“The Real Job Killers”: Forget What Republicans Say, The Real Job Killers Are Lousy Jobs At Lousy Wages
House Speaker John Boehner says raising the minimum wage is “bad policy” because it will cause job losses.
The U.S. Chamber of Commerce says a minimum wage increase would be a job killer. Republicans and the Chamber also say unions are job killers, workplace safety regulations are job killers, environmental regulations are job killers, and the Affordable Care Act is a job killer. The California Chamber of Commerce even publishes an annual list of “job killers,” including almost any measures that lift wages or protect workers and the environment.
Most of this is bunk.
When in 1996 I recommended the minimum wage be raised, Republicans and the Chamber screamed it would “kill jobs.” In fact, in the four years after it was raised, the U.S. economy created more jobs than were ever created in any four-year period.
For one thing, a higher minimum wage doesn’t necessarily increase business costs. It draws more job applicants into the labor market, giving employers more choice of whom to hire. As a result, employers often get more reliable workers who remain longer – thereby saving employers at least as much money as they spend on higher wages.
A higher wage can also help build employee morale, resulting in better performance. Gap, America’s largest clothing retailer, recently announced it would boost its hourly wage to $10. Wall Street approved. “You treat people well, they’ll treat your customers well,” said Dorothy Lakner, a Wall Street analyst. “Gap had a strong year last year compared to a lot of their peers. That sends a pretty strong message to employees that, ‘we had a good year, but you’re going to be rewarded too.’”
Even when raising the minimum wage — or bargaining for higher wages and better working conditions, or requiring businesses to provide safer workplaces or a cleaner environment — increases the cost of business, this doesn’t necessarily kill jobs.
Most companies today can easily absorb such costs without reducing payrolls. Corporate profits now account for the largest percentage of the economy on record. Large companies are sitting on more than $1.5 trillion in cash they don’t even know what to do with. Many are using their cash to buy back their own shares of stock – artificially increasing share value by reducing the number of shares traded on the market.
Walmart spent $7.6 billion last year buying back shares of its own stock — a move that papered over its falling profits. Had it used that money on wages instead, it could have given its workers a raise from around $9 an hour to almost $15. Arguably, that would have been a better use of the money over the long-term – not only improving worker loyalty and morale but also giving workers enough to buy more goods from Walmart (reminiscent of Henry Ford’s pay strategy a century ago).
There’s also a deeper issue here. Even assuming some of these measures might cause some job losses, does that mean we shouldn’t proceed with them?
Americans need jobs, but we also need minimally decent jobs. The nation could create millions of jobs tomorrow if we eliminated the minimum wage altogether and allowed employers to pay workers $1 an hour or less. But do we really want to do that?
Likewise, America could create lots of jobs if all health and safety regulations were repealed, but that would subject millions of workers to severe illness and injury.
Lots of jobs could be added if all environmental rules were eliminated, but that would result in the kind of air and water pollution that many people in poor nations have to contend with daily.
If the Affordable Care Act were repealed, hundreds of thousands of Americans would have to go back to working at jobs they don’t want but feel compelled to do in order to get health insurance.
We’d create jobs, but not progress. Progress requires creating more jobs that pay well, are safe, sustain the environment, and provide a modicum of security. If seeking to achieve a minimum level of decency ends up “killing” some jobs, then maybe those aren’t the kind of jobs we ought to try to preserve in the first place.
Finally, it’s important to remember the real source of job creation. Businesses hire more workers only when they have more customers. When they have fewer customers, they lay off workers. So the real job creators are consumers with enough money to buy.
Even Walmart may be starting to understand this. The company is “looking at” whether to support a minimum wage increase. David Tovar, a Walmart spokesman, noted that such a move would increase the company’s payroll costs but would also put more money in the pockets of some of Walmart’s customers.
In other words, forget what you’re hearing from the Republicans and the Chamber of Commerce. The real job killers in America are lousy jobs at lousy wages.
By: Robert Reich, The Robert Reich Blog, February 28, 2014
“Counting Dollars And Cents”: For Whatever Reason, Jan Brewer Does The Right Thing
The writing was on the wall all week. Arizona Gov. Jan Brewer had no choice but to veto SB 1062, which would have let businesses discriminate against gay patrons (and presumably others) on religious grounds. The veto was demanded by businesses: from the NFL, sponsors of the Arizona-bound 2015 Super Bowl, to Apple to American Airlines to JPMorgan Chase. Even GOP lawmakers who voted for the bill began quailing and taking back their votes shortly after casting them.
