Daily Digest - September 16: It's Time to Rethink the Purpose of Corporations

Sep 16, 2014Rachel Goldfarb

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The Overpaid CEO (Democracy)

Roosevelt Institute Fellow Susan Holmberg and Mark Schmitt argue that exorbitant executive pay cannot be addressed without reconceptualizing a corporation as more than just an agent of its shareholders.

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The Overpaid CEO (Democracy)

Roosevelt Institute Fellow Susan Holmberg and Mark Schmitt argue that exorbitant executive pay cannot be addressed without reconceptualizing a corporation as more than just an agent of its shareholders.

Independence Has Costs and Benefits (The Scotsman)

Roosevelt Institute Chief Economist Joseph Stiglitz argues that Scotland should base its decision about independence on values rather than short-run economic gains or losses.

The Myth That Sold the Financial Bailout (AJAM)

Letting the investment banks collapse wouldn't have caused a second Great Depression, says Dean Baker. Between the FDIC and stimulus deals, the economy would still have recovered.

Why Pensions Went Away: A Theory (WSJ)

Lauren Weber looks at a new study on pensions, which suggests that the increase in influential investors who buy large blocks of stocks is tied to dropped pension plans.

Income Inequality is Hurting State Tax Revenue, Report Says (WaPo)

A new study from Standard & Poors shows the impact of inequality on state budgets, writes Josh Boak. S&P says that changing state tax codes won't be enough to solve this problem.

What the Poverty Rate Tells Us About the Overall Economy (NYT)

Jared Bernstein expects that the 2013 data will show that the poverty rate has continued to hold steady around 15 percent, because the recovery hasn't reached low-income households.

Scott Walker Wants To Fight Feds Over Welfare Drug Tests (HuffPo)

Federal law does not allow drug testing for food stamps or unemployment insurance, but Arthur Delaney reports that the Wisconsin governor wants to push back on that rule.

Unseen Toll: Wages of Millions Seized to Pay Past Debts (ProPublica)

Paul Kiel looks at the rise of wage garnishment for consumer debts, a system that has few protections for debtors and causes great financial hardship, since up to 25 percent of a paycheck can be taken.

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Daily Digest - September 15: Violence Against Women is Still a Threat, Abroad and at Home

Sep 15, 2014Rachel Goldfarb

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Hillary Clinton Seeks End to Gender Violence by Terrorist Groups (CBS News)

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Hillary Clinton Seeks End to Gender Violence by Terrorist Groups (CBS News)

Clinton also spoke about issues of violence against women in the U.S., reports Hannah Fraser-Chanpong, reiterating her stance that domestic violence requires criminal, not cultural, responses.

White House Photo Ops, Old School (NYT)

Roosevelt Institute Senior Fellow David Woolner says the new Ken Burns film The Roosevelts: An Intimate History highlights the interconnectedness of the lives of Theodore, Franklin, and Eleanor.

Shareholders Say, ‘Show Me The Money’ (In These Times)

David Sirota explains the fight over corporate political spending disclosures. A proposed Securities and Exchange Commission rule has significant public support – and plenty of corporate pushback.

  • Roosevelt Take: Roosevelt Institute Fellow Susan Holmberg looks at the costs and benefits of mandating corporate political spending disclosure.

Workers Go on Strike at Hammond Automotive Seats Plant (Chicago Tribune)

The workers are "tired of being treated like fast-food industry employees," writes Alexandra Chachkevitch. They are asking for the elimination of a salary cap instituted during the financial crisis.

Workers in Maine Buy Out Their Jobs, Set an Example for the Nation (Truthout)

Rob Brown, Noemi Giszpenc, and Brian Van Slyke explain why the creation of the Island Employee Cooperative in Deer Isle, Maine is a particularly groundbreaking achievement.

