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Javier E

Walmart's Visible Hand - NYTimes.com - 0 views

  • Conservatives — with the backing, I have to admit, of many economists — normally argue that the market for labor is like the market for anything else. The law of supply and demand, they say, determines the level of wages, and the invisible hand of the market will punish anyone who tries to defy this law.
  • Specifically, this view implies that any attempt to push up wages will either fail or have bad consequences. Setting a minimum wage, it’s claimed, will reduce employment and create a labor surplus, the same way attempts to put floors under the prices of agricultural commodities used to lead to butter mountains, wine lakes and so on
  • Pressuring employers to pay more, or encouraging workers to organize into unions, will have the same effect.
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  • But labor economists have long questioned this view
  • the labor force — is people. And because workers are people, wages are not, in fact, like the price of butter, and how much workers are paid depends as much on social forces and political power as it does on simple supply and demand.
  • What’s the evidence? First, there is what actually happens when minimum wages are increased. Many states set minimum wages above the federal level, and we can look at what happens when a state raises its minimum while neighboring states do no
  • the overwhelming conclusion from studying these natural experiments is that moderate increases in the minimum wage have little or no negative effect on employment.
  • Then there’s history. It turns out that the middle-class society we used to have didn’t evolve as a result of impersonal market forces — it was created by political action, and in a brief period of time
  • America was still a very unequal society in 1940, but by 1950 it had been transformed by a dramatic reduction in income disparities, which the economists Claudia Goldin and Robert Margo labeled the Great Compression.
  • How did that happen?
  • Part of the answer is direct government intervention, especially during World War II, when government wage-setting authority was used to narrow gaps between the best paid and the worst paid. Part of it, surely, was a sharp increase in unionization. Part of it was the full-employment economy of the war years, which created very strong demand for workers and empowered them to seek higher pay.
  • the Great Compression didn’t go away as soon as the war was over. Instead, full employment and pro-worker politics changed pay norms, and a strong middle class endured for more than a generation. Oh, and the decades after the war were also marked by unprecedented economic growth.
  • Walmart is under political pressure over wages so low that a substantial number of employees are on food stamps and Medicaid. Meanwhile, workers are gaining clout thanks to an improving labor market, reflected in increasing willingness to quit bad jobs.
  • its justification for the move echoes what critics of its low-wage policy have been saying for years: Paying workers better will lead to reduced turnover, better morale and higher productivity.
  • What this means, in turn, is that engineering a significant pay raise for tens of millions of Americans would almost surely be much easier than conventional wisdom suggests. Raise minimum wages by a substantial amount; make it easier for workers to organize, increasing their bargaining power; direct monetary and fiscal policy toward full employment, as opposed to keeping the economy depressed out of fear that we’ll suddenly turn into Weimar Germany. It’s not a hard list to implement — and if we did these things we could make major strides back toward the kind of society most of us want to live in.
  • The point is that extreme inequality and the falling fortunes of America’s workers are a choice, not a destiny imposed by the gods of the market. And we can change that choice if we want to.
Javier E

The Hidden Automation Agenda of the Davos Elite - The New York Times - 0 views

  • for the past week, I’ve been mingling with corporate executives at the World Economic Forum’s annual meeting in Davos. And I’ve noticed that their answers to questions about automation depend very much on who is listening.
  • in private settings, including meetings with the leaders of the many consulting and technology firms whose pop-up storefronts line the Davos Promenade, these executives tell a different story: They are racing to automate their own work forces to stay ahead of the competition, with little regard for the impact on workers.
  • All over the world, executives are spending billions of dollars to transform their businesses into lean, digitized, highly automated operations. They crave the fat profit margins automation can deliver, and they see A.I. as a golden ticket to savings, perhaps by letting them whittle departments with thousands of workers down to just a few dozen.
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  • “People are looking to achieve very big numbers,” said Mohit Joshi, the president of Infosys, a technology and consulting firm that helps other businesses automate their operations. “Earlier they had incremental, 5 to 10 percent goals in reducing their work force. Now they’re saying, ‘Why can’t we do it with 1 percent of the people we have?’”
  • they’ve come up with a long list of buzzwords and euphemisms to disguise their intent. Workers aren’t being replaced by machines, they’re being “released” from onerous, repetitive tasks. Companies aren’t laying off workers, they’re “undergoing digital transformation.”
  • IBM’s “cognitive solutions” unit, which uses A.I. to help businesses increase efficiency, has become the company’s second-largest division, posting $5.5 billion in revenue last quarter.
  • The investment bank UBS projects that the artificial intelligence industry could be worth as much as $180 billion by next year.
  • “On one hand,” he said, profit-minded executives “absolutely want to automate as much as they can.”“On the other hand,” he added, “they’re facing a backlash in civic society.”
  • In an interview, he said that chief executives were under enormous pressure from shareholders and boards to maximize short-term profits, and that the rapid shift toward automation was the inevitable result.
  • it’s probably not surprising that all of this automation is happening quietly, out of public view. In Davos this week, several executives declined to say how much money they had saved by automating jobs previously done by humans. And none were willing to say publicly that replacing human workers is their ultimate goal.
  • Kai-Fu Lee, the author of “AI Superpowers” and a longtime technology executive, predicts that artificial intelligence will eliminate 40 percent of the world’s jobs within 15 years.
  • Terry Gou, the chairman of the Taiwanese electronics manufacturer Foxconn, has said the company plans to replace 80 percent of its workers with robots in the next five to 10 years
  • Richard Liu, the founder of the Chinese e-commerce company JD.com, said at a business conference last year that “I hope my company would be 100 percent automation someday.
  • One common argument made by executives is that workers whose jobs are eliminated by automation can be “reskilled” to perform other jobs in an organization
  • There are plenty of stories of successful reskilling — optimists often cite a program in Kentucky that trained a small group of former coal miners to become computer programmers — but there is little evidence that it works at scale
  • A report by the World Economic Forum this month estimated that of the 1.37 million workers who are projected to be fully displaced by automation in the next decade, only one in four can be profitably reskilled by private-sector programs
  • The rest, presumably, will need to fend for themselves or rely on government assistance.
  • In Davos, executives tend to speak about automation as a natural phenomenon over which they have no control, like hurricanes or heat waves. They claim that if they don’t automate jobs as quickly as possible, their competitors will.
  • these executives can choose how the gains from automation and A.I. are distributed, and whether to give the excess profits they reap as a result to workers, or hoard it for themselves and their shareholders.
  • “The choice isn’t between automation and non-automation,” said Erik Brynjolfsson, the director of M.I.T.’s Initiative on the Digital Economy. “It’s between whether you use the technology in a way that creates shared prosperity, or more concentration of wealth.”
Javier E

The Curse of Econ 101 - The Atlantic - 1 views

  • Poverty in the midst of plenty exists because many working people simply don’t make very much money. This is possible because the minimum wage that businesses must pay is low: only $7.25 per hour in the United States in 2016 (although it is higher in some states and cities). At that rate, a person working full-time for a whole year, with no vacations or holidays, earns about $15,000—which is below the poverty line for a family of two, let alone a family of four.
  • A minimum-wage employee is poor enough to qualify for food stamps and, in most states, Medicaid. Adjusted for inflation, the federal minimum is roughly the same as in the 1960s and 1970s, despite significant increases in average living standards over that period.
  • At first glance, it seems that raising the minimum wage would be a good way to combat poverty.
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  • The United States currently has the lowest minimum wage, as a proportion of its average wage, of any advanced economy,
  • On the other hand, two recent meta-studies (which pool together the results of multiple analyses) have found that increasing the minimum wage does not have a significant impact on employment.
  • The minimum wage has been a hobgoblin of economism since its origins
  • Think tanks including Cato, Heritage, and the Manhattan Institute have reliably attacked the minimum wage for decades, all the while emphasizing the key lesson from Economics 101: Higher wages cause employers to cut jobs.
  • In today’s environment of increasing economic inequality, the minimum wage is a centerpiece of political debate
  • The real impact of the minimum wage, however, is much less clear than these talking points might indicate.
  • In 1994, David Card and Alan Krueger evaluated an increase in New Jersey’s minimum wage by comparing fast-food restaurants on both sides of the New Jersey-Pennsylvania border. They concluded, “Contrary to the central prediction of the textbook model ... we find no evidence that the rise in New Jersey’s minimum wage reduced employment at fast-food restaurants in the state.”
  • Card and Krueger’s findings have been vigorously contested across dozens of empirical studies. Today, people on both sides of the debate can cite papers supporting their position, and reviews of the academic research disagree on what conclusions to draw.
  • economists who have long argued against the minimum wage, reviewed more than one hundred empirical papers in 2006. Although the studies had a wide range of results, they concluded that the “preponderance of the evidence” indicated that a higher minimum wage does increase unemployment.
  • The argument against increasing the minimum wage often relies on what I call “economism”—the misleading application of basic lessons from Economics 101 to real-world problems, creating the illusion of consensus and reducing a complex topic to a simple, open-and-shut case.
  • The profession as a whole is divided on the topic: When the University of Chicago Booth School of Business asked a panel of prominent economists in 2013 whether increasing the minimum wage to $9 would “make it noticeably harder for low-skilled workers to find employment,” the responses were split down the middle.
  • The idea that a higher minimum wage might not increase unemployment runs directly counter to the lessons of Economics 101
  • there are several reasons why the real world does not behave so predictably.
  • In short, whether the minimum wage should be increased (or eliminated) is a complicated question. The economic research is difficult to parse, and arguments often turn on sophisticated econometric details. Any change in the minimum wage would have different effects on different groups of peop
  • At the other extreme, very large employers may have enough market power that the usual supply-and-demand model doesn’t apply to them. They can reduce the wage level by hiring fewer workers
  • In the above examples, a higher minimum wage will raise labor costs. But many companies can recoup cost increases in the form of higher prices; because most of their customers are not poor, the net effect is to transfer money from higher-income to lower-income families.
  • In addition, companies that pay more often benefit from higher employee productivity, offsetting the growth in labor costs.
  • why higher wages boost productivity: They motivate people to work harder, they attract higher-skilled workers, and they reduce employee turnover, lowering hiring and training costs, among other things
  • If fewer people quit their jobs, that also reduces the number of people who are out of work at any one time because they’re looking for something better. A higher minimum wage motivates more people to enter the labor force, raising both employment and output
  • Finally, higher pay increases workers’ buying power. Because poor people spend a relatively large proportion of their income, a higher minimum wage can boost overall economic activity and stimulate economic growth
  • Even if a higher minimum wage does cause some people to lose their jobs, that cost has to be balanced against the benefit of greater earnings for other low-income workers.
  • Although the standard model predicts that employers will replace workers with machines if wages increase, additional labor-saving technologies are not available to every company at a reasonable cost
  • Nevertheless, when the topic reaches the national stage, it is economism’s facile punch line that gets delivered, along with its all-purpose dismissal: people who want a higher minimum wage just don’t understand economics (although, by that standard, several Nobel Prize winners don’t understand economics
  • This conviction that the minimum wage hurts the poor is an example of economism in action
  • one particular result of one particular model is presented as an unassailable economic theorem.
  • A recent study by researchers at the Cornell School of Hotel Administration, however, found that higher minimum wages have not affected either the number of restaurants or the number of people that they employ, contrary to the industry’s dire predictions, while they have modestly increased workers’ pay.
  • The fact that this is the debate already demonstrates the historical influence of economism
  • Low- and middle-income workers’ reduced bargaining power is a major reason why their wages have not kept pace with the overall growth of the economy. According to an analysis by the sociologists Bruce Western and Jake Rosenfeld, one-fifth to one-third of the increase in inequality between 1973 and 2007 results from the decline of unions.
  • With unions only a distant memory for many people, federal minimum-wage legislation has become the best hope for propping up wages for low-income workers. And again, the worldview of economism comes to the aid of employers by abstracting away from the reality of low-wage work to a pristine world ruled by the “law” of supply and demand.
ethanshilling

