Archives for category: Economy

In an article in Dissent magazine, four authors argue that the notion of America as a “post-racial” society is wrong. The public and politicians tend to blame blacks for the conditions in which they live, as though racism were a thing of the past and the doors of opportunity are wide open for all. Even the election of a black President has not wiped out historic disadvantages that a significant proportion of black Americans are born into.

Alan Aja, Daniel Bustillo, William Darity, Jr., and Darrick Hamilton lay out the facts of continuing racial disparity in employment, wealth, and self-employment to demonstrate that blacks continue to be severely disadvantaged.

The authors off two proposals to provide economic security to all Americans. One is a universal trust account, which would be larger for those who are needy. The other is a guaranteed federal job. Both are expensive yet considerably less than the cost of the economic stimulus plan, which saved the nation’s banks. Imagine: saving our society.

Paul Thomas here takes on some of the most sacred beliefs of U.S. culture. He argues that poverty is destiny, and that education is not the great equalizer. He says that wishing it were so does not make it so.

He writes:

“In the U.S. both poverty and affluence are destiny, and those who shudder at that reality are confusing verbs: Yes, poverty should not be destiny, but false claims will never allow us to achieve that ideal.”

Thomas quotes Matt Bruenig, who wrote:

“One convenient way to describe what’s going on is that rich kids are more likely to get a better education, which translates into being richer and wealthier as adults. It is certainly the case that richer kids are more likely to get a college degree, and it is certainly the case that getting a college degree leaves you much better off on average than not getting one. But this does not explain the full picture of social immobility. Take a look at this super-complicated chart, which I will describe below….

“So, you are 2.5x more likely to be a rich adult if you were born rich and never bothered to go to college than if you were born poor and, against all odds, went to college and graduated. The disparity in the outcomes of rich and poor kids persists, not only when you control for college attainment, but even when you compare non-degreed rich kids to degreed poor kids!

“Therefore, the answer to the question in the title is that you are better off being born rich regardless of whether you go to college than being born poor and getting a college degree.”

Thomas says that our popular myths have a dark side. They allow us to blame the poor for being poor, for not working hard enough, for lacking “grit.”

We do not live in a meritocracy, saysThomas, but in a society where race and class determine most people’s destiny.

He does not wish to be considered a fatalist. Instead, he says, we must “Commit to social and education policy grounded in equity, and not in competition or market forces.” So long as we believe that it is up to each individual to rise or fall on their own, without regard to large social and economic forces, nothing will change.

Mel Brooks memorably said, “It’s good to be the King.”

In these times, it is good to be rich enough to buy public policy to protect your interests and stay rich.

New York has such a group.

Yes, they can.

The Progressive.com managed to get a copy of ALEC’s agenda for its 41st annual meeting in Dallas.

ALEC wants to eviscerate Medicaid, support fracking, and expand charter schools in hopes of destroying America’s great public school system.

All for the corporations and the 1%, nothing for the people.

They are shameless.

Unbelievable. Microsoft lays off 18,000 workers while pressing Congress to expand the number of visas for engineers, mathematicians, scientists, and other workers. Bill Gates, Warren Buffett, and casino operator Sheldon Adelson wrote an article calling for Congressional action to increase H-1B visas.
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Senator Jeff Sessions responded with rage, directed mainly at Gates and at the the tech industry as a whole. He said: “”What did we see in the newspaper today?” said Sessions, “News from Microsoft. Was it that they are having to raise wages to try to get enough good, quality engineers to do the work? Are they expanding or are they hiring? No, that is not what the news was, unfortunately. Not at all.”

Sessions said:

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“What is the situation today for American graduates of STEM degrees and technology degrees?” said Session. “Do we have enough? And do we need to have people come to our country to take those jobs? Or, indeed, do we not have a shortage of workers, and do we have difficulty of people finding jobs?”

