Daily Digest - January 5: Time for Federal Regulations for Predatory Payday Loans

Jan 5, 2015Rachel Goldfarb

Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

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Roosevelt Institute Fellow Saqib Bhatti's proposal to allow the Fed to lend directly to municipalities is one of many ideas you can vote on in the Progress Change Institute's Big Ideas Project. The top 20 ideas will be presented members of Congress. Voting ends on Sunday, January 11. Click here to vote!

CFPB Sets Sights on Payday Loans (WSJ)

Alan Zibel reports on the Consumer Financial Protection Bureau's plans to explore creating new rules to regulate predatory payday lending, the first such rules on a federal level.

Signs of Economic Promise Are Offering Some Hope for the New Year (NYT)

Rachel Swarns reports on the positive signs that some are seeing, including new jobs for long-term job seekers and raises and more hours for workers at retail chains like Zara.

Don't Believe What You Hear About the U.S. Economy (AJAM)

Dean Baker says it's not yet time to celebrate an economic comeback. Growth is still slow enough that the labor market won't reach pre-recession numbers by the end of 2015.

Why the Democrats Need Labor Again (Politico Magazine)

Timothy Noah interviews Thomas Geoghegan on his new book, which he describes as a "last-ditch effort for the Democrats" to revive the labor movement and win elections.

California Colleges See Surge in Efforts to Unionize Adjunct Faculty (LA Times)

Larry Gordon speaks to adjunct faculty at some of the private colleges in California that are seeing union organizing on campus for the first time.

Austerity’s End Strengthens U.S. Recovery (MSNBC)

Steve Benen corrects Grover Norquist's attempt to give Republicans credit for economic growth, pointing to small increases in public spending as proof that austerity didn't fix anything.

The Five Major Things We Screwed Up in Inequality in 2014 (The Guardian)

Suzanne McGee's list includes the minimum wage, which she says needs a boost at a federal level, and race and economic opportunity, an issue she says we practically ignored.

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Daily Digest - December 16: Inequality Hurts our Children Most

Dec 16, 2014Rachel Goldfarb

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Inequality and the American Child (Project Syndicate)

Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

Inequality and the American Child (Project Syndicate)

Roosevelt Institute Chief Economist Joseph Stiglitz says the impact of economic inequality in the U.S. is even stronger on its children, who could be protected through the right policy changes.

Taxpayers Could be Liable Again for Bank Blunders (CBS News)

Erik Sherman speaks to Roosevelt Institute Fellow Mike Konczal about the modification to Dodd-Frank built into the spending bill. Mike says the changes come straight from the banks.

Progressives Just Lost a Fight on the Budget. So Why Are They So Happy? (TAP)

Paul Waldman suggests that GOP control of Congress is liberating to the more progressive Democrats, because they no longer have to compromise to pass Democratic legislation.

The Year in Inequality: Racial Disparity Can No Longer Be Ignored (AJAM)

Ned Resnikoff says solving American economic inequality will prove impossible without acknowledging the racial disparities brought on largely by inheritance and homeownership.

Economic Recovery Spreads to the Middle Class (NYT)

Nelson D. Schwartz says the U.S. economy is showing its very first signs of the wage gains that will be needed for the economic recovery to reach the middle class.

Even With a GOP Congress, Obama Could Still Defend American Workers. Here’s How. (In These Times)

David Moberg puts together a list of ten items that the president could accomplish using the Department of Labor, in particular by strongly enforcing the Fair Labor Standards Act.

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Daily Digest - December 5: Policy Created This Economy – And Policy Can Fix It

Dec 5, 2014Rachel Goldfarb

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The Poor Used to Have the Most Opportunity in America. Now the Rich Do. (WaPo)

Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

The Poor Used to Have the Most Opportunity in America. Now the Rich Do. (WaPo)

In the 1960s, the bottom 10 percent saw faster growth than the top 1 percent, but Matt O'Brien says policy has since promoted fundamental economic shifts that benefit the rich.

  • Roosevelt Take: Roosevelt Institute Chief Economist Joseph Stiglitz says that policy, in the form of tax reform, can fix the inequality in the U.S. economy.

