I recently saw photographs of John F. Kennedy giving a Labor Day speech in New York City during his Presidential campaign in 1960. He spoke in the center of the Garment District, on the west side of Manhattan. He spoke to tens of thousands of garment workers. Today, the Garment District has been replaced by luxury high-rise residences. Following NAFTA (the North American Free Trade Agreement), the garment industry went to low-wage, non-union countries. The garment industry has few workers and no political power. The number of union members across the nation has dropped precipitously. The largest unions are public sector workers–especially, teachers–and they are under attack, as rightwing foundations, billionaires, and their favorite think tanks hammer away at their very existence.
What hope is there? Anthony Cody says there is plenty. He foresees the rise of “the teacher class.”
Here are a few quotes from a powerful statement. Read it all.
“The teaching class consists of educators from pre-school through college. This group is facing the brute force of a class-based assault on their professional and economic status. The assault is being led by the wealthiest people in the world – Bill and Melinda Gates, via their vast foundation, the Walton family, and their foundation, and Eli Broad, and his foundation. And a host of second tier billionaires and entrepreneurs have joined in the drive. These individuals have poured billions of dollars into advancing a “reform” movement that is resulting in the rapid expansion of semi-private and private alternatives to public education, and the destruction of unions and due process rights for educators.”
“As the latest report from Yong Zhao and ASCD illustrates, there is absolutely zero connection between the productivity of our economy and test scores. There may be some minimum level of academic achievement below which our nation’s economy might suffer, but our students are far, far above that threshold. So the entire economic rationale for our obsession with test scores and “higher standards” has been obliterated…”
Even liberal rationales for education reform are falling away. We have heard for the past decade that employers need students who can think critically and creatively, that everyone must be prepared for college. These arguments have been used to promote progressive models of education, along with the Common Core. The economic assumption here is that the middle class will grow as more students are prepared for middle class jobs. But the number of such jobs are shrinking, not growing. The supposed shortage of people prepared for STEM careers is a hoax, as we see with the layoff of 18,000 such workers by Microsoft. In fact, one economic projection suggests that in the next 20 years, 47% of the jobs of today will be gone as a result of technological advances and what Bill Gates terms “software substitution.” (see the full report here.)….”
“Teachers are paying attention. Study after study provides evidence that the central planks of corporate education reform not only fail to work, but are undermining the education of our students. This project that was supposed to be driven by data is collapsing, and would be long gone if our politicians were not being legally bribed to look the other way. Corporate education reform is a fraud, a hoax perpetrated on the public, with the active complicity of media outlets like NBC, which allows the Gates Foundation to dictate the very “facts” that guide their coverage of education issues….”
“Corporate reformers have diabolically targeted teachers where we were most vulnerable, by accusing us of placing our own interests above those of our students. Every element of corporate reform has been leveraged on this point. No Child Left Behind accused teachers of holding students back through our “soft bigotry of low expectations.” Due process has been undermined or destroyed because it supposedly provides shelter for the “bad teachers” responsible for low test scores.
“But this point of vulnerability is also our greatest latent strength going forward. Because teachers are deeply motivated by concern for their students, they are attuned to the devastating effects reform is having on them. Teachers are seeing what happens in communities when schools are closed – usually in poor African American and Latino neighborhoods. Teachers are seeing how technologically based “innovations” funnel both scarce funds along with student data to profit-seeking corporations. We have had more than a decade of test-driven reform, and teachers know better than anyone what a sham approach this has been. Teachers have seen and responded to the Michael Brown shooting, and though there are still difficult conversations ahead about race, teachers have a head start, because of our work with young people who are, like Michael Brown, vulnerable to racial profiling and the school to prison pipeline.
“Teachers have some important pieces of the puzzle, but we have not built the whole picture yet. There is a growing awareness of the discriminatory way laws are enforced, leading to huge numbers of African Americans and Latinos behind bars. But there is still a weak understanding of how this fits into a system that keeps communities of color economically and politically disempowered. School closures are a part of this disenfranchisement, as they rob communities of stable centers of learning. The disproportionate layoffs and terminations of African American teachers are a part of this pattern as well. We need a new civil rights coalition that brings these interests into sharp focus, and establishes alliances between teachers, students, parents and community members.
“When teachers bring a deep understanding of how our work has been hijacked and disrupted to bear on broader social issues, we find similar patterns elsewhere. We can see how profiteers are trying to sideline the US Postal Service, even though the level of service for the public will suffer. We see how the prison industry has turned into an enormous machine that sustains itself through vigorous lobbying, to the great disservice of many Americans. We see how laws governing debt are written to give tremendous advantage to financiers, while binding our students into a new form of indentured servitude. We see how leading Democratic Party politicians have taken campaign contributions in the millions from the sworn enemies of public education, and have become their servants….”
“The term “teacher leadership” has been used to describe a narrow range of activities often related to “getting a seat at the table,” or taking charge of professional development or Common Core implementation. But the real potential for teacher leadership arises when we take the lessons we have learned from a decade of being the targets of phony corporate reforms, and recognize our kinship with others who have been disenfranchised. The number of wealthy individuals who have sponsored this decade of fraudulent reform could fit in a small movie theater. Teachers number in the millions — our students and allies are in the hundreds of millions. The only thing that can beat the power of money is the power of people. But the people must be informed and organized. That sounds like work teachers ought to be able to handle.”
Good One, Diane. Your last 2 paragraphs were really important.
Relax, and have a good ay, recovering… we need YOU!
I agree with what you said, except those were Anthony Cody’s words, not Diane’s.
Love Anthony… always have. missed that…thanks… and thanks for Diane for repeating them.
Thank you, Diane, for a powerful reminder. We teachers have always known that our calling is not about money. What we can do now is make this clear to those we serve: school children and their families. Your most important words: “Teachers number in the millions–our students and allies are in the hundreds of millions.” The public power conveyed by these words can be used, especially by the activists among us. My hope is that this will happen, and soon.
As a former teacher and child of the Garment District, thank you for writing this on Labor Day. It is the most cogent piece I’ve read on this issue. I’m frequently asked by parents about the difference between public and charter. They are very bewildered by the (deliberate) confusion around it. I’ll refer them to your article. Please enjoy today and continue on the road to recovery.
I wish I were so optimistic, however there are way too many GAGA* teachers and administrators (supposedly former teachers) who live in a fear instilled world thrown on them by punishment based evaluations systems (Marzano’s, Danielson’s and any of the other rubric “objective” systems) masquerading as “teacher development” devices. I find many to be quite ignorant, heads in the sand types who need a bit of cajoling.
But I can’t go down without a fight and so my advice is for each and everyone of us to speak with, educate and inform a willing teacher one teacher/administrator at a time. I’m always in the process of working 2-3 at a given time. And then also seek out community members who are willing to listen and give them the facts. Students too, they are the ones hurt by these educational malpractices. One of our district curriculum coordinators (actually a test score monitor/enforcer) goes out of his way to avoid me because I keep asking how he can be enforcing educational malpractices that are unethical and harmful to students. Make them uncomfortable in their ignorance and voluntary blindness to the facts.
*Going Along to Get Along (GAGA): Nefarious practice of most educators who implement the edudeformers agenda even though the educators know that those educational malpractices will cause harm to the students and defile the teaching and learning process. The members of the GAGA gang are destined to be greeted by the Karmic Gods of Retribution upon their passing from this realm.
Karmic Gods of Retribution: Those ethereal beings specifically evolved to construct the 21st level in Dante’s Hell. The 21st level signifies the combination of the 4th (greed), 8th (fraud) and 9th (treachery) levels into one mega level reserved especially for the edudeformers and those, who, knowing the negative consequences of the edudeformers agenda, willing implemented it so as to go along to get along. The Karmic Gods of Retribution also personally escort these poor souls, upon their physical death, to the 21st level unless they enlighten themselves, a la one D. Ravitch, to the evil and harm they have caused so many innocent children, and repent and fight against their former fellow deformers. There the edudeformers and GAGAers will lie down on a floor of smashed and broken ipads and ebooks curled in a fetal position alternately sucking their thumbs to the bones while listening to two words-Educational Excellence-repeated without pause for eternity
Well, I think you need a more articulated definition of GAGAer, since all teachers must work within the parameters of their workplace (or sacrifice themselves) and many care for kids or teens under heavy and complex scrutiny.
Not bad advice for anti-GAGAers, to take on a few willing converts or open ears, but some vocal and rampant anti-GAGAers can easily become targets and lose their jobs or just add to toxicity levels as they mistake other anti-GAGAers for GAGAers and create totally unnecessary divisions and conflicts and discredit everything they say by being taken as crazy and wildly unprofessional.
“There the edudeformers and GAGAers will lie down on a floor of smashed and broken ipads and ebooks curled in a fetal position alternately sucking their thumbs to the bones while listening to two words-Educational Excellence-repeated without pause for eternity.”
An apt description of Hell, Duane. Well done.
Duane, I agree with your description of teachers not taking a stand against this abuse because of GAGA, but I call it “Cinderella Complex”, as in this comment I posted earlier today on this blog, which I think applies to this article as well:
Sadly, I don’t think the time has come for educators to say “Enough’.
My personal/professional opinion is that it is not realistic to expect that educators are going to defend their profession, since they have been indoctrinated into submission for too long, and are functioning like a dysfunctional family. The teaching profession has become increasingly patriarchal, especially during the last thirty years with more dominant corporate and federal government influence, rigid curriculum, hardship conditions, and a culture of fear and intimidation.