“Sessions recently sponsored a forum that assembled some of the leading academic critics of the H-1B program. The group assessed the consequences of hiking the H-1B cap from 85,000 to 180,000, as proposed in the Senate’s comprehensive immigration bill.

“They warned of increasing age discrimination since most of these foreign workers are young, as well as make it harder for U.S. STEM graduates to find work. A cap hike could hurt wages as well. Critics say schools now produce many more STEM graduates than there are jobs for them.

“Microsoft wasn’t the only company to get in Sessions’ crosshairs. He cited a letter by more than 100 large corporations sent to Congress late last year, urging immigration reform. The signees included many companies, such as Hewlett-Packard and Cisco, which have had recent layoffs.

“And just as it is not always true what is good for General Motors is good for America, likewise, what may be good for Mr. Adelson and Mr. Microsoft and Mr. Buffett is not always in accord with what is good for the American people. I know that. They are free to express their opinion, but I am going to push back,” said Sessions.

*****please note

Lisa Graves was one of the creators of the website ALECExposed. She has followed the money, and she here describes a dangerous threat to American democracy by the billionaire Koch brothers, ALEC, and others who seek control by the super-rich. They want to bust unions and privatize schools. Graves says that progressives must stand together. I agree. That’s why I grow frustrated when union members attack their unions. Of course, they should fight to win democratic control of their unions. But when they begin hurling insults and invective at their allies, they do the work of their common foe.

Graves writes:

“Two of the richest men in the entire world are plotting to dominate our elections this fall, from congressional races to school board seats.

“Their scheming to shove America further to the far right should be a serious wake-up call for anyone who cares about our nation’s soul.

“As Charles and David Koch promised their billionaire buddies, they’ve assessed how the quarter billion dollars they helped raise and spread across the country failed spectacularly in the 2012 elections. And, they’ve made adjustments to their battle plans to win more this time…..

“If unions and their leaders want to stand up to the Koch machine – which has sought to gut union power for decades – I say right on. Nurses, teachers, and factory workers ought to have a chance to negotiate with power for better wages and working conditions than each could negotiate with their powerful employer alone.

“Thank goodness they’ve all stood up to the Kochs’ neo-Bircher worldview, in their own ways.

“Thank goodness they understand that civil society — indeed, our very democracy — is what’s at stake.

“I stand against the cult of greed peddled by the Kochs.

“I’m utterly opposed to the Koch-y brand of Ayn Rand’s dystopian propaganda and the updated version of this kind of every-man-for-himself economic Darwinism peddled by Rand Paul in blue jeans. I don’t want America’s great dream for our people to be shrunk into a members’ only club, letting the richest few rule with the less lucky stuck as servants struggling to survive.

“A civil society — a true democracy – recognizes that investing in our shared future makes our nation stronger.

“A healthy democracy fully funds our public institutions that serve all of the American people and helps those living on the brink, as part of our social contract in recognition of our common humanity and the fact that we all face illness and aging out of work….

“It’s about having truly public schools that provide our children with empowered teachers trained in the art and science of teaching rather than inexperienced and un-certified stand-ins trying to do it on the cheap so a corporation can pay better dividends to stock speculators.

“The right-wing alternative to truly public schools that the Koch deregulation machine has helped spawn is “charter” schools paid for with our tax dollars.

“We’ve seen too many charters run by fly-by-night operators feeding kids religious gruel or designed by corporations to enrich Wall Street speculators through cutting what’s spent on kids, teachers, and classrooms but a healthy budget for slick ads blanketing the airwaves and underwritten by taxpayers.

“Charles and David Koch have spent decades trying to get rid of “government” schools, as touted in David’s run for the White House in 1980. That’s why it’s now practically a litmus test for Republican presidential candidates to list the Department of Education among the government agencies they are in a race to eliminate.

“We need all hands on deck to stop them.

“That’s one of the reasons why attacks on the DA or union leaders like Randi Weingarten as a false equivalent to the Koch cabal are so misplaced. They are not equivalent because the goals of the Kochs matter and investing in an alternative to the Kochs’ agenda matters, a lot…..

