A specter is haunting Detroit — the specter of the Koch Brothers’ toxic brand of unregulated corporatism, as embodied in a cloud bank of pollution that recently blackened the Motor City’s horizon. Abby Zimet, writing in Common Dreams, describes the event as captured by a
[m]ind-boggling video of a billowing, high-carbon, high-sulfur cloud from the mountain of petroleum coke – waste from Canadian tar sands shipped from Alberta to Detroit, and the dirtiest potential energy source ever – illegally stored by the Koch Brothers along the Detroit River. Produced by Marathon Refinery but owned by Koch Carbon, the pet-coke piles have for months been producing “fugitive dust” – i.e.: thick black crud – that blankets the homes of outraged residents and lawmakers; analysis shows the dust contains elevated levels of lead, sulfur, zinc and the likely carcinogenic vanadium.
As we noted here last year,
» Read more about: Koch Brothers’ Huge Coke Cloud Darkens Detroit »
Instead of spending August on the beach, corporate lobbyists are readying arguments for when Congress returns in September about why corporate taxes should be lowered.
But they’re lies. You need to know why so you can spread the truth.
Lie #1: U.S. corporate tax rates are higher than the tax rates of other big economies. Wrong. After deductions and tax credits, the average corporate tax rate in the U.S. is lower. According to the Congressional Research Service, the United States has an effective corporate tax rate of 27.1 percent, compared to an average of 27.7 percent in the other large economies of the world.
Lie #2: U.S. corporations need lower taxes in order to make investments in new jobs. Wrong again. Corporations are sitting on almost $2 trillion of cash they don’t know what to do with. The 1,000 largest U.S. corporations alone are hoarding almost $1 trillion.
» Read more about: Corporations to Congress: Cut Our Taxes Now! »
For several weeks, BART management has run a sophisticated media campaign telling the public that the lack of real progress in negotiations is solely the fault of the unions’ unreasonable and uncompromising economic demands.
When it comes to wages and benefits, however, management has presented a highly misleading picture: it has failed to mention the enormous concessions that BART workers accepted in 2009 at the depth of the economic recession. BART President Thomas Blalock stated that he was “extremely pleased” with that cost-cutting agreement. BART employees were much less pleased, of course, but they recognized the need for significant sacrifice in the dismal economy.
Under the guidance of their highly paid, out-of-state chief negotiator, Thomas Hock, BART management is misrepresenting key economic and safety issues. Hock has an outstanding reputation for driving down employees’ wages and benefits, but a dismal one for resolving disputes without disruptive strikes.
» Read more about: Why Is It Always ‘Safety Last’ at BART? »
Today’s employment figures show that 162,000 jobs were added to U.S. payrolls last month – enough, when combined with the number of people simply dropping out of the work force altogether, to tick down the national unemployment rate to 7.4 percent. But these gains hardly met analysts’ expectations of 185,000 employees being added to American payrolls in July. Most of the new jobs were in the low-wage-paying restaurant and retail sectors.
This last detail comes just as fast-food workers have been staging one-day strikes to protest their miserable existences as low-wage earners and to demand the minimum-wage be doubled to $15 per hour. The strikers’ actions met with condescending sneers from the usual quarters of conservative punditry. Wall Street speakerphone and Fox News business seer Neil Cavuto laid on an especially thick heaping of scorn.
“It’s like jobs aren’t enough these days,” harrumphed Cavuto.
» Read more about: Neil Cavuto Remembers When He Held a Job Once »
President Obama took yet another stab Tuesday at boosting the economy, offering congressional Republicans a cut in the corporate tax rate in return for a $50 billion investment in sagging U.S. infrastructure. That the GOP immediately rejected the deal should come as no surprise. But Republicans should at least be made to stipulate where they think investment in the United States is going to come from.
Conservatives’ stock answer is that if we just lift regulations and cut taxes on business, if we only get rid of unions and the minimum wage, then corporate investment will flow like a mighty stream. There are all kinds of good reasons to dispute this, but a study by three economists provides proof positive that it is sheer hooey.