Strong Voice in ‘Fight for 15’ Fast-Food Wage Campaign (NYT)

Steven Greenhouse profiles Terrance Wise, who works at a Burger King in Kansas City, MO and has become a leader in the fast food workers' movement over the past two years.

Apple and Camp Bow Wow: Sharing Strategies to Keep Wages Low (Working Economics)

Ross Eisenbrey ties non-compete clauses at low-wage jobs to tech companies' refusal to "poach" each other's workers: in both cases, corporate entitlement keeps wages down.

Chicago Raises Minimum Wage to $13 by 2019, But Strikers Say It’s Not Enough (In These Times)

Those who have been fighting for a $15-per-hour minimum wage are sticking to that number and accusing Mayor Emanuel of political opportunism, writes Will Craft.

Does the Media Care About Labor Anymore? (Politico)

Timothy Noah argues that strong labor reporting, taking a close look at workers and the labor movement's ideas, will be needed to get the economy back on track.

JPMorgan Said to Put Mortgage-Bond Trader on Leave Amid Scrutiny (Bloomberg)

Jody Shenn reports on the latest in a string of suspensions at JPMorgan, which is currently under strong regulatory scrutiny due to recent mortgage securities fraud cases.

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Universities Can Prevent the Race to the Bottom for Labor Standards

Dec 1, 2014Alan SmithJulius Goldberg-Lewis

Some of the negative changes in the workplace brought on by new technologies can be countered by institutions like universities setting higher standards.

Some of the negative changes in the workplace brought on by new technologies can be countered by institutions like universities setting higher standards.

The past 30 years have seen a revolution in communication and analytic technology, one that has begun to shape the nature of firms and the types of work that exist in the labor market. Internet communication technology (ICT) allows firms to share information across the world at speeds that are nearly instantaneous and practically for free. With this explosion of information has been a concerted effort on the parts of firms, governments, and individuals to capture and analyze the torrent of information being produced every second.

ICT is driving transaction costs to zero, and with it comes a hollowing out of traditional corporate infrastructure. Tasks that were once cheaper to do in-house can now be outsourced to private contractors in the U.S. or around the world. The firms that are most heralded as ‘the next big thing’ are no longer producers of widgets, but platforms that connect individuals. Facebook and Twitter do not provide content, but provide access; Uber and Lyft are not taxi companies, but rather platforms that connect individual demanders and suppliers. On the other side, incumbent firms are using ICT to develop to-the-minute data on sales patterns, allowing them to track exactly when and where their workers are needed. Whether it’s in the form of surge pricing‘just-in-time’ scheduling, or contracting out nearly every function of a company, the use of ICT has profound and evolving implications for consumers and workers.

With the explosion of technology has come a scramble to achieve maximum efficiency and minimal cost. As production expands horizontally, as opposed to vertically, Millennials are discovering that a life-long career simply can’t exist in a market that’s trending towards more and more freelance and contract work. One result of all this is that Millennials have begun to look to the stories of retirement parties and 30-year Rolexes as anachronistic Mad Men-style stories of an age long gone. We don't think of ourselves as working for the same place for long periods of time, and any notion of a pension or a retirement plan is hard to imagine. 

The second troubling effect of this is a lack of accountability of the largest and most powerful corporations. The old economic model of in-house labor allowed labor disputes, liability, and accountability to be tracked to a single corporate entity. As firms increasingly turn to specialized contractors to build their websites, staff their calling centers and warehouses, drive their taxis, and run their cafeterias, corporate responsibility becomes similarly defuse. When workers lose overtime pay at an Amazon fulfillment center, should the contractor or the parent company be at fault? Should the private contractor hold all the accountability, or should Amazon accept some responsibility? There is no sense that this new wave of "sharing economy" businesses is doing anything other then creating structured marketplaces, and skimming money off the top. This leaves the people doing the work – as Uber drivers and Airbnb hosts – without anything to hold on to. As firms continue to contract, and subcontract, the economic befits to workers shrink dramatically, and there is an increased incentive to cut costs and corners. These cases are just coming to the surface, and no doubt will shape the labor landscape immensely.

