Category Archives: Labor

Why President Obama Can’t Fix The Economy.

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It’s not his fault. And it’s not for lack of trying. But he’s dealing with a stacked deck.

For decades, the cornerstone of the US economy has been durable goods, driven primarily by housing starts. In other words, our economy has depended mostly on housing construction.

For example, in 2004, more than 2 million home-building permits were authorized nationwide. In 2005, the number had risen to more than 2.1 million. Then in 2007, the number dropped to less than 1.4 million. By 2009, the number was just 583,000. And even though the number increased to more than 604,000 last year, you can see that it’s only slightly more than a third of the annual building permits from just prior to the Great Recession!  And half the number in 1959!

Now think of what those numbers mean. Each of those permits requires building contractors, carpenters, electricians, plumbers, roofers, sheet rockers, flooring contractors and more. In addition, the homes need new appliances, furnaces, air conditioners, cabinets, light fixtures, plumbing fixtures, garage doors, etc.

Get the picture?

When the financial giants swindled billions from American homeowners, they destroyed confidence in homeownership. And, as the same crooks are now disposing of their inventory of foreclosed homes, they are driving down home prices which puts more homeowners in foreclosure and prices drop even farther. The end result is massive unemployment. And, if you’re unemployed, what’s the last thing you’re going to do? That’s right. The last thing you want to do is buy a home.

So what’s a President to do after the real estate industry has been driven off a cliff? The problem certainly wasn’t of President Obama’s making. Indeed, his administration has done Herculean work getting things moving back in the right direction. But he needs to do more. He needs to push for additional stimulus that will create more jobs which will encourage more people to buy homes which will create even more jobs.

But don’t hold your breath. Because, in addition to the GOP (Grand Obstructionist Party) in the Senate, he’s now faced with a Republican/Teabagger majority in the House. And all of them are determined to deny him another term in office.

If you think you hear the faint strains of Nero fiddling, you can be certain that he’s now a Republican.

Republican Agenda Has Never Been More Clear.

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Following the vote by House Republicans to cut Medicaid and turn Medicare into a certain-to-fail voucher system, Senate Republicans filibustered a bill that would end oil subsidies to the most profitable companies on Earth.  They followed that by doing the same to a bill that would end subsidies for Ethanol.

In doing so, Republicans have made it abundantly clear that they don’t care about cutting the deficit.  Not really.  If they did, they would gladly trim these subsidies from our budget resulting in savings of billions of dollars.

As evidenced by their assault on Medicare, Medicaid, Social Security, unemployment insurance, education, women’s health providers, the environment, labor unions, first responders and teachers, they certainly don’t care about ordinary citizens.

What Republicans do seem to care about is protecting the profits of their corporate masters. You know, the large corporations that were given all the rights of citizens by the conservative-dominated Supreme Court so they could anonymously spend millions to elect Republican candidates.

The connection couldn’t be more obvious.

A Political Quiz:

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Would you vote for a candidate who promised to gut public education?  Would you vote for a candidate who promised to make the rich richer at the expense of the middle class?  A candidate who promised to steal billions from individual retirement accounts and give it to greedy Wall Street bankers?  A candidate who promised to send millions of jobs overseas and reward corporations for doing it?

Would you vote for a candidate who promised to take health care away from millions?  A candidate who promised to eliminate Social Security?  To cut taxes on corporations while raising sales taxes on necessities?  To eliminate collective bargaining for workers?  To eliminate safety nets for the poor?

Would you vote for a candidate who promised to prioritize firearms over children?  To prioritize corporate profits over our environment?  To torture political enemies?  To start wars without an attack, or even a threat of attack?  To bankrupt local, state and federal governments in pursuit of his/her ideological agenda?

Would you vote for a candidate who promised to tell any lie necessary to be re-elected?

No?  Then why would you ever vote for a Republican again?

The beginning of the end of Democracy in the U.S.

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Yes, I know that probably sounds alarmist.  But consider the following:

1- The Citizens United ruling by the Supreme Court gave corporations the free speech rights of individuals.  The effect is to make them super-citizens allowing them to inject tens of millions of dollars into our political campaigns with virtually no oversight.  This, of course, greatly benefits the Republican Party which represents the interests of large corporations.

2- Ohio, Wisconsin and other states which are now controlled by Republican governors and Republican-led legislatures have attacked labor unions in order to limit their bargaining rights.  Of course, it’s only coincidence that labor unions are the last remaining large contributors to Democratic Party election campaigns.