Teachers are now the frog in the pot of water that is increasingly getting hotter but they will not jump out.
My opinion as a former teacher, counselor, and observer of the system for many years, (as well as an advocate against this abuse), is that the teaching profession attracts young adults, mostly women, who were indoctrinated in authoritarian families and schools to be hard working, obedient and subserviant children, and became “people pleasers” with somewhat codependent personalities. They have a strong need to perform well and please authority to the point of becoming workaholics and perfectionists. (myself included).
We can recognize that teachers today who tolerate authoritarian mistreatment and allow themselves to be bullied, and allow themselves to be used to bully children, have a dysfunction. I call it the “Cinderella Complex”, but by whatever name, it is an unhealthy submission to authoritarian dominance that has the same characteristics on some level as the Stockholm Syndrome, or Battered Person Syndrome. Most teachers today are submissive in a culture of oppression that is equal to that which kept the black culture of the South submissive for a hundred years after the Civil War.
The same social system that caused black Americans to accept their inferior status in an oppressive environment for so long, without trying to change it, has been doing the same for teachers for a long time. As in the Heart of Darkness, it is a creeping thing.
Most teachers feel helpless and may complain to some extent, but they will not take meaningful actions that will change anything. They fear losing their jobs as a means of their own survival, and their indoctrination via fear and intimidation, punishment and reward, has created a culture of loyalty to abusive authority. It took the Freedom Riders coming into the Old South in the 1960’s to wake up the black culture, and it will take something revolutionary to change the culture of the teaching profession now.
My opinion is that it will require extreme public outrage and new laws to make a difference. I think it will take strong advocacy from the mental health profession and universities to make people realize the psychological damage that is being done to children. I think the public outrage needs to be directed toward:
(1) Dismantle DOE and relinquish federal control of public schools to state/community
(2) Taxpayer money used only for public education, not charter or private.
(3) Improve teacher training programs to include holistic education that addresses developmental needs of children and establishes standards for a “healthy” learning environment.
….just my thoughts!
Joyce,
“. . . just my thoughts!”
And they are good ones! Your explanation of teachers as exhibiting “the characteristics of Stockholm Syndrome or Battered Person Syndrome” is spot on! Yours is one of the better explanations I’ve heard explaining the sheer “sheepleness” of many teachers.
Thanks!
Lenny Isenberg, told me that teachers suffer from the Stolkholm syndrome, years ago.
He said that things won’t change until the teachers take matters into their own hands. But what I know, is that when it happened to me, I and no idea that this was the process that was going on across 15,588 districts.
Hey, we teachers barely know what is going on in the city or state next to us, let alone the room next door (except in my school where we collaborated on everything, and knew every one of th e800 students). I wrote this in 2004, 7 years after they harassed me out at the pinnacle of a successful career.
http://www.speakingasateacher.com/SPEAKING_AS_A_TEACHER/No_Constitutional_Rights-_A_hidden_scandal_of_National_Proportion.html
It is really something to know that finally, teachers across the country are seeing the big picture, and realizing they do not have to lie down and take it from the weasels that run the show.
FYI, Lenny was teacher who they took out of his room in handcuffs! He is not taking the package they offered, but is SUING THE UNION.
http://www.perdaily.com/2013/11/lausd-gives-me-a-chance-to-be-a-hero-for-student-teachers-and-families.html.
He has been writing about the union for years.
http://www.perdaily.com/2014/07/when-did-teacher-unions-decide-to-turn-against-collective-bargaining-rights-by-kathleen-carroll-1.html
http://www.perdaily.com/2013/10/why-does-utla-continue-to-support-lausds-violation-of-california-teacher-dismissal-process.html
http://www.perdaily.com/2011/03/lausd-and-utla–connecting-the-dots-of-blattant-corruption.html
http://www.perdaily.com/2014/03/lausd-and-utla-collude-to-end-collective-bargaining-and-civil-rights-for-teachers-part-2.html
In fact, I began communicating with this brilliant man, when he put up Perdaily, a decade ago, hoping to do what Diane has done, bring teachers from across the nation to one place where they could see the whole picture. It didn’t happen, but Lois Wiener, karen Horwitz and many other activists wrote there.
Check out Perdaily.com as he fights to get rid of sleasy John Deasy..
http://www.perdaily.com/2014/08/criminal-charges-should-be-brought-against-lausds-superintendent-john-deasy.html
Beautiful Joyce! I have friends who won’t even post a comment on a blog.
Since we know that corporations and neoliberal politicians have been behind this business plan at least since the 1971 Powell Memo http://reclaimdemocracy.org/powell_memo_lewis/ I sometimes wonder if the 40 year build up to corporate dominance was intended to come precisely now, as baby boomers retire. Boomers are probably the last generation to have seen and benefited from a preponderance of unions in both the private and public sectors and the rise of the middle class. At least partly, that was due to the GI Bill that World War II veteran fathers took advantage of, but the last of them are dying off now. Perhaps it was believed that, at this point, few would remain, remember and revolt against the tyranny of corporate domination in our country.
Actually, I can think of no better time for Boomers to revolt, especially since they know from their experiences in the 60s and 70s how to do that effectively. They have personal stakes as well, since the message that is being sent to the aging and ailing is, “We are aiming to take away your pensions and reduce your (already very low) Social Security benefits, so that you all die quickly.”
Thank you for your inspiring message. As you pointed out, the sad part is that the media controls the message. When it is made up of many that have invested in privatization schemes, it is difficult for teachers to have a voice. Without vast resources, maybe teachers should work to get a You Tube channel that exposes the lies, fraud, legal battles etc, in education today. It needs to be done before the internet is silenced as well. The Billionaires are working on that now!
Reblogged this on We Are More.
What a wonderful post on this Labor Day. I too believe that teachers – and parents – will be the wedge of a new respect for public service, civil servants, professionalism at the public school level, and a new, broadly inclusive view of who gets to have quality education in this country and why that is so important.
There was virtually no impact of NAFTA on the garment industry. Textile production worldwide is concentrated in countries not covered by NAFTA, and the Mexican producers can not compete internationally with the producers in Asia.
Details, details.
Between 1993 – 2000 alone, over 66,838 apparel jobs were lost due to NAFTA, according to the Economic Policy Institute. They provided this table showing job losses by industry and state:
Click to access state-losses-table.pdf
Veteran,
If we look at the trade statistics, you can see that Mexico is a relatively small producer of textiles. In 1990 Mexico provided .5% of the world’s textile exports, that increased in 2000 to 4.4% and declined in 2004 to 2.8%. The US share of imports was 24% in 1990, rose to 32.4% in 2000, and declined to 28% in 2004.
The big exporters in the world are the European Union with 29% of exports in 2004, China with 24% in 2004.
A neither here nor there answer from TE when proven wrong about the American jobs that he so loves to see going to Asia.
Read the chart. Those are US jobs lost due to NAFTA, as indicated in the URL, and jobs lost in textiles are listed separately from jobs lost in apparel.
Veteran,
If you really really want to preserve jobs, stop technological change. Most of the counties in my state have been loosing population for the last 100 years because of technological improvements in agriculture along with declines in transportation costs. Ban tractors in farming and we will go back to having 50% of the population living on the farms.
My husband owned a textile brokerage firm he had to close after NAFTA. The initial textile competition came from Mexico and the”maquiadores” that lined the border. When companies saw they could lower the bottom line in Asia, they closed lots of the Mexican facilities in favor of cheaper sites in Asia.
Retired,
It was the expiration of the MFA that changed world trade in textiles. Mexico is but a small player in the world market, and now is not able to compete with the low cost providers around the world.
It doesn’t matter which “free” trade agreements resulted in the out-sourcing of so many US jobs or to which countries those jobs went. What matters is that the jobs are gone due to our own government’s complicity in implementing policies which are to the benefit handfuls of corporations and to the detriment of millions of American workers. That includes, as Diane correctly stated, workers in the NYC garment district:
“NYC Garment Workers: A Rags to Riches to Rags Story”
http://inthesetimes.com/working/entry/5056/new_york_garment_workers_rags_to_riches_to_rags
STAND UP FOR WORKERS’ RIGHTS!
Tell Congress: Protect workers’ right to organize
http://act.credoaction.com/sign/protect_workers_rights
Cody does a good job putting the pieces together. I think the piece would be stronger if he inserted a line or two debunking the notion that KIPP and its ilk are the salvation of inner-city kids that they seem to be. For most lay readers, it’s hard to swallow the idea that inner city public schools prior to the charter revolution were in any way defensible.
Sadly I think we’re far, far away from teachers mobilizing. Perhaps if we could bombard them with pro-labor propaganda (e.g. that new documentary on the Reuther brothers that Peter Dreier writes about on HuffPost) for the next two years, we would lay the intellectual groundwork for becoming assertive workers and assertive citizens. Walmart and other corporations “educate” their workers in this way, with forced viewing of videos. Perhaps labor unions should learn from the private sector in this regard. Asking teachers to take the streets right now would, given the cultural conditioning we’ve had since Reagan, be “developmentally inappropriate”.