It is precisely because of this complex and rapidly changing social situation that anchor institutions like colleges and universities need to take the lead in providing wages and careers that make sense. Anchor institutions, which are generating more attention in the post-recession economy, are those mission-driven institutions that are large sources of capital, purchasing, and employment, and which are tied to their communities. Unlike traditional firms, an anchor cannot move to another country for lower taxes, and they are often public or receive large amounts of public investment. Anchors hold a special place in our society: they are not corporations governed by a single-bottom line reality, and their missions are often directed toward and even mandate the promotion of the social good.

They also have real economic clout: One classic anchor type, universities, account for approximately 3 percent of U.S. gross domestic product, and they employ more than 3 million people. The hospital industry has an even larger impact with some 5 million employees. And these anchor institutions, tied as they are to location, are perfectly positioned to end the race to the bottom that is happening in other sectors. They will be able to reap the benefits from more money being injected in a local community, and they will grow as the social safety net continues to grow around them.

Anchors, working together, can do more than create a few hundred jobs at good wages with a real retirement plan. Anchors working together can set strong city-wide baselines for wages, and serve as a driving factor for economic development, public safety, local purchasing, and quality-of-life initiatives. Further, anchors actually have a values-based, mission-driven call to this work. As Millennials become a greater share of the workforce, it is on us to ensure that the economy of the future is one that promotes responsibility, accountability, growth, and equality. The technological strides of the past few decades have been enormous, and while they have allowed businesses to continue on a race to the bottom, they have also connected and mobilized a generation. In order to shift the national dialogue, the Campus Network has always believed that one must start at the local level. In order to ensure that the businesses of the future work for everyone, it must be shown that they can. The global brand of anchor institutions, from top tier universities to pioneering hospitals, have the soapbox, the moral imperative, and the means to drive this change, and a more democratic economy can begin to grow based on the successes of anchor reinvestment.

Alan Smith is the Associate Director of Networked Initiatives at the Roosevelt Institute.

Julius Goldberg-Lewis is the Midwestern Regional Coordinator for the Roosevelt Institute | Campus Network and a senior at the University of Michigan.

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Daily Digest - November 26: What Are One-Day Strikes Achieving?

Nov 26, 2014Rachel Goldfarb

Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

The Daily Digest is taking a short break for Thankgiving. It will return on Monday, December 1.

Why Wal-Mart Workers Keep Using One-Day Strikes (Bloomberg Businessweek)

Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.

The Daily Digest is taking a short break for Thankgiving. It will return on Monday, December 1.

Why Wal-Mart Workers Keep Using One-Day Strikes (Bloomberg Businessweek)

Josh Eidelson explains that one-day strikes are on the rise because, while they don't shut down workplaces, they embarrass employers and engage the public just like work-stopping strikes of the past.

Exclusive: Kmart Workers Say They Risk Being Fired If They Don’t Come In On Thanksgiving (ThinkProgress)

Bryce Covert reports on the scheduling practices of some major retailers that will open on Thanksgiving. One Kmart employee she spoke to is quitting rather than miss Thanksgiving with her husband, who has cancer.

The Rich Are Getting Richer, But It Has Nothing To Do With Their Paychecks (Vox)

Salaries and wages of the top 400 taxpayers have fallen in recent years, reports Danielle Kurtzleben, but their incomes continue to rise, and their tax rates drop, thanks to capital gains.

San Francisco Passes First-In-Nation Limits on Worker Schedules (Politico)

Marianne Levine writes about the city's new restrictions on how chain stores can alter their employees' schedules. Changes within two weeks will require additional "predictability pay."

Obama Threatens Veto of Emerging Tax-Break Agreement in Congress (Bloomberg)

Richard Rubin reports on the president's opposition to this deal, which extends a set of corporate tax cuts but doesn't extend lapsing expansions of the child tax credit and earned income tax credit.

