Poverty & Wealth

Made in America — Again

Leaders discuss returning manufacturing to the U.S. in a Prospect roundtable.

AP Photo/Madalyn Ruggiero
Andy Grove was, successively, the director of engineering, president, CEO, and Chairman of Intel Corporation. In an article last year, Grove proposed levying tariffs on goods produced offshore and dedicating the funds to help companies scale up production in the United States. Andy Grove was, successively, the director of engineering, president, CEO, and Chairman of Intel Corporation. There are three distinct causes for the jobs we’ve lost. First, the declining demand for products. So everybody focused on the stimulus—they assumed that the demand cycle and the employment cycle are related like they used to be. But they’re not. I don’t understand pure Keynesianism at a time of global flows like we have now. If we turn on a spigot to increase demand for consumer products, we need to have some factor that measures the portion that goes to a domestically made product. That portion in the last ten years must have changed in a very major way. You want a measure? How about asking for the...

GOP vs. Job Creators

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama administration and congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll—that is, it would chiefly benefit small and middle-sized businesses. Yet every Senate Republican but one (Maine’s Susan Collins) voted against this proposal when it came to a vote on Thursday, complaining that it taxed job creators by proposing to off set the tax cut by raising taxes on individuals and couples for that portion of their annual income in excess of $1 million. Never mind that that the Treasury Department has concluded that only 1 percent of those taxpayers are small businesses...

Police Raze Occupy DC Shelter

Will resistance give the protest movement in the nation's capital the shot in the arm it needs?

After an extended showdown that began around noon Sunday, police in Washington, D.C., succeeded in destroying a wooden structure Occupy DC protesters had erected in McPherson Square to provide shelter throughout the winter. Police arrested 31 people in total—15 for crossing a police line and 16 for disobeying a lawful order, according to police spokesman Sergeant David Schlosser. The last protester, who climbed onto the top of the structure and held up an American flag, was forcibly removed by police in a cherry picker around 9 P.M. He faces additional charges for indecent exposure and public urination after urinating off the roof. "Who do you work for? Who do you serve?" chanted the crowd as officers placed the lone holdout in a harness. He was hailed on twitter as a hero: "When David relieved himself off the roof, he was simply showing how trickle down economics works," wrote Dave Storup, an Occupy DC sympathizer. Schlosser said the D.C. building inspector's office had determined...

Schooling Capitalism

T his week, both coasts saw student marches on Monday and big-city police raids on Tuesday. As the chancellors of the University of California met by teleconference, students throughout the U.C. system held demonstrations and teach-ins opposing tuition hikes and police violence. At U.C. Davis, they called a student strike. Meanwhile, their counterparts at the City University of New York marched on their own board of trustees as it voted on five years of tuition hikes. Tuesday, Philadelphia police cleared occupiers out of city hall’s Dilworth plaza to make way for a $50 million renovation project. The raid followed multiple ostensible deadlines, and weeks of controversy within the camp and between occupiers and the city over whether they would relocate to a new space (many have). Los Angeles Mayor Antonio Villaraigosa, who earlier in his career was attacked for ACLU ties, drew criticism for restricting most journalists to a “First Amendment zone” as police forced out Occupy LA Tuesday...

Game Plan

With a labor agreement tentatively in place, the NBA's next challenge will be bringing the fans back.

AP Photo/Mike Segar
With its labor dispute nearly behind it, the NBA is facing another mammoth problem: winning fans back. In a time when the unemployment rate remains stubbornly high and the economy won’t grow, many basketball fans viewed the NBA strike as an ugly and petty fight of rich players against wealthy owners over a few more million. “It’s the most ridiculous thing I saw in my life,” one longtime fan ranted to the New York Post. “They make so much money. It’s childish.” Childish or not, as the National Basketball Association welcomes back its players after reaching a tentative deal last Saturday, it has to figure out a way to bring back fans who were stung not only by the lockout, but by years of expensive ticket prices, the LeBron James-decision fiasco, and players throwing tantrums. The five-month labor crisis and resulting lockout, which came after the players’ association and NBA owners’ inability to reach an agreement over a variety of issues from players’ salaries to revenue sharing after...

GOP vs. Job Creators

Republican opposition to extending the payroll tax misses the point.

