Fast-food workers in seven cities are set to walk off their jobs today in one-day actions, escalating what is quickly becoming a nationwide effort to win pay hikes in one of America’s premier poverty-wage industries. Backed by the Service Employees International Union (SEIU), the campaign is succeeding in publicizing the plight of low-wage workers in a growing number of states and cities.
Want to know the problem with enterprise zones? Then check out Sunday’s Riverside Press Enterprise, one of the best midsized newspapers in California.
A story in it covers Governor Jerry Brown’s successful campaign to have the legislature put enterprise zones out of their misery. (Brown recently signed the bill abolishing the zones.) Conceived by the late Jack Kemp and other unusually well-meaning right-wingers to bring jobs to the inner-city, enterprise zones have provided subsidies to businesses for creating jobs they might have created in any case. Disproportionately, the jobs created were low-paying.
“Average is over,” New York Times columnist Tom Friedman likes to proclaim, and in at least one particular, he’s right. Friedman no longer writes average columns. With each passing week, his efforts become steadily more moronic.
His latest, in Sunday’s paper, is entitled “Welcome to the Sharing Economy,” and in it, Friedman mistakes economic marginality and desperation for innovation and opportunity. The subject of this particular essay is Airbnb, a website where travelers go to rent bedrooms in other people’s homes.
Detroit has filed for bankruptcy. Most of the spot-news coverage has focused on the immediate fiscal crisis of the city, but the immediate fiscal crisis really isn’t what got the city into such deep trouble. Certainly, Detroit’s contracts with its employees and its debts to its retirees don’t really explain anything about how and why this once-great city has come to such grief. Those contracts and retirement benefits are par for the course for major American cities—certainly, no more generous than those in cities of comparable size.
Any remotely accurate autopsy of the city will find that the cancer that killed Detroit was the decline of the American auto industry.
The United States Senate and the nation it so imperfectly represents both had a good day today, thanks to something that’s been in short order around here lately: A Democrat who knows how to play hardball.
The first test vote that Senate Majority Leader Harry Reid is scheduled to bring before the Senate this morning is that of Richard Cordray, President Obama’s pick to head the Consumer Financial Protection Bureau. Reid decided to lead off with Cordray for a very good reason: The Republicans’ insistence on filibustering him makes clear their real intent is to throttle the Bureau. They are using a filibuster of an appointment to effectively repeal legislation they don’t otherwise have the votes to repeal. Nothing could better make Reid’s case that the filibuster has been twisted into a vehicle for minority rule.
Gallup and Pew concur: Just over one-half of Americans approve of labor unions.
In late June, the Pew Research Center released the results of its biennial poll on unions and corporations, and reported that 51 percent of Americans had a favorable view of unions—up from just 41 percent in 2011, the last time Pew popped the question. Pew’s new number is almost identical to Gallup’s, which found that 52 percent of Americans approved of unions when it last asked that question in August of 2012. Gallup polls on union approval every year and has reported a 52 percent approval rating each of the past three years. Before then, union approval had hit an all-time low for Gallup surveys, with just 48 percent in 2009.
The Obama Administration’s decision to delay for a year the penalty that employers (in firms of 50 or more employees) must pay if they don’t provide health insurance to their workers shines a light on a problem that may be even more profound than getting health coverage for every American: that is, the decline of the American job.
The employer mandate was designed for an economy in which American workers were employed in what had been normal jobs. In firms of 50 or more, all workers who put in at least 30 hours a week were either to receive coverage from the firm or else the firm would have to pay the government a $2,000 yearly penalty.
UNITE HERE, the union of U.S. and Canadian hotel workers, and the Hyatt chain announced a wide-reaching agreement on Monday afternoon that will give Hyatt employees in currently non-union hotels across the nation the right to choose a union without having to face management opposition. In return, UNITE HERE announced it is lifting its global boycott of Hyatt hotels.
Another red-letter day in the annals of Republican fiscal prudence. New Jersey Governor Chris Christie announced this afternoon that he has scheduled the special election to pick a succeessor for the late Senator Frank Lautenberg for October 16—despite the fact that the regular election for New Jersey state government, very much including the governor’s job, for which Christie is seeking re-election, will be held on November 5th.
Over the past month, an oceanic divide has opened between European and American retailers on the question of how to respond to the manmade epidemic of deadly disasters in the garment industry of Bangladesh, the world’s second largest clothing exporter. In the aftermath of the Rana Plaza fire on April 24, which killed at least 1,127 workers, a group of roughly 40 European retailers—including H&M, Carrefour, Benneton, Tesco, and Marks & Spencer—signed on to a plan binding them to fund both a regimen of independent factory inspections and the improvements required to make those factories safe.
Major Ruth became a civic leader because he made a promise to his neighbor, Brian Wingate. Both had moved to the Beaver Hills section of New Haven, Connecticut, in 2003. A neighborhood of aging single--family homes that had seen better days, Beaver Hills had been targeted by the city for a housing--rehabilitation program, and, with the zeal of new arrivals, Ruth, a manager at the local utility company, and Wingate, a custodian and union steward at nearby Yale University, sought to involve themselves in neighborhood--improvement ventures. That proved harder than they had anticipated. Although New Haven aldermanic districts are tiny, encompassing no more than 4,300 residents, Ruth and Wingate couldn’t find anyone who could identify, much less locate, their alderman. “We joked that one of us would run for alderman and the other would have to run his campaign,” Ruth says. In 2010, Wingate told Ruth he was running and a deal was a deal.
The main item of business before JP Morgan Chase’s annual shareholder meeting, which will convene today in Tampa, is whether JPM CEO Jamie Dimon will be stripped of his additional post as chairman of JPM’s board of directors. A range of institutional investors concerned about the over-concentration of power atop the nation’s most powerful institutions, and upset by the $6 billion loss JPM took last year at its London trading desk, won roughly 40 percent shareholder support last year to separate the two positions. This year, they hope to do better, even though the bank’s public-relations offensive on Dimon’s behalf has made the prospect of winning a majority more difficult.
Tomorrow, Angelenos go to the polls to select a new mayor. Well, some Angelenos – actually, not a hell of a lot. Indeed, turnout is projected to be so low that the winner may actually get fewer votes than Fletcher Bowron did in winning the election of 1938, when Los Angeles was less than half as populous as it is today.
If you’re looking for the personification of the Washington economic establishment, you could do a lot worse than Fred Bergsten. National Security Council economics deputy under Henry Kissinger (at age 27), then head of the international desk and the monetary portfolio in Jimmy Carter’s Treasury Department, and from 1981 through last year the founding director of the Peterson Institute for International Economics, Bergsten has been a forceful advocate for what used to be called the Washington Consensus: an unflagging belief in the virtues of free trade and fiscal discipline.
Harold Meyerson is the editor-at-large at The American Prospect and a columnist for The Washington Post. His articles on politics, labor, the economy, foreign policy, and American culture have also appeared in The New Yorker, The Atlantic, The New Republic, The Nation, The New Statesman; the op-ed, commentary, and book review sections of The New York Times, The Washington Post, andthe Los Angeles Times, and in numerous other publications.