“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,
“Rubio’s Blast From The Past”: More Like A Paean To The Gilded Age Than A Plan For The Future
Marco Rubio, 43, kicked off his campaign yesterday by telling voters that he is the future and Hillary Clinton is the past. He is young, she is old. He is 21st century, she is 20th century.
But there is one very basic and glaring flaw with his argument: His views fit well into the 1800s, while Clinton’s views are modern and look very much like the America of today and tomorrow. Age isn’t everything, Marco.
Let’s try equal pay for equal work. Rubio is against the Lilly Ledbetter Act, while Clinton co-sponsored it. He voted twice against the Paycheck Fairness Act. Clinton is a strong supporter and became the lead sponsor when Tom Daschle left the Senate.
How about equal rights for the LGBT community and support for gay marriage? Rubio is solidly against gay marriage and supported not only the recent Indiana law on “religious freedom,” but even the Arizona version in 2013. He is consistently out of step. Clinton, of course, supports gay marriage and equal rights.
On the minimum wage, Rubio is not only opposed to it being raised but has said, “I don’t think the minimum wage law works.” Clinton favors raising the minimum wage.
On tax policy, Rubio has consistently supported the late 19th century, Gilded Age tax policy that benefited the wealthy at the expense of the middle class. Once again, his answer is to cut taxes for the wealthiest of Americans. According to the Washington Post, “If he wins his party’s nomination, though, Rubio will have to defend a tax plan that, while said to address the challenges of the middle class, includes a huge break that all-but bypasses the middle and greatly boosts the rich. It was a tax plan that was even too large for Romney himself to run on.” Rubio would eliminate all taxes on dividends and capital gains. That sounds like it was written by the robber barons of old to me. Clinton, of course, believes that kind of tax policy is the way of the past, not the wave of the future.
On one of the most critical issues of our time, climate change, Rubio again has his head in the sand, along with most of the other Republican candidates for president. Last May, he told ABC News that “I do not believe that human activity is causing these dramatic changes to our climate the way these scientists are portraying it. And I do not believe that laws that they propose we pass will do anything about it. Except it will destroy our economy.” Clinton, as we all know, supports efforts to combat climate change, such as the president’s Clean Power Plan.
So, who really has a vision for the future – on equal rights, on equal pay, on tax policy, on the environment – on where this country should be headed? And who does not learn the lessons of history, but seems condemned to repeat them, as if he were back in the 1800s?
If Rubio truly believes his views are appealing, maybe his slogan should actually be “Back to the Future.”
By: Peter Fenn, U. S. News and World Report, April 14, 2015
“Power And Paychecks”: There’s No Excuse For Wage Fatalism; We Can Give American Workers A Raise If We Want To
On Wednesday, McDonald’s — which has been facing demonstrations denouncing its low wages — announced that it would give workers a raise. The pay increase won’t, in itself, be a very big deal: the new wage floor is just $1 above the local minimum wage, and even that policy only applies to outlets McDonald’s owns directly, not the many outlets owned by people who bought franchises. But it’s at least possible that this latest announcement, like Walmart’s much bigger pay-raise announcement a couple of months ago, is a harbinger of an important change in U.S. labor relations.
Maybe it’s not that hard to give American workers a raise, after all.
Most people would surely agree that stagnant wages, and more broadly the shrinking number of jobs that can support middle-class status, are big problems for this country. But the general attitude to the decline in good jobs is fatalistic. Isn’t it just supply and demand? Haven’t labor-saving technology and global competition made it impossible to pay decent wages to workers unless they have a lot of education?
Strange to say, however, the more you know about labor economics the less likely you are to share this fatalism. For one thing, global competition is overrated as a factor in labor markets; yes, manufacturing faces a lot more competition than it did in the past, but the great majority of American workers are employed in service industries that aren’t exposed to international trade. And the evidence that technology is pushing down wages is a lot less clear than all the harrumphing about a “skills gap” might suggest.
Even more important is the fact that the market for labor isn’t like the markets for soybeans or pork bellies. Workers are people; relations between employers and employees are more complicated than simple supply and demand. And this complexity means that there’s a lot more wiggle room in wage determination than conventional wisdom would have you believe. We can, in fact, raise wages significantly if we want to.
How do we know that labor markets are different? Start with the effects of minimum wages. There’s a lot of evidence on those effects: Every time a state raises its minimum wage while neighboring states don’t, it, in effect, performs a controlled experiment. And the overwhelming conclusion from all that evidence is that the effect you might expect to see — higher minimum wages leading to fewer jobs — is weak to nonexistent. Raising the minimum wage makes jobs better; it doesn’t seem to make them scarcer.
