Tag Archives: economy

GOOD LABOR NEWS

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In the spirit of the holiday, three pieces of good recent labor news with good long-term implications as well:

The same week Wal-Mart announced its lowest profits in years, the launch of Robert Greenwald’s film “Wal-Mart: The High Cost of Low Price,” with thousands of showings nationwide was a huge success, as was WalmartWatch’s coordinated “Higher Expectations Week.” Last week showed definitively that just as battling the Wal-Marting of our economy has become a top priority of the labor movement, it’s moved into a position of prominence on the national radar as well. This issue is finally coming to be understood for what it is: the frontline in the struggle over whether democratic majorities or corporate ultimatums will shape our economy. And its potential to bring together feminists, environmentalists, unionists, trade activists, anti-sprawl activists, and immigrant rights activists is finally being realized in a way it hasn’t before. The foundations for a truly effective targeted international campaign are finally being laid. Also, my Mom is telling everyone she knows to shop at CostCo instead of Wal-Mart.

The AFL-CIO and the Change to Win Coalition announced a tentative compromise on the issue of non-AFL-CIO local participation in country and state labor federations. This was the first serious test of the ability of an American labor movement split for the first time in half a century between two competing federations to lay the groundwork to work together on common challenges at the local level. A compromise here – like the SEIU/ AFSCME anti-raiding agreement – bodes well for a future in which each federation pursues different national organizing strategies while pushing their locals to work together to push for progressive change and hold the line against anti-labor candidates, initiatives, and employers.

And Histadrut Head Amir Peretz unseated Shimon Peres as Head of Israel’s Labor Party. Much of the analysis in the wake of that election has understandably focused on its role in prompting Peres and Ariel Sharon to bolt from Labor and Likud, respectively, to form a “centrist” party of their own (it’ll be interesting to see what this means for Labor’s relationship the left-of-left-of-center Meretz Yachad party, itself the result of a recent merger). But Peretz’s ascension is historic in its own right, as it represents the reclamation of the Labor Party by Israel’s foremost Israeli labor leader. Peretz won by doing what few Israeli politicians have done much of recently: talking about issues beyond hamatzav (the situation, i.e., the Israeli-Palestinian conflict). That includes mounting unemployment, extreme poverty, and severe economic inequality largely mapped along lines of race and immigration status. These issues have only worsened from neglect, and Peretz’s ascension to head of Labor offers a real chance to put them back on the national agenda – and offers Labor a chance to pull impoverished voters away from more conservative parties, like Shas.

Happy Thanksgiving.

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PROGRESSIVE POPULISM

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Having suggested what I think are some of the very different concepts in play in the dominant discussion of populism, and argued that one that’s ubiquitous in those discussions – prejudice – is out of place, it’s only fair that I take a stab at setting forth what the concept of populism is that’s in play when I call myself a populist and urge the Democrats to take on the mantle and meaning of populism. I won’t bother to argue that the conception of populism I’ll put forth here is somehow more real or historically accurate than the others floating around. What I feel strongest about when it comes to how use the word itself is simply, as I said yesterday, that the conflation of populism and prejudice by economic elites is deeply disingenuous, reflects a deeply entrenched class bias, and underpins a long-term campaign to mark the majority unfit to govern and its criticism of corporate power rank demagoguery.

That said, here are a few of the contentions which I think underpin a progressive populism:

The contention that a healthy economy is one in which the benefits of growth and prosperity should be shared and spread across society.

The contention that a just economy is one in which working people exercise a meaningful voice in the conditions and rewards of their work and in economic policy within and between nations.

The contention that basic human freedoms and opportunities are universal rights, across lines of race, sex, class, and nation, and not provisional privileges.

The contention that the ability of individuals to connect the conditions and challenges of their own lives to those of others, and to their political ideals, has the potential to propel progress.

The contention that policy and democracy both suffer when certain sets of experience are driven out of public discourse.

The contention that for a politician to seek out and fight for more votes is not the moral equivalent of seeking out and fighting for more dollars.

The contention that a willful compact to preserve individual rights by entrusting certain decisions to more insulated institutions is different from and preferable to the unauthorized handover of decisions to enfranchised elites and experts.

The contention that the political victories which last are the ones with popular mandates.

WHERE ARE THE CATHOLIC WORKER POLS?

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As Matt Yglesias observes, the relative absence of economically liberal social conservative politicians isn’t based on any lack of voters with that set of views. Michael Lind has an interesting take on it in Up From Conservatism. I still don’t know where he got the idea that the number of Americans “who sincerely believe both that abortions should be outlawed and that there should be further massive tax cuts for the rich – is quite small” (maybe he’ll explain it over at TPMCafe). But setting aside Lind’s questionable demographic premises, I think there’s some truth to his argument that the scarcity of politicians who are socially conservative and economically liberal is related to the scarcity of members of the American elite, however defined, who are what Europeans would call “Catholic workers,” libertarians would call “authoritarians,” and Lind would call “national liberals.” Self-identified libertarians, on the other hand, are much better represented amongst the elite than amongst the American public.