Having been an active participant in Occupy Oakland colors my comment. When the world’s attention was on OO and the national debate was changing as a result, I saw that the marches struggled to get a couple thousand participants. Millions of Bay Area progressives simply sat on the sidelines. Yes, there were hooligans who discredited the marches, but they needed to be outshone by vast numbers of normal people voicing their displeasure at our national drift toward oligarchy. Instead the normal people stayed home and excitedly followed Twitterl and other media accounts of the protests, many of them hoping for continued growth, but unwilling to get out there themselves. This allowed the hooligans’ profile to rise, leading to a death spiral. Did they think Twitter was an equal and effective way of making a statement, and so, was OO a victim of Americans’ besotted love for innovation? I think many, for whatever reason, have been conditioned to think that marches don’t achieve anything. If the relatively liberal Bay Area cannot generate a sustained and forceful people power action, how can we expect the rest of the nation to?
Fyi, the Garment District has not “been replaced by luxury high-rise residences.”
FLERP, the garment industry no longer exists, and the garment “district” is a memory. High-rise condos are replacing what were one busy factories to manufacture clothing.
I don’t think that’s true. I don’t know as much as I’d like to know about that area, but I know that almost all the “high-rise” buildings in the Garment District were built in the 20s. The vast majority of them are still commercial, not residential. A substantial portion (I’ve read as much as half, though I can’t verify that) of the commercial tenants are in the fashion/apparel industry. The residential buildings remain a lonely minority, are probably mainly coop from conversions in the 1980s. I’m not aware of a single “high-rise condo,” luxury or otherwise, in the area historically known as the Garment District. (You may be thinking of developments west of 9th avenue.)
FLERP, I do know of residential conversions and luxury condos. I also know that the factories have gone, taking the jobs with them. I don’t understand what your argument is. Are you saying that the garment industry did not get outsourced to low-wage nations? Do you think it is still in NYC? Did you see the documentary on “The Rag Trade” and the data it showed about the collapse of garment manufacturing in the US?
More startling is the decline in farmland, farming, and farmers in NYC. Once a thriving industry, it has been driven out of the city by high land prices.
yes, that is true, TE.
Any concern about the farmers driven out of the city, or does the attraction of relatively inexpensive food outweigh the concern about farmers loosing their livelihood?
TE, the farmers left the cities long ago because there was little or no farmland. The farmers did not have a union. Today is Labor Day. Happy Labor Day.
The farmers left because of competition from other farmers with access to cheaper land, cheaper labor, and the ability to replace people by machines.
We could have preserved the farmers of New York City by imposing restrictions on food coming into the city from anywhere that paid less than the average wage in NYC. That is the logic of the position here, correct?
I’m saying that (1) luxury housing, or any other kind of housing, is not reason that the so many of the manufacturing jobs that used to be in the Garment District are no longer there; and (2) in fact the Garment District is largely commercial, and most of the factory space formerly used for manufacturing is now office or studio space.
I haven’t seen that documentary. I’ll check it out. I certainly agree that these manufacturing jobs have largely moved overseas, but I would be very surprised to learn that NAFTA was a significant factor in that process, as it’s my understanding that the Garment District’s manufacturing workforce had been sharply declining for decades before NAFTA, and that by the 1990s, the button factories had already left the West 30s. But I’ll check out “The Rag Trade” and report back.
FLERP,
I think you missed the entire point of the post. The garment industry is gone! The jobs went to other countries with no unions! Whatever is in those buildings now is not an industry, not unionized and NOT relevant.
Understand now?
Those industries went to places where a significant portion of the population subsists on less than $1.25 a day. Globalization is the best hope for the world’s poor.
TE, you have outdone yourself with statements of utter nonsense:
“Globalization is the best hope for the world’s poor.”
Surely you jest. Does your freedom mean so little to you that you would align yourself with the “globalization” efforts to erase all borders and all national sovereignty and individual rights for efficient governance by the all knowing state? Globalization is a race to the bottom in wages and working conditions for all laborers of the world and you should be ashamed for endorsing it today of all days.
Dawn,
Not a jest at all, globalization is what has taken A BILLION people out of extreme poverty over the last 20 years.
It is the use of coal to produce electricity that has lifted people out of poverty. (650 million in China alone) https://www.advancedenergyforlife.com/sites/default/files/Clemente%20Energy%20Poverty%20White%20Paper.pdf
It is the policies of “sustainable development” that will prevent Africa and India from accessing coal to bring their people out of poverty. The World Wildlife Fund with the cute panda bear umbrellas won’t allow it. Prince Phillip, trained in the Hitler Youth curriculum, who co-founded this bit of trash masquerading as an environmentally motivated group is a proponent of depopulation. What does he care if a few million Africans die because his organization blocks their efforts to progress?
Dawn,
Why the use of coal now? It has always been there, it been useful as an input to substitute for human labor for over 150 years.
Yes, I understand that the factory jobs that used to be in the Garment District are no longer there, that they have gone to other countries, and that this is an example of the waning strength of private-sector unionism in the US. I hope you understood and considered my points about whether NAFTA and luxury high-rises were the cause of these changes in NYC’s garment industry.
In today’s schools, teaching is equal to working in a sweat shop.
Maybe it is time to revisit the story of Norma Rae, and inspire a strong national teacher’s union?
You can see the high-rise condos that are currently for sale in the Garment District here:
http://realestate.nytimes.com/sales/garment-district-new-york-ny-usa
I think this topic is well-beaten by now, but I would just note that only 3 of the 10 on that list are actually in the garment district, that 2 of the 3 that are in the district are coop conversions, not condos, and that the only one that fits the bill as a “high-rise condo” is on 42nd street.
FLERP,
My comments were about the disappearance of the garment industry. It was Labor Day. It was a post about Labor Day and the attacks on unions. Labor Day. Remember that the unions used to have a huge Labor Day parade because NYC had so many unionized workers. Labor Day, FLERP.
I saw three pages with 29 listings, not just 10. It also indicates that the search is specifically of the “Garment District.” Maybe you should take into consideration the fact that the district used to be larger than it is today. Personally, I see very little difference between condos and co-ops, since both are apartments for sale and I think they can equally contribute to turning a business district into a residential neighborhood. And since when are you the thread police?
Other Spaces — my point is that the manufacturing jobs that were once so plentiful in the Garment District have not been pushed out by luxury housing. Those jobs left for other reasons. And even today, the Garment District is not a “residential neighborhood.” It’s not really a “neighborhood” at all. If it were, it probably would be the lowest-density neighborhood in Manhattan. It remains overwhelmingly commercial, notwithstanding the fact that a nytimes.com real estate search will turn up 29 units “in or around the Garment District.”
FLERP, I did not say that “the manufacturing jobs that were once so plentiful in the Garment District” were “pushed out by luxury housing.” What I wrote was that manufacturing jobs left because of NAFTA, which encouraged factory owners to outsource their factories and jobs to low-wage countries. Luxury housing in that area arrived long after the jobs were gone and the unions were decimated. I really don’t understand how you missed the point and invented this crazy idea that factories were displaced by luxury housing.
I invented this crazy idea that factories were displaced by luxury housing by reading a sentence that said: “Today, the Garment District has been replaced by luxury high-rise residences.”
You were wrong about NAFTA, too, as has already been pointed out on this thread. But that’s another issue. Like I said earlier, I understand that the main thing you wanted to do in this post was to note that union jobs that used to be in the neighborhood are now gone.
FLERP, give it up. I have lived in New York City for 50 years. I never wrote that the garment industry was pushed out by luxury housing. I wrote that after the garment industry left for low-wage nations in Mexico, then Asia, the character of the district changed. Luxury housing arrived long after the jobs had been outsourced. Pease try to see the special–either HBO or PBS–called “The Rag Trade.” As you are well aware, you have fastened on an irrelevant point, obscuring the post itself, which was about the disappearance of a thriving, unionized industry from NYC and the nation. Please stop beating your irrelevant point into the ground. I am so sorry that you did not understand the post. Maybe I don’t write clearly enough. It was supposed to be a sad reflection on the loss of working-class jobs and the unions that were able to amass tens of thousands of workers for John Kennedy’s 1960 campaign speech in the heart of the Garment District.
Sometimes there’s a gap between what we intend to convey and what we actually write. I probably would have spent a lot less time beating this point into the ground if I knew earlier that we both agree that “[l]uxury housing arrived long after the jobs had been outsourced” (although I would still question how many times you’ve actually looked around the West 30s between 6th and 8th Avenues, which is almost exclusively commercial). And again, recognize that NAFTA was not the cause of the loss of these jobs.
I will watch the Rag Trade.
Dr. Ravitch,
Clothing manufacturing jobs left Manhattan because it was wasteful to use costly inputs to produce something when that good can be produced using less costly inputs. It is the same reason farming left Manhattan.
I understand that India produces professors of economics who work for less than half your salary. Your job may soon be outsourced to a professor in India who speaks flawless English and teaches large classes online. Good economics, right?
Dr. Ravitch,
Generally we import faculty from abroad. My department has faculty from all over the world (If you look at the economics department at NYU I suspect you will find the same thing).
It is good economics.
TE, it is only a matter of time until your job is outsourced. I was not referring to hiring faculty from abroad. They get the same pay as American-born faculty. You did not use the correct analogy. Outsourcing the jobs of American workers to low-wage countries is equivalent to outsourcing your job to an economics professor in another country who would gladly do your work for $20,000 a year–or less.
Dr. Ravitch,
I don’t know why you draw a sharp distinction between sending a job to a low wage country and brining a worker from a low wage country to do the same job here. Certainly those here who complain about H-1B visas don’t seem to see much of a difference.
