Showing posts with label jobs. Show all posts
Showing posts with label jobs. Show all posts

Wednesday, February 8, 2017

Yes, Virginia, There Is Hope - The Invisible Majority

Of all the unfortunate results of the 2016 campaign and election, perhaps the worst is that 
the divisive identity politics pursued by both parties resulted in a loss of any feeling that we are one people, one country.  Instead, post-election there are two opposing camps at war; so many angry voices, so much vilification on both sides.  For many it destroyed any sense of hope for our country.

The Clinton campaign will refute this charge, but even with its “Stronger Together” slogan it played divisive politics by consistently demeaning those who were supporting Trump.  And Clinton supporters did not hold back in their vituperative remarks.  

The election thus seemed to show two large disparate vocal groups.  The majority (but not the winners) were vocal supporters for a fair America defined by a fistful of people’s rights, but who seemed to care little for the plight of the American factory worker and to have no use for a reading of the 2nd Amendment that included an individual right to bear arms.  

The very vocal minority (but the winners) were what has been described as anti-establishment, anti-elite.  They were for bringing back good middle-class worker jobs and against globalization.  They were against large government.  The noise of the campaign also made it seem that they were anti-Muslim, anti-Hispanic, anti-immigration, and anti-choice (against Roe v Wade).  Some would even claim anti-women.

I say “seem” because while this describes the direction of the two campaigns … the only real game in town voters had to choose from … it does not describe the voters.  Get away from the politics of the moment, and there is in fact a large American majority that crosses party lines and looks quite different from the rhetoric of the two campaigns.  

How is this invisible majority defined?  I think that first and foremost this invisible majority wants three things:

1.  They each want for themselves, as well as for all Americans, the opportunity to partake of the American dream; it should not just be for a select few.  They want America to start building things again and create solid middle-class working jobs.  They do not want to see any group given preference over another.  All should have equal opportunity and advancement should be based on merit and no other factor.  (See discussion below and my post, “Economic Justice for All.”)

2.  They want a secure America … secure from terrorist attacks and secure from everyday violence as they go about their lives.

3.  They want a government that listens to them, that clearly hears them.

As for the other what-I-would-call side issues … abortion, a Muslim registry, undocumented Latinos, gun control … the majority of Americans don’t support Trump’s position.  My proof?

Re choice/abortion, for the last two decades, according to the Pew Research Center, roughly 56% of American adults have said abortion should be legal in all or most cases; 41% have said it should be illegal.  

All Americans are against Muslim terrorists and support vetting new Muslim immigrants or travelers.  But according to a June 2016 Gallup report, only a minority, albeit a sizable one, is in favor either of banning all new Muslim immigrants (38%) or requiring Muslims U.S. citizens to carry a special ID (32%).  That is to me a disturbingly large number but still clearly far from the majority view.

As for undocumented Latinos, polls in recent years have consistently shown majority support for some path to citizenship.  As recently as September 2016, a CNN poll showed that 88% (including 80% of Trump supporters) would be in favor of a path to citizenship for all those who have a clean record, have worked and paid taxes, and speak English.

Then there is the divisive issue of gun control.  Gun owners fear, as a result of NRA fear mongering, that their guns will be taken away, but taking guns out of the hands of hunters and home owners has never even been an item of discussion among gun control advocates.  Virtually all Americans support access to appropriate guns for hunting and self-defense.  So even on the 2nd Amendment, there is broad agreement.  

That agreement extends to limitations on that right, for as with all constitutional rights, this one too is not absolute.  As shown in a 2016 Pew Research Center report, the majority of Americans are in favor of tighter control of who acquires guns and the types of guns. The vast majority favor expanded background checks for gun shows and private sales (88% D; 79% R), laws preventing the mentally ill from buying guns (79%), and a federal database to track guns sales (70% - 85% D; 55% R).  A majority also favors a ban on assault-style weapons (57% - 70% D; 48% R).  

So how come Trump won the election?  Why did all these people who don’t agree with him on so many issues vote for him?

First, as various articles have made clear, they voted for him because they believed he was the best chance for restoring good-paying middle class working jobs.  He clearly heard them and took up their cause.  Democrats have been promising this for years but have achieved little, as Trump kept on accusing Clinton during the campaign.  The jobs created during the Obama administration were not jobs that helped the former middle class worker and the post-recession upswing has not benefitted them.  

Second, the recent uptick of radical Muslim terrorist attacks in Europe and the U.S. was understandably frightening to many and they liked Trump’s strict talk.  Clinton said almost nothing useful about this subject.  Third, many people, even white educated women, voiced a real dislike for Hillary, which is why even a majority in that cohort voted for Trump.

