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Yes, $15 an Hour by William Spriggs

Yes, $15 an Hour
By William Spriggs

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(TriceEdneyWire.com) - On Aug. 29, across the country, thousands of workers in low-paying jobs stood up to demand $15 an hour. Most were at fast-food restaurants. There are many people who support the need for these workers to be paid more. They understand the unfairness of multinational corporations profiting on the wages of low-wage work. And, this past Monday on Labor Day, they probably reflected on the value of work and honoring the people who literally built this country.

To many people it is almost obscene that the CEO of McDonald's, for instance, gets a compensation package worth $13.8 million a year; a giant raise from his 2011 pay of $4.1 million, a pay level that equals 915 full-time, full-year minimum wage workers at McDonald's. If pay truly reflected the productivity of workers, then presumably if 915 McDonald's workers went on strike, he would be able to fill in and do their work.

Still, understanding that the price of the hamburger was probably much more affected by giving the CEO a $9 million raise than the meager demands of the people serving them their food, many people scratched their heads at the notion the workers' wages could be set at $15 an hour; a level they now equate with more "skilled" workers. This reflects the breakdown in our nation's understanding of the value of work and the productivity of America's workers. So, it is important to give an understanding of $15 an hour and why it is necessary for us to embrace this movement.

The day before the strike, Aug. 28, the nation paused to recall the 50th anniversary of the March for Jobs and Freedom in Washington. It was a big celebration that masked the divisions of the country at that time and surrounded the movement to gain dignity for Americans held in the shadows from the light of America's middle-class freedoms. We will, no doubt, see smaller notice given to the bombing that followed weeks later in the Rev. Fred Shuttleworth's church in Birmingham that killed four little girls. Nor should we should forget the final endgame of Dr. Martin Luther King Jr.'s journey for justice five years after the march, when he was assassinated in Memphis continuing his struggle for dignity and freedom for sanitation workers.

In 1966, in line with the demands of the March for Jobs and Freedom, the minimum wage was increased and its coverage extended to include certain state and local government employees; those who worked in hospitals, nursing homes and schools. It did not include sanitation workers. But, it did boost the minimum wage to $1.60 an hour in 1968. The Center for Economic Research and Policy has compared that minimum wage to changes in wages, prices and productivity to put it in context. Adjusting for inflation, today that would be $10.52 an hour.

In 1968, 40 percent of the sanitation workers in Memphis qualified for welfare payments because their wages were too low to pull their families out of poverty. Reflecting on that, Dr. King was moved to give the ultimate Labor Day sentiment:

If you will judge anything here in this struggle, you're commanding that this city will respect the dignity of labor. So often we overlook the worth and significance of those who are not in professional jobs, or those who are not in the so-called big jobs. But let me say to you tonight, that whenever you are engaged in work that serves humanity, and is for the building of humanity, it has dignity, and it has worth. One day our society must come to see this. One day our society will come to respect the sanitation worker if it is to survive....

You are doing another thing. You are reminding, not only Memphis, but the nation that it is a crime for people to live in this rich nation and receive starvation wages....

Do you know that most of the poor people in our country are working every day? They are making wages so low that they cannot begin to function in the mainstream of the economic life of our nation. These are facts which must be seen. And it is criminal to have people working on a full-time basis and a full-time job getting part-time income.

We have, as a nation, moved a long distance from those words. Instead, we have come to accept low wages, and there are many who argue that if we are concerned with the poor, then we should simply subsidize low wages; in short, put working people on welfare as was the case in Memphis in 1968. They want to ignore Dr. King and undo the success of that strike. A strike that pulled together the labor movement, the NAACP, Dr. King's Southern Christian Leadership Conference and the Memphis black community; much as the coming AFL-CIO Convention in Los Angeles will bring together today's allies of decent work.

But subsidizing low wages is inefficient. It actually subsidizes what low-wage companies produce. When employers pay wages too low to support workers, it is society that then must pay for the Supplemental Nutrition Assistance Program so the workers can eat, and housing assistance so they have a roof over their heads, child care block grants so someone can watch over their children, Medicaid so they have access to health care and grant them tax relief with Earned Income Tax Credits to prevent the government from further impoverishing them. That means we are subsidizing many billion-dollar multinational corporations; a weird form of corporate welfare.

