Showing posts with label National Unemployment Figures. Show all posts
Showing posts with label National Unemployment Figures. Show all posts

Wednesday, July 10, 2013

Katrina vanden Heuvel On the Dire Necessity Of Fighting On Behalf of the Unemployed and the Ongoing Struggle for Public Education and Teachers Unions in Chicago

http://www.thenation.com/blog/175162/do-we-have-will-fight-jobless#axzz2YbWzypus

 
KATRINA VANDEN HEUVEL 

Do we have the will to fight for the jobless 
by Katrina vanden Heuvel 
July 9, 2013 
The Washington Post
Job seekers wait in line at a construction job fair. (AP Photo/Seth Wenig)

Turmoil in Egypt. Edward Snowden’s travel plans. Immigration reform’s fortunes. Obamacare’s troubles. The Weiner-Spitzer return to politics. There’s no shortage of items absorbing political energy and media bandwidth. But simmering below all of this is a crisis that goes without the immediate attention it demands. Last Friday morning, the Bureau of Labor Statistics reported yet another month of lackluster jobs numbers. While Washington has long since lost any sense of urgency regarding the jobs crisis, this is an issue that continues to poll at the top of Americans’ concerns.

Our economy is stuck at just over 2 percent growth, and the rate of productivity is worse than anemic. We have hit a point where an unemployment rate of 7.6 percent inspires cheers of “it could’ve been worse!” The result is a painful “new normal” for too many of our fellow Americans.

Few commentators even mention that most of the 195,000 jobs added last month, as well as the ones added in the last few years, are low-paying, temporary, part time and usually without benefits. Much of the job growth we have seen is in restaurant, retail and temporary work — the sort of jobs that rarely offer basic security, let alone a foothold for people to climb into the middle class.

For working families, the struggle is painful, persistent and real: Hourly wages have plummeted to record lows, while executive pay has soared to record highs. There is no longer an income gap; there is now an income gulf. In 1978, the average American chief executive earned 26.5 times more than the average worker. Today, that gap is four times larger, with chief executives taking home 206 times more than average workers.

 

The crisis is disproportionately affecting minorities and younger Americans. Youth unemployment is at a staggering 16.1 percent, while African Americans are at 13.7 percent and Latinos are at 9.1 percent. The picture we are left with is of a severe shortage of jobs, in which millions of Americans drop out of the labor force in frustration and despair.

Meanwhile, the Republican Party, not least its “intellectuals,” such as Paul Ryan, has come to fetishize the values of Ayn Rand — radical individualism, a hatred of government intervention and spending — and the sort of austerity policies that have proved to be a disaster all over the world. They display adoration for the wealthy and apathy toward the working, and non-working, families that they claim to represent.

Recent analysis by the Economic Policy Institute shows that after four years of recovery, we’re only one-fifth of the way out of the hole left by the recession. At this rate, we won’t close the jobs gap until 2020. That’s too long for out-of-work Americans who continue to suffer.

Fortunately, some in the media are speaking out. And dedicated lawmakers, including members of the Congressional Progressive Caucus and other thoughtful Democrats in both the House and the Senate, continue to introduce strong, smart bills to put people back to work. They are stymied only by the wrongheaded belief that debt, not joblessness, is our central challenge — and by GOP obstructionism that has paralyzed the capital.

Indeed, despite the stagnation, solutions to our problem abound.

With interest rates at a historic low, now is the time to invest in job creation and rebuild the country’s crumbling infrastructure. We could listen to 72 percent of the country and put unemployed Americans to work on government-funded projects to shore up aging bridges, roadways, and schools. President Obama and others have proposed a passel of infrastructure legislation that could put people back to work and transform our nation’s landscape.

They have also proposed major investments in education, especially in preschool, to prepare tomorrow’s workforce. Meanwhile, Sen. Bernie Sanders (I-Vt.), who has been a fierce advocate of job creation, successfully included a provision in the Senate’s recently passed immigration bill to invest $1.5 billion in expanding job opportunities for young people.


Instead of giving tax breaks to companies that move their assets and jobs to distant shores, we should offer tax incentives to companies that create jobs at home.

We could and should tie executive pay to average employee pay in a company, expand the earned income tax credit and raise the threshold for paying payroll taxes. And as Rep. Keith Ellison (D-Minn.) has noted, in the wealthiest nation in the world, “the people with so much of the wealth bought lobbyists and influence to get loopholes for themselves so that they would not have to pay for the civilization that is America.” That’s why he introduced a bill to create a financial transaction tax, which would tax Wall Street to rebuild Main Street.

The Congressional Progressive Caucus has stitched together an array of strong proposals in its Back to Work Budget, which ought to be a starting point for a serious jobs push by Congress.

There are plenty of good ideas, plenty of good bills and plenty of good legislators willing to fight on behalf of the millions of Americans who simply want a decent job. As Obama gears up to spend the summer focused on the economy, isn’t it time to summon the energy and the political will to solve the crisis before our eyes?


Read more from Katrina vanden Heuvel’s archive or follow her on Twitter

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Chicago Rising!
by Rick Perlstein
July 2, 2013
The Nation

A resurgent protest culture fights back against Rahm Emanuel’s austerity agenda.

Karen Lewis, center, president of the CTU is joined by the Rev. Jesse Jackson, left, and United States Representative Bobby Rush, right, during a demonstration and march over the a plan to close fifty-four Chicago Public Schools through Chicago's downtown Wednesday, March 27, 2013. (AP Photo/Charles Rex Arbogast)
 
On a sunny saturday this past May, far down on the city’s black South Side where corner stores house their cashiers behind bulletproof plexiglass, about 150 activists assembled at Jesse Owens Community Academy. In just a few days, Mayor Rahm Emanuel’s appointed Board of Education would vote on the largest simultaneous school closing in recent history. Owens, along with fifty-three other public schools, was on the chopping block. A recent Chicago Tribune/WGN poll found that more than 60 percent of Chicago citizens opposed the closings, and a healthy cross section of them had turned out for the first of three straight days of marches in protest.

Women in red Chicago Teachers Union (CTU) T-shirts registered participants; a vanload of purple-shirted SEIU marchers lingered in excited anticipation; an activist from the city’s Anti-Eviction Campaign, which breaks into and takes over foreclosed houses, donned a parade marshal’s orange vest; two street medics from the Occupy-associated Chicago Action Medical checked on some elderly marchers who arrived in a church bus. The music teacher at Owens, a former minister, asked rhetorically, “Will I have a job on Monday?” She answers her own question: “That’s OK.” A white, middle-class mother with two kids in the system, who traveled almost 100 blocks to be here, told me that she is a Republican but that “people on the right don’t like being pushed around by overbearing government.”

There were signs representing Jobs With Justice and the community-labor umbrella group Grassroots Collaborative. Another sign snarked: if rahm and his unelected school board ever set foot in a CPS school perhaps their math wouldn’t be so bad. The president of Michigan’s American Federation of Teachers spoke. Then a parent mocked public schools CEO Barbara Byrd-Bennett’s recent invocation of Martin Luther King at a City Club of Chicago speech: “How can you call this a civil rights movement when you resegregate our schools, decimate our teacher corps and destabilize our neighborhoods?”

The march stepped off, passing boarded-up houses and auction signs; a CTU staffer called cadence (“I don’t know but it’s been said/ Billionaires on the Board of Ed”). Supporters shouted out in solidarity from front porches. When we passed the first of five closing schools along our seven-mile route, a clutch of 10-year-olds bearing handmade signs joined in and got turns at the bullhorn. I noticed something striking: again and again, when the CTU yell-leader barked out the first half of a new chant (“We need teachers, we need books”), everybody already knew the second line: “We need the money that Rahhhhhhm took!”

They know the words because they’ve been here before. The CTU beat Rahm in a historic strike this past September and hasn’t stopped fighting austerity and privatization since. They probably know the words across town too, where a simultaneous march along an even longer route on the even poorer black West Side was going on.

