Last week, a decision by the D.C. Circuit Court of Appeals provided an excellent example of how both presidential action and inaction can matter. Because of the former, the National Labor Relations Board had issued a rule intending to alleviate the power disparities between workers and employers. But in part because of action by Republican presidents and inaction by Democratic presidents, the rule is no longer in effect. And while the outcome of the case is hardly surprising, the sheer radicalism of the court's holding is yet another sign of how in the tank much of the powerful D.C. Circuit is for powerful business interests.
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.
When news broke Tuesday that the Louisiana Supreme Court struck down Louisiana’s voucher system, which uses public dollars to pay for low-income students to go to private schools, the fight over vouchers made its way back into the headlines. The Louisiana program, pushed hard and publicly by Republican Governor Bobby Jindal, offers any low-income child in the state, regardless of what public school they would attend, tuition assistance at private schools. It’s something liberals fear will become commonplace in other states in the future if conservative lawmakers get their way on education policy.
Rebecca Sandoval hasn't had a raise for six years.
She and other home-care workers who work for the state of Oregon and are represented by Local 503 of the Service Employees International Union (SEIU) make $10.20 an hour to assist people with disabilities and senior citizens, like the 99-year-old woman Sandoval cares for. The state froze wages at 2007 levels to help offset a yawning $855 million budget shortfall caused by the financial crisis. Almost every year since then, Sandoval says, it has further cut back hours, leaving workers with the choice to leave some of their clients' needs unmet or to work for free. “You can't rush a 99-year-old woman with any aspect of her daily living,” she says.
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.
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.
On any given day, go to the Shenzhen Wal-Mart in the city's Yuanling neighborhood, and you may find a stocky man in his early fifties in front of its doors, draped in a banner that reads, in Chinese characters, “Support the just demands of workers.”
“For too long we have allowed some corporations to hold a gun to our heads and demand that we choose jobs or choose the earth.” That’s what Terry O’Sullivan, the general president of the Laborers International Union of North America, told green groups and fellow unions at a green-jobs conference in February 2009, just a few months after the union—one of the largest in the country—joined the Blue-Green Alliance, a group organized to advocate for a “clean economy.”
But by January 2012, O’Sullivan had made a choice. The climate bill had failed, the money from the recovery act had run out, political tides had turned against government spending, and the union was no longer so keen to partner with the environmental movement. “We’re repulsed by some of our supposed brothers and sisters lining up with job killers like the Sierra Club and the Natural Resources Defense Council to destroy the lives of working men and women,” O’Sullivan said. This heady “job killer” rhetoric was aimed not just at green groups but at unions like SEIU and the Communications Workers of America. They hadn’t had to do much earn this scorn. They had just opened their mouth about the Keystone XL pipeline.
Their agreement is very preliminary and hasn’t yet even been blessed by the so-called Gang of Eight Senators working on immigration reform, but the mere fact that AFL-CIO President Richard Trumka and Chamber of Commerce President Thomas J. Donohue agreed on anything is remarkable.
It’s too late for Tonisha Howard, the mother of three in Milwaukee who was fired for leaving work to be with her hospitalized two-year-old. And for Felix Trinidad, who was so afraid of losing his job at Golden Farm fruit store in Brooklyn that he didn’t take time off to go to the doctor—even after he vomited blood. Trinidad, a father of two who had stomach cancer, continued to work until just days before his death from stomach cancer at age 34. But for workers in Portland and perhaps Philadelphia, paid sick days just got much closer to becoming reality.
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.