3- Republicans at all levels of government are pushing legislation that would de-fund Planned Parenthood, another traditional contributor to Democratic campaigns.

4- Republicans are pushing to de-fund Public Broadcasting which they see as liberal-leaning media that ask too many difficult questions.

5- Finally, many of the states controlled by Republican governors and Republican legislatures are now pushing legislation that would require state-issued IDs in order to vote.  While seemingly innocuous, these IDs would prevent many college students and minorities from voting in their states.  Again, it’s merely coincidence that college students and minorities most often vote for Democratic candidates.The impact of all of this is to greatly increase campaign funds for Republican candidates and to decrease available funding for Democratic candidates.  These tactics would also serve to disenfranchise Democratic-leaning voters and to quiet independent media that refuse to adhere to Republican talking points.

This is a serious threat, folks!  We can’t allow Republicans and their corporate masters to continue to stack the deck against working citizens.  Speak up!  Ask your Republican friends why, if their political ideas are so great, do they have to resort to trickery and bullying tactics in order to push them on ordinary people?

The Real Reagan Legacy.

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On the occasion of Ronald Reagan’s 100th birthday, Republicans and other conservatives simply could not contain their myopic admiration for “The Great Communicator.”  In reality, he should have been called “The Great Propagandist.”  Or, perhaps, “The Great Bullsh***er.”

For, I believe, the collapse of the middle class can be traced directly to the decisions made during his terms in office.  Take the assault on labor unions.  It was Reagan who decided that he could not be troubled with the PATCO strike.  So he fired most of the nation’s air traffic controllers and replaced them with new, more obedient controllers.

Or take “Reaganomics,” AKA “Voodoo Economics” and “Trickle-down Economics.”  Under Reagan, the administration began the biggest transfer of wealth in the nation’s history.  All upward.

He began by paving the way for interstate banking, which effectively did away with usuary laws that limited the interest rate banks could charge for loans.  And he ended tax deductions for the interest paid on loans.  (For those too young to remember, prior to Reagan, all of the interest paid on loans for education, cars, credit cards, etc. was tax deductible.)  The effect was to enact a huge tax increase on the poor and the middle class while, at the same time, cutting taxes for corporations and the wealthy.

Reagan’s economic disciples, such as George W. Bush, have not only further cut taxes for corporations and the wealthy, they have continued the assault on labor unions by providing tax incentives for corporations to ship jobs overseas.  They have dramatically cut the estate tax and capital gains taxes.  They have provided subsidies for some of the world’s most profitable corporations – oil and pharamceutical companies.  They have attacked Social Security, Medicaid, Medicare and even public education as “entitlements.”  And people like Wisconsin Governor Walker are trying to put an end to collective bargaining.

The result of the policies of all these Reaganophiles is that the 400 wealthiest people in the nation now control 50 percent of the nation’s wealth.  To be clear, that means 400 people now have as much money as the bottom 110,000,000 Americans combined!  Even Reagan’s own budget director now admits that “Reaganomics” was a disaster for the middle class.

So pardon me if I choose not to celebrate the Reagan legacy.  To me, that would be akin to celebrating the legacy of influenza.  Or measles.  Or polio!

The War Within.

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For many years, Republicans have accused Democrats of “class warfare” and “wealth redistribution.”  They’re correct, of course.  But they fail to mention that they are the ones responsible.  And that the wealth is being redistributed to the wealthiest 2% of our population.

Ever since Ronald Reagan began pushing economic policies based on the “trickle-down theory,” our government has “reformed” (eliminated) welfare for the poor and increased welfare for large corporations and the wealthy.

For example, under Republican leadership, Arizona has reduced corporate taxes 15 years in a row.  As a result, the percentage of state revenue from corporate taxes has dropped 35% to 9%.  Is there really any question why the state is facing a deficit of more than $1 billion in 2011?  Not even increased sales taxes and the already draconian cuts in education, state parks and health care for the poor can make up the deficit.  And Arizona is not alone.

For many years, federal, state and local governments have bowed at the altar of big business thanks to Republicans and their allies.

Due to their political leverage, large corporations are given many advantages over their smaller rivals and individuals.  The federal government has allowed multi-national corporations to avoid taxes by locating a post office box off-shore.  These same corporations have been rewarded for sending jobs off-shore, as well.  State governments provide large “loans” and tax incentives to encourage corporations to open facilities in their states.  And city governments provide Tax Increment Financing (another term for property tax avoidance) to encourage development within their cities.