What the 'Invisible' People Cleaning the Subway Want Riders to Know - The New York Times - 0 views

  • Yaneth Ochoa, a Colombian woman who lives in Queens, was glad to find a job cleaning the subway last summer, as demolition jobs had dried up during the pandemic.
  • But as trains rolled into the Jamaica-179 Street Station in Queens, she learned she would not just be wiping down cars to remove traces of the coronavirus.
  • Like workers at end-of-line stations all over New York City, Ms. Ochoa, 30, was expected to scrub away grime, sputum and even human excrement, she said, without adequate training or special equipment.
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  • Cleaning the New York City subway has always been a dirty job. But when the pandemic hit last spring, it became even more challenging.
  • The thousands of workers the contractors hired — largely low-income immigrants from Latin America — were envisioned as a stopgap measure, as M.T.A. workers were falling ill and dying of the virus.
  • Now, as the M.T.A. prepares to welcome more riders, the workers are pushing back, raising concerns about their safety, salaries and working conditions that they say feel like exploitation.
  • The New York Times interviewed a dozen contract cleaners, including three who in late February had met with Patrick J. Foye, the chairman and chief executive of the M.T.A. to describe their job and share a list of “needs” with transit agency leadership.
  • “It’s so scary to be left without work right now that you’ll accept almost anything,” she said.
  • A spokeswoman for the M.T.A., Abbey Collins, said the agency was disinfecting the subway with the help of “licensed and reputable outside companies whose performance is monitored regularly.”
  • The cleaning program, which the M.T.A. plans to continue indefinitely, will cost about $300 million this year.
  • “If you’ve got workers on the property for a year, it’s a matter of basic equality,” said Zachary Arcidiacono, the chair of the Train Operators Division for the union.
  • Ms. Ochoa, who earned around $15 per hour, New York State’s minimum wage, finally quit after refusing to clean a train smeared with excrement with just a few rags, she said.
  • Their accounts paint a picture of dismal working conditions, and highlight their unequal treatment compared with transit cleaners, who are paid up to $30 an hour and enjoy health insurance and other benefits, uniforms and MetroCards to swipe themselves into the system.
  • Transit officials said they had called on City Hall to send more police officers and mental health workers into the subway to ensure that all workers and passengers were safe.
  • “Many people were getting paid minimum wage or just a dollar or two more,” Mr. Tecaxco said. “The conditions were terrible.”
  • Ms. Muñoz, who cleaned the offices of an architecture firm before the pandemic, said the work was taxing and the rules were strict. Workers were let go for arriving minutes late, or for calling in sick, including from Covid-19, she said.
  • Ms. Muñoz said she was fired in November without explanation. As the sole provider for her four children and parents in Puebla, Mexico, she pleaded to keep her job.
  • Since then, she has not found steady work; she cleans someone’s home every two weeks. As for her former co-workers at the end of the Q line, “My compañeros are still there,” Ms. Muñoz said. “Nothing has changed.”
aidenborst

Chamber of Commerce: Worker shortage can't be solved without ramping up immigration - CNN - 0 views

  • As businesses grapple with record-high job openings, the US Chamber of Commerce is loudly calling on Washington to allow more foreign workers to legally enter the country.
  • Neil Bradley, chief policy officer at the Chamber of Commerce, told CNN Business that the worker shortage can't be solved in the long run without ramping up immigration.
  • "We've never seen a situation this broad-based across the country where businesses are having to turn down work because they simply can't find the workers to do it," Bradley said. "This crisis is not going to go away."
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  • Economists have long warned that the aging US population means the nation will need to rely on a steady influx of foreign workers to meet demand. Yet Washington has repeatedly failed to reach a deal on immigration reform. And the Trump administration repeatedly put up obstacles to legal immigration, including restrictions imposed in 2020 that cited the pandemic's impact on the jobs market.
  • "Immigration was completely upended by the pandemic," said Bradley. "Go to any resort town in America. Where you would normally have individuals on temporary J-1 visas, they are nonexistent."
  • "But labor supply will be a longer run issue, just like before the pandemic," Zandi said. "There are reasons to believe it will be a bigger problem post-pandemic because immigration is a shadow of what it was."
  • "The survivability of your business comes down to how lucky you are in the lottery," Bradley said.
  • "The [Biden] administration deserves a lot of credit for taking that step," Bradley said. "They are operating within the limits of where the current law exists."
  • Beyond immigration reform, the Chamber told CNN Business it will urge states to use American Rescue Plan funding to help parents struggling with the high cost of childcare.
  • "There is no question the disruption of in-person schooling and childcare has reduced the number of caregivers, principally women, who are in the workforce and able to work," Bradley said.
  • Arizona announced plans on May 13 to use funds from the $1.9 trillion American Rescue Plan to assist working parents with childcare costs. The state said it will provide three months of childcare assistance to people making $52,000 or less who return to work after collecting unemployment benefits. The initiative is part of Arizona's decision to end the $300 enhanced unemployment benefit.
  • "The president deserves credit for identifying a lot of important problems that we need to discuss with the American Families Plan," Bradley said, specifically citing the affordability and accessibility of childcare. /* dynamic basic css */ .AR_36.ob-widget .ob-widget-items-container {margin:0;padding:0;} .AR_36.ob-widget .ob-widget-items-container .ob-clearfix {display:block;width:100%;float:none;clear:both;height:0px;line-height:0px;font-size:0px;} .AR_36.ob-widget .ob-widget-items-container.ob-multi-row {padding-top: 2%;} .AR_36.ob-widget .ob-dynamic-rec-container {position:relative;margin:0;padding;0;} .AR_36.ob-widget .ob-dynamic-rec-link, .AR_36.ob-widget .ob-dynamic-rec-link:hover {text-decoration:none;} .AR_36.ob-widget .ob-rec-image-container .ob-video-icon-container {position:absolute;left:0;height:50%;width:100%;text-align:center;top:25%;} .AR_36.ob-widget .ob-rec-image-container .ob-video-icon {display:inline-block;height:100%;float:none;opacity:0.7;transition: opacity 500ms;} .AR_36.ob-widget .ob-rec-image-container .ob-video-icon:hover {opacity:1;} .AR_36.ob-widget .ob-rec-image-container .ob-rec-rtb-image {background-color:white;background-position:center;background-repeat:no-repeat;width:100%;position:absolute;top:0;bottom:0;left:0;right:0;} .AR_36.ob-widget .ob-rec-image-container .ob-rec-rtb-image.ob-lazy-bgimg{background:none!important;}.AR_36.ob-widget .ob_what{direction:ltr;clear:both;padding:5px 10px 0px;} .AR_36 .ob_what a:after {content: "";vertical-align:super;;;background-image: url('https://widgets.outbrain.com/images/widgetIcons/achoice.svg');background-size:75% 75%;width:12px;height:12px;padding-left:4px;display:inline-block;background-repeat:no-repeat;background-position:right center;border-left:1px solid #999;} .AR_36.ob-widget .ob_what a{color:#757575;font-size:11px;font-family:arial;text-decoration: none;} .AR_36.ob-widget .ob_what.ob-hover:hover a{text-decoration: underline;} .AR_36.ob-widget .ob_amelia, .AR_36.ob-widget .ob_amelia_covid, .AR_36.ob-widget .ob_logo, .AR_36.ob-widget .ob_feed_logo, .AR_36.ob-widget .ob_sfeed_logo, .AR_36.ob-widget .ob_text_logo{vertical-align:baseline !important;display:inline-block;vertical-align:text-bottom;padding:0px 5px;box-sizing:content-box;-moz-box-sizing:content-box;-webkit-box-sizing:content-box;} .AR_36.ob-widget .ob_amelia{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_logo_16x16.png') no-repeat center top;width:16px;height:16px;margin-bottom:-2px;} .AR_36.ob-widget .ob_amelia_covid{width:auto;height:16px;max-height:16px;margin-bottom:-2px;} .AR_36.ob-widget .ob_logo{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_logo_67x12.png') no-repeat center top;width:67px;height:12px;} .AR_36.ob-widget .ob_text_logo{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_text_logo_67x22.png') no-repeat center top;width:67px;height:22px;} .AR_36.ob-widget .ob_feed_logo{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_feed_logo.png') no-repeat center top;width:86px;height:23px;} .AR_36.ob-widget .ob_sfeed_logo{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_smartFeedLogo.min.svg') no-repeat center top;width:140px;height:21px;} .AR_36.ob-widget .ob_sphere_logo{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_sphere.svg') no-repeat center top;width:93px;height:27px;vertical-align:baseline!important;display:inline-block;vertical-align:text-bottom;padding:0px 0px;box-sizing:content-box;-moz-box-sizing:content-box;-webkit-box-sizing:content-box;} @media only screen and (-webkit-min-device-pixel-ratio: 2),(min-resolution: 192dpi) { .AR_36.ob-widget .ob_amelia{background:url('https://widgets.outbrain.com/images/widgetIcons/ob_logo_16x16@2x.png') no-repeat center top;width:16px;height:16px;margin-bottom:-2px; 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Javier E

