“Subtle Forms Of Discrimination”: Without Economic And Educational Justice, There Is No Racial Justice
On a hot, dusty June day fifty years ago, during what became known as Freedom Summer, college students began to arrive in Mississippi—then the most closed society in America—to help register black residents to vote. Three civil rights workers were brutally murdered, a trauma that pierced the heart of our nation and thrust into the open the racist oppression of black political rights by Mississippi’s leaders.
Since that momentous summer, our country has made great strides to extend civil and political rights to all Americans regardless of race. Still, African Americans today face obstacles just as real as poll taxes and segregated restrooms; the difference is that these obstacles are now embedded in our institutions and social structures instead of being posted on public walls.
The reality is that, a half-century after Freedom Summer, African Americans continue to face severe barriers not just to voting but also to economic security. In fact, on the economic front, some indicators have even gotten worse and problems more entrenched in recent decades. The gap between black and white household incomes, for example, is actually wider today than it was in the mid-1960s. So if the primary Civil Rights struggle 50 years ago was for basic political rights, today it is for equal access to the ladder of economic mobility.
A key factor behind persistent racial inequality involves the failures of our education system. While African Americans may no longer be barred from attending school with white children, they still face disproportionate challenges in accessing the quality education that is a stepping stone to a decent life in America. One example is that black students today must survive a climate of punitive and discriminatory discipline that unfairly pushes them out of school and into the criminal justice system. Only last year, a sweeping federal settlement of charges of discriminatory discipline was finalized in the town of Meridian—the same town from which the three murdered civil rights workers left in 1964 on their final day of advocacy. Continued support is needed for such efforts to interrupt the school-to-prison pipeline.
The job market is another area still rife with racial inequities. While high school graduation rates for African Americans have improved dramatically since 1964, nearly 35 percent of recent black male high school graduates nationwide have no job—a far higher jobless rate than any other group. However, this summer, 100 of these students in the Mississippi Delta and Biloxi are now working full time in a project to support the restoration of federal summer jobs programs. Although it was launched on short notice, this initiative was flooded with three times more applications than available positions. Providing summer jobs opportunities is a vital first step towards ensuring economic stability.
In higher education, the white-black gap in college graduation has worsened, setting the stage for similar racial disparities in the job market. One problem is that African Americans seeking to advance beyond a minimum wage job often are recruited through targeted advertising into fast-track for-profit career schools as an alternative to traditional college education. Many of these companies charge hefty tuition fees, even as they fail to deliver degrees that qualify people for their intended career. Over the past several months, the U. S. Department of Education has proposed regulations to curb the misconduct of these predatory schools and ensure that career degrees lead to employment. Reining in these predatory schools will require support for strong final regulations, which are to be issued this fall.
It’s not just education and jobs: Deregulation in the lending industry in the 1980s further narrowed opportunities for many working African American families. Even as families supported by a minimum wage earner sank below the poverty line, state legislatures enabled the emergence of the predatory payday lending industry by carving out exceptions to their usury laws to allow small dollar, high-interest loans. So, just as the paychecks of poor families no longer met basic survival needs, and as traditional banks withdrew service from low-income neighborhoods, the payday industry ramped up pressure to ensnare borrowers into a cycle of high-interest loans that become a revolving door of debt.
In Mississippi, after fast-cash lobbyists blocked reforms in the state legislature, the Mississippi Center for Justice launched a new model for providing loans to low-income borrowers: the New Roots Credit Partnership, an alliance between employers and banks to provide emergency loans on fair, non-predatory terms. A growing number of Mississippi employers are signing up for this program, which is a promising model for helping low-income families achieve economic security. We need to expand such efforts and ensure all Americans have access to fair banking services.
Fifty years after Freedom Summer, we recognize that America cannot know true racial justice until there is economic justice. We should attack those more subtle forms of discrimination with just as much energy and determination as did those who started a powerful movement in the long, hot summer of 1964.
By: Reilly Morse, The American Prospect, July 3, 2014
“Women Deserve Better”: Discrimination Is The Best Explanation For The Difference In Pay
Just two days ago President Obama made news in Pittsburgh by stating that equal pay for equal work not only benefits women, but also benefits families. In April, he signed an executive order that allows federal workers to share salary information and requires federal contractors to disclose more information about what their employees earn. On June 23, the Obama Administration will host a summit in Washington D.C. that focuses on creating a 21st century workplace, which includes equal pay for equal work.
