Daily Digest - April 15: What Makes Taxes Worth It?

Apr 15, 2014Tim Price

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Read My Lips: More New Taxes! (New Republic)

Tax Day would be a time for celebration if there were a clearer connection between paying taxes and receiving the many valuable public services and benefits they fund, writes Jonathan Cohn.

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Read My Lips: More New Taxes! (New Republic)

Tax Day would be a time for celebration if there were a clearer connection between paying taxes and receiving the many valuable public services and benefits they fund, writes Jonathan Cohn.

TurboTax Maker Linked to 'Grassroots' Campaign Against Free, Simple Tax Filing (ProPublica)

Giving taxpayers the option to use pre-filled tax returns could save them money and time, but tax software developer Intuit is lobbying hard against the proposal, reports Liz Day. 

Chances of Getting Audited by IRS Lowest in Years (AP)

Deep budget cuts have put such a strain on IRS resources that the agency audited only 1 percent of individual returns last year, writes Stephen Ohlemacher, and that number will drop in 2014. 

C.E.O. Pay Goes Up, Up and Away! (NYT)

Despite efforts to restrain the growth of executive pay through increased transparency and regulation, median CEO compensation grew 9 percent in 2013, hitting $13.9 million, writes Joe Nocera.

The Single Mother, Child Poverty Myth (Demos)

Family composition in the U.S. is not much different from that of Northern Europe, writes Matt Bruenig, but the European countries have much more generous welfare systems to keep children out of poverty.

What the French E-mail Meme Reveals About America's Runaway Culture of Work (The Nation)

French workers are often mocked because they continue to fight for work-life balance, writes Michelle Chen, but American work culture's disregard for those boundaries is the real historical outlier.

How 250 UPS Workers Fired for a Wildcat Strike Won Back Their Jobs (In These Times)

An outcry from union members, activists, elected officials, and customers forced UPS to reverse its decision to fire hundreds of drivers at a Queens facility for protesting a co-worker's dismissal, reports Sarah Jaffe.

New on Next New Deal

What is Economic Growth Without Shared Prosperity? 

Roosevelt Institute | Campus Network National Field Strategist Joelle Gamble argues that economic policy should focus on improving life for all Americans, not just those at the very top.

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What Is Economic Growth Without Shared Prosperity?

Apr 14, 2014Joelle Gamble

It's time for the U.S. to recognize that policies to push economic growth must focus on average Americans, not "job creators."

It's time for the U.S. to recognize that policies to push economic growth must focus on average Americans, not "job creators."

Rampant inequality is putting the future of the American economy in peril. The financial recovery we have experienced the past few years has only led to massive gains for top earners and little to no change for average Americans. Decades of policies that throw more benefits to the top have not “trickled down” to the average household.

But more importantly, our current idea of economic progress is skewed. The wealthy have created this idea that “job creators” are a class of people who can magically restore out economy, ignoring the fact that entrepreneurship and innovation come from all economic statuses.

America needs to shift our economic narrative away from a heavy emphasis on GDP-based growth and toward a model that promotes prosperity for everyone. We need to think about how we generate demand in order to create jobs. This demand comes from average Americans having the ability to engage meaningfully in the economy, with fair wages without discrimination in the workplace. In short: economic progress must involve prosperity for all Americans, not just “job creators.”

Legislative battles at the local, state, and federal levels around equal pay and the minimum wage will prove crucial to changing our conception of what constitutes good economic policy. Victories in these fights represent tangible ways in which the average American worker can better his or her own economic prospects and simultaneously grow the economy.

We are seeing progress now. In January, the city of Seattle began pushing to raise the minimum wage for city workers to $15.00 per hour. Earlier this week, the state of Maryland voted to raise its minimum wage from the federal $7.25 to $10.10 per hour. Meanwhile, President Obama continues his push for federal action.

Meanwhile, in the United States, women make an average of $0.77 for every $1.00 earned by men, but growing movements are pushing the needle in the right direction. The President signed directives to clamp down on gender discrimination by federal agencies and contractors. Americans show strong bipartisan support for paid sick leave and family leave. Municipalities, are pushing through bills to make this support a reality –in New York City, Mayor De Blasio has already expanded the paid sick leave law that was established in 2013.