The Smartphone Have-Nots - NYTimes.com - 0 views

  • Much of what we consider the American way of life is rooted in the period of remarkably broad, shared economic growth, from around 1900 to about 1978. Back then, each generation of Americans did better than the one that preceded it. Even those who lived through the Depression made up what was lost. By the 1950s, America had entered an era that economists call the Great Compression, in which workers — through unions and Social Security, among other factors — captured a solid share of the economy’s growth.
  • there’s a lot of disagreement about what actually happened during these years. Was it a golden age in which the U.S. government guided an economy toward fairness? Or was it a period defined by high taxes (until the early ’60s, the top marginal tax rate was 90 percent) and bureaucratic meddling?
  • the Great Compression gave way to a Great Divergence. Since 1979, according to the nonpartisan Congressional Budget Office, the bottom 80 percent of American families had their share of the country’s income fall, while the top 20 percent had modest gains. Of course, the top 1 percent — and, more so, the top 0.1 percent — has seen income rise stratospherically. That tiny elite takes in nearly a quarter of the nation’s income and controls nearly half its wealth.
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  • The standard explanation of this unhinging, repeated in graduate-school classrooms and in advice to politicians, is technological change.
  • This explanation, known as skill-biased technical change, is so common that economists just call it S.B.T.C. They use it to explain why everyone from the extremely rich to the just-kind-of rich are doing so much better than everyone else.
  • For all their disagreements, Autor and Mishel are allies of sorts. Both are Democrats who have advised President Barack Obama, and both agree that rampant inequality can undermine democracy and economic growth by fostering despair among workers and corruption among the wealthy
  • The change came around 1978, Mishel said, when politicians from both parties began to think of America as a nation of consumers, not of workers.
  • each administration and Congress have made choices — expanding trade, deregulating finance and weakening welfare — that helped the rich and hurt everyone else. Inequality didn’t just happen, Mishel argued. The government created it.
  • Computers and the Internet, Mishel argued, are just new examples on the continuum and cannot explain a development like extreme inequality, which is so recent. So what happened?
  • David Autor, one of the country’s most celebrated labor economists, took the stage, fumbled for his own PowerPoint presentation and then explained that there was plenty of evidence showing that technological change explained a great deal about the rise of income inequality. Computers, Autor says, are fundamentally different. Conveyor belts and massive steel furnaces made blue-collar workers comparatively wealthier and hurt more highly skilled crafts­people, like blacksmiths and master carpenters, whose talents were disrupted by mass production. The computer revolution, however, displaced millions of workers from clerical and production occupations, forcing them to compete in lower-paying jobs in the retail, fast-food and home health sectors. Meanwhile, computers and the Internet disproportionately helped people like doctors, engineers and bankers in information-intensive jobs. Inequality was merely a side effect of the digital revolution, Autor said; it didn’t begin and end in Washington.
  • Levy suggested seeing how inequality has played out in other countries
  • In Germany, the average worker might make less than an American, but the government has established an impressive apprenticeship system to keep blue-collar workers’ skills competitive.
  • For decades, the Finnish government has offered free education all the way through college. It may have led to high taxes, but many believe it also turned a fairly poor fishing economy into a high-income, technological nation.
  • On the other hand, Greece, Spain and Portugal have so thoroughly protected their workers that they are increasingly unable to compete
  • Inequality has risen almost everywhere, which, Levy says, means that Autor is right that inequality is not just a result of American-government decisions. But the fact that inequality has risen unusually quickly in the United States suggests that government does have an impact
  • Still, economists certainly cannot tell us which policy is the right one. What do we value more: growth or fairness? That’s a value judgment. And for better or worse, it’s up to us.
Javier E

At Kimberly-Clark, 'Dead Wood' Workers Have Nowhere to Hide - WSJ - 0 views

  • One of the company’s goals now is “managing out dead wood,” aided by performance-management software that helps track and evaluate salaried workers’ progress and quickly expose laggards. Turnover is now about twice as high it was a decade ago, with approximately 10% of U.S. employees leaving annually, voluntarily or not, the company said.
  • Armed with personalized goals for employees and large quantities of data, Kimberly-Clark said it expects employees to keep improving—or else. “People can’t duck and hide in the same way they could in the past,” said Mr. Boston, who oversees talent management globally for the firm.
  • Coca-Cola Co. KO -0.41 % in June approved pushing its new performance-management process from the pilot stage to a global rollout. The new system encourages managers to conduct a monthly “reflection” on every direct report, answering five questions that include “Given his/her performance, would you assign this associate to increased scale, scope, and responsibilities?” and “Is this associate at risk for low performance?”
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  • The changes mirror what is happening inside many large companies, where “performance management” reflects the conviction that a sharpened focus on creating a high-performing workforce is a vital tool to generate revenue and profit.
  • Some academics say constant monitoring can feel intrusive and threatening to workers, especially those who value stability. But human-resources experts largely agree that the traditional review process is a waste of time and needs an overhaul.
  • The last recession led many employers to rethink the nearly automatic merit raises they had been doling out, forcing them to do a better job identifying high and low performers when giving raises and bonuses. Millennial workers, meanwhile, demand more feedback, more coaching and a stronger sense of their career path.
  • systems let managers track workers’ progress via dashboards that display their goals, accomplishments, attendance, peer feedback and other data.
  • Executives’ use of phrases like “performance culture” in conference calls with analysts and investors has doubled in the past five years, according to a review of transcripts in the Factiva news database. Firms that set goals and hold workers accountable “clearly outperform,” said Nicholas Bloom, an economist at Stanford University and co-author of a recent paper that used Census data to examine more than 32,000 U.S. manufacturing plants. He said they have faster growth, higher profitability and are less likely to go bankrupt.
  • Performance management shifts companies away from backward-looking, once-a-year reviews framed largely as compliance requirements—a paper trail for potential job cuts and salary decisions—to a process that is real-time, continuous and focused on helping people meet ambitious goals, or move out of the company faster.
  • Remaining employees are expected to work “smarter” and meet regularly raised targets. “We have to routinely shuffle the resources and say, what’s the most important thing we need to do today, this week, this month, to drive this objective?”
  • Using the Workday tool, Kimberly-Clark’s salaried employees set goals and report their progress, record accomplishments or mistakes, and solicit and send feedback
  • The system collects and archives feedback, which can be seen by employees’ managers. It also holds data on staffers’ strengths and development needs, their performance ratings and the risk they might leave the company.
  • “It’s certainly more challenging” for employees, said Mr. Herbert, the retired sales director. “If you really don’t have the mettle, you’re asked to get on with your life’s work [elsewhere].”
  • In 2015, Kimberly-Clark retained 95% of its top performers. Among the employees whose work was rated “unacceptable” or “inconsistent,” 44% left the company voluntarily or were let go. Ms. Gottung said she is “pretty pleased” that low-performer turnover has been rising.
  • Mr. Falk, the CEO, reviews 100 senior managers’ performance plans every year to make sure their goals are ambitious and reflect company priorities. Managers are instructed to begin every meeting with a story about how someone demonstrated one of the six behaviors the company promotes, such as “build trust” or “think customer.”
  • Regular “culture of accountability” sessions train employees in giving and receiving difficult feedback. When a colleague suggests improvements, “the proper response was ‘thank you for the feedback,’ not defensiveness,” Mr. Luettgen said. Employees also practice reinforcing positive behaviors, such as praising a colleague who had given up a weekend to solve a customer complaint.
  • More than 10,000 of Kimberly-Clark’s workers used the feedback feature in Workday in 2014, and about 25% of the comments were considered “constructive,” while the rest were positive or neutral, said Sandy Allred, a senior director on the talent management team. Staffers can send feedback to peers or workers above or below them
Javier E

Silicon Valley: Perks for Some Workers, Struggles for Parents - NYTimes.com - 0 views