The fact that this is still a topic that is making headlines in 2014 is alarming.
Almost half of the American workforce is female. In more and more situations, women are the primary breadwinners in their families. Pay disparity doesn’t just hurt women. It hurts their kids and their families. It hurts all Americans.
Opponents of equal pay have tried many times to explain away the wage gap. The most common argument they offer is that it simply does not exist. Opponents say that pay disparity based on gender is not based on sexism or discrimination, but rather on the choices that women make in terms of education, hours, and children. They argue that it is the biological and social forces that lead to a pay gap and therefore there is no point in pushing through legislation that could not possibly combat these realities. Opponents claim that discrimination isn’t the cause of the pay gap and that laws combating discrimination are not the solution.
Thankfully, the modern workplace has advanced beyond Mad Men-style sexism. However, this does not mean that discrimination is no longer a factor.
Senior advisers at the Department of Labor agree, “Discrimination is the best explanation of the remaining difference in pay.” Economists across the political spectrum attribute at least 40 percent of the pay gap to discrimination, not differences between workers or their jobs.
Sexual discrimination and the pay gap it causes are real problems and must be addressed.
Women earn an average 77 cents for every dollar a man makes, according to the U.S. Census Bureau, less if they are also a minority. In some professions, this gap is smaller. In others it’s wider. But no matter what the profession, even if it’s ‘only‘ a loss of 10 cents on the dollar, the gap is there, and it is solely related to the gender of the worker.
The solution is to elect representatives who recognize that equal work deserves equal pay, and that family wages are more important than corporate earnings. Just look at who voted for the Lily Ledbetter Act of 2009. If your representative voted ‘Nay‘, they believe that women should be paid less than men. Let’s get these ‘Mad Men’ out of office and allow common sense to prevail.
We are a nation founded on equality, built and sustained by women as well as men. Gender discrimination is completely and categorically unacceptable. Not only have women earned equal pay, they deserve it.
By: Jason Ritchie, The Huffington Post Blog, June 19, 2014
“On Inequality Denial”: Good Ideas Don’t Need To Be Sold On False Pretenses
A while back I published an article titled “The Rich, the Right, and the Facts,” in which I described politically motivated efforts to deny the obvious — the sharp rise in U.S. inequality, especially at the very top of the income scale. It probably won’t surprise you to hear that I found a lot of statistical malpractice in high places.
Nor will it surprise you to learn that nothing much has changed. Not only do the usual suspects continue to deny the obvious, but they keep rolling out the same discredited arguments: Inequality isn’t really rising; O.K., it’s rising, but it doesn’t matter because we have so much social mobility; anyway, it’s a good thing, and anyone who suggests that it’s a problem is a Marxist.
What may surprise you is the year in which I published that article: 1992.
Which brings me to the latest intellectual scuffle, set off by an article by Chris Giles, the economics editor of The Financial Times, attacking the credibility of Thomas Piketty’s best-selling “Capital in the Twenty-First Century.” Mr. Giles claimed that Mr. Piketty’s work made “a series of errors that skew his findings,” and that there is in fact no clear evidence of rising concentration of wealth. And like just about everyone who has followed such controversies over the years, I thought, “Here we go again.”
Sure enough, the subsequent discussion has not gone well for Mr. Giles. The alleged errors were actually the kinds of data adjustments that are normal in any research that relies on a variety of sources. And the crucial assertion that there is no clear trend toward increased concentration of wealth rested on a known fallacy, an apples-to-oranges comparison that experts have long warned about — and that I identified in that 1992 article.
At the risk of giving too much information, here’s the issue. We have two sources of evidence on both income and wealth: surveys, in which people are asked about their finances, and tax data. Survey data, while useful for tracking the poor and the middle class, notoriously understate top incomes and wealth — loosely speaking, because it’s hard to interview enough billionaires. So studies of the 1 percent, the 0.1 percent, and so on rely mainly on tax data. The Financial Times critique, however, compared older estimates of wealth concentration based on tax data with more recent estimates based on surveys; this produced an automatic bias against finding an upward trend.