New on Next New Deal

How Much are Local Civil Asset Forfeiture Abuses Driven By the Feds? A Reply to Libertarians

Roosevelt Institute Fellow Mike Konczal counters libertarian arguments, showing that the profit motive is bottom-up: asset forfeiture in non-Federal cases is driven by local policy.

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Daily Digest - September 12: Students Shouldn't Go Hungry on College Campuses

Sep 12, 2014Rachel Goldfarb

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How One Student is Fighting the College Hunger Crisis (MSNBC)

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How One Student is Fighting the College Hunger Crisis (MSNBC)

Ned Resnikoff profiles Yvonne Montoya, President of the Santa Monica College chapter of the Roosevelt Institute | Campus Network, and her work to get food stamps accepted on campus.

A Tour of the Roosevelt Family's New York (WSJ)

Sophia Hollander speaks with Roosevelt Institute Senior Fellow David Woolner about the Roosevelt legacy in New York through fourteen sites across the state, in light of the upcoming Ken Burns documentary The Roosevelts.

Measuring the Impact of States’ Obamacare Decisions (WaPo)

Jason Millman looks at a new study on how costs varied for people buying insurance based on their states' approach to the Affordable Care Act. States with successful exchanges had the lowest costs.

Why Co-ops Are the Future of the American Economy (AJAM)

Worker-owned businesses should appeal to liberals and conservatives alike, writes Matthew Harwood, because conservatives see ownership as building self-sufficiency and liberals appreciate the higher wages.

The Inflation Cult (NYT)

The investors and economists who continue to insist that runaway inflation is coming to destroy the U.S. economy are a sign of just how polarized our society has become, writes Paul Krugman.

Allentown Bets Big to Shed its Former Image (Marketplace)

Tommy Andres looks at how tax incentives structured through a Neighborhood Improvement Zone have begun to revitalize Allentown's downtown.

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Daily Digest - September 11: Funding Universal Preschool Means Taking Banks to Task

Sep 11, 2014Rachel Goldfarb

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Bright Future Chicago Pushes for Universal Preschool (Chicago Tonight)

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Bright Future Chicago Pushes for Universal Preschool (Chicago Tonight)

Roosevelt Institute Fellow Saqib Bhatti explains one way that universal preschool could be funded: Chicago could pursue legal claims against banks for bad interest rate swap deals.

Jerry Brown Signs Bill Requiring Employers to Give Paid Sick Leave (The Sacramento Bee)

California is the second state to enact state-wide paid sick leave, but David Siders reports that labor groups aren't in full support of the new law because it excludes home health care workers.

Asset Limits Are a Barrier to Economic Security and Mobility (CAP)

Rebecca Vallas and Joe Valenti explain how asset limits on social safety net programs prevent low-income families from building necessary economic stability, and lay out a plan for reform.

The Federal Reserve's Too Cozy Relations With Banks (WSJ)

Stephen Haber and Ross Levine suggest ways to limit banks' influence with the Federal Reserve, including requiring ex-Fed officials to agree to a waiting period before taking jobs in financial services.

Student Debt Collections Are Leaving the Elderly in Poverty (Bloomberg Businessweek)

Federal student debt among the elderly has increased sixfold since 2005, and a law meant to keep garnishments from putting retirees in poverty is in dire need of an update, reports Natalie Kitroeff.

Who Needs a Smoke-Filled Room? (NYT)

Thomas Edsall lays out an example of the complicated structures that allow tax-exempt "social welfare" organizations to spend millions of dollars on political campaigns with little accountability.

These Charts Are Good News if Your Employer Pays for Health Insurance (TNR)

Jonathan Cohn says that the slowed premium increases for employer-sponsored insurance this year are another sign that the Affordable Care Act is keeping health care costs down.

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Daily Digest - September 10: Could a Left-Wing Tea Party Unite Progressives?