But it isn’t just CTU members who know the words. The progressive tribes have been gathering in Chicago with force, efficiency, creativity, trust and solidarity, building a bona fide, citywide protest culture. And it’s working. Days before these marches, Mayor Emanuel, who has been talked up in some circles as possibly the first Jewish president, told the Chicago Sun-Times, “I am not running for higher office—ever.” This purring protest infrastructure is one of the major reasons why.

To many national observers, this rebirth of the city’s militant protest culture seemingly came out of nowhere. But it didn’t. It’s the product of years of organizing from sources both expected and surprising. And while the radicalized CTU under the leadership of Karen Lewis has deservedly received much of the credit, the teachers union is just the current tip of the spear in a long and potentially transformative movement.

* * *
“I think we have a synergy going on here that is unrivaled in any other city,” says the Rev. C.J. Hawking, “but it could be replicated.” Hawking is originally from the far South Side neighborhood of Mount Greenwood, “where all the firefighters and cops live.” Twenty-nine years ago, she became a United Methodist pastor. Twenty years ago, during a historic strike in the downstate town of Decatur, she began devoting her ministry to labor issues. In 2007, she became executive director of Arise Chicago, a group founded in 1991 by local religious leaders who wanted to mass their voices together in favor of workers and immigrant rights. Arise created a thriving workers center in 2002, and in the fall of 2011, the group was at the center of the Week of Action, one of the most extraordinary protests in any US city in recent memory.

It began on a Monday in October. The Mortgage Bankers Association was in town for its annual meeting. From five separate sites across downtown, the marches began; late in the afternoon, they converged on the Art Institute of Chicago. There, on the rooftop pavilion of a sumptuous, brand-new wing designed by Renzo Piano, the wizards responsible for wrecking the US economy sipped champagne and networked. Or at least they tried to above the din of the peasants singing, chanting and yelling up at them from below. On any other day, the pavilion’s vertical struts look like graceful architectural ornaments, but on this day, they looked like jail bars. Martin Luther King said a long time ago, “There is nothing more powerful to dramatize a social evil than the tramp, tramp of marching feet.” He is right—still. I saw fear written on the bankers’ faces. On our faces, I saw joy.

The next day at the Pritzker family’s Hyatt Regency Hotel, sixteen activists from Southsiders Organized for Unity and Liberation were arrested for occupying the sky bridge between the hotel’s two wings, as hundreds in the streets below cheered them on. A group called Action Now dumped garbage from a vacant foreclosed home outside a Bank of America branch. The rest of the week was filled with similar actions. It was a triumph.

“I never entered a bank before because of my immigration status,” one participant said. “I felt uneasy, but then we became family.” “I was scared,” said another, “but my courage grew.” A third: “I can’t believe I sat in the street! That was my first time. It was great!” A fourth: “I am going to educate my children about what I did and bring them up to do the same.”

Nineteen months later, I asked Hawking how it all came together. The idea sprang from meetings the previous summer of the convening umbrella organization, which eventually became known as Stand Up! Chicago. Twenty groups were at the table: religious groups, a senior citizens group, immigrant groups, community groups and labor unions—a rare convergence in itself. “It was a little awkward at first,” she says. “We always got along. But we were also competing for all those precious grant dollars.”

It turned out to be easier to work together than anyone thought. After testing out a smaller feeder march in June, the groups met in October for an intensive week of planning using an innovative organizing model: they separated into a dozen or so groups of twenty-five. Each group contained members from different organizations; those members planned their own actions, argued together, socialized together and then, when the pivotal moment came, stuck together on the streets.

“People from Arise Chicago, workers who’d had their wages stolen, unionists from Jobs With Justice, people from the Lakeview Action Coalition…I think this [collaboration] is really unique and pivotal to understanding how we’ve been so successful,” says Hawking. “If I get caught and the light turns red, twenty-four other people are going to make sure that I get across the street.”

Stand Up! Chicago dubbed the groups “flying squads” after the Flint, Michigan, General Motors sit-down strikes of 1936–37. “Each flying squad was completely bonded to each other by the end of that week,” says Hawking. At a debriefing after one protest, an experienced activist testified that he rarely felt so free to voice an opinion, to disagree and still feel that he was heard.

I ask Hawking whether she thinks the Week of Action had a direct effect in inspiring the success of the Chicago Teachers Union the following year. “Absolutely. Absolutely,” she answers, before listing a tumult of actions that followed, one feeding into the next: a takeover of the LaSalle Street Bridge over the Chicago River on November 17; 4,000 teachers in their red CTU shirts filling the Auditorium Theatre for a rally that grew into a 10,000-person march in May 2012; the September CTU school strike itself and, three months after that, a meeting of a Workers Organizing Committee of Chicago at the St. James Cathedral, dedicated to fighting for a $15 hourly wage; Black Friday at Walmart; the spread of the fast-food strikes to Chicago; and the latest marches against Rahm’s school closings.

“Organized labor as we know it seems to be struggling,” Hawking says. “And so what did they do in the 1880s and the 1930s? Well, you start building power in the streets.”

* * *

Occupy Chicago has also played a fascinating role in the city’s burgeoning protest movement. Listen to wiry, intense and voluble Jerry Boyle, the movement’s pre-eminent legal defender. Boyle is another product of a “classic South Side Irish family”—this one, though, made up of stalwarts of the Irish Republican Army. “I’m a green diaper baby,” he says, which explains something of his fascination and passion for street politics, a subject on which he has emerged here as something of a theorist.

“It has really encouraged me to see what’s happening here over the last few years. I mean, there has always been a good, strong activist community here, but two things converged that I think made a big difference. One was, Rahm Emanuel became mayor of Chicago, OK?” (Boyle expels one of his thin, reedy laughs.) “And the second one was the particular character that Occupy Wall Street took on as a result…Rahm knew he had NATO and G-8 coming [to Chicago], and he didn’t want that mess on the streets.”

The mayor’s decision to prohibit encampments turned out to be the movement’s ironic source of power. In contrast to other occupations, Chicago Occupiers were forced to move around; they had their own flying squads. They moved, for instance, to places where the mayor was scheduled to appear in order to provoke him. “He has ambitions,” Boyle explains. “Chicago is just a steppingstone for him…and he’s kind of a control freak.” When things don’t turn out the way he wants, Emanuel famously loses his temper. “One of the best weapons the Occupiers have is, you don’t get elected president when you’ve got a temper like that.” The Occupiers would go where Rahm went, “and he left—because he didn’t want to get pissed off.”

The Occupiers also moved one mild October evening to Grant Park, the city’s front yard. Many were arrested for violating the city curfew, some violently—one reason the White House announced, in March, that the G-8 was taking its conference elsewhere. Meanwhile, lawyers working with Occupy contested their arrests before a judge named Thomas Donnelly. Late in September of 2012, Emanuel was served another humiliation—his second in weeks after losing the school strike—when Judge Donnelly dismissed the charges by ruling that the application of the curfew law violated the First Amendment because it was applied differently for different political events, such as President-elect Obama’s legendary victory party in Grant Park in 2008.

By then, Jerry had watched his Occupiers mature into seasoned, effective hell-raisers. “This whole generation of people have a first-rate education from experience,” he says. And unlike elsewhere, where Occupy energies feel dissipated, “they’re all over the place, OK? They’ve spread like a virus!” Even, he relates, in this very cafe where we’re sitting. One day, Jerry watched as the mayor and his entourage walked in. The wait staff here write the customer’s name on the cup, to call out the order when it’s ready. “And they didn’t realize he was being waited on by someone who was busted during OWS. Straight face: ‘And your name?’

“Rahm. Went. Ballistic. ‘Are you fucking kidding me?’

“The whole room is silent. The manager, also busted during OWS, says: ‘Sir, if that behavior is repeated here, we’re going to have to ask you not to come in.’”

And so Occupy Chicago is everywhere. “They go down to the South Side! They’re so clueless, they don’t care!” exclaims Jerry, imitating old-generation Chicago lefty activists who, he says, “wouldn’t be found dead on the South Side…. Just yesterday, there was a vigil and die-in down on the South Side. I see brilliant Occupiers wearin’ shirts spattered with fake blood, in handcuffs. “They’ve changed the whole face of protest in Chicago. It helped lay the foundations for what the teachers did.”

