“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,
“Hold Your Applause”: Walmart’s Wage Hike Still About Greed
With much fanfare and platitudes like “Our people make the difference,” WalMart has achieved a public relations coup by granting quite meager raises to its employees. The headlines make the $277 billion (market cap) company look quite generous as it has raised its starting hourly wage immediately to $9 an hour, which is 19 percent higher than the prevailing federal minimum wage.
It sounds like great news from the world’s largest private employer, but the news is nowhere near as good as headlines suggest.
The New York Times estimates that there are only about 6,000 retail workers among WalMart’s 1.4 million employees that are paid the federal minimum wage. This shouldn’t be too surprising, since 28 states already mandate higher minimum wages than the federal standard and, says the law, the highest required wage wins. Only seven states have minimum wages set at $9 or higher. So WalMart workers in 43 states are getting some sort of raise.
But in the vast majority of cases, it’s nothing like the 19 percent number you’re seeing thrown around.
For those getting the largest bump from the federal minimum wage to $9, it’s important to put this all in perspective. The federal minimum wage has not been raised since 2009. It would take a wage of $8.55 an hour to equal the purchasing power of $7.25 six years ago.
So, in a real sense, WalMart’s lowest paid employees are getting a 45-cent-per-hour raise—a 6.2 percent increase. Meanwhile, workers in California, Massachusetts and Rhode Island will see no increase (the state hourly minimum is already $9) while minimum wage workers in Washington, Oregon, Connecticut and Washington, D.C., already make more than $9 an hour.
In its release to workers and the public, WalMart says that the wage increase scheduled to go into effect in April will raise the average part-time worker’s wage to $10 an hour across the company. Back in 2010, IBISWorld, a market research firm, estimated that WalMart cashiers made about $8.81 an hour. That 2010 wage inflations adjusts to a $9.56 wage in today’s dollars. According to WalMart’s release, part-time workers will see their wages rise from $9.48.
That means, until now, WalMart’s part-time workers were losing ground against inflation. While nice, this isn’t the saintly endeavor WalMart is making it out to be. The current bumps gets those employees just a few coins ahead of the rise in the cost of living since the end of the Financial Crisis.
For its full-time workers, WalMart says that the average wage is rising from $12.85 an hour to $13. In 2013, WalMart said that its average full-time wage was $12.83. So WalMart’s full-time associates got a 2-cent raise between 2013 and 2014 and now get a 17-cent bump. Adjusted for inflation, you’d need $13.04 cents today to buy what you could with $12.83 in 2013. WalMart’s full-time employees are coming out of this 4 cents short of inflation.
WalMart’s workforce is split about evenly between full- and part-timers. Part-timers will make $17,500 a year if they work 35 hours a week for 50 weeks a year. Full-timers will make $26,000 working 40 hours a week for 50 weeks.
For a two-person household, the federal poverty line is $15,930. For a four-person household it is $24,250.
Even after the raises, WalMart will continue to employ people who will be living below, at or barely above our various, imperfect measures of poverty.
These workers will continue to depend on public subsidies to get by, whether they need help with health care, buying food, or lunches for their school-aged children. It’s hard to see, even, how these wage increases will do enough so that WalMart employees don’t have to hold holiday food drives for each other.
WalMart has wanted to open a store in New York City for years and has been rebuffed at every turn by coalitions of labor and local retailers. The chain most recently failed to infiltrate East Brooklyn. It faces community opposition in cities and towns around the country.
The retailer is clearly tired of being seen as an unwelcome neighbor—and that’s likely a big consideration for why they’re upping their wages just enough.
The company would also like to buy itself a new labor history. For years, WalMart used contractors to clean and maintain its stores, putting a buffer between the companies and the often abused workers—especially when those workers were very often not authorized to work in the U.S. Since the middle of the last decade the company has also been hit with scores of class action lawsuits, some relating to the treatment of women workers and some alleging wage theft through various means.
In 1914, Henry Ford paid his workers $5 a day. It was a move that truly helped create the middle class. Five dollars in 1914 is $118 today, although that would only add up to a $35,000-a-year salary for a six-day workweek, which is well below our current medium income.