Brewer, who has shown independence from her Tea Party base before, particularly on accepting Medicaid expansion, proved to be up to this challenge, too.
The Arizona Tea Party governor vetoed the bill, she said, because of its “unexpected and unintended consequences. The legislation seeks to protect businesses,” she wrote, “yet the business community overwhelmingly opposes the proposed law.” The bill, she said, “could create more problems than it purports to solve.”
Indeed. The proposed Arizona law shows how quickly America’s corporate leaders, and even some Republicans, have counted dollars and counted votes and realized that power lies with gay people and their straight allies who can’t stand anti-gay bigotry – and won’t patronize those who are selling it.
Even as Arizona Republican politicians like Sens. John McCain and Jeff Flake declared their enduring fealty to the sanctity of man-woman marriage, they could oppose SB 1062 because of the business backlash. This is a stunning turnaround from 10 years ago, when Karl Rove encouraged Republicans to put anti-gay-marriage measures on state ballots to turn out the right and buoy George W. Bush’s reelection against John Kerry in 2004. There was no downside for Rove 10 years ago.
That was the same year that San Francisco Mayor Gavin Newsom became persona non grata even to some Democrats for legalizing gay marriage in San Francisco. From Dianne Feinstein to Barney Frank, Newsom got pummeled for promoting too much gay freedom too soon. But just 10 years later, a far-right governor of a changing but still conservative state thinks she has to veto this gay Jim Crow law that businesses are smart enough to oppose.
Let’s celebrate. But let’s also look plainly at how Democrats have won the culture war but are still fighting a grim conflict over economic populism – including, sometimes, against other Democrats. I look forward to the day when businesses lobby for a hike in the minimum wage and universal preschool and higher tax rates for those at the very top, and Republicans like Jan Brewer face the fact that they have to relent. It may be a long time coming. But let this victory remind us what a difference even 10 years can make, on an issue that was once a loser for Democrats. May we catch up on issues of poverty, income inequality and economic opportunity just as quickly.
By: Joan Walsh, Editor at Large, Salon, February 27, 2014
“Morally And Legally, The Right Call In Arizona”: Citizens Cannot Opt Out Of Civil Rights Laws
There’s no question that Jan Brewer did the right thing yesterday. No moral question. And no legal question either. Well, let me slightly amend that: With this Supreme Court, you never know about the future. But we know about the past, and decades of civil-rights case law are squarely on Brewer’s side, and supporters of SB 1062 just have to see this clearly and squarely and accept it.
It’s not like we’ve never fought over these questions. We have, of course, and a result, there’s a history here. And that history, that body of court decisions, says clearly, like it or not, that generally speaking, citizens cannot opt out of civil rights laws.
As Harvard law professor Noah Feldman pointed out yesterday in a Bloomberg view column, segregationist business owners in the South argued after the civil rights act of 1964 that their “constitutional right to associate” as they chose should permit them not to serve black customers. (The religious-liberty right, Feldman notes, has the same “constitutional status” as the right to associate.) But courts never said that this was permissible.
We may laugh today at the idea that the racist owner of a hardware store in Natchez in 1965 could have refused to sell a black carpenter a bag of masonry nails. But it was no laughing matter then. This was real. Congress, and then the courts, put a stop to it. As Feldman told me yesterday in a follow-up exchange: “Freedom to associate and exercise religion are basic rights. Excluding customers isn’t.”
The freedom to associate that Feldman mentions is one carve-out that courts have recognized. But that’s a narrow exemption, intended in real life mostly for private or fraternal organizations that are built around some idea of ethnic cohesion—New York’s Ancient Order of Hibernians, for example, which quite famously has been allowed for years to ban gay people and groups from marching in the city’s St. Patrick’s Day Parade.
By the way, doesn’t it seem weirdly anachronistic and reactionary that the Hibernians still enforce this ban? The gay-rights position was controversial back in the early ’90s, when I was covering these things. Now, the Hibernians’ position seems like something better suited to Alabama than New York City. In any case, after Rudy Giuliani and Mike Bloomberg marched in the discriminatory parade every years, new Mayor Bill De Blasio announced that he’s boycotting it.
