Daily Digest - August 20: Inequality Among Roots of Ferguson Unrest

Aug 20, 2014Rachel Goldfarb

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Ferguson's Race Injustices Have Their Roots in Economic Inequality (The Guardian)

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Ferguson's Race Injustices Have Their Roots in Economic Inequality (The Guardian)

Suzanne McGee ties the situation in Ferguson, MO to the severe economic inequality facing the Black community in the U.S., which she says limits Black access to political power as well.

Meet the Ordinary People Who Are Mobilizing Around Monetary Policy (WaPo)

Activist groups concerned with democratizing the discussion of monetary policy are sending low-wage workers to speak a Federal Reserve conference in Wyoming. Ylan Q. Mui reports.

The Tax Dodge That Has Plagued the U.S. for More Than a Decade (The Atlantic)

Joe Pinsker looks at the history of companies looking to reincorporate abroad to dodge U.S. corporate income taxes, and explains how the process has changed (and yet not) in the past decade.

  • Roosevelt Take: Roosevelt Institute Chief Economist Joseph Stiglitz proposes a full slate of corporate income tax reforms in his latest white paper.

Lagging Demand, Not Unemployability, Is Why Long-term Unemployment Remains So High (EPI)

In a new report, Josh Bivens and Heidi Shierholz argue that long-term unemployment is still a component of cyclical weakness in the economy from the recession, rather than a structural shut-out.

How to Save the Net: Don’t Give In to Big ISPs (Wired)

Netflix CEO Reed Hastings calls on the Federal Communications Commission to expand its focus to regulate the relationships between companies like his and the Internet service providers.

OSHA fines company $1M for violating truckers' hours-of-service rule (The Hill)

The Occupational Safety and Health Administration's fine is about protecting workers and the public, reports Tim Devaney. Trucker rest rules are in the limelight after high-profile crashes.

San Diego Defies Mayor, Raises Minimum Wage (CNN Money)

Katie Lobosco reports that the city council overturned the mayor's veto, approving a gradual minimum wage hike that ties the wage to inflation, as well as paid sick leave.

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Daily Digest - August 19: With Inequality, It's Women and Children First

Aug 19, 2014Rachel Goldfarb

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Among the Poor, Women Feel Inequality More Deeply (NYT)

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Among the Poor, Women Feel Inequality More Deeply (NYT)

The burden of inequality falls more heavily on poor women, says Patricia Cohen, because they are more likely to be raising a family and get little support for the "second shift" of household management.

Blame Employers, Not Workers, for Any Skills Gap, Economist Says (WSJ)

Josh Zombrun looks at a new working paper from a University of Pennsylvania economist, which argues that employers who complain about lack of skills are accountable for refusing to provide training.

The Hunger Crisis in America’s Universities (MSNBC)

Ned Resnikoff reports on how colleges across the country are tackling rising food insecurity. Many are looking to Michigan State University, home of an established campus food pantry, for guidance.

A Co-op State of Mind (In These Times)

Ajowa Nzinga Ifateyo looks at the rise of worker cooperatives in New York City in light of the City Council's new $1.2 million initiative to support and grow such enterprises.

What Does the Fed Have to do with Social Security? Plenty (AJAM)

Dean Baker notes that Federal Reserve policy can influence unemployment rates, and when more people work, especially in low- and middle- wage jobs, Social Security revenues increase.

How Outdated Parking Laws Price Families Out of the City (CityLab)

A-P Hurd argues that requiring developers to build parking lifts the costs of housing out of the affordable range for most families. Hurd looks at a more family-friendly urban housing model.

New on Next New Deal

Curbing Campus Sexual Assault is Not About the Money

Campus Network's Hannah Zhang responds to critics of the Campus Accountability and Safety Act who call the bill's fines outsized to the problem of sexual assault on campuses.

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Lenny Mendonca: The Inconvenient Truth About Inequality

Aug 13, 2014

The Next American Economy project brought together 30 experts from various disciplines to envision tomorrow's economic and political challenges and develop today's solutions. Their assignment: be bold, and leave the conventional wisdom -- and their own opinions -- behind. In today's video, Lenny Mendonca of McKinsey & Company discusses the groundwork that's been laid for a serious national debate about inequality -- and the forces working to silence it.