* * *

There’s another group that has changed the face of protest in Chicago, and they’ve done it indoors, sans picket signs or fake blood: the data nerds. Tom Tresser is a former Shakespearean actor who moved to the city in 1980 and soon found himself making his way into arts administration, which sparked an interest in policy. “You start asking questions. You start to look at zoning laws, city planning,” Tresser says.

When Republicans started going after the National Endowment for the Arts in 1989, Tresser began attending the Midwest Academy, a legendary training ground for Chicago organizers. In 2007, he noticed a neighborhood outrage: the Latin School of Chicago, one of the city’s toniest private high schools, was carving out a corner of Lincoln Park as its own private soccer fiefdom; the public would be permitted access only 10 percent of the time, during winter. On a shoestring, he and some neighbors filed a lawsuit. On their day in court, they were shocked to find that among the twelve lawyers lined up on the other side, one was a partner in Chicago’s most high-powered white-shoe law firm and another was the city’s chief corporation counsel.

Tresser quickly realized that “something bigger than a soccer field was at stake” in his Lincoln Park suit. At the time, Chicago had been named a finalist for the 2016 Olympics. “If we got a legal ruling that you can’t privatize a park, the Olympic bid would have been dead before it was unsealed,” he recalls. For privatizing parks on behalf of corporations were what the Games would be all about, and “we would have got nothing for it except bankruptcy.” Tresser and his neighbors weren’t going to stand for it.

“We have a massive global movement of capital,” he told me, “which, because they’ve burned their own fucking houses down through their own greed, don’t have the gilt returns that they’re used to receiving…. So the new guaranteed annual returns that big business and big capital are looking for is our assets.”

In the summer of 2009, he used his credit card to finance a trip by his core activists to Switzerland, where the International Olympics Committee was deliberating. They were armed with a book composed only of articles from the Chicago press about why a corrupt and incompetent city government would botch the Games. When the dust cleared, the Olympics went to Rio, and a consultant with knowledge of the IOC’s deliberations told Tresser that his group’s efficient presentation of information had played a significant role in the decision. Tresser, the son of a public school teacher, began conceptualizing himself as a “public defender.”

“I believe what we call ‘the public’ is under attack in America today: public housing, public education, public health, public transportation. All these things have become precious and scarce, and have actually become dirty words,” he tells seventy-five activists one April evening at a meeting of his next venture, the TIF Illumination Project.

TIF, or tax increment financing, was a potentially noble solution to fix a market failure. Developers don’t want to build in blighted areas where banks won’t lend money, thereby guaranteeing their continued blight. TIF districts are supposed to subsidize development in these underdeveloped areas essentially by borrowing against projected gains in tax revenue generated by the new construction. But in Chicago, the idea has metastasized in a particularly wicked way. TIFs became a scam to funnel public funds to wealthy private interests; the allegedly “blighted” areas came to encompass the Lyric Opera, which got TIF money to spruce up its bronze door handles, and the Chicago Mercantile Exchange, which was pledged $15 million, in part to refurbish its bathrooms. In response to the latter scandal, activists from the anti-TIF movement marched on the Chicago Mercantile Exchange bearing a golden toilet, embarrassing the company into publicly rejecting the money.

Tresser’s work is to create more stories like that one. But to get TIF money returned, you have to find it first—a frightfully difficult task. Each TIF district goes through a review panel composed of representatives from various city agencies, all of them appointed by the mayor. There is supposed to be one public representative on each panel, but that person is appointed by the local alderman and usually doesn’t have much of a clue about what’s happening. A TIF developer seeking public favor can promise to hire a certain number of locals, but there is no mechanism for evaluating whether the developer holds to the deal, and no penalty if it doesn’t. TIF projects are discussed at Chicago Development Commission meetings, but by that time they are basically done deals. No one knows the backroom process by which TIF-worthy projects are determined, though there does seem to be one constant: “If the mayor wants a project,” Tresser notes, “the project will happen.” What’s more, TIF amounts are excluded from the tax bill that property owners receive each year, which itemizes how the city is spending their money.

Finding that crucial hidden information is where the data nerds come in. “This stuff is enough to glaze your eyes over,” Tresser warns his audience, picking up his PowerPoint remote. He’s wrong; Tresser describes his first encounter with the TIF page on the city website, and the audience is rapt. His presentation features a city spreadsheet of individual projects with an unmanageable 4,588 rows, sortable by name, type or by amount of money allocated—but not by ward or neighborhood, the only information relevant to citizens who want to find out whether their community is being ripped off.

To get at that, Tresser’s team sat around his kitchen table and worked through the spreadsheet line by line, compiling their own database—a task made harder by the fact that the TIF districts bear no logical relation to the city’s fifty wards or seventy-seven official planning areas. He flips to a slide of the city’s map of 163 TIF districts. “It looks like a lady with varicose veins!” he says. The map is even harder to work with; when you click on each district, you get a PDF document. Chicago city bureaucrats love PDFs—you can’t enter information on them into database programs unless you do it by hand, which is what Tresser’s data team did. Only then were they able to arrive at some basic conclusions about a program that ate up no less than $455 million in 2011, out of total city property tax receipts of over $1.3 billion. Another even more stunning find was that each TIF district includes a fund balance, an unspent surplus that totals $1.7 billion citywide. That’s a lot of business for whichever bank gets to hold those funds—but the identity of the bank is secret, too.

Tresser begins his presentation explaining what led him to the TIF problem in the first place: hearing, over and over again, “We’re broke… sorry about your overcrowded school, sorry about your public park with no basketball hoops, sorry about the fact that you have to wait forty minutes for the bus, but we’re broke!” That is the excuse for the city’s proliferating privatization deals. It is the excuse, indeed, for Rahm’s fifty school closings.

Later, Tresser describes the even more painstaking work of breaking down TIF finances in each of the city’s fifty wards; they have been able to finish only fifteen so far. (The old trouper, who is a cueball, gets a laugh joking, “I used to have hair.”) He points to a chart indicating that the Fourth Ward, which we’re in, has $15 million in its fund balance. (“The provocative question is: What would you do to improve the ward if you had $15 million in your checking account?”) He points to another chart listing the ward’s TIF beneficiaries: twenty-one private real estate developments and one public school (one of the schools, ironically, that the school board is closing), all outside the designated blighted areas.

Tresser announces, “We want to deputize you to go to these projects and ask them what they did with your money.” He notes that while the city claims 54 percent of property taxes went to the Board of Education, if you include the money in the TIF “black box,” it’s actually only 36 percent.

“So are we broke?” Tresser asks. “It starts to get a little hazy to me.”

The local alderman, Will Burns, has sent his policy and communications director as his representative. At the beginning of the meeting, the aide announced that without TIFs, “high-quality development would not happen in the South Side community.” By the end, he is the recipient of some very hard stares. And a new cadre in Chicago’s activist army has been stirred.

Chicago school activists call this kind of work “data liberation,” and it’s been crucial to their campaign. Sorting through the data (when they could get it), they discovered that the “utilization formula” the school board was using to select which schools to keep open was based on whether homerooms were in a certain range: 20 percent above or below an “ideal enrollment” of thirty students. This means a school could average thirty-six students per classroom and still be considered underutilized. Activists had to dig that statistic out of an entirely separate pool of numbers, the district’s “empty seat” calculation. “We know it’s intentional,” explains Eric Téllez, communications and research coordinator for the Grassroots Collaborative, “to keep the public at bay and unaware of what’s going on.”

It’s not working. Such data liberations have turned into major propaganda coups for the CTU and a major driver of outrage against the school closings. So did a finding by radio station WBEZ, based on much of this same work, that of the nine empirical claims the school board was making about school closings, all nine were either inaccurate or false.

