“Clinton Must Address Income Inequality In 2016”: Hillary Needs A Set Of Policies That Go Beyond Raising The Minimum Wage
Poor Hillary Clinton. She’s rich. And that’s a problem for her presidential campaign.
Even as the economy finally mounts an apparently sustained recovery, income inequality remains a primary worry for American voters. According to a poll by the Pew Research Center last November, 78 percent saw the gap between the haves and the have-nots as a big problem.
Since the 1970s, wages have been stagnating for average workers, who have been buffeted by the crosswinds of globalization and the technological revolution. Factories have fled to cheaper lands. Jobs that were once commonplace — such as those of bank tellers and grocery store clerks — have been lost to technological innovations: ATMs and digital scanners. Meanwhile, the economic gains have accumulated in the bank accounts of a wealthy few.
Clinton — who shares with her husband, former president Bill Clinton, an estimated net worth of more than $20 million — is definitely among those haves. That means the optics of her lifestyle are considerably different from those of Barack and Michelle Obama when he sought the White House: They had barely paid off their student debt.
But appearances aren’t the biggest problem for the former secretary of state. Plenty of rich folk have won the White House in the past; wealth is clearly no barrier.
The far bigger problem for her is that she is not easily associated with the battle to lift up the 99 percent, unlike, say, Sen. Elizabeth Warren (D-MA). If Warren runs for the presidency, as many observers assume she will, Clinton needs to quickly come up with a viable plan to restore America’s dwindling middle class. That ought to be the centerpiece of her campaign.
For that matter, her rivals, especially among the Republicans, need viable proposals to restore the middle class, too. (Warren has said she will not run, but Sen. Bernie Sanders of Vermont, a self-described socialist, is considering a run for the Democratic nomination. He is a longtime advocate for average workers.)
Mitt Romney’s greatest weakness during his 2012 presidential campaign wasn’t his wealth, which, at an estimated $250 million, dwarfs that of the Clintons. His Achilles’ heel was his clear disdain for those who struggle to make ends meet, evidenced in his infamous remarks about the “47 percent.”
He was also weakened by his association with Bain Capital, a private equity firm that, among other things, bought up companies and sometimes streamlined their workforces. In an age of widespread economic anxiety, Obama was able to paint Romney as a callous — and clueless — plutocrat.
Clinton can’t be so easily characterized as an out-of-touch member of the 1 percent; her political positions fit comfortably within the moderate-to-liberal wing of the Democratic Party. Still, she is associated with the centrist economic policies of her husband, who worked hard during his presidency to cozy up to Wall Street and change the image of the Democratic Party, which was believed to be hostile to the business elite. Indeed, President Clinton helped to loosen some of the regulations that had held Wall Street in check.
The results of that loosening are still wreaking havoc on households across the country. The big banks, reckless and greedy, used their new freedom to crash the economy. And, unfortunately, many of the moguls responsible for the mess were unscathed by the wreckage.
As if that were not galling enough, the taxpayers bailed out Wall Street, even as millions of average folks lost their homes to foreclosure. The bailout may have been necessary, but it’s still infuriating. Clinton needs to demonstrate that she understands the anger still loose in the land — among liberal and conservative voters alike.
She needs to be able to answer questions about the high-dollar fees that she has collected from exclusive audiences and about the campaign contributions she has accepted from corporate interests, especially Wall Street types. But more than that, she needs a set of policies that go beyond raising the minimum wage.
She may have to risk alienating some of her big-money donors if she is to assist the shrinking middle class. If she has the courage to do that, Clinton will be hard to beat.
By: Cynthia Tucker, The National Memo, February 14, 2015
“McConnell Is Blowing It…Big Time”: McConnell Has Forgotten What Is At The Heart Of The Strategy He Invented
My take on Sen. Mitch McConnell has always been that he is not so interested in issues/policies as he is in the power game of politics. That approach was never on display more clearly than when he said that his number one goal was to ensure that Obama was a one-term president – in the midst of the worst recession since the Great Depression.
Given that, I will credit McConnell with being a good strategist. No matter how bad his total obstructionist tactics were for the country, they were a fairly effective power play. That’s why it’s been so fascinating to watch him fail so miserably lately.
As I wrote at the beginning of this Republican-controlled Congress, McConnell’s initial strategy was to paint President Obama as the new obstructionist by forcing him to veto legislation that would otherwise undo his agenda. But that is getting all gummed up by either the Democrats in the Senate standing strong or the lunatic caucus in his party making compromise impossible. The Majority Leader finds himself between a rock and a hard place and can’t seem to get much of anything to the President’s desk.