What some forget about Ford is that he had ulterior motives: He wanted to mold his workers into what he considered model Americans. WalMart has ulterior motives as well: It wants to mold your perception of it until you see a model American corporation.
If WalMart is a model corporation, the model is broken.
By: Michael Maiello, The Daily Beast, February 20, 2015
“Far Exceeding Necessity, Formal Budgets And Good Taste”: Report Blasts Israel’s Netanyahu For Lavish Personal Spending
In a scathing report with potential political and criminal repercussions, Israel’s state comptroller sharply criticized Prime Minister Benjamin Netanyahu on Tuesday for excessive spending of public funds in his official and private residences.
The highly anticipated report, which came just four weeks before Israeli elections, faulted Netanyahu and his wife, Sara, for using public funds to spend lavishly on a variety of personal goods and services, including cleaning, clothing, water and grooming, between 2009 and 2012. The spending dropped after that.
Netanyahu defended his behavior, but political opponents seized on the report. Labor Party leader Isaac Herzog said he found the findings infuriating.
“But it is not because of how you conduct yourself in your homes that the public wants to replace you, but because you have destroyed our home,” Herzog wrote on Facebook. “We will replace you because on your shift, Hamas grows stronger … young couples cannot buy a house … because you eat a $5,000 breakfast when every third child in Israel goes to bed hungry.”
The Netanyahus live and work in the official prime minister’s residence in Jerusalem and keep a private home in Caesarea, one of the country’s priciest spots. According to the report by Comptroller Joseph Shapira, spending on both often far exceeded necessity, formal budgets and good taste. In addition, the report pointed to improprieties in management of finances, human resources and external contractors.
When Netanyahu took office in 2009, expenses at both residences totaled roughly a half-million dollars a year. By 2011, that had roughly doubled before dropping to about $600,000 in 2013. Food and hosting expenses alone started out at about $55,000 and more than doubled to about $125,000 in 2011. After a modest cut in expenses the following year, expenses for 2013 dropped to near the 2009 level.
Cleaning both residences came with a particularly high price tag: a monthly average of about $20,000 between 2009 and 2013, including more than $2,000 a month for the Caesarea house, which was usually empty. Shapira found this spending “significantly exaggerated.”
About $20,000 a year was spent to order meal deliveries, despite employing an in-house cook. These and other expenses, Shapira wrote, were “not compatible with the basic principles of proportionality, reasonability, economy and efficiency.”
Personal grooming expenses for the prime minister and his wife totaled well over $100 a day, which Shapira found to be more than double the budgeted amount.
Some of the findings could lead to criminal proceedings. According to the report, Sara Netanyahu finagled employing an electrician who was barred by protocol because he was a personal friend and a member of the prime minister’s political party, Likud.
Justice authorities will have to decide how to address other breaches, including money kept temporarily from recycling bottles from the official residence several years ago and a set of patio furniture bought for the official residence but transferred to the private one. While these were noted in the report, they were not officially investigated.
“Public trust in government institutions is a cornerstone of every democracy,” Shapira wrote, adding that such institutions must gain this trust by adhering to both law and “moral norms.” While he welcomed the apparent cost-cutting after 2012, the comptroller said “one would expect an elected public official to demonstrate extra sensitivity … and serve as an exemplary model of saving public funds.”
Netanyahu was well-prepared for the report, as his attorneys and aides responded swiftly with a press conference, stressing there were no grounds for criminal concerns. The prime minister, said his spokesman, Nir Hefetz, respects the report and has instructed his staff to act on its recommendations.
A statement from Netanyahu’s Likud party accused the news media of pushing the issue for weeks in a “clear effort to remove the prime minister from office … through a focus on irrelevant minutia.”
The statement added that the uproar was distracting from “the real issue at hand,” which is “who will defend Israel in the face of the real security threats and pressure from the international community” — Netanyahu or rivals Herzog and Tzipi Livni.
But for others, money matters are a real issue, and the prime minister’s spending has struck a nerve with some voters who are concerned about the high cost of living and are demanding what they consider a more just distribution of resources.
Housing prices have soared since Netanyahu took office, and with 1.6 million people below the poverty line, Israel has the third highest poverty rate in the 34-nation Organization for Economic Cooperation and Development.
