“Demand A Higher Wage, People!”: The Status Quo Of Wage Injustice And Greed-Driven Inequality Relies On Our Complicity
Chasten Florence was on his lunch break when he decided to join a protest outside a McDonald’s in New York City on Wednesday. To be honest, Florence wasn’t really sure what he was helping protest. But as he lay his body down on the sidewalk at a die-in of low-wage workers demanding a $15 wage and a union, Florence simply explained, “These are my people.”
Didn’t Florence need to eat lunch? Sure, but he could spare five minutes. Working concrete on construction jobs, Florence earns more than $15 an hour and thinks everyone else should, too. “I don’t know how you can raise a household on less,” said Florence. And he’s right. You can’t.
On April 15, workers from McDonald’s, Walmart and other low-wage employers were joined by college students and adjunct faculty, domestic workers and leaders from the Black Lives Matter movement. In all, tens of thousands participated in protests in 200 cities across the United States to demand a $15 minimum wage and a union. The #FightFor15 is unconventional in that, instead of focusing on Congress to raise wages, workers and advocates are pressuring employers and also the general public—trying to foster awareness about dismal wages and working conditions and create a groundswell of support for change.
The nationwide protests were organized on Tax Day, April 15, because 4/15 is a short-hand for the campaign’s wage demands. But it was also meant to highlight the fact that the poverty wages paid by fast food restaurants and employers are so low that many low-wage workers are forced to rely on public assistance benefits to get by. In fact, almost three-quarters of Americans who depend on public assistance programs like food stamps and Medicaid are members of a family headed by someone who has a job.
In other words, in America today, many people are poor not because they don’t have a job but because they have a job that pays poverty wages. If the minimum wage had grown at the same rate as overall productivity since 1968, then the minimum wage would now be $18.50 an hour—instead of $7.25, the current federal minimum wage. In fact, adjusted for inflation, the federal minimum wage has actually dropped. In 2014 dollars, the 1968 minimum wage was equal to $9.54 an hour.
The stagnation of working class wages cannot be explained by a lack of hard work or skills. Low-wage workers have more education than their 1968 counterparts—and yet are still being paid less. And as this graph from Mother Jones shows, while worker productivity has steadily risen over the past several decades, overall wages have not grown at the same pace—even though the income of the top 1% has spiked dramatically.
As taxpayers, we foot the bill for greedy employers who pay poverty wages. For instance, because McDonald’s won’t pay its workers a living wage, taxpayers are paying $1.2 billion per year in food stamp costs and other public assistance just for McDonald’s workers alone. That’s like our tax dollars subsidizing McDonald’s profit—and greed.
Recently McDonald’s announced it would raise wages by $1.00 an hour for workers in its corporate-owned stores, which since most McDonald’s are franchise operations, means the raise will affect less than 10 percent of McDonald’s workers. Beth Schaffer, who works at a McDonald’s in Charleston, South Carolina, and came to New York for the protests, shrugged her shoulders about the raise. After all, every single McDonald’s in South Carolina is a franchise not covered by the $1.00-an-hour increase. “My customers show me more respect than my employer,” said Schaffer. As her tone made clear, that’s not saying much.
As I left the Fight for $15 protest, one of several staged throughout New York on Wednesday, Chasten Florence walked one way back to his construction site and I walked the other way. I passed the tony restaurants of New York’s Upper West Side, on what seemed like one of the first real days of spring, men and women in business suits sitting at tables on the sidewalk, taking in the sun. Most were probably spending more on lunch than the workers at the protest earn in a week. Myself included.
And there’s nothing wrong with that, with wealth and success and enjoying what comes with it. The question is, are we paying enough attention to the costs? I wondered whether the people eating their expensive lunches knew that the bussers taking their plates can barely afford to feed their own families, that the workers at their children’s daycares don’t have health insurance, that the cheap stuff they order conveniently on Amazon.com is definitely comes at a high cost to the workers who make and ship those goods.