So instead of being able to label President Obama as the obstructionist, McConnell is now having to resort to using that one on the Democrats in Congress.
Senate Majority Leader Mitch McConnell (R-Ky.) accused Democrats Wednesday of knee-jerk obstructionist tactics, flipping a script that Democrats used many times in recent years.
McConnell criticized Democrats for filibustering a motion to debate a House-passed bill funding the Department of Homeland Security that contained language blocking President Obama’s executive actions on immigration.
Aside from the irony of that coming from the great wielder of obstructionism, it seems that McConnell has forgotten what is at the heart of the strategy he invented. Here’s former Republican Congressional staffer Mike Lofgren’s explanation.
A couple of years ago, a Republican committee staff director told me candidly (and proudly) what the method was to all this obstruction and disruption. Should Republicans succeed in obstructing the Senate from doing its job, it would further lower Congress’s generic favorability rating among the American people…
There are tens of millions of low-information voters who hardly know which party controls which branch of government, let alone which party is pursuing a particular legislative tactic. These voters’ confusion over who did what allows them to form the conclusion that “they are all crooks,” and that “government is no good,” further leading them to think, “a plague on both your houses” and “the parties are like two kids in a school yard.”
Those “low-information voters” don’t tend to know which party is pursuing which legislative tactic, but they sure do know which party holds the presidency. And they’ve likely heard about the “shellacking” the President’s party took in the 2014 midterms that gave control of Congress to the opposing party.
So the spectacle voters are witnessing right now is a Democratic President who is busy getting things done while Congress is gridlocked and McConnell whines that Democrats in the Senate won’t let him get anything done.
In other words, you’re blowing it McConnell…big time!
By: Nancy LeTourneau, Political Animal Blog, The Washington Monthly, February 14, 2015
“Pre-Racial Society”: 5 Policies That Republicans Loved (Until Obama Did, Too)
On Friday, Texas senator and likely 2016 presidential candidate Ted Cruz (R-TX) took some heat when Mother Jones reported that the right-wing Republican once offered a resolute defense of the 2009 stimulus law that he now derides as an archetypal government overreach. As a private-practice lawyer representing the Texas Retired Teachers Association, Cruz declared that stimulus money “will directly impact the [Texas] economy…and will directly further the greater purpose of economic recovery for America.” But today, he considers the law to be a failure.
Cruz is far from the first Republican to change his mind on an issue championed by the White House. Here are five policies that high-profile Republicans loved — until President Obama came along.
Obamacare
Since before it even became law, Republicans have decried the Affordable Care Act as a job-killing, freedom-crushing abomination. But the right wasn’t always so vehemently opposed to the law’s underlying ideas, like the health care exchanges, the individual mandate, and Medicaid expansion. In fact, they were developed by the conservative Heritage Foundation think tank, and favored by many Republican politicians.
As recently as 2008, former Massachusetts governor Mitt Romney considered his health care law — which was largely the inspiration for Obama’s — to be “the ultimate conservative plan,” and a “model” for the rest of the nation. But with Obama in the White House, that didn’t last.
Common Core
Today, Republicans widely agree that the Common Core education standards are a hostile, oppressive government takeover of the education system. Louisiana governor Bobby Jindal has compared Common Core to “centralized planning” in the Soviet Union. Senator Mike Lee (R-UT) derides it as “the Obamacare of education.” Senator Cruz has vowed to repeal it (even though it’s not a law passed by Congress). State Representative Charles Van Zant (R-FL) warns that it will “attract every one of your children to become as homosexual as they possibly can.”
But before Republicans began associating the new educational guidelines with the Obama administration (and, by extension, gay communism), they were quite fond of them. After all, Common Core takes after George W. Bush’s education policy, was introduced by the bipartisan National Governors Association, and at one point was adopted by 46 states. Even the aforementioned Jindal, now a leader of the anti-Common Core push, once defended it by promising that his state would not “move one inch off more rigorous and higher standards for our kids.”
Cap And Trade
Before Barack Obama became president, public officials broadly agreed that climate change was a real problem that required a serious policy response. Newt Gingrich even sat on a couch with Nancy Pelosi to talk about it( http://youtu.be/qi6n_-wB154).
Many Republicans agreed that cap and trade, which was developed by a “strange alliance of free-market Republicans and renegade environmentalists,” was the solution that combined the most economic and environmental benefits. In fact, almost every Republican candidate in 2012 backed the plan — until they decided to run against Obama, at which point they reflexively turned against it.