Sep 10, 2014Rachel Goldfarb

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Why We Need a Left Wing Tea Party (The Daily Beast)

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Why We Need a Left Wing Tea Party (The Daily Beast)

Sally Kohn calls on progressive factions to follow the Tea Party's lead and throw all their weight behind uncompromising candidates who are strong on every progressive issue.

Labor Market Unchanged According to July Job Openings Data (EPI)

Comparing job openings data to unemployment, Elise Gould points out that over half of the unemployed were not going to find work in July no matter what they did, because the jobs don't exist.

Government Debt Isn't the Problem—Private Debt Is (The Atlantic)

Richard Vague writes that financial crises can be tied to too-high and rapidly growing private debt, which means policy solutions need to focus on debt relief for low- and middle-income people.

Were Fast-Food Workers Paid to Strike and Protest? (The Guardian)

The answer is no, writes Jana Kasperkevic. That rumor is a corruption of the union strike fund, a pool set aside to help pay for striking workers' arrest fines and lost wages.

Warren Faults Banking Regulators for Lack of Criminal Prosecutions (WSJ)

While Senator Warren focused on the Federal Reserve, Senator Shelby blamed the DoJ for seeking fines instead of jail time for banking executives, report Ryan Tracy and Victoria McGrane.

Want to Fix the Jobs Crisis? Build a Federally Funded Worker Education Infrastructure (TAP)

Good job training programs – the kind that see both students and employers as clients – can be highly successful, writes Paul Osterman, but they're small and difficult to scale up.

The OECD’s Latest Report is Burdened by Economic Myths (AJAM)

Philip Pilkington says that until economic policymakers stop assuming that economies rebalance themselves and that high government debt is the real problem, good policy change is unlikely.

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Daily Digest - September 9: Block Grants Won't Solve Poverty -- They'll Make It Worse

Sep 9, 2014Rachel Goldfarb

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The Republican Playbook for Cutting Anti-Poverty Programs (The Nation)

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The Republican Playbook for Cutting Anti-Poverty Programs (The Nation)

Roosevelt Institute Fellow Mike Konczal and Bryce Covert write that block grants, like those that make up Paul Ryan's anti-poverty proposal, effectively freeze funding for their programs.

Can Republicans Be Convinced to Help Improve the Affordable Care Act? (TAP)

Looking at Mike Konczal's suggestion for improving the Affordable Care Act, Paul Waldman says that more specific proposals will force Republicans to act.

Democrats Have a Depth Problem. It’s Largely Their Own Fault. (WaPo)

Aaron Blake blames Democrats for not investing in developing young leaders, as the Republicans have done for 25 years, and credits groups like the Campus Network for starting to build that pipeline.

Ferguson Sets Broad Change for City Courts (NYT)

Frances Robles reports on the changes announced at Ferguson's first city council meeting since Mike Brown's death, including a cap on how much of the city's budget can come from court fines.

Dignity (New Yorker)

William Finnegan profiles one McDonalds employee on her work and her labor activism as she struggles to support her kids on $8.35 an hour, her wage after eight years on the job.

This Is What It's Like To Sit Through An Anti-Union Meeting At Work (HuffPo)

Dave Jamieson reports on recordings published by the Teamsters in which employers claim over and over that unions just want employees' money, not to improve the workplace.

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Daily Digest - September 8: What Ever Happened to the Public Option?

Sep 8, 2014Rachel Goldfarb

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To Improve ‘Obamacare,’ Reconsider the Original House Bill (AJAM)

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To Improve ‘Obamacare,’ Reconsider the Original House Bill (AJAM)

Roosevelt Institute Fellow Mike Konczal argues that the House's public option for health care reform, which was missing from the Senate bill that became law, would greatly strengthen the Affordable Care Act.

SEC Faces Renewed Pressure to Consider a Corporate Disclosure Rule (The Nation)

One million comments submitted to the Securities and Exchange Commission have called for requiring companies to disclose political donations to shareholders, writes Zoë Carpenter.

