Tag Archives: economy

Bad gig.

There’s been a lot of crowing about how great the economy is now, with low unemployment, marginally rising wages, etc. (Sure, only 20,000 jobs were gained last month, but what the hell … rich people are making a lot of money, and that brings the average up.) Every administration takes any opportunity to exaggerate their accomplishments, but this claim of “full employment” is frankly laughable and doesn’t hold up to even the slightest scrutiny. What lurks behind the seemingly strong job numbers is the fact that many, many of these “jobs” are not really jobs at all. I’m referring to the vaunted “Gig Economy”, which currently employs about 36% of all American workers – a staggering statistic.

Unemployed

This isn’t a Trump-only thing – the gig phenomenon really got going under Obama, and they presented these “jobs” and part-time employment as evidence of their success, just as the current administration does (though with a bit less verve). Anyone who has worked as a contractor knows what total bullshit this is. As one who worked in the original “gig economy” – the music industry – I can tell you that, aside from the amount of effort involved, it’s the furthest thing from having a real job that you can get.  You have no security. You receive no benefits. If you get sick, it’s your hard luck. You are, in large measure, perpetually unemployed, always scraping for the next gig. Sure, some people thrive in this type of arrangement, but most struggle with very little reward.

This is great news for business owners who use contractors of various descriptions. Contractors cost a lot less than employees. There are few enforceable responsibilities employers have toward informal workers. And particularly with these app-driven companies like Uber, etc., when one gigger doesn’t work out, there are many more ready to take his or her place. That makes it hard to organize, hard to demand better wages or working conditions. In short, these are not jobs; they are contracts, and as such, ones in which all of the obligations point one way – toward the gig worker. This is why wages have remained pretty much flat for a very long stretch, though there has been some small upward movement this past quarter.

All of you gig workers out there: you have my sympathy. You deserve better than this type of “full employment”, as do we all.

luv u,

jp

Paycheck politics.

California and New York both passed minimum wage bills this past week; California’s a bit more generous, but both better than the status quo. Quite an accomplishment, given where this issue was just a few years ago: namely, the conservative business class demagoguing the very idea of raising working people’s wages, warning of job losses, companies shutting down, etc. The federal minimum wage, enacted in 2009, is $7.25 … an amount of money so puny that it barely makes it to your pocket before it evaporates. I would like to see some of these business owners, trade association representatives, and conservative political pundits who complain so heartily about raising it try to live on that. The simple fact is, it is not a livable wage, not by a long shot, and yet it is the amount earned by a substantial segment of the population caught up in this weak economic recovery.

They did it. Nice work.Frankly, it amazes me how cynical the resistance to a higher, inflation-indexed minimum wage truly is. Pegging the minimum at $7.25 was low enough in 2009; but the buying power of that wage has declined since then. Those who argue for leaving it where it is need to explain why they feel business should pay progressively less money for the same labor, year after year. (Am I the only one bothered by this?) Those who say that only teenagers looking for after-school work earn the minimum wage need to move into the current century. Those who feel raising the minimum wage gives earners more than they deserve, amounting to a kind of tax/entitlement, should be reminded that poor wage-earners rely more heavily on remaining forms of public assistance just to get by, such that we are all, in effect, subsidizing employers like Wal-Mart.

So things have moved on this issue a bit. Thanks are due to the many thousands of fast-food workers across the nation who stood up and demanded justice. One would hope that all of them get justice before too terribly long, but the fight continues. My own feeling is that we need a minimum wage pegged to inflation, and that the calculation for inflation should reflect more realistically the cost of living for most Americans and the types of things they spend the most money on. An indexed minimum wage will pull this issue out of the political sphere – it would also indicate a level of national comfort with the notion that people should be compensated for their hard work, and that that compensation should be resilient enough not to back-slide every time there’s an energy spike.

Nice work, everyone who got involved. Let’s move on to what’s next.

luv u,

jp

Crapucopea.

Not sure what to concentrate on this week for my rant, so I’ll break it up into bits.

Ukraine drama. I have heard endless reports on NPR and NBC about the Russian flag being raised above the Crimean capital and how much this is becoming like the bad old days of the Cold War. Much, too, has been made of Russian military exercises near the border of Ukraine, termed by the media as “provocative” – a word they no doubt borrowed from McCain or some other favored pol. Just rewind to their last reports about Korea and our planned military exercises there – did they use the same modifier? Didn’t think so. Not provocative in any wayThat potentially catastrophic confrontation-in-waiting apparently can withstand mock-invasions of North Korea and simulated bombing runs without being “provocative”. So, why are the Russian exercises any worse? If there’s a return to Cold War mentality, it’s on the part of our corporate media. (Most of our politicians have never left that particular ideological space.)