By: Batsheva Sobelman, Special Correspondent, Los Angeles Times (TNS); The National Memo, February 17, 2015
“More Worried About Their Reputation”: Republicans Don’t Really Care About Inequality
The Republican Party appears to accept that poverty and the inequities of wealth and political power that have prevailed over the last 15 years are issues it can no longer ignore. Not without paying a price. After all, Mitt Romney’s cool indifference to the everyday struggles of working Americans went a long way toward sinking his 2012 campaign.
But expressing concern about inequality is one thing. Doing something about it is another. The GOP so far appears more worried about its reputation as being the party of the very, very rich, than the empirical reality of its being the party of the very, very rich.
At a recent Republican gathering, Senator Ted Cruz of Texas gave voice to the party’s incongruity of perception and reality. “I think Republicans are and should be the party of the 47 percent,” he said. Later at that same event, billionaire brothers Charles and David Koch announced plans to spend nearly $1 billion through their political network in the next race for the White House, with virtually all of it going to the Republican Party’s nominee.
If the GOP were truly troubled by historic rates of income and wealth inequality, it would rubber-stamp President Barack Obama’s plan to raise taxes on the wealthy and use the proceeds to fund infrastructure projects like roads, bridges, waterways, and sewer systems. Public investments like these have historically garnered broad support, because they are neutral vehicles for achieving the goals of statecraft. Such expenditures would not only create hundreds of thousands of seasonal jobs, as well as many thousands of permanent jobs, but also stimulate economic activity on a national scale. And they’d pay for themselves over time.
The president’s $4 trillion fiscal budget would tap into offshore accounts and Wall Street transactions that only the very, very rich possess and thus care about. In addition to public works, which Obama has been calling for since his took office, increased revenues would be used for free community college and universal child care.
This, or something like it, is what serious people talk about if they are serious about combating inequality. Progressive redistribution, however bitter-tasting the phrase may be, must be on the table. But all we are likely to hear, especially from Republicans aiming high, are platitudes steeped in conservative morality, homilies to the power of private enterprise freed from the bonds of bureaucratic red tape, or the benefits of cutting taxes. Really. Anything. Anything at all to avoid tax hikes even on the treasonous few who hide their money offshore.
All one needs to do to see the difference between what Republicans are saying and Republicans are doing is look at the current session of Congress. The very first item on Senate Majority Leader Mitch McConnell’s to-do list was passing a bill authorizing the construction of the Keystone XL Pipeline. That project would indeed create thousands of seasonal jobs, but only about 40 permanent ones. It would have virtually no impact on the U.S. economy. Moreover, the public would get nothing in return, unless you count greater levels of global warming.
That’s not to mention other items being pushed which have nothing to do with serving the greater good. A short list: House Republicans have introduced legislation to restrict abortion (the melodramatically titled “fetal-pain bill”), to dismantle part of the Dodd-Frank financial reform law, and to starve to death the president’s modest executive action on illegal immigration.
Even if the Republicans really did believe, as Jeb Bush is trying to convince us, that addressing inequality is the right thing to do, don’t bet on any action. Doing the right thing had rarely been an incentive, because this is a party now committed to total warfare against Obama and the Democratic agenda. The only way the Republicans will take action on inequality is if they are forced to, but even then, they’ll likely do everything short of raising taxes on the very, very rich.
That’s why we should keep our eyes on the minimum wage and paid sick leave. House Speaker John Boehner has said he’d rather kill himself than raise the minimum wage. Conservatives are poised to attack Republicans entertaining mandated sick days. But in terms of inequality, these are the easiest ways to say you’ve done something without raising taxes on the very, very rich.
So yes, inequality is emerging as a major issue in the 2016 presidential race, and Jeb Bush, Ted Cruz and others are going to try hard to convince us that the Republican Party cares, really cares, about the plight of the poor and an ever-shrinking middle class. But remember the last time a major candidate talked about such “compassionate conservatism.” By the end of his second term, the greatest beneficiaries of that compassion were the very, very wealthy.
