TskRabbit.com markets itself as a Web service that matches clients seeking someone to do odd jobs with “college students, recent retirees, stay-at-home moms, [and] young professionals” looking for extra income. The company website calls it “a marketplace dedicated to empowering people to do what they love.” The name Task Rabbit doesn’t exactly suggest the dignity of work, and the love often takes humble forms. Customers hire Task Rabbits to clean garages, haul clothes to the laundry, paint apartments, assemble Ikea products, buy groceries, or do almost anything else that’s legal.
When the government shutdown ends and September’s jobs report is released (it was supposed to appear last Friday), careful readers will notice that women are holding a number of jobs either almost or just above their all-time high (which came in early 2008), while men are still millions short of their own pre-crash milestone. Hailing a successful she-covery, however, obscures the fact that women still face an elevated unemployment rate and that the barriers that kept that them from earning as much as men before the recession are still in place. Women are millions of jobs short of where they would be if the economy was at its full potential. Many of the new jobs they have are low-paying. The main causes of the pay gap, like gender segregation in the labor market, have not gone away. That women are gaining jobs is a good thing, but policymakers should not be convinced their work is over.
“Education was where my heart was,” says Tyrone Sinclair in Growing Fairness, a documentary showcasing the impact restorative-justice programs can have in our nation's schools. Sinclair says he was expelled from school at 16, became homeless, and then ended up in jail. Now, he organizes young people in Los Angeles. “I knew that wasn’t the place for me,” he says of prison. “I love to learn every day.”
When Congress shut down the government, one of the many programs caught up in the fracas was Temporary Aid for Needy Families (TANF), the program created by the 1996 welfare-reform law. Spending on the program is mandatory, and normally wouldn’t be a casualty of an appropriations fight like the one waged now. But the law officially expired three years ago. Instead of taking it up again, Congress has simply extended the last reauthorization with each new spending bill. No spending bill, no welfare program.
Last week, House Republicans passed a bill that would cut the food stamp program by about $40 million over the next ten years. They’re drawing on headline numbers—the program serves about 47 million people each year and has the biggest price tag of any program in the farm bill, $80 billion for the next five years —to drum up support. (The aid, technically known as the Supplemental Nutrition Assistance Program, or SNAP, is still known as food stamps to nearly everyone who gets it.) There’s very little chance that the bill will be enacted, given the more moderate makeup of the Senate, although it’s likely that some cuts are will end up on the president’s desk. (The Senate is cutting $4.4 billion from the program.) Still, food stamps are one of the most robust federal entitlements for the poor we have left, so it’s always going to be a target for cuts. It’s worth looking beyond those numbers in the news to see how the program is performing—and why it’s still essential.
A number of policymakers on both sides of the aisle cheered when, in April, the Arkansas Legislature passed a law both expanding Medicaid and transforming it into a service available in a marketplace of insurance options, a move known as the “private option.” Similar cheers erupted in June when Iowa Governor Terry Branstad approved a similar measure. The legislation marked a major accomplishment—not because the policies are necessarily improvements over traditional Medicaid but because they establish politically palatable paths for conservatives who want to increase access to health care. In Pennsylvania, GOP Governor Tom Corbett—who was against Medicaid expansion and this week announced he is is tepidly for it—has pointed to the these new plans as a model he might consider (among other, more controversial changes.) The private option may be a way to make comprehensive health-care coverage viable in other Republican states—but that depends largely on what happens in Arkansas and Iowa over the next several months.
Financial markets rallied when the Federal Reserve defied the rumor-mongers and resolved to continue its program of keeping interest rates very low until the unemployment rate improves. There was only one dissenting vote on the Fed’s policy-setting open market committee.
What’s going on here? Ever since the run-up to the collapse of 2008, what’s good for Wall Street hasn’t exactly been good for the rest of the economy. Are these ultra-low interest rates just pumping up more financial bubbles, as critics fear? Or does a still weak economy need this form of stimulus?
Think of it this way. There are risks to continuing a policy of very easy money, but premature tightening would be even worse.
It’s been a good week for the nation’s numerous poverty-wage workers. They’ve been way overdue for a good week.
On Tuesday, the Labor Department issued a much anticipated and delayed extension of the federal minimum wage and overtime regulations to the nation’s 2 million homecare workers. Last Thursday, the California legislature passed (and Governor Jerry Brown pledged to sign) a bill that raised the mega-state’s minimum wage from $8-an-hour to $10.
Though we’ve technically been recovering from the Great Recession since late 2009, the poverty rate in the United States has been stuck at about 15 percent since 2010. New data released yesterday from the Census Bureau showed that last year wasn’t much better. Poverty rates are stuck at the highest levels in a generation. Median incomes have fallen in the last ten years by more than 11 percent. Coupled with recent studies showing that most of the recovery’s gains have gone to the top 1 percent of income earners, the data on poverty confirms what many already knew: Inequality is growing, and the middle class is dying. That’s especially true when you examine the status of women and racial minorities.
The AFL-CIO held its national convention in California last week, and it turns out it couldn’t have picked a better time to be there. For it was last week that California really began to deliver on the promise of the labor-Latino alliance.
The AFL-CIO Convention concluded Wednesday, having made some major structural changes in the way labor will operate—though nowhere near so major as the changes that the Federation’s top leader was advocating in the weeks leading up to the convention.
AFL-CIO President Richard Trumka iterated and reiterated that labor would no longer limit its members to those who had successfully convinced their employers to recognize their union. With employers able to flout labor law with impunity, illegally firing workers who sought to organize and refusing to sign contracts with those whose unions had won recognition elections, the number of workers who actually emerge with a contract grows smaller with each passing year. So the Federation’s unions would welcome workers who had tried to organize their workplace but didn’t prevail. It would welcome workers such as cab drivers, who were misclassified as independent contractors and legally proscribed from forming a union, though they were actually employees. It would welcome domestic workers, who also had been excluded from National Labor Relations Act coverage, and day laborers.
It is said that the late economist Milton Friedman was once asked how much money it would take for him to change his position that humans are primarily motivated by greed, which was at the core of Friedman’s free-market fundamentalism. Friedman wisely dodged the question. He understood that if he said he could not be bought, it would undercut his economic theory. In order to avoid undercutting his theory, he would have had to admit that he, like everyone else, had his price.
The most impressive aspect of Bill de Blasio’s victory in yesterday’s Democratic primary for the post of New York’s mayor is its breadth. He ran first in all the boroughs, carried parts of the city ‘s most African American neighborhoods in Harlem and Brooklyn, despite the presence of a prominent African American candidate in the race (William Thompson, who may yet squeak into a run-off depending on the count of the outstanding ballots), and romped through such white liberal strongholds as Greenwich Village, the Upper West Side, and Park Slope.