In late April, John Asker and Alexander Ljungqvist of NYU’s Stern School of Business and the National Bureau of Economic Research and Joan Farre-Mensa of Harvard Business School published a study looking at one of the U.S.
» Read more about: America’s Investment Gap is Strangling Its Economy »
Endless debates over austerity vs. stimulus policies agitate governments. Which is “the correct” one to escape global capitalism’s ongoing crisis? The debates proceed as if official policies were key to ending crises. But the politicians’ fights over policies are mostly distractions from the main events: how crises usually end themselves and their immense social costs.
In the U.S., Republicans promote policies that prioritize national debts as “the” economic problem. Enlarged debts, they assert, prevent businesses from making investments that “create jobs.” Republicans therefore demand austerity policies – chiefly cutting government spending – to reduce national debts and thereby exit crises. Democrats – at least those who still differ from Republicans – promote policies that prioritize reducing unemployment. They want increased government stimulus spending even if national debts rise. That spending, they argue, will boost demands for goods and services, thereby creating jobs and pulling the economy out of crisis.
(They drive our trains and buses, teach our children, repair our roads and protect our safety. Public employees perform these and countless other jobs, although they remain mostly off the radar of the public they serve. With our new “Pro Publica” series, Frying Pan News presents the lives of these men and women front and center.)
After 10 years of marriage, Aisha Blanchard-Young’s husband is still shocked by the amount of time Aisha spends in her kindergarten classroom teaching. He jokes that if someone really wants to find out what it is like to be a teacher, they should talk to a teacher’s spouse. As a quality control technician for a stadium electronics company, he never has to take his work home. Aisha isn’t as lucky.
During the school year Aisha gets up at five in the morning to ready herself and the couple’s two boys (one 5 and one 2) for the day.
» Read more about: Aisha Blanchard-Young: A Passion for Teaching »
The National Labor Relations Board (NLRB) is now fully staffed and able to continue to function to protect workers’ rights after the U.S. Senate today confirmed five members. The votes end a months-long blockade on President Obama’s nominees by Senate Republicans who threatened to shut the board down Aug. 27.
AFL-CIO President Richard Trumka says the confirmations are:
Good news for all workers seeking to exercise the rights they are guaranteed by law. Those essential rights include the ability to bargain together for fair wages and living standards and a workplace safe from abuse, harassment and intimidation.
The five members are current NLRB Chairman Mark Pearce; Nancy Schiffer, a former AFL-CIO associate general counsel; and NLRB attorney Kent Hirozawa, currently the chief counsel to Pearce; and attorneys Philip Miscimarra and Harry Johnson, who represent management in labor-management relations.
Earlier this month, as Senate Majority Leader Harry Reid (D-Nev.) was set to change Senate rules that would have eliminated filibusters against certain executive branch nominees,
» Read more about: Finally: National Labor Relations Board at Full Strength »
Last November unions won a resounding victory when voters defeated Proposition 32, a ballot measure that would have crippled labor’s political influence in California, partly by barring public-employee unions from using payroll-deducted funds for political purposes. The initiative, which enjoyed a huge lead in early opinion polls, was heavily funded by wealthy conservatives and far-right groups.
Union leaders were overjoyed by its defeat.
“You can’t buy California,” Dean Vogel, president of the California Teachers Association (CTA), told an election-night victory party in Sacramento. “We’re not for sale.”
The celebration hasn’t been long lived. In a little-noticed move in April, a conservative legal organization that has pushed to overturn the 1964 Voting Rights Act filed a lawsuit in federal court in Santa Ana that could accomplish in the courts what Prop. 32 couldn’t at the ballot box. The players behind the suit may not be household names but the millionaires and private foundations covering their legal fees represent a familiar klatch of extreme libertarians who,
» Read more about: Prop. 32 Ghost Looms Over Lawsuit Against Teachers Union »
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 »
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? »
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 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 »
In 1909, as one of the scores of short pictures he turned out that year, D.W. Griffith directed A Corner in Wheat, a 14-minute film adaptation of a story by the populist antitrust novelist Frank Norris. In it, a Wall Street speculator buys up so much of America’s wheat and keeps it off the market that prices soar and millions — including the farm family Griffith shows laboring in the fields — go hungry.