But, the Hibernians are allowed to do this under their right to associate. There also exists a so-called “Mrs. Murphy” exemption to the Fair Housing Act for owner-occupied rental housing of four or fewer units—that is, if little old Mrs. Murphy subdivided her big house and wants to keep out certain people, she’s probably allowed to do that. And finally, in certain narrow cases, religious institutions that serve mostly religious purposes are allowed to hire only their coreligionists.
But a business vending to the general public? No way. If these “Christians” in Arizona are permitted to deny their services to same-sex couples, then atheist small-businesses owners in Berkeley are perfectly within their rights to hang a sign: “No Christian evangelicals served.” It would be crazy for courts to open that door.
Brewer seemed to understand all this properly with the money passage of her statement yesterday: “Senate Bill 1062 does not address a specific or present concern related to religious liberty in Arizona. I have not heard one example in Arizona where a business owner’s religious liberty has been violated.” She deserves credit for saying this, dismissing this specious religious liberty talk.
The legal history is clear. The legal future, though, is still a bit up in the air. Feldman acknowledges that SB 1062 “may well be constitutional” because the law’s supporters might be able to argue successfully that their tradition of religious liberty is “in jeopardy.” Samuel Bagenstos, a former assistant attorney general for civil rights under Barack Obama who now teaches law at the University of Michigan, explains that the Arizona law and others like it around the country constitute a new and not-yet-settled legal battle front. “These laws, by singling out gays and lesbians for less protection of antidiscrimination laws, are vulnerable to a challenge under the Equal Protection Clause,” Bagenstos says. “But the law’s very much developing in this area, so we really can’t say anything with confidence.”
It’s developing, but it’s mostly developing on the side of shutting down legal discrimination. Ask the Texas judge who yesterday struck down that state’s same-sex marriage ban, writing “that state-imposed inequality can find no refuge in our United States Constitution.” Increasingly, the law is coming to understand what more and more Americans understand. Gay people are equal. Period. There is no real religious basis for thinking otherwise. Ian Millhiser of Think Progress reminded us yesterday of people who used to think the same way:
In 1901, Georgia Gov. Allen Candler defended unequal public schooling for African Americans on the grounds that “God made them negroes and we cannot by education make them white folks.” After the Supreme Court ordered public schools integrated in Brown v. Board of Education, many segregationists cited their own faith as justification for official racism. Ross Barnett won Mississippi’s governorship in a landslide in 1960 after claiming that “the good Lord was the original segregationist.” Senator Harry Byrd of Virginia relied on passages from Genesis, Leviticus and Matthew when he spoke out against the civil rights law banning employment discrimination and whites-only lunch counters on the Senate floor.
It’s painfully obvious that in a mere 10 or 15 years, that’s how these Arizona Christians will be widely seen. They really ought to ask themselves if that’s the historic company they want to keep.
By: Michael Tomasky, The Daily Beast, February 27, 2014
“Night Of The Living Bigots”: Religious Discrimination Laws Are Just Zombie Jim Crow, Legalizing Anti-Gay Prejudice
Back in November, I wrote this piece on so-called “religious discrimination.” In short, a florist in Washington state refused to sell flowers to a gay couple for their wedding because it violates her religion. That’s right, she claims she won’t engage in the for-profit business of commerce because her religion tells her not to for certain groups of people. To quote “South Park’s” Mr Mackey “mkay.”
Now I thought maybe this was just a one-off. I mean sure, there are going to be a few folks, a few businesses around the country who won’t serve black people or maybe someone won’t photograph a gay wedding. But these types of things are few and far between, not the norm in society right?
Actually, while they happen more than you may think, as a part of the whole of American society, this isn’t some widespread thing popping up all across the country. What is rearing its ugly head up is the conservative movement’s insistence on using state legislatures to fighti what they claim is gay marriage’s “attack” on family values across the country. Lawmakers in Arizona, Kansas, Idaho, Tennessee, South Dakota and Maine have all debated and/or passed “religious discrimination” bills to protect for-profit businesses from having to serve gays and lesbians. The Arizona legislature just yesterday passed legislation and it’s now on its way to Gov. Jan Brewer.
