Protest Needed To Enforce Full Employment Laws
Marjorie Cohn, immediate past president of the National Lawyers Guild, has a post up at Op-Ed News, “Lost in the Debt Ceiling Debate: The Legal Duty to Create Jobs” addressing the federal government’s failure to comply with existing job-creation legislation.
Cohn focuses primarily on The Employment Act of 1946 and the Humphrey-Hawkins Act of 1978, noting also mandates for job-creation in 1977 reforms requiring the Federal Reserve to leverage monetary policy to promote maximum employment. She ads that the Universal Declaration of Human Rights sets a global standard of employment as an important right, which, not incidentally, some major industrialized nations have actually tried to honor.
Cohn’s review of the two jobs acts provides a timely reminder of the moral imperative that faces every great democracy, the responsibility to take action to help insure that every family has at least one breadwinner who earns a living wage:
The first full employment law in the United States was passed in 1946. It required the country to make its goal one of full employment…With the Keynesian consensus that government spending was necessary to stimulate the economy and the depression still fresh in the nation’s mind, this legislation contained a firm statement that full employment was the policy of the country.As originally written, the bill required the federal government do everything in its authority to achieve full employment, which was established as a right guaranteed to the American people. Pushback by conservative business interests, however, watered down the bill. While it created the Council of Economic Advisers to the President and the Joint Economic Committee as a Congressional standing committee to advise the government on economic policy, the guarantee of full employment was removed from the bill.
In the aftermath of the rise in unemployment which followed the “oil crisis” of 1975, Congress addressed the weaknesses of the 1946 act through the passage of the Humphrey-Hawkins Full Employment Act of 1978. The purpose of this bill as described in its title is:
“An Act to translate into practical reality the right of all Americans who are able, willing, and seeking to work to full opportunity for useful paid employment at fair rates of compensation; to assert the responsibility of the Federal Government to use all practicable programs and policies to promote full employment, production, and real income, balanced growth, adequate productivity growth, proper attention to national priorities.”
The Act sets goals for the President. By 1983, unemployment rates should be not more than 3% for persons age 20 or over and not more than 4% for persons age 16 or over, and inflation rates should not be over 4%. By 1988, inflation rates should be 0%. The Act allows Congress to revise these goals over time.
If private enterprise appears not to be meeting these goals, the Act expressly calls for the government to create a “reservoir of public employment.” These jobs are required to be in the lower ranges of skill and pay to minimize competition with the private sector.
The Act directly prohibits discrimination on account of gender, religion, race, age or national origin in any program created under the Act. Humphey-Hawkins has not been repealed. Both the language and the spirit of this law require the government to bring unemployment down to 3% from over 9%…
This legislation only requires the federal government to take action. The private sector, which employs 85+ percent of the labor force, would be indirectly influenced by monetary policy, but would not be required to do any hiring. Still, full enforcement of existing legislation could substantially reduce unemployment by putting millions of jobless Americans to work in public service projects rebuilding our tattered infrastructure.
The ’46 and ’78 full employment laws have been winked at and shrugged off by elected officials for decades as merely symbolic statutes, despite the fact that they actually do require the President, Congress and the Fed to do specific things to create jobs.
Cohn points out that Rep. John Conyers (D-MI) has introduced “The Humphrey-Hawkins 21st Century Full Employment and Training Act” (HR 870), to fund job-training and job-creation programs, funded by taxes on financial transactions. But the bill has no chance as long as Republicans control the House.
Cohn urges President Obama to demand that the Fed “…use all the tools relating to controlling the money supply…to create the funds called for by HR 870, and to start putting people back to work through direct funding of a reservoir of public jobs as Humphrey-Hawkins mandates.” Imagine the political donnybrook that would ensue following such action, legal though it apparently would be. It’s an interesting scenario that needs some fleshing out.
The best hope for full employment remains electing strong Democratic majorities to both houses of congress, while retaining the presidency. Under this scenario, full enforcement of the ’46 and ’78 employment acts is certainly doable. But it’s a very tough challenge, given the Republican edge in Senate races next year.
There are signs that the public is tiring of the tea party obstruction of government, and therefore hope that at least some Republicans may have to move toward the center to survive. It’s possible they could be influenced by energetic protest and lobbying campaigns by their constituents.
Like other groups across the political spectrum, we progressives are very good at blaming elected officials when they don’t follow through on their reform promises. But too many progressive Dems fail to realize that finger-pointing, while necessary, is only part of our responsibility. If we really want to see significant progressive change, especially full employment, we simply must escalate our protest activities to compel our elected and government officials to act.