Corporate farm operations have received $billions in subsidies while family farms have been allowed to go bankrupt.  Large oil companies and mining operations are given subsidies to deface our land and pollute our air and water.

And the best example of all is the recent melt-down and ensuing bailout of our largest financial institutions.  In the ’90s, Republicans stripped away most financial regulations allowing these institutions to gamble with our money.  When the institutions failed, taxpayers were forced to loan them $billions to avoid a devastating depression while the gamblers paid themselves $billions in bonuses.And how did Republicans address the situation?  Why, of course, they fought against any form of increased regulation by Democrats!

Now Republicans are determined to extend the Bush-era tax cuts, despite the fact that they’ll add more than $4 trillion to our national debt over the next 10 years!  They even want to permanently extend tax cuts for millionaires that will add more than $700 billion to our deficit over 10 years.  Out of the other side of their mouths, they continue to talk about reducing our growing deficit.

And how do they propose to reduce the deficit they created?  Do they want to eliminate tax loopholes that encourage large corporations to export jobs and avoid taxes?  Do they want to cut our bloated military budget?  Do they want to go after the abuses of military contractors?

Of course not.

They want to end unemployment benefits, reduce Social Security, reduce Medicare, reduce the Veteran’s Administration, eliminate Medicaid (health care access for the poor) and create a national sales tax which will further increase the tax burden on the poor and the middle class.  They may succeed.

As long as Democrats remain dispirited, and independents vote against their own self-interest as they did this year, Republicans and their corporate masters will continue to extract money from working people.  To ensure that, they can rely on a conservative-controlled Supreme Court that equates corporations to people, and allows corporations to spend tens of millions of dollars on behalf of Republican candidates.

What’s The Real Reason There Are More Women In The Workplace?

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For the past several years, there has been much publicity over the increase of women in the workplace. The hiring of women has greatly outpaced the hiring of men in certain jobs. Advertising, marketing, healthcare, and many other industries are becoming dominated by women. The statistics would lead you to believe that the U.S. has finally become gender equal.

But before you begin applauding American corporations for their enlightment, you may want to consider another, not quite so flattering, reason for the change. In their never-ending quest to increase profits and pump up stock prices, corporations may simply be hiring more women because they can pay them less.

That’s right. American corporations have cut employee-related costs by increasing productivity, automating production lines, and shipping high-paying jobs overseas where workers are paid less and receive virtually no benefits. Many have hired illegal immigrants to replace workers at the lowest end of the pay scale. They’ve utilized independent contractors to replace full-time office workers in order to avoid paying Social Security, health care benefits, disability insurance and unemployment insurance. They’ve even come up with ways to use the Internet to pare the cost of marketing, advertising and design. So what’s left?

Women have always been able to do most jobs as well as men (and many better). But their salaries have long been suppressed. (A recent study found that female attorneys in elite law firms were paid an average of $66,000/year less than their male counterparts.) So why not take advantage of them once again?

Hiring more women is a sign of progress toward gender equality. But the reason for it is not necessarily one that corporations should be proud of.

Corporations Fueling Immigration Problem

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With all the controversy created by Arizona’s new immigration bill, I think we should consider the role corporations have played in creating this problem. For the past 30+ years, our large corporations have been “outsourcing” manufacturing jobs to places like China, India, Indonesia and Mexico. Our TVs are now made in China, Korea and Japan. Our DVDs are made in China. Our clothes and toys are made in China. Our shoes are made in China, Indonesia and Mexico. Our computer software is created in India. Our appliances are made in China and Korea. Many of our cars are made in Japan and Korea. The list goes on and on.

We’re told the reason our corporations have exported our jobs is that American consumers demand lower and lower prices. Really? Of course, consumers want to pay as little for products as possible. But at what cost? High unemployment? Lower wages? Fewer benefits? No health care? No pensions?

Face it, the real reason corporations export jobs is to maximize profits by avoiding reasonable wages and benefits. Most of all, they want to avoid organized labor, which has forced corporations to treat employees fairly.