Today, carbon limits remain unpopular on the right, where they are falsely considered to be a job-killing abomination.
Deficit Spending
When President Obama released his 2016 budget plan, congressional Republicans reacted as they often do to his proposals: by attacking it for failing to close the budget deficit.
“While Washington is still racking up debt, this budget doesn’t even try to balance the books,” House Majority Leader Kevin McCarthy complained. “In fact, despite the best efforts of Republicans over the past four years to rein in spending and cut the deficit, this budget would erase all those gains over the 10-year budget horizon by increasing the deficit and adding even more to the debt. Our children and grandchildren can’t afford such recklessness.”
But back during the Bush administration, McCarthy and his fellow Republicans didn’t seem to mind budgets that never balanced; that’s why they voted for deficit-busting plans like the Bush tax cuts or the Iraq War, among many others.
Indeed, the Republican Party’s pre-Obama attitude towards balancing the budget can be best summed up by former vice president Dick Cheney: “Deficits don’t matter.” There’s a pretty good case that he was right — but don’t expect any Republican to make the argument while Obama is in the White House.
Immigration Reform
For years, many Republicans have agreed that the United States desperately needs to reform its immigration laws. In 2013, the Senate even passed a rare bipartisan bill which would strengthen border security and establish a pathway to citizenship for the millions of undocumented immigrants who are already in the country. In other words, it closely mirrored President Obama’s goals. And that became a major problem for many Republicans. For example, Senate Majority Leader Mitch McConnell (R-KY) voted against the 2013 bill despite having supported similar measures in 1986 and 2006.
But no Republican illustrates President Obama’s effect on the GOP better than Senator Marco Rubio (R-FL). Rubio helped craft the 2013 bill in the first place, arguing that the issue is a question of human rights. But a year later, he had abandoned his plans — because “the Obama administration has ‘undermined’ negotiations by not defunding his signature health care law.”
By: Henry Decker, The National Memo, February 13, 2015
“Nickel And Dimed”: The Very Real Scourge Of Wage Theft
Last week, the owner of a chain of Papa John’s was ordered to pay $800,000 in back pay to workers he’d shortchanged by rounding down to the nearest hour on their time cards and failing to pay overtime properly. “I didn’t realize if you work 10 hours per day, you are supposed to pay overtime for two hours,” the owner, Emmanuel Onuaguluchi, told the New York Post.
A couple hours of overtime there may not seem like a lot of money, but those amounts could mean everything to workers struggling to get by on minimum wage and, as the judgment shows, it all adds up over the years. This latest judgment is part of a big push by New York’s attorney general, Eric Schneiderman, who has also sued local McDonald’s and Domino’s franchises.
Cases of wage theft—or, at least, the cases officials are pursuing—have been up in California and across the country, too, according to The New York Times. Business interests told the Times that politicians like Schneider are just pursuing these cases to curry favor with unions, but the unions aren’t really behind the legal actions.
If restaurants and other companies in the service industry—where workers are paid by the hour, have hours that change from week-to-week, and are especially vulnerable to wage theft—are complaining that the wage theft cases are coming from people who, in general, want to be paid more, they’re right. The fight for higher minimum wages across the country has highlighted the problems low-wage workers face in their workplaces, and wage theft is one of the most common ways they’re denied even the measly current minimum wage of $7.25 an hour.
Wage theft is old, but before now workers might have been too scared to complain or go to an attorney on their own. “I think one reason why it’s coming up more now is that it’s tied to a real organizing campaign where fast food workers are demanding and protesting,” says Tsedeye Gebreselassie, a senior staff attorney for the National Employment Law Project, which is not directly involved in any of these cases.
By law, companies have to pay their employees minimum wage, and overtime pay should kick in once an employee works past an eight-hour shift in a day. Five years ago, in a survey funded by the Russell Sage Foundation and conducted by researchers from the National Employment Law Project, UCLA, Cornell University, and the University of Illinois, Chicago, a quarter of low-wage employees reported they hadn’t been paid the minimum wage in the prior week, and three-quarters said they were denied overtime.
As someone who has spent the past three years reporting from low-income communities across the country and grew up in working-class family in a poor part of Arkansas, I hear stories of wage theft all the time. Onuaguluchi’s view about overtime is common—I’ve known people who have worked in fast-food restaurants and routinely pulled several double shifts in a week, but as long as their hours did not total more than 80 in a two-week pay period their bosses did not pay overtime.