  • Roosevelt Take: Roosevelt Institute Fellow Susan Holmberg finds that corporate political spending disclosure has substantial benefits.

Why the Worst Governments in America Are Local Governments (NY Mag)

Jonathan Chait looks at the problem of "Big Small Government," meaning local governments that act as oppressive forces. He says neither Democrats nor Republicans offer useful solutions.

Paid Sick Leave is Healthy for Business (SFGate)

Carl Guardino, a Silicon Valley CEO, explains the business advantages of instituting paid sick leave in California. He focuses on improvements to health, safety, and economic security.

Some Retail Workers Find Better Deals With Unions (NYT)

The retail union in New York City has secured protections for its members that other retail workers are fighting for, like plenty of advance notice on schedules, says Rachel Swarns.

Unemployment Rate Continues To Be Elevated Across the Board (Working Economics)

The combination of declining real wages and elevated unemployment rates for college graduates indicates the impossibility of a skills mismatch in today's labor market, writes Elise Gould.

Nearly a Quarter of Fortune 500 Companies Still Offer Pensions to New Hires (WaPo)

Since companies are scaling back the generosity of these pensions through hybrid plans that cost workers more, Jonnelle Marte says that number sounds deceptively good.

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Daily Digest - September 5: What Can Obama Learn from the Roosevelts?

Sep 5, 2014Rachel Goldfarb

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Roosevelts to the Rescue (NYT)

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Roosevelts to the Rescue (NYT)

In light of Ken Burns' upcoming documentary The Roosevelts: An Intimate History, Timothy Egan considers what President Obama could learn from the Roosevelts' lives and political challenges.

Cities Will Lead the Nation’s Technological Advances (FedScoop)

John Breeden II speaks with Roosevelt Institute Fellow Susan Crawford about her new book, The Responsive City, co-authored with Stephen Goldsmith.

Fast Food Strikes Hit 150 US Cities (MSNBC)

The strikes expanded to include acts of civil disobedience, such as sit-ins outside restaurants, that led to arrests in five cities across the country, report Ned Resnikoff and Michele Richinick.

Economic Inequality Continued To Rise In The U.S. After The Great Recession (FiveThirtyEight)

Ben Casselman and Andrew Flowers present their initial takeaways from the Federal Reserve's triennial Survey of Consumer Finances, which confirms that the recovery was only for the wealthy.

Do Fast-Food Strikes Actually Work? (The Guardian)

Heidi Moore says that the labor movement is seeing greater support as fast food strikes grow and incorporate other low-wage workers seeking a living wage and a union.

What to Watch on Jobs Day: It’s No Longer a Jobless Recovery but It’s Undoubtedly a Wage-Growth-Less Recovery (Working Economics)

Josh Bivens and Elise Gould explain why wage growth has been so very slow in the recovery, and how lack of wage growth impacts other aspects of economic growth.

New on Next New Deal

Taxes Are Never Just a Class Issue

Roosevelt Institute | Campus Network National Director Joelle Gamble argues that tax reform isn't the end-all solution to economic inequality, because it can't fix racial inequality.

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Taxes Are Never Just a Class Issue

Sep 4, 2014Joelle Gamble

Tax reforms can't solve all economic inequality, because they won't change the reality of race in the U.S. economy.

Tax reforms can't solve all economic inequality, because they won't change the reality of race in the U.S. economy.

The threat of corporate inversions to the American tax base sprung an interesting political dialogue around tax reform in the United States. We’ve seen debates on how to stop the spread of inversions and arguments that they aren’t a problem at all. Some call for the abolition of the corporate tax rate as a whole and others completely reject such suggestions. I find these discussions of tax reform and its effects on the economy informative yet simultaneously slightly disappointing.

What bothers me about how tax reform debates shake out is how absent they can become of socio-political realities, particularly the reality of race.

One line of progressive argumentation follows simply: If everyone pays their fair share of taxes, we can support public spending and job growth, and we’ll all do better. The argument firmly stands, but there is an important caveat.