Why Living-Wage Laws Are Not Enough—and Minimum-Wage Laws Aren’t Either (The Nation)

Jonathan Lange, who led the first living wage campaign in Baltimore, says that without building worker power more generally, these laws fall short.

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Artisanal Millennials and the Resurrection of Free Labor Ideology

Nov 25, 2014Brit Byrd

Millennial's rising preferences for artisanal, local, and genuine products must not minimize the importance of wage labor in the economy.

In July, John Oliver’s Last Week Tonight summarized the state of the minimum wage debate in one grand old super-cut of sound bytes. To top off repeated invocations of “class war!” Senator Marco Rubio croons that “We have never been a nation of haves and have-nots. We are a nation of haves and soon-to-haves. Of people who have made it and people who will make it.”

Millennial's rising preferences for artisanal, local, and genuine products must not minimize the importance of wage labor in the economy.

In July, John Oliver’s Last Week Tonight summarized the state of the minimum wage debate in one grand old super-cut of sound bytes. To top off repeated invocations of “class war!” Senator Marco Rubio croons that “We have never been a nation of haves and have-nots. We are a nation of haves and soon-to-haves. Of people who have made it and people who will make it.”

Putting aside Oliver’s observation that this statement “makes no sense – economically, mathematically, or even grammatically,” it is nonetheless very informative of the ideology behind the resistance to raising the minimum wage.

Rubio’s rhetoric is an ideological descendent of “free labor ideology,” a defining tenet of the Republican Party before the Civil War. Made famous by historian Eric Foner in his seminal work, Free Soil, Free Labor, Free Men, free labor ideology stood vigorously against the economic dependence of one individual on another.

Although this ideology admirably stood in opposition to slavery, it predated the industrial revolution and thus developed a strange relationship with the rise of the non-propertied, yet emancipated, wage-earning class. When the wage earner was introduced to the dichotomy between the slave and the propertied man, the ideal citizen of free labor ideology remained “a farmer or independent mechanic,” with wage labor on the outside looking in.

In Free Soil, Free Labor, Free Men, Foner observes that although the progenitor of capitalism, Adam Smith, had “seen intractable class divisions as an inevitable consequence of economic development,” across the ocean, thinkers and politicians held that “in America, wage labor was a temporary status, and 'laborers for hire do not exist as a class.'”

Eventually, after a grand period of nation building, the industrial revolution, and the progressive movement, wage labor was recognized beyond this transitory status.

But even the most casual observer of American politics knows of the continued ubiquity of the “self-made man” in the political lexicon. Although less blatant, the specific image of the homestead also remains inappropriately fixed in our collective political imagination – and not just with Marco Rubio, but also amongst Millennials who may consider themselves committed progressives.

Weighing in on what is and isn’t “Millennial” has been the media’s fetish for quite awhile now, but earlier this year the Pew Research Center threw some fresh meat into the otherwise overcooked discussion. Their report, “Beyond Red vs. Blue: The Political Typology” identified a “next generation left” that was six times more likely than traditional liberals to agree with the statement “blacks who can’t get ahead are responsible for their own condition.”

The headlines wrote themselves: Millennials are libertarians, Millennials have abandoned the state, seven gifs that show how Millennials are racist, and so on. Amongst the dreck, an exceptional column in The New York Times by Anand Giridharadas distinguishes this anti-institutional vogue as a personal reaction against impersonal big-box capitalism, not a political reaction. In his most potent example, “the locally foraged mushrooms on menus in Brooklyn … are a small-scale elite secession from the ways of ruthless global trade, not a political resistance of it.“

Giridharadas contrasts this urban farm-to-table fascination with the more familiar, anti-state views we see from the right, which are “anchored in rural life.” Yet his local-mushrooms example is his most potent because it hints effectively at an actual connection between this millennial angst and the very old image of bucolic self-sufficiency. It is not just the newfangled app-tech craze of Uber and Venmo driving this reaction, but also a very organic, homestead aesthetic.

In fact, this visual connection has already been made explicit. Look no further than Portlandia’s revised anthem for the city that so infamously exaggerates our generation: the “dream of the 1890s is alive [in Portland].” As front man Fred Armisen notes, remember when “everyone was pickling their own vegetables and brewing their own beer?”