The construction worker who joined the Fight for $15 protest didn’t know that much about the issues or the protest demands, either. But he was going out of his way to learn, and to be supportive. “These are my people,” he said. Yes, they’re all of our people. It’s time we all wake up, pay attention, be angry and stand with our fellow human beings to do something about it. The status quo of wage injustice and greed-driven inequality relies on our complicity, whether by silence or ignorance. But it cannot survive if we all stand up together and fight.
By: Sally Kohn,
“Heightening Inequality To Even More Astronomical Levels”: If Inequality Worries Republicans, Why Do They Keep Making It Worse?
You can tell things have gotten very bad when the issue of economic inequality — a serious national problem mostly ignored for more than three decades — is suddenly in political vogue. And you can be sure things have gotten very, very bad when Republicans — who usually insist that inequality is natural, inevitable, even beneficial — suddenly claim they’re worried about it, too.
As the 2016 contenders officially declare their intentions, all of them seem aware that voters want to restore a vestige of fairness to the American economy. Regardless of personal ideology or political reliance on plutocratic billionaires, every presidential candidate must, at the very least, display concern for working families, single mothers, indebted students, and everyone struggling to achieve or maintain a decent living.
Yet how concerned are they, really? In the video that announced her candidacy, Hillary Clinton spoke briefly but bluntly: “Americans have fought their way back from tough economic times, but the deck is still stacked in favor of those at the top. Everyday Americans need a champion, and I want to be that champion.” The only Democrat in the race so far, Clinton realizes that a populist agenda will be required to excite her party base — and to answer those who regard her as too wealthy and too well connected to empathize with the downtrodden.
That unflattering portrait omits many relevant facts about Clinton’s life, from her own modest origins to her many years of advocacy for the disadvantaged, especially women and children. She spoke out publicly about economic fairness long before doing so became politically fashionable, both as a United States senator and during her last presidential campaign. Now the skeptics can listen and decide for themselves.
But voters should also listen closely to the Republicans who mock Clinton’s populism and assert that they are the true spokesmen for the working class. What do they propose to address inequality? And how “authentic” is their concern?
At least two of the Republican candidates, Senator Rand Paul (R-KY) and Senator Ted Cruz (R-TX), want to institute a so-called flat tax — which would severely exacerbate inequality by reducing tax levies on the wealthy and increasing the burden on everyone else. Such plans would cost the Treasury an annual amount estimated between $700 billion and $1 trillion. Yet Paul and Cruz insist that they will simultaneously slash taxes, increase defense spending, and balance the budget — and so does Senator Marco Rubio (R-FL), who proposes his own regressive tax breaks for the rich.
Those promises are mathematically impossible — unless, perhaps, the federal government permanently ended all discretionary spending on student aid, unemployment insurance, health care, veterans benefits, environmental protection, food safety, and dozens of other programs necessary to working- and middle-class families. Somehow they never mention that part.
While decrying economic inequality, Republicans tend not to emphasize their other proposed giveaways that would benefit wealthy donors, such as Paul’s plan to end capital gains taxes, or Rubio’s plan to end not only all taxes on capital gains but on interest and inherited estates, too — leaving only wage earners to be taxed. Schemes like this delight the Koch brothers precisely because they would heighten inequality to an even more astronomical level.
Although Republicans often mention the “right to rise,” as Jeb Bush would put it, they’re hostile to any measure that would actually elevate the incomes of those at the bottom — for example, increasing the minimum wage. Indeed, they tend to be opposed to the very idea of a legislated wage floor because, as Rubio once said, “I don’t think a minimum-wage law works.”
The Florida senator’s economic knowledge is as weak as his budgetary arithmetic. The most recent studies show that in states without a minimum- wage law, inequality is considerably worse than in states with a minimum wage that is at least a dollar above the federal minimum.
But don’t worry, Rubio says he knows a better way to reduce inequality than either higher wages or fairer taxes. Instead, for people languishing in low-wage jobs, government should “incentivize the creation of innovations in education that are accessible.”
So he offers something for everyone: The wealthy get still more big tax cuts; and the not-so-wealthy get a few phrases of incomprehensible, pseudo-wonkish jargon.