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama Administration and Congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll – that is, it would chiefly benefit small and middle-sized businesses. Yet every Senate Republican but one (Maine’s Susan Collins) voted against this proposal when it came to a vote on Thursday, complaining that it taxed job-creators by proposing to offset the tax cut by raising taxes on individuals and couples for that portion of their annual income in excess of $1 million. Never mind that that the Treasury Department has concluded that only 1 percent of those taxpayers are small...

NBA, Final

A league labor agreement includes a surprising caveat to protect owners from ... themselves.

AP Photo/Hans Deryk
After spending almost half the year in a pitched labor dispute that shutdown league operations, the NBA owners and players union agreed to a new collective bargaining agreement last weekend. The reformed players union—which had disbanded last month to file an antitrust lawsuit against the owners as a negotiating tactic—and league representatives are set to meet again Friday afternoon to come to official terms on the ten-year contract. As long as the final details (such as drug testing and player age restrictions) are worked out over the next week, a shortened 66-game season will kickoff on Christmas Day. The general consensus on the deal is that the owners came out ahead at the players' expense. The old contract had stipulated that 57 percent of basketball-related income go toward players' salaries, while the new deal reduces that number to 51 percent next season, and possibly even lower in years to come. But the fight wasn't just about the overall divide of money, and for the other...

Back from China?

A s in hundreds of cities and towns in the once-industrial Midwest, a ghost not only haunts but dominates North Canton, Ohio. It’s a ghost of brick and mortar, glass and steel, of a smokestack that rises directly across the street from the City Hall and the Chamber of Commerce. The ghost’s name is still painted on the smokestack, four years after the factory beneath it clanged to a halt. “Hoover,” it says—as in Hoover Vacuum Cleaner, a company founded in North Canton in 1908 that was the town’s largest employer, and leading citizen, for one year short of a century. At its height, Hoover’s North Canton empire spread over 17 factories and buildings, one of them a private hospital for local Hoover workers (as many as 7,000 during the company’s flush decades) who took sick or were injured on the job. “This was Hooverville—our own version, not Herbert-Hooverville—a company town,” says Doug Lane, a former city councilor who now heads the Chamber of Commerce. “If the city needed a fire truck...

Snobs Like Us

When did cultural disdain become the province of the left?

Y ou can always count on Hollywood panjandrum Harvey Weinstein to be bombastic about his own restraint. “In 20 years of coming to the Toronto Film Festival, I’ve never released a statement for a film,” read the statement e-mailed to journalists in mid-September. “But I would like to take this moment to formally invite Republican Congresswoman from Minnesota and Republican presidential candidate, Michele Bachmann, to co-host with me the big premiere of Butter in Iowa in a few months from now. I know Michele will already be in Iowa for the caucus, so we can save some money on airfare and travel. I would of course be more than happy to fly in the other leading members of the Tea Party movement to make an entire day of it.” The Weinstein wit has clearly stayed hidden under a bushel too long. Note the effortless contradiction between the joke about saving money on airfare and the munificent offer to fly in—well, how many dozens of Tea Partiers might qualify for Harvey’s largesse? There...

A More Perfect Union

E mily Dopper and her boyfriend, Willem van Leeuwen, tourists from the Netherlands, were on their way to lunch at the Boathouse restaurant in New York’s Central Park when they encountered the picket line. Clay Skaggs, a striking waiter, intercepted them. “We’re asking you not to eat here,” he said in a tone of polite explanation. “They practice sexual harassment, and they stole $3 million in wages over two years. They also got a C-rating on their health inspection.” Dopper looked dejected and unconvinced. “We came here to Central Park all the way from Europe,” she said. “There are lots of other great places nearby,” Skaggs continued. He handed them a foldout flyer. One side featured a detailed map of the park and its myriad paths and attractions, displaying locations and write-ups of other restaurants and a big red circle with a slash around the Boathouse. On the other side was an explanation of the issues in the strike, with summaries in 19 languages. Adopting his best waiter’s...