While the most sustainable and sweeping changes on these fronts may be best achieved at the federal level, many of the real policy battles are playing out in cities and states. This presents a real opportunity to involve a wide swath of Americans in economic justice work in their neighborhoods. If organizers on the ground build power to push a prosperity-centric policy agenda forward through both community building and new technology platforms, we can see a real shift in the narrative of what economic progress looks like in this nation.

Joelle Gamble is the Roosevelt Institute | Campus Network National Field Strategist.

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Daily Digest - April 14: A Business Plan for a Better Environment

Apr 14, 2014Rachel Goldfarb

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MBAs Will Turn Brownfields Into Green—if Investors Help Them Out (Quartz)

Roosevelt Institute Fellow Georgia Levenson Keohane writes that the social venture competitions becoming common in MBA programs could push sustainability and social change, if Wall Street will fund the proposals.

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MBAs Will Turn Brownfields Into Green—if Investors Help Them Out (Quartz)

Roosevelt Institute Fellow Georgia Levenson Keohane writes that the social venture competitions becoming common in MBA programs could push sustainability and social change, if Wall Street will fund the proposals.

Even As Jobs Numbers Seem Better… (Campaign for America's Future Blog)

Unemployment claims have dropped, and the jobs lost in the recession have been restored, but that's just catch-up. Dave Johnson pulls job creation ideas from a new Roosevelt Institute report, "A Bold Approach to the Jobs Emergency: 15 Ways We Can Create Good Jobs in America Today."

  • Roosevelt Take: Read the full report, produced by the Bernard L. Schwartz Rediscovering Government Initiative.

Low-Wage Workers Pay the Price of Nickel-and-Diming by Employers (LA Times)

Michael Hiltzik points out that wage theft is most common in low-paid, labor-intensive, female-heavy industries. Without sufficient government enforcement, workers are forced to fight back on their own.

What If the Minimum Wage Were $15 an Hour? (The Nation)

Sasha Abramsky looks at the political situation in Seattle, where the push for a $15-an-hour minimum wage is taking center stage. He suggests that if Seattle pulls this off, it will dramatically shift the national conversation.

  • Roosevelt Take: Roosevelt Institute President and CEO Felicia Wong gave the closing remarks at Seattle's Income Inequality Symposium.

Executive Pay: Invasion of the Supersalaries (NYT)

Rising CEO pay is a major contributing factor to today's economic inequality, writes Peter Eavis. But there's disagreement on how to induce companies to pay CEOs less and average workers more.

The Wall Street Second-Chances Rule: Scandal Makes the Rich Grow Stronger (The Guardian)

Heidi Moore writes that on Wall Street, losses, bankruptcies, and even criminal investigations aren't enough to knock top CEOs out of the business. Profits conquer all, so even financiers embroiled in scandal keep their power.

New on Next New Deal

A Millennial’s Case for Fixing Social Security

Brian Lamberta, Northeast Regional Communications Coordinator for the Roosevelt Institute | Campus Network, explains why and how Millennials should try to fix Social Security instead of giving up on it.

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America Can Attain Full Employment with a Bold Approach to the Jobs Emergency

Apr 9, 2014Jeff Madrick

A new report from the Rediscovering Government Initiative lays out 15 ways the government can create more and better jobs starting right now.

A new report from the Rediscovering Government Initiative lays out 15 ways the government can create more and better jobs starting right now.

After five long years, the economy has at last produced enough new jobs to compensate for the 8 million lost in the Great Recession of 2009. But in that same period some 7 million more Americans reached employment age, and we have only produced about half the jobs we need to keep up with population growth. To make matters worse, the jobs created during the recovery pay on average much less than those lost. Yet rather than pulling out all the stops to create more and better jobs, too many politicians and economists tell us we can’t move too quickly. They cite limitation after limitation: inflation fears, budget deficits, skills mismatches, and so on. Americans deserve better than this defeatism. We deserve bold action.