I’ve also heard of bosses who don’t pay correctly, and paychecks come with hours missing. Those mistakes are harder for workers to figure out than you would think because they need to keep records on exactly when they worked and how many hours it was, and compare it to what their paychecks say when they arrive a week or two later. But at the end of the day, these cases are relatively easy to prove because records of time sheets will show how many hours each employee worked and whether they were paid properly. Rounding down, as Onuaguluchi did, would be evident.
Many stories about wage theft, though, offer more insidious examples that are harder to fight. I know of people who’ve had to run errands on behalf of their workplaces before they even show up for work, and are expected to arrive every morning with said errand completed. I know people who’ve had to clock out for breaks they can’t take. Sometimes, workers are expected to have a certain amount of work done before they clock in at the official start of their shifts, or are asked to or expected to finish a task once they’re already gone, according to their time sheets. It would be harder to tackle cases like that in court because these practices might not be codified or routine, but the basic idea is that bosses at companies like this don’t rank their employees’ time as valuable.
In fairness, the direct bosses like Onuaguluchi are often squeezed themselves. While three-quarters of these kinds of stores are owned by franchisees who own multiple units and are often making quite a profit, their profits rely on running their operations as cheaply as possible. The small-business man or woman who owns one or two might struggle to pay their employees properly, although I have little sympathy for those who break the law. That’s because franchise fees are expensive: even a franchise fee considered relatively affordable, like 7/11, takes $31,000 to start up. McDonald’s requires $45,000 and that the owners have $300,000 in cash or other funds available to them.
Companies like these also require other licensing fees to be paid, and sometimes franchisees even pay rent because the parent company owns the physical location of the store.
So, people like Schneiderman have promised to go after Papa John’s, and other big companies that franchise stores as well. What Papa John’s and their ilk say is that they’re not responsible for the ways their franchisees pay people. Yet they intensely manage their brands, which often includes monitoring time sheets that franchisees send in, quality control tests that could influence hiring and firing decisions, and other fine-grained aspects of their operations. Even more directly, attorneys could argue that these companies charge their franchisees so much in fees that they know, or should know, that the only way for them to make a profit is to shortchange their employees.
In July, the National Labor Relations Board ruled McDonald’s was a joint employer in a similar case, and that pay complaints could be made against them. If suits against the parent companies succeed, it might actually start to end the practice of robbing low-income workers of the little money they have. “At the end of the day, you want to recover the unpaid wages, but you also want to correct the behavior,” Gebreselassie says. “One of the best ways to do that is to reach to the corporate parent.”
By: Monica Potts, The Daily Beast, February 15, 2015
“Netanyahu Directly Challenges Official U.S. Policy”: Republicans Are Approaching A Very Dangerous Line On This One
Under the leadership of President Obama, the official United States position is to attempt to negotiate an agreement with Iran to stop their development of nuclear weapons. We are currently engaged in those negotiations in concert with the other four permanent members of the UN Security Council (Russia, China, United Kingdom, and France) plus Germany.
Prime Minister Bibi Netanyahu recently said this at his weekly Cabinet Meeting:
We will do everything and will take any action to foil this bad and dangerous agreement.
As the elected leader of Israel, it is his right to take that position. But it puts him at direct odds with official U.S. policy and members of the Security Council. In the above statement, he is being perfectly clear about that – regardless of the outcome of the negotiations.
It is in light of that position that we should view, not just the recent Republican invitation for Netanyahu to address the members of Congress, but this statement from Sen. John Cornyn.
Senate Republicans on Thursday moved to officially welcome Israeli Prime Minister Benjamin Netanyahu to the U.S. ahead of his planned speech to Congress next month, the latest development in a saga that has roiled politics in both countries.
Almost all GOP senators were listed as co-sponsors of a resolution by Sen. John Cornyn (R., Texas) saying the Senate “eagerly awaits the address of Prime Minister Netanyahu before a joint session of the United States Congress” and reaffirms the U.S. commitment to standby Israel in “times of uncertainty.”
“During this time of such great instability and danger in the Middle East, the United States should be unequivocal about our commitment to one of our closest and most important allies,” Mr. Cornyn said in a statement.
When the Prime Minister of Israel publicly promises to do anything he can to foil the official policy of the United States, it is our duty to be equivocal in our support of him. Republicans are approaching a very dangerous line on this one.
By: Nancy LeTourneau, Political Animal Blog, The Washington Monthly, February 14, 2015
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