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Nathan’s had a series of good posts recently the kind of social security reform we should all be behind: taking on the regressive income cap on the payroll tax so that Bill Gates no longer can finish earning his payroll contribution for the year long before he wakes up on New Year’s Day.  Payroll taxes are a huge chunk of the tax contributions made by low income Americans in the post-Reagan era, and that a CEO making millions a year pays no more in absolute dollars than an employee making $90,000 is an outrage we should be hearing much more about from the Democratic side of the aisle.  It’s time they did, because it would be good for the country and as Nathan observes, it would be good politics as well:

The argument against talking about a deal is reasonable as short-term politics: when your opposition is stumbling, let them fall on their feet. But that does buy the idea that there’s nothing wrong with Social Security that needs fixing. No, there is no funding crisis, but the reality is that social security is fundamentally a regressive tax…This has been a problem for decades and progressives never took proactive action to improve the situation. Which opened the door for this rightwing attack in the first place…We know that House Republicans won’t agree to elminating the payroll tax cap, so there is no danger that proposing it as a reform will be met with any real negotiation on the issue. But we can slam the conservatives for supporting such a regressive policy.

And since progressives don’t believe there is a crisis, we don’t think there needs to be any new revenue raised TODAY, so any rise in revenue from eliminating the payroll tax cap should be matched with an overall cut in payroll tax rates paid by average workers– probably equivalent to saving them 2-3% of their income. Yes, Dems should be proposing a TAX CUT! You want wedge politics, you’ve got it. Many progressives have pushed for raising the cap to cut payroll taxes over the years (see here), and we should not abandon pushing the idea just as national attention is on social security. Progressives are not going to revive their national fortunes by only playing defense and defending the status quo. They need to play political jujitsu to take ideas put on the national agenda by Bush and use that debate as a vehicle for selling a vision of better, more progressive alternatives. Otherwise, we may win a few rearguard fights, but we won’t move forward in building broader support for the changes WE want.

And as Nathan further notes, eliminating the cap will keep social security solvent for most of a century, while gaining many more voters than it would lost. The polling bears it out as well…

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As I see it, what Kerry needs to do tonight is call George Bush more strongly than ever on his out-of-touch mentality and non-starter agenda on the economy, healthcare, housing, homeland security, and foreign policy (really shouldn’t be hard to do given the mountains of evidence and the damning lived experience of Americans, so he better not screw it up), and connect personally with the voters in the room and thus vicariously with the ones on TV (doesn’t seem to be his strong suit, but I’m rooting for him).

Good news is, Bush can’t just make hopeful, earnest promises this time around. Unless, that is, he manages to convince America that he’s been born again again since the last debate, and so his record from his first term, like the way he spent the early part of his life, is off-limits. I honestly think a partial acknowledgement of some mistakes, domestically or abroad, would humanize Bush and pull some of his 2000 supporters back onto the reservation. But his strategists, based on the two debates so far, seem to think that would bring down the whole house of cards. So his marching orders seem to be denying all errors and pinning all problems on terrorism or Clinton. Which offers some great opportunities to John Kerry to take him down – if he knows how to use them.

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Spent the day in Pennsylvania’s Lehigh Valley with a horde of other labor folks from Connecticut and Pennsylvania talking to union members about Bush’s record and Kerry’s vision. It was a real energizing, inspiring time. One woman told me that we need to get Bush out so that we can “give money to working people, not oil rascals.” Another told me that, “My husband and I worked hard our whole lives to be able to retire like this, and I just worry about those young folks looking for work today – where are they going to find jobs? And what are they going to have to retire on? We need a President who understands what it’s like to be a working person.” She shared that she took offense as a Catholic at attempts to tar Kerry as a bad Catholic. “He doesn’t agree with abortion, but he doesn’t think it should be up to the government, and personally I think it’s wrong, but I’m not really in a position to tell those young women what to do. And what about all those men and women and children we’re killing in Iraq?”

And then I came home and got to top the day off by reading this:

With a solid majority of voters concluding that John Kerry outperformed George W. Bush in the first presidential debate on Thursday, the president’s lead in the race for the White House has vanished, according to the latest NEWSWEEK poll. In the first national telephone poll using a fresh sample, NEWSWEEK found the race now statistically tied among all registered voters, 47 percent of whom say they would vote for Kerry and 45 percent for George W. Bush in a three-way race…Four weeks ago the Republican ticket, coming out of a successful convention in New York, enjoyed an 11-point lead over Kerry-Edwards with Bush pulling 52 percent of the vote and the challenger just 41 percent. Among the three-quarters (74 percent) of registered voters who say they watched at least some of Thursday’s debate, 61 percent see Kerry as the clear winner, 19 percent pick Bush as the victor and 16 percent call it a draw. After weeks of being portrayed as a verbose “flip-flopper” by Republicans, Kerry did better than a majority (56 percent) had expected. Only about 11 percent would say the same for the president’s performance while more than one-third (38 percent) said the incumbent actually did worse that they had expected. Thirty-nine percent of Republicans felt their man out-debated the challenger but a full third (33 percent) say they felt Kerry won.