By: Joe Conason, Editer in Chief, The National Memo, April 18, 2015
“He’s Not A Reformer He’s A Fraud”: Marco Rubio Is The Most Disingenuous Republican Running For President
Most of the Republican Party’s primary candidates have internalized something that was blindingly obvious to everyone who watched the 2012 elections unfold. So long as traditional turnout patterns hold, Republicans can’t keep up with Democrats in presidential contests. To win, they need to alter the turnout pattern, and to alter the turnout pattern, they need to break with GOP orthodoxy in some way.
Jeb Bush is jilting the conservative movement by swearing off red meat, hoping an even temperament will appeal to uncommitted voters. Senator Rand Paul is courting young and minority voters by promising to challenge the surveillance and carceral states.
Senator Marco Rubio, who will announce his candidacy for president on Monday, was supposed to lead a GOP breakaway faction in support of comprehensive immigration reform, but was unable to persuade House Republicans to ignore the nativist right, and the whole thing blew up in his face. In regrouping, he’s determined that the key to restoring Republican viability in presidential elections is to woo middle class voters with fiscal policies that challenge conservative orthodoxy.
His new basic insight is correct. The GOP’s obsession with distributing resources up the income scale is the single biggest factor impeding it from reaching new constituencies, both because it reflects unpopular values and because it makes them unable to address emerging national needs that require spending money.
It also happens to be the raison d’être of the conservative establishment. Challenging the right’s commitment to lowering taxes on high earners, and reducing transfers to the poor and working classes, will encounter vast resistance. Where Paul can appeal to the moral and religious sensibilities of elderly whites who might otherwise oppose criminal justice reforms, a real challenge to GOP fiscal orthodoxy will get no quarter from GOP donors.
If Rubio were both serious and talented enough to move his party away from its most inhibiting orthodoxy, in defiance of those donors, his candidacy would represent a watershed. His appeal to constituencies outside of the GOP base would be both sincere and persuasive.
But Rubio is not that politician. He is no likelier to succeed at persuading Republican supply-siders to reimagine their fiscal priorities than he was at persuading nativists to support a citizenship guarantee for unauthorized immigrants. In fact, nobody understands the obstacles facing Marco Rubio better than Marco Rubio. But rather than abandon his reformist pretensions, or advance them knowing he will ultimately lose, Rubio has chosen to claim the mantle of reform and surrender to the right simultaneously—to make promises to nontraditional voters he knows he can’t keep. My colleague Danny Vinik proposes that Rubio wants to “improve the lives of poor Americans” but he must “tailor [his] solutions to gain substantial support in the GOP, and those compromises would cause more harm to the poor.” I think this makes Rubio the most disingenuous candidate in the field.
Nothing captures Rubio’s irreconcilable commitments quite like the evolution of his plan to reform the tax code. From the outset, Rubio never intended to sideline the interests of the wealthy. As originally conceived, his tax plan would’ve paired modest middle class benefits with very large tax cuts for high earners, much like George W. Bush’s first big tax cut in 2001. But when conservatives voiced dissatisfaction with that particular distribution, Rubio responded not by telling them to buzz off, or by eliminating the middle-income benefits and plying the savings into further high-end tax cuts. He kept the benefits, and layered hugely regressive additional tax cuts for the wealthy on top of an already unaffordable plan. What once would have increased deficits by $2.4 trillion over a decade, according to the Tax Policy Center, would now increase them by trillions more. The beneficiaries would be investors, who would no longer pay any tax on capital gains and dividends, and wealthy families, whose enormous bequests would be subject to no tax either.
Unbelievably, this play to have it both ways still doesn’t satisfy supply-siders. “This business side of the plan is pretty darn good and I like it,” Larry Kudlow told Politico’s Ben White. “The personal side of it is a mess and will be politically and economically indefensible and he is going to take tremendous criticism for it and my guess is he will have to back off it very fast.”