Chicago is where the spreadsheets are meeting the streets—and changing the face of politics in the city. Consider the victories of the last few years. Activists helped sink an Olympic bid that would have been a giant boondoggle and land grab (the failure was a key reason Mayor Richard Daley shocked the city by deciding not to run for re-election in 2011 after six terms). The Chicago Mercantile Exchange was embarrassed into returning $15 million in TIF money. The G-8 moved its conference out of fear of an advancing activist army. The CTU led its members in a victorious teachers strike. This kind of thing is not supposed to be possible, because teachers unions are said to be despised, especially by public school parents. But not in Chicago, where in a recent poll the most militant teachers union in the country is supported by 54 percent of parents; only 9 percent side with the mayor. That mayor came into office with national ambitions, but now his disapproval rating is 40 percent, and only 24 percent of Chicagoans believe the city is better off than it was under the also-unpopular Mayor Daley.

Watch Chicago. Watch it this September, when the school year is set to open with fifty fewer schools in operation. “So let me tell you what you’re gonna do,” shouted CTU president Karen Lewis in a rally last March. “On the first day of school, you show up at your real school! Don’t let these people take your schools!” The conditions are ripe for such civil disobedience: the bonds of trust within a variegated activist community; a growing culture of militancy extending all the way down to formerly quiescent middle-class parents; strategic smarts, passion, momentum. Brazil, Bulgaria, Taksim Square… Chicago. The next battle in the global war against austerity, privatization and corruption just might spark off right here.

Past shuttered schools and glass-strewn vacant lots, the Chicago Teachers Union documented the likely toll of Rahm Emanuel’s latest disastrous education plan, in Rick Perlstein’s April 5 blog entry, “A New Chicago Freedom Ride [2].”

Read more: Chicago Rising! http://www.thenation.com/print/article/175085/chicago-rising#ixzz2Ydg2Uj9J 

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Tuesday, April 23, 2013

Paul Krugman On the Ongoing (Un)employment Crisis in the United States and the Failed National Economic Policies Responsible For It


All,

Once again Paul Krugman--one of the most important, courageous, and consistently clear thinking public intellectuals of our age in this country--tells us the complete and unadorned truth about the brutal dysfunction of our present economy (reinforced by the specifically  inept and/or cruel economic policies being devised by both political parties in response to the current crisis) and what it really means to the millions of human beings who are being systematically destroyed and exploited by it and them. What is invaluable about Krugman's typically prescient and irrefutable analyses is that he reminds us of the concrete and genuine human costs and consequences of insidiously abstract political decisions being imposed on the larger society without any regard for the actual destructive impact it is having on our daily collective reality.  It is this bedrock intellectual honesty and moral integrity that makes Krugman far more than just the renowned Nobel prize winning economist that he is.  It makes him and his work an exemplary example of what real leadership and a truly progressive social vision really is and can be...

Kofi


Fred R. Conrad/The New York Times
Paul Krugman



The Jobless Trap
By Paul Krugman
April 23, 2013
New York Times

F.D.R. told us that the only thing we had to fear was fear itself. But when future historians look back at our monstrously failed response to economic depression, they probably won’t blame fear, per se. Instead, they’ll castigate our leaders for fearing the wrong things.


For the overriding fear driving economic policy has been debt hysteria, fear that unless we slash spending we’ll turn into Greece any day now. After all, haven’t economists proved that economic growth collapses once public debt exceeds 90 percent of G.D.P.?

Well, the famous red line on debt, it turns out, was an artifact of dubious statistics, reinforced by bad arithmetic. And America isn’t and can’t be Greece, because countries that borrow in their own currencies operate under very different rules from those that rely on someone else’s money. After years of repeated warnings that fiscal crisis is just around the corner, the U.S. government can still borrow at incredibly low interest rates.

But while debt fears were and are misguided, there’s a real danger we’ve ignored: the corrosive effect, social and economic, of persistent high unemployment. And even as the case for debt hysteria is collapsing, our worst fears about the damage from long-term unemployment are being confirmed.

Now, some unemployment is inevitable in an ever-changing economy. Modern America tends to have an unemployment rate of 5 percent or more even in good times. In these good times, however, spells of unemployment are typically brief. Back in 2007 there were about seven million unemployed Americans — but only a small fraction of this total, around 1.2 million, had been out of work more than six months.

Then financial crisis struck, leading to a terrifying economic plunge followed by a weak recovery. Five years after the crisis, unemployment remains elevated, with almost 12 million Americans out of work. But what’s really striking is the huge number of long-term unemployed, with 4.6 million unemployed more than six months and more than three million who have been jobless for a year or more. Oh, and these numbers don’t count those who have given up looking for work because there are no jobs to be found.

It goes without saying that the explosion of long-term unemployment is a tragedy for the unemployed themselves. But it may also be a broader economic disaster.


The key question is whether workers who have been unemployed for a long time eventually come to be seen as unemployable, tainted goods that nobody will buy. This could happen because their work skills atrophy, but a more likely reason is that potential employers assume that something must be wrong with people who can’t find a job, even if the real reason is simply the terrible economy. And there is, unfortunately, growing evidence that the tainting of the long-term unemployed is happening as we speak.

One piece of evidence comes from the relationship between job openings and unemployment. Normally these two numbers move inversely: the more job openings, the fewer Americans out of work. And this traditional relationship remains true if we look at short-term unemployment. But as William Dickens and Rand Ghayad of Northeastern University recently showed, the relationship has broken down for the long-term unemployed: a rising number of job openings doesn’t seem to do much to reduce their numbers. It’s as if employers don’t even bother looking at anyone who has been out of work for a long time.

To test this hypothesis, Mr. Ghayad then did an experiment, sending out résumés describing the qualifications and employment history of 4,800 fictitious workers. Who got called back? The answer was that workers who reported having been unemployed for six months or more got very few callbacks, even when all their other qualifications were better than those of workers who did attract employer interest.


So we are indeed creating a permanent class of jobless Americans.

And let’s be clear: this is a policy decision. The main reason our economic recovery has been so weak is that, spooked by fear-mongering over debt, we’ve been doing exactly what basic macroeconomics says you shouldn’t do — cutting government spending in the face of a depressed economy.

It’s hard to overstate how self-destructive this policy is. Indeed, the shadow of long-term unemployment means that austerity policies are counterproductive even in purely fiscal terms. Workers, after all, are taxpayers too; if our debt obsession exiles millions of Americans from productive employment, it will cut into future revenues and raise future deficits.

Our exaggerated fear of debt is, in short, creating a slow-motion catastrophe. It’s ruining many lives, and at the same time making us poorer and weaker in every way. And the longer we persist in this folly, the greater the damage will be.

Saturday, February 2, 2013

Robert Reich On Why the U.S. Economy Is Stagnant, What Structural Forces Are Responsible, and Who Should Be Held Accountable For Fixing It

(Image: Jared Rodriguez / Truthout)
All,

Far too many politicians, journalists, policy analysts, so-called 'pundits', and even some unduly awestruck citizens are wasting our precious time telling us only what we want to hear or conversely telling us only what they think we (according to them) should be hearing. Thankfully, there are still some real social critics, organizers, progressive activists, and dedicated educators around who insists only in telling us what we NEED to hear, and doing it with actual knowledge, insight, integrity, intellectual honesty, and political courage. One of those always useful and valuable individuals is the renowned labor economist, teacher, and genuine public intellectual Robert Reich.  Please read what he has to say and pass the word.  Why?  BECAUSE IT'S THE TRUTH...We are in very deep trouble and there's no end in sight.  Reich reminds us exactly what nefarious forces are responsible and who should be held completely accountable and why--aside from ourselves...

Kofi  


The Jobs Report, and Why the Recovery Has Stalled
Saturday, 02 February 2013
By Robert Reich, Robert Reich's Blog | Op-Ed

 
We are in the most anemic recovery in modern history, yet our political leaders in Washington aren’t doing squat about it.

In fact, apart from the Fed – which continues to hold interest rates down in the quixotic hope that banks will begin lending again to average people – the government is heading in exactly the wrong direction: raising taxes on the middle class, and cutting spending.