In short, this latest attempt to debunk the notion that we’ve become a vastly more unequal society has itself been debunked. And you should have expected that. There are so many independent indicators pointing to sharply rising inequality, from the soaring prices of high-end real estate to the booming markets for luxury goods, that any claim that inequality isn’t rising almost has to be based on faulty data analysis.
Yet inequality denial persists, for pretty much the same reasons that climate change denial persists: there are powerful groups with a strong interest in rejecting the facts, or at least creating a fog of doubt. Indeed, you can be sure that the claim “The Piketty numbers are all wrong” will be endlessly repeated even though that claim quickly collapsed under scrutiny.
By the way, I’m not accusing Mr. Giles of being a hired gun for the plutocracy, although there are some self-proclaimed experts who fit that description. And nobody’s work should be considered above criticism. But on politically charged issues, critics of the consensus need to be self-aware; they need to ask whether they’re really seeking intellectual honesty, or are effectively acting as concern trolls, professional debunkers of liberal pieties. (Strange to say, there are no trolls on the right debunking conservative pieties. Funny how that works.)
So here’s what you need to know: Yes, the concentration of both income and wealth in the hands of a few people has increased greatly over the past few decades. No, the people receiving that income and owning that wealth aren’t an ever-shifting group: People move fairly often from the bottom of the 1 percent to the top of the next percentile and vice versa, but both rags to riches and riches to rags stories are rare — inequality in average incomes over multiple years isn’t much less than inequality in a given year. No, taxes and benefits don’t greatly change the picture — in fact, since the 1970s big tax cuts at the top have caused after-tax inequality to rise faster than inequality before taxes.
This picture makes some people uncomfortable, because it plays into populist demands for higher taxes on the rich. But good ideas don’t need to be sold on false pretenses. If the argument against populism rests on bogus claims about inequality, you should consider the possibility that the populists are right.
By: Paul Krugman, Op-Ed Columnist, The New York Times, June 1, 2014
“Koch Cadre Billionaire Defends Nazi Comments”: For The Continued Success Of The Richest Americans
Ken Langone, the billionaire Home Depot founder, GOP donor and an ally of Charles and David Koch, clumsily defended his March 2014 comments comparing populist criticism of the 1% with the rise of Nazi Germany, in an interview with Capital New York published this week.
Langone, a regular attendee of the twice-yearly secret strategy sessions for the mega rich organized by Charles and David Koch, has been speaking publicly of his concerns for the continued success of the richest Americans.
“We’re being strangled by regulation,” Langone told a conference of hedge fund managers in Las Vegas in mid May, as reported by CNN. “You’re in the 1%, there’s nothing wrong with that,” he continued. “You can do so much more with money than pay your taxes.”
The Top One Percent as Victims
Now, Langone has spoken to defend his past Nazi comparison, despite having somewhat backtracked just two months earlier.
From Huff Post:
Billionaire Kenneth Langone is still defending his comparison of income inequality talking points to rhetoric in Nazi Germany, after apologizing two months ago for the comments.
In a Capital New York interview published Monday morning, the Home Depot co-founder and Republican megadonor said it was a fair analogy to illustrate how democratic elections can yield results he finds terrifying.
“I simply said just because we’re a democracy doesn’t mean you can’t have bad results,” he said. “That’s all! I stand on what I said.”
Huff Post continued:
In a March interview with Politico, which owns Capital, Langone said a GOP pivot toward the economic populism championed by progressives and by such Tea Party candidates as Kentucky Sen. Rand Paul and Texas Sen. Ted Cruz would mirror the rise of Adolf Hitler.
“I hope it’s not working,” Langone said of the political appeals at the time. “Because if you go back to 1933, with different words, this is what Hitler was saying in Germany.”
Koch “Cadre”
The Kochs have been building their politcal network for more than forty years.
Nicholas Confessore, wrote about the history of the Koch brothers political activities in a front page New York Times story on May 18, 2014, detailing the origins of the present day Koch political operation.
According to Confessore, in a speech given to business leaders and others in 1974, Charles Koch outlined that vision saying: “The development of a well-financed cadre of sound proponents of the free enterprise philosophy is the most critical need facing us today.”
