August 5, 2013 archive

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

August 5 is the 217th day of the year (218th in leap years) in the Gregorian calendar. There are 148 days remaining until the end of the year.

On this day in 1957, American Bandstand goes national

Television, rock and roll and teenagers. In the late 1950s, when television and rock and roll were new and when the biggest generation in American history was just about to enter its teens, it took a bit of originality to see the potential power in this now-obvious combination. The man who saw that potential more clearly than any other was a 26-year-old native of upstate New York named Dick Clark, who transformed himself and a local Philadelphia television program into two of the most culturally significant forces of the early rock-and-roll era. His iconic show, American Bandstand, began broadcasting nationally on this day in 1957, beaming images of clean-cut, average teenagers dancing to the not-so-clean-cut Jerry Lee Lewis’ “Whole Lotta Shakin’ Goin’ On” to 67 ABC affiliates across the nation.

The show that evolved into American Bandstand began on Philadephia’s WFIL-TV in 1952, a few years before the popular ascension of rock and roll. Hosted by local radio personality Bob Horn, the original Bandstand nevertheless established much of the basic format of its later incarnation. In the first year after Dick Clark took over as host in the summer of 1956, Bandstand remained a popular local hit, but it took Clark’s ambition to help it break out. When the ABC television network polled its affiliates in 1957 for suggestions to fill its 3:30 p.m. time slot, Clark pushed hard for Bandstand, which network executives picked up and scheduled for an August 5, 1957 premiere.

The Great Philadelphia Textile Strike of 1903

The Central Textile Workers Union of Philadelphia held a meeting the evening of May 27, 1903. A vote was taken and a general strike call was issued. That general strike eventually caused 100,000 textile workers to go out on strike in the Philadelphia area. 16,000 of those were children under the age of 16, some as young as 8 or 9 years of age. The textile industry of the day employed children at a higher rate than any other industry. The number given from the 1900 census was 80,000. In cotton textiles, they made up 13.1% of the work force, and that rate reached 30% in the South.

The Central Textile Workers’ Union issued this statement:

Thirty-six trades, representing 90,000 people, ask the employers to reduce working hours from sixty to fifty-five hours a week. They are willing that wages be reduced accordingly. They strike for lower wages in an effort to get shorter hours.

Three trades, representing 10,000 people, ask for the same reduction in working hours, but, in addition, they ask for the same weekly wages or a slight increase, averaging ten per cent.

The request for shorter hours is made primarily for the sake of the children and women. For six years the organized textile workers of Philadelphia have been trying in vain to persuade the politician-controlled Legislature of Pennsylvania to pass a law which would reduce the working hours of children and women and stop them from doing night work.

Average  wages for adults for 60 hours of work were $13. Children working 60 hours(!) got $2.

On Monday June 1st, at least 90,000 textile workers went out on strike in the Philadelphia area. Of the 600 mills in the city, about 550 were idle. Philadelphia now had more workers out on strike than at any other time in her history. Several thousand workers had already been on strike before the textile strike began, including: the carriage and wagon builders, and the carpenters along with others working in the building trades. It appeared that the city would be in for a long hot summer.

By the next day, Tuesday, the strike spread to the hosiery mills, increasing the army of idle workers by  8,000  Most of these were women and children employed in the Kensington district. This class of workers was unorganized, but they decided to join the ranks of the unionist in other branches of the textile trade as they witnessed the magnitude of the fight for a shorter work week. The Manufacturers vowed they would not submit to the union demands even if they had to shut down their factories indefinitely.

Cross posted from The Stars Hollow Gazette

If I were the Secretary of State, I would resign.

Despite his statements to the Pakistan government that drone strikes were winding down, Secretary of State John Kerry was contradicted by his own department:

There were more drone strikes in Pakistan last month than any month since January. Three missile strikes were carried out in Yemen in the last week alone. [..]

Most elements of the drone program remain in place, including a base in the southern desert of Saudi Arabia that the Central Intelligence Agency continues to use to carry out drone strikes in Yemen. In late May, administration officials said that the bulk of drone operations would shift to the Pentagon from the C.I.A.

But the C.I.A. continues to run America’s secret air war in Pakistan, where Mr. Kerry’s comments underscored the administration’s haphazard approach to discussing these issues publicly. During a television interview in Pakistan on Thursday, Mr. Kerry said the United States had a “timeline” to end drone strikes in that country’s western mountains, adding, “We hope it’s going to be very, very soon.”

But the Obama administration is expected to carry out drone strikes in Pakistan well into the future. Hours after Mr. Kerry’s interview, the State Department issued a statement saying there was no definite timetable to end the targeted killing program in Pakistan, and a department spokeswoman, Marie Harf, said, “In no way would we ever deprive ourselves of a tool to fight a threat if it arises.”

And, we are not suppose to know about the secret CIA run drone base in Saudi Arabia that was first used for the operation that killed Anwar al-Awlaki. The Saudi government is opposed to US troops operating on their soil but the CIA assassins are OK.