At a white house meeting, FDR reportedly told the great African American labor leader A. Philip Randolph “Make me do it” in response to Randolph’s appeal for racial justice and economic reform. Roosevelt was not being a smart ass; He was underscoring an important law of politics, that elected officials need protest to galvanize them to act, and progressive politicians welcome it because it provides cover, as well as encouragement.
Regarding protest leadership, we have a great role model, whose 30+ foot stone image will be unveiled not far from the Lincoln, Jefferson and FDR Memorials on the National Mall in the capitol August 28th. The Martin Luther King, Jr. Memorial will not only honor the historic contributions of a great African American leader; It will also inspire — and challenge — coming generations of all races to emulate his strategy of militant but dignified nonviolent protest to achieve social and economic justice.
Let’s not forget that the Great March on Washington MLK and Randolph lead in 1963 was not only about racial justice. The twin goals were “Jobs and Freedom,” a challenge that echoes with prophetic relevance for our times. It was FDR who said “make me do it,” and MLK showed us the way, not only with one demonstration, but with a sustained commitment to mass protest. Now let’s make them do it.
By: J. P. Green, The Democratic Strategist, August 13, 2011
CEO’s And Teapartiers, Shut Up And Pay Your Taxes: Starving The Government Is Not Patriotic
As I sit here in Germany’s financial capital, a few hours by train from where my forbearers set out for the United States a century ago, I’m remembering what antitax Americans are forgetting: Living in a stable and free society that supports economic initiative isn’t a given.
Those who think that U.S. corporations and wealthy individuals already pay too much in taxes and get too little in return are taking for granted social order and economic opportunity. Keeping the peace costs money, and paying police, fire and other emergency personnel requires tax revenue. Just ask U.K. Prime Minister David Cameron, whose plan to make substantial cuts in London’s Metropolitan Police budget now looks ill-timed, amid pictures of looters making off with stolen goods.
U.S. corporations benefit every day from operating in an environment where bricks aren’t flying through windows and gunshots aren’t going off in parking lots. Civil unrest can be expensive, as executives at Sony Corp learned this week after its London warehouse went up in flames.
It also costs money to educate a workforce, something that also seems glossed over by those who want to slash money for federal education grants.
When I first arrived in Germany, people asked me whether the news they saw on TV is true, that “everyone in the United States is lining up for food stamps,” as one Frankfurter put it. Their questions were a reminder that even though Germany’s tax burden is higher than that in the United States, its economy weathered the global recession of 2008-09 better than America’s did, and its unemployment rate today, at 7%, is significantly lower than ours at 9.1%.
People like Grover Norquist, who claim that high taxes are the root of all our economic problems, have no answer for facts like these.
Those who want to lower business taxes often say that the U.S. corporate tax rate of 35% is higher than the 25% average of the world’s developing economies. But that argument ignores the long list of tax loopholes that allow U.S. companies to pay much lower rates in actuality.
Go down the list of second-quarter earnings reports for companies in the S&P 500 Index and stop when you get to one that paid 35% of earnings. That might take a while.
What the United States needs isn’t more tax cuts, but tax reform to eliminate the many loopholes that create an uneven playing field.
Tax corporate cash
Given the sluggish pace of U.S. economic growth, perhaps such reform could include a tax on the enormous amounts of cash that American companies now have sitting on their balance sheets.
Non-financial companies in the S&P 500 are sitting on more than $1 trillion in cash right now — an absurd amount given that many of those same companies are laying off workers. Some estimates put the total closer to $2 trillion.
Forcing corporations to spend that money, either by hiring workers or paying investor dividends, would go a long way toward spurring growth.
When I hear Norquist — along with the candidates active in the tea-party movement that are too weak to resist signing his so-called loyalty oath — complain about actually having to pay for government services, I think we’ve come to take those services for granted.
I also think such whining is the exact opposite of the can-do attitude of the waves of immigrants who helped build the U.S. economy and continue to do so today. I’d like to introduce them to some of the start-up CEOs that I interview every week in Silicon Valley.
During the past few months, I’ve been writing a series of profiles on tech entrepreneurs for the site Entrepreneur.com. Neither I nor my editors planned it this way, but given that recent immigrants tend to be among the hardest-working Americans, perhaps it’s no surprise that none of the first four that I’ve written about are native to the United States.