Now obviously, Portlandia is an exaggeration of a particular trend. But this compulsion towards the “genuine” and “artisanal” does permeate our current moment. Not every child of the late 60s was at Woodstock or burning draft cards, but it would be specious to suggest that such cultural touchstones did not and do not affect the generational perspective.

Ultimately, Portlandia’s invocation of the 1890s is cruelly apropos, given that we are now living in what many refer to casually as a “New Gilded Age.” Giridhadaras’ take that, “though some [millennials] may fight it, they cannot, in the main, escape Amazon and its cutthroat brand of capitalism,” is similar to the dominance of industrial tycoons in the late 19th century that overshadowed even the state.

Farm-to-table fascination represents a welcome political-cultural rebellion against the big box, but it shares an aesthetic with the free labor ideology that lifts Senator Rubio’s rhetoric and head into the clouds.

To finish Portlandia’s anthem, front woman Carrie Brownstein notes of 2014 Portland, “it’s like President McKinley was never assassinated.” As a nation, we were lucky enough to have none other than President Theodore Roosevelt fill McKinley’s shoes and plant the seeds of the Progressive Movement that his fifth cousin would later go on to solidify in the New Deal.

Millennials must be careful to not let fascination with the artisan keep them rooted in an era before Roosevelt. This reevaluation of authenticity is, on the whole, a welcome development . But now, just as in the 1890s, the frontier has closed and wage labor is a pressing political, economic, and quotidian reality.

Brit Byrd is the Roosevelt Institute | Campus Network Senior Fellow for Economic Development and a senior at Columbia University.

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Leadership Wanted: Governor Cuomo, Homeless Students Need College Support

Nov 20, 2014Kevin Stump

For homeless youth to make it through college, they need extra support, best provided through a government program of homeless liaisons.

For homeless youth to make it through college, they need extra support, best provided through a government program of homeless liaisons.

New York has been among the top 10 states with unaccompanied homeless youth (UHY) filing for federal financial aid for the last three years. In a private report to the National Association for the Education of Homeless Children and Youth, the United States Department of Education, reports that there were 2,215 college students applying for financial aid in New York who indicated on their Free Application for Federal Student Aid that they were homeless last year. This number does not include undocumented youth who are not eligible to apply for federal or state aid.

Unfortunately, these students are often left behind. It wasn’t until last year that New York changed an extremely outdated component of its $1 billion Tuition Assistance Program (TAP) that updated this 40-year-old in-state need-based financial aid program. The change made it so UHY are now eligible for the maximum TAP award of $5,165 that Dependent students are eligible for, versus the maximum TAP award of $3,025 available to Independent students.

In addition to outdated laws that limit the amount of aid they can receive, UHY face a number of other challenges including food insecurity, a lack of adult guidance and support, failure to access available support systems, lack of access to parental financial information, limited housing options, and a lack of financial means to live independently and safely.

New York should create a policy that models the federal McKinney-Vento Act on a college level. This landmark piece of legislation successfully creates safety nets and institutional support structures for K-12 students. By law, every school district in the country, and every school building in New York City, is required to have a liaison who is responsible for coordinating support and resources for homeless and unaccompanied youth. Every year, liaisons are required to undergo training to stay current on best practices to support and assist homeless students. Furthermore, their work has given lawmakers data and information on the best ways to support these communities.

There are more than 130,000 K-12 homeless students in New York. Among those students, nearly 11,000 11th and 12th graders approaching the end of their high school careers. These are only the numbers that are reported and do not account for the possibility of additional students who are in need.

Given the number of colleges and universities, the number of community based organizations and support networks that exist, and the high-level of poverty in New York, the state has the potential to become a leader in creating a framework of how states should build support systems for unaccompanied homeless youth to access and succeed in college.