  • The American workplace has always prized people who prioritize work over family, and European countries have long had more generous policies for working parents. But in the last two decades, that gap has widened significantly. Other developed countries have expanded benefits like paid parental leave and child care, while the United States has not.
  • for workers — most of whom have children, aging parents or both, and many of whom are single parents — the downsides can be enormous, whether they work in high finance or hourly labor. Many workers today — blue-collar and white-collar alike — believe they must choose between career and family.
  • The share of women in their 30s and 40s who work, which was once higher in the United States than in Canada, Australia, Japan and much of Europe, has fallen behind. The widening gap in policies is a major reason for the change,
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  • More broadly, some economists say, the lack of family-focused policies reflects the power imbalance between companies and workers in the American economy today. The share of economic output flowing to corporate profits has surged, while employee compensation has stagnated.
  • The technology industry is a striking example because it attracts some of the country’s smartest people, many of whom have far more bargaining power than most workers. Silicon Valley also has outsize cultural significance, as the face of American ingenuity and a magnet for global talent.
  • But it is also a place that often expects total commitment to work. That grows from the notion that in tech, unlike in other industries, companies become overnight successes, and believe their work is changing the world.
  • “People who give you millions of dollars for nothing but an idea at the very least expect your complete commitment to that idea,”
  • Start-ups are unlikely to have parental policies because they are more focused on growing as quickly as possible.
  • Though it’s off limits for interviewers to ask candidates whether they have children, tech companies use euphemisms to indicate that parents or older employees are not welcome, said a tech executive who would speak only anonymously. They say people are not a good “culture fit” and cannot “align on priorities” or make it in a “rapidly moving company.” The translation, he said: “People who are not exactly like us.”
  • “When people have kids, they have other priorities — and start-ups can be pretty brutal about not having other priorities,”
  • “Young people just have simpler lives,” Mark Zuckerberg, Facebook’s co-founder and chief executive, said in a talk to would-be entrepreneurs in 2007, when he was 23. “We may not own a car. We may not have family. Simplicity in life allows you to focus on what’s important.”
  • In some ways, an aging Silicon Valley is beginning to look more like the rest of corporate America, where most workers have families. The challenge is retaining the youthful optimism that they can do the impossible — while also showing their employees that working and having families is realistic.
Javier E

The Hard Truths of Trying to 'Save' the Rural Economy - The New York Times - 0 views

  • One thing seems clear to me: nobody — not experts or policymakers or people in these communities — seems to know quite how to pick rural America up.
  • States, municipalities and the federal government have spent billions to draw jobs and prosperity to stagnant rural areas. But they haven’t yet figured out how to hitch this vast swath of the country to the tech-heavy economy that is flourishing in America’s cities.
  • There are 1,888 counties in America in which more than half the population is rural, according to the Census Bureau, and they stretch from coast to coast.
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  • That’s more than agriculture, forestry, fishing and mining combined and second only to education, health care and social assistance, which includes teachers, doctors, nurses and social service counselors. Most of those jobs are government funded.
  • Overall, manufacturing employs about one in eight workers in the country’s 704 entirely rural counties.
  • After World War II, small town prosperity relied on its contribution to the industrial economy.
  • But factory jobs can no longer keep small-town America afloat. Even after a robust eight-year growth spell, there are fewer than 13 million workers in manufacturing across the entire economy
  • Robots and workers in China put together most of the manufactured goods that Americans buy
  • and the high-tech industries powering the economy today don’t have much need for the cheap labor that rural communities contributed to America’s industrial past. They mostly need highly educated workers. They find those most easily in big cities, not in small towns.
  • In a report published in November, Mark Muro, William Galston and Clara Hendrickson of the Brookings Institution laid out a portfolio of ideas to rescue the substantial swath of the country that they identify as “left behind.”
  • They identify critical shortages bedeviling declining communities: workers with digital skills, broadband connections, capital. And they have plans to address them: I.T. training and education initiatives, regulatory changes to boost lending to small businesses, incentives to invest in broadband.
  • even the authors concede that they may not be up to the task. “I don’t know if these ideas are going to work,” Mr. Galston acknowledged when I pressed him on the issue. “But it is worth making the effort.”
  • agglomeration, one of the most powerful forces shaping the American economy over the last three decades. Innovative companies choose to locate where other successful, innovative companies are.
  • That’s where they can find lots of highly skilled workers. The more densely packed these pools of talent are, the more workers can learn from each other and the more productive they become. This dynamic feeds on itself,
  • “We have a spatial reorganization of the economy,” said Mr. Muro. “We have an archipelago of superstars in an ocean of low-productivity sectors.”
  • what are the odds that, say, a small town like Amory, Miss., where 14 percent of adults have a bachelor’s degree and a quarter of its 2,500 workers work in small-scale manufacturing, have a chance to attract well-paid tech jobs?
  • Consider a recent Brookings Institution study by Benjamin Austin, Edward Glaeser and Lawrence Summers
  • After examining a range of potential policy interventions, they conclude that a targeted employment subsidy, such as the earned-income tax credit, is probably the most powerful tool available to revive employment. But they, too, are not sure it will work. “Our call for a wage subsidy is us saying, ‘We can’t figure this out, and we hope the private sector will,’ ”
  • Excluding these places, the United States is still left with 50 to 55 million people living in rural communities that no longer have much to offer them economically.
  • Instead of so-called place-based policies to revitalize small towns, why not help their residents take advantage of opportunities where the opportunities are
  • Geographic mobility hit a historical low in 2017, when only 11 percent of Americans picked up shop and moved — half the rate of 1951. One of the key reasons is that housing in the prosperous cities that offer the most opportunities has become too expensive.
  • Even if moving people might prove more efficient on paper than restoring places, many people — especially older people and the family members who care for them — may choose to remain in rural area
  • What’s more, the costs of rural poverty are looming over American society. Think of the opioid addiction taking over rural America, of the spike in crime, of the wasted human resources in places where only a third of adults hold a job.
  • if today’s polarized politics are noxious, what might they look like in a country perpetually divided between diverse, prosperous liberal cities and a largely white rural America in decline? As Mr. Galston warned: “Think through the political consequences of saying to a substantial portion of Americans, which is even more substantial in political terms, ‘We think you’re toast.’ ”
Javier E

Opinion | It's Not Technology That's Disrupting Our Jobs - The New York Times - 0 views

  • The history of labor shows that technology does not usually drive social change. On the contrary, social change is typically driven by decisions we make about how to organize our world. Only later does technology swoop in, accelerating and consolidating those changes.
  • This insight is crucial for anyone concerned about the insecurity and other shortcomings of the gig economy. For it reminds us that far from being an unavoidable consequence of technological progress, the nature of work always remains a matter of social choice. It is not a result of an algorithm; it is a collection of decisions by corporations and policymakers
  • In the industrious revolution, however, manufacturers gathered workers under one roof, where the labor could be divided and supervised. For the first time on a large scale, home life and work life were separated. People no longer controlled how they worked, and they received a wage instead of sharing directly in the profits of their efforts.
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  • This was a necessary precondition for the Industrial Revolution. While factory technology would consolidate this development, the creation of factory technology was possible only because people’s relationship to work had already changed. A power loom would have served no purpose for networks of farmers making cloth at home.
  • The same goes for today’s digital revolution. While often described as a second machine age, our current historical moment is better understood as a second industrious revolution. It has been underway for at least 40 years, encompassing the collapse, since the 1970s, of the relatively secure wage-work economy of the postwar era — and the rise of post-industrialism and the service economy.
  • Over these four decades we have seen an increase in the use of day laborers, office temps, management consultants, contract assemblers, adjunct professors, Blackwater mercenaries and every other kind of worker filing an I.R.S. form 1099. These jobs span the income ranks, but they share what all work seems to have in common in the post-1970s economy: They are temporary and insecure
  • In the last 10 years, 94 percent of net new jobs have appeared outside of traditional employment. Already approximately one-third of workers, and half of young workers, participate in this alternative world of work, either as a primary or a supplementary source of income.
  • services like Uber and online freelance markets like TaskRabbit were created to take advantage of an already independent work force; they are not creating it. Their technology is solving the business and consumer problems of an already insecure work world. Uber is a symptom, not a cause.
  • Today’s smartphone app is an easy way to hire a temp, but is it really that much easier than picking up a phone was in 1950?
  • shortly after World War II, a Milwaukee man named Elmer Winter founded Manpower, the first major temp agency, to supply emergency secretaries. But by the end of the ’50s, Winter had concluded that the future growth of Manpower was in replacing entire work forces
  • persuading companies to abandon how they operated was easier said than done, even though Winter could readily demonstrate that it would be cheaper. Few companies took him up on his offer. Higher profits were possible, but not as important, in the lingering wake of the Great Depression, as the moral compact between employer and employee
  • Big corporations had always had their critics, but no one before the ’70s would have thought that smaller companies would be better run than large ones. Large companies had resources, economies of scale, professional managers, lots of options. Yet terms like “small” and “efficient” and “flexible” would come to seem like synonyms. And with the rise of the lean corporation, work forces became expendable and jobs more precarious.
  • for the vast majority of workers, the “freedom” of the gig economy is just the freedom to be afraid. It is the severing of obligations between businesses and employees. It is the collapse of the protections that the people of the United States, in our laws and our customs, once fought hard to enshrine.
  • We can’t turn back the clock, but neither is job insecurity inevitable. Just as the postwar period managed to make industrialization benefit industrial workers, we need to create new norms, institutions and policies that make digitization benefit today’s workers. Pundits have offered many paths forward — “portable” benefits, universal basic income, worker reclassification — but regardless of the option, the important thing to remember is that we do have a choice.
Javier E