The Koch brothers are not the only billionaires using their wealth to push for radical deregulation. They now have a whole cadre.
By: Nick Surgey, The Center For Media and Democracy, May 19, 2014
“It’s Now The Canadian Dream”: It’s Time To Bring The American Dream Home From Exile
It was in 1931 that the historian James Truslow Adams coined the phrase “the American dream.”
The American dream is not just a yearning for affluence, Adams said, but also for the chance to overcome barriers and social class, to become the best that we can be. Adams acknowledged that the United States didn’t fully live up to that ideal, but he argued that America came closer than anywhere else.
Adams was right at the time, and for decades. When my father, an eastern European refugee, reached France after World War II, he was determined to continue to the United States because it was less class bound, more meritocratic and offered more opportunity.
Yet today the American dream has derailed, partly because of growing inequality. Or maybe the American dream has just swapped citizenship, for now it is more likely to be found in Canada or Europe — and a central issue in this year’s political campaigns should be how to repatriate it.
A report last month in The Times by David Leonhardt and Kevin Quealy noted that the American middle class is no longer the richest in the world, with Canada apparently pulling ahead in median after-tax income. Other countries in Europe are poised to overtake us as well.
In fact, the discrepancy is arguably even greater. Canadians receive essentially free health care, while Americans pay for part of their health care costs with after-tax dollars. Meanwhile, the American worker toils, on average, 4.6 percent more hours than a Canadian worker, 21 percent more hours than a French worker and an astonishing 28 percent more hours than a German worker, according to data from the Organization for Economic Cooperation and Development.
Canadians and Europeans also live longer, on average, than Americans do. Their children are less likely to die than ours. American women are twice as likely to die as a result of pregnancy or childbirth as Canadian women. And, while our universities are still the best in the world, children in other industrialized countries, on average, get a better education than ours. Most sobering of all: A recent O.E.C.D. report found that for people aged 16 to 24, Americans ranked last among rich countries in numeracy and technological proficiency.
Economic mobility is tricky to measure, but several studies show that a child born in the bottom 20 percent economically is less likely to rise to the top in America than in Europe. A Danish child is twice as likely to rise as an American child.
When our futures are determined to a significant extent at birth, we’ve reverted to the feudalism that our ancestors fled.
“Equality of opportunity — the ‘American dream’ — has always been a cherished American ideal,” Joseph Stiglitz, the Nobel-winning economist at Columbia University, noted in a recent speech. “But data now show that this is a myth: America has become the advanced country not only with the highest level of inequality, but one of those with the least equality of opportunity.”
Consider that the American economy has, over all, grown more quickly than France’s. But so much of the growth has gone to the top 1 percent that the bottom 99 percent of French people have done better than the bottom 99 percent of Americans.
Three data points:
• The top 1 percent in America now own assets worth more than those held by the entire bottom 90 percent.
• The six Walmart heirs are worth as much as the bottom 41 percent of American households put together.
• The top six hedge fund managers and traders averaged more than $2 billion each in earnings last year, partly because of the egregious “carried interest” tax break. President Obama has been unable to get financing for universal prekindergarten; this year’s proposed federal budget for pre-K for all, so important to our nation’s future, would be a bit more than a single month’s earnings for those six tycoons.
Inequality has become a hot topic, propelling Bill de Blasio to become mayor of New York City, turning Senator Elizabeth Warren into a star, and elevating the economist Thomas Piketty into such a demigod that my teenage daughter asked me the other day for his 696-page tome. All this growing awareness is a hopeful sign, because there are policy steps that we could take that would create opportunity and dampen inequality.
We could stop subsidizing private jets and too-big-to-fail banks, and direct those funds to early education programs that help break the cycle of poverty. We can invest less in prisons and more in schools.
We can impose a financial transactions tax and use the proceeds to broaden jobs programs like the earned-income tax credit and career academies. And, as Alan S. Blinder of Princeton University has outlined, we can give companies tax credits for creating new jobs.
It’s time to bring the American dream home from exile.
By: Nicholas Kristof, Op-Ed Columnist, The New York Times, May 14, 2014
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