“But, as the person who launched ALECexposed with my team in Madison, I can tell you that Weingarten has been totally stalwart in standing up to ALEC and its anti-public education agenda, which is fueled by the Koch family fortune and other rich families — along with corporations that profit from privatizing public schools, of course.

“The American Federation of Teachers has been rock solid in the fight against ALEC, consistently devoting staff time week in and week out for three years to expose ALEC, due to her personal commitment. The ongoing public campaign on ALEC would not have had the success it has had without AFT’s work and her leadership, and without the work of many devoted colleagues across the country, including the National Education Association and other organizations, bloggers, and concerned citizens nationwide…..

“I know we need a more progressive America.

“And progressives need to get better at using their power to persuade each other and to win better policies.

“But attacking genuine progressives for banding together to take on the Kochs or for not being pure enough is foolish sport. And the right loves it when progressives fight. It makes their effort to tear down the left so much easier.

“So, let’s get real.

“Because there’s a real-world war going on to kill our public schools, outsource our public institutions to private companies not accountable to us, and destroy key government constraints on corporate power…..”

The fabulously wealthy Koch brothers have developed a plan to teach their libertarian ideas to high school students. It is sort of like tobacco companies teaching students that smoking is good for you.

They have used their vast resources to identify like-minded teachers, to train them and to supply course materials. Their program, called Young Entrepreneurs, is growing in Kansas, Missouri, and other states.

What do they teach? “Lesson plans and class materials obtained by The Huffington Post make the course’s message clear: The minimum wage hurts workers and slows economic growth. Low taxes and less regulation allow people to prosper. Public assistance harms the poor. Government, in short, is the enemy of liberty.”

The course didn’t take hold at an elite private school but public schools seem eager for the support and resources.

Another way to sum it up: Greed is good. Look out only for yourself.

This reader commented on a post called “Is the Charter Movement Imploding?” That post reviewed some recent egregious charter school scandals.

He wrote:

“One purpose of school privatization is to bring about “deregulation” of the education system. wherever and whenever deregulation has been permitted to proceed, the result, for public goods and services, has been disastrous. The financial collapse of 2008 was the direct outcome of deregulation. Deregulation was supposed to lead to greater efficiency in the provision of housing and in financial services. Instead it wiped out trillions in individual and social wealth; it nearly destroyed the American economy; and it created a deep, deep well of misery and suffering. The high priests of neoliberalism who called for deregulation should have been made to eat their hats. Their bogus theorizing did not lead to the paradise they promised; instead it put many people in hell. All deregulation of finance achieved was the enrichment of predators and parasites, who preyed on the vulnerable and the desperate by scams, deception and outright criminal acts.

“The deregulation of public education, by leave of privatization, is creating similar opportunities for the unscrupulous and untrustworthy. Because there are no hard and fast criteria for opening a charter school (except a religious commitment to corporate education reform), it’s obvious that this wide open “wild west” frontier where public money is there for the taking was bound to attract venal and criminal types, who have no business at all being around children. Connecticut is notable, because the gap between rich and poor communities is extremely stark, and the State is under legal pressure to make school funding more equitable. But the powers that be in Connecticut are closely connected to the Wall St Hedge Fund Crowd (some of the very people who brought about the 2008 economic collapse), and it is this power which is strongly pushing school privatization. The Hedge Fund Predators don’t care who gets a charter school, just so long as charter schools are created. And the Democratic Governor Malloy is all too willing to oblige his patrons. Malloy is a low character with high ambitions. He would sell his mother to advance his career. But seeing as no one is interested in buying his mother, Malloy has decided to sell out minority children in Connecticut’s poorest cities.