In a new report, A Bold Approach to the Jobs Emergency, the Bernard L. Schwartz Rediscovering Government Initiative offers fifteen ideas that could get us back to true full employment and at the same time build a foundation for rapid economic growth in the future. We are demanding a full-court press to recreate the economic opportunity that America once offered. We emphasize some ideas that have been heard before, but many that are forced to the back seat or are hardly talked about at all.

There are taboos among policymakers that are holding us back. Above all, we must take fiscal stimulus seriously again. Today’s economy operates far below its growth potential. The fiscal stimulus we need should not only make the social safety net whole but also be tied to aggressive investment in transportation, communications, and clean technologies that have been badly neglected.

The federal government can itself create useful, good-paying jobs in transportation, teaching, and health care. A carefully crafted federal job creation program, as was successfully enacted under FDR, can work today. Fifty billion dollars worth of new jobs could go a long way toward helping Americans.

The repressive effect on jobs and wages that results from aggressive Wall Street practices is all but invisible in Washington. Academic economists are almost as bad as the Washington think tanks in paying too little attention to how big finance can undermine both jobs and wages. Our report highlights the findings of researchers such as Eileen Appelbaum, formerly of Rutgers, and Rosemary Batt of Cornell, who show that the leveraged buyout and privatization crazes have on average led to many lost jobs and significantly less spending on R&D. It also showcases the work of William Lazonick of the University of Massachusetts, Lowell, who has long called attention to how massive corporate stock buybacks may help shareholders in the short run but hurt the American economy by diverting investment.

Poor wages are also part and parcel of America’s economic failure. Today’s typical household earns no more after inflation than it did almost 20 years ago. Only 44 percent of Americans think they are middle class, the lowest level recorded. However, until fairly recently, raising the minimum wage has also been taboo. The bill before Congress to raise the federal minimum wage from $7.25 to $10.10 may still not pass, but intelligently designed studies suggest such a hike could lift not just 1 million, as the Congressional Budget Office has too conservatively estimated, but 6 million people out of poverty and provide raises for about 25 million people. Similarly, we need an expansion of the Earned Income Tax Credit to childless adults, which the president supports.

Most tragically, we neglect our young. Six million or so Americans ages 16 to 24 are neither in school nor have a job. Dozens of local agencies have been created to place these “opportunity youth” on a middle-class track. But they badly need to be scaled up, and federal support is the only way to do so.

The new interest in funding pre-kindergarten in New York City and elsewhere is welcome. But help has to come much earlier in the lives of children in poverty. One in every five America children under the age of six live in poverty, the second-highest rate in the rich world. A growing body of research shows unambiguously how poor children are cognitively and emotional deprived—and how bleak their futures inevitably are. In America more than in any other rich country, inequality begins at birth. We need to address this crisis to begin building the economy of the future.

If America wants a strong future, it had also better invest more in technological research. Government research has been the heart of the innovation economy, as economists have increasingly shown. But Congress mindlessly cut such research last year. It must be revived and expanded. Other recommendations in our report include investments in energy, national paid family leave policies, and re-vamped workforce training.

The decline of work is not inevitable, and there are more ideas than the 15 we present in our report. We calculate that we can get the unemployment rate below 5 percent and raise wages with a combination of such programs, without incurring a dangerously growing budget deficit.

But bankrupt ideology, narrow politics, and bad economics are robbing the nation of its confidence and hope for the future. A comprehensive jobs plan is not even being attempted in America. Failure becomes contagious. Let’s end the fatalism about employment in America now and win back the nation’s hard-won optimism. 

Jeff Madrick is the Director of the Bernard L. Schwartz Rediscovering Government Initiative.

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Daily Digest - April 9: The Social Safety Net is Popular Because It Works

Apr 9, 2014Rachel Goldfarb

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The One Part of the Charity vs. Social Welfare Argument That Everyone Ignores (The Week)

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The One Part of the Charity vs. Social Welfare Argument That Everyone Ignores (The Week)

Building on Roosevelt Institute Fellow Mike Konczal's piece in Democracy Journal on the myth that private charity could replace government, Matt Bruenig argues that the status quo bias – "let's hold on to what works" – protects social safety net programs once they're in place.