These executives are people who, like generations of immigrants before them, came to the States and put their energy into building companies, rather than sitting around complaining how terrible a place this is to do business. They also, by the way, create jobs.
They come from across the globe: Victoria Ransom and Alain Chuard of Wildfire Interactive grew up in New Zealand and Switzerland, respectively; Mikkel Svane and his Zendesk co-founders hail from Denmark; Rahim Fazal of Involver is from Vancouver, B.C.
Yet all of them came to the United States to build their businesses. Why would they do that if it’s so hostile to their efforts, as the antitax extremists claim the country to be?
The answer is it’s not. On the contrary, America’s still the most attractive country for entrepreneurs. Keeping it that way costs money — something that tax haters seem to forget.
By: John Shinal, MarketWatch, August 12, 2011
Divineless Intervention: Gov Rick Perry’s Unanswered Prayers
A few months ago, with Texas aflame from more than 8,000 wildfires brought on by extreme drought, a man who hopes to be the next president took pen in hand and went to work:
“Now, therefore, I, Rick Perry, Governor of Texas, under the authority vested in me by the Constitution and Statutes of the State of Texas, do hereby proclaim the three-day period from Friday, April 22, 2011, to Sunday, April 24, 2011, as Days of Prayer for Rain in the State of Texas.”
Then the governor prayed, publicly and often. Alas, a rainless spring was followed by a rainless summer. July was the hottest month in recorded Texas history. Day after pitiless day, from Amarillo to Laredo, from Toadsuck to Twitty, folks were greeted by a hot, white bowl overhead, triple-digit temperatures, and a slow death on the land.
In the four months since Perry’s request for divine intervention, his state has taken a dramatic turn for the worse. Nearly all of Texas is now in “extreme or exceptional” drought, as classified by federal meteorologists, the worst in Texas history.
Lakes have disappeared. Creeks are phantoms, the caked bottoms littered with rotting, dead fish. Farmers cannot coax a kernel of grain from ground that looks like the skin of an aging elephant.
Is this Rick Perry’s fault, a slap to a man who doesn’t believe that humans can alter the earth’s climate — God messin’ with Texas? No, of course not. God is too busy with the upcoming Cowboys football season and solving the problems that Tony Romo has reading a blitz.
But Perry’s tendency to use prayer as public policy demonstrates, in the midst of a truly painful, wide-ranging and potentially catastrophic crisis in the nation’s second most-populous state, how he would govern if he became president.
“I think it’s time for us to just hand it over to God, and say, ‘God: You’re going to have to fix this,’” he said in a speech in May, explaining how some of the nation’s most serious problems could be solved.
That was a warm-up of sorts for his prayer-fest, 30,000 evangelicals in Houston’s Reliant Stadium on Saturday. From this gathering came a very specific prayer for economic recovery. On the following Monday, the first day God could do anything about it, Wall Street suffered its worst one-day collapse since the 2008 crisis. The Dow sunk by 635 points.
Prayer can be meditative, healing, and humbling. It can also be magical thinking. Given how Perry has said he would govern by outsourcing to the supernatural, it’s worth asking if God is ignoring him.
Though Perry will not officially announce his candidacy until Saturday, he loomed large over the Republican debate Thursday night. With their denial of climate change, basic budget math, and the indisputable fact that most of the nation’s gains have gone overwhelmingly to a wealthy few in the last decade, the candidates form a Crazy Eight caucus. You could power a hay ride on their nutty ideas.
After the worst week of his presidency (and the weakest Oval Office speech since Gerald Ford unveiled buttons to whip inflation), the best thing Barack Obama has going for him is this Republican field. He still beats all of them in most polling match-ups.
Perry is supposed to be the savior. When he joins the campaign in the next few days, expect him to show off his boots; they are emblazoned with the slogan dating to the 1835 Texas Revolution: “Come and Take It.” He once explained the logo this way: “Come and take it — that’s what it’s all about.” This is not a man one would expect to show humility in prayer.
Perry revels in a muscular brand of ignorance (Rush Limbaugh is a personal hero), one that extends to the ever-fascinating history of the Lone Star State. Twice in the last two years he’s broached the subject of Texas seceding from the union.
“When we came into the nation in 1845 we were a republic, we were a stand-alone nation,” says Perry in a 2009 video that has just surfaced. “And one of the deals was, we can leave any time we want. So we’re kind of thinking about that again.”
He can dream all he wants about the good old days when Texas left the nation to fight for the slave-holding states of the breakaway confederacy. But the law will not get him there. There is no such language in the Texas or United States’ constitutions allowing Texas to unilaterally “leave any time we want.”