Governor Cuomo should initiate the policy process to develop a law requiring a homeless liaison at every brick-and-mortar college and university in the state, to ensure that all former McKinney-Vento students are supported during their transition into college and throughout their tenure until graduation. The homeless liaison would be the first point of contact for professionals working with these young people and for the students who experience, or who are at risk of experiencing, homelessness while at college. The liaison would also be charged with coordinating all needed services. In addition, the liaison would be responsible for tracking and reporting all relevant data to help inform future policy regarding homeless college students and develop greater support services.

This kind of support and data-gathering could potentially exist without legislation. However, this issue is a prime example of where the state could do it better and more comprehensibly. With legislative protections and teeth to ensure sustainable and uniformed support is given, as well as appropriate resources for service delivery, training, technology, data collection, and future statewide policy initiatives, the liaisons will be able to provide better support to UHY in college. A statewide policy setting up liaisons would establish an infrastructure that can be used to easily implement future policy.

As economic inequality and homelessness rates remain high, and college attainment continues to be so crucial, it’s critical that New York take action to protect our most at-need college students to ensure that those who are pursuing their dreams don’t slip through the cracks.

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


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A Dem Who Can Explain that Fairness is Prosperity Will Sweep in 2016

Nov 19, 2014Richard Kirsch

The policies that will deliver economic growth also center fairness, and that's what Democrats need to emphasize to keep the presidency in 2016.

The policies that will deliver economic growth also center fairness, and that's what Democrats need to emphasize to keep the presidency in 2016.

The familiar debate within the Democratic Party – move left or right – is on. In a memo to a “limited number of Democratic leaders,” Third Way, the leading organization for corporate Democrats, lays down the gauntlet: “Democrats are offering economic fairness, but voters want economic growth and prosperity.” And for good measure, Third Way declares, “And it has to be meaningful; Democrats can’t simply stick a 'growth' label on the old bottle of 'fairness' policies.”

The folks at Third Way are right about one thing; voters do want economic growth and prosperity. Where they are wrong is in their assumption that fairness can't be a part of that growth. The policies that do the most to bolster fairness are in fact the most powerful policies to move the economy forward and create broadly shared prosperity.

Progressives and Democrats don’t always make that clear. Most of the time they talk about fairness as separate from broadly-shared prosperity. The Democrat who bases his or her campaign on that crucial link will sweep into the presidency in 2016.

Policies that increase fairness are key to driving the economy forward.

Raising the minimum wage is not just about basic fairness for low-wage workers. Raising wages is about creating economy boosting jobs, not economy busting jobs. When wages are raised, workers have more money to spend, essential when 70 percent of the economy is made up of consumer spending.

An economy boosting job pays enough to cover the basics, which is why the fight for a $15 per hour minimum wage mobilizes people to action. It is about working at that wage for enough hours, with predictable schedules, so that the wages add up to a decent paycheck. It is about getting paid when you are out sick and having paid family leave, so you can care for and support your family. It is about women getting paid as much as men. It is about being able to afford your health care, so you have money to spend on other essentials and don’t end up bankrupt because of a high-cost illness. It is about increasing Social Security benefits and bolstering retirement savings, so you can keep supporting yourself and keep the economy moving well into your retirement.

These measures reward people fairly for work and are essential to rebuilding the middle class engine of the economy, as shown by the evidence collected in the Center for American Progress’s middle-out economics project.

The flip side of creating economy boosting jobs is reversing the soaring concentration of wealth. It’s not just unfair that the rich are grabbing more and more of the wealth we all create, it’s a big reason that the economy remains sluggish. When the top 1 percent capture virtually all of the economic progress, it's impossible for them to spend much of it. When corporations sit on trillions of dollars of cash because there aren’t markets for their goods, that money doesn’t go to higher wages or investment in creating jobs or other things that would boost productivity throughout the economy.

Even Wall Street is beginning to get it. In a report that is stunning only for its source, Standard & Poor's found this summer that “Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening GDP growth, at a time when the world's biggest economy is struggling to recover from the Great Recession and the government is in need of funds to support an aging population.”