“Deregulation of financial services led to the destruction of many poor neighborhoods, as people were given mortgages they could not manage. The mortgages were given because they were ultimately insured by the Federal government. Private investors got stinking rich by fraud and deception. Homeowners got foreclosed. And the general public picked up the tab for unethical and criminal profiteering. As the Charter school movement continues to grow, you can see the same sorry pattern. Charters are given to crooks, incompetents and charlatans. Some of them make out like bandits. Children in the charters are often given a dreadful education. Neighborhood schools are ruined. Profiteering is at the public expense, as hardly any charter school could survive without public funding. I would not say that the Charter school movement is imploding, but this prospect can’t be ruled out in the future, as deregulation is just another name for ongoing and deepening chaos.”

According to a guest post for EduShyster by high school teacher Keith Benson, The taxpayers of Camden, New Jersey, will spend $82 million to build a practice facility for the Philadelphia 76ers at the same time it is laying off hundreds of school teachers. The new facility will provide 50 low-wage seasonal jobs. This clarifies the priorities of the political leaders of Camden and New Jersey. Education last. Students last.

As Benson writes, “At every turn, the mayor and the *leadership* of Camden start with the assumption that the solution to our city’s problems lies in the hands of outside others. Hence our city leaders are now placing their hopes in corporate-led charter school chains, like Mastery Charter Schools, UnCommon Schools and KIPP (please YouTube some clips of their respective pedagogical techniques), to be staffed with mostly white Teach for America corps members who will only temporarily fill the role of teacher to children desperately needing quality educational leaders and stability. This despite the fact our public schools serve a citizenry mired in generational and concentrated poverty (due largely to historic discriminatory housing and employment policies and inherent structural inequality) that greatly affects students’ scholastic outcomes.”

And so it goes.

Regular reader and commenter Lloyd Lofthouse explains why we need unions:

Let me add something one of my uncles told me. He was 96 when he died about ten years ago.

As a young man, he remembered going to the railroad yard hoping to get work to earn enough to buy food. There was no union then. He said hundreds got up early every morning to show up. The manager in charge of loading and unloading the trains would stand in the opening of one of the box cars and throw ten, fifteen or twenty chips over the heads of the crowd of hopeful workers. Those who caught the chips and kept them got to work sixteen hours that day for about 25 cents.

The next day was a repeat.

This was in the United States during the Great Depression.

Without labor unions working as a collective voice for the workforce, most of the rich and famous will make sure the world we live in returns to that time. Study history as Back2basic suggests and you will learn from it. Mankind doesn’t change and power corrupts and absolute power corrupts absolutely. History repeats itself if we allow it.

I read an article recently that compared business methods and this article said that about 4 out of every 5 business are run like dictatorships and the workers are not treated with respect or paid a fair wage with benefits.

Businesses like Costco that are not unionized, Wholefoods, and Trader Joe’s that treat their workers with respect and pays them a living wage with benefits are the exception. Costco has even been criticized by Wall Street because of how much they pay their employees (like $12 or $14 an hour instead of the minimum wage). The stock holders grumble that if Costco paid their employees less, the stock holders would make more from the stocks. If you doubt this, Google it. Costco’s CEO basically told Wall Street to “F” off without using the “F” word. Companies like Costco have a high retention rate compared to corporations like Wall-Mart.

Why is it that some of the 1% who have the most money have spent HUGE fortunes on propaganda and lobbyists in state capitals and Washington DC for decades to destroy the labor unions? What do they have to gain?

Negative opinions of labor unions come from that propaganda and if you believe them and you are not a billionaire or millionaire, what does that say about you?

The answer may be found in this Abraham Lincoln quote: “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.”

Who is greedy—the Koch brothers who are worth more than one hundred billion dollars (combined) and are willing to pollute the air, water and soil to increase their wealth or the union worker who is paid maybe $25 an hour with a retirement and health plan that cuts into the profits and wealth of people like Bill Gates, the Walton family or Eli Broad?

Without labor unions, the worker has no voice. The only voice heard will be from someone like Bill Gates.