By: John Stoehr, Managing Editor of The Washington Spectator; The National Memo, February 6, 2015
“Rand Paul’s Prevarication Problem”: Afflicting The Afflicted & Comforting The Comfortable
Last week I called Sen. Rand Paul the most interesting man in Republican politics, and I still think that’s true. I also expressed some anxiety about the threat he could pose to the Democratic presidential nominee in 2016. That’s subsiding. In the last week Paul’s been caught in some big fibs, degrading struggling workers while defending the Koch brothers. That’s an interesting guide to his values.
Like all the GOP contenders, Paul is now talking piously about the problem of poverty, which modern Republicans have discovered because Barack Obama hasn’t made it go away. You can almost hear the briefing from a Frank Luntz type: “He’s the first black president, and he hasn’t ended poverty! Not even black poverty!” It also lets them slyly play on the notion of Obama as a privileged, uppity Ivy Leaguer – a “snob,” in Rick Santorum’s parlance — who doesn’t care about the poor or working class.
Whatever you say, Mitt Romney.
I still give Rand Paul some credit for identifying the criminal justice system as a source of black disadvantage. And if he ever figures out something meaningful to do about it, I promise to revise my thinking about him as mostly an opportunist. But when it comes to policies that might ease either poverty or the suffering of the working and middle classes, Paul learned at his father’s knee that government is the bad guy – and that slackers and moochers are playing the system and exploiting the rest of us.
That’s why he shamefully claimed that most recipients of Social Security Disability Insurance are faking it. “Over half of the people on disability are either anxious or their back hurts,” he told New Hampshire voters. The Washington Post fact checker showed the “back pain” disability category he cited included everything from muscle strain to amputations, while the “anxiety” number included conditions like bipolar disorder and schizophrenia. He got three Pinocchios for that one.
A few days later, asked whether he supports a time-honored GOP alternative to welfare, the Earned Income Tax credit for the working poor, he insisted the program is fraud-ridden – which it is not. Speaking to the Koch Brothers’ Freedom Network Chamber of Commerce event Sunday, Paul claimed the EITC has a “fraud rate” of 25 percent that costs taxpayers “$20 billion to $30 billion a year.” He cited a report from the Government Accountability Office, but Factcheck.org found “that’s not what the report said.”
The program did have an “improper payment rate” of 24 percent, but that includes worker filing errors and IRS paperwork problems that are largely attributable to the complexity of the tax law itself. Such payments cost $14.5 billion, less than half of Paul’s high end estimate.
Of course those slackers and moochers stand in sharp contrast with those hardworking and honest Americans, Charles and David Koch (who just revealed they’ll spend $900 million on the 2016 races). Paul took up their cause a couple of days later on Fox Business Network, defending them from “liberal haters” and claiming their advocacy “has nothing to do with government.” Paul went on:
I defy any of the liberal haters that are out there to find one instance when they have ever asked for a subsidy or a special government break. I have never heard of any and what they’re wanting is to be left alone, like most businesses in our country.
The folks at American Bridge took up the challenge, and found dozens of ways the Kochs have “asked for a subsidy or a special government break.” Last year in particular Koch Industries ramped up its lobbying efforts, according to OpenSecrets.org, spending $4 million in the third quarter of 2014 alone, largely on issues of “the environment, oil and financial policy.” An energy and environment trade publication found “that amount of lobbying money makes Koch Industries one of Washington, D.C.’s biggest influence spenders so far this year, outranking energy competitors such as Exxon Mobil Corp.”
But it didn’t start in 2014. A 2011 report by the Center for Public Integrity found that Koch Industries “spends tens of millions of dollars to influence every facet of government that could affect its global empire,” working through trade organizations whose names – the National Environmental Development Association, for instance — obscure their goals. They’ve lobbied heavily against carbon control and the use of lower-carbon fuels, and against federal regulation of toxic chemicals. They also pushed unsuccessfully to protect the expiring Bush tax cuts.
It’s good to know that Paul will trounce sick and struggling working people and come to the aid of gazillionaires. That doesn’t make him “the most interesting man in politics;” it makes him a standard issue Republican. Ralph Nader has told the left it should support Paul in 2016 because of his anti-war rumbling (though lately he’s criticized his wobbling on the issue), but anyone who takes Nader’s advice after 2000 probably isn’t serious about issues of war or justice anyway.
By: Joan Walsh, Editor at Large, Salon, January 29, 2015
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