The Bureau of Labor Statistics reported Friday that American employers added only 157,000 jobs in January. That’s fewer than they added in December (196,000 jobs, as revised by the Bureau of Labor Statistics). The overall unemployment rate remains stuck at 7.9 percent, just about where it’s been since September.

The share of people of working age either who are working or looking for jobs also remains dismal – close to a 30-year low. (Yes, older boomers are retiring, but the major cause for this near-record low is simply the lack of jobs.)

And the long-term unemployed, about 40 percent of all jobless workers, remain trapped. Most have few if any job prospects, and their unemployment benefits have run out, or will run out shortly.

Close to 20 million Americans remain unemployed or underemployed.

It would be one thing if we didn’t know what to do about all this. But we do know. It’s not rocket science.

The only reason for employers to hire more workers is if they have more customers. But American employers have not had enough customers to justify much new hiring.

There are essentially two sources of customers: individual consumers, and the government. (Forget exports for now; Europe is contracting, Japan is a basket case, China is slowing, and the rest of the world is in economic limbo.)

American consumers – whose purchases constitute about 70 percent of all economic activity – still can’t buy much, and their purchasing power is declining. The median wage continues to drop, adjusted for inflation. Most can’t borrow because they don’t have a credit record sufficient to allow them to borrow much.

And now their Social Security taxes have increased, leaving the typical worker with about $1,000 less this year than last.

The Conference Board reported last Tuesday consumer confidence in January fell its lowest level in more than a year. The last time consumers were this glum was October 2011, when there was widespread talk of a double-dip recession.

The only people doing well are at the top – but they save a large part of what they earn instead of spending it.

Overall personal income soared by 8 percent in the final three months of 2012 compared to an increase of just over 2 percent in the third quarter, but this income didn’t go into the pockets of the middle class. It went into the pockets of people at the top.  Wages and salaries grew a measly six-tenths of one percent.

Most of the rise in personal income in the last quarter was from companies rushing to pay dividends before taxes were hiked in 2013, and from an upturn in personal interest income. Both these sources of income went mostly to the well-to-do.

This explains why consumer spending is dropping. The Commerce Department said Thursday consumers’ spending rose 0.2 percent last month. That’s slower than the 0.4 percent increase in November.

So if we can’t rely on consumers to stoke the economy, what about government? No chance. Government spending is dropping, too.

The major reason the economy contracted between the start of October and end of December 2012 was a major reduction in government spending in the fourth quarter.

Government spending has declined in nine of the last ten quarters, but it took a precipitous drop in the last quarter. This was mainly because military spending fell 22.2 percent. That’s the largest fall-off since 1972 (mainly due to reduced spending on the war in Afghanistan, and worries by military contractors about further pending cuts). State and local spending also continued to fall.

Personally, I’m glad we’re spending less on the military. It’s the most bloated part of the government. Major cuts are long overdue. But the military is America’s only major jobs program. Cutting the military without increasing spending on roads, bridges, schools, and everything else we need to do simply means fewer jobs.

What’s ahead? More of the same. So what possible reason do we have to suspect the recovery will pick up speed? None.


Don’t count on consumer spending. Wages and benefits continue to drop for most people, adjusted for inflation. States are hiking sales taxes, which will hit the middle class and the poor hardest. Deficit hawks in Washington are contemplating additional tax hikes on the middle class.

Housing prices are stabilizing, thankfully. But one out of five homeowners is still underwater, and the ranks of people renting rather than owning are rising. Health-care costs are also rising for most people in the form of higher co-payments, deductibles, and premiums.

Don’t count on government, either. Government spending continues to head downward. The White House has already agreed to major spending cuts, some to go into effect this year. Coming showdowns over the next fiscal cliff, appropriations to fund government operations, and the debt ceiling will likely result in more cuts.

More jobs and faster growth should be the most important objectives now. With them, everything else will be easier to achieve – protection against climate change, immigration reform, long-term budget reform. Without them, everything will be harder.

Yet we’re moving in the opposite direction — following Europe’s sorry example of failed austerity economics.



This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.

 
ROBERT B. REICH, Chancellor’s Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including the best sellers “Aftershock" and “The Work of Nations." His latest, "Beyond Outrage," is now out in paperback. He is also a founding editor of the American Prospect magazine and chairman of Common Cause.


Official Presidential portrait of Franklin Delano Roosevelt. (Photo: Frank O. Salisbury

http://truth-out.org/opinion/item/14016-what-a-second-term-obama-can-learn-from-fdr 

All,

This article is equally important--and for the exact same reasons.  Please read carefully and pass the word...

 
Kofi

What a Second-Term Obama Can Learn From FDR
Saturday, 19 January 2013
By David Woolner, Next New Deal | Op-Ed


To achieve progress in his second term, President Obama must recognize that his opponents aren't really interested in a "grand bargain."

"My fellow countrymen. When four years ago we met to inaugurate a President, the Republic, single-minded in anxiety, stood in spirit here. We dedicated ourselves to the fulfillment of a vision—to speed the time when there would be for all the people that security and peace essential to the pursuit of happiness. We of the Republic pledged ourselves to drive from the temple of our ancient faith those who had profaned it; to end by action, tireless and unafraid, the stagnation and despair of that day. We did those first things first.

Our covenant with ourselves did not stop there. Instinctively we recognized a deeper need—the need to find through government the instrument of our united purpose to solve for the individual the ever-rising problems of a complex civilization… To do this we knew that we must find practical controls over blind economic forces and blindly selfish men. —Franklin D. Roosevelt, Second Inaugural Address, January 20, 1937

Just over three-quarters of a century ago, in his second inaugural address, Franklin Roosevelt, reflecting on the accomplishments of the New Deal in mitigating the worst effects of the Great Depression, noted that “the greatest change we have witnessed [over the past four years] has been the change in the moral climate in America.” Among “men of goodwill,” he went on, “science and democracy together offer an ever-richer life and ever-larger satisfaction to the individual. With this change in our moral climate and our rediscovered ability to improve our economic order, we have set our feet upon the road of enduring progress.”

FDR based this assumption on the idea that what had transpired over the course of his first term—a first term which brought us, among other things, Social Security, unemployment insurance, the right of workers to engage in collective bargaining, the separation of commercial and investment banking, the establishment of the Securities and Exchange Commission (SEC), the establishment of the Federal Deposit Insurance Corporation (FDIC), the largest single drop in the unemployment rate in the nation’s history to date, and an average annual economic growth rate of 14 percent—was directly tied to a new understanding of the role of government. This new understanding, he noted, was based on the “fulfillment of a [collective] vision…to speed the time when there would be for all the people that security and peace essential to the pursuit of happiness.”

Equally important, however, was FDR’s assertion that in arriving at this new vision of government the people understood that it was critical to find “practical controls over blind economic forces and blindly selfish men,” to recognize the “need to find through government the instrument of our united purpose to solve for the individual the ever-rising problems of a complex civilization.”

In essence, what FDR offered the American people was a new vision for the future. This new vision was based the fundamental idea that it was only the power of democratic government that could provide the means to counter “the blind economic forces” and “blindly selfish men” who had profaned democracy and brought the country to ruin in the dark days of the early 1930s.

There is much in this speech that still holds relevance for Americans today. In the massive loss of manufacturing jobs and the globalization of the world’s economy in the last few decades, we can see at work “the blind economic forces” of which FDR spoke. And in the wake of the 2008 financial crisis, the power of the “blindly selfish men” on Wall Street is all too familiar. So too—thanks to the onset of the Great Recession—is the anxiety, fear, and bewilderment that he noted plagued the American people on the eve of his first inaugural. What is missing, sadly, is the contravening narrative, the covenant that FDR made with the American people, the understanding that the reforms achieved in his first term had made the exercise of all power more democratic by bringing:


…private autocratic powers into their proper subordination to the public’s government. The legend that they were invincible—above and beyond the processes of a democracy—has been shattered. They have been challenged and beaten.