Kerry’s perceived victory may be attributed to the fact that, by a wide margin (62 percent to 26 percent), debate watchers felt the senator came across as more confident than the president. More than half (56 percent) also see Kerry has having a better command of the facts than Bush (37 percent). As a result, the challenger’s favorability ratings (52 percent, versus 40 percent unfavorable) are better than Bush’s, who at 49 percent (and 46 percent unfavorable), has dipped below the halfway mark for the first time since July. Kerry, typically characterized as aloof and out of touch by his opponents, came across as more personally likeable than Bush (47 percent to the president’s 41 percent).

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Some quick thoughts on Bush’s speech last night:

I’d say in terms of rhetoric, this was neither his best speech nor his worse. He’s much more comfortable, and more charismatic, talking about anecdotes than about policy. Speaking of policy, if Bush has a bold domestic agenda for a second term, it’s hard to believe this was it. Making it easier for small business to buy healthcare like big business, simplifying the tax code, replacing overtime, tort reform – none of these seems to qualify as a big new idea. And he left us hanging on a basic question:

How can America both be “rising” and going down into a “valley below”?

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Two questions for Arnold Schwarzenegger:

When you said last night that critics of the Bush economy are “girly-men,” did that include all the millions unemployed, underemployed, uninsured, underinsured, or impoverished, or just the ones who are talking about it?

If America has an empidemic of girly men, could it be that the terrorists have a good reason for opposing the liberation of women hich you talked so enthusiastically about?

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I’d say Kerry’s speech is comparable to Edwards’: it hiet each of the major points it needed to, with some good moments that were memorable in the short-term but seem un-likely to get re-aired on on C-SPAN at future conventions, and some low points too.

I’d say he did a largely effective job of talking sympathetically in about his own life in a way which personalized him while tying him to a national narrative and avoiding appearing self-aggrandizing or apologetic. His explicit gendering of his parents was irritating. His unapologetic ownership of the accomplishments of 60’s movements was gratifying. His refusal to mention gay liberation, or the gay community, was not.

It was good to hear the word “poverty,” but disappointing not to hear more about it, and particularly not to see Kerry’s support for raising the minimum wage and recognizing card count neutrality agreements touted as centerpieces of his economic plan. I did think he set forth his stance on the Bush tax cuts with admirable frankness and simplicity, and in a way which doesn’t leave the Republicans much room to maneuver.

I remain pleasantly surprised to see Kerry talking about spending more money on Head Start instead of the prison system, a welcome departure from Clinton’s strategy of apeing Republican rhetoric on crime. The fact that the line has the entire staff of The New Republic apoplectic is a good sign. Calling the “family values” crowd on not valuing families is well-deserved and long overdue. Reaching out to those who self-identify as people of faith is all well and good, but you don’t need to announce that you’re doing it. The Lincoln quote is one of the great ones in American politics, and put here to great use.

All that said, it’s an exciting night.

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Yesterday, one of the dozen or so folks out to support Bush amidst the few hundred of us there to protest as his motorcade passed yelled out “The economy’s the strongest it’s been in twenty years!”  Today the Times highlights one of the reasons it’s not true:

The amount of money workers receive in their paychecks is failing to keep up with inflation. Though wages should recover if businesses continue to hire, three years of job losses have left a large worker surplus.  “There’s too much slack in the labor market to generate any pressure on wage growth,” said Jared Bernstein, an economist at the Economic Policy Institute, a liberal research institution based in Washington. “We are going to need a much lower unemployment rate.” He noted that at 5.6 percent, the national unemployment rate is still back at the same level as at the end of the recession in November 2001.  Even though the economy has been adding hundreds of thousands of jobs almost every month this year, stagnant wages could put a dent in the prospects for economic growth, some economists say. If incomes continue to lag behind the increase in prices, it may hinder the ability of ordinary workers to spend money at a healthy clip, undermining one of the pillars of the expansion so far.

Thing is, those CEOs whose taxes Bush cut don’t change their spending patterns much based on fluctuations in income.  But the folks who are paying for that tax cut in the gutting of the social services they depend on sure do.

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Campaigning yesterday, John Kerry noted that the Bush Administration is touting it’s economic record and calling him pessimistic for criticizing it. “There’s no greater pessimism,” he retorted, “than to say that America can’t do any better than this.” He’s right, and the most recent disappointing job numbers underscore the point.