Economy

Occupy Oakland

Each week, the Prospect will be profiling a different "Occupy Wall Street" protest across the country. This week: Oakland. Slideshow Occupy Oakland Encampment Over Time Organizers of Occupy Oakland called for a general strike Nov. 2 as a move against the one percent. Protesters expected thousands to march in solidarity with the group. The bay area's protest has been marked by violent clashes with police resulting in the critical injury of Iraq war veteran Scott Olsen, 24.

Rosie the Riveter and the Ironies of Bentonville

When the doors swung open this morning on Alice Walton’s Crystal Bridges Museum of American Art in Bentonville, Arkansas—funded to the tune of $1.4 billion by the Walton Family Foundation—one of its prize possessions was Norman Rockwell’s iconic World War II-era painting of Rosie the Riveter. The painting features a confident, insouciant Rosie on her lunch break, eating a sandwich, with a riveting gun on her lap, a copy of Mein Kampf that she uses as a footstool, and an American flag fluttering in the background. Given the Walton family’s epic history of mistreating its company’s workers, and its company’s female workers more particularly, the inclusion of Rosie in the permanent collection is almost too ironic for words. Nonetheless (otherwise, this blog post would end right here), a few facts from the annals of Wal-Mart (approximately 48 percent of whose stock is still owned by the Walton family) are in order. Such as the average hourly wage of its 1.4 million American employees...

We're Not in Athens Anymore

The selection of Loukas Papademos as prime minister heralds a new era in Greek politics.

Greek and international media cover the statements of the new Greek Prime Minister Lucas Papademos , centre, outside the presidential palace in Athens, Thursday, Nov. 10, 2011. Papademos was named Thursday as the prime minister of the new Greek interim government, charged with keeping the debt-strapped country out of bankruptcy and firmly in the 17-nation eurozone. After four days of intense political negotiations, the 64-year-old former vice president of the European Central Bank was chosen to lead a coalition backed by both the governing Socialists and opposition conservatives that will operate until early elections in February. (AP Photo/Thanassis Stavrakis)
Greeks, Europeans, and anyone else who knew the score breathed a huge sigh of relief at the news that Loukas Papademos, the former deputy head of the European Central Bank, will be Greece’s new prime minister. His appointment, especially compared with some of the other names that were bandied about during the past few days as candidates for the post, is the best one could have hoped for if—at least if one believes that Greece belongs in the eurozone and that an exit from it, which became an ominously fashionable topic of discussion among Europe’s leaders the last few days, would be a disaster not only for Greece but for the whole euro project. As I mentioned Monday, Papademos is a serious man, who has the background and the respect among European leaders that will allow him to guide Greece through the treacherous months ahead. As the country moves forward—his term is expected to last about four to five months, though as he said yesterday, there is no fixed date for new elections—his...

Obama’s Secret Weapon

Will the electorate blame Congress—not the president—for the sour economy?

(Flickr/DRStarbuck)
Michael Tomasky’s piece deserves a few responses. He begins with some unnecessary swipes at political science: Politics is sometimes a science and other times an art. So here we sit, with the election exactly a year away, and the conventional wisdom in the political press is largely driven by the political-science theory of presidential elections and economic determinism: that is, that the results of presidential elections are pretty much strictly a function of economic conditions, and if those are bad (defined by various measures, chiefly the jobless and growth rates), the incumbent will lose. By that theory, Barack Obama is pretty well doomed. And yet I don’t know a soul who thinks he doesn’t stand a decent chance of winning next year. Let’s ignore the oxymoron “pretty much strictly” and assume Tomasky means “strictly.” First point: This is not what political scientists think about presidential elections. Since I’ve written a direct response to the very Economist article that...

Banker's Choice

In this, Monday, Oct. 30, 2006 file photo provided by the Italian presidency, Italian President Giorgio Napolitano, right, shakes hands with Mario Monti on the occasion of the opening of the academic year at the Bocconi university in Milan. Italy's president has unexpectedly named Wednesday, Nov. 9, 2011, as a senator-for-life Mario Monti, the former European competition commissioner who is widely considered to be a top contender for the Italian premiership, now that Silvio Berlusconi has pledged to resign soon. The surprise move Wednesday night could be a prelude to Monti's getting the nod to head the next government. President Giorgio Napolitano's office announced he had chosen Monti, who now runs prestigious Bocconi University in Milan, for the honor. Senators-for-life include notable figures outside of politics and have voting privileges in the Senate. (AP Photo/Enrico Oliverio,Italian Presidency Press office, File)
So Greece has a new prime minister – Lucas Papademos – and Italy looks about to have a new one, too – Mario Monti. To which not just you and I but damn near every Italian and Greek responds, “Who?” Neither Papademos nor Monti has ever held elective office, or even run for one. Neither has been a minister, sub-minister or even civil servant in one of their nation’s ministries. Neither has developed, or sought to develop, a public following from their careers as economic technicians, chiefly on the European supra-national level. Yet each is about to lead a major nation. Papademos and Monti are something new under the sun: national leaders elected by the markets. Imposed, not as pro-consels by foreign occupiers, but by the European banking community, by the finance ministers of the Eurozone powers – chiefly, Germany and France. Each has an impressive resume and a good reputation with the centrist political and economic elites of his own nation, but there’s no reason why the person on the...