Bill to Restore U.S. Unemployment Insurance Likely to Deadlock in Congress (The Guardian)

Dan Roberts reports that John Boehner will not allow a vote on extended unemployment insurance, which lapsed in December, without provisions to encourage job growth, though the GOP hasn't offered any big ideas.

Labor Department Intervenes on Behalf of Hearst Interns (ProPublica)

In its first amicus brief in an unpaid internship lawsuit, the Labor Department urged the court to use stricter standards to determine whether an unpaid internship is permissible, writes Kara Brandeisky.

Banks Ordered to Add Capital to Limit Risks (NYT)

Federal regulators will increase the leverage ratio, which measures the amount of capital a bank must hold against its assets, writes Peter Eavis. Supporters say this rule is simpler and easier to enforce than other parts of financial reform.

Fed Gives Banks More Time on Volcker Rule Detail (Reuters)

Douwe Miedema reports that banks will get two additional years, through July 21, 2017, to sell off collateralized loan obligations, which the Volcker Rule deems too risky for banks to invest in.

The Unexpected Benefit of Telling People What Their Coworkers Make (The Atlantic)

On Equal Pay Day, many spoke up for pay disclosure as a way to reduce the wage gap. Emiliano Huet-Vaughn's research shows that pay transparency also significantly increases worker productivity.

New on Next New Deal

Is Short-Term Unemployment a Better Predictor of Inflation?

Roosevelt Institute Fellow Mike Konczal argues that we should not ignore long-term unemployment while analyzing how the economy is doing. That makes the Great Recession data make more sense, he says, but isn't applicable today.

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Is Short-Term Unemployment a Better Predictor of Inflation?

Apr 8, 2014Mike Konczal

Alan B. Krueger, Judd Cramer, and David Cho of Princeton recently released a Brookings paper on the state of the labor market titled "Are the Long-Term Unemployed on the Margins of the Labor Market?" Their big headline result is that the long-term unemployed are going to have trouble finding steady work, both as a historical matter and from what we've seen in the Great Recession. It's fascinating work we'll revisit here.

But what does that mean for the job market right now, with its mix of short-term and long-term unemployed? The second takeaway is that if we only look at short-term unemployment, the economy makes more sense than if we look at total unemployment. As Tim Hartford wrote, this research shows that if "we replotted the Phillips curve['s mix of inflation and unemployment]... using statistics on short-term unemployment... it turns out that the old statistical relationships would work just fine." Some are arguing that we should just focus on short-term unemployment for the moment as an indicator of how the economy is doing.

Is that the case? Not really. We should be careful with this argument now, because this is really a matter of 2009-2012. Back then, the question was why inflation was as steady as it was given very high unemployment. In 2014 the question is very different: why is inflation so low given high unemployment and the relationship of the past several years? We need to explain a different problem.

Let's look at a key chart from the Krueger paper (green boxes my addition):

This is the change in core inflation versus unemployment. (There's a similar dynamic with wage inflation in a different chart.) The left graphic is the change in core inflation versus overall unemployment, and the right graphic is the change versus short-term unemployment. As the paper's authors argue, it's a much tighter relationship if you just look at short-term unemployment. But there are three things to note here.

First, as flagged in the green box in the left graphic, the outliers are the years 2009-2012. Looking at their wage inflation version of this in particular, the authors note that they get a higher R-squared and better predictive value using short-term unemployment. But replicating this chart (data), if you simply take out 2009-2011, you also end up with the higher R-squared and better predictive value.

More importantly, as a second matter look at where we are now via the 2013 data point. The total unemployment number for 2013 is right on the line in the left graph. However, as we can see from the green circle on the right, using short-term unemployment shows inflation much lower than anticipated. This is not surprising; one of the more important economic stories of 2013 was the collapse of inflation. Note that if the labor market were actually getting much tighter, inflation should have been increasing during this time period. More broadly, if the problem were the preponderance of long-term unemployed in the general labor market, we wouldn't expect 2013 to go into freefall and hop over the trendline as it did.