A big goal of Third Way’s memo is to justify policies that they admit “may not be the most politically popular.” While some of the Third Way proposals are worthwhile, like millions of teachers for pre-K, much of their agenda is that of corporate America and in some cases would actually be bad for the economic growth they claim to seek.

Using coded language in an attempt to dilute the political poison, Third Way pushes for cutting Social Security benefits, lowering corporate tax rates rather than stopping corporate tax evasion, and agreeing to new trade deals which would drive the race to the bottom and allow corporations to challenge environmental and health and safety laws, instead of bolstering American workers' already hard-pressed incomes.

Instead, what the country needs and what Democrats should push are bold policies which drive the economy forward and create broadly shared prosperity: fairness.

We can start by putting Americans to work with a massive investment in core productive infrastructure in three areas: transportation, from roads and bridges to high speed rail; clean, renewable energy, which will simultaneously tackle climate disruption; and high-speed Internet for every home and business in America. Everyone who does this work should be paid enough, with good benefits, to support and care for their families, and be given the flexibility needed to care for those families.  In doing so, we doubly boost the economy: through the investment in infrastructure and through the good jobs.

It is both fair and essential for our economic future to ensure that every child has a quality education and the opportunity to succeed in school, career, and life. We need to modernize and replace dilapidated schools and assure that every child has a well-prepared and supported teacher in a small enough class to learn. We need to transform schools, particularly those that teach children in low-income neighborhoods, into community centers. We should make high-quality child care and pre-K universal, employing millions more providers and teachers.

We need to provide career training for the high-skilled jobs that don’t require traditional college. We need to make college affordable, by dramatically lowering the cost of public colleges and universities, providing much more tuition assistance, and tying the payment of student loans to earnings.

And as in infrastructure, all these jobs – from day-care providers to teachers to college professors (no more adjuncts) – should be good jobs, with good pay, benefits, and the flexibility to care and support families.

The only reason that Democrats would consider an agenda that Third Way admits is politically unpopular is to please corporate campaign donors and elites. But with President Obama pushing for new trade deals, advocating revenue-neutral corporate tax reform and having supported cuts in Social Security benefits, that agenda is as alive as the billions in campaign contributions that pour into both political parties.

Americans are right about two things. One, the system is rigged to favor the wealthy and powerful. Two, unless we change course, the future will not be better for our children. Those are the core reasons we saw historically low voter turn out this month and why minimum wage hikes passed at the same time voters decided to give Republicans their turn in the continuing roller-coaster of Congressional control over the past decade.

The Democrat who champions bold policies to build an America that works for all of us, not just the wealthy, and policies that create broadly shared, sustainable prosperity, will triumph in 2016.

The key, as Franklin Delano Roosevelt did (and as great organizers do), is to tap into anger and lift up hope. FDR railed against the “economic royalists” and experimented with bold policies that reigned in financial speculation and put Americans to work building the foundations for the 20th Century economy. 

The next FDR will name the villains who are rigging the system: Wall Street speculators and corporations that cut wages and benefits and ship jobs overseas. The next FDR will reveal the truth that “we all do better when we all do better.” That when we all earn enough to care and support our families, when we can shop in our neighborhoods, give our kids a great education, afford our health care, retire with security, we drive the economy forward.

Mamby-pamby won’t cut it. Americans are crying for bold leadership, a way out of a narrowing world towards a better world for our children.

The Democrat who leads a political party that stands up against the rich and powerful and stands up for working families and the middle class, who declares that Americans have done this before and that together we can do it again, will triumph in 2016. A Democratic party that relentlessly presses that agenda into action will meet the great challenge of our time. 

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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Dirty Deals: How Wall Street's Predatory Deals Hurt Taxpayers and What We Can Do About It

Nov 18, 2014

Download the report by Saqib Bhatti.

Download the report by Saqib Bhatti.

The financialization of the United States economy has distorted our social, economic, and political priorities. Cities and states across the country are forced to cut essential community services because they are trapped in predatory municipal finance deals that cost them millions of dollars every year. Wall Street and other big corporations engaged in a systematic effort to suppress taxes, making it difficult for cities and states to advance progressive revenue solutions to properly fund public services. Banks take advantage of this crisis that they helped create by targeting state and local governments with predatory municipal finance deals, just like they targeted cash-strapped homeowners with predatory mortgages during the housing boom. Predatory financing deals prey upon the weaknesses of borrowers, are characterized by high costs and high risks, are typically overly complex, and are often designed to fail.