We're Testing the Wrong People - The Atlantic - 0 views

  • We have a shortage of COVID-19 tests, and we simultaneously have the highest number of confirmed cases in the world. Consequently, not every American who wants a test can get one. Not every health-care worker can get one. Not even every patient entering a hospital can get one.
  • To safely reopen closed businesses and revive American social life, we need to perform many more tests—and focus them on the people most likely to spread COVID-19, not sick patients.
  • according to the COVID Tracking Project, a data initiative launched by The Atlantic in March, the number of tests performed in the United States has plateaued at about 130,000 to 160,000 a day.
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  • COVID-19 testing has been an unmitigated failure in this country.
  • Rather than growing rapidly—as all experts think is absolutely necessary—the daily number of tests administered in some jurisdictions has even decreased. In New York, for instance, 10,241 tests were performed on April 6, but supply limits forced a huge drop a few days later to 25 total tests.
  • Quest Diagnostics, one of the two biggest firms that run tests, just furloughed 9 percent of its workforce. In addition, news reports suggest that, as of last week, 90 percent of the 15-minute tests developed by Abbott Laboratories are idle due to a lack of necessary reagents and qualified personnel
  • How many tests do we need in order to safely relax social-distancing measures, reopen nonessential businesses and schools, and allow large gatherings
  • we should be conducting a minimum of 500,000 tests a day.
  • Paul Romer, has called for the capacity to run 20 million to 30 million tests a day
  • Even this has been criticized as insufficient for the task of identifying enough of the asymptomatic spreaders to keep the pandemic in check.
  • Current guidelines from the Centers for Disease Control and Prevention give priority first to hospitalized patients and symptomatic health-care workers, then to high-risk patients
  • ptomatic individuals are not tested, even if they had contact with people who tested positive.
  • This is an enormous mistake. If we want to control the spread of COVID-19, the United States must adopt a new testing policy that prioritizes people who, although asymptomatic, may have the virus and infect many others.
  • We should target four groups. First, all health-care workers and other first responders who directly interact with many people
  • The fourth group would include all those who are planning to return to the workplace. These are precisely the individuals without symptoms whom the CDC recommends against testing.
  • The next group would be potential “super-spreaders”—asymptomatic individuals who could come into contact with many people. This third group would include people in large families and those who must interact with many vulnerable people, such as employees of long-term-care facilities
  • Second, workers who maintain our supply chains and crucial infrastructure, including grocery-store workers, police officers, public-transit workers, and sanitation personnel.
  • Not testing suspected COVID-19 patients will not harm those patients
  • Symptomatic patients should be tested only in the rare case where a positive test would meaningfully change what type of care is delivered.
  • To shift the focus of testing away from the sickest patients and toward the people most likely to spread the coronavirus, we will have to conduct millions of tests a day.
  • How can we close this gap between our needs and current capacity? We need a national strategy over the next 10 weeks, one that draws on the many strengths of our research system
  • We also need to encourage rapid adoption of the saliva test that now has an emergency approval from the FDA and expedite the approval of tests that require fewer reagents and staff.
  • Another promising pathway is to pool many tests and run them together. If a pooled sample tests negative, everyone in the pool is negative. If it is positive, the members of the pool can be tested individually
  • A more sophisticated version of this approach uses genetic “bar codes” that make it possible to trace back which of the many samples in a pool was the one that had RNA from the virus, without any retesting.
  • How can we get this testing capacity up and running? One idea is for Congress to award in the next stimulus bill, say, $150 million in unrestricted research funds to the first five universities that can process 10 million tests in a week or less
  • Another catalyst could be to subsidize businesses that agree to test all their employees as they return to work
  • When someone tests positive, officials should identify close contacts, find them, and test them. To do the tracing, we may need to hire 100,000 to 200,000 additional public-health workers.
  • This type of voluntary contact tracing is labor-intensive and requires some training, but it does not require highly specialized skills
  • If we adopt and follow a coherent plan, we can have a testing regime that keeps us safe without compromising our freedoms
aleija

Opinion | To Motivate Workers, Republican Governors Experiment With Pain - The New York... - 0 views

  • Only about 61 percent of the adults in Montana are employed at the moment. That leaves more than 300,000 who aren’t working. So I was surprised when the state’s Republican governor, Greg Gianforte, declared in May that Montana is experiencing a “labor shortage.”
  • Beginning June 27, the state will reduce weekly payments to unemployed workers by $300, cutting off a federal subsidy that was scheduled to run through early September.
  • This struck other Republican governors as such a good idea that 23 other states have since announced plans to follow Montana’s example. Together they intend to reject more than $26 billion in federal aid payments to 4.5 million unemployed workers — money that would have helped those workers and surely would have been spent mostly in those states.
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  • A lot of people are going to get hurt, and the pain will not be distributed randomly.
  • The legacy of the racism that infected so many of the New Deal’s achievements is particularly bitter for Black workers, who continue to live disproportionately in the states that provide the least aid to those who lose their jobs. During the last recession, only 23.8 percent of unemployed Black workers received benefits, compared to 33.2 percent of white workers, according to a 2012 analysis by the Urban Institute. Those who qualify for benefits also get less money. On average, the 11 former Confederate states replace just 40 percent of lost wages, compared to an average of 46 percent in the rest of the United States.
  • Although Americans generally agree that government should not act with racist intent, the unemployment safety net was designed with racist intent. And it continues to work in the way that it was designed, allowing Mississippi to badly serve Americans who live there.
  • For opponents of the federal supplements, any evidence the payments are allowing people to stay out of the job market or are driving up wages is seen as damning.
  • President Franklin Roosevelt and his lieutenants knew that a stronger safety net would drive up wages. They understood that helping those who weren’t working would help those who were working, too.
  • The average amount that workers got, relative to prior wages, has also been in steady decline.
rerobinson03

How Amazon Crushes Unions - The New York Times - 0 views

  • The notice was printed simply, in just two colors, and crammed with words. But for any worker who bothered to look closely, it was a remarkable declaration. Amazon listed 22 forms of behavior it said it would disavow, each beginning in capital letters: “WE WILL NOT.”
  • The arrival of the coronavirus last year changed that. It turned Amazon into an essential resource for millions stuck at home and redefined the company’s relationship with its warehouse workers. Like many service industry employees, they were vulnerable to the virus. As society locked down, they were also less able to simply move on if they had issues with the job.Now Amazon faces a union vote at a warehouse in Bessemer, Ala. — the largest and most viable U.S. labor challenge in its history.
  • If workers became anything less than docile, managers were told, it was a sign there could be union activity. Tipoffs included “hushed conversations” and “small group huddles breaking up in silence on the approach of the supervisor,” as well as increased complaints, growing aggressiveness and dawdling in the bathroom.
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  • The tactics that Amazon used in Chester are surfacing elsewhere. The retail workers union said Amazon was trying to surveil employees in Bessemer and even changed a traffic signal to prevent organizers from approaching warehouse workers as they left the site. Last month, the New York attorney general said in a lawsuit that Amazon had retaliated against employees who tried to protest its pandemic safety measures as inadequate.
  • The machinists union filed a complaint with the labor board in July 2015 alleging unfair labor practices by Amazon, including surveilling, threatening and “informing employees that it would be futile to vote for union representation.” Mr. Hough spent eight hours that summer giving his testimony. While labor activists and unions generally consider the board to be heavily tilted in favor of employers, union officials said a formal protest would at least show Chester technicians that someone was fighting for th
  • The pandemic helped change that, bringing safety issues at Amazon to the forefront. In a Feb. 16 suit against Amazon, the New York attorney general, Letitia James, said the company continued last year to track and discipline employees based on their productivity rates. That meant workers had limited time to protect themselves from the virus. The suit said Amazon retaliated against those who complained, sending a “chilling message” to all its workers. Amazon has denied the allegations.
anonymous

Cash, Breakfasts and Firings: An All-Out Push to Vaccinate Wary Medical Workers - The N... - 0 views

  • Anxious about taking a new vaccine and scarred by a history of being mistreated, many frontline workers at hospitals and nursing homes are balking at getting inoculated against Covid-19.
  • Those opposing forces have spawned an unusual situation: In addition to educating their workers about the benefits of the Covid-19 vaccines, a growing number of employers are dangling incentives like cash, extra time off and even Waffle House gift cards for those who get inoculated, while in at least a few cases saying they will fire those who refuse.
  • “For us, this was not a tough decision,” said Lynne Katzmann, Juniper’s chief executive. “Our goal is to do everything possible to protect our residents and our team members and their families.”
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  • “This is a population of people who have been historically ignored, abused and mistreated,” said Dr. Mike Wasserman, a geriatrician and former president of the California Association of Long Term Care Medicine. “It is laziness on the part of anyone to force these folks to take a vaccine. I believe that we need to be putting all of our energy into respecting, honoring and valuing the work they do and educating them on the benefits to them and the folks they take care of in getting vaccinated.”
  • At Jackson Health System in Miami, a survey of about 5,900 employees found that only half wanted to get a vaccine immediately, a hospital spokeswoman said.
  • Henry Ford Health System, which runs six hospitals in Michigan, said that as of Wednesday morning, about 22 percent of its 33,000 employees had declined to be vaccinated.
  • At Houston Methodist, a hospital system in Texas with 26,000 employees, workers who take the vaccine will be eligible for a $500 bonus. “Vaccination is not mandatory for our employees yet (but will be eventually),” Dr. Marc Boom, the hospital’s chief executive, wrote in an email to employees last month.
  • Both have been found to be safe and highly effective. So why are so many hospital and long-term care workers reluctant to get inoculated?
  • Underlying the hesitancy is a lack of trust in authorities — the federal government, politicians, even their employers — that have failed for the past year to get the virus under control.
  • “We are left behind in the dust — no one sticks up for us,”
  • Another concern about forcing workers to get vaccinated is that it could prompt hesitant employees to resign. That’s a particular worry in long-term care, where the pandemic has exacerbated a shortage of certified nursing assistants.
  • Gov. Mike DeWine of Ohio said last month that roughly 60 percent of nursing home staff members offered the vaccine in his state had declined it.
  • At Norton Healthcare, a health system in Louisville, Ky., workers who refuse the vaccine and then catch Covid-19 will generally no longer be able to take advantage of the paid medical leave that Norton has been offering to infected employees since early in the pandemic.
  • At Juniper — which has 20 senior living communities in New Jersey, Pennsylvania and Colorado — officials have tried to educate workers about the safety and benefits of Covid-19 vaccines, including hosting a webinar with a registered nurse who was enrolled in a clinical trial of the Moderna vaccine. Officials told staff last month that vaccines would be mandatory.
katherineharron