And finally, and perhaps most decisively, Trump was defiantly anti-establishment, both regarding the Republican Party and government.  Clinton on the other hand is usually seen as the very embodiment of the establishment/government.

So while the election results give Trump a “mandate” to move forward with his economic plans, parts of his national security plan, and his general anti-government perspective, it should not be seen as a mandate regarding human/civil rights-related matters.  Nevertheless it surely will be taken to be a mandate regarding all areas covered by the campaign.  That’s what all winning elections claim.

More importantly, though, the election should not be taken by anyone as evidence that the majority of Americans have lost their common sense, their morality, and have become a bigoted, racist mass.  Of course there are bigots and racists out there; there always have been.  But even among Trump supporters, they form only a small percentage.  I honestly don’t even believe Trump is bigoted or racist; he certainly played those cards to win, but then so have others before him, just not as blatantly.

“But.” the reader may ask, “isn’t your statement about what the invisible majority wants off the mark?  What about the fact that so many Blacks are adamant about maintaining affirmative action and so many whites, especially middle class workers, are adamantly against it?”

No.  Remember that my statement starts with what everyone wants for themselves; that’s the starting point, the reference point.  Blacks feel as they do because despite our laws on equal opportunity, there has never been anything close to equal opportunity for Blacks in this country, especially the poor.  It starts with  poorly funded and neglected inner city schools and continues with the existence of discrimination in much of the job market.  

Whites on the other hand feel as they do because affirmative action has resulted in Blacks with less qualification still getting job preference 50 years after the civil rights laws were passed.  They may be considered part of the “privileged class” because they are white, but they do not feel privileged.  Many are suffering economically and angry that they see attention being given only to others’ rights, not theirs. 

If, as I say in that statement, everyone had true equal opportunity, I think all would feel that the only consideration in education, hiring, and advancement should be merit, not color.

Recognizing that Trump supporters are not the bogeyman, everyone on the progressive/center side of politics should be not only open to, but arguing for a new Democratic politics that reaches out to and forms a bond with the average Trump voter (many of whom were formerly mainstay Democrats).  This means foregoing identity politics and recognizing that we are all in the same boat and we all either swim or sink together.  And it means recognizing the things in Trump’s agenda which we can and should support because they are good for America. 

We need to say to Trump voters, “We support Trump’s efforts to create good-paying middle-class working jobs.  We support his efforts to restore and improve the country’s infrastructure.  

We feel for workers whose lives have been shattered and who have not been listened to.  We understand that we must make government more responsive to the people.  We know you are not racists or bigots.   You are upstanding citizens and we apologize that anyone has characterized you otherwise.

But there are dark forces out there which must be countered, and so we ask you to stand up as Trump supporters and make clear that:
- You support an earned path to citizenship for undocumented Latinos who have clean records, have worked and paid taxes, and speak English, 
- You oppose a Muslim registry of U.S. citizens, 
- You support reasonable efforts to stop the sale of guns to those who have evidenced that they cannot be trusted with the power of guns, and 
-  You unequivocally disapprove of any violent acts and vandalism taken by individuals/vigilante groups against Muslims, Latinos, African-Americans, LGBT people, Jews, or any other group.”  

I have not included abortion rights or other women’s rights issues in this outreach request because Trump voters’ support of these issues is not as great and I don’t think anything should distract from the large agreement on these other very important issues.

Whether white middle class worker, or black inner city dweller, or rural farmer, regardless what color, gender, faith, walk of life, ethnicity or sexual orientation, the government and the economy should be there for each and every one.  Everyone is entitled to equality and respect.  Everyone should have access to equal opportunity (whether people take advantage of it is their responsibility).  There is no inherent conflict between group interests here.  

That is the mandate of our Declaration of Independence.  And that is what we should be fighting for.

Sunday, December 7, 2014

How to End Wage Stagnation and Bring Back/Increase Jobs

Two of the most important issues facing our country is how to improve the wages of workers (as opposed to management), who make up the bulk of our workforce and whose spending accounts for a large share of our economy, and significantly increase the number of living-wage jobs either by bringing them back to this country or creating new ones.  These issues are important from a variety of perspectives: economic, of course, but also moral, societal and national security.

We have seen wage stagnation for the past few decades because workers no longer have any clout.  Whether a workplace is unionized or not, corporations haven’t given raises because they know that workers have no place else to go.  They can’t leave even if they are disgusted with their pay because alternative jobs just aren’t there.  They’ve gone overseas, making it an employer’s market.

