last year the U.S. Bureau of Labor Statistics reported a national union membership rate of 11.3 percent — down from 11.8 percent in 2011.The ever-declining number of union members in 2012 was 14.4 million, while in 1983, the first year for which comparable union data are available,
» Read more about: At a Crossroads: Labor Faces the Future »
Meanwhile, the median wage continued to drop, adjusted for inflation.
What’s less well-known is that you and I and other taxpayers are subsidizing this sky-high executive compensation. That’s because corporations deduct it from their income taxes, causing the rest of us to pay more in taxes to make up the difference.
This tax subsidy to corporate executives from the rest of us ought to be one of the first tax expenditures to go, when and if congress turns to reforming the tax code.
We almost got there 20 years ago. When he was campaigning for the presidency, Bill Clinton promised that if elected he’d end the deductibility of executive pay in excess of $1 million.
Once in office, though, his economic advisers urged him to modify his pledge to allow corporations to deduct executive pay in excess of $1 million if the pay was linked to corporate performance – that is,
» Read more about: Why Taxpayers Are on the Hook for Corporate CEO Pay »
I grew up playing soccer and everyone I knew played it. It was the highlight of the week – AYSO owned my city, Ventura, and most cities across Southern California. So I never understood why most Americans don’t love soccer the way the rest of the world does. Until last Sunday.
Of course, I’d heard all of the usual complaints. “It’s a low-scoring, boring, non-physical game.” Is it “low-scoring”? Well, from the American perspective, it is. The average final score is about 2 to 1. But American football could be a low scoring game if touchdowns only gave a team one point instead of six. Football allows for three points just for kicking a ball between two posts.
But is it “boring”? Absolutely not! Who can forget when France’s Zinedine Zidane was sent off the 2006 World Cup final game for head-butting Italy’s Marco Materazzi‘s chest in retaliation to his verbal insults of Zidane’s sister.
I am of course glad to see President Obama focus the country on what he correctly identifies as the most pressing national problem, the crushing of the middle class. The solution he laid out in his address at Knox College, a middle-out economics which sees the middle class as the engine of the economy, is both good economics and a powerful political message. It is what progressives and Democrats need to keep emphasizing over and over again, both rhetorically and in their legislative agendas.
When it came to the broad foundations of policy, the president’s outline of the pillars of a strong middle class was on point: good jobs, quality education and job training, affordable health care, good housing, retirement security and strong neighborhoods.
Still, I found the speech disappointing. The president only nibbled at the biggest change in our economy, the relentless decline in good jobs.
» Read more about: Pillar Talk: America’s Recovery Foundations Are Cracked »
More than four in 10 private-sector workers and 80 percent of low-wage workers do not have paid sick days. This means people, especially women who are more likely to work in low-wage jobs, constantly have to choose between their health and a paycheck.
A post in Jezebel, brought to you by the AFL-CIO, explains why the lack of paid sick days causes a ripple effect on our health and communities:
“In fact, more than 80 percent of low-wage workers don’t receive a single paid sick day all year. This contributes to the creation of a sickness loop: Contagious kids go to school because mom can’t stay home with them; expensive emergency room trips are made that could’ve been prevented; employees show up to work and spread viruses to their customers and co-workers.
When young women can’t stay home to get their sleep and soup on,
» Read more about: Sickening: 80% of Low-Wage Workers Lack Paid Sick Days »