Arizona anti-gay bill. This notion of religious freedom, based on the dodgy concept of “who would Jesus refuse to serve,” is obviously based on a very skewed interpretation of Christian values – namely, tolerate no one different from you. That Jan Brewer vetoed it is no surprise. Why did it take her several days? Because the attention of the nation was on her for that stretch of time, and she was happy to bask in it – an art form the senior senator from her state has perfected over his decades in office.

Jobs and health. I’ve heard a number of reports about the CBO estimate of potential job losses related to the Affordable Care Act. These are mainly attributed to people who work specifically for a job related health care benefit choosing to opt out of the workforce. One economist / commentator I heard this morning suggested this might be a drag on the economy. But what, after all, is the economy? Is it metrics on productivity … or is it how well individuals are doing? When someone leaves a job they really don’t want, doesn’t that open a position for someone else? Should we really be chaining people to work and holding them hostage for the sake of health insurance coverage?

I think not.

luv u,

jp

State of the Hoover.

Listened to Obama’s fifth State of the Union address Tuesday night and was not surprised to hear many of the same small-bore themes we’ve heard from this president many times before. I am not One-way ticket to Hoovervillesomeone you could describe as disappointed in the president: he is very much the kind of leader I expected him to be following his 2008 election. Probably the most prescient look at the then-early Obama presidency in 2009 was published in Harper‘s under the title Barack Hoover Obama. The author Kevin Baker pointed out that, like Obama, Hoover was a very intelligent, well educated, worldly, and highly capable man – that was the reason he was elected president.

And yet, Hoover failed miserably. Baker sums it up in this passage:

Hoover’s every decision in fighting the Great Depression mirrored the sentiments of 1920s “business progressivism,” even as he understood intellectually that something more was required. Farsighted as he was compared with almost everyone else in public life, believing as much as he did in activist government, he still could not convince himself to take the next step and accept that the basic economic tenets he had believed in all his life were discredited; that something wholly new was required. Such a transformation would have required a mental suppleness that was simply not in the makeup of this fabulously successful scientist and self-made businessman. And it was this inability to radically alter his thinking that, ultimately, distinguished Hoover from Franklin Roosevelt.

This is, in a nutshell, reflective of the tragedy of Barack Obama, who was elevated to presidency at a moment in our history when enormous economic challenges demanded solutions of similar magnitude; when every month upwards of 750,000 Americans joined the ranks of the unemployed; when our hopelessly corrupted investment banking system was imploding and homeowners faced with a tsunami of foreclosures. Yes, he stanched the bleeding, but for a variety of reasons – not least of which being a lack of willingness to try something different – he did not provide an alternative vision of society that would have place us on the road to full employment, environmental sustainability, guaranteed housing, single-payer health care, and secure retirement.

What do we have instead? A vague proposal for something called MyRA and other similarly lame initiatives. We need to drive a more progressive agenda forward. If God had intended voting to be consequential, s/he would have given us decent candidates. It’s really just up to us.

luv u,

jp

Let’s make a deal.

There are few things in life more certain than eventual bipartisan agreement on screwing large swaths of our fellow citizens. While I’m glad there won’t be a repeat of the government shutdown / debt ceiling self-immolation ritual, this pattern of gradually ratcheting up the austerity gets very tiresome after two or three cycles. This time, the unemployed get thrown under the bus. What a great way to save money – take food out of the mouths of people who have been down on their luck for more than a year. Freaking 7% unemployment and they’re acting like the jobless are just plain lazy. That’s a truly criminal level of ignorance on the part of elected officials.

One thing, though. Let’s dispense with this notion that the Republicans are somehow against raising taxes. This has been thoroughly debunked since the House went red three years ago. Even before they took office, they killed the “Making Work Pay” tax credit, costing families like mine another $800 a year. Just last year they canceled the payroll tax holiday – another hike. Thanks, Mr. Boehner. This year, it’s a “fee” on air travel. Not something I take personally, but still … a tax by any other name.

And yet they still cling to this label, and the corporate media repeats the myth because it’s the simple thing to do, the path of least resistance. We are supposed to see the disagreements between the parties as a clash of equivalent versions of extremism, when the positions Democrats stake out in this decade are almost identical, save marriage equality, to those held by the Republicans fifteen to twenty years ago. They were conservative then. Democrats, by and large, are conservative now. Republicans are now driven by their hard right, which is more delusional than ever. This week, their leaders chose not to take their lead, but the path they are cutting is a highly conservative one, an extension of the austerity narrative, and one that will keep our economy in stasis for the foreseeable future.

Well, no shut down. Something to give one cheer for. Then it’s back to work.

luv u,

jp

One way out.