So how do you change the situation?  There is going to be much talk in the coming months about revising the tax code, both for individuals and as it applies to corporations.  As a general matter, I would argue that any tax break for corporations should be tied to their better performance in a variety of areas affecting the public good, such as the environment and wage stagnation.

I would therefore suggest a new provision that would provide that if corporations give workers a percentage raise in a given year equal to the percentage rise in profit, then such corporations would get a tax break.  Corporations need to be incentivized.  Some might say they should be penalized if they don’t provide such a raise, but that would never fly in Congress.

The same is true for bringing jobs back to the US.  At some point, given increasing labor costs overseas and what will be increased transportation costs, it will make economic sense to bring jobs back here.  In the meantime, the government needs to provide a tax incentive for companies to expand domestic operations that provide living-wage jobs.

But in addition to the problem of jobs being sent overseas, one must face the following fact.   In an age of ever-increasing application of technology to the production process, the same number of jobs are not going to be created even if production is brought back because they just aren’t needed to produce the product.  

That means that a large share of the increase in good-paying jobs needed to keep the economy and the middle class robust will have to come in the form of public works projects.  Luckily, there is no end to the infrastructure projects, both improvements and new, that are desperately needed to support our country’s functioning at the highest level.  

Thus, the government will need to embark on an ambitious plan, similar in scope to the Interstate Highway System, to insure an ongoing strong economy, not just in terms of GDP increase but in the strength of the middle class.  The radical Right will no doubt respond by kicking and screaming about socialism and the deficit.  

But such a plan is even more justified now than the Interstate Highway was when Republican President Eisenhower proposed its enactment.  While Eisenhower’s rationale that the system was needed to improve the country’s defense was overstated (it was more honestly an economic measure), one can argue with a straight face that the proposed infrastructure plan is critical to the nation’s security, both in a physical functioning sense as well as in the strength of the economy.

This is a challenging time for the United States.  If we do not rise above petty bickering and join together to support a nation that is strong, not just in military might and the power of its multi-national corporations, but in the health and welfare of the average citizen, then we are doomed to become a shell of our former self, a Potemkin village.

Tuesday, November 18, 2014

Large Corporations Have Gutted Our Economy and Damaged Our Country

Republicans are always touting large corporations as the engine of our economy and argue that we have to have business-friendly policies in order to allow them to grow and create jobs.  And while Democrats might take a more nuanced stance publicly, their actions in Congress certainly show that they, while not in lock step with Republicans on this issue, are also certainly very friendly-disposed to large corporations.

One would be a fool not to agree that the business sector, including large corporations, is critical to the health of our economy.  However, it is one thing to say that we need to have policies that promote the growth of business and another to say that business interests trump all others, such as the public good.

But these statements about the importance of large corporations are just cover.  What it’s really all about is something very base at the core of American politics … the power and influence of money.  

It’s no secret that large corporations and industry groups have, through their largesse in donating money to political campaigns as well as their newer participation in PACS, bought unequaled clout in the halls of Congress.  While there are some clear exceptions, generally, regardless what type of legislation or regulation you look at, whether in the hands of Republicans or Democrats, at the end of the day, big business has either gotten their way or so weakened measures meant to control them and protect the public that the end result is in their favor.

Clearly the growth of big business has benefited those who sit at the top of corporate power and are players on Wall Street ... the new elite, the 1%.  But what about the rest of us?  Has the average American benefited from the growth of big business?  Has our country benefitted?  To answer that question, I will be looking at the impact on jobs, wages, small business, and transportation.

Jobs:  Big business is almost solely to blame  (I say “almost solely” because unions carry a good share of the blame as well), aided and abetted by government tax policies, for the loss of millions of jobs overseas since 1979.  For the transformation of the average American worker from solidly middle class with a good wage, to struggling to hang on at a low wage.  Looking just at manufacturing, employment collapsed from 19.5 million workers in June 1979 to 11.5 million in December 2009.

Corporations have always been greedy.  It’s their nature.  In the first part of the 20th century, workers were typically, not always, viewed almost as an enemy who challenged the corporation’s absolute power and wanted more of the corporate financial pie, rather than as valued workers who were responsible for the quality of the product.  The antagonism between the two forces was very evident.  The passage of Federal labor laws, while not changing this dynamic between management and labor,  helped level the playing field by giving workers real negotiating power.

But at some point, corporations had enough of labor negotiations.  Those in power wanted to retain more of the financial pie for themselves and shareholders.  This provided the motivation to find a way out.

