One aspect that defines our current economy is that things are happening that shouldn’t be happening. I don’t mean that things are happening that are illegal or immoral. (Well, some of them are immoral, but that’s not what I mean.) Rather, things are happening that defy economic logic—a slippery term that really means, the economic patterns of roughly the past half-century.
The first such logic-defying thing is that corporate profits are soaring even as corporate revenues limp along. The quarterly reports of S&P 500 corporations for the first three months of 2013 are almost entirely in now, and they show profits rising by more than 5 percent even while revenues have risen by less than 1 percent. Seventy percent of these companies—the largest publicly traded U.S. firms—exceeded the analysts’ profit projections. On the other hand, 60 percent came in under the projections for their sales.
The strikes of fed-up fast-food workers move westward with the sun. On Wednesday evening, fast-food employees in St. Louis, like their peers in New York and Chicago earlier this spring, staged a one-day strike to dramatize the low wages they, and millions of American workers in the restaurant and food sectors, take home.
New York Attorney General Eric Schneiderman, who headed a group of state attorneys general that won homeowners and former homeowners a $26 billion settlement from five mega-banks over their foreclosure abuses, announced yesterday that he’d sue two of the banks—Wells Fargo and Bank of America—for allegedly violating the terms of the settlement.
Say you’re an employer with an employee who works 30 hours a week. If you have 50 employees or more come next year, you’ll be required either to provide her with health-care coverage, which the Affordable Care Act will by then mandate for all employees who work at least 30 hours a week, or you’ll have to pay a $2,000 penalty for failing to cover her.
Or, you could just cut her weekly hours to 29. That way, you won’t have to pay a dime, in either insurance costs or penalties.
Yesterday—April 24th—was a red-letter day in the annals of worker mobilization in post-collective-bargaining America. In Chicago, hundreds of fast-food and retail employees who work in the Loop and along the Magnificent Mile called a one-day strike and demonstrated for a raise to $15-an-hour and the right to form a union. At more than 150 Wal-Mart stores across the nation, workers and community activists called on the chain to regularize employees’ work schedules. And under pressure from an AFL-CIO-backed campaign of working-class voters who primarily aren’t union members, the county supervisors of New Mexico’s Bernalillo County voted to raise the local minimum wage.
We can stop a plot. Get a group of would-be terrorists meeting with each other and our agents can infiltrate it. Get them meeting in Yemen and we can send in the drones. Let North Korea threaten the South and we can threaten them, completely plausibly, with obliteration. Scale is our friend—we know how to detect enemies who go to scale, and we detect so well in these post-9-11 years that it doesn’t take much to go to scale.
Since New York Times columnist David Brooks is the very model of the sentient conservative, his acknowledgements of social reality are often more than just personal—they signal that a particular state of affairs has become incontestable to all but the epistemically shuttered.
Last fall, California voters were confronted with two major and hotly-contested ballot measures—Governor Jerry Brown’s proposal (Proposition 30) to raise taxes on the rich to end the state’s chronic budget shortfalls, and a conservative initiative (Proposition 32) which would have curtailed unions’ ability to spend their treasuries on political campaigns. Proposition 30 passed and Proposition 32 was soundly defeated, but they had to overcome a joint, well-funded campaign by rightwing interests to prevail.
If the sequester had come to California 25 years ago, its effect would have been catastrophic. Today, its effects are decidedly less draconian – but since today’s California has a considerably less robust economy than that of the late '80s, the sequester will still cool off the state’s already tepid recovery.
America’s most futuristic governor seems borne back ceaselessly into the past these days. As he shows me around his office on a crisp winter morning, California Governor Jerry Brown points out not just the desk that his father, Edmund “Pat” Brown, used during his own term as governor from 1959 to 1967 but also photos of his grandparents and his great-grandfather, who came to California in the gold rush years. “He knew John Sutter,” Brown says. The only two governors in the past half-century who were native Californians, he points out, were he and his father.
Cristina Romer, Berkeley economics professor and the former head of President Obama’s Council of Economic Advisers, passed judgment on the merits of raising the minimum wage in Saturday’s New York Times, and in the process made clear why she wasn’t a member of the president’s de facto council of political advisers. She argued, as some mainstream economists do, that the merits of a heightened minimum wage were slight—that it may, for instance, raise prices, offsetting the gain to low-wage workers.
In announcing Thursday that he would no longer negotiate with President Obama over a deal to reduce the nation’s budget deficit, House Speaker John Boehner said that Republicans would support no more tax increases. The question, he said, came down to “how much more money we want to steal from the American people to fund more government. I’m for no more.”
If Republicans have any political sense at all, they’ll support not just raising the minimum wage, but indexing it.
The economic case for raising the wage, at a time when economic inequality is rampant, working-class incomes are declining, and Wal-Mart sales are falling through the floor, is overwhelming. But while Republicans may blow off the economic consequences of not raising the federal standard, they can’t be so cavalier in dismissing the political consequences.
Tuesday’s House Judiciary Committee hearing on the status of the undocumented produced a united front of Republican support for legalizing those immigrants, but not allowing them to become citizens. Well, an almost united front.
House Republicans convened their first hearing on immigration reform on Tuesday and made clear that they were scared to death of immigrants actually getting the vote. Judiciary Committee Chairman Bob Goodlatte of Virginia set the tone when he made clear he was looking for a mid-range position somewhere between deporting and granting citizenship to the 11 million undocumented immigrants in the United States. A nice, safe legal “resident” status, he suggested, never to be upgraded to that of citizen and voter.
Harold Meyerson is the editor-at-large at The American Prospect and a columnist for The Washington Post. His articles on politics, labor, the economy, foreign policy, and American culture have also appeared in The New Yorker, The Atlantic, The New Republic, The Nation, The New Statesman; the op-ed, commentary, and book review sections of The New York Times, The Washington Post, andthe Los Angeles Times, and in numerous other publications.