The Next American Economy project brought together 30 experts from various disciplines to envision tomorrow's economic and political challenges and develop today's solutions. Their assignment: be bold, and leave the conventional wisdom -- and their own opinions -- behind. In today's video, Lenny Mendonca of McKinsey & Company discusses the groundwork that's been laid for a serious national debate about inequality -- and the forces working to silence it.

"Thomas Piketty and Capital will be to this decade what Al Gore and An Inconvenient Truth were to the last decade," speculated McKinsey & Company Co Director Emeritus Lenny Mendonca. Piketty's findings on inequality are much discussed among academics and progressives; however, there is a set of vested interests preventing real policy discussion on the topic of inequality.

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Daily Digest - August 7: What Piketty's 'Capital' Means for Marginalized Americans

Aug 7, 2014Rachel Goldfarb

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How Gender Changes Piketty’s ‘Capital in the Twenty-First Century’ (The Nation)

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How Gender Changes Piketty’s ‘Capital in the Twenty-First Century’ (The Nation)

Roosevelt Institute | Campus Network National Director Joelle Gamble joins The Nation's roundtable on feminism and the economy to discuss how Piketty's findings affect women and people of color.

New York: Young Ideas for Social Cohesion (UBM's Future Cities)

Jordan Fraade writes about the Roosevelt Institute Summer Academy's NYC Policy Expo as an example of young people not just moving to cities, but developing policy to improve them.

The 1% May Be Richer Than You Think, Research Shows (Bloomberg)

Jeanna Smialek reports on new research that shows the wealth of the 1 percent to be significantly undercounted. She speaks to Roosevelt Institute Chief Economist Joseph Stiglitz, who isn't surprised.

Bank of America Offers U.S. Biggest Settlement in History (NYT)

In reaction to another case that turned out badly, Bank of America has offered a $16 billion settlement for its sale of toxic mortgage securities, write Ben Protess and Michael Corkery.

Cold Porridge For Regular People: The Myth of the Goldilocks Economy (TAP)

Robert Kuttner says that only the wealthy could consider this economic climate not too hot or too cold – for everyone else, there aren't enough jobs and wages are staying flat.

The Market Basket Protests And The American Worker (On Point)

Tom Ashbrook takes a close look at the protests happening at Market Basket supermarkets, in which the managers are pushing to keep a CEO who they feel has workers' best interests at heart.

New on Next New Deal

Progress, Yet No Progress: The Two Lines of Defense Against Too-Big-To-Fail

The largest banks' "living wills," meant to facilitate an orderly bankruptcy process, aren't good enough, and Roosevelt Institute Fellow Mike Konczal says that shows that Too-Big-to-Fail isn't entirely solved.

As Tech Advances, Big Business Will Reap the Benefits

In his video speculation for the Next American Economy project, Robert Litan of the Brookings Institution says that existing businesses are capturing the benefits of new technology, to the detriment of new firms.

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Daily Digest - August 5: Basic Needs Shouldn't Need to Be Bought

Aug 5, 2014Rachel Goldfarb

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The Real Solution to Wealth Inequality (The Nation)

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The Real Solution to Wealth Inequality (The Nation)

Roosevelt Institute Fellow Mike Konczal and Bryce Covert write that instead of trying to increase individuals' purchasing power, basic needs should just be taken off the market altogether.

Why Is the Economy Still Weak? Blame These Five Sectors (NYT)

Neil Irwin examines the possible causes for the underperformance of several economic sectors based on careful predictions of what their output ought to be in a healthier economy.

The NLRB-McDonald's Ruling Could be the Beginning of a Franchise War (LA Times)

Michael Hiltzik suggests that as the National Labor Relations Board places more responsibility on franchisors like McDonald's, those companies will try to pass costs to their franchisees.

A University President Gave up $90,000 to Give His Minimum Wage Workers a Raise (Vox)

By reducing his own salary, the interim president of Kentucky State University has ensured a raise from $7.25 an hour to $10.25 an hour for the school's lowest-paid workers.

