Economy

Why the Legacy of Katrina on New Orleans Is Different From Disasters That Befell Other Cities

Nine years after the storm, why is it that divine retribution remains in the discussion when considering Katrina?

(AP Photo/Dave Martin)
Rescue personnel search from victims as they traverse the New Orleans 8th Ward in the flooded city of New Orleans on Tuesday, Aug. 30, 2005. Water continued to rise after the onslaught of Hurricane Katrina, which pounded the coast on August 29. H ow to remember Hurricane Katrina? I consider this each year as the anniversary approaches. I assume it’s something that most people do when the anniversary of a traumatic event draws near. New Orleans is not my hometown; I grew up two hours northwest from it in Louisiana’s fourth largest city, Lafayette . The day before Katrina reached land, my sister, who was in law school at Loyola University, called me (I was living in New York at the time) and said she was driving home. Everything from news to gossip portended the same: that Katrina was a beast and everyone should get out, or, at the very least, find adequate shelter. She fit as much from her apartment into her car as was humanly possible, boarded up her windows as best she could and...

Still Nader After All These Years

(AP Photo/George Ruhe, File)
(AP Photo/George Ruhe, File) In this April 27, 2008, file photo, Ralph Nader speaks to supporters as he campaigns for his 2008 independent presidential bid in Waterbury, Connecticut. F or many Democrats who came of age after 2000, Ralph Nader is a crank who cost Al Gore the presidency. But Nader deserves a more honored place in the progressive pantheon. Over the years, Nader has understood the stranglehold of corporate power on democracy as well as anyone, and throughout his career he has creatively organized counterweights. In the heyday of postwar reform, the 1960s and 1970s, Nader-inspired groups prodded and energized Congressional allies to enact one piece of pro-consumer legislation after another. As both a journalist and senior Senate staffer in that era, I can attest that nobody did it better than Nader. Since then, Nader has been a prophet, often without honor in his own coalition. I should add that I go back a long way with Ralph Nader. When I was in Washington, D.C., in the...

The Snake in the Market Basket: Can the Company Recover From Employee Revolt Without Loading Up With Debt?

(AP Photo)
(AP Photo) Market Basket assistant managers Mike Forsyth, left, and John Surprenant, second from left, hold signs while posing with employees in Haverhill, Mass., Thursday, July 24, 2014, in a show of support for "Artie T." Arthur T. Demoulas, the chief executive of the Market Basket supermarket chain whose ouster has led to employee protests, customer boycotts and empty shelves. Aurthur T. Demoulas has since been restored as the CEO. W ednesday night, the long-running Market Basket drama ended and the good guys ostensibly won. Or did they? When we last tuned in, the employees of the $4 billion family-owned New England supermarket chain were rallying behind a beloved boss, Arthur T. Demoulas, who had been ousted by a greedy board of directors. In the family feud, the board was led by a Demoulas cousin, also named Arthur, who controlled 50.5 percent of company shares. The good Arthur was beloved for paying above-average wages, sponsoring a profit-sharing plan, and pumping earnings back...

T-TIPping Point: Rise of Corporate Right Greater Menace than Rise of Far Right

(AP Photo/Richard Drew)
AP Photo/Richard Drew T he latest reports from Europe indicate that the continent is slipping back into recession. The U.S. is doing only slightly better, with positive economic growth but scant progress on the jobs front, and no growth in the earnings of the vast majority of Americans. Meanwhile, global climate change continues to worsen, producing unprecedented policy conundrums of how to reconcile the very survival of the planet with improved living standards for the world's impoverished billions, and for most Americans, whose real incomes have declined since the year 2000. Amid all of these serious challenges, what common strategies are top U.S. and European leaders pursuing? Why, a new trade and investment deal modeled on NAFTA, to make it harder for governments to regulate capitalism. The proposed deal, known as T-TIP (for Trans-Atlantic Trade and Investment Partnership) would define well-established domestic policies as illegitimate restraints of "trade," including protections...

François Hollande’s Terrible, Horrible, No Good, Very Bad Week

When the Socialist president of France threw in with German Chancellor Angela Merkel and her austerity agenda, his own government was thrown into turmoil. The backstory involves ambitious rivals.

(Chris Jackson/PA Wire - Press Association via AP Images)
Chris Jackson/PA Wire (Press Association via AP Images) German Chancellor Angela Merkel greets President Francois Hollande of France during an International Ceremony with Heads of State at Sword Beach in Normandy to mark the 70th Anniversary of the D-Day landings on Friday, June 6, 2014. I t began last Wednesday, when French President François Hollande gave Le Monde an interview in which he insisted he would stay the course with an economic policy that has seen his approval rating plummet from 60 percent, just after his election in 2012, to 17 percent this week. Hollande’s domestic strategy is part of his close and somewhat baffling alliance with German Chancellor Angela Merkel, the enforcer of European austerity. At the center of Hollande’s domestic policy is the so-called Responsibility Pact , which proposes shifting employer-paid payroll taxes to individual taxpayers, coupled with unspecified cuts in government spending. The measure is deeply unpopular, especially on the Left, so...