That a Republican’s tax math doesn’t add up is nothing new in politics. But most Republicans brush off the shortfalls with vague promises to make huge reductions in social spending. That’s what Mitt Romney did, and what Paul Ryan did back when he chaired the House budget committee. This didn’t put them on the level, but it helped complete a picture—that cutting taxes was a higher priority to them than supporting lower and middle class incomes. Rubio, by contrast, says he will hold anti-poverty spending flat. Now that Ryan is no longer responsible for writing Republican budgets, and doesn’t have to reconcile his incompatible priorities, he also claims he wants to hold anti-poverty spending flat. Rubio isn’t so lucky. As a presidential candidate, he, unlike Ryan, will be held to account for all of his tax and spending proposals.
Either Rubio is promising to run up bigger deficits than any president in history, or he’s swindling someone. Upper income tax cuts, middle class tax credits, anti-poverty spending—at least one of these will have to give. The experience of watching his tax plan evolve tells us a great deal about which one won’t.
By: Brian Beutler, The New Republic, April 13, 2015
“Your Dollars At Work — For The Rich”: We’re Not Talking Trickle Here, We’re Talking Cascading To Privatize Everything
Conservative pundits and politicians routinely divide our U.S. economy into two totally distinct spheres. We have the noble private sector over here, they tell us, and the bumbling, bloated public sector over there.
In reality, of course, we have just one economy, with the private and public sectors inextricably entangled. Each year, in fact, hundreds of billions of tax dollars end up flowing directly into the private sector.
The federal government alone, a new Congressional Budget Office report calculates, annually spends $500 billion — that’s half a trillion dollars — to purchase goods and services from private companies. State and local governments spend many billions more on top of that.
We’re not talking trickle here — we’re talking cascade, as our elected leaders rush to privatize services that public employees previously provided.This massive privatization of everything from prisons to public schools hasn’t done much of anything to make the United States a better place to live.
On the other hand, this privatization has paid off quite handsomely for America’s most affluent. They’re collecting ever more generous paychecks, courtesy of the tax dollars the rest of us are paying.
In Washington, D.C., for instance, top officials of the private companies that run many of the city’s charter schools are taking in double or triple what traditional public schools take in, or even more.
The CEO at one company that runs five of these charters, The Washington Post recently reported, pulled in $1.3 million in 2013. That’s nearly five times the pay that went to the top public official responsible for the District of Columbia’s 100-plus traditional public schools.
America’s taxpayer-funded military contractors would, of course, consider that chump change. The CEO at Lockheed Martin, for one, personally pocketed over $25 million in 2013.
So do you like this idea of executives in power suits raking in multiple millions of your tax dollars?
Rhode Island state senator William Conley sure doesn’t. He and four of his colleagues have just introduced legislation that would stop the stuffing of tax dollars into the pockets of wildly overpaid corporate executives.
Conley’s bill directs Rhode Island to start “giving preference in the awarding of state contracts” to business enterprises whose highest-paid execs receive no more than 25 times the pay of their median — most typical — workers.
Back in the middle of the 20th century, only a handful of top corporate executives ever made more than 25 times the pay of the average worker. Today, by contrast, only a handful of top execs make less than 100 times median pay.
If Conley’s bill becomes law, the ramifications could be huge.
That’s because we may soon know, for the first time ever, the exact ratio between CEO and median worker pay at every major American corporation that trades on Wall Street.
Five years ago, legislation that mandates this disclosure passed Congress and made it into law. Intense corporate lobbying has been stalling its enforcement, but the stall may soon end. The federal Securities and Exchange Commission finally appears ready to issue the regulations needed to enforce full pay ratio disclosure.
CEO-worker pay comparisons for individual companies will likely start hitting the headlines the year after next. With these new stats, taxpayers will be able to see exactly which corporations feeding at the public trough are doing the most to make America more unequal.
With this information, average taxpayers could then do a great deal. They could, for starters, follow Senator Conley’s lead in Rhode Island and urge their lawmakers to reward — with our tax dollars — only those corporations that pay their workers fairly.
By: Sam Pizzigati, Columnist, OtherWords; Associate Fellow, Institute for Policy Studies: The National Memo, March 25, 2015
“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
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