Predatory municipal finance has a real human cost. Every dollar that cities and states send to Wall Street does not go towards essential community services. Across the country, cuts to public services and other austerity measures have a disparate impact on the working class communities of color that were also targeted for predatory mortgages and payday loans, further exacerbating their suffering.

The primary goal of government is to provide residents with the services they need, not to provide bankers with the profits they seek. We need to renegotiate our communities’ relationship with Wall Street. We can do this by implementing common sense reforms to safeguard our public dollars, make our public finance system more efficient, and ensure that our money is used to provide fully-funded services to our communities. Taxpayers do trillions of dollars of business with Wall Street every year. It is time we start making our money work for us.

Key Recommendations
  • Transparency: Officials should disclose all payments for financial services and conduct an independent investigation of all financial deals to identify predatory features.
  • Accountability: Cities and states should take all steps to recover taxpayer dollars when bank deal unfairly with them, including taking legal action, renegotiating bad deals, and refusing future business.
  • Reducing Fees: Officials should identify financial fees that bear no reasonable relationship to the costs of providing the service and use their leverage as customers to negotiate better deals.
  • Collective Bargaining with Wall Street: Cities and states should agree to a common set of guidelines for an efficient municipal finance system and refuse business with any bank that does not abide by them, creating a new industry standard.
  • Creating Public Options for Financial Services: Cities and states should determine which services they could do themselves more cheaply if they hired the right staff, and make a plan to insource those functions.
  • Establishing Public Banks: Cities and states should establish public banks that are owned by taxpayers, can deliver a range of services, including municipal finance, and provide capital for local investment.

Read: "Dirty Deals: How Wall Street’s Predatory Deals Hurt Taxpayers and What We Can Do About It," by Saqib Bhatti.

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Daily Digest - November 17: Getting Married Won't Solve Inequality

Nov 17, 2014Rachel Goldfarb

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Why You Shouldn’t Marry for Money (The Nation)

Roosevelt Institute Fellow Mike Konczal and Bryce Covert explain why the conservative idea of reducing poverty and inequality by promoting marriage won't actually work.

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Why You Shouldn’t Marry for Money (The Nation)

Roosevelt Institute Fellow Mike Konczal and Bryce Covert explain why the conservative idea of reducing poverty and inequality by promoting marriage won't actually work.

Nobel Prize-Winning Economist Reveals Why Robots Really Are Coming For Your Job (Business Insider)

Tomas Hirst reports on a new paper by Roosevelt Institute Chief Economist Joseph Stiglitz, which argues that left unchecked, innovation can create market failures that increase inequality.

Why Screwing Unions Screws the Entire Middle Class (MoJo)

Kevin Drum argues that the Democrats' split from organized labor in the 1960s and labor's subsequent loss of power helped to create the pro-business political climate we have today.

Kansas Revenues Will Fall $1 Billion Short of 2015 and 2016 Expenses, Fiscal Experts Say (Kansas City Star)

Following massive income tax cuts, Kansas faces severe shortages, and critics of the tax cuts worry the results will be cuts for schools, roads, and social services, writes Brad Cooper.

Inequality, Unbelievably, Gets Worse (NYT)

Steven Rattner points to new data from the Federal Reserve showing increased inequality. He emphasizes government transfer programs as a way to ease the problem.

Arkansas’s Blue Collar Social Conservatives Don’t Know What’s Coming (Daily Beast)

200,000 Akansans gained health insurance through a hybrid "private option," but Monica Potts writes that with newly elected officials focused on money over people, that could disappear.

The Real Winner of the Midterms: Wall Street (In These Times)

David Sirota ties Wall Street's funding of gubernatorial campaigns to its profits: many of these candidates support "pension reform" that will increase Wall Street's fees.

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