Football is Hell

As I think you know by now , I don't pay much attention to football. But between the concussion suicides and the Sandusky allegations, I've gotten a bit interested in the sociology of the sport. And so this Sunday's New York Times interview with former pro football player Kris Jenkins interested me. Jenkins makes it clear that he signed fully signed up for the brutality and pain: You ever been in a car crash? Done bumper cars? You know when that hit catches you off guard and jolts you, and you're like, what the hell? Football is like that. But 10 times worse. It's hell.... [O]ver the years, I wore the left side of my body down. I was past hurt. I was at the point of numb. Like my body was shutting down nervous systems, so I didn’t have to deal with pain. The numbness started at the very beginning. I couldn’t feel part of both arms. I couldn’t feel part of both legs. It was worse on the left. I’m just starting to get feeling back in my left side. Look, football is no joke.... We...

Thanks, But No Thanksgiving

Employees and consumers fight back against "Black Friday," which increasingly starts on the holiday itself.

It may feel as traditional as leftover turkey, but it’s only been since the 1960s that retailers have named the day after Thanksgiving, when bargain shoppers hunt for discount goods like big game, "Black Friday." But this year, black could just refer to the pall cast on store employees’ holidays, which have been increasingly cut short in an effort to start the sales earlier and earlier. In Nebraska, rumors of a Thanksgiving midnight opening at the Omaha North Target store where Anthony Hardwick has worked for the past three years first circulated on Facebook. By the time store managers confirmed that employees were scheduled to start their shifts at 11 p.m. Thanksgiving Day, the part-time parking attendant had taken matters into his own hands. “There was a sense of inevitability about the whole thing,” Hardwick said. “Initially, I thought I’d like to start a petition to give to corporate to show how many team members and customers are against this.” Hardwick argued that all hourly and...

Ivy League Brain Drain

At Yale, OWS-inspired protesters target recruiters for the country's major finance firms.

Joseph Breen Student protesters and attendees—both from Yale—at a Morgan Stanley recruiting event. S he was tall, blond, standing in the lobby of a swanky hotel in downtown New Haven. She came for the recruitment seminar by Morgan Stanley, the banking and investment firm. Like the other Yale University students who attended, she came to learn more about starting a lucrative career on Wall Street. And like most of the people I interviewed that evening, she seemed afraid. "Thanks for talking with me, Ally," I said. "Can I have your last name?” "I don't know if I can say," she said. "I'll be right back." She never returned. Perhaps it was all the noise outside. To get to the hotel, Ally and dozens of other would-be recruits had to get by a phalanx of demonstrators, also from Yale, who were protesting the Morgan Stanley event. They were raising awareness of what they call the "brain drain" of American society. While Yale graduates who become entrepreneurs, artists, teachers, and...

Lies, Damn Lies, and Adoption

Over the past two months, I’ve posted a few items about fraud and corruption in international adoption, a subject I’ve reported on extensively . Of the many articles I wrote on the topic, one story in particular broke my heart—and illuminated how such frauds occur. I’ve just heard, again, from one of the principals in the situation, and I’d like to post his letter. Before I do so, here’s a summary of—and links to—the articles that offer background. In brief: In 1998, Americans adopted 29 children from a town in Sierra Leone whose birth families now say they were stolen. At the time, the Americans believed they were saving desperate orphans from a brutal civil war. But the birth families have now testified that they were offered a free education for their children and were never told that those children would leave the country—much less that the children would be permanently taken away by foreigners. In reporting that story, I ended up talking to people at every stage of the adoption...

Now What?

AP Photo/Seth Wenig
E arly Tuesday morning, surprised by a violent police raid on Zuccotti Park, dozens of Occupy Wall Street activists stayed and accepted arrest, a few chained themselves to a tree (which was cut down by police), and others fled, though not all fast enough to escape tear gas. Later that morning, protesters returned expecting the city would yield to a temporary restraining order allowing their camp, but police ignored the order. Tuesday evening, defeated in court, occupiers returned to Liberty Plaza, filing in one or two at a time past watchful police. There were new signs (“Curfew 10 PM”), new rules (no lying down), and a newly urgent question: What’s next? For the two months since its birth, Occupy Wall Street -- and the international movement it’s inspired -- has been defined and driven forward through confrontations. Just as earlier threats to its existence helped make “Liberty Plaza” a teeming village and a household name, the latest attack could galvanize and inspire –- and keep...

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