The Upside Down Economy

by Harold Meyerson

Harold Meyerson

One aspect that defines our current economy is that things are happening that shouldn’t be happening. I don’t mean that things are happening that are illegal or immoral. (Well, some of them are immoral, but that’s not what I mean.) Rather, things are happening that defy economic logic—a slippery term that really means, the economic patterns of roughly the past half-century.

The first such logic-defying thing is that corporate profits are soaring even as corporate revenues limp along. The quarterly reports of S&P 500 corporations for the first three months of 2013 are almost entirely in now, and they show profits rising by more than 5 percent even while revenues have risen by less than 1 percent. Seventy percent of these companies—the largest publicly traded U.S. firms—exceeded the analysts’ profit projections. On the other hand, 60 percent came in under the projections for their sales. 

What Has Capitalism Done for Us Lately ?

Bill Moyers and Company

 

English: Picture of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation (FDIC) (Photo credit: Wikipedia)

See this video.  It includes good explanations of cooperative work sites and ownership, such as Sacramento Municipal Utility District ( electric power).

 

http://billmoyers.com/episode/full-show-what-has-capitalism-done-for-us-lately/

 

It includes Sheila Bair, formerly of the Federal Deposit Insurance Corporation.  A Republican. Critic of the bail outs. Author of, Bull by the Horns: Fighting to Save Main Street from Wall Street.   She discusses the issues of banking crisis and why we have not reformed our reformed our banks.

A New Era for Worker Ownership, 5 Years in the Making

The New Era Windows Cooperative opens its doors (and windows) for business

by Kari Lydersen
Reprinted with permission
from In These Times

(May 9, 2013) The workers know launching and running a company won’t be easy, but given their deep knowledge of the industry and their personal investment in the project, they are confident they can do it.

Today, in a revamped Campbell’s Soup building in an industrial and residential section of southwest Chicago, the New Era Windows Cooperative will celebrate the grand opening of its new factory.

Becoming a worker-owned cooperative is the latest chapter in the saga of the workers of Republic Windows and Doors, who gained the nation’s attention by occupying their factory—twice—and became a symbol of resistance in the face of corporate corruption and the economic crisis.

The journey to this moment has been a long and rocky one. Right before the December 2008 holidays, with the economy plunging into crisis, unemployment skyrocketing and a cold snowy winter setting in, 300-some workers at the Republic Windows and Doors factory on Goose Island in the Chicago River learned they were about to lose their jobs. Owner Richard Gillman announced that the factory would be closed, leaving workers without the unused vacation pay and severance pay legally due them. And their health insurance would be cut off promptly.

Change the draft immigration bill

As the Senate Judiciary Committee continues the “mark up” process on S.744, the Border Security, Economic Opportunity and Immigration Modernization Act, the National Network for Immigrant and Refugee Rights asks individuals and groups to join them in signing an Open Letter to the Committee to adhere to the principles of human rights, labor rights, fairness and justice.

They ask for changes in the following.

1. Substantially improve the path to citizenship.
2. Access to a green card should not be dependent upon a “secure border”.
3. The filing fees are too high.
4. Maintain the core commitment to family reunification as a criteria.
5. Continue the Diversity Visa program.
6. End the prioritization of increase in border enforcement and militarization of the border.
7. End the current immigration detention system.
8. Ensure access to full labor protections and labor rights.
9. End the temporary worker programs as soon as possible.

10. End the enhanced deportation programs.

DSA is a member of the National Network.

If you would like to endorse as an organization, please click here.

 

 

Even in Bankruptcy, Airlines Cash In

by Carl Finamore

Carl Finamore

Only a few years ago there were six major US airlines. All of them went bankrupt and all of them received financial relief off the backs of employees amounting to billions of dollars. Only a few years ago there were six major US airlines. All of them went bankrupt and all of them received financial relief off the backs of employees amounting to billions of dollars.

As it turns out, the funds generated in bankruptcy courts resulted in a buying spree and an accrual of additional assets. Since 2008, for example, there have been three mega-mergers so that, now, there are only three major US airlines, four, if you include low-cost carrier Southwest Airlines.

Several significant mergers were actually consummated while still in bankruptcy such as between Delta and Northwest, so, there is certainly nothing new when another bankrupt airline, American Airlines, announced in February its plans to merge with US Airways.