The enemy of highly paid labor is always someone who is willing and able to do the job at a lower wage. That is why the most venomous statements here are about “scabs”, not employers.
TE hears only what he wants to hear.
This is very much about greedy employers who value money over the experience and expertise of American workers.
There is plenty of venom against employers who see non-union workers as more valuable just because they’re cheaper, including school districts that fire veteran teachers and hire TFA.
Similarly, many are enraged by companies like Microsoft which promotes lies about there not being enough competent US workers and brings in foreigners on H-1B visas, then fires 18,000 US workers.
MUCH more acrimony has been expressed here towards corporations and politicians who care more about the almighty dollar than US workers. How someone who stalks this board on a daily basis and preys on vulnerable and weary workers, in order to proselytize, could be so out of touch with them and their concerns is rather astonishing.
This is very much about greedy employers who value money over the experience and expertise of American workers.
There is plenty of venom against employers who see non-union workers as more valuable just because they’re cheaper, including school districts that fire veteran teachers and hire TFA, and this has been voiced repeatedly.
Similarly, many are enraged by companies like Microsoft which promotes lies about there not being enough competent US workers and brings in foreigners on H-1B visas, then fires 18,000 US workers.
Wake up and get a grip, TE!
Cosmic,
It is certainly true that I am equally concerned with workers outside the US as “US workers”. I find it immoral to favor one group over another because of accident of birth.
The enemy of a highly paid worker is not the employer, but the other worker that is willing to do the job for less money. That is why those people are dehumanized by using labels like “scab”.
Then I will be just as happy as you when you lose your US tax paid job to those foreign “enemies” that you so prefer over struggling Americans, TE!
That day cannot come soon enough!!!
Cosmic,
I doubt that I would be happy if someone that is willing to work for a lower salary than I am takes my job, but I will not think it immoral or unjust. My concept of morality is not centered around my own happiness. Is yours?
“Charity begins at home” means taking the responsibility to prioritize the care of our own, because no one else can be counted on to do that, especially greedy corporate CEOs, bought politicians and self-righteous propagandists like you, TE.
I kind of like it, I must say. It’s like airline safety protocol (“secure your own oxygen mask before helping others”) applied to morality.
FLERP!,
I think a better airplane analogy is to sort folks by nationality and put US citizens (or perhaps just those residing in the US) closer to the emergency exits. It probably does not matter, but just in case……
I’m 6’4” when I don’t slouch, so I do like the exit row.
FLERP!,
Just be careful with your knee defenders. Hey can get you in trouble.
FLERP, the documentary you should see is called “Schmatta,” HBO, here’s a piece of it: http://m.youtube.com/watch?v=oBZYzOy9gB8
Thanks. The Gershwin is heartbreaking. Rhapsody in Blue opened just a few blocks away from these factories.
Cosmic,
I find it immoral to value the comfort of those nearby more than the desperation of those far away. We will just have to disagree on this point.
TE — doesn’t that lead to the belief that fundamentally, and despite the best of intentions, people are immoral?
FLERP!,
I think the fact that we don’t actually sort airline passengers by nationality or race or gender to determine distance from emergency exits to be some evidence that we are making progress I being a more moral society. I am, however, one of the few optimists that post here, so that view might well not be shared by most.
I agree that society is much fairer than it used to be, and that people today are generally kinder and gentler than people have ever been before in human history. What I mean is this: I suspect my instinct to preserve my own life is more powerful than my sense of fairness. Or: Everyone cracks under torture. Why? Perhaps because that’s our nature, in the most fundamental sense. It’s one thing to deny that there is a moral basis for our instincts toward self-preservation. It seems to be a different thing to argue that our instincts are *immoral*.
TE is morally bankrupt. He thinks it’s better for his own, foreign born foster “son,” who has children, to stay in a job that is just above minimum wage than it is to advocate for higher wages for minimum wage workers, because then there is a risk that minimum wage workers might lose their jobs. There is nothing ethical about condemning anyone to poverty, but especially those you call “family.”
Reteach,
Do you think it better that my foster son not be able to find any job at all? Would he be wealthy if he could not find employment? What date do you wish for your foster child?
Feel free to not answer any or all of these questions. I know that thinking about them can be uncomfortable.
Obviously, thinking about research that is contrary to your propaganda is VERY uncomfortable for you, such as this:
“A 2011 Study Exploded One Of The Biggest Fears About Raising The Minimum Wage”
http://www.businessinsider.com/minimum-wage-increase-job-loss-unemployment-workers-2013-2
There is plenty of research similar to the above indicating that jobs have NOT been lost due to raising the minimum wage, but instead of YOUR advocating for increasing the minimum wage, you would prefer to let people like your own foster son struggle in poverty, and THAT is immoral.
Reteach,
What increase do you propose? $15 an hour is often heard, but wouldn’t $20 an hour be even better? If we assume 2,000 hours of work a year, no one would earn less than $40,000, surely a livable wage. If you want everyone to earn more, just increase the minimum wage to $30 an hour.
“No Job Loss in Most States That Raised Minimum Wage”
http://www.thefiscaltimes.com/Articles/2014/07/07/No-Job-Loss-Most-States-Raised-Minimum-Wage
Reteach,
Again, if there is no impact on employment why not increase the minimum wage to a level where all could live a life of relative comfort, perhaps $30 an hour for everyone. Every man a king,
So now it’s God forbid everyone should live like “a king.” I have never even seen you advocate for taking action to address the inequitable distribution of wealth in our country. You are nothing more than an unethical, cowardly hypocrite.
Reteach,
It would be my fondest wish that everyone should live as a king. I just don’t think that the government proclaiming that all should live as a king would make it so.
In your heart of hearts, do you really think that a government can legislate prosperity?
Reteach,
Expanding the earned income tax credit would be a much more spendable way to adress poverty than making it more expensive to hire people.
Not spendable, but reasonable.
Diane and FLERP!
In a thread above, I referred to an article that is about the content of that HBO special:
“NYC Garment Workers: A Rags to Riches to Rags Story”
http://inthesetimes.com/working/entry/5056/new_york_garment_workers_rags_to_riches_to_rags
It’s a waste of my time to talk to someone who characterizes government intervention as “regulating prosperity.”
You have not demonstrated that you have a heart, including for your own family members.
Just wait until this next “Left Behind” movie starring Nicholas Cage is released. The paranoids will be in their bunkers with their hoards of munitions, just waiting to get rid of anyone who stands in their way. The things people post are unbelievable. I can’t even do anything but shake my head. Smug pomposity is really frustrating, to say the least.
Deb,
I would say that thinking you can legislate poverty away by simply requiring businesses to pay more is more about hubris than pomposity.
cx: legislate not regulate, though they mean basically the same thing.
I’m guessing he shows favoritism for his biological kids, especially if they are more prosperous, which is not unusual in families that pray to the almighty dollar.
Veteran,
Interesting ad hominem.
I am in favor of a tax on carbon emissions because I believe the higher cost of emitting carbon into the atmosphere will result in firms and individuals emitting less carbon into the atmosphere. I am against making it more expensive to employ people because I believe that will result in less employment for the same basic reasons.
You might think about that as you wait for the attendant to fill your car with gasoline.
Deb, “Smug pomposity” is a spot on description of what we are contending with here. And, unfortunately, that is what is so pervasive elsewhere as well.
Cosmic,
I would say the idea that legislation can eliminate poverty is more about being hubris than being pompous. Something to think about while you wait for the gas station attendant to fill your car with gasoline.
It’s TE who exemplifies hubris. He arrogantly displays his preference for trade agreements that have benefited the wealthy and resulted in the outsourcing of American jobs to foreigners for slave wages under deplorable working conditions, and which have resulted in horrendous deaths.
He has no problem with legislating wealth. Forget about closing tax loopholes for the rich or penalizing the wealthy who are hiding trillions of dollars in offshore tax havens.
He has no empathy for those who are unable to make a living no matter how hard they work. He is an apologist for greedy employers who exploit workers and doesn’t believe that not being paid a livable wage is exploitation. Forget about equity.
He has no concern for even his own family members who struggle with poverty. A once a year tax break does not help people when they are trying to survive from paycheck to paycheck. The earned income tax credit does not apply to people who have no dependent kids either, so forget about help for the rest of the working poor.
And he continues to ignore data indicating that raising the minimum wage does not result in job loss. From one of the links provided above:
“Of the 13 states that raised their minimum wages, all but one saw job growth in the first five months of 2014….
The really interesting finding is that the states that raised the minimum wage saw job growth that was, on average, higher than states that did not. The 37 states that did not raise the minimum wage at the beginning of this year saw employment increase by .68 percent. Those that did raise the wage saw employment increase by .99 percent.”
Forget about an “economist” who does not keep up with current research and has no concern or plan for ameliorating poverty. TE should be ignored just as much as he ignores the working poor.
Elder Wise,
You need to think just a little deeper. What do you think those foreigners will do if you do not allow them to work in export industries?
I don’t think I have made any comments about closing tax loopholes other than to suggest that the mortgage interest deduction benefits the relatively wealthy much more than the relatively poor. I am all in favor of broadening the tax base.
I am in favor of expanding the earned income tax credit to people without children. I think it is a wise policy move. There is a forced savings aspect to the EITC as it is now done that I am less sure about. Do you think we should use the social security tax system to give folks weekly subsidies rather than the annual payments we have under the current system?