Relief for Chicken Farmers

The USDA updates rules protecting small-livestock farmers from big business.

Flickr/Stirwise
Late last week, the United States Department of Agriculture (USDA) sent new rules designed to protect small-scale livestock farmers to the White House for final approval. Farmers have waited more than three years for the changes, which the USDA was directed to review in the 2008 farm bill. The rules haven’t been updated for several decades and have often gone unenforced. In the meantime, the meatpacking industry has grown more powerful, and small farmers have struggled to make ends meet. That is especially true in the chicken industry, in which farmers have basically been forced to contract with a handful of chicken-processing companies and have seen their wages decline drastically. I wrote about it last year for the Prospect in a piece called “The Serfs of Arkansas.” The updated rules will reform the way poultry packers contract with their farmers. Before they can be issued as final, the Office of Management and Budget will determine their cost. The rules will guide the way the Grain...

The Return of Sanity

Issue 2 opponents cheer at a rally co-sponsored by the Cleveland Teachers Union and We Are Ohio in Cleveland as they hear election results sounding the defeat of Issue 2 in the Ohio general election on Tuesday, Novmber 8, 2011. By voting no on Issue 2, Ohioans overturned the controversial Senate Bill 5, which, among other things, limited collective bargaining for 350,000 unionized public workers. (AP Photo/Amy Sancetta)
The common thread in yesterday’s unbroken string of Democratic and progressive victories was the popular rejection of right-wing overreach. From Ohio, where voters overturned by a margin of 61 percent to 39 percent Republican Governor John Kasich’s law stripping public employees of collective-bargaining rights; to Maine, where voters overturned by a margin of 60 percent to 40 percent Republican Governor Paul LePage’s law abolishing Election Day voter registration; to Arizona, where voters recalled Republican state Senate Leader Russell Pearce, the most vehemently anti-immigrant state legislator in the nation; to, will-wonders-never-cease, Mississippi, where voters rejected an initiative declaring a fertilized egg a person from the moment of conception, effectively outlawing abortion and just maybe birth control as well, by a decisive margin of 57 percent to 43 percent, voters shouted a resounding STOP to the rightward gallop of public policy at the hands of the radicalized Republican...

Bunga Bunga and the Bond Market

It’s clear that the markets don’t want Silvio Berlusconi to continue as Italy’s prime minister. They were cheered yesterday, briefly, when word got around that Berlusconi was stepping down, then subsided into their accustomed grumpiness when he denied it. (We know this by following the interest rates on Italy’s bonds, which are soaring, save during the brief moment when it was thought Berlusconi’s departure was nigh.) But the markets’ moment may be at hand. The leaders of two of Europe’s Mediterranean governments are either hanging by a thread (Berlusconi) or have already gone (Greece’s George Papandreou), unable to reconcile the demands of their people not to have their lives decimated by austerity with the markets’ demands for precisely such austerity. Such a moment marks a triumph of the market over democracy, queasy as I am to identify Berlusconi with democracy. After all, it was Berlusconi who brought the logic of the market, and of marketing, into Italian politics, controlling...

Democrats Misbehave, Obama Gets the Time-Out

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When it comes to addressing the economic crisis, creating jobs, or tackling the deficit, Congress is at a standstill and the American people know it. This morning, a poll from the National Journal shows Americans have little faith that Congress will take on the issues that matter most. For example, 68 percent of respondents said it was "very important" for Congress to spend money in order to create new jobs, but only 27 percent thought it was likely to happen. Another poll, this one by The Washington Post , found that 50 percent of Americans believe Republicans are holding up President Obama's jobs bill for political reasons. The public sentiment expressed in these polls should spell disaster for Republicans who are perceived to be recklessly blocking popular legislation. In elections today and a year from now, these sentiments should play to Democrats' favor. The problem, however, is that in hard economic times, the president takes the blame, even if the other party deserves a hefty...

One Big Question

Last Thursday, I attended a conclave, sponsored by the Frederich Ebert Foundation, of about 20 American liberals (chiefly economists and union representatives) and 20 German social democrats (economists, unionists, Social Democratic Party officials, and a couple of stray businessmen) to see what we could learn from each country’s respective economic, social, and political arrangements. Early on, one German friend posed a question to us Americans: “Where’s your [i.e., America’s] learning curve?” What he meant was that Germany and much of continental Europe had relearned certain key lessons after the financial meltdown of 2008 and its calamitous aftermath that America had apparently failed to process—chiefly, the need for an active and resourceful government capable of regulating markets and boosting the economy when the private sector is flat on its back. To be sure, with Northern Europe (Germany in the lead) currently promoting austerity to Southern Europe (Greece above all), it’s not...