President Obama has for the most part shied away from the idea that the real challenge to our democracy stems not from the dysfunctional nature of Congress, but rather from the forces of wealth and privilege who see themselves as “above and beyond the process of democracy.” Rather than take on these forces directly, he speaks instead of asking the wealthy to “pay their fair share in taxes,” of building a consensus, of taking a “balanced approach,” of striking a “grand bargain” that would “make sure that middle-class folks aren’t bearing the entire burden and sacrifice when it comes to some of these big challenges.” In taking this approach, the president argues that he is following the will of the American people, who made it clear through his re-election that they want compromise and action. These may be noble sentiments, but they fall far short of expressing what the American people truly want from their president, which above all else is leadership.

The sad fact is that we now live in a society where the income disparity between the rich and the rest of us now stands at its worst level since the late 1920s—just before the onset of the Great Depression. The Congressional Budget Office, for example, recently reported that between 1979 and 2007 the top 1 percent of households doubled their share of pretax income while the bottom 80 percent of American households actually saw their share of income decline. In a similar study, a recent Census Bureau report notes that the average white male worker earns roughly the same hourly wage that he would have made in 1978, adjusted for inflation, while the average CEO’s pay has increased by roughly 600 percent.

As was the case in the 1920s, such a drastic mal-distribution of wealth is clearly not sustainable, as it makes it very hard for the average worker to sustain the level of purchases necessary to maintain our largely consumer-based economy. Hence, if we truly want to find a way to grow our economy—as the president insists he does—then we must find a way to address this critical structural imbalance in our economy. And this means real reform, the type of reforms we saw in the New Deal, reforms that brought about the birth of the post-1945 modern American middle class that now seems to be so rapidly disappearing.

 

So rather than beat about the bushes, President Obama might do well to recognize—as FDR did—that the forces of wealth and privilege weighted against him are not really interested in a compromise or a “grand bargain.” What they want is to maintain the economic and political status quo in what FDR once rightly called the “false belief” that happiness can only be achieved “in the mad chase of evanescent profits.”

To overcome these entrenched forces, President Obama will need to provide the country with much more than his somewhat vague efforts to meet the other side halfway. He must learn to recognize that above all else it is his responsibility to give voice to the common aspiration of the people and provide them with a vision for the future -- a vision that recognizes government’s fundamental responsibility to fashion a more just and equitable society, a vision based on the truism, as FDR said in his second inaugural, that:

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics. Out of the collapse of a prosperity whose builders boasted their practicality has come the conviction that in the long run economic morality pays. We are beginning to wipe out the line that divides the practical from the ideal; and in so doing we are fashioning an instrument of unimagined power for the establishment of a morally better world."


This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.



David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute, and associate professor of history at Marist College, in Poughkeepsie, New York. A specialist in Anglo-American relations and U.S. foreign and economic policy under Franklin D. Roosevelt, Dr. Woolner has delivered papers on FDR’s foreign and domestic policy in Canada, the United States, France, Russia, England, Wales, Ireland, Scotland and Korea.


Tuesday, December 11, 2012

Paul Krugman on the Illusory Mythology of the 'Fiscal Cliff' vs. the Stark Reality of Mass Unemployment, Class Warfare, and the Fight For Genuine Economic Democracy in the United States Today

http://www.nytimes.com/2012/12/10/opinion/krugman-robots-and-robber-barons.html?_r=0

All,

In a sordid and nihilistic media age where rampant intellectual and political dishonesty, careerist pandering, and brazen forms of Machiavellian opportunism, rhetorical posturing and public manipulation are almost de rigueur among many "mainstream" journalists it is more than merely inspiring to read the work of writers and thinkers like Paul Krugman whose genuine insight and deep critical consciousness --like that of such equally compelling and committed truth telling contemporary colleagues as Frank Rich, Matt Taibbi, Jeffrey Scahill, Ta-Nehisi Coates, and Jonathan Chait-- is under present circumstances almost downright heroic.  In any event Krugman is never afraid to lucidly remind us of exactly what the real consequences of actual public policy are or to tell us how and why political and economic elites in the government, the corporate and financial worlds, and media itself work overtime to openly distort reality and con us into thinking that the endless lies and corny "narratives" they keep spoon feeding the public are the only possible solutions and/or alternatives available to us.  Krugman knows far better than that and never fails to say as much.  We had all better listen very closely to what he tells us because it's not only true but the quality of our very lives in this society depends on us seriously addressing both the text and subtext of what he's talking about and why...

Kofi          

Robots and Robber Barons
 
By PAUL KRUGMAN
December 9, 2012
New York Times


The American economy is still, by most measures, deeply depressed. But corporate profits are at a record high. How is that possible? It’s simple: profits have surged as a share of national income, while wages and other labor compensation are down. The pie isn’t growing the way it should — but capital is doing fine by grabbing an ever-larger slice, at labor’s expense.

Fred R. Conrad/The New York Times
Paul Krugman

Wait — are we really back to talking about capital versus labor? Isn’t that an old-fashioned, almost Marxist sort of discussion, out of date in our modern information economy? Well, that’s what many people thought; for the past generation discussions of inequality have focused overwhelmingly not on capital versus labor but on distributional issues between workers, either on the gap between more- and less-educated workers or on the soaring incomes of a handful of superstars in finance and other fields. But that may be yesterday’s story.

More specifically, while it’s true that the finance guys are still making out like bandits — in part because, as we now know, some of them actually are bandits — the wage gap between workers with a college education and those without, which grew a lot in the 1980s and early 1990s, hasn’t changed much since then. Indeed, recent college graduates had stagnant incomes even before the financial crisis struck. Increasingly, profits have been rising at the expense of workers in general, including workers with the skills that were supposed to lead to success in today’s economy.

Why is this happening? As best as I can tell, there are two plausible explanations, both of which could be true to some extent. One is that technology has taken a turn that places labor at a disadvantage; the other is that we’re looking at the effects of a sharp increase in monopoly power. Think of these two stories as emphasizing robots on one side, robber barons on the other.

About the robots: there’s no question that in some high-profile industries, technology is displacing workers of all, or almost all, kinds. For example, one of the reasons some high-technology manufacturing has lately been moving back to the United States is that these days the most valuable piece of a computer, the motherboard, is basically made by robots, so cheap Asian labor is no longer a reason to produce them abroad.

In a recent book, “Race Against the Machine,” M.I.T.’s Erik Brynjolfsson and Andrew McAfee argue that similar stories are playing out in many fields, including services like translation and legal research. What’s striking about their examples is that many of the jobs being displaced are high-skill and high-wage; the downside of technology isn’t limited to menial workers.

Still, can innovation and progress really hurt large numbers of workers, maybe even workers in general? I often encounter assertions that this can’t happen. But the truth is that it can, and serious economists have been aware of this possibility for almost two centuries. The early-19th-century economist David Ricardo is best known for the theory of comparative advantage, which makes the case for free trade; but the same 1817 book in which he presented that theory also included a chapter on how the new, capital-intensive technologies of the Industrial Revolution could actually make workers worse off, at least for a while — which modern scholarship suggests may indeed have happened for several decades.

What about robber barons? We don’t talk much about monopoly power these days; antitrust enforcement largely collapsed during the Reagan years and has never really recovered. Yet Barry Lynn and Phillip Longman of the New America Foundation argue, persuasively in my view, that increasing business concentration could be an important factor in stagnating demand for labor, as corporations use their growing monopoly power to raise prices without passing the gains on to their employees.

I don’t know how much of the devaluation of labor either technology or monopoly explains, in part because there has been so little discussion of what’s going on. I think it’s fair to say that the shift of income from labor to capital has not yet made it into our national discourse.

Yet that shift is happening — and it has major implications. For example, there is a big, lavishly financed push to reduce corporate tax rates; is this really what we want to be doing at a time when profits are surging at workers’ expense? Or what about the push to reduce or eliminate inheritance taxes; if we’re moving back to a world in which financial capital, not skill or education, determines income, do we really want to make it even easier to inherit wealth?

As I said, this is a discussion that has barely begun — but it’s time to get started, before the robots and the robber barons turn our society into something unrecognizable.