I'm very interested in why we didn't collapse into deflation from 2009 to 2011. I imagine the Fed has something to do with it. But as a third point I'd be a little cautious about using just short-term unemployment during that time as an important indicator about the labor market, as job separations collapsed during the crisis. A low short-term unemployment rate reflects people simply not leaving their jobs more than it reflects the idea that the economy was doing better than we'd expect.

But this question is also a historical one. Krueger and his co-authors acknowledge this, using phrasing like "since 2009" as the basis of their paper. But other people might not catch this, and assume that the short-term unemployment rate is crucial for right now. But that doesn't reflect our current situation of low inflation, a falling rate of long-term unemployment, and an unemployment rate that is going to be stuck in the mid-6% range for some time. We shouldn't use a way of adjusting data to examine what was going on in 2010 to argue there's less slack than there actually is out here in 2014.

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Alan B. Krueger, Judd Cramer, and David Cho of Princeton recently released a Brookings paper on the state of the labor market titled "Are the Long-Term Unemployed on the Margins of the Labor Market?" Their big headline result is that the long-term unemployed are going to have trouble finding steady work, both as a historical matter and from what we've seen in the Great Recession. It's fascinating work we'll revisit here.

But what does that mean for the job market right now, with its mix of short-term and long-term unemployed? The second takeaway is that if we only look at short-term unemployment, the economy makes more sense than if we look at total unemployment. As Tim Hartford wrote, this research shows that if "we replotted the Phillips curve['s mix of inflation and unemployment]... using statistics on short-term unemployment... it turns out that the old statistical relationships would work just fine." Some are arguing that we should just focus on short-term unemployment for the moment as an indicator of how the economy is doing.

Is that the case? Not really. We should be careful with this argument now, because this is really a matter of 2009-2012. Back then, the question was why inflation was as steady as it was given very high unemployment. In 2014 the question is very different: why is inflation so low given high unemployment and the relationship of the past several years? We need to explain a different problem.

Let's look at a key chart from the Krueger paper (green boxes my addition):

This is the change in core inflation versus unemployment. (There's a similar dynamic with wage inflation in a different chart.) The left graphic is the change in core inflation versus overall unemployment, and the right graphic is the change versus short-term unemployment. As the paper's authors argue, it's a much tighter relationship if you just look at short-term unemployment. But there are three things to note here.

First, as flagged in the green box in the left graphic, the outliers are the years 2009-2012. Looking at their wage inflation version of this in particular, the authors note that they get a higher R-squared and better predictive value using short-term unemployment. But replicating this chart (data), if you simply take out 2009-2011, you also end up with the higher R-squared and better predictive value.

More importantly, as a second matter look at where we are now via the 2013 data point. The total unemployment number for 2013 is right on the line in the left graph. However, as we can see from the green circle on the right, using short-term unemployment shows inflation much lower than anticipated. This is not surprising; one of the more important economic stories of 2013 was the collapse of inflation. Note that if the labor market were actually getting much tighter, inflation should have been increasing during this time period. More broadly, if the problem were the preponderance of long-term unemployed in the general labor market, we wouldn't expect 2013 to go into freefall and hop over the trendline as it did.

I'm very interested in why we didn't collapse into deflation from 2009 to 2011. I imagine the Fed has something to do with it. But as a third point I'd be a little cautious about using just short-term unemployment during that time as an important indicator about the labor market, as job separations collapsed during the crisis. A low short-term unemployment rate reflects people simply not leaving their jobs more than it reflects the idea that the economy was doing better than we'd expect.

But this question is also a historical one. Krueger and his co-authors acknowledge this, using phrasing like "since 2009" as the basis of their paper. But other people might not catch this, and assume that the short-term unemployment rate is crucial for right now. But that doesn't reflect our current situation of low inflation, a falling rate of long-term unemployment, and an unemployment rate that is going to be stuck in the mid-6% range for some time. We shouldn't use a way of adjusting data to examine what was going on in 2010 to argue there's less slack than there actually is out here in 2014.

