Tag: employment

Yes, comrades, we need to talk about crises again, the term recession simply does not explain what is really going on! Just in case you might not have noticed or perhaps the mainstream media where you live ignored it, the obvious has happened and the end of the so-called recession has disappeared into the fantasy novel. Once again there is a slowdown in growth and the financial markets are not particularly happy. This time, Germany and China are showing signs of slowdown. Globalisation has not ended the potential towards crises in the capitalist economic system; in fact, the greater interconnectedness of the world economy has exacerbated the situation and ensured that the contagion spreads.  

For those who believe the fantasies of neoliberal economics, the shock of these latest failures of neoliberalism must come as a surprise. But for those of us that have been warning of the stupidity of squeezing wages and destroying work conditions, rising inequality in income and wealth, the dangers of export-led growth when wage incomes are being squeezed meaning that unless governments become the sole purchasers of goods and services that are being produced (and they are not) that obviously there comes a point when working people cannot purchase goods and services as their incomes are too low, wiping out of savings  has happened and personal indebtedness leads to default and bankruptcy. Neither of these things helps to maintain capitalist growth, accumulation and profitability in the long run; forget that, it hasn’t even lasted in the short run.

I will be giving a run through on what is going on and why our lives feel as though we are living through the Shock Doctrine (which we are) then address the proposals of dealing with persistent unemployment under capitalism from the Left on which there is significant disagreement.

Author’s Note: Hi everybody! Welcome to a participatory diary. That’s right, participatory. I’m offering this up as an exercise for everyone to try. The original text is  an explanation of the exercise and why I’m suggesting it, followed by a couple of examples. Then, it’s up to you to complete the diary. Add comments with your own examples and I’ll build out the diary with your content. Let’s see what the whole feels like when we make an attempt to respond to the State of the Union address together. When we make a conscious effort to dig into the principles we find buried in the speech and compare them to the principles we would like to live by, how aligned do they feel?

We’ve heard a lot of responses this week to President Obama’s State of the Union Address. What I find persistently frustrating with any US political speech the lack of unpacking the “capitalist”, “democratic” and “American Way” framework. Or rather, the lack of establishing the principles behind what is being said to see whether it’s fits with the principles and values that we hold.

I have not framed this diary as an “anti-capitalist” one. I am suggesting that regardless of how you feel about capitalism, you might find it useful to analyze what another capitalist is saying by setting aside the supposed common ground of capitalism and searching for what values are reflected in what is being said. Capitalism isn’t a value. It’s a type of economic system. When we identify as a capitalist, however, we probably attach a value system to that identity. What I’m wondering here is whether everyone attaches the same value system. Do you even know if the speaker has the same value system as you?

I am someone who gets frustrated when people try to make decisions or solve problems together without establishing their shared principles. “Capitalism” is not a principle. Principles are about values and beliefs. They are guides to how we behave, how we treat one another. You could claim to be a capitalist and believe that everyone has a right to food and shelter. You could claim to be a capitalist and believe that food and shelter are not rights, they must be “earned.” Those are mutually exclusive principles which two different people are claiming as part of the capitalist construct. If they simply greet each other as capitalists, it is possible for them to think they are aligned when they are not. This opens the door for misunderstanding, at best, and deception, manipulation and oppression, at worst.

Is that happening in this speech? The answer to that and the places where we feel it is happening may be different for each person. Hence, the participatory nature of this diary. What feels unaligned for me may feel aligned for you and vice versa. But, perhaps, we’ll find some common threads of values that we would like to see underpinning our governance and social life. Perhaps ….

Cross posted from The Stars Hollow Gazette

In a press release, Massachusetts Senator Elizabeth Warren along with five other Senate Democrats announced the introduction of legislation to end the practice of some employers to require a job applicant to disclose their credit rating.

Senator Warren Introduces Legislation to Prohibit Employers from Requiring Credit Report Disclosure

Dec 17, 2013

Fact Sheet is Available Here (pdf)

Text of the Legislation is Available Here (pdf)

Washington, DC – United States Senator Elizabeth Warren (D-Mass.) today introduced the Equal Employment for All Act with Senators Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Patrick Leahy (D-Vt.), Edward J. Markey (D-Mass.), Jeanne Shaheen (D-N.H.), and Sheldon Whitehouse (D-R.I.). The legislation would prohibit employers from requiring potential employees to disclose their credit history as part of the job application process. It was previously thought that credit history may provide insight into an individual’s character, but research has shown that an individual’s credit rating has little to no correlation with his or her ability to be successful in the workplace.

“A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual’s character or abilities,” Senator Warren said.  “Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs. This is about basic fairness — let people compete on the merits, not on whether they already have enough money to pay all their bills.”

A study from the Federal Trade Commission earlier this year suggested that errors in credit reports are common and, in many cases, have been difficult to correct.  “It makes no sense to make it harder for people to get jobs because of a system of credit reporting that has no correlation with job performance and that can be riddled with inaccuracies,” Warren said. [..]