As Congress Adjourns, GOP Declares “Omission Accomplished” (OurFuture.org)

Congress left for summer recess with the GOP having blocked almost everything from passing, but Richard Eskow also calls out the Democrats for failing to give them more progressive proposals to block.

The United States Needs Corporate 'Loyalty Oaths' (The Daily Beast)

"Non-desertion agreements" as requirements for federal contractors would help to ensure companies choose to pay U.S. corporate taxes, writes Jonathan Alter.

New on Next New Deal

Will Syracuse Become New York's Second Economic Capital?

In her video speculation for the Next American Economy project, Amy Liu, Co-Director of the Metropolitan Policy Program at Brookings, predicts cities will step up as drivers of innovation and investment.

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Education Left Behind

Jul 31, 2014Edyta Obrzut

Young people in Illinois recognize that many aspects of the state's education system are broken, and they have some first steps for improving it.

Young people in Illinois recognize that many aspects of the state's education system are broken, and they have some first steps for improving it.

“Part of what is at risk is the promise first made on this continent: All, regardless of race or class or economic status, are entitled to a fair chance and to the tools for developing their individual powers of mind and spirit to the utmost. This promise means that all children by virtue of their own efforts, competently guided, can hope to attain the mature and informed judgment needed to secure gainful employment, and to manage their own lives, thereby serving not only their own interests but also the progress of society itself’”   — A Nation at Risk, 1983

In August of 1981, Secretary of Education Terrell Bell chartered the National Commission on Excellence to review and synthetize scholarly research on public schools nationwide, with a special focus on the educational experience of teenage youth. In their report, A Nation at Risk, they promised a comprehensive change to the students, their parents, and teachers. Years after National Commission on Excellence’s promise was made, The Roosevelt Institute | Campus Network and Young Invincibles have banded together under the NextGen Illinois project in order to bring a youth-led agenda to state government officials. It is time to assess what has been done and what needs to be improved to completely fulfill the dream of equal access to the quality education and equality of opportunity for young people in the state of Illinois.

To that end, the NextGen project is hosting a series of caucuses across the state that offer an opportunity for young people to brainstorm and create a youth-lead policy agenda for the state of Illinois on issues that matter most to them. They foster discussion about state level politics and some of the most significant problems that are facing Illinois today. Through their participation, young adults offer their own insight about potential solutions to those problems that can result in positive change in their communities.

The NextGen project held its second caucus at DePaul University on Tuesday, May 27, where students pointed out several problems with the current education system in Illinois, including inequality in the distribution of education funding and challenges created by a centralized curriculum. In this system both teachers and students feel pressures created by the demands of accountability and insufficient resources.

Youth from the DePaul caucus further explained that demand for academic achievement and penalties for low-test scores have put extraordinary emphasis on accountability with both students and teachers being measured on their efficiency. The idea of consequences vs. high achievement creates a problem in which teaching in public schools is mostly directed toward test preparation rather than challenging and interesting classes. The lowest scoring schools are struggling with fewer funds and risk being placed on probation or being closed.

The use of standardized tests in high stakes decisions about the individual student is also problematic, as not all students receive an equal opportunity to learn. As recently as 2010, Illinois received a grade of F in equitable distribution of funds per pupil and in relation to the students’ poverty. Education funding distribution in Illinois has been assessed as regressive and unfair. And to make matters worse, in 2009, Illinois law makers cut assistance for P-12 education from the General Fund by more than $861 million (12%). Without addressing these problems, current practices focused on test scores and accountability may only deepen inequality. The top-down accountability model is shifting responsibility for the failure of the educational system from the state to the individuals and hurts not only teachers and parents, but most of all, kids. NextGen youth believe that market-style competition is not working well for them and that it is time to change it.

What can we do to get education back on track? Young people who participated in the caucus at DePaul argue that Illinois has to reevaluate its budget and increase funding for education. Students believe that improved support from the state to schools, granted on a per student basis, will be more effective. They believe that each student should have the same access to quality education and resources so youth can obtain proper preparation for college and competition on the job market. NextGen participants also stress the importance of early career exploration courses and financial counseling, which will help students in their life after high school.