Let me preface this tirade with the admission that I am no fan of bipartisanship. I agree with Chris Hayes (@chrislhayes) on the notion that nothing of any great value has come out of it in recent decades; in fact, quite the opposite. The Iraq War, the USA Patriot Act, etc. If that’s how sausage is made, we should consider eating something other than sausage.

That said, we are faced with some fundamental problems with respect to our rapidly eroding ability to govern ourselves at the national level. A handful of tea party House members, maybe 40, from heavily gerrymandered districts have become the tail that wags the Congressional dog, in essence. They have every incentive Discharge petition?to continue and even enhance their extremism, as that is the only way they can please their hard-right constituencies back home. Around that core is another probably 40-50 House republicans terrified of being challenged by tea party types in the next round of primaries. Boehner needs these folks to maintain his speakership, so he goes along as do most of what remains of the GOP caucus. Hence, a list of demands is attached to a 60-day continuing resolution – not even a budget – with the same treatment threatened for the debt ceiling vote in a couple of weeks.

What’s to be done to keep us from toppling over a more dramatic precipice than the one we encountered in 2008? I think it’s time for a coalition government in the House. Get a majority of Republicans and Democrats to support a centrist or even a center-right candidate for Speaker, one who will agree to advance the following objectives: (1) keep the government open and funded at whatever level; (2) raise the debt ceiling well in advance of each deadline; (3) negotiate on a budget deal to cover more than six months to a year (i.e. plan ahead).

This would not be a progressive coalition by any means. But given the current make-up of the House, it’s hard to see how else we can keep the lights on and prevent the collapse of our financial system. We need to put the tea party minority in a box; to wall them off from the levers of power. If we don’t, the current crisis will continue and will be repeated again and again. And given the fact that the best we can hope for in the CR debate is the continuation of sequestration-level funding of federal programs, a centrist coalition hardly seems like a worse outcome.

Though I’m not happy about it, I think this is the way out of this mess. Let me know what you think.

luv u,

jp

Faith and credit.

Kind of tired, so these will be brief.

Cruz Control. Here we go again, lurching from crisis to crisis, the federal government sputtering along on fumes once more, its lifeblood of funding drying up. We haven’t had an actual federal budget plan approved in years, just a series of continuing resolutions and last-minute deals. And now, as the federal deficit has shrunk (thanks in part to the blind cuts imposed by sequestration) to nearly half its Mohammad Mossadeghsize one year ago, the party who rules Washington – the tea party-fueled G.O.P. – has decided to drive us over the cliff once again, only this time it’s about ideological, not budgetary, complaints. We must kill Obamacare (and fulfill a long list of other reactionary desires), or the economy gets it.

Ted Cruz is working the reps in the House, but really … the reps should know better. How can you call yourself a conservative and support playing chicken with the debt ceiling?

Good call. Iranian president Rouhani called our own president today, and they had a 15 minute conversation – the first between leaders of these respective countries in more than thirty years. You may not like to hear this, but the reason for this is more about us than about them. We overthrew Mossadegh in 1953, imposed the Shah Reeza Palavi for 25 years, supported Saddam Hussein’s savage attack on them, imposed sanctions that have starved them, sickened them, and prevented them from living a decent life for decades. Small wonder they’re unhappy with us.

Our government’s criticism that they support “terrorism” is ironic at best, cynical at worst. What worse terrorism is there than that which we have practice on them since 1979?

luv u,

jp

Chain gang.

The thing that keeps popping into my mind as more details of the president’s budget emerge is the notion of how small-bore our political leaders are about everything. We face enormous problems – climate changes, massive unemployment, deindustrialization, economic inequality, rampant militarism, an out-of-control justice and penal system, rampant gun violence, and so on – and yet our politicians behave like the wizened, stingy little men they are and fail again and again to recognize the scale of what’s confronting us. Obama is no exception, his desire to reach a “Grand Bargain” with the Republicans so overriding that he appears to have forgotten who stood out in the sun, rain, whatever, for hours and voted for him last November.

Think bigger.
Think bigger.

Honestly, it’s hard to imagine that a Democratic president, serving in the wake of two decades of steady decline for the poor and working class, would opt for a plan that would cut the meager supplemental retirement checks of elderly people in order to preserve preferential treatment for the nation’s wealthy, who have been doing just fine since the Reagan years, thank you very much. He talks about balanced approaches and shared sacrifice, but what he seems to forget is that the vast majority of us have already carried more than our share of sacrifice. Many have paid with their jobs/careers, others with their homes, their retirement funds. And they are supposed to give up more on top of that? Ludicrous.

This is not a new formula, nor is it a surprise. Obama has been signalling this decision for a few years. He is just following the example of previous Democratic party presidents, particularly that of Bill Clinton, who was a master triangulator and who ruled in a way that assumed the poor, the workers, people on the left, and people of color had no where else to go politically. The only remedy for this cynicism is push back. Politicians respond to public pressure – it there is any “law of gravity” in politics, that is it. Look at how quickly the Occupy Wall Street movement changed the conversation over a year ago. It has since drifted back to austerity and small-mindedness, but that can be overcome. Look at the gun debate, at immigration, at gay rights. There is movement because politicians are looking at the masses of people moving these issues forward.

