UNITE HERE, the union of U.S. and Canadian hotel workers, and the Hyatt chain announced a wide-reaching agreement on Monday afternoon that will give Hyatt employees in currently non-union hotels across the nation the right to choose a union without having to face management opposition. In return, UNITE HERE announced it is lifting its global boycott of Hyatt hotels.
We often think of business leaders as hard-nosed pragmatists, guided by dollars and cents with little regard to emotion. But the truth is that corporate executives are human just like the rest of us. They can be as irrational as anyone, and frequently make business decisions on the basis of things like spite.
Is the National Security Agency wasting tax dollars by paying Booz Allen to handle routine intelligence tasks, such as the systems administration work that 29-year old Edward Snowden was doing for $122,000 a year? It sure seems that way.
In the quest to understand what happened to the U.S. economy since the 2008 meltdown and the recession that followed, the challenge has been figuring out how far back to pull the lens. Early books on the crisis zoomed in on airless rooms occupied by panicked CEOs and government officials during the pathetic last few months of the Bush administration and the beginning of this one. More expansively reported accounts looked at lower-level traders and fly-by-night firms, expanding the scope to recognize a decade of mortgage fraud and exploitation of would-be homeowners and investors, along with the Washington corruption that allowed the profiteers to thrive unpunished.
Over the past month, an oceanic divide has opened between European and American retailers on the question of how to respond to the manmade epidemic of deadly disasters in the garment industry of Bangladesh, the world’s second largest clothing exporter. In the aftermath of the Rana Plaza fire on April 24, which killed at least 1,127 workers, a group of roughly 40 European retailers—including H&M, Carrefour, Benneton, Tesco, and Marks & Spencer—signed on to a plan binding them to fund both a regimen of independent factory inspections and the improvements required to make those factories safe.
The main item of business before JP Morgan Chase’s annual shareholder meeting, which will convene today in Tampa, is whether JPM CEO Jamie Dimon will be stripped of his additional post as chairman of JPM’s board of directors. A range of institutional investors concerned about the over-concentration of power atop the nation’s most powerful institutions, and upset by the $6 billion loss JPM took last year at its London trading desk, won roughly 40 percent shareholder support last year to separate the two positions. This year, they hope to do better, even though the bank’s public-relations offensive on Dimon’s behalf has made the prospect of winning a majority more difficult.
If you’re looking for the personification of the Washington economic establishment, you could do a lot worse than Fred Bergsten. National Security Council economics deputy under Henry Kissinger (at age 27), then head of the international desk and the monetary portfolio in Jimmy Carter’s Treasury Department, and from 1981 through last year the founding director of the Peterson Institute for International Economics, Bergsten has been a forceful advocate for what used to be called the Washington Consensus: an unflagging belief in the virtues of free trade and fiscal discipline.
In case it slipped your mind during all this talk of scandal and impeachment, official Washington has spent the last couple of years gnashing its teeth about the budget deficit. Even as European austerity policies threw the continent into a period of extended despair, Republicans and their allies in the well-appointed conference rooms of "centrist" think tanks told us sternly that unemployment would have to wait; the most immediate crisis was the deficit.
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.
In 2011, Jacob Hacker wrote a ground-breaking paper in which he coined the phrase predistribution. Under Hacker's definition, predistribution refers to measures governments take to reduce or eliminate inequality in market incomes. This differs from redistribution, which Hacker uses to mean measures states take to reduce or eliminate inequality after market incomes have been distributed, for instance through taxes and government benefit programs.
It’s official: The spending cuts of 2011 and 2012, pushed by Republicans as necessary given our deficits, have damaged the recovery and kept more people out of work. According to Jackie Calmes and Jonathan Weisman of The New York Times, “The nation’s unemployment rate would probably be nearly a point lower, roughly 6.5 percent, and economic growth almost two points higher this year if Washington had not cut spending and raised taxes as it has since 2011.”
My name is Roxanne Mimms and I work for a food service contractor at the National Zoo. I work full time but make barely minimum wage. I’m here because workers can’t live off what contractors pay us. I’m here because I don’t want my two children to grow up on public assistance. I’m here because I have dreams – My American Dream is a good job with fair wages to provide for my children, being able to pay my bills on time and save for the future. I’m here because I want to help all the workers at the National Zoo whose dreams are on hold.”