Students’ commitment to the issue of improving the Illinois public schools demonstrates the significance of the problem. They emphasize that improving educational outcomes of students in Illinois requires an effective educational reform that can only take place by including parents, teachers, and most of all- youth into the policy making process. High rate of participation in the NextGen caucuses by Illinois youth proves that if we try hard, we can make a difference!

Edyta Obrzut is the NextGen Illinois Research Fellow for the Roosevelt Institute | Campus Network.

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Leadership Wanted: The College Access Crisis Needs You, Mayor de Blasio

Jul 31, 2014Kevin Stump

Focusing on programs that help at-risk college students achieve doesn't get them in the door, so the mayor must put more energy and funding into college access.

Focusing on programs that help at-risk college students achieve doesn't get them in the door, so the mayor must put more energy and funding into college access.

This time a year ago, New York City residents were knee-deep in sorting through the promising rhetoric offered by hopeful bureaucrats vying to become the next Mayor of New York City. "The Tale of Two Cities" – the signature campaign phrase that helped propel Bill de Blasio into becoming the next chief executive of America’s largest city – speaks to the severity of the economic inequality that exists in New York City and across the country.

Mayor de Blasio’s election was an overnight mandate for progressive reform, which greatly emphasized increasing resources for New York City’s schools. This year’s final New York City 2014 budget did take steps in the right direction by investing more in the City University of New York (CUNY) and programs like the Accelerated Study in Associate Programs and the Black Male Initiative to help the most at-risk students succeed while at college. These investments are necessary – especially given that 42 percent of CUNY community college students experience housing insecurity, 39 percent experience food insecurity, and 65 percent come from households with incomes less than $30,000.

However, let's be clear: the mayor is not placing equal priority on college access, a choice that is dangerously shortsighted and will be much more costly in the end. The programs and opportunities that at-risk New York City high school students have available to help them access college are just as important as the programs that help students after admission.

While most New York City high school students know that a high school diploma is no longer good enough, and acknowledge the need for a college degree, almost 70 percent of students believed that a high school diploma alone would adequately prepare them for college-level coursework. Yet only 25 percent of students are graduating college ready in New York City. Just 29 percent of high school graduates in the class of 2012 had test scores high enough to avoid remedial courses at the City’s public schools. What’s worse is that 74 percent of first-time freshmen entering CUNY community colleges needed remedial coursework in math, up 15 percent from 2002. Nearly three out of four high school students are either failing to graduate on time or lack the basic academic skills needed to hit the ground running at CUNY.

It is clear that the City should be doing more to help the most at-risk communities access college while simultaneously injecting the CUNY system with enough resources to effectively meet the demand.

There’s no debate: public higher education, while not perfect, is a proven and successful model to help socially and economically prepare young people to become life-long contributing citizens. However, the critical four years leading up to a young person's path to college can make or break a student’s college attainment. The Mayor should seize the opportunity and lead the nation’s cities and the people of New York to address this issue head on by jump-starting an inclusive public policy process that will lay out an aggressive plan for other cities across America to follow.

In addition to the obvious players like the NYC Department of Education, New York State Education Department, and CUNY, the Mayor must bring to the policy table local stakeholders like the College Access Consortium of New York and groups like the Goddard Riverside Community Center as well as national models such as College Track and key stakeholders like the Lumina Foundation to put New York City on a collaborative path to increasing college attainment and by doing so, tackling economic inequality.

To start, initial conversations should include how to best leverage existing government infrastructure and systems to think collaboratively and across agencies about policy solutions. For example, we could analyze programs offered by the New York City Department of Housing to integrate effective and proven programs in public housing facilities. The issue of college access is an intersectional problem and requires intersectional solutions. This issue requires Mayor de Blasio to employ a policy process that is inclusive, grounded in research and analysis, utilizes all the resources we have available, and injects even more resources to change this much-talked about but greatly under-addressed issue of college access or the lack thereof.  

Kevin Stump is the Roosevelt Institute | Campus Network Leadership Director.

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Roosevelt Reacts: NLRB Holds McDonald's Accountable for Labor Violations

Jul 30, 2014
Yesterday, the general counsel of the National Labor Relations Board ruled that McDonald's is a joint employer for the workers at its franchises, meaning that the corporation could be held liable for any labor and wage violations that occur at its individual restaurants.