By PAUL KRUGMAN
December 6, 2012


Let’s get one thing straight: America is not facing a fiscal crisis. It is, however, still very much experiencing a job crisis.

It’s easy to get confused about the fiscal thing, since everyone’s talking about the “fiscal cliff.” Indeed, one recent poll suggests that a large plurality of the public believes that the budget deficit will go up if we go off that cliff.

In fact, of course, it’s just the opposite: The danger is that the deficit will come down too much, too fast. And the reasons that might happen are purely political; we may be about to slash spending and raise taxes not because markets demand it, but because Republicans have been using blackmail as a bargaining strategy, and the president seems ready to call their bluff.


Moreover, despite years of warnings from the usual suspects about the dangers of deficits and debt, our government can borrow at incredibly low interest rates — interest rates on inflation-protected U.S. bonds are actually negative, so investors are paying our government to make use of their money. And don’t tell me that markets may suddenly turn on us. Remember, the U.S. government can’t run out of cash (it prints the stuff), so the worst that could happen would be a fall in the dollar, which wouldn’t be a terrible thing and might actually help the economy.

Yet there is a whole industry built around the promotion of deficit panic. Lavishly funded corporate groups keep hyping the danger of government debt and the urgency of deficit reduction now now now — except that these same groups are suddenly warning against too much deficit reduction. No wonder the public is confused.

Meanwhile, there is almost no organized pressure to deal with the terrible thing that is actually happening right now — namely, mass unemployment. Yes, we’ve made progress over the past year. But long-term unemployment remains at levels not seen since the Great Depression: as of October, 4.9 million Americans had been unemployed for more than six months, and 3.6 million had been out of work for more than a year.

When you see numbers like those, bear in mind that we’re looking at millions of human tragedies: at individuals and families whose lives are falling apart because they can’t find work, at savings consumed, homes lost and dreams destroyed. And the longer this goes on, the bigger the tragedy.

There are also huge dollars-and-cents costs to our unmet jobs crisis. When willing workers endure forced idleness society as a whole suffers from the waste of their efforts and talents. The Congressional Budget Office estimates that what we are actually producing falls short of what we could and should be producing by around 6 percent of G.D.P., or $900 billion a year.

Worse yet, there are good reasons to believe that high unemployment is undermining our future growth as well, as the long-term unemployed come to be considered unemployable, as investment falters in the face of inadequate sales.

So what can be done? The panic over the fiscal cliff has been revelatory. It shows that even the deficit scolds are closet Keynesians. That is, they believe that right now spending cuts and tax hikes would destroy jobs; it’s impossible to make that claim while denying that temporary spending increases and tax cuts would create jobs. Yes, our still-depressed economy needs more fiscal stimulus.

And, to his credit, President Obama did include a modest amount of stimulus in his initial budget offer; the White House, at least, hasn’t completely forgotten about the unemployed. Unfortunately, almost nobody expects those stimulus plans to be included in whatever deal is eventually reached.
So why aren’t we helping the unemployed? It’s not because we can’t afford it. Given those ultralow borrowing costs, plus the damage unemployment is doing to our economy and hence to the tax base, you can make a pretty good case that spending more to create jobs now would actually improve our long-run fiscal position.Nor, I think, is it really ideology. Even Republicans, when opposing cuts in defense spending, immediately start talking about how such cuts would destroy jobs — and I’m sorry, but weaponized Keynesianism, the assertion that government spending creates jobs, but only if it goes to the military, doesn’t make sense.No, in the end it’s hard to avoid concluding that it’s about class. Influential people in Washington aren’t worried about losing their jobs; by and large they don’t even know anyone who’s unemployed. The plight of the unemployed simply doesn’t loom large in their minds — and, of course, the unemployed don’t hire lobbyists or make big campaign contributions.So the unemployment crisis goes on and on, even though we have both the knowledge and the means to solve it. It’s a vast tragedy — and it’s also an outrage.


http://www.truthdig.com/eartotheground/item/krugman_america_is_not_facing_a_fiscal_crisis_20121207/?ln


Krugman: ‘America Is Not Facing a Fiscal Crisis’
December 7, 2012
Ear To the Ground
Truthdig

 r-z (CC BY 2.0)
 
No, says the Nobel Prize-winning economist, who must be hoarse from repeating the same thing for the last four years: The United States is facing a jobs crisis, one that costs the savings, homes and dreams of millions of Americans and about $900 billion a year in lost productivity.

The tragedy of the loss is compounded by its lack of necessity, Krugman writes. Low interest rates currently enable the government to borrow money that it could use to fund stimulus programs that would put Americans to work. And because the government prints its own money, there’s no risk of running out of it.

Yet many of America’s millionaires and billionaires are set on reducing the deficit that is necessary to fund a stimulus program, even as the nation added a measly 146,000 jobs in November, one-third of which came from the retail sector, which is preparing for the holiday shopping rush. Krugman explains why.

—Posted by Alexander Reed Kelly.

Paul Krugman at The New York Times:

So why aren’t we helping the unemployed? It’s not because we can’t afford it. Given those ultralow borrowing costs, plus the damage unemployment is doing to our economy and hence to the tax base, you can make a pretty good case that spending more to create jobs now would actually improve our long-run fiscal position.

Nor, I think, is it really ideology. Even Republicans, when opposing cuts in defense spending, immediately start talking about how such cuts would destroy jobs — and I’m sorry, but weaponized Keynesianism, the assertion that government spending creates jobs, but only if it goes to the military, doesn’t make sense.

No, in the end it’s hard to avoid concluding that it’s about class. Influential people in Washington aren’t worried about losing their jobs; by and large they don’t even know anyone who’s unemployed. The plight of the unemployed simply doesn’t loom large in their minds — and, of course, the unemployed don’t hire lobbyists or make big campaign contributions.

Tuesday, October 2, 2012

Beyond the Presidential Debates: Robert Reich On the Crucial Need For Jobs, Economic Justice, and Political Democracy

 (Photo: Andreas Klinke Johannsen / Truthout)


http://truth-out.org/news/item/11885-the-week-ahead-wednesdays-presidential-debate-and-fridays-jobs-report

All,

As usual the brilliant economist, political analyst, former national Labor Secretary, and UC, Berkeley educator Robert Reich is sharing with us what's most important to know and do about our present political and economic crisis and does so in clear, crisp language that as Malcolm X used to  always  say "everyone here can easily understand".  Thanks Robert...

Kofi 

The Week Ahead: Wednesday's Presidential Debate and Friday's Jobs Report
Tuesday, 02 October 2012
By Robert Reich, Robert Reich's Blog | News Analysis


The biggest election news this week won’t be who wins the presidential debate Wednesday night. It will be how many new jobs were created in September, announced Friday morning by the Bureau of Labor Statistics.

Rarely in the history has the monthly employment carried so much political significance. If the payroll survey is significantly more than 96,000 –- the number of new jobs created in August — President Obama can credibly claim the job situation is improving. If significantly fewer than 96,000, Mitt Romney has the more credible claim that the economy isn’t improving.

August’s household survey showed the overall rate of unemployment to be 8.1 percent in August – not bad, relative to previous rates – but that was mainly because so many Americans had stopped looking for work. (You’re deemed “unemployed” only if you don’t have a full-time job and you’re looking for work; if you’ve given up looking, you’re not counted.)

What happened to jobs in August or September – and what will happen in October (announced November 2, just days before Election Day) – have very little to do with what Obama did or didn’t do. Presidents have little to do with month-to-month changes in employment.

What’s more, the rest of the world isn’t cooperating: Much of Europe is in recession because it’s swallowed the “austerity” Kool-aide. Japan is still a basket case. And China is slowing considerably.

In addition, Obama has had to grapple with a recalcitrant Republican congress, whose “number one goal,” according to Senate Minority Leader Mitch McConnell, hasn’t been to create more jobs but to make sure Obama doesn’t get a second term.