How a Widely Beloved Tax Deduction Really Just Benefits the Well-Off and Exacerbates Inequality

National opinion polls show a majority of Americans support the mortgage interest deduction. Yet most U.S. homeowners receive very little benefit from it.

(AP Photo/Gene J. Puskar)
(AP Photo/Gene J. Puskar) This May 2, 2012, photo, shows a new home under construction in Bridgeville, Pennsylvania. A nyone who is concerned about the country’s growing inequality crisis should be pushing for reform of the feature of the U.S. tax code known as the mortgage interest deduction. Not only does this wasteful tax subsidy primarily benefit the richest Americans, it also costs the U.S. Treasury between $70 and $100 billion annually in revenue, making it the third largest deduction on the books. National opinion polls indicate that between 60 and 90 percent of Americans support the mortgage interest deduction (MID), which allows taxpayers to deduct interest on $1.1 million in mortgages on primary residences, vacation homes and even yachts. And yet because of the way this tax subsidy is structured most U.S. homeowners receive very little if any benefit from it. Indeed, in its current form, the MID’s biggest beneficiaries are the real estate industry and its wealthiest...

No Jobs But Crappy Jobs: The Next Big Political Issue?

(AP Photo/The Brownsville Herald, Brad Doherty)
(AP Photo/The Brownsville Herald, Brad Doherty) Wal-Mart employee Nidia Flores arranges shirts, Thursday, August 7, 2014, in Brownsville, Texas. F or decades, the increasing precariousness of work has been a source of mass frustration for tens of millions of Americans. But the issue has been largely below the political radar. Politicians ritually invoke good jobs at good wages, yet presidents have been unwilling to name, much less remedy, the deep economic forces that are turning payroll jobs into what I've termed "The Task Rabbit Economy"—a collection of ad hoc gigs with no benefits, no job security, no career paths, and no employer reciprocity for worker diligence. But there are signs that maybe this issue is starting to break through. One manifestation of job insecurity is extremes of inequality as corporations, banks, and hedge funds capture more than their share of the economy's productive output at the expense of workers. The Occupy movement gave that super-elite a name: the One...

What Judges Know: The Fault for Underfunded Pensions Lies With Politicians, Not Workers

We can’t count on politicians to stick to their word. It’s promising that judges are forcing them to.

(AP Photo/Mel Evans)
(AP Photo/Mel Evans) Union members carry protest signs as they march outside the Mercer County Criminal Courthouse before arguments Wednesday, June 25, 2014, in Trenton, N.J., over New Jersey Gov. Chris Christie's plan to use pension payments to balance the budget. Public employee unions on Wednesday tell the court the current budget has unspent funds that could go toward pensions. A dvocates of gutting public pensions are running into the same wall over and over again. From California to Illinois to New Jersey and beyond, pension gutting efforts are being overturned by judges who recognize that breaking promises to workers isn’t just regrettable, it’s illegal. Pension opponents castigate the courts as the enemy while conveniently ignoring why legal protections exist in the first place—to protect public employees from politicians who spent years playing politics with their retirement savings. For decades, elected officials across the country skipped pension payments, often while...

Education Alone Is Not the Answer to Income Inequality and Slow Recovery

Chris Ison/PA Wire via AP Images
O ur economy is now five years into an economic recovery, yet the wages of most Americans are flat. For the entire period between 1979 and 2013, median worker wages rose by just 7.9 percent while the economy’s growth and productivity rose 64.9 percent. The top one percent has made off with nearly all of the economy’s gains since 2000. I s there nothing that can be done to improve this picture? To hear a lot of economists tell the story, the remedy is mostly education. It’s true that better-educated people command higher earnings. But it’s also the case that the relative premium paid to college graduates has been declining in recent years. If everyone in America got a PhD, the job market would not be transformed. Mainly, we’d have a lot of frustrated, over-educated people. The current period of widening inequality, after all, is one during which more and more Americans have been going to college. Conversely, the era of broadly distributed prosperity in the three decades after World War...

Surprise! North Carolina Cuts to Jobless Benefits Did Not Help Workers

Republican leaders argued that rolling back unemployment benefits would increase employment in the Tar Heel State. Nice try.

AP Photo/Allen G. Breed
(AP Photo/Allen G. Breed) Julie Banner, right, chats with Rebekah Lowe outside the state unemployment office in Cary, North Carolina, on Thursday, Jan. 8, 2009. This article and accompanying interactive chart were first published at the website of the Economic Policy Institute . U nemployment insurance (UI) is a vital part of America’s social safety net, providing benefits to eligible workers who have lost a job through no fault of their own. The system is jointly funded by federal and state payroll taxes, but within broad guidelines from the Department of Labor, states have considerable flexibility in deciding benefit eligibility, how much and for how long beneficiaries are paid, as well as the tax structure for funding the state portion of the program. While most states offer a maximum of twenty-six weeks of UI benefits, the historic magnitude and duration of unemployment brought on by the Great Recession prompted Congress to implement federal extensions of unemployment benefits,...