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Daily Digest - April 8: Equal Pay Still Isn't a Reality

Apr 8, 2014Rachel Goldfarb

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Why the GOP is Wrong About the Pay Gap (MSNBC)

With President Obama signing executive orders to fight the pay gap on Equal Pay Day, Irin Carmon lays out the shortcomings in the current system for fighting pay discrimination.

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Why the GOP is Wrong About the Pay Gap (MSNBC)

With President Obama signing executive orders to fight the pay gap on Equal Pay Day, Irin Carmon lays out the shortcomings in the current system for fighting pay discrimination.

Cities Advance Their Fight Against Rising Inequality (NYT)

Cities are working to fight inequality locally because they aren't willing to wait on the federal government, writes Annie Lowrey. Seattle, which is debating a $15-an-hour minimum wage, is a prime example.

  • Roosevelt Take: Roosevelt Institute President and CEO Felicia Wong gave the closing remarks at Seattle's Income Inequality Symposium on March 27.

Maryland Set to Increase Its Minimum Wage to $10.10 by 2018 (WaPo)

Jenna Johnson reports on the final agreement on the minimum wage in the Maryland legislature. Maryland is the second state to take President Obama's advice and lead the charge for a $10.10 minimum wage.

Congress May Extend Corporate Tax Breaks But Not Unemployment Benefits (National Priorities Project)

Mattea Kramer points out a case of classic Washington illogic: Congress is preparing to extend corporate tax breaks worth $700 billion, but won't extend unemployment insurance because it would add $10 billion to the deficit.

GOP Grapples With The Unsettling Fear That Obamacare May Succeed (TPM)

Sahil Kapur says the 7 million Americans and potential voters who registered for insurance on the exchanges during open enrollment create a challenge for Republican candidates, whose base still supports repeal.

Yes, Rubio's Antipoverty Plan Would Cut Benefits to Working Parents (TNR)

Danny Vinik writes that it's mathematically impossible for Senator Rubio's plan to increase benefits for childless working adults and remain deficit-neutral, as his office has claimed it will, without reducing benefits to parents.

Workers on the Edge (TAP)

David Bensman looks at the difficulties faced by workers whose employers misclassify them as independent contractors. Employers do this to avoid paying workers' compensation, overtime, and even some taxes.

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Daily Digest - April 7: Monopolies are a Net Loss for Economic Growth

Apr 7, 2014Rachel Goldfarb

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How to Build a High-Speed Broadband Network in Seattle (Seattle Times)

Roosevelt Institute Fellow Susan Crawford explains how Internet service provider monopolies limit the Seattle mayor's goals for economic growth, and how the city could go about installing high-speed fiber.

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How to Build a High-Speed Broadband Network in Seattle (Seattle Times)

Roosevelt Institute Fellow Susan Crawford explains how Internet service provider monopolies limit the Seattle mayor's goals for economic growth, and how the city could go about installing high-speed fiber.

Not Your Grandpa’s Labor Union (Boston Globe)

Leon Neyfakh looks at efforts to reshape labor organizing in light of precarious relationships between employees and employers. He speaks to Roosevelt Institute Fellow Dorian Warren about the approach he and colleagues take with the Future of Work Initiative.

  • Roosevelt Take: The Future of Work Initiative recently released a white paper on labor regulation and enforcement by Fellow Annette Bernhardt, and a report on worker organizing by Senior Fellow Richard Kirsch.

U.S. Adds 192,000 Jobs in March as Unemployment Rate Remains at 6.7% (The Guardian)

Job growth was lower than economists expected, says Heidi Moore, which seems to confirm that the U.S.'s economic recovery is, as Fed Chair Janet Yellen put it, "far from complete."

Labor Secretary: Long-term Unemployment Keeps Me up at Night (Five Thirty Eight)

Ben Casselman speaks to Tom Perez following the release of the March jobs report. Perez says government needs to do more for the long-term unemployed, but the cost of such programs is challenging.

Obama To Sign Executive Orders On Equal Pay (HuffPo)

Laura Bassett reports that the president's orders will mirror the likely-to-fail Paycheck Fairness Act, which is meant to hold contractors more accountable for sex- or race-based salary differences.