Fact check of the January Democratic debate - CNNPolitics - 0 views

  • "We are now spending twice as much per person on health care as do the people of any other country. That is insane," Sanders said.
  • This is an exaggeration. The US does not spend twice as much per capita as "any" other country on health care, though it does spend more than twice the average for the members of the Organisation for Economic Co-Operation and Development, a group of 36 countries with large market economies.
  • During an exchange about electability and whether a woman can win the presidency, Warren compared the political careers of the men on the debate stage with the women. "Can a woman beat Donald Trump?" Warren said. "Look at the men on this stage. Collectively, they have lost ten elections. The only people on this stage who have won every single election that they've been in are the women. Amy and me." Facts First: Warren has the facts right. She and Klobuchar are undefeated, and their male opponents have lost a total of 10 elections during their political careers. But Warren's talking point ignores the fact that Sanders, Biden and Buttigieg have also prevailed in more than two dozen elections since 1970.
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  • Sanders on wages of US childcare workersSanders said America's childcare system "is an embarrassment, it is unaffordable," claiming that childcare workers take home lower paychecks than people working at McDonald's. "Childcare workers are making wages lower than McDonald's workers," Sanders said. Facts First: While some childcare workers undoubtedly make less than some McDonald's workers, US government data from 2018 shows that childcare workers took home a higher mean hourly salary than fast food workers.
  • Biden claimed President Donald Trump "weakened" sanctions against Pyongyang in his pursuit of meetings with North Korea's Kim Jong Un. "The President showed up, met with him, gave him legitimacy, weakened the sanctions we have against him," Biden said. Facts First: Trump has not weakened the sanctions his administration has placed on North Korea to date, and has in fact ratcheted them up from the Obama administration. Although Trump did once spark mass confusion among his aides when he tweeted he was ordering the removal of sanctions on Pyongyang that had not yet been imposed or even announced.
  • In defending her plan to build on the Affordable Care Act instead of pushing for the more sweeping Medicare for All plans proposed by her rivals, Klobuchar pointed out that more people support Obamacare than approve of President Donald Trump.
  • Former Mayor Pete Buttigieg asserted during the debate on Tuesday that the Trump administration admitted that the Iran nuclear deal was working before pulling out of it. Buttigieg said, "By gutting the Iran nuclear deal, one that, by the way, the Trump administration itself admitted was working, certified that it was preventing progress toward a nuclear Iran, by gutting that, they have made the region more dangerous and set off the chain of events that we are now dealing with as it escalates even closer to the brink of outright war." Facts First: This is basically true. By repeatedly recertifying the nuclear deal and waiving sanctions against Tehran as a result, the Trump administration effectively acknowledged that Iran was abiding by the terms of the deal even as the President publicly criticized it.
  • Sanders repeated his claim that NAFTA and permanent normal trade relations with China have cost the US "some 4 million jobs." "I am sick and tired," said Sanders as he drew a contrast with former Vice President Joe Biden, pointing to large multinational corporations that he says have reaped the benefits.Facts First: This is likely an overestimate of the impact trade agreements can have on the country's employment.
  • Biden repeated his false claim that he opposed the war in Iraq from the moment the war began. Biden said he made a "mistake" in casting a 2002 vote, as a senator from Delaware, to give President George W. Bush the authority to go to war in Iraq. But he said he cast the vote because the Bush administration had said "they were just going to get inspectors" into Iraq to check for weapons of mass destruction -- and that, once Bush actually went to war, he became immediately opposed: "From that point on, I was in the position of making the case that it was a big, big mistake." Facts First: As fact checkers have repeatedly noted, Biden did not oppose the war in Iraq from the point it started in March 2003. He did begin calling his 2002 vote a "mistake" in 2005, two years into the war, but he was a vocal public supporter of the war in 2003 and 2004. And he made clear in 2002 and 2003, both before and after the war started, that he had known he was voting to authorize a possible war, not only to try to get inspectors into Iraq
  • Biden said that President Donald Trump "flat-out lied" when he claimed the US killed Iran's top military general because he was targeting four US embassies. "Quite frankly, I think he's flat-out lied about saying that the reason he went after -- the reason he made the strike was because our embassies were about to be bombed," Biden said. Facts First: Trump has yet to provide evidence backing up his claim that Iranian Gen. Qasem Soleimani was actively planning new attacks against four US embassies and top administration officials have struggled to defend the President's comments. But there is no way to know if Trump "flat-out lied" without seeing the underlying intelligence, which remains classified.
Javier E

Society Has Become More Unequal Since Milton Friedman's Day - The New York Times - 0 views

  • Fifty years ago, the economist Milton Friedman warned in his seminal essay, “The Social Responsibility of Business Is to Increase Its Profits,” that corporate executives would undermine the “basis of a free society” if they acted as if “business has a ‘social conscience’ and takes seriously its responsibilities for providing employment, eliminating discrimination, avoiding pollution and whatever else may be the watchwords of the contemporary crop of reformers.”
  • Instead of operating in a manner that treated all stakeholders fairly, Mr. Friedman argued, every corporation should seek solely to “increase its profits within the rules of the game.”
  • Not only that, Mr. Friedman sought to weaken the rules of the game by opposing basic civil rights legislation, unions, the minimum wage and other measures that protected workers, Black people, and the environment.
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  • Mr. Friedman’s cramped vision enhanced the power of the stock market and silenced the voice of workers, leading to profound inequality.
  • Mr. Friedman’s adherents gained influence in government and the business community. At the same time as Mr. Friedman’s adherents disparaged government’s role, they sought enormous tax subsidies, greatly reducing the share of taxes that corporations paid.
  • The promise of vital legislative protections against the excesses of unconstrained capitalism — including the National Labor Relations Act, minimum wage laws, the Clean Air Act, the Clean Water Act, antitrust regulations and consumer safety laws, to name a few — were undercut by two generations of ceaseless attack.
  • The concerns Mr. Friedman lampooned as obsessions of the “contemporary crop of reformers” in 1970 remain urgent problems
  • As would be expected when business leaders were told not to worry about “providing employment,” wages stagnated and inequality grew.
  • In the past 50 years, instead of gains for stockholders and top management tracking gains for workers — as characterized by the period when Mr. Friedman wrote — the returns of our capitalist system have become skewed toward the haves.
  • From 1948 to 1979, worker productivity grew by 108.1 percent and wages grew by 93.2 percent, with the stock market growing by 603 percent.
  • As would be expected when corporations were told not to worry about “avoiding pollution,” they used their muscle to undermine environmental protection and to conceal the dangers of climate change
  • As would be expected when corporate leaders were told not to worry about “eliminating discrimination,” corporate political spending was used to help seat elected officials who opposed measures designed to reduce racial disparities in education, pay and wealth, and to support gerrymandering and voter suppression efforts.
  • By contrast, from 1979 to 2018, worker productivity rose by 69.6 percent, but the wealth created by these productivity gains went predominately to executives and stockholders. Worker pay rose by only 11.6 percent during this period, while compensation for chief executives grew by an enormous 940 percent and the stock market grew by 2,200 percent.
  • the entire future of humanity is now at risk.
  • To reverse the Friedman paradigm, companies should embrace an affirmative duty to stakeholders and society. This requires tangible, publicly articulated goals, such as paying living wages to their workers, respecting workers’ right to join a union, promoting racial and gender inclusion and pay equity, enhancing safety protocols, and reducing carbon emissions
  • In doing so, corporate leaders will also set an example that institutional investors should be required to follow in their own investing and voting policies.
  • But adopting a stakeholder-centric governance model is only half the battle. Business leaders must support the restoration of fair rules of the game by government; respect the need for strong and resilient public institutions to govern a complex society; pay their fair share of taxes; and stop using corporate funds to distort our nation’s political process
  • Mr. Friedman wrote the influential essay at a time when economic security was strong, as the New Deal’s principles produced widespread prosperity, reduced poverty and helped Black Americans take their first real strides toward economic inclusion
  • Since then, the United States has gone backward in economic equality and security — a situation that the Covid-19 pandemic has exposed for all to see
  • America’s business community should heed these lessons of history and help restore the ideals of fairness, equality and economic common sense that showed that a capitalist economy could work for the many.
Javier E

Inside a Battle Over Race, Class and Power at Smith College - The New York Times - 0 views