The $11 billion deal would create the world’s largest airline. Again, nothing new, as American pays for its expansion with more employee concessions – wages have already been cut and pensions are now frozen.

We Decide How to Share Gains

by Stan Sorscher

Stan Sorscher

Last summer, a respected policy expert from the Brookings Institution spoke at a large meeting. He introduced himself, saying that he works with a lot of brilliant economists who can’t understand why the recovery is so slow.

Nobel laureate economist Paul Krugman has an explanation, “…corporations use their growing monopoly power to raise prices without passing the gains on to their employees.”

Whoa! There’s a shocker. Corporate profits are at historic highs, and workers are not sharing gains.

Economists have an inside joke that says a great deal about our problem: “The winners could compensate the losers.” Of course, the whole point of winning is to win! Winners are perfectly content to keep everything, and share nothing with workers, families and communities.

Our slow recovery is the result of policy choices we have made as a country.

Defending Unions on May Day

Rep. Ellison Introduces Robin Hood Tax–Supporters Will Rally on Saturday

by Kenneth Quinnell

Rep.Keith Ellison

On Wednesday, Rep. Keith Ellison (D-Minn.) introduced the Inclusive Prosperity Act (H.R. 1579), which would create a financial transaction tax that would raise billions of dollars in new revenue. The tax is similar to one that existed in the United States until 1966 and that is levied in 40 countries around the world. Another 11 countries are currently considering joining them.

‘This is a huge day,’ Rep. Ellison announced at a press conference within view of the Capitol. ‘This is a small tax on Wall Street transactions to meet the needs of our nation. Didn’t America step up to the plate when Wall Street needed help? It will reduce harmful market speculation. Gambling on Wall Street does not benefit our society.’

Supporters of the bill will rally on April 20 in Washington, D.C.

[To get directions. RSVP and share with others on the Robin Hood Tax USA Facebook event page If you can't attend the rally and the march, you can still show your support for the Robin Hood Tax on Facebook by using the," I support the Robin Hood Tax" image as your profile picture.--Talking Union]

Kenneth Quinnell is a blogger for the AFL-CIO Now blog, where this post originally appeared.

IMF labour market prescriptions condemn workers to worse jobs and more inequality

New report shatters economic myths behind labour reforms.

 ITUC OnLine

s  (April17) IMF labour market advice, as part of the Troika, undermines democracy and risks economic dictatorship across Europe and beyond warned the International Trade Union Confederation (ITUC), and will create more divisions and social unrest, without producing any economic benefits.

The ITUC Frontlines 2013 report, “ Ideology without economic evidence: IMF attacks on collective bargaining” is  released on the eve of the IMF Spring meetings as extreme levels of unemployment and rising inequality continue to dominate the global economy.

Sharan Burrow, ITUC General  Secretary  said the new report provides empirical evidence demonstrating there is no sound economic case for attacking workers’ rights, with its devastating impact on families, communities and economies.

New PayWatch Spotlights CEO Pay, Fix the Debt Hypocrisy, Golden Nest Eggs and More

by Mike Hall

Did you know that the CEOs of the Campaign to Fix the Debt, the corporate front group that wants to cut Social Security and Medicare and lower corporate taxes, have parked more than $418 billion of untaxed corporate profits overseas? Overall it is estimated that U.S. corporations have as much as $1.9 trillion sheltered overseas. That would make a nice down payment on fixing the debt.

You can read about “Fix the Debt” and more in the 2013 edition of the AFL-CIO’s Executive PayWatch launched today. PayWatch not only shines a light on Fix the Debt hypocrisy, but it also explores the huge wage gap between CEO pay and the average U.S. worker. PayWatch started in 1997.

Visit www.paywatch.org.

AFL-CIO President Richard Trumka notes that since 1982, the CEO versus worker pay gap has jumped from 42 times more than the average rank-and-file worker to 2012’s record 354 times greater. In real dollars, a CEO of a Standard and Poor’s 500 Index company averaged $12.3 million a year in total compensation, while the average rank-and-file worker earned $36,654. Says Trumka:

Runaway CEO pay is fueling economic inequality in the U.S. and undermining our shared prosperity. In addition, high levels of CEO pay can encourage excessive risk by CEOs, which hurts the long-term prospects of the companies they run.