How the GOP's Medicaid Politics Are Hurting Rural Southerners: An Index of Harm

Republican governors, empowered by the Supreme Court, have refused federal funds for the expansion of the program that provides health care to low-income people and the poor. Here's the human cost.

©Jenny Warburg
©Jenny Warburg A protester at a 2013 Moral Monday action in North Carolina. The state's General Assembly rejected federal funds to expand Medicaid—funds that would have given coverage to 500,000 state residents without insurance. This index was originally published by Facing South , a website of the Institute for Southern Studies. Date on which Adam O'Neal, the Republican mayor of Belhaven, North Carolina, arrived in Washington, DC after walking 273 miles from his hometown to draw attention to the recent closure of his community's only hospital and to call for Medicaid expansion under the Affordable Care Act to prevent more such closures: 7/28/2014 Date on which Belhaven's hospital, Vidant Pungo, closed after a failed effort by the town to take it over: 7/1/2014 Number of days after the closure that a local resident died when she suffered a heart attack and had to wait an hour for a helicopter to take her to the nearest hospital: 4 Amount in unpaid care Vidant Pungo had provided since...

Thirsty Detroiters Demand End to Water Shut-Offs

Surrounded by the Great Lakes, home to 20 percent of the world’s fresh water, Detroit faces a crisis that is not only paradoxical; it’s complicated.

AP Photo/Detroit News, David Coates
(AP Photo/Detroit News, David Coates) Protesters march over the controversial water shut-offs Friday, July 18, 2014, in Detroit, Michigan. UPDATE: On Thursday, August 7, Mayor Mike Duggan announced a ten-point plan to address the water department's much despised shut-off policy. I n Michigan’s largest city, a water crisis has been raging for months. Since spring, 17,000 city residents have had their water shut off by the Detroit Water and Sewerage Department (DWSD) for unpaid water bills. Now living in unsanitary conditions, citizens in homes without running water can’t even flush a toilet. Deemed by public health officials to be living in inadequate conditions, many parents in homes without water are sending their children to live with family or friends for fear of losing their sons and daughters to Child Protection Services . For the elderly and the ill, lack of home access to water can be fatal. Last week, after weeks of negative news coverage, Detroit Emergency Manager Kevyn Orr...

Cold Porridge For Regular People: The Myth of the Goldilocks Economy

This article originally appeared at The Huffington Post . T he economy grew at an impressive rate of four percent in the second quarter of this year, according to a government report released on Wednesday. But the stock market promptly tanked. The Dow lost more than 317 points Thursday and another 70 points Friday. What gives? Financial markets like it when the economy grows fast enough to signal that the recovery is continuing—but not so fast that labor markets might tighten and workers get more bargaining power to get raises. Markets also worry that if the economy grows too fast, the Federal Reserve might pull back from its policy of low interest rates. Not to worry, brave investors. The Labor Department weighed in with a report on Friday, revealing that the economy added only 208,000 more jobs in July, down from the June performance. The number of long-term unemployed was basically unchanged. Likewise the rate of labor-force participation. And the percentage of people employed...

Liberal Heroes Miss the Mark in Today's Times Columns

(AP Photo/ Francisco Seco)
New York Times columnist Charles Blow sure blew one this morning and, for good measure, so did Paul Krugman—our two most reliably liberal and intelligent columnists! Blow’s subject was the do-nothing Congress. Ordinarily thoughtful and original, this time Blow fell into the media cliché of assigning symmetrical partisan blame for Congressional inaction, as if the two parties were equally culpable. The piece was full of Blow’s signature: accurate statistics. This Congress has passed only 108 pieces of substantive legislation, the lowest in decades, he reports. It was in session an average of only 28 hours a week. Citing the usual cause of “polarization,” Blow indignantly concluded: “Legislating is only a hobby for members of this Congress. Their full time job is raising hell, raising money and lowering the bar of acceptable behavior.” Excuse me, but the problem is not “Congress.” One party—the Democratic Party— behaves quite normally, seeking to do the public’s business. The other...

Hobby Lobby Decision Could Give License to Anti-Labor 'Biblical Economics' Practices

Religious Right leaders have been working hard to convince conservative evangelicals that the Tea Party’s anti-government, anti-union, anti-welfare agenda is grounded in the Bible, setting the stage for more "religious liberty" legal arguments by corporation owners.

AP Photo/Pablo Martinez Monsivais
AP Photo/Pablo Martinez Monsivais A demonstrator dressed as the 'Bible' stands outside the Supreme Court building awaiting the court's decision on the Hobby Lobby case in Washington, Monday, June 30, 2014. The Supreme Court says corporations can hold religious objections that allow them to opt out of the new health law requirement that they cover contraceptives for women. This article originally appeared on Right Wing Watch , the website published by People For the American Way. S upreme Court Justice Ruth Bader Ginsburg wrote in her dissent in the Hobby Lobby case that the Court’s conservative majority had “ventured into a minefield” with its decision. Many of those mines have already been placed by right-wing leaders who claim a religious grounding not only for anti-gay, anti-abortion, and anti-contraception positions, but also for opposition to collective bargaining, minimum wage laws, progressive taxation and government involvement in the alleviation of poverty. In Hobby Lobby ,...

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