  • NORTHAMPTON, Mass. — In midsummer of 2018, Oumou Kanoute, a Black student at Smith College, recounted a distressing American tale: She was eating lunch in a dorm lounge when a janitor and a campus police officer walked over and asked her what she was doing there.
  • The officer, who could have been carrying a “lethal weapon,” left her near “meltdown,” Ms. Kanoute wrote on Facebook, saying that this encounter continued a yearlong pattern of harassment at Smith.
  • “All I did was be Black,” Ms. Kanoute wrote. “It’s outrageous that some people question my being at Smith College, and my existence overall as a woman of color.”
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  • The college’s president, Kathleen McCartney, offered profuse apologies and put the janitor on paid leave. “This painful incident reminds us of the ongoing legacy of racism and bias,” the president wrote, “in which people of color are targeted while simply going about the business of their ordinary lives.”
  • a law firm hired by Smith College to investigate the episode found no persuasive evidence of bias. Ms. Kanoute was determined to have eaten in a deserted dorm that had been closed for the summer; the janitor had been encouraged to notify security if he saw unauthorized people there. The officer, like all campus police, was unarmed.
  • Smith College officials emphasized “reconciliation and healing” after the incident. In the months to come they announced a raft of anti-bias training for all staff, a revamped and more sensitive campus police force and the creation of dormitories — as demanded by Ms. Kanoute and her A.C.L.U. lawyer — set aside for Black students and other students of color.
  • But they did not offer any public apology or amends to the workers whose lives were gravely disrupted by the student’s accusation.
  • The atmosphere at Smith is gaining attention nationally, in part because a recently resigned employee of the school, Jodi Shaw, has attracted a fervent YouTube following by decrying what she sees as the college’s insistence that its white employees, through anti-bias training, accept the theory of structural racism.
  • The story highlights the tensions between a student’s deeply felt sense of personal truth and facts that are at odds with it.
  • Those tensions come at a time when few in the Smith community feel comfortable publicly questioning liberal orthodoxy on race and identity, and some professors worry the administration is too deferential to its increasingly emboldened students.
  • “My perception is that if you’re on the wrong side of issues of identity politics, you’re not just mistaken, you’re evil,” said James Miller, an economics professor at Smith College and a conservative.
  • Faculty members, however, pointed to a pattern that they say reflects the college’s growing timidity in the face of allegations from students, especially around the issue of race and ethnicity.
  • In 2016, students denounced faculty at Smith’s social work program as racist after some professors questioned whether admissions standards for the program had been lowered and this was affecting the quality of the field work. Dennis Miehls, one of the professors they decried, left the school not long after.
  • This is a tale of how race, class and power collided at the elite 145-year-old liberal arts college, where tuition, room and board top $78,000 a year and where the employees who keep the school running often come from working-class enclaves beyond the school’s elegant wrought iron gates
  • Student workers were not supposed to use the Tyler cafeteria, which was reserved for a summer camp program for young children. Jackie Blair, a veteran cafeteria employee, mentioned that to Ms. Kanoute when she saw her getting lunch there and then decided to drop it. Staff members dance carefully around rule enforcement for fear students will lodge complaints.
  • “Stop demanding that I admit to white privilege, and work on my so-called implicit bias as a condition of my continued employment,”
  • “We used to joke, don’t let a rich student report you, because if you do, you’re gone,” said Mark Patenaude, a janitor.
  • A well-known older campus security officer drove over to the dorm. He recognized Ms. Kanoute as a student and they had a brief and polite conversation, which she recorded. He apologized for bothering her and she spoke to him of her discomfort: “Stuff like this happens way too often, where people just feel, like, threatened.”
  • That night Ms. Kanoute wrote a Facebook post: “It’s outrageous that some people question my being at Smith, and my existence overall as a woman of color.”
  • Her two-paragraph post hit Smith College like an electric charge. President McCartney weighed in a day later. “I begin by offering the student involved my deepest apology that this incident occurred,” she wrote. “And to assure her that she belongs in all Smith places.”
  • Ms. McCartney did not speak to the accused employees and put the janitor on paid leave that day.
  • Ms. McCartney appeared intent on making no such missteps in 2018. In an interview, she said that Ms. Kanoute deserved an apology and swift action, even before the investigation was undertaken. “It was appropriate to apologize,” Ms. McCartney said. “She is living in a context of ‘living while Black’ incidents.”The school’s workers felt scapegoated.
  • Ms. Blair declined. “Why would I do this? This student called me a racist and I did nothing,” she said.
  • The repercussions spread. Three weeks after the incident at Tyler House, Ms. Blair, the cafeteria worker, received an email from a reporter at The Boston Globe asking her to comment on why she called security on Ms. Kanoute for “eating while Black.” That puzzled her; what did she have to do with this?
  • The food services director called the next morning. “Jackie,” he said, “you’re on Facebook.” She found that Ms. Kanoute had posted her photograph, name and email, along with that of Mr. Patenaude, a 21-year Smith employee and janitor.
  • “This is the racist person,” Ms. Kanoute wrote of Ms. Blair, adding that Mr. Patenaude too was guilty. (He in fact worked an early shift that day and had already gone home at the time of the incident.) Ms. Kanoute also lashed the Smith administration. “They’re essentially enabling racist, cowardly acts.”
  • Ms. Blair was born and raised and lives in Northampton with her husband, a mechanic, and makes about $40,000 a year. Within days of being accused by Ms. Kanoute, she said, she found notes in her mailbox and taped to her car window. “RACIST” read one. People called her at home. “You should be ashamed of yourself,” a caller said. “You don’t deserve to live,” said another.
  • Smith College put out a short statement noting that Ms. Blair had not placed the phone call to security but did not absolve her of broader responsibility. Ms. McCartney called her and briefly apologized. That apology was not made public.
  • By September, a chill had settled on the campus. Students walked out of autumn convocation in solidarity with Ms. Kanoute. The Black Student Association wrote to the president saying they “do not feel heard or understood. We feel betrayed and tokenized.”
  • Smith officials pressured Ms. Blair to go into mediation with Ms. Kanoute. “A core tenet of restorative justice,” Ms. McCartney wrote, “is to provide people with the opportunity for willing apology, forgiveness and reconciliation.”
  • “It is safe to say race is discussed far more often than class at Smith,” said Prof. Marc Lendler, who teaches American government at the college. “It’s a feature of elite academic institutions that faculty and students don’t recognize what it means to be elite.”
  • On Oct. 28, 2018, Ms. McCartney released a 35-page report from a law firm with a specialty in discrimination investigations. The report cleared Ms. Blair altogether and found no sufficient evidence of discrimination by anyone else involved, including the janitor who called campus police.
  • Still, Ms. McCartney said the report validated Ms. Kanoute’s lived experience, notably the fear she felt at the sight of the police officer. “I suspect many of you will conclude, as did I,” she wrote, “it is impossible to rule out the potential role of implicit racial bias.”
  • Ms. McCartney offered no public apology to the employees after the report was released. “We were gobsmacked — four people’s lives wrecked, two were employees of more than 35 years and no apology,” said Tracey Putnam Culver, a Smith graduate who recently retired from the college’s facilities management department. “How do you rationalize that?”
  • Rahsaan Hall, racial justice director for the A.C.L.U. of Massachusetts and Ms. Kanoute’s lawyer, cautioned against drawing too much from the investigative report, as subconscious bias is difficult to prove. Nor was he particularly sympathetic to the accused workers.
  • “It’s troubling that people are more offended by being called racist than by the actual racism in our society,” he said. “Allegations of being racist, even getting direct mailers in their mailbox, is not on par with the consequences of actual racism.”
  • Ms. Blair was reassigned to a different dormitory, as Ms. Kanoute lived in the one where she had labored for many years. Her first week in her new job, she said, a female student whispered to another: There goes the racist.
  • Anti-bias training began in earnest in the fall. Ms. Blair and other cafeteria and grounds workers found themselves being asked by consultants hired by Smith about their childhood and family assumptions about race, which many viewed as psychologically intrusive. Ms. Blair recalled growing silent and wanting to crawl inside herself.
  • The faculty are not required to undergo such training. Professor Lendler said in an interview that such training for working-class employees risks becoming a kind of psychological bullying. “My response would be, ‘Unless it relates to conditions of employment, it’s none of your business what I was like growing up or what I should be thinking of,’” he said.
  • In addition to the training sessions, the college has set up “White Accountability” groups where faculty and staff are encouraged to meet on Zoom and explore their biases, although faculty attendance has fallen off considerably.
  • The janitor who called campus security quietly returned to work after three months of paid leave and declined to be interviewed. The other janitor, Mr. Patenaude, who was not working at the time of the incident, left his job at Smith not long after Ms. Kanoute posted his photograph on social media, accusing him of “racist cowardly acts.”
  • “I was accused of being the racist,” Mr. Patenaude said. “To be honest, that just knocked me out. I’m a 58-year-old male, we’re supposed to be tough. But I suffered anxiety because of things in my past and this brought it to a whole ’nother level.”
  • He recalled going through one training session after another in race and intersectionality at Smith. He said it left workers cynical. “I don’t know if I believe in white privilege,” he said. “I believe in money privilege.”
  • This past autumn the university furloughed her and other workers, citing the coronavirus and the empty dorms. Ms. Blair applied for an hourly job with a local restaurant. The manager set up a Zoom interview, she said, and asked her: “‘Aren’t you the one involved in that incident?’”
  • “I was pissed,” she said. “I told her I didn’t do anything wrong, nothing. And she said, ‘Well, we’re all set.’”
sidneybelleroche

New York City mayor announces COVID-19 vaccine mandate for municipal workers - ABC News - 0 views