Q&A: Justice for Black Farmers

AP Photo/Alex Brandon
On October 27, after a 15-year fight, a federal judge approved a $1.25 billion settlement to black farmers discriminated against by the United States Department of Agriculture (USDA). In 1997, hundreds of farmers filed a class-action suit, in the case Pigford v. Glickman , alleging pervasive discrimination of black farmers by the USDA between 1981 and 1997. For decades, the department, which regularly gives loans to farmers to keep their business afloat, had refused loans to black farmers while awarding greater loans to white farmers of equal standing. Because of an inability to receive loans, many black farmers were forced to forfeit their farms or operate on a smaller scale. In 1999, the judge demanded a settlement for those with claims. More than 40,000 farmers with documented claims joined the suit following the first decision, necessitating a revisiting of the case approved in the 2008 farm bill, which ultimately awarded $100 million toward the settlement. In November 2010,...

The Budget Prescription

Earlier this month, the European Commission launched a new round of investigations targeting the pharmaceutical industry for allegedly colluding to keep low-cost generic drugs off the market. As a result, regulators are looking into the 2005 contractual arrangements between U.S.-based pharmaceutical giant Johnson & Johnson and the generic branches of the Swiss-based company Novartis to see whether the agreements purposely delayed the introduction of a generic version of the painkiller Fentanyl to the Dutch market. The probe is the latest round in an ongoing battle between commission trade officials and Big Pharma over quasi-legal “pay to delay” deals—settlements forged between drug manufacturers and producers of generic alternatives with the goal of extending brand-name monopolies long after patents have expired. Four days after the Europeans moved against Johnson & Johnson, the Federal Trade Commission (FTC) Bureau of Competition issued its annual staff report on pay-to-delay...

Union Busters Going Down

Polls for a referendum on an anti-union law in Ohio indicate repeal.

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Tomorrow, Ohioans will vote on Issue 2, a referendum to repeal an anti-union law that threatens to destroy public-sector unions in the state. Last spring, the governor and majority-Republican legislature passed Senate Bill 5, restricting public unions' ability to strike, collectively bargain with employers, and collect dues. In response, state Democrats and unions put the law on the ballot. Going into tomorrow's vote, it looks like labor will pull it off. A new survey from Public Policy Polling shows 59 percent of voters plan to reject SB 5 on Tuesday, while only 36 percent of voters will vote to approve it. It would be an immediate victory for workers' wages and job stability. As a crucial swing state, the win for labor also bodes well for Democrats in the 2012 elections. The Latest Ohio Set to Vote Big Against Kasich's Anti-Union Bill Talking Points Memo Democrats hatch new jobs bill plan Politico Greek Leaders Reach Deal to Form a New Government The New York Times As crisis spreads...

In Case You Haven't Been Watching

A primer on the #OWS movement

W elcome to The Occupied Weekly , the Prospect 's roundup of #OccupyWallStreet news and analysis. Each week, we'll review the news from Manhattan’s Zuccotti Park and other Occupy movements across the country. For the inaugural edition, we've put together the five key pieces that have helped shape our understanding of what OWS is, where it comes from, and where it could be headed. Think of it as an #OWS for Dummies guide: How #OWS got started http://ampro.me/tgXENL Political scientists Dorian Warren and Joe Lowndes argue that the movement bears little resemblence to 1960s resistance demonstrations. http://ampro.me/sZcTLc Barbara Ehrenreich argues that laws against tent cities weren’t set up to criminalize protest but to punish homelessness. http://ampro.me/usHTKp The movement's fight for diversity http://ampro.me/upoZlP How is the movement dealing with internal divisions? http://ampro.me/vGy3Tj Photo of the week: Photo Courtesy of Aaron Bady Protesters occupy the port in Oakland,...

How Far We Haven't Come, Episode #1707

Remember "The End of Men," the concept that the future belongs to women, because women are more prepared for today's economy? Well, it hasn't hit us yet. Even when women are better educated, men earn more, at least in most parts of the workforce. As Motoko Rich reports at The New York Times , Even with the same college and professional degrees, men earn more than women . And among so-called creative class workers like architects, teachers, artists, engineers, bankers and journalists, men earn much more than women , even though more women hold such jobs. It’s similar at the bottom end of the scale. According to a report issued Thursday by the United States Government Accountability Office, a higher proportion of women finish high school than men, a milestone that is a minimum requirement for any job mobility. Women — especially younger women — are also completing bachelor’s degrees at higher rates than men. Yet they represent a higher proportion of low-wage workers, defined in the...

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