I know, I know, the states are the incubators of democracy, where great ideas come from but this, my friends, is pure unadulterated crap. Jim Crow was supposed to have died a long time ago but like some horrid episode of “The Walking Dead,” Zombie Jim Crow has arrived with a vengeance.
Do conservatives actually think it’s OK to deny someone a meal, a photograph or a flower arrangement by using God as their reason? Will national Republican leaders try to pass similar legislation in Washington, D.C. or is it better for this type of Jim Crow foolishness to remain under the radar screen (in other words in the state legislatures)? I wonder how Republican National Committee Chairman Reince Priebus feels about these types of bills being promulgated across the country. He is, after all, the national leader of the Republican Party right?
I really don’t have a problem if a business owner thinks I’m gay. I actually don’t have a problem if a business owner doesn’t like that I’m gay. But here’s the deal business owners of America: I have money and you have a for-profit business that opens its doors to the public. That means you that you don’t get to put up a sign in your window that says “We cater to heterosexual trade only” like this one from a Lancaster, Ohio business during Jim Crow. If I walk into your place of business and am willing to pay what you’re asking for your service or product, who I marry is none of your damned business. I’m a huge fan of equality. I don’t get to ask you if you’re a bigot and you don’t get to ask me if I’m, well, gay.
If you want to be a church, a non-profit or a private club, then you have the right to tell me you don’t want my money. That’s really stupid of you but hey, it’s your inalienable right to be stupid in America. I also have the right to tell my friends you don’t want my money because it’s gay money. And they get to tell their friends, and then we’ll treat you like we did Anita Bryant back in the 1970’s. That didn’t turn out so well for her.
I’m not angry about what’s happening in these state legislatures. I guess I shouldn’t be surprised frankly. Like I said, there are a lot of dumb people out there. But what no one in this country should be allowed to do is profit from bigotry. What no business in this country should be allowed to do is tell me their God tells them I’m a second-class citizen.
By: Jimmy Williams, U. S. News and World Report, February 21, 2014
“The Mad Men Problem At Home”: Closing The Wage Gap Begins With Remedying The Housework Gap First
When President Obama addressed the gender-based wage gap during his State of the Union address last week, women cheered and Congresswoman Rosa DeLauro even gave out high fives. Obama called on Washington and businesses to help women succeed at work and “do away with workplace policies that belong in a Mad Men episode.” However, the President forgot to name a key constituency in his call to help women succeed: husbands.
All the workplace policies in the world aren’t going to get women to parity unless we do away with our Mad Men-era policies at home, too. Despite the fact women are the sole or primary source of income in a record 40% of U.S. households, they still do the majority of housework and childcare. According to the Pew Research Center, during an average week[OK? The study, if I’m looking at the right one, seems to have measured weeks rather than days.], women spend more time cleaning, doing laundry, and preparing food then men do. Men, on the other hand, spend more time watching television than women do. And even in households where the woman is the sole breadwinner, the labor division is far from equal. Men who stay home average 18 hours of housework per week, while their working partners average 14. Stay-at-home mothers, though, average 26 hours of housework. Their working partners average just a third of that time. America has a housework gap, and it’s fueling the gender gap at work.
Research indicates there is a direct and negative correlation between housework and the wage gap. One theory, from research in The Journal of Human Resources, suggests this could be employers’ negative reactions to women who appear dedicated to household activities. It could also be that many employers believe mothers are less committed to their jobs than other employees, as Shelley J. Correll, a sociology professor at Stanford University, posits. As a result, employers are reluctant to hire them and offer them high salaries. The “mommy penalty” is real. The wage gap between mothers and non-mothers is greater than that between women and men, according to the advocacy group MomsRising.
It appears that in 2014, we have high expectations of what a woman can accomplish at work, but we still have 1950s expectations about her role at home. But it’s time to rethink and renegotiate who does what where. Men who have opted out of housework should lean in at home so their wives can lean in at work. And they should advocate for, and take advantage of, family-friendly policies such as paid sick days, paternity leave, and flex benefits in order to create a more equitable arrangement at home.
If we truly believe that, as Obama said, “when women succeed, America succeeds,” then we need to stop ignoring the housework gap. Laundry and dirty dishes may not be standard agenda items for our legislators and business leaders, but they should be. After all, a woman can’t have it all if she’s too busy doing it all.
By: Liz O’Donnell, Time, February 4, 2014
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