Archive for category Economic Exploitation
Via Think Progress:
This week, the Connecticut General Assembly passed a bill to raise the state’s minimum wage to $10.10 an hour by 2017, and Gov. Dannel Malloy (D) signed it into law yesterday.
If implemented nationally, a $10.10 minimum wage would put it in line with where it would be if it had kept up with inflation since the 1960s, although far behind the increases in workers’ productivity since then. It would also lift nearly 5 million people out of poverty, close the gender wage gap by 5 percent, and reduce spending on public programs by tens of billions of dollars. There is also real world and academic evidence to suggest that it won’t hurt job growth and could benefit the economy.
Given that the November midterm elections (like 2010) are expected to be dominated by Faux-News-watching senior citizens, it really looks like President Obama will be the only president since FDR whose administration did not enact any increase in the federal minimum wage.
America needs a raise!
After-tax profits for American corporations hit another record high last year, rising to $1.68 trillion. American workers have experienced a “lost decade” of wage growth, as their pay stayed flat or declined between 2000 and 2012, despite a 25 percent bump in productivity.
As usual, Robert Reich says it better than I could (emphasis added).
“Paid-what-you’re-worth” is a dangerous myth.
…The real difference is the GM worker a half-century ago had a strong union behind him that summoned the collective bargaining power of all autoworkers to get a substantial share of company revenues for its members. And because more than a third of workers across America belonged to a labor union, the bargains those unions struck with employers raised the wages and benefits of non-unionized workers as well. Non-union firms knew they’d be unionized if they didn’t come close to matching the union contracts.
Today’s Walmart workers don’t have a union to negotiate a better deal. They’re on their own. And because fewer than 7 percent of today’s private-sector workers are unionized, non-union employers across America don’t have to match union contracts. This puts unionized firms at a competitive disadvantage. The result has been a race to the bottom.
…The reason Wall Street bankers got fat paychecks plus a total of $26.7 billion in bonuses last year wasn’t because they worked so much harder or were so much more clever or insightful than most other Americans. They cleaned up because they happen to work in institutions — big Wall Street banks — that hold a privileged place in the American political economy.
…The “paid-what-you’re-worth” argument is fundamentally misleading because it ignores power, overlooks institutions, and disregards politics. As such, it lures the unsuspecting into thinking nothing whatever should be done to change what people are paid, because nothing can be done.
It’s not that working Americans are lazy/incompetent. Capitalists are greedy and powerful.
Conservative Myths About the Minimum Wage, Debunked
Contrary to conservative myths, raising the minimum wage would boost the economy, benefit all workers, and won’t hurt consumers.
While a major media news blackout provides cover, Congress is debating whether to give the president the authority to fast-track a massive free trade agreement, the secretly-negotiated Trans Pacific Partnership (TPP). Members of Congress haven’t even been able to read it even though corporate lobbyists have.
President Obama is at odds with Democrats in both houses of Congress concerning reauthorizing a procedure called the “trade promotion authority” (TPA), that would grant the White House power to submit free trade deals to Congress for an up-or-down vote without amendments. Senate Majority Leader Harry Reid is strongly against it.
House Minority Leader Nancy Pelosi has now publicly opposed giving President Obama fast track authority.
“We need transparency. We need a seat at the table to understand what they believe they are doing, so we can make it better. And if we don’t make it better, then we will not accept a path that is a job loser.”
TPP is part of the plan for global corporatocracy run by and for the 1 Percent. Unelected lobbyists and trade representatives are at the table, while representatives from the public at large and businesses other than huge monopolies, are conspicuously absent. From what little we know of the agreement, it would violate the U.S. Constitution, weaken environmental protections, and lead to more job losses, erosion of wages, and worsening inequality. TPP also threatens freedom of speech on the Internet because it would extend restrictive intellectual property laws and rewrite international rules on enforcement.
A couple key passages:
The US elites, similarly, took the smooth functioning of the political-economic system for granted. The only problem, as they saw it, was that they weren’t being adequately compensated for their efforts. Feelings of dissatisfaction ran high during the Bear Market of 1973—82, when capital returns took a particular beating. The high inflation of that decade ate into inherited wealth. A fortune of $2 billion in 1982 was a third smaller, when expressed in inflation-adjusted dollars, than $1 billion in 1962, and only a sixth of $1 billion in 1912. All these factors contributed to the reversal of the late 1970s.
Three years ago I published a short article in the science journal Nature. I pointed out that several leading indicators of political instability look set to peak around 2020. In other words, we are rapidly approaching a historical cusp, at which the US will be particularly vulnerable to violent upheaval. This prediction is not a ‘prophecy’. I don’t believe that disaster is pre-ordained, no matter what we do. On the contrary, if we understand the causes, we have a chance to prevent it from happening. But the first thing we will have to do is reverse the trend of ever-growing inequality.
And finally this one:
How does growing economic inequality lead to political instability? Partly this correlation reflects a direct, causal connection. High inequality is corrosive of social cooperation and willingness to compromise, and waning cooperation means more discord and political infighting. Perhaps more important, economic inequality is also a symptom of deeper social changes, which have gone largely unnoticed.
The following retailers have killed Thanksgiving for their employees and families. Don’t let them kill your holiday, too.
- Old Navy
- Office Max
- Best Buy
- Toys R Us
- J.C. Penney
The good news is that Costco, Nordstrom, REI, Burlington Coat Factory, and other companies are refusing to ruin Thanksgiving.
And don’t forget: Friday, November 29 is “Black Friday,” aka Buy Nothing Day. A good day to take a day off from shopping, or visit a locally-owned business. Feel free to laugh at those idiots freezing on line in a parking lot to get an XBox.
Today is the anniversary of NOT raising the minimum wage. Again. Four years ago, the federal minimum wage topped out at $7.25 an hour as a result of a law signed by President George W. Bush. A full-time worker earning the minimum wage now pulls in a salary of about $15,000 per year, far below a living wage. If Congress doesn’t send President Obama legislation to sign by the end of his second term, he will be the first president since Ronald Reagan who didn’t raise the minimum wage at all.
Via Raw Story:
In a letter (PDF) sent to Federal Reserve Chairman Ben Bernanke, Attorney General Eric Holder and SEC Chair Mary Jo White on Tuesday, Sen. Elizabeth Warren (D-MA) demanded to know why the government keeps accepting financial settlements from criminal bankers when they could instead be taken to trial, convicted and locked up.
Senator Warren wrote (emphasis added):
The consequence can be insufficient compensation to those who are harmed by illegal activity and inadequate deterrence of future violations. If large financial institutions can break the law and accumulate millions in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law.
Tax time is coming in less than a month. Unless you’re with the 1 Percent, it will cost you. Paul Buchheit on AlterNet:
Corporations have simply stopped paying their taxes, perhaps using the 2008 recession as an excuse to plead hardship, but then never restoring their tax obligations when business got better. The facts are indisputable. For over 20 years, from 1987 to 2008, corporations paid an average of 22.5% in federal taxes. Since the recession, this has dropped to 10% — even though their profits have doubled in less than ten years.
We’re in “a golden age for corporate profits,” according to the New York Times. But not a golden age of job creation. In fact, some of the biggest and most profitable corporations are dodging taxes while cutting jobs. The list includes: General Electric, Boeing, Exxon Mobil, Verizon, Kraft Foods, Citigroup, Dow Chemical, IBM, Chevron, FedEx, Honeywell, Apple, Pfizer, Google, and Microsoft.
N.J. taxpayers protest corporate ‘dodgers’