  • New York City Mayor Bill de Blasio on Wednesday announced a COVID-19 vaccine mandate for all municipal workers -- a move that is likely to escalate tensions with unions and employees that have been resistant.
  • Nearly 150,000 of the city's workers -- teachers and school staff -- had already been required to be vaccinated, but the new announcement, applying to about 160,500 workers, took the push for vaccination one step further.
  • About 69% of NYPD employees and 60% of FDNY workers are vaccinated and both the fire and police commissioners have endorsed the mandate.
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  • the police and fire departments, lag behind.
  • About 71% of employees have already have at least one shot of the vaccine. It’s up to 95% in the 11 city-run hospitals, and 96% in schools
  • The mandate is expected to include all employees from sanitation workers to office workers and will require some 161,000 workers to have their first dose by Oct. 29.
  • Those who receive their first dose at a city-run vaccination site will receive a $500 bonus
  • Municipal employees who do not get vaccinated will be placed on unpaid leave
Javier E

Robots and Robber Barons - NYTimes.com - 0 views

  • profits have surged as a share of national income, while wages and other labor compensation are down. The pie isn’t growing the way it should — but capital is doing fine by grabbing an ever-larger slice, at labor’s expense.
  • Increasingly, profits have been rising at the expense of workers in general, including workers with the skills that were supposed to lead to success in today’s economy.
  • there are two plausible explanations, both of which could be true to some extent. One is that technology has taken a turn that places labor at a disadvantage; the other is that we’re looking at the effects of a sharp increase in monopoly power. Think of these two stories as emphasizing robots on one side, robber barons on the other.
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  • similar stories are playing out in many fields, including services like translation and legal research. What’s striking about their examples is that many of the jobs being displaced are high-skill and high-wage; the downside of technology isn’t limited to menial workers.
  • can innovation and progress really hurt large numbers of workers, maybe even workers in general? I often encounter assertions that this can’t happen. But the truth is that it can, and serious economists have been aware of this possibility for almost two centuries. The early-19th-century economist David Ricardo is best known for the theory of comparative advantage, which makes the case for free trade; but the same 1817 book in which he presented that theory also included a chapter on how the new, capital-intensive technologies of the Industrial Revolution could actually make workers worse off, at least for a while — which modern scholarship suggests may indeed have happened for several decades.
  • increasing business concentration could be an important factor in stagnating demand for labor, as corporations use their growing monopoly power to raise prices without passing the gains on to their employees.
  • that shift is happening — and it has major implications. For example, there is a big, lavishly financed push to reduce corporate tax rates; is this really what we want to be doing at a time when profits are surging at workers’ expense? Or what about the push to reduce or eliminate inheritance taxes; if we’re moving back to a world in which financial capital, not skill or education, determines income, do we really want to make it even easier to inherit wealth?
Javier E

Why Trump Now? - The New York Times - 0 views

  • The economic forces driving this year’s nomination contests have been at work for decades. Why did the dam break now?
  • The share of the gross national product going to labor as opposed to the share going to capital fell from 68.8 percent in 1970 to 60.7 percent by 2013
  • the number of manufacturing jobs dropped by 36 percent, from 19.3 million in 1979 to 12.3 million in 2015, while the population increased by 43 percent, from 225 million to 321 million.
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  • The postwar boom, when measured by the purchasing power of the average paycheck, continued into the early 1970s and then abruptly stoppe
  • Starting in 2000, two related developments added to worsening conditions for the middle and working classes.
  • that year marked the end of net upward mobility. Before 2000, the size of both the lower and middle classes had shrunk, while the percentage of households with inflation-adjusted incomes of $100,000 or more grew. Americans were moving up the ladder.
  • After 2000, the middle class continued to shrink, but so did the percentage of households making $100,000 or more. The only group to grow larger after 2000 was households with incomes of $35,000 or less. Americans were moving down the ladder.
  • The second adverse trend is that trade with China, which shot up after China’s entry into the World Trade Organization in December 2001, imposed far larger costs on American workers than most economists anticipated
  • If one had to project the impact of China’s momentous economic reform for the U.S. labor market with nothing to go on other than a standard undergraduate economics textbook, one would predict large movements of workers between U.S. tradable industries (say, from apparel and furniture to pharmaceuticals and jet aircraft), limited reallocation of jobs from tradables to non-tradables, and no net impacts on U.S. aggregate employment. The reality of adjustment to the China shock has been far different. Employment has certainly fallen in U.S. industries most exposed to import competition. But so too has overall employment in local labor markets in which these industries were concentrated. Offsetting employment gains either in export-oriented tradables or in non-tradables have, for the most part, failed to materialize.
  • High wage workers find it relatively easy to adjust and “do not experience an earnings loss,” argue Autor and his colleagues. Low wage workers, in contrast, “suffer large differential earnings loss, as they obtain lower earnings per year both while working at the initial firm and after relocating to new employers.”
  • The recipe for populism seems pretty clear: take a surge in manufacturing imports from China and continued automation in the US workplace and add a tepid macroeconomy. The result is a combustible stew sure to sour the stomach of party leaders nationwide.
  • The stew, to continue Hanson’s metaphor, began to boil over with the cataclysmic financial collapse in September 2008, which many people left and right felt was caused by reckless financial engineering on Wall Street. The collapse and the destruction it left in its wake was, without question, the most important economic and political event in recent years.
  • “It was the financial crisis, what it revealed about government-Wall Street links, and the fumbling of the response to it that put the nail in the coffin of trust in government,
  • , TARP insulated the very institutions and executives that caused the collapse and the disastrous recession that followed.
  • The widespread sense that all the elites in Washington and New York conspired to bail out the miscreants who caused the disaster and then gave them bonuses, while the rest of us lost our houses or saw their value, the biggest and often only asset of Americans, plummet, lost our jobs or saw them frozen and stagnant, and then saw gaping inequality grow even more, is just palpable.
  • A Bloomberg poll last September found that 78 percent of voters would like to see Citizens United overturned, and this view held across a range of partisan loyalties: Republicans at 80 percent; Democrats at 83; and independents at 71.
  • On Jan. 10, 2010, the Supreme Court granted those in upper income brackets additional privileges in its Citizens United decision (buttressed by subsequent lower court rulings) that allowed wealthy individuals, corporations and unions to make unlimited political contributions. By opening the door to the creation of SuperPACs and giving Wall Street and other major financial sectors new ways to buy political outcomes, the courts gave the impression, to say the least, that they favored establishment interests over those of the less well off.
  • . Obamacare, a program many in the white middle and working classes perceived as reducing their own medical care in order to provide health coverage to the disproportionately minority poor.
  • By the midterm elections of 2010, voter dissatisfaction among whites found expression in the Tea Party movement, which produced the sweeping defeat of Democrats in competitive congressional districts as well as of moderate and center-right Republicans in primary contests.Voter anger was directed at two targets — the “undeserving rich” and the “undeserving poor.”
  • To many of those who cast their ballots in anger in 2010 and 2014, however, it appeared that their votes had not changed anything. Obamacare stayed in place, Wall Street and corporate America grew richer, while the average worker was stuck going nowhere.
  • Already disillusioned with the Democratic Party, these white voters became convinced that the mainstream of the Republican Party had failed them, not only on economic issues, but on cultural matters as well.
  • A September 2015 Ispos survey asked voters if they agreed or disagreed with the statement “More and more, I don’t identify with what America has become.” 72 percent of surveyed Republicans concurred, compared to 58 percent of independents and 45 percent of Democrats. Two thirds of Republicans, 62 percent, agreed with the statement “These days I feel like a stranger in my own country,” compared to 53 percent of independents and 37 percent of Democrats. Here is one place where Trump’s scathing dismissal of political correctness found fertile ground.
  • If he prevails, a constituency that could force politicians to confront the problems of the working and middle class will waste its energies on a candidate incompetent to improve the lives of the credulous men and women lining up to support him.
  • In these circumstances, Bernstein wrote, the logic supporting the traditional Republican Party fell apart:The core theme of Republican establishment lore has been to demonize not unregulated finance or trade or inequality, but ‘the other’ – e.g., the immigrant or minority taking your job and claiming unneeded government support. And yet, none of their trickle down, deregulatory agenda helped ameliorate the problem at all. So they lost control.
  • This election has demonstrated that there is no Republican Party organization, per se. The Republican Party exists as an array of allied groups, incumbent office holders, media organizations, and funding vehicles (e.g., SuperPACs, 501(c)(4)s, and the like). When people ask why the “establishment” or “the party” has not done anything to stop Trump, it is not exactly clear who they mean.
  • The tragedy of the 2016 campaign is that Trump has mobilized a constituency with legitimate grievances on a fool’s errand.If he is shoved out of the field somehow, his supporters will remain bitter and enraged, convinced that a self-serving and malign elite defeated their leader.
  • the consequences of disillusionment with old guard Republicans:The intersection of inequality driven by real wage/income stagnation and the fact that the folks perceived to have blown the damn economy up not only recovered first, but got government assistance in the form of bailouts to do so. If you’re in the anxious middle and that doesn’t deeply piss you off, you’re an unusually forgiving person.
  • Missing in your narrative were 2 other factors that contributed to American anger and the turn to Mr. Trump. Those two factors are: the group of very wealthy American's who were convened by the Koch brothers to pool their resources to destroy President Obama and the Congressional Democrats and moderate Republicans, e.g. Senator Lugar.
  • were suffering from a major contraction and the drying up of credit & jobs and the President unwisely & wrongly appointed the Simpson-Bowles commission to rein in the debt. Remember Harvard's Rogoff & Reinhart who came up with that Debt to GDP ratio? And the rally of our elites & Pete Peterson et al that Deficits were the problem, when the truth, based on history, was just the opposite.
  • The 2nd factor which can also be attributed to the White House as well as Democrats in the Congress who joined Republicans in misdiagnosing the problem as deficits and debt.
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