But Texas is special. By many measures, it is the nation’s most polluted state. Dirty air and water do not seem to bother Perry. He is, however, extremely perturbed by the Environmental Protection Agency’s enforcement of laws designed to clean the world around him. In a recent interview, he wished for the president to pray away the E.P.A.
To Jews, Muslims, non-believers and even many Christians, the Biblical bully that is Rick Perry must sound downright menacing, particularly when he gets into religious absolutism. “As a nation, we must call upon Jesus to guide us through unprecedented struggles,” he said last week.
As a lone citizen, he’s free to advocate Jesus-driven public policy imperatives. But coming from someone who wants to govern this great mess of a country with all its beliefs, Perry’s language is an insult to the founding principles of the republic. Substitute Allah or a Hindu God for Jesus and see how that polls.
Perry is from Paint Creek, an unincorporated hamlet in the infinity of the northwest Texas plains. I’ve been there. In wet years, it’s pretty, the birds clacking on Lake Stamford, the cotton high. This year, it’s another sad moonscape in the Lone Star State.
Over the last 15 years, taxpayers have shelled out $232 million in farm subsidies to Haskell County, which includes Paint Creek — a handout to more than 2,500 recipients, better than one out every three residents. God may not always be reliable, but in Perry’s home county, the federal government certainly is.
By: Timothy Egan, The New York Times Opinion Pages, August 11, 2011
Gov Rick Perry’s Abysmal Record On Women’s Health
If you’re a woman from Texas—or indeed, any woman—there’s a lot to dislike about Gov. Rick Perry.
The vanity. The boorishness. The belief you’re too stupid to make your own medical decisions. The weird resemblance to Animal House’s Niedermeyer in his college photo.
Perry reminds me of the scene in Thelma and Louise in which Thelma (Geena Davis) says of her n’er-do-well husband, “He kind of prides himself on being infantile.” Louise (Susan Sarandon) responds, “He’s got a lot to be proud of.”
So as we all prepare for the media barrage surrounding Perry’s presidential announcement on Saturday, and in tradition of my idol Molly Ivins, I’m going to start a new group, Texas Women Enraged by Rick Perry—TWERP for short.
As TWERP’s organizer, I feel obliged to point out that on a practical level, Rick Perry has made it pretty lousy for women in Texas, especially for women at the bottom of the economic ladder. He’s also made it pretty lousy for anybody who doesn’t look like him. As Eileen Smith wrote in the Texas Observer, “In just one session, Republicans managed to screw children, women, gays, immigrants, teachers, the elderly, Hispanics, the unemployed and the uninsured. The only people who got off easy were white guys. Can’t imagine why.”
The numbers tell the tale. Texas is dead last in the number of non-elderly women without health insurance, and 6th nationally in the percentage of women in poverty, according to the Texas Legislative Study Group. One in five Texas children lack health insurance, the highest rate in the nation. And if that weren’t bad enough, Perry tried to opt out of Medicaid, which provides healthcare to the most vulnerable Texas populations, including pregnant women and children.
When it comes to reproductive healthcare, the state budget guts family planning, leaving 284,000 Texas women without birth control or access to basic reproductive healthcare. This will also likely increase the abortion rate, sonograms or no sonograms. And of course there’s the standard right wing assault on Planned Parenthood. Women needing prenatal care fare no better.
As reported in the Texas Tribune, “Texas has the worst rate of pregnant women receiving prenatal care in the first trimester, according to the report commissioned by the Legislative Study Group…And though Texas has the highest percent of its population without health insurance, the state is 49th in per capita spending on Medicaid, and dead last in per capita spending on mental health, according to the report.”
So if you’re a working class Texas woman, Rick Perry doesn’t want you to have access to birth control or reproductive healthcare to prevent unintended pregnancy, but once you’re pregnant the state mandates a sonogram and a lecture to convince you of the error of your ways. After that sonogram and lecture, if you need prenatal care, you’re SOL. And once the baby is born, Texas is 47th in monthly benefit payments under the Women, Infants, & Children program, which provides nutrition assistance.
This is Rick Perry’s vision for women in the United States. Limited healthcare, little birth control, low income women and kids left to fend for themselves, a bunch of bureaucrats telling you what to do—and the very real human suffering that goes along with it. TWERP might be an understatement.
By: Laura Chapin, U. S. News and World Report, August 11, 2011