How is that possible? At least part of the answer is that workers are not, in fact, commodities. A bushel of soybeans doesn’t care how much you paid for it; but decently paid workers tend to do a better job, not to mention being less likely to quit and require replacement, than workers paid the absolute minimum an employer can get away with. As a result, raising the minimum wage, while it makes labor more expensive, has offsetting benefits that tend to lower costs, limiting any adverse effect on jobs.
Similar factors explain another puzzle about labor markets: the way different firms in what looks like the same business can pay very different wages. The classic comparison is between Walmart (with its low wages, low morale, and very high turnover) and Costco (which offers higher wages and better benefits, and makes up the difference with better productivity and worker loyalty). True, the two retailers serve different markets; Costco’s merchandise is higher-end and its customers more affluent. But the comparison nonetheless suggests that paying higher wages costs employers a lot less than you might think.
And this, in turn, suggests that it shouldn’t be all that hard to raise wages across the board. Suppose that we were to give workers some bargaining power by raising minimum wages, making it easier for them to organize, and, crucially, aiming for full employment rather than finding reasons to choke off recovery despite low inflation. Given what we now know about labor markets, the results might be surprisingly big — because a moderate push might be all it takes to persuade much of American business to turn away from the low-wage strategy that has dominated our society for so many years.
There’s historical precedent for this kind of wage push. The middle-class society now dwindling in our rearview mirrors didn’t emerge spontaneously; it was largely created by the “great compression” of wages that took place during World War II, with effects that lasted for more than a generation.
So can we repeat this achievement? The pay raises at Walmart and McDonald’s — brought on by a tightening job market plus activist pressure — offer a small taste of what could happen on a vastly larger scale. There’s no excuse for wage fatalism. We can give American workers a raise if we want to.
By: Paul Krugman, Op-Ed Columnist, The New York Times, April 3, 2015
“Image Conflicting With His Actual Personality”: The Real Ted Cruz; Country Music, Harvard Law, And Tea Party ‘Populism’
Nobody who knows Ted Cruz — the Texas freshman senator who became the first official contestant for the Republican Party’s presidential nomination this week – doubts that he is very, very smart. That includes Cruz himself, whose emphatic confidence in his own superior intelligence has not always endeared him to colleagues and acquaintances (whose opinions of his personality are often profanely negative).
Yet while Cruz cleverly seeks to highlight the Tea Party persona that appeals to many Republican primary voters, he exposes the fraudulence of his ultra-right brand of “populism.”
Cruz announced his candidacy at Liberty University, a religious-right institution founded by the late Jerry Falwell. No doubt he chose the misnamed Liberty to underscore his commitment to the political attitudes – “anti-elitist” and often opposed to scientific and intellectual inquiry – that the late reverend represented. To Falwell, secular education and the Enlightenment tradition of free thought always seemed suspiciously irreligious; at Liberty, creationism is a required course, the Young Democrats are outlawed, and both students and faculty are rigorously censored.
What could someone like Ted Cruz, a vocal advocate of First Amendment rights, honestly think about a place like Liberty? Falwell’s school languishes far below the standards of educational achievement – including an undergraduate degree from Princeton and a Juris Doctor degree from Harvard Law School — that have always filled Cruz with pride. Sometimes with excessive pride, like when he reportedly told Harvard Law classmates that he intended to form a study group including only those who had attended Harvard, Yale, or Princeton as undergrads.
Josh Marshall, a journalist who attended college with Cruz, noted in Talking Points Memo that this bit of academic snobbery marked the future senator as a “pompous a**hole” at Harvard Law, “an amazing accomplishment since the competition there for that description is intense [his emphasis].”
In a further attempt to portray himself as a right-wing populist, Cruz now claims to be a country music fan – having changed preferences after 9/11, when he abandoned “classic rock” for country, which he suggested is more patriotic:
“My music tastes changed on 9/11. I actually intellectually find this very curious, but on 9/11, I didn’t like how rock music responded. And country music — collectively — the way they responded, it resonated with me. And I have to say just at a gut level, I had an emotional reaction that says, ‘These are my people. And ever since 2001, I listen to country music,” he told CBS News – without naming a single country artist or band.
Now every presidential candidate carefully cultivates a public personality by promoting and even adopting tastes that might resonate with desired constituencies. But there are few politicians whose image conflicts so sharply with his actual personality and real base of support.