The decision, says Roosevelt Institute President and CEO Felicia Wong...

Yesterday, the general counsel of the National Labor Relations Board ruled that McDonald's is a joint employer for the workers at its franchises, meaning that the corporation could be held liable for any labor and wage violations that occur at its individual restaurants.

The decision, says Roosevelt Institute President and CEO Felicia Wong, "rightly recognizes that, in today's changing and more fragmented workplace, workers still need the support and protections afforded by the law. Fast food workers are fighting for a wage that will allow them to care for their families and act as strong community members. This is an essential foundation for economic growth that benefits us all."

Adds Roosevelt Institute Senior Fellow Richard Kirsch, "The common sense ruling that McDonald's is as much one company in the way it treats its workers as it is when it makes a Big Mac is a major step toward holding the biggest corporations in the country accountable for creating jobs that boost the economy instead of busting it."

Read more about what the Future of Work Initiative is doing to promote policies that empower American workers and secure prosperity for all.

Image via Shutterstock

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Frank Levy: Through Innovation, People Will Live Longer and Earn Less

Jul 30, 2014

The Next American Economy project brought together 30 experts from various disciplines to envision tomorrow's economic and political challenges and develop today's solutions. Their assignment: be bold, and leave the conventional wisdom -- and their own opinions -- behind. In today's video, economist Frank Levy foretells tech and health care trends resulting in longer lifespans and lower earning potential.

The Next American Economy project brought together 30 experts from various disciplines to envision tomorrow's economic and political challenges and develop today's solutions. Their assignment: be bold, and leave the conventional wisdom -- and their own opinions -- behind. In today's video, economist Frank Levy foretells tech and health care trends resulting in longer lifespans and lower earning potential.

MIT professor Frank Levy speculates that in the next 25 years, health innovation will improve life spans while tech innovation reduces earning potential for many Americans, resulting in longer lives but no additional income. Add in the increasingly destructive consequences of climate change, and the middle class dream will become further and further out of reach. Triggered by resentment and fear, a new anti-technology movement will rise up with a bumper sticker slogan: "Another Luddite for Jobs."

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Daily Digest - July 28: Work Shouldn't Be a Threat to Working Families

Jul 28, 2014Rachel Goldfarb

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Poor Parents Need Work-Life Balance Too (The Nation)

Michelle Chen says that without the flexibility of scheduling offered by white-collar jobs, workers in the service industries face volatile schedules that disrupt family lives.

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Poor Parents Need Work-Life Balance Too (The Nation)

Michelle Chen says that without the flexibility of scheduling offered by white-collar jobs, workers in the service industries face volatile schedules that disrupt family lives.

Fast-Food Workers Intensify Fight for $15 an Hour (NYT)

At the largest convention of fast-food workers, Steven Greenhouse reports that workers approved escalated tactics, drawing on the nonviolent civil disobedience of the Civil Rights Movement.

Close the Tax Loophole on Inversions (WaPo)

Treasury Secretary Jacob J. Lew explains the need for immediate action to reform the tax code to limit companies' ability to avoid taxes by merging with foreign companies.

Fed’s Targeting of Asset Bubbles Leads to Contradictions (AJAM)

Bubbles might be necessary to obtain full employment, writes Philip Pilkington, but limiting bubbles is among the Federal Reserve's goals. Higher deficits or lower inequality could help.

New on Next New Deal

Two Tiers of College Tuition? Not on This Campus

Mohanned Abdelhameed, Vice President of the San Bernardino Valley Community College chapter of the Campus Network, explains why students rejected two-tiered tuition pricing models.

Inequality Could Spark a Second Civil War

In his speculation for the Next American Economy initiative, Roosevelt Institute Fellow Dorian Warren imagines a future in which national cohesion has disintegrated and a one-party civil oligarchy has taken control.

Quick Thoughts on Ryan's Poverty Plan: What Are the Risks?

Roosevelt Institute Fellow Mike Konczal says that Paul Ryan's wholesale adoption of the President's plan for the Earned Income Tax Credit shows the value of pushing further to the left.

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