We know about how damage control and re-branding are supposed to work. TE has already demonstrated that he is way beyond redemption. I repeat, “TE should be ignored just as much as he ignores the working poor.”
In general, people who say TE should be ignored do an extremely poor job of ignoring TE.
Hopefully my comments will get people thinking about what happens to those working in export industries in the developing world if we try to prevent them from being able to work in those industries.
“Let the people take heart and hope everywhere, for the cross is bending, the midnight is passing, and joy cometh with the morning.” [Eugene V. Debs]
We recently passed the anniversary of the ultimate sacrifice of three very brave people—James Chaney, Michael Schwerner, and Andrew Goodman. Mississippi Freedom Summer 1964. And remember: it wasn’t just about voter registration—there were the many Freedom Schools too.
Meaningful change comes with great effort, painfully and slowly.
And not from the top down but the bottom up. Yes, the education establishment has the billionaires and the politicians and the MSM but we have the same power that ensured that those three mentioned above—and others—did not risk everything in vain.
A “better education for all” is within our power.
Thank you, Anthony Cody, for your heartfelt words.
😎
FLerp, TE and Veteran Educator, You are all sniping at details in an effort to deny the main thrust of the post. Does it matter if it was some other free trade agreement that actually sent our garment industry overseas? Yes, NAFTA only concerned Mexico, Canada and the U.S. but so many more that followed on its heals encouraged foreign direct investment in Asian countries that crushed our manufacturing industry. You cannot deny that our garment factories are closed. You are grasping at straws for who knows what reason. It’s Labor Day. Support labor for once instead of justifying the actions of self-serving congressional sell outs, Clinton and others who have been instrumental in destroying the prosperity of the middle class and the productivity of our great nation.
The ASEAN Free Trade Area (AFTA)[1] is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.
The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries of ASEAN. All the four latecomers were required to sign the AFTA agreement in order to join ASEAN, but were given longer time frames in which to meet AFTA’s tariff reduction obligations.
The primary goals of AFTA seek to:
Increase ASEAN’s competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and
Attract more foreign direct investment to ASEAN.
Dawn,
Don’t forget the commerce clause of the constitution. It had a profound impact on the decline of industries across the country.
Are you going to also post pictures of factory collapses in Bangladesh, which were producing clothes for American companies such as Disney and Walmart? No? I will: http://online.wsj.com/news/articles/SB10001424127887324874204578441912031665482
Thanks, Threatened out West!!
Threatened,
Good to post those too. My suggestion is that you give the folks in Bangladesh as many options for employment as possible. If an employee has good alternatives, they don’t have to work in a dangerous factory or live under a banana tree on the road for three months.
What do you suggest? In my mind, limiting their ability to sell things to us forces too many of them back on the islands, where many will die quite, unreported deaths.
NONE of the so-called choices for those in terribly poor countries such as Bangladesh are good choices, so let’s try something else. I really like micro-financing, agricultural assistance and training, and helping these countries create their own wealth, instead of the neo-colonialism of paying them ridiculously low wages to work in sweatshops to make clothing that used to be made in the U.S.
Threatened,
Your right that none of the choices are good, but some of the choices are less bad. Don’t take away the less bad options unless you can live with imposing the the bad options on people you do not know and never will meet.
Read the past posts TE wrote when there were disasters in Asian sweatshops. He is thrilled that Asian farmers have gone to cities to take our out-sourced jobs, even when they work in fire traps and are burned alive,.
Veteran,
I am thrilled that the young women of those countries have the option to work in factories rather than live as subsistence farmers in a traditional society that treats women as property. I am rather surprised that you don’t feel the same way.
So let me get this straight…you are thrilled to see women chained to sewing machines with no breaks and no opportunities to see their families rather than working out in a field to pick the food they will be preparing and eating with their families that night.
How is slave labor sewing not treating women as property? You think they are just paying their dues on the way up the corporate ladder?
http://www.cnn.com/2014/06/26/world/asia/primark-chinese-prison-labor-note/
It is our free trade laws that encourage this.
The garment industry was unionized. The workers arrived from Eastern Europe and Latin America. They had one skill: they knew how to sew. The ILGWU helped them join the middle class. Those jobs have now gone to other countries with no unions.
That is exactly my point. When I say slave labor sewing I am referring to those situations in other countries that our trade agreements encourage.
Dawn,
I am thrilled that women are not married off to the local headman at thirteen and die in childbirth at 14. I would much rather see women engaged in the formal economy, working for a multinational which generally pays higher salaries and has much better working conditions than the informal, unregulated workplaces where the vast majority of folks work in the developing world. i think we can both agree on this.
You obviously did not read the article that I linked to my post about China forcing prisoners to work for free to produce garments for their GDP. And it doesn’t take much to wind up in a Chinese prison. They stock them for this purpose.
Stop acting like you are so concerned about young girls marrying or dying in childbirth. The policies that the globalists are pushing right now will return us all to the dark ages. There will be a few kings and queens, with Blackwater to protect them and the rest of us will be serfs dying of the plague or Ebola or whatever they devise to depopulate the earth.
Dawn,
Traditional rural culture is the dark ages for women. The solution is the material prosperity that is brought about by cooperating with as many folks as we can in the global economy.
Forced labor is an entirely different issue. I am in favor of giving folks as many choices as possible, including many choices of how to make a living. Restricting those choices will only make everyone worse off.
Veteran Educator: you do not exaggerate.
Yes, 1100 Bangladeshi deaths, totally unnecessary and literally preventable, are viewed by one commenter as a gleeful downpayment on “progress.”
😱
But criticism of same: don’t people have a heart? What happened to decency and honor?
😧
Leaving aside Dr. Raj Chetty with all his ‘Michael Jordan’ outliers hither, thither and yon, perhaps the commenter in question could devote a few seconds to studying the late Michael Jackson’s study of the human tendency to fix on outliars, “Man in the Mirror.”
“I’m starting with the man in the mirror
(Oh yeah!)
I’m asking him to change his ways
(Better change!)
No message could have been any clearer
If you want to make the world a better place
Take a look at yourself and then make the change)
You gotta get it right, while you got the time
You can’t close your, your mind!”
Then buy a mirror.
And come to think of it, Dr. Raj Chetty and his disciples could learn something from the other MJ about VAM and such like:
“There is no ‘i’ in team but there is in win.” [Michael Jordan]
Go figure…
😎
They say a picture is worth a thousand words, so here are some pictures of life in rural Bangladesh: http://www.theguardian.com/global-development/gallery/2013/jan/23/bangladesh-floods-hunger-in-pictures
My grandmother was a member of the ILGWU.
“They say a picture is worth a thousand words”
This picture tops yours by at least 120 MILLION words, TE. “Bangladesh Factory Fire Kills 120”:
Veteran,
Any thoughts on what should be done? I can’t see forcing these women back to traditional agriculture, but I suppose others might want to do that.
The only way working people have rights in the workplace is because their government is behind them. By that, I mean laws are passed that protect rights to organize. The US government has been very weak in supporting/enforcing labor laws. The last 30-40 years have been devastating for the working class. Voting for people who support workers is essential, up & down the entire ballot, if teachers & all other workers hope to maintain any kind of workplace dignity.
Vote Teachout in the NY primary
Sept 9
In Ohio, many of us worked to overturn Senate Bill 5, which was anti-teacher, anti-worker, anti-union. We got a million signatures and turned them in to get the issue on the ballot. We won. But Kadich is at it again with “Right to Work” legislation. It is a never-ending battle to work against this man and his deceiving misrepresentations about his goals and purpose. He and others likevhim prey upon the misinformed and get them to vote to protect their own purses, at the expense of everyone, including themselves. There needs to be a similar movement against privatization and testing mania.
So most people (except TE and Flerp) understand that free trade agreements such as NAFTA have caused the demise of American manufacturing. Now if you follow the history of NAFTA you come to President Clinton’s Council for Sustainable Development on which 25 people sat, including Andrew Cuomo, head of the Dept. of Interior, head of the Dept. of Energy, and representatives from the Sierra Club and Greenpeace.
They all worked together to craft the policy which would become legislation in the form of NAFTA. They were using the agreement signed by George Bush Sr. in 1992 at the Earth Summit as a guide for constructing policy that would be equitable, socially just and environmentally sustainable. They were following the instructions outlined in Agenda 21, the non-binding resolution signed by 178 heads of state including GHW.Bush.
So my question is…..why do I get attacked on this blog every time I point out that supporting “sustainable development” or “smart growth” is actually a bad idea just like NAFTA was a bad idea and it will bite us in the end?
(Do not confuse my being against “sustainable development” policies such as carbon taxes and limits on vehicle miles traveled with being against recycling and limiting air and water pollution by factories….those are two different issues not to be conflated. Of course I love nature and want to protect it.)
“. . . why do I get attacked on this blog every time I point out that supporting “sustainable development” or “smart growth” is actually a bad idea.”
I’m not sure about you being attacked “every time” but because “sustainable development is not the same as “smart growth”. The earth is a finite place and for me the logical path to take is sustainable development not “smart growth” as we can’t continue to grow our way out of all the problems we as humans have wrought for ourselves through the growth models used up to this point in history.
All life re-creates itself, initially within a “growth mode”, however that growth mode over time yields to sustainable living, then decay and death with all living entities eventually returning to the “star dust” form (in our case on this planet to “earth” form) from whence they came.