It’s easy to harken back to the 1950s when tax rates were high, social services were relatively steady and economic security stretched across economic strata. But who was really secure then? Even the high points of job security for the American economy still left African Americans (and other racially marginalized groups) behind. This a structural phenomenon, instituted by socially racist institutions and a deep history of systemically harming the Black community.

We can’t take race out of conversations around economic inequality. The reality of race is that even fixes to the broader federal revenue landscape don’t always address the structural barriers of racism. A rising tide can’t lift all boats, if some boats are bolted to the seafloor.

Black unemployment consistently exceeds that of whites, both post-Recession and since such data has been available. Gaps between white unemployment and black unemployment shrank in 2009. This was not due to falling black unemployment but instead due to skyrocketing white unemployment.

This racial gap in economic success extends beyond the employment rate. In fact, it is deeply entrenched in the way wealth is distributed in the U.S. The gap between median Black wealth and median white wealth stands at about $236,000 dollars. Flagrant discrimination, in part, contributes to this gap. But it is perpetuated by generations of asset accumulation policies that are targeted at those who already own assets.

Corporate tax reform alone isn’t sufficient to fix the effects of decades of second-class status conferred on African Americans. The government does not just need sufficient funding to create equality within the economy. Distribution of these dollars is equally important. It needs to reflect the nuances of structural inequalities built into multiple aspects of our tax code.

Take federal housing spending policies as a prime example. Ending ineffective tax incentives, such as the mortgage interest reduction, can start to tilt the scales toward those who are not already wealthy. Seventy-seven percent of the benefits of the mortgage interest reduction accrued to homeowners with gross incomes of above $100,000. We need to rethink housing subsidies so that the benefits of federal programs do not heavily favor those who already own homes.

We need corporate tax reform to ensure that all participants in our economy are paying their fair share. But we also need a federal benefits structure that ensures that the concept of a "fair share" considers our history of discrimination when determining which Americans need those benefits most.

Joelle Gamble is the National Director of the Roosevelt Institute | Campus Network.

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Daily Digest - September 4: On Corporate Boards, Local Stakeholders Protect Local Interests

Sep 4, 2014Rachel Goldfarb

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Fighting Corporate Inversion at the City Level (Next City)

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Fighting Corporate Inversion at the City Level (Next City)

Roosevelt Institute | Campus Network National Director Joelle Gamble argues for linking tax exemptions to local stakeholder governance on corporate boards to increase corporations' ties to their communities.

Guards Need Job Security of Their Own, Say Apple Store Protesters (In These Times)

Julia Carrie Wong reports on a union protest last week that aimed to garner public attention around Apple's use of subcontracted security guards who receive low wages and few, if any, benefits.

The Education Department’s Problematic Billion-Dollar Partnership With Debt Collection Agencies (Buzzfeed)

The structure of the Education Department's contracts with debt collectors encourages abuse by paying less for services like income-based repayment plans, writes Molly Hensley-Clancy.

The Huge, Regressive Tax Break Right Under Your Roof (TNR)

Danny Vinik looks at a new study on the costs of homeowner tax deductions, which he says subsidize bigger houses and more debt instead of encouraging lower- and middle-income home ownership.

Three Ways That Politicians are Storing Up Disaster for Pensioners (AJAM)

David Cay Johnston explains smoothing, spiking, and starving, three strategies that ensure pensions will be underfunded and create disaster for retirees and taxpayers alike.

The Class War in American Politics is Over. The Rich Won. (Vox)

Nick Carnes, using examples from his book White Collar Government, explains how the wealthiest Americans' control of the political system impacts policy outcomes.

Unemployment Trickles Down to Poorer Workers, Study Finds (WSJ)

When higher-skilled workers take low-skill jobs, the trickle-down effects exasperate inequality, reports Pedro da Costa, according to new research from economists in Barcelona.

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