Still, evidence is accumulating that the U.S. economy has stalled. According to Commerce Department data released late last week, the economy grew at an annualized rate of only 1.3 percent between April and June. That’s down from 2 percent in the first quarter of the year. Consumer spending rose in August just .1 percent, after adjusting for inflation. Orders for durable goods (cars, TVs, other long-lasting manufactured products) dropped 13 percent, the biggest monthly drop in three years. And because incomes grew less than spending, the savings rate dropped to 3.7 percent — the lowest since April.

Consumers say they’re more confident about the future – and that’s a key measure for how they’re likely to vote. But the disturbing reality is paychecks continue to shrink. Disposable income (the money left over after taxes) dropped 0.3 percent after adjusting for inflation. That’s the weakest reading since November.

America is still in the gravitational pull of the Great Recession. That’s because consumer spending is 70 percent of economic activity, and the nation’s vast middle class doesn’t have enough money to get the economy back on track. (The rich spend a much smaller proportion of their incomes, and their savings go around the world to wherever they can summon the highest return.)

Republicans have no answers. To the contrary, Romney’s reverse-Robin Hood economics would shrink the middle class even further, and put a huge burden on the poor.

But the economic policies Obama says he’d like to pursue in his second term aren’t nearly large or bold enough to do the job.

The median wage has been stuck in neutral for decades. Since the 1980s, almost all the gains from economic growth have gone to the top. The stagnation of middle-class wages was first masked by millions of women moving into paid work, thereby propping up household incomes. Then it was masked by massive household borrowing against rising home values.

But the bubble that burst in 2008 has removed both masks. The economy can’t fully recover until the middle class and the poor who aspire to join it have enough income to get it moving. For this to happen, they will need a larger share of the gains from economic growth.

Perhaps the President will be asked Wednesday night for his plan to accomplish this.

This piece was reprinted by Truthout with permission or license.


ROBERT B. REICH, Chancellor’s Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including the best sellers “Aftershock" and “The Work of Nations." His latest, "Beyond Outrage" is now out in paperback. He is also a founding editor of the American Prospect magazine and chairman of Common Cause.

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Saturday, November 12, 2011

The Ongoing Importance of the Occupy Wall Street Movement and Its Impact on National Political Discourse


http://www.alternet.org/occupywallst/152860/the_stunning_victory_that_occupy_wall_street_has_already_achieved/

All,

From just two weeks ago...

Kofi

The Stunning Victory That Occupy Wall Street Has Already Achieved
26 October 2011

by Joshua Holland AlterNet [3] | Op-Ed

In just one month, the protesters have shifted the national dialogue from a relentless focus on the deficit to a discussion of the real issues facing Main Street.
Occupy Wall Street has already achieved a stunning victory – a victory that is easy to overlook, but impossible to overstate. In just one month, the protesters have shifted the national dialogue from a relentless focus on the deficit to a discussion of the real issues facing Main Street: the lack of jobs -- and especially jobs with decent benefits -- spiraling inequality, cash-strapped American families' debt-loads, and the pernicious influence of money in politics that led us to this point. To borrow the loosely defined terms that define the Occupy movement, these ordinary citizens have shifted the conversation away from what the “1 percent” -- the corporate right and its dedicated media, network of think-tanks and PR shops -- want to talk about and, notably, paid good money to get us to talk about. Peter G. Peterson, a Wall Street mogul and Nixon administration cabinet member, has reportedly dedicated a billion dollars of his fortune to the effort since the 1980s. How successful have he and his fellow travelers been? In 2009, the Washington Post came under fire for running an article – in its news section, not its opinion pages – written by Peterson's Fiscal Times, which the watchdog group Fairness and Accuracy in Reporting described [4] as “a propaganda outlet … [formed] to promote cuts in Social Security and other entitlement programs.” (It was Peterson Foundation employees, among those from other outside groups, who staffed Obama's “bipartisan deficit commission.” [5]) As I noted back in May, a study done by the National Journal that month quantified what the Washington Post's Greg Sargent, described [6] as a “deficit feedback loop,” in which “the relentless bipartisan focus on the deficit convinces voters to be worried about it, which in turn leads lawmakers to spend still more time talking about it and less time talking about the economy.” According to the Journal [7], “major U.S. newspapers have increasingly shifted their attention away from coverage of unemployment in recent months while greatly intensifying their focus on the deficit.” The analysis -- based on a measure of how often the words "unemployment" and "deficit" appear in major publications -- portrays a dramatically shifting landscape of coverage over the past two years, as the debate over how to fix the federal deficit has risen to prominence and the question of how to handle still-high unemployment has faded from the media's consciousness.

Consider the impact that relentless focus on the deficit – and declining coverage of the jobs crisis and housing meltdown -- had on public opinion until very recently:


Now fast-forward five months, and we see an entirely different media landscape. According to the Pew Research Center's Project for Excellence in Journalism [9], the economy dominated last week's news, grabbing 24 percent of the mainstream media's “news hole.” Occupy Wall Street accounted for 10 percent of the news hole, up from 7 percent the week before, and 2 percent the week before that. (The death of Libyan leader Moammar Ghaddafi drew more attention to foreign policy issues this week [10], but the economy continued to be a dominant topic.)

Last week, Zaid Jilani of Think Progress offered [11] some data which tell the tale of a dramatically shifting media landscape. He noted that “at the beginning of August, when Washington, DC was debating the debt ceiling crisis, the national debt dominated the airwaves.”

While it was appropriate for the media then to be covering the deficit due to the debt ceiling debate at the time, there was a stunning lack of coverage of the jobs crisis. A ThinkProgress review of the media coverage of the last week of July found that the word “debt” was mentioned more than 7,000 times on MSNBC, CNN, and Fox News, and “unemployed” was only mentioned 75 times.


But, writes Jilani, a recent “review of the same three networks between Oct. 10 and Oct. 16 finds that the word 'debt' only netted 398 mentions, while 'occupy' grabbed 1,278, Wall Street netted 2,378, and jobs got 2,738.”


This sea-change can't be attributed only to the Occupy movement – it also correlates with the White House's “pivot” toward jobs and the economy – but there is no doubt that Occupy Wall Street has played a major role in bringing attention to the plight of working America. Even House Majority Leader Eric Cantor, R-Virginia, acknowledged the occupiers' grievances when his office announced that he would be giving an address “about income disparity and how Republicans believe the government could help fix it.” One would be naïve to believe Cantor would ever support such measures, but it nonetheless marked a dramatic departure from the GOP's usual class-war stance. (Cantor later canceled the speech when he learned he would be greeted by protesters.)

The real-world impact of this shift is difficult to predict, but the problems on which our mainstream discourse focuses are the ones most likely to be addressed.


Links:

[1] http://www.truth-out.org/print/8073
[2] http://www.truth-out.org/printmail/8073
[3] http://www.alternet.org/occupywallst/152860/the_stunning_victory_that_occupy_wall_street_has_already_achieved/
[4] http://www.fair.org/index.php?page=3991
[5] http://fdlaction.firedoglake.com/2010/05/21/revolt-of-the-wonks-former-obama-advisors-want-to-know-whats-happening-on-his-deficit-commission/
[6] http://www.washingtonpost.com/blogs/plum-line/post/here-it-is-scientific-proof-of-the-beltway-deficit-feedback-loop/2011/03/03/AFTo4s5G_blog.html
[7] http://www.nationaljournal.com/economy/in-media-coverage-deficit-eclipses-unemployment-20110516
[8] http://www.alternet.org/images/managed/storyimages_1306453870_screenshot20110526at12.54.27pm.png
[9] http://www.journalism.org/index_report/pej_news_coverage_index_october_1016_2011
[10] http://www.journalism.org/index_report/pej_news_coverage_index_october_1723_2011
[11] http://thinkprogress.org/special/2011/10/18/346892/chart-media-jobs-wall-street-ignoring-deficit-hysteria/
[12] http://www.truth-out.org/printmail
[13] http://www.truth-out.org/joshua-holland/1313676769
[14] http://org2.democracyinaction.org/o/6694/p/salsa/web/common/public/signup?signup_page_KEY=2160
[15] https://members.truth-out.org/donate
[16] http://www.truth-out.org/?q=we-people-not-we-corporations/1319632343