Garment, steel, auto – NAFTA is just a small part of an overall strategy to reduce labor’s influence. Trickle on economics is a dismal failure. The myth of the “free market” is being revealed. Economists are unable to figure out how markets work and seem to be floundering. We no longer create wealth, we simply shift it upwards. Rather than produce quality or innovation, we have hoards of lawyers filing slap suits or trolling patents.
No one is going to fairly compensate working Americans for honest work. That compensation must be demanded and fought for. Only when working Americans again have equal voice will the terrible inequality be remedied.
And when the Glass Steagall Act is reinstated so that the economy with have some relationship to actual physical productivity rather than a high flying stock market that seems to imply wealth when it actually represents the hutzpah of Jamie Dimon.
Dawn, can you remind me why you believe Glass Steagall should be reinstated?
Allow me FLERP!,
To prevent the casino gambling banksters from legally completely robbing the vast majority of the very finite resources of this earth.
I found that in the 1980s, in Ohio, teachers fought for wages and won. Wagescwere great in the 99s and early 2000s. Teacher got Masters Degrees and kept gaining better wages. Then in 2006, the scales tipped and too many of us were making good incomes and districts froze our wages. We had negotiated for a better wage and better indexing, but we hadn’t negotiated for power and control. That was our mistake. We gave up power and voice for wages and benefits. We can’t seem to get back to equilibrium, if it ever did exist. It seems to be needed today.
The larger plot by the world cartels that run this planet and the US, is to stress the masses of this country, until they cannot reflect on what is happening. Keep them scared, and worried about war. Lies from those we trust to lead, led to Citizen’s United which ended the ability of the people to choose their leaders.
The Dubious Sources of Some Supreme Court ‘Facts’ in the NY Times today is telling.
The justices are hungry for the data in amicus briefs, but a law professor argues that this is a perilous trend, because some of the briefs cite questionable materials.
http://www.nytimes.com/2014/09/02/us/politics/the-dubious-sources-of-some-supreme-court-facts.html?&hp&action=click&pgtype=Homepage&version=HpSumSmallMediaHigh&module=second-column-region®ion=top-news&WT.nav=top-news
With a middle class now bordering on poverty, with 80% of college students (today’s NY Times) unable to get a job, or to enter a field they had educated for, the road to a opportunity is closed. People who have to choose between rent, food, and health care cannot even think about education.
http://opinionator.blogs.nytimes.com/2013/11/16/the-insanity-of-our-food-policy/?ref=todayspaper
And the truth about labor goes way beyond unionism
http://www.nytimes.com/2014/09/01/opinion/wages-and-salaries-still-lag-as-corporate-profits-surge.html
“In the Absence of The Sacred,” (jerry Mander’s wonderful book) those values and beliefs that provided parameters for beneficial human behaviors are absent, replaced by the mad men who sell us our candidates, and sell out our people.
Look at this in today’s NY T
http://www.nytimes.com/2014/08/31/opinion/sunday/frank-bruni-between-godliness-and-godlessness.html?src=meimes
The straw that broke democracy is the take-over of our schools… not the mere monetarizing of education to enrich a few… but the end of a share knowledge so they can tell an ignorant public, glued to their screens what they should ‘know.”
Nazi Germany was stressed like this, and thus, they bought the first ‘leader’ which skillful propaganda told them was the answer…and lots of scary things….ghosts, vampires, violent crime and murder, programs where the protagonist is a serial killer, or a drug-addicted psycho, looking into criminal minds and showing young minds so much blood, aggression and unethical inhumane behavior desensitizes them… we know the studies prove that. The media pushes material pleasures over family and friends and celebrates outrageous behavior by celebs, who are crass, nasty materialistic , empty-headed ignoramus.
And people sit in their little boxes, watching big color windows onto a world that would make our grandparents and ancestors. turn over in their grave. It’s over, but you and I are the greater fools because we refuse to give up…If you never saw this moment then do it now
Flerp, I’d be more than happy to remind you and all on this blog that re-instating the Glass Steagall Act is the single most powerful thing we could do to ensure a future for our nation and our children. It is in the House and Senate right now ready to be passed if there were to be a ground swell of demand from “the people.” http://www.warren.senate.gov/files/documents/21stCenturyGlassSteagall.pdf
The purpose of the Act as quoted from the re-reinstatement bill itself:
1) to reduce risks to the financial system by limiting banks’ ability to engage in activities other than socially valuable core banking activities;
(2) to protect taxpayers and reduce moral hazard by removing explicit and implicit government guarantees for high-risk activities outside of the core business of banking; and
(3) to eliminate conflicts of interest that arise from banks engaging in activities from which their profits are earned at the expense of their customers or clients.
It prevents banks from being investment houses for speculative activities and insurance companies from merging with banking interests. It was a response to the crash of 1929. It created the FDIC which would insure actual bank accounts. Speculation was separated from banking and insurance. People can speculate all they want but not at taxpayer expense to bail them out and not by using account holder funds without their knowledge.
It would wipe the quadrillions of fabricated out of thin air derivatives contracts off the books so that our banking system and our country could get back to investments based on actual physical production of goods.
How would the reenactment of Glass-Steagall “wipe the quadrillions of fabricated out of thin air derivatives contracts off the books”?
What would Glass-Steagall have done to prevent financial institutions like Goldman Sachs, Bear Stearns, Lehman Brothers, AIG, and Merrill Lynch from speculating on the mortgage market in the 2000s?
Were there any notable federal bailouts of financial institutions before the repeal of Glass-Steagall?
Those entities wouldn’t have been allowed to exist in the form that they were at that time and wouldn’t have been able to combine banking and speculating as it was when GS was in place.
Duane,
AIG was and is not a bank.
Insurers, banksters, there all of the same ilk.
And since I’m not an economist I don’t bow down to the altar of Mammon.
Duane,
They may be all of the same ilk, but Glass-Steagall regulates banks, so would leave insurance companies untouched.
Duane, all of the entities I listed except AIG were investment banks in the period leading up to the financial crisis. So I don’t believe Glass-Steagall would have affected their existence or their operations (although as to the latter I may be overlooking some nuance).
Reinstating Glass-Steagall may be a good idea. I’m not opposed to it. But the idea that the financial crisis was caused by the repeal of Glass-Steagall seems far-fetched to me. I don’t think the repeal of Glass-Steagall is why complex mortgage securities developed, or why institutional investors bought them, or why hedge funds shorted them, or why Goldman made the markets for them. Frankly, “It’s all because of a Glass-Steagall” is one of those assertions that people who don’t know much about how finance works, but who are drawn to bold claims that purport to explain everything, love to copy and paste. (For another example, see “It’s all about the Community Reinvestment Act.” When you hear a sentence start with “It’s all about . . .,” you’re about to hear a sentence end with bovine excrement.
Did you read about the same shenanigans that the hedge funds used to package mortgages are being used to package car loans? These people are in contempt of the laws that govern decency. They are robber barons and they have bought the legislature, which bails them out and never sends them to jail.
So sad. This aint’ the America I knew… there is little humanity in the people who run it. Their contempt for the people is visible in everything they do.
Susan,
There is nothing inherently wrong with diversifying your assets in order to reduce the riskiness of your investments. This is the idea behind both both the packaging of loans together and mutual funds.
xxxxxxxxxxxxxxxxxxxxx I am strictly a layman, so I can only go on life experience as a middle-class taxpayer (’70’s to present) and reading. That said: it’s not as simple as Glass-Steagall alone, but re-instating it would be a starting point to correcting some of the more egregious financial abuses of recent decades. Glass-Steagall had already been steadily watered down for decades before its repeal.
As far back as the late ’70’s, consumer savings were allowed to be invested in money market funds partially insured by FDIC and subject to market speculation– which was an answer to the mess created when capping the interest on savings accounts in the mid-’60’s [instilled due to thrift vs commercial bank interest rate wars during the post-WWII boom] met up w/oil embargo/stagflation. Volker responded to inflation by doubling the allowed savings interest rate; S&L’s guaranteed long-term loans w/short-term $, which led to the savgs & loan crisis; meanwhile the radical tax law changes of ’81 & ’86 shifted speculation into the housing market; Glass-Steagall was already nearly a dead dog; the stage had already been set for major financial abuse, simply unleashed by its repeal, combined w/successive Dem-Rep admin’s cutting funding for banking oversight. NOTE: several of the banking/tax law changes of the era were pushing pension plans/funds from thrifts into the speculative markets.
To answer your question, “What would Glass-Steagall have done to prevent financial institutions like Goldman Sachs, Bear Stearns, Lehman Brothers, AIG, and Merrill Lynch from speculating on the mortgage market in the 2000s?”… Perhaps nothing. But had Glass-Steagall as originally conceived been operable, my savings, mortgage, and pension moneys would not have been affected. And had not my & millions of other middle-class taxpayers’ monies been part of the pot, such a scenario would not likely have happened at all.
And what does all this have to do with our blog? Everything. It’s the story of the hungry 1% looking now to profit off the 99%’s dwindling tax dollars.
FDIC does not insure money market mutual funds. Banks offer a hybrid CD/savings account usually called a money market deposit account that is insured. I don’t want readers to be confused about this.
Here is the FDIC list of things it generally does, and does not, insure: https://www.fdic.gov/consumers/consumer/information/fdiciorn.html
I am curious about how you think your savings and mortgage were impacted by the end of Glass-Steagall. I am very curious about why you think your pension was impacted by the end of Glass-Steagall.