A couple of questions:

Who is in charge at the State Department?

Does anyone in the Obama administration talk to each other?

Does the Obama administration really think the world is all that ignorant of what they are doing?

Who’s zooming who here?

Cross posted From The Stars Hollow Gazette

Don’t let the enthusiasm of the stock market or some financial reports that the job market and unemployment are improving or that the economy is growing faster. It’s not. None of today’s economics news is good. As a matter of facr, it’s rather depressing.

Better Than Expected Second Quarter Growth? Is the Post Kidding

by Dean Baker, Center for Economic Policy and Research

I somehow missed this Post article touting the 1.7 percent growth rate reported for the second quarter as better than expected. First it is incredible that the piece would leave readers with the impression that this strong growth, [..]

The economy’s rate of potential growth is generally estimated as being between 2.2-2.5 percent. This means that rather than making up some of the 6 percentage point gap between potential output and actual output, the gap increased in the second quarter. [..]

The GDP data released on Wednesday also included revisions to prior quarters’ data. The revision to the prior three quarters’ growth rate (Table 1A) were sharply downward lowering growth over this period by 1.3 percentage points or an average of 0.4 percent per quarter. With the revised data, growth over the last year has been just 1.4 percent. This is supposed to be a justification for withdrawing stimulus?

July Jobs Report Masks Real Problems In U.S. Labor Market

by Mark Gongloff, The Huffington Post

Fed Chairman Ben Bernanke has said the official U.S. unemployment rate could mask the real problems in the labor market. He got proof of that in July’s jobs report.

The unemployment rate dipped to 7.4 percent in July, the lowest rate since December 2008, the Bureau of Labor Statistics reported on Friday, down from 7.6 percent in June.

But payroll growth was anemic, wages dropped and more discouraged workers headed for the sidelines, continuing the slowest job-market recovery since World War II. [..]

Employers added just 162,000 jobs to non-farm payrolls in July, the Bureau of Labor Statistics reported on Friday, down from 188,000 in June, which was revised lower from an initial reading of 195,000. Together, revisions to May and June figures subtracted 26,000 jobs from payrolls, another sign of weakness. [..]

The unemployment rate, meanwhile, fell in part because 37,000 workers dropped out of the labor force, meaning they gave up looking for work. The labor-force participation rate, which measures the percentage of working-age Americans who are working or looking for work, fell to 63.4 percent in July, near a 35-year low.

The civilian employment-population ratio, which measures how many working-age Americans actually have jobs, was flat at 58.7 percent, near the lowest in 30 years and down from more than 63 percent before the recession. [..]

The majority of the jobs that have been created during the recovery have been low-paying jobs, worsening income inequality and keeping the economy sluggish.

The job market is a long way from recovery and with the slow rate of job creation there could be a deficit of 4.6 million jobs in May 2016. Not only that but the quality of the jobs that have been created are not conducive to economic stimulus:

More than half of the jobs added last month were either in retail trade or “food services and drinking places.” People employed in those sectors tend to have much shorter work weeks and much lower hourly wages than everyone else.

Even worse, a recent paper (pdf) by Canadian researchers suggests that many of the people taking these jobs are relatively over-educated. The authors argue that, since 2000, globalization and technological advancement have reduced the demand for “high-skilled” workers. Desperate for employment, these workers ended up pushing the “lower-skilled” out of the job market entirely. This may help explain why the share of people aged 25 to 54 counted as being in the labor force has plunged by 3.5 percentage points since 2000.

The quality of jobs being created is probably connected to the depressing performance of incomes and the decline in the work week. Hourly pay has grown by just 1.9 percent over the past 12 months — basically unchanged since the end of 2009. The data from the BEA tell a similar story. Real after-tax incomes fell in June. Americans still have less purchasing power than they did in November 2012. Our standard of living has barely improved over the past year.

None of this is good news. The other question is what will the Federal Reserve do? Chairmen Benjamin Bernanke has promised to keep its target interest rate near zero at least until unemployment is below 6.5 percent.

The Fed’s chairman, Ben S. Bernanke, said in June that the Fed wanted to end its current round of bond buying around the time the rate hits 7 percent, which he predicted would happen by the middle of next year. That prediction is looking conservative, suggesting the Fed could start tapering when its policy-making committee meets in September.

But Fed officials have cautioned that they want unemployment to fall because people are finding jobs, not because they’re leaving the labor force. And by broader measures, the job market remains weak. Growth is sluggish – just a 1.4 percent annualized pace in the first half of the year – and the share of American adults with jobs has actually fallen since the recession ended.

So the decision is unlikely to be clear-cut, particularly because Fed officials are divided about the benefits and the costs of the bond-buying campaign.

And the decision is not going to be made this week. Officials will see six more weeks of economic data, including one more jobs report.

I’m not all that well versed in economics but it seems fairly clear that there needs to be a huge influx of investment into the economy. Since it doesn’t appear to be coming from the private sector, which is more concerned about profits than quality job creation, then it need to start coming from the government. The likelihood of that happening any time soon is still rather grim.