Americans’ long-standing apprehensions about banks getting control of the stuff of life are, as we’ve learned again in recent weeks, generally justified. The latest episode of Wall Street’s manipulation of commodity prices was revealed Sunday in a remarkable New York Times article by David Kocieniewski that showed how Goldman Sachs, just by warehousing 1.5 million tons of aluminum, has managed to raise the price of every beer and cola can the world over.
If 2012 was the year of the woman, 2013 is the year of the working mom. And that’s why I’m headed to California. Last week, House Minority Leader Nancy Pelosi along with Congresswomen Rosa DeLauro, Doris Matsui and others announced a new economic agenda for women and families, built on three key pillars for driving women’s economic advancement: 1) equal pay for equal work, 2) work-family balance, including paid sick leave and a livable minimum wage, and 3) access to quality, affordable child care.
As many have noted, these priorities are not new ideas. Women have been advocating for decades for these policies, because they work, they are fair and they are critical to the success of our nation. What is new is the momentum behind putting these practical solutions to work so that we can kick-start an economy that continues to languish and restore the American promise for our children — that their futures should be brighter,
I am a single mother of four. Every day my heart aches with worry about my kids and their futures. Today I went on strike to protest retaliation. I did it for my children.
Please consider a donation of $50 or more to support workers while we are on strike.
I work in a warehouse moving Walmart merchandise and I make $8 an hour. In a good week I earn $300. Our rent alone is $800 a month. Going on strike means no paycheck, but your support can help us during this time.
The math doesn’t add up. My coworkers and I cannot support our families on these wages, but when we have spoken up about the poverty we face and the dangerous working conditions inside the warehouse, we have been targeted. We’ve had enough. The warehouse managers follow us around, they have installed cameras to watch us constantly,
» Read more about: ‘Today I Went on Strike’ — A Strike Fund Appeal »
Breaking News: Warehouse workers who move suitcases are on strike at Walmart luggage and apparel subcontractor Olivet International. The bulk of the Riverside County facility’s inventory is sold by Walmart and the strikers hold the retail chain equally culpable for the poor working conditions employees claim exist at Olivet. The work stoppage is aimed at retaliation allegedly suffered by workers who drew public attention to safety risks at the warehouse.
According to a post by Josh Eidelson that appeared today on the Nation‘s website:
Today’s strike is backed by Warehouse Workers United, a project of the Change to Win union federation. It comes two months after 21 Olivet warehouse employees filed a formal complaint with the California Division of Occupational Safety and Health, alleging rampant safety violations: emergency exits blocked by boxes and merchandise; forklift brakes, seatbelts, and horns that don’t work;
» Read more about: Walmart Contract-Warehouse Workers Go on Strike »
DealBook recently published a piece by Kent Rowey that makes a troubling argument for selling public services and infrastructure to Wall Street banks and other corporations. Under the guise of making recommendations for Detroit, Mr. Rowey tried to sell the idea that auctioning off our most vital services and assets to for-profit companies is a simple win-win solution for strapped governments.
It sounds simple, but the real track record of public-private partnerships is fraught with problems.
Mr. Rowey holds up the example of Chicago’s 36,000 parking meters that were sold in a 75-year lease to an investor group backed by Morgan Stanley as a success. In fact, Chicago taxpayers, investors and mayors across the country will tell you that not only was it an unmitigated disaster, it is also Exhibit A in the folly of blindly giving up taxpayer control of services.
An after-the-fact investigation by the city’s inspector general concluded that the decision to enter the lease contract lacked “meaningful public review” and neglected the city’s long-term interests to solve a short-term budget crisis.
» Read more about: Privatization of Public Resources Can Be Highway Robbery »