And they found one readily available ... the South and it’s “Right to Work” laws.  Many manufacturing firms moved south to take advantage of these state laws which made it very difficult to unionize, and thus wages were significantly lower.  Job losses thus started occurring long before globalization.  

So, for example, I grew up in Reading, PA.  One of the largest employers was Berkshire Knitting, at the time the largest knitting mill in the world.   But within a few years, the vast mills were all empty.  After being sold to Vanity Fair, the jobs moved south and thousands of workers in Reading were out of work.  The same scenario played out in many cities throughout the northeast as light manufacturing relocated to the South.

But it was the advent of the global economy, “globalization,” that nailed the lid on the coffin of the American blue collar worker.  Again, solely because of corporate greed ... wanting to increase the bottom line regardless at whose expense ... (and often against the background of union intransigence) manufacturing as well as many other types of jobs moved en masse to lower cost locations, mainly Mexico and Asia.  The result was a literal hemorrhaging of jobs and the decimation of America’s middle class.

For example, U.S. Dept. of Commerce data show that “U.S. multinational corporations cut their work force in the U.S. by 2.9 million during the 2000s while increasing employment overseas by 2.4 million.”  In the two years following the 2008 Wall Street crisis, large American corporations cut U.S. payrolls by a net of 500,000 jobs.  At the same time, they hired 729,000 workers overseas. Corporations were hiring, just not in the U.S.

Corporate spokesmen and their political apologists say that this move off-shore was necessary in order to keep “American” business competitive.  Nonsense.  It was to keep corporate profits and thus CEO and shareholder pockets flush.  They always had the option to cut prices, but that would have meant lowering profits, which is anathema in corporate America.  Protecting American jobs was obviously nowhere on their list of goals.  (Unfortunately, unions were also often unrealistic and refused to countenance pay or benefit cuts in return for job security.)  

The poster child for this off-shore movement, General Electric’s then-CEO Jack Welsh, argued that public corporations owed their primary allegiance to stockholders, not employees.  Nor, although this was unspoken, to the country that spawned them.  Therefore, Welsh said, companies should seek to lower costs and maximize profits by moving operations wherever is cheapest.

And so they moved their operations and the jobs were lost.  These are no longer “American” companies in any sense other than headquarters. 

Yes, it’s true that many new jobs have been created in the United States, including since the recent recession.  But those jobs have overwhelmingly been lower-paying service industry jobs and often part-time jobs.  So people hired for these new jobs are working for less money and their standard of living is far below what it was previously.

Wages:  It’s no secret that American workers’ wages have stagnated over the past few decades.  The reason is also clear … the loss of middle class living-wage jobs overseas and the creation of low-paying jobs here.  And for those who still have their formerly good jobs, their pay has at best remained stagnant or they have had to take a significant cut in pay in order to keep the corporation from moving the jobs overseas.  

Again, all to protect the corporate bottom line.  And so we see that while CEOs today make astronomical sums, a 937% increase, inflation adjusted, in their total compensation package between 1978 and 2013, a typical workers’ income in inflation-adjusted dollars rose only 10% during that same period.  

If corporate profits have risen approximately 3% per year during this period (or 105% … yes, I was surprised, far less than the rise in CEO pay), why haven’t their workers benefited?  Because workers no longer have any clout.  With so many jobs lost overseas, companies, whether unionized or not, don’t have to worry that their employees will leave if they don’t get raises.   They know that workers have nowhere else to go.  And it is a rare corporation that will raise wages because it is fitting to do so.  Obviously, CEOs do have clout.

Small Business:  Politicians of both parties love to talk about the importance of small business to the American economy and cite government efforts to help small business.  Yet these same politicians curry the favor of the very forces … large corporations … that have brought doom to small (and often not so small) local businesses across the country.

We have become a nation that, certainly from a retailing perspective, lacks virtually any individual character from place to place.  Everywhere you go, you will find shopping malls with exactly the same stores.  You will find roads lined with exactly the same collection of fast-food outlets.  You will find a proliferation of Starbucks coffee shops.  And of course, you will find a Walmart, a Lowes or Home Depot, and a Staples or Office Depot.  As a consequence, local stores offering the same services have been put out of business whether because they couldn’t compete with volume pricing or corporate marketing or couldn’t offer the same selection.

These large corporations have thrived, not just because of the business acumen and ambition of their management … which of course is critically important … but because of government policies and actions, including the enabling if not encouraging of the suburbanization of America.