A collective teacher voice has depended on unions. The billionaires are recruiting teachers who are not friendly to unions, with the blessing of PR firms that USDE put in charge of helping states and districts comply with RttT requirements, including pay-for-performance.
The PR initiative, funded at $43 million, is dubbed the Reform Support Network (RSN). A 2012 publication from the PR writers working for RSN suggested that districts enlist teacher SWAT teams to head off criticism of the draconian federal requirements, in addition, a recent publication (May, 2014) offers states and districts over 35 other “messaging” strategies.
One of the “other” strategies is enlisting “teacher voice groups.” A “teacher voice group” is RSNs name for a non-union advocacy collective that depends on funding from private foundations favoring pay-for-performance.
Five voice groups are mentioned by name.
All have received major funding from the Bill and Melinda Gates Foundation: Teach Plus ($9.5 million), Center for Teacher Quality ($6.3 million), Hope Street Group ($4.7 million), Educators for Excellence ($3.9 million), and Teachers United ($942, 000). Other foundations are supporting these groups.
For example, Teach Plus receives “partner” grants from eight other foundations (including the Broad, Carnegie Corporation of New York, Joyce) and several major investment firms.
These groups are building out, state-by-state, in an effort to control conversations about “what teachers want. They are amplifiers of the wishes of the billionaires who fund them.
One of the major subcontracts for the USDE marketing campaign for $6.3 million, went to Education First. The founding partner is Jennifer Vranek, a former advocacy expert with the Bill and Melinda Gates Foundation. She and others working for Education First helped a number of states apply for the RttT competition. They have fashioned PR campaigns for the Common Core State Standards in many states. The firm’s website includes a sample of its communication and advocacy services: “Outreach and public-engagement strategies and activities; strategic communications planning; reports, white papers and articles designed to synthesize, explain and persuade; development of communications tools, including marketing materials, web copy, press releases, and social media content.”
All this is just more evidence that the question is not just about who speaks for teachers, but who pays teachers to be spokespersons for union-hating billionaires, and why do these teachers have so little respect for due-process rights, including contracts that are not entirely dependent on the pathology of testing promoted in federal and state policies?
Change can only come through direct action; teaching to the contract, walkouts en masse to start, if necessary, escalating to street demonstrations (e.g. Tahrir Square, Athens etc.) actions that provide a real threat to the corporate base and its lackeys.
“Nobody in the world, nobody in history, has ever gotten their freedom by appealing to the moral sense of the people who were oppressing them.” – Assata Shakur
p.s. the rest of the world celebrates Labor Day on May 1, so should we, after all, it was because of an event that took place here in the U.S., Common Core would never permit this truth telling!
http://en.wikipedia.org/wiki/Haymarket_affair
Even if our teachers did organize enough to form a strong union, Bill Gates & co would buy them out as they have in the past. To stop this beast, t’s going to take a tremendous outcry from irate parents and the public to get rid of the DOE and have local school rule, and NOT use public money to fund charter schools!
Señor Swacker: No fan of criminals am I, but ponder this verse from Woody Guthrie, “Pretty Boy Floyd”:
“Yes, as through this world I’ve wandered I’ve seen lots of funny men; Some will rob you with a six-gun, And some with a fountain pen.”
This is what those in mad dog pursuit of $tudent $ucce$$ mean when they say that “the pen is mightier than the sword.” They say it makes a lot more ₵ent¢ to use the former than the latter.
And another thing. As to the self-styled leaders of the “new civil rights movement of our time” that extol the virtues of “Uncle Rigor and Aunt Mortis” and “bibbidi-bobbidi-boo is the new pedagogy” —c’mon, bowing down to the altar of Mammon is just, like, so 20th century.
😒
They want to keep it Rheeal. In a Johnsonally sort of way…
No, the belief system of the “thought leaders” is found in the sacred edumetrics of the High Holy Church of Testolatry. One of their foundational hymns: “The Lord of the BlingRing.”
😳
Not up-to-date because you’re not in the loop anymore? Taken off Bill’s email list on the word of one of the Snark Lords, David the C?
Maybe it’s all that “quality not quantity” stuff you keep pushing. Doesn’t square with data-drivel, er, data-smitten, darn auto-correct!, data-driven decision making.
Tell you what. I’ll see your Noel Wilson a Banesh Hoffman and we’re both winners. And everyone else too.
😎
Duane,
As you can see from an excerpt from the website below, as far as the planners are concerned, “smart growth” and “sustainable development” are interchangeable terms. They were invented by a research based marketing firm to take the place of the term “Agenda 21.” Agenda 21 is a plan signed in Rio in 1992 by 178 heads of state to inventory and control all resources in the world and equitably distribute them through trade agreements and technology exchanges. It is all pushed and overseen by the U.N.
Your concept of sustainability is not theirs. Like I said, I am all for protecting the planet for future generations and keeping our land, air and water clean but I am not going to bow down to the United Nations when they ask me to worship at the “Ark of Hope” and follow the religious tenets of sustainable development as spelled out in the Earth Charter.
I will not agree to give up my individual God given rights which are enumerated in our unique Constitution because Maurice Strong, Al Gore, Prince Phillip and Bill Gates think we need to turn sustainable development over to one world governance by the United Nations because the environment has no national borders.
I want people to understand that just like we allowed NAFTA (and other free trade agreements) to wreck our manufacturing capacity, we are now in the process of allowing “Sustainable Development” and “Smart Growth” to eliminate our national sovereignty and representation by elected officials.
A bunch of teachers are going to go to support the largest march for Climate Change in NYC on September 21. That is a shame. They think they are doing a good thing when in actuality, they are supporting their own march back to the dark ages where a few rich guys owned everything and had all the technology and everyone else was a serf with a candle. We were asleep at the wheel for NAFTA. Let’s wake up and stop Smart Growth.
Excerpt:
“Maryland is often referred to as the birthplace of smart growth, a movement in land use planning that contributed to what is now referred to as sustainability planning, sustainable development, and sustainable communities.” http://smartgrowth.umd.edu/maryland.html
Flerp,
The Glass Steagall Act was in place from 1933 to 1999. It prevented banks from speculating with account holders money.
“The oldest propaganda technique is to repeat a lie emphatically and often until it is taken for the truth. Something like this is going on now with regard to banks and the financial crisis. The big bank boosters and analysts who should know better are repeating the falsehood that repeal of Glass-Steagall had nothing to do with the Panic of 2008.
In fact, the financial crisis might not have happened at all but for the 1999 repeal of the Glass-Steagall law that separated commercial and investment banking for seven decades. If there is any hope of avoiding another meltdown, it’s critical to understand why Glass-Steagall repeal helped to cause the crisis. Without a return to something like Glass-Steagall, another greater catastrophe is just a matter of time.” –James Rickards is a hedge fund manager in New York City and the author of Currency Wars
http://www.usnews.com/opinion/blogs/economic-intelligence/2012/08/27/repeal-of-glass-steagall-caused-the-financial-crisis
Dawn,
There is certainly an argument for “narrow banks”, but there are too many near banks out there for Glass-Steagall to have any impact on the stability of financial markets. The fundamental problem with banking, that banks borrow short term and lend long term, is not changed by Glass-Steagall in the slightest.
“I am opposing a social order in which it is possible for one man who does absolutely nothing that is useful to amass a fortune of hundreds of millions of dollars, while millions of men and women who work all the days of their lives secure barely enough for a wretched existence.”
― Eugene V. Debs
Happy Labor Day to all the teachers. Best wishes for a great school year.
TE,
You know the history of the Glass Steagall Act so why are you acting as if it has nothing to do with insurance? Back in 1998, Citibank wanted to merge with Traveler’s Insurance and that was illegal under Glass Steagall. So Robert Rubin and Sandy Weill went to work to fix that. If it wasn’t for GS being repealed all of those “creative financial instruments” that were previously illegal would not have been allowed to exist. The rating agencies wouldn’t have gotten away with fraudulently giving them AAA ratings so that unsuspecting pension investors were fooled. And the phony mortgages wouldn’t have been pushed by the banks for their own benefit against the best interests of their clients and then the mortgage backed securities that went bust that all of the pension plans were heavily invested in wouldn’t have gone bust. It was all intertwined but couldn’t have happened without the repeal of Glass Steagall and you know it. (Unless you are not really an economist of any sort.)
“Rubin and Summers were responsible for forcing Brooksley Born out of the Clinton administration because as chair of the Commodity Futures Trading Commission she had the temerity to suggest regulating the mortgage-backed securities that eventually proved to be so toxic. Instead, Rubin and Summers pushed the Commodity Futures Modernization Act, which Clinton signed into law in his last month in office, categorically exempting those suspect derivatives from any government regulation.
By then, Rubin had moved on to a $15-million-a-year job at Citigroup, which became a prime exploiter of the subprime housing market. As a result of its massive involvement with toxic securities, Citigroup, with Rubin in a leading role until early 2009, had to be bailed out by the federal government with a $45 billion direct investment and a guaranteed Fed protection for $306 billion in potentially toxic assets.
Citigroup, a merger of the old Citibank and Travelers insurance company, was made legal only by the Financial Services Modernization Act, which Rubin backed while treasury secretary. Then, in one of the most egregious conflicts of interest in US history, he went to work for the new bank, which took advantage of the changes in the law to buy up the infamous subprime lenders, beginning with Associates First Capital.”
http://www.thenation.com/article/153974/rubin-con-goes#
And this has implications for AIG?