Under Pressure, Wal-Mart Upgrades its Policy for Helping Pregnant Workers (WaPo)

Unfortunately, writes Lydia DePillis, while Wal-Mart's new policy is an improvement, it still might not be enough to ensure the company accommodates pregnant workers on the job instead of forcing them out of work.

New on Next New Deal

Labor Law for All Workers: Empowering Workers to Challenge Corporate Decision Making

Roosevelt Institute Senior Fellow Richard Kirsch concludes his series on his new report on labor reform by discussing additional policy proposals that push back on the major challenges of organizing workers in today's economy.

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Labor Law for All Workers: Empowering Workers to Challenge Corporate Decision Making

Apr 4, 2014Richard Kirsch

This is the sixth and last in a series of posts summarizing a new Roosevelt Institute report by Senior Fellow Richard Kirsch, entitled "The Future of Work in America: Policies to Empower American Workers to Ensure Prosperity for All." The report provides a short history of how the rise and decline of unions and then explores reforms in labor policy to empower American workers to organize unions and rebuild the middle class.  Today’s post outlines possible policy solut

This is the sixth and last in a series of posts summarizing a new Roosevelt Institute report by Senior Fellow Richard Kirsch, entitled "The Future of Work in America: Policies to Empower American Workers to Ensure Prosperity for All." The report provides a short history of how the rise and decline of unions and then explores reforms in labor policy to empower American workers to organize unions and rebuild the middle class.  Today’s post outlines possible policy solutions to several major challenges to organizing workers in today’s economy. Over the next year, the Future of Work project will be exploring many of these ideas in depth. Their inclusion here is to begin surfacing ideas, rather than as final recommendations for reform.

If we are to give American workers the ability to bargain for a fair share of the wealth they create, we need strengthen labor law – as discussed in my last post – and bring in 34 millions workers (one-in-four) who are now excluded from the National Labor Relations Act.  These include domestic workers, farmworkers, front-line workers with minimum supervisory responsibilities, and public employees. The law should also be extended to include many workers now considered “independent contractors, ” even though an employer effectively determines their pay and working conditions. Examples range from truck drivers and cab drivers to adjunct faculty.

Some of the most innovative and effective organizing of low-wage workers is being done by new types of worker organizations. Worker centers and other groups can and often do perform public services, such as job training, occupational safety and health training, monitoring compliance with labor laws and enrolling workers in a variety of public programs. Government funding should be awarded to the worker groups for these services. Public entities could also bargain directly with worker groups, such as those representing home health care workers. And when government directly or indirectly pays for workers – for example home health care workers are funded by Medicare and Medicaid, – it should require that workers have decent wages and benefits, and provide sufficient funding.

We should also imagine broadening the scope of traditional labor law in the United States, to challenge traditional corporate prerogatives in the economy. When corporate growth comes at the expense of workers, it slows down the economy, because workers have less to spend. Corporations hurt communities when they relocate to seek lower paid workforces and lower taxes, or lobby against worker protections. When corporations lobby for lower taxes, they shirk their responsibility to pay for public services – from the roads on which they transport their goods, to the schools that educate their workers – resulting in deteriorating services and higher taxes on individuals and other businesses that do not get tax breaks.

Organized workers can serve as a powerful antidote to the concentration of corporate power. The law should block corporations from transferring jobs from unionized to non-unionized facilities and from making long-term investment decisions that modernize non-union facilities at the expense of union facilities. Under current law, these practices are banned only when the NLRB can prove that the employer was motivated by anti-union bias, a high bar that is difficult to reach.

The law should require unionized employers to recognize the union as the representative of new workers at any new facilities that the employer establishes or acquires. Unionized employers should not be allowed to close their business or specific facilities without first offering them for sale on the market. Bankruptcy courts should not be able to change union contracts without permission from the union.

The scope of subjects over which employers are currently required to bargain with their employees could be expanded to a number of other subjects that impact workers and communities, including the introduction of new products, decisions to invest in new facilities, pricing, and marketing. In that way, the welfare of workers - not just the interests of shareholders and executives – would be considered in business decisions. Strikes could also be allowed over a broader range of corporate policies, including decisions that impact communities and consumers.