Analyzing the Texan’s financial base as he entered the presidential arena, Bloomberg News revealed “surprising weakness when it comes to small donors.” Only 16 percent of Cruz donors gave less than $200, compared with 43 percent of the donors to his fellow Tea Party favorite Rand Paul. The funding that propelled him into the Senate came from groups like the billionaire-backed Club for Growth and the Washington-based Tea Party organizations underwritten by the Koch brothers with their oil billions. Having attended the same elite schools, the people writing those big checks must feel quite comfortable with Cruz.
Need anyone be reminded of the policies favored by such interests? They oppose raising the minimum wage, or even the existence of a minimum wage. They would gut Medicare, Social Security, and unemployment benefits, along with every other government program that supports the middle class. They would reduce their own taxes even more, while raising taxes on working families – all retrogressive ideas that even the average Republican rejects.
If that’s populism, Ted Cruz is truly a man of the people.
By: Joe Conason, Editor at Large, Featured Post, Editor’s Blog; The National Memo, March 27, 2015
“ALEC Cookie Cutter Legislation”: Wisconsin Anti-Union Bill Is ‘Word For Word’ From Rightwing Lobbyist Group
Scott Walker, the governor of Wisconsin who is considering a Republican presidential run, has promised to sign into law an anti-union bill targeted at the state’s private sector workers that is an almost verbatim copy of model legislation devised by an ultra-rightwing network of corporate lobbyists.
On Friday, Walker dropped his earlier opposition to a so-called “right to work” bill, which he had described as a “distraction”, signalling that he would sign it into law should it succeed in passing the Wisconsin legislature. Republican members are rushing through the provision, which would strip private sector unions of much of their fee-collecting and bargaining powers.
On Monday, the bill cleared a committee of the state senate. A vote of the full chamber is slated for later this week, and of the assembly early next month.
The resumption of union battles in Walker’s home state comes at an awkward time for the probable 2016 candidate, as he seeks to shift attention away from Wisconsin and towards a national political platform. On Thursday he will speak at the high-profile Conservative Political Action Conference (CPAC) in Washington, where he will seek to press home his recent meteoric rise from a relatively obscure midwest executive to a leading contender among top Republicans.
It has now been disclosed that the Wisconsin 2015 right to work bill is a virtual carbon copy of a model bill framed by the American Legislative Exchange Council (Alec). The council acts as a form of dating agency between major US corporations and state-level Republican lawmakers, bringing them together to frame new legislation favorable to big business interests.
The Center for Media and Democracy (CMD), which monitors the activities of Alec, has compared the Alec model bill and the new Wisconsin proposal and found them to be nearly identical.
“This bill is word for word from the Alec playbook, and that’s no surprise as the Wisconsin legislature is dominated by Alec members,” said the CMD’s general counsel, Brendan Fischer.
Walker too has close ties to Alec. He actively supported several Alec bills between 1993 and 2002, when he was a member of the Wisconsin assembly. On Sunday Alec posted to its Twitter feed a photograph of Walker with the Alec chief executive, Lisa Nelson, in which she said: “Great to be with Alec alumni @ScottWalker”.
The governor is no stranger to fighting unions. His current ascendancy is in part due to the national name recognition he gained when taking on public sector unions at the start of his first term in office, leading to headline-grabbling mass demonstrations.
To some extent, a renewal of such battles could play to his favour among the hardcore of rightwing Republicans who tend to determine the outcome of the party’s primary elections. On the other hand, any suggestion that Walker gave his backing to cookie-cutter legislation devised by a corporate lobbying group could hand the Democratic party valuable ammunition should Walker win the nomination and go on to face a general election.
He has already provided his opponents with considerable material for potential attack ads. In a recent trip to London to burnish his foreign policy credentials, he dodged a question about whether he believed in evolution. In December he got his “Mazel tovs” confused when he signed a letter to a Jewish constituent: “Thank you again and Molotov.”
The brewing union confrontation comes as Walker is increasing the pace of his exploratory activities around a 2016 campaign. The son of a preacher, he has been wooing evangelical Christian conservatives who are a key constituency in the opening caucuses of the presidential election in Iowa.
He has also stepped up meetings with prominent Republican donors.
The Wisconsin right to work bill is just one part of a nationwide push by Alec to undermine union power and rein in minimum wage levels. Twenty-four states currently have right to work laws and a rash of state legislatures are taking up the issue, partly under Alec’s encouragement.
By: Ed Pilkington, The Guardian, February 23, 2015
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