TE,
So the Detroit teachers and other pensioners deserve to lose their hard earned pensions because Goldman Sachs sold them fraudulent insurance swaps in a classic “tails I win, heads you lose” game? They cheated. They lied. They should walk away without being paid. They should go to jail actually. The duped pensioners should not suffer because of fraud that became technically “legal” when Glass Steagall was repealed. Stop defending the biggest ponzi scheme scam in the history of the world. We can either keep believing people like you and watch the whole thing implode in which a lot of people get hurt. Of we can re-instate Glass Steagall which would immediately define which debts are real and need to remain on the books and which debts are the result of fraud and need to be removed and not honored in any way. Glass Steagall would provide for the orderly unwinding of an unsustainable bubble with the least amount of disturbance to mom and pop and a rightful kick to the curb for the likes of Jamie Dimon and Lloyd Blankfein.
Excerpt from Jonathan Turley article:
We need to look at a short history of who Detroit borrowed from and what kind of lending instruments, like interest rate swaps that were used to procure the necessary funds to keep the city alive.
“Interest rate swaps – the exchange of interest rate payments between counter parties – are sold by Wall Street banks as a form of insurance, something municipal governments “should” do to protect their loans from an unanticipated increase in rates. Unlike ordinary insurance, however, swaps are actually just bets; and if the municipality loses the bet, it can owe the house, and owe big. The swap casino is almost entirely unregulated, and it is a rigged game that the house virtually always wins. Interest rate swaps are based on the LIBOR rate, which has now been proven to be manipulated by the rate-setting banks;…” Nation of Change
These Interest Rate Swaps were sold to the City of Detroit by Bank of America and UBS AG and they have proven to be costly to the City of Detroit and in the end, costly to the workers whose pensions may be at risk. These banks are given super priority in the bankruptcy court pursuant to Dodd-Frank and the 2005 Banruptcy Act.
“Under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured. In a major derivatives fiasco, derivative claimants could well grab all the collateral, leaving other claimants, public and private, holding the bag.”
http://jonathanturley.org/2013/08/11/will-detroits-pensioners-lose-out-to-big-banks/
Dawn,
Perhaps we should have made it illegal to move out of Detroit, or at least allow Detroit to retain tax authority over all current and former residents.
Alternatively we might actually pay folks their full compensation when they actually earn it rather than waiting for the city to empty out.
TE,
What do you mean what does it have to do with AIG? Does the phrase “credit default swap ” mean anything to you? Are you kidding?
In this article about the 25 people at the heart of the meltdown, AIG executives definitely on the list.
http://www.theguardian.com/business/2012/aug/06/financial-crisis-25-people-heart-meltdown
Maurice “Hank” Greenberg, former chief executive AIG insurance group
While AIG was taking a multibillion-dollar bailout from the US Treasury and the Fed after its massive credit default business went sour, 100 AIG execs where spending $444,000 on a golf and spa retreat in California. “Have you heard of anything more outrageous?” said Elijah Cummings, a Democratic congressman, said. “They were getting their manicures, their facials, pedicures, massages, while the American people were footing the bill.”
Joseph Cassano, AIG financial products
Cassano has been dubbed “patient zero” of the global economic meltdown. He ran the AIG team that sold credit default swaps in London that led the company into bankruptcy and a massive bailout. Democratic senator John Sarbanes said Cassano “single-handedly brought AIG to its knees”.
Dawn, some people are either clueless, wedded to what their beliefs, based on the media propaganda, and a total lack of knowledge about what really happened… a criminal conspiracy that robbed the nation and took down the world’s economies… what the global cartels want, so they can take control… they create chaos, already possessing the wealth that once belong sonly to nations. AIG was a rats’ nest, and nobody went to jail.
AIG was a mess, largely because of the CEO. It has absolutely nothing to do with Glass-Steagall, however. As I recall, magic solutions to complicated problems is one thing that is routinely criticized here. Well, some of them, anyway.
Dawn,
Which part of the Glass-Steagall act regulates credit default options or any other derivative instrument that an insurance company trades?
Sandy Weill — The man responsible for creating Citigroup — the world’s first financial supermarket — said Wednesday that the nation’s largest banks should be broken up in order to protect taxpayers.
http://money.cnn.com/2012/07/25/news/economy/sandy-weill-banks/
It would mark a clear bright line between traditional banking, speculative investments and insurance. Credit default swaps and the debts associated with them would not be recognized as legitimate transactions to be bailed out or supported in any way by the FDIC. It would require institutions that now have all of those things under one roof to break up. Citibank would have to go back to being a bank and not a group.
The legislation introduced would separate traditional banks that have savings and checking accounts and are insured by the Federal Deposit Insurance Corporation from riskier financial institutions that offer services such as investment banking, insurance, swaps dealing, and hedge fund and private equity activities. This bill would clarify regulatory interpretations of banking law provisions that undermined the protections under the original Glass-Steagall and would make “Too Big to Fail” institutions smaller and safer, minimizing the likelihood of a government bailout.
If Sandy is calling for the break up of Citigroup which he created, I would think everyone would jump on board at this point.
To all intellectual readers and writers:
I have read a lot of discussions, analysis, and sources of social troubles. Please come up with some simple solutions that show all basic steps in procedure that could at least lead us to eliminate social problem within certain time.
Time and money is the catch 22. Regardless of how rich, powerful, and smart one person, one family, one corporate, or one political party can be, yet this kind of power will definitely be less than the “educated/cultivated” people power.
Greed creates scoundrel to cut short and to screw up public for personal gain. Therefore, Public Education System needs to reinforce honesty, self-discipline, integrity, and being considerate. As a result, whenever Public Education System imposes threat, fear, stress on educators and students, there must relate to greed. Yes, there will be a consequence in creating scoundrel who will take advantage from public goods for personal gain.
For this sole reason, all educators must relentlessly unite in order to preserve Public Education System where students can fulfill their potential in learning, and where educators can fulfill their creativity in teaching, cultivating future leaders and citizens with honesty, self-discipline, integrity, and being considerate.
Without music, sport, arts and classic literature, stem (science, technology, engineering, and math) will produce robot workers, not civilized people. The best example of robot is Bill Gates, Arnold Duncan, and Union leaders GAGAs who cannot articulate coherently without their “political ADVISERS” from the darkest side.
Life is very simple to people who have their conviction in humanity. People who love to beat around the bush, and intentionally misuse or misinterpret all sounding words, always make life complicated. Their intentional abuse of sounding words (without examples and consequences) ONLY misleads public working class, and inexperienced YOUNG and IDEALISTIC educators, such as rigorous level, common core, race to the top, No child left behind.
People are generally made of body, mind and spirit. What is rigorous level that applies from handicap to world class athlete; from uneducated poor immigrant to snobbish PhD; from devil to God? Isn’t our common core about humanity: love, hope, creativity and inner peace? Have people seen or experienced that feet (labourers) can do the thinking like brain (politicians or religious leaders) in order to race to the top? Last but not least, have people acknowledged that all children from the same biological parents will achieve the same Status Quo like Doctor or scientists as in no child left behind?
People, please wake up and smell coffee! Back2basic
To all intellectual readers and writers:
I have read a lot of discussions, analysis, and sources of social troubles. Please come up with some simple solutions that show all basic steps in procedure that could at least lead us to eliminate social problem within certain time.
Time and money is the catch 22. Regardless of how rich, powerful, and smart one person, one family, one corporate, or one political party can be, yet this kind of power will definitely be less than the “educated/cultivated” people power.
Greed creates scoundrel to cut short and to screw up public for personal gain. Therefore, Public Education System needs to reinforce honesty, self-discipline, integrity, and being considerate. As a result, whenever Public Education System imposes threat, fear, stress on educators and students, there must relate to greed. Yes, there will be a consequence in creating scoundrel who will take advantage from public goods for personal gain.
For this sole reason, all educators must relentlessly unite in order to preserve Public Education System where students can fulfill their potential in learning, and where educators can fulfill their creativity in teaching, cultivating future leaders and citizens with honesty, self-discipline, integrity, and being considerate.
Without music, sport, arts and classic literature, stem (science, technology, engineering, and math) will produce robot workers, not civilized people. The best example of robot is Bill Gates, Arnold Duncan, and Union leaders GAGAs who cannot articulate coherently without their “political ADVISERS” from the darkest side.
Life is very simple to people who have their conviction in humanity. People who love to beat around the bush, and intentionally misuse or misinterpret all sounding words, always make life complicated. Their intentional abuse of sounding words (without examples and consequences) ONLY misleads public working class, and inexperienced YOUNG and IDEALISTIC educators, such as rigorous level, common core, race to the top, No child left behind.
People are generally made of body, mind and spirit. What is rigorous level that applies from handicap to world class athlete; from uneducated poor immigrant to snobbish PhD; from devil to God? Isn’t our common core about humanity: love, hope, creativity and inner peace? Have people seen or experienced that feet (labourers) can do the thinking like brain (politicians or religious leaders) in order to race to the top? Last but not least, have people acknowledged that all children from the same biological parents will achieve the same Status Quo like Doctor or scientists as in no child left behind?
People, please wake up and smell coffee! Back2basic
On Thursday, September 4th, fast food workers across the nation are going on strike for better pay.
9/4/2014: STAND WITH STRIKING WORKERS. SHARE THIS NOW
http://strikefastfood.org/