So… if anyone is going to save the poor, the disabled, the elderly, from a greater level of penury (imposed to service the interests of the rich), it will be us. Make a ruckus…. or they’ll fuck us. That is all.

luv u,

jp

 

The way we are.

The sequester deadline is getting closer, but – unsurprisingly – we are no closer to cutting a deal to avoid draconian cuts to a full range of programs. In all honesty, if it weren’t for the domestic and veteran-support programs that would fall under that senseless cleaver, it might not be such a bad thing in that the Defense budget would finally see some reductions. Of course, as every close observer of national politics knows all too well, cuts to the DOD turn normally conservative – even Randian – Republicans into hysterical Keynesians, warning of the dire employment consequences if the Pentagon budget were slashed. There’s some truth to that … which is why it sounds so strange coming out of Republicans’ mouths. But anyway…

Hey, nitz!
Shout out to "the man".

It’s worth repeating Robert Pollin’s observation here that Pentagon spending is not the best way to create jobs. $1 million spent on defense creates roughly a dozen jobs. Spend that same money on education and you’re up into the mid twenties. So if the Republicans are simply looking for ways to generate employment through public spending, there are plenty of ways to accomplish that. Personally, I think their only concern – aside from winning elections – is for the welfare of the well-off. It’s really all they ever talk about, if you listen carefully to what they say.

It shows in what they do, too. Since 2010, they have raised my income taxes in a major way twice – twice! In 2011 they scotched the “Making Work Pay” tax credit, which was worth about $800 to couples. This past year, they ended the payroll tax holiday; refused to budge on that, too, in favor of extended breaks for people making $250,000 to $400,000 a year. W.T.F., Boehner, McConnell – what happened to your Norquistian anti-tax pledges? Oh, that’s right – I’m not rich, so it doesn’t apply to me.

Hey, nitz! Boehner! You want to fuel job growth through increased consumption? Here’s an easy way to do it. Raise taxes on the freaking rich, cut them on the poor and working class, and raise the minimum wage to at least $9 with indexing, as Obama proposed. When working people get money, it goes right back into the economy. We spend it like water … not because we’re profligate, but because we have to. Give more money to the rich, they’ll just sit on it, like they’re doing now.

Little piece of advice for you, Jack. No charge. Happy freaking Valentine’s day.

luv u,

jp

Eyes wide open.

I suppose if I’m going to rant about anything this week, it’s going to be the election. Election years are always nerve-wracking, like a slow-motion train wreck. They make me feel, more than ever, that we as a nation are sleep-walking into history. The notion that we can be on the knife-edge of electing someone like Mitt Romney president – that working people of any persuasion (to say nothing of retirees) would ever consider voting for that overpaid fichus tree in a suit – is simply flabbergasting.

To be certain, Obama has not acted boldly enough on the economy, on basic issues of human rights, and so on. That’s a given. But let us not forget how we got into this hole in the first place. We had eight years of Dubya Bush, during which time he and his fellow cartoon pirates started two wars, established torture as an open instrument of foreign policy, blew an enormous hole in the federal budget with two rounds of wartime tax cuts, let New Orleans be destroyed, crashed the economy into what has turned out to be a milder version of the Great Depression, and quite a bit more. They did so with the full cooperation of a Republican led congress for six full years, and effective Republican control for the remaining two. (The Dems’ razor-thin majority 2007-2009 didn’t buy them much.)

I find it hard to blame anyone for falling into cynicism with regard to the two-party duopoly we call American democracy. In too many ways, there isn’t a dime’s worth of difference between the two major parties. But there are enough differences to make it worth the time and effort (and in some states, it will take both time and effort – I’m looking at you, Ohio!) to cast a decisive vote against Romney and the G.O.P. congress. Not that this is all one has to do to move the country in the right direction – far from it. But the consequences of doing nothing on election day are … well, we’ve seen them. (See paragraph #2.) The Republicans get worse every cycle they hold power. If they take it again this time, they will gut the remaining social safety net (frayed as it is), throw millions out of work through forced austerity, drive us into recession, start another war, build a transcontinental pipeline to carry toxic sludge to the gulf where it can be turned into diesel fuel and sold to China, and… well, you’ve heard the rest.

I’m not asking you to ignore Obama’s failings. Resist, of course. But don’t think replacing him with a clueless millionaire won’t drive us into a deeper hole. We can’t afford to take that trip again. Vote with your eyes open … but for @$%# sake, vote.

luv u,

jp