Let me again look at Reading, PA as an example.  In the 50s, downtown Reading was a thriving place with a vibrant local retail scene and cultural life.  But as highways were built that encouraged the creation of suburban development, a new type of business entered the mix … national and regional retail corporations … that found their home not downtown but in new suburban malls.  As this development increased, people living in the suburbs, which now overshadowed the city-dweller in both numbers and economic purchasing power, no longer needed to go downtown to shop, or eat, or go to the movies.  And so despite all sorts of measures by Reading officials, downtown Reading died and is nothing more than a memory, replaced now by an office culture.

Transportation:  Why is America a nation which, more than any other, is so dependent on the automobile?  Why do we have such a weak national or regional passenger railroad system?  Why, with a few large city exceptions, do we have such weak local public transportation networks?

The answer is unambiguous … for almost a century, the automobile industry was the most powerful industrial force in the country.  The saying, “What’s good for GM is good for the country,” was said in all seriousness.  And its influence was not surprisingly felt in Congress as well as in state and local government.

Prior to WWII,  although cars had become an essential element in American transportation, the railroad and mass transit were equally essential.  But after WWII, the federal government, under President Eisenhower, began a massive investment in creating the interstate highway system and expressways that bypass and go through major urban areas … all to make it easier for automobile and truck traffic to get from place to place.  

The official reasoning for this huge expenditure was improving our defense and response to nuclear attack.  But what really lay behind this decision was the power and influence of the automobile industry, together with a desire to increase economic growth through new highway and housing construction.

Just as the coming of the railroad brought about the creation of new towns and cities in its day, so too did the new highway systems (together with the new availability of low down-payment long-term mortgages) bring about the proliferation of suburban development, not just outside major cities but virtually all cities. Over the next few decades, what began as an experiment in changing the basic nature of American everyday life turned into the default mode, urged on by a confluence of powerful business interests and people’s desire to own a home and some property (what became “the American dream”) as well as the white flight from cities.

This government action amounted to a huge subsidy of the automobile industry which had no counterpart in the railroad industry and only a faint counterpart for local mass transit.  Since automobiles were deemed by government to be the transportation of choice, virtually no new mass transit or light rail systems were built in the United States for several decades after WWII. 

But the automobile industry wasn’t satisfied with the benefits flowing from this government action.  They also brought about the actual dismantling of existing light rail systems, most well-known is the Los Angeles system, and the obstruction of new mass transit lines.

The result of this influence (together with the other factors noted) was an increasingly car-dependent society, the deterioration of railroads, and the stagnation of mass transit systems.  Only in the last few decades, since the mid-70s, have new and expanded mass transit systems been built in various cities to accommodate an inescapable need.  

For example, in the San Francisco area, “after dismantling the existing electric streetcar and suburban train system in the 1950s in favor of highway travel using automobiles and buses, given the explosive growth of expressway construction,” the modern BART system began limited operation in 1972 and was expanded over the following decade.

Now, one could certainly argue that the American public revels in and treasures its ability to go where and when it wants to based on the automobile.  After decades of mass marketing campaigns, this has indeed become a major feature of our culture.  And so the average American would not say that they have been short-changed by this development; quite the contrary.

But looked at objectively, would the average American and the country as a whole have been better off with the post-WWII development of a more balanced transportation network … one that included a viable, modern national and regional railroad system, more comprehensive mass transit systems in major cities, and light rail systems in other cities, together with an improved network of roads.  The answer is certainly yes.   And it would have left us better prepared to adjust to an era where the use of fossil fuels must be reduced. 

By looking at these major areas … jobs, wages, small business, and transportation … we see that the power of big business has had a major negative impact on the average American worker as well as on various aspects of our society.  

Not to be forgotten is the broader economic impact of the decimation of the American middle class … the middle class was the backbone of our consumer-driven economy with consumer spending accounting for 70% of GDP (some argue 52%).  Only the emergence of the ubiquitous credit card has saved the economy, but at the cost of massive household debt … an average of $15,593, a total of $880 billion.   Not a good thing.  Many things that have happened because of the power of big business cannot be reversed; however, many can.

Large corporations have consistently shown themselves to be amoral.   As defined by the dictionary, that means that they have no moral standards, restraints, or principles; are unaware of or indifferent to questions of right or wrong.  They have only one guiding principle … improving their bottom line. 

For the good of our country, this cannot be allowed to continue free of restraint.  The public and government must break from this stranglehold of big business and fight for a more egalitarian society.   

In every society, there will always be those who are better off, even rich, and those who are not as well off.  But there is no excuse in a society as rich as ours for the egregious disparity in incomes, for the decimation of a strong middle class, for children to go to bed hungry, for people to be homeless, and for the pollution of the air we breathe and the water that sustains us, which pollution threatens not just our health but our very way of life and possibly the viability of planet Earth.