Senator Warren’s bill is based on H.R. 645, which was introduced by Congressman Steve Cohen (TN-9) in 2011.

Sen. Warren joins the host of MSNBC’s “All In” Chris Hayes to talk about her bill to stop employers from using an applicant’s credit score in the vetting process.

Take Action and sign the petition to support Equal Employment for All Act and end the practice of denying employment based on credit scores,

Cross posted from The Stars Hollow Gazette

Economist Richard Wolff discusses how austerity is making economic problems worse and the cure for these economic woes.

As Washington lawmakers pushes new austerity measures, economist Richard Wolff calls for a radical restructuring of the U.S. economic and financial systems. We talk about the $85 billion budget cuts as part of the sequester, banks too big to fail, Congress’ failure to learn the lessons of the 2008 economic collapse, and his new book, “Democracy at Work: A Cure for Capitalism.” Wolff also gives Fox News host Bill O’Reilly a lesson in economics 101.

   AMY GOODMAN: Professor Wolff, before we end, I want to turn back to the crisis in Cyprus and relate it to what’s happening here. Bill O’Reilly of Fox News warned his audience last week that Cyprus and other European countries are facing economic hardships because they’re so-called “nanny states.”

       BILL O’REILLY: Greece, Italy, Spain, Portugal, Ireland, now Cyprus, all broke. And other European nations are close. Why? Because they’re nanny states, and there are not enough workers to support all the entitlements these progressive paradises are handing out.

   AMY GOODMAN: That’s Bill O’Reilly of Fox News. Richard?

   RICHARD WOLFF: You know, he gets away with saying things which no undergraduate in the United States with a responsible economic professor could ever get away with. If you want to refer to things as nanny states, then the place you go in Europe is not the southern tier-Portugal, Spain and Italy; the place you go are Germany and Scandinavia, because they provide more social services to their people than anybody else. And guess what: Not only are they not in trouble economically, they are the winners of the current situation. The unemployment rate in Germany is now below 5 percent. Ours is pushing between 7 and 8 percent. So, please, get your facts right, Mr. O’Reilly.

   The nanny state, you call it, the program of countries like Germany and Scandinavia, who tax their people heavily, by all means, but who provide them with social services that would be the envy of the United States-a national health program that takes care of you, whether you’re employed or not, and gives you proper healthcare. In France, for example, the law says when you go to work, you get five weeks’ paid vacation. That’s not an option; that’s the law. You get support when you’re a new parent for your child care and so forth. They provide services. And they are successful in Germany and Scandinavia, much more than we are in the United States and much more than those countries in the south.

   So they’re not broken, the south, because they’re nanny states, since the nanny states, par excellence, are doing better than everyone. The actual truth of Mr. O’Reilly is the opposite of what he says. The more you do nanny state, the better off you are during a crisis and to minimize the cost of the crisis. That’s what the European economic situation actually teaches. He’s just making it up as he goes along to conform to an ideological position that is harder and harder for folks like him to sustain, so he has to reach further and further into fantasy.

H/t Heather at Crooks and Liars

Capitalism efficient? We can do so much better

by Richard Wolff, The Guardian

For all its vaunted efficiency, capitalism has foisted wasteful inequality and environmental ruin on us. There is an alternative

What’s efficiency got to do with capitalism? The short answer is little or nothing. Economic and social collapses in Detroit, Cleveland and many other US cities did not happen because production was inefficient there. Efficiency problems did not cause the longer-term economic declines troubling the US and western Europe.

Capitalist corporations decided to relocate production: first, away from such cities, and now, away from those regions. It has done so to serve the priorities of their major shareholders and boards of directors. Higher profits, business growth, and market share drive those decisions. As I say, efficiency has little or nothing to do with it.

Many goods and services once made in the US and western Europe for those markets are now produced elsewhere and transported back to them. That wastes resources spent on the costly relocation and consequent return transportation. The pollution (of air, sea and soil) associated with vast transportation networks – and the eventual cleaning up of that pollution – only enlarges that waste.

With veterans’ unemployment rising, President Barack Obama is scheduled on Friday in a visit Washington’s Navy Yard to announce initiatives to prepare vets for civilian jobs.

Those boomers born during WWII and in the few years directly after may or may not remember their childhood years, I do. What your parents, coming out of the military, no higher education needed to fight our wars, or moms coming out of the factories, quickly taught the jobs needed to work in by those who for many reasons couldn’t serve in the military. You grew up into that working world that had quickly grown a prosperous middle class, and with usually small but regular raises and improved benefits and safety you were prospering better then your parents. That all started changing some thirty to forty years ago to growth at the top and wall street investing while the worker stopped sharing in the labors instead given easy, but costly, credit to make them think they were doing better then the generations previous.