Workers could also be given more of a role in corporate decision-making by requiring employers to allow the formation of “works councils,” an organizational form common in European countries. Works councils are established jointly by employers and worker organizations to represent workers in decisions in the workplace, ranging from personnel and management decisions to policies governing working conditions and major investments and locations. The current provisions in the NLRA, which are designed to block the formation of employer-controlled unions, may need to be amended to clarify that works councils may be set up when the workers approve of the councils and are not objectively dominated by the employer. Another measure would require that corporate boards of directors include representatives of unions, who would have full access to all corporate data.

Local, state, and federal governments could leverage public contracts and subsidies to require employers to comply with workers’ rights to organize. For example, they could prohibit employers from running anti-union campaigns and they could require the recognition of card check elections or other forms of establishing majority support. Government could also require that firms that receive public contracts and subsidies meet standards for pay and benefits, as President Obama has done with his recent executive order establishing a $10.10 minimum wage for workers of federal government contractors.

I’ll conclude with an observation about the politics of the variety of purposely-ambitious policy ideas I’ve outlined in the last two posts in this series. Good ideas can play a key role in organizing workers and in the other ways of making change. It is much easier to get where you want to go if you know where you want to go. Good ideas give people hope that there can be a better world and help them see the way forward.

But the power to win these policies will come through organizing people at work and in their communities, through changing culture and the public’s understanding of the importance of organized workers in moving the economy forward. The most important of these will be organizing workers to demand that they receive a fair share of the wealth they help create.

We hope that the ideas and discussion generated by the Future of Work in America will inspire Americans to ensure that every job respects the dignity and value of every worker, as we build an America of broadly shared prosperity.

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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Daily Digest - April 4: McCutcheon Makes Money Speak Louder

Apr 4, 2014Rachel Goldfarb

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Big Money in Politics (ABC World News)

Roosevelt Institute Senior Fellow Jonathan Soros speaks with Brian Ross about political spending in the post-McCutcheon era, with no limits on aggregate campaign contributions.

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Big Money in Politics (ABC World News)

Roosevelt Institute Senior Fellow Jonathan Soros speaks with Brian Ross about political spending in the post-McCutcheon era, with no limits on aggregate campaign contributions.

Supreme Court Decision Opens Floodgates for More Campaign Cash (Real News Network)

Roosevelt Institute Senior Fellow Tom Ferguson discusses how the McCutcheon decision will affect American democracy. He says that without public campaign financing, just a few people get to control the system.

Fast Food Workers Will Protest Again Today. Here's What They're Up Against. (MoJo)

When fast food workers rally for a $15-an-hour wage, they're facing a well-funded and well-coordinated restaurant industry. Erika Eichelberger runs through the numbers from a new report on the restaurant lobby.

Emails Show Sen. Corker’s Chief of Staff Coordinated with Network of Anti-UAW Union Busters (In These Times)

Mike Elk reports on leaked documents showing that members of Tennessee Senator Bob Corker and Governor Bill Haslam's staffs worked directly with anti-union groups during the union drive at the Chattanooga Volkswagen plant.

Ryan Budget Gets 69 Percent of Its Cuts from Low-Income Programs (Off the Charts)

With $3.3 trillion of the budget's $4.8 trillion in non-defense spending cuts coming from programs that support low-income Americans, Richard Kogan questions the rhetoric of the Ryan budget helping the poor.

New on Next New Deal

In the Wake of McCutcheon, Can Democracy Tame Capital?

Roosevelt Institute Senior Fellow Richard Kirsch ties the McCutcheon v. FEC decision to Thomas Piketty's new book, Capital in the 21st Century, as the Supreme Court has just increased the power of wealth in this country.

Farewell, Campaign Finance Restrictions, and Hello, Mega-Donors

Jeff Raines, Chair of the Student Board of Advisors for the Roosevelt Institute | Campus Network, looks at the McCutcheon decision and the state of campaign finance law and considers what's to come in the 2014 elections.

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