Now, let’s look at the industries which hire most of the undocumented workers – fast food outlets, meat-packing plants, roofing companies, landscaping businesses, corporate farms and other labor-intensive businesses. Why do they hire illegals? Because these are industries which, for a variety of reasons, are unable to export jobs to other countries. So, the only way for these industries to cut salaries and benefits is to hire illegals. After all, illegals have no voice. They are so desperate to find a job that they are willing to endure long, dangerous treks arcross the desert or to deal with human traffickers in the hopes of being hired. They can’t organize unions. They can’t pressure the government for higher minimum wages. They can’t sue the corporations. All they can do is work for the salaries and benefits the corporations are willing to offer them.

As long as we allow corporations to continue to hire illegal workers without serious consequences, this problem is unlikely to change. They know that the federal, state and local governments will continue to cut corporate taxes and reduce regulations in an attempt to replace jobs that our corporations have exported. They know that investors won’t care as long as their stock values continue to rise. They know that the majority of consumers will never boycott products made by illegals as long as prices are low. They know governments will provide education, health care and other benefits for their employees and their families at no cost to the corporations. And if their illegal workers are deported, these corporations know that there will be plenty of other illegal immigrants to take their place.

So my question is this: Why are we punishing illegal workers when we should be punishing unethical corporations?

What Republicans Really Stand For:

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Since Republicans like to attack any (make that every) Democrat idea, I thought it might be useful to look at what Republicans want.

1. Guns for everybody, no training required, the more the better.

2. Elimination of income taxes. Replace them with sales taxes, so the rich are taxed disproportionately less.

3. Elimination of labor unions. Who needs collective bargaining when corporations are so caring and generous to their employees?

4. Elimination of welfare, unemployment benefits, Social Security and Medicare. Only the wealthy deserve entitlements.

5. Elimination of public schools. After all, who wants children learning about such controversial issues as evolution anyway?

6. The criminalization of abortion, birth control and sex education. You can never have enough unwanted, uneducated children, right?

7. Repeal of health care reform – if you can’t afford health care on your own, you deserve to die.

8. Unlimited campaign contributions from corporations, but only for Republicans.

9. Deregulation of Wall Street, Big Oil, mining, Big Pharma, military contractors, commodities and any other campaign contributors.

10. Elimination of community organizers – you know, anyone who will fight for the underpriviledged and, most importantly, anyone who will register poor people to vote.

11. Elimination of mandatory minimum wages. It’s a drag on business to have to pay employees a living wage.

12. Downsizing of government, except for Homeland Security, I.C.E., border patrols, and any agency that looks out for wealthy Americans.

13. Privatization of the military, the Post Office, National Parks, and almost every other branch of government. There’s no profit for shareholders if the government does it.

14. Elimination of the Environmental Protection Agency. Climate change is just a myth perpetuated by Al Gore and those tree-hugging liberals. Besides, what good are natural resources if corporations can’t exploit them? Right?

15. Recognition of Christianity as the state religion. God bless America.

If you think I’m exaggerating, you just haven’t been paying attention.

The next big crisis facing Democrats.

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For 30 years, the Grand Old Party of Corporations has fought to end welfare for the poor (although corporate welfare is just dandy), labor unions, workers’ compensation programs, public schools, and entitlements such as Medicare and Social Security.  And recent events have presented Republicans a golden opportunity to permanently undo 80 years of progressive initiatives. 

State income has plummeted as a result of the Republican-created financial collapse.  Now those states controlled by right-wing conservative legislatures are capitalizing on the recession by slashing budgets for public education, health care for at-risk children, and pensions.  And you can bet the wingnuts are going to blame it all on President Obama and the Democratic-controlled Congress. 

In my state of Arizona, a Republican-controlled legislature has slashed millions from an education system that already ranks 49th in the nation.  (Following the Republican philosophy of wresting control away from government, the state offers huge subsidies for private and parochial schools.  Of course, those subsidies are unaffected by budget cuts.)  The legislature is also closing state parks even though they are a necessary part of the state’s 2nd largest industry – tourism.  The legislature is even considering selling all state-owned buildings and leasing them back as part of long-term agreements which will pay the purchasers billions of taxpayer dollars.  But, according to Republicans, they’re only doing what Democrats won’t – balance the budget. 

Never mind that, for years, Republicans have cut taxes for the wealthy.  Never mind that the legislature refused to allow the Republican governor to place a temporary sales tax increase on the ballot.  It’s a perfect political climate for Republicans to orchestrate this charade. 

I hope voters are informed enough to make Republicans pay for it by voting for progressive candidates.  But since many rely on the Faux News Channel for information, they’re more likely to make matters worse by voting for the Tea Party, instead.