General subsidies are inefficient, because it means we will artificially lower the price of those goods, making them cheap to rich and poor alike. It lacks targeting. Further, it can lead to favoring low-wage industries that may not produce outcomes society values so high. Many people believe that the American diet of fatty fast foods has made us a nation that is obese and is contributing to new projections that our children will lead shorter - not longer - lives. If there are goods we think would be priced too high for segments of the economy if workers' earned decent wages, then the most efficient thing is to subsidize those individuals who would be priced out of the market; as might be the decision of society with child care or the care of the elderly, two industries where the median wage is less than $10 an hour.

It makes far more sense that these huge corporations pay wages that reflect the productivity of their workers. Since the late 1970s, America has gone on a crooked path. The productivity of America's workers has gone up, but the pay of America's workers has gone flat. That difference, between what Americans can produce and what Americans earn creates a gaping problem: if people can't buy what is being made, then increasing their productivity can only lead to lower levels of employment. From 1980 to 2007, the solution was to let workers borrow enough money to make up for that gap, so demand would meet the rise in productivity and we could keep employment up.

Obviously, such a scheme falls under Herb Stein's Law, "If something cannot go on forever, it will stop." And in 2008, the notion that household debt could rise, with incomes staying flat, to fill the gap came to a stop. Now, we must return to paying workers for their productivity to fill the gap between increased productivity and earnings.

So, reminded of the moral call from Dr. King, and the basic economics of ECON 101, we come to the current situation. Even if we believed that low-wage workers have not kept up with average productivity advances-note that a McDonald's worker today produces far more sales per square foot and hour than a McDonald's worker in 1968-and we set the minimum wage to reflect only half the gain in average productivity since 1968, then today the minimum wage would have to be $15.34 an hour. So the worker serving you food at that wage would not themselves need help with food stamps to buy food. And, more importantly, we would be moving back toward paying workers so they can afford to buy the goods coming from increased productivity, rather than getting rid of workers when productivity goes up for the lack of buyers.

There should be a related clause to Stein's law that "if something is common sense, eventually it will be common."

Follow Spriggs on Twitter: @WSpriggs.

Contact: Amaya Smith-Tune Acting Director, Media Outreach AFL-CIO 202-637-5142.

What Does Limited Action Mean? by Julianne Malveaux

Sept. 8, 2013

What Does Limited Action Mean?
By Julianne Malveaux

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(TriceEdneyWire.com) - President Barack Obama stepped on a big limb when he threatened “limited action” against Syria because the country allegedly used chemical weapons against their own people.  There are international bans against the use of chemical weapons, with Syria one of few countries not supporting the ban. 

Chemical weapons allegedly killed more than 1400 Syrians, and the ongoing civil war may have killed as many as 100,000.  President Obama announced his willingness to act on Syria’s domestic chemical intrusion before Labor Day, but he has now backpedaled and asked for Congressional input in his decision.  What will he do if Congress says no?  Will he face the international community conceding that he has less power than he thought, or will he go ahead and take military action without congressional approval?

Reportedly, US troops in the Middle East were ready to follow the orders of the Commander-in-Chief before they got orders to slow down any action.  Perhaps President Obama is finally listening to the sentiment of the American people, who, according to several polls, do not support action against Syria.  Congresswoman Barbara Lee (D-CA) and dozens of other members of Congress sent the President a letter urging debate on any military action against Syria.  Does the urgency of a strike against Syria recede over time?

Have we learned the lessons of Iran, Afghanistan, and, yes, Vietnam?  In the last case, “simple” military action led us into a war that lasted for nearly a decade, and the loss of tens of thousands of lives.  The “end” of that war was hardly decisive, with a withdrawal that didn’t so much save the day as salvage the our nation’s bruised ego.  If allegations against Syria are true, they have clearly crossed a line.  Still, it is not clear that unilateral action from the United States is the solution.  While the United Nations is not always as effective as it might be, I’d prefer United Nations concurrence to United States leadership in this matter.

From Iraq, we must remember that verification of the use of chemical weapons is key to any action.  I’ll never forget Secretary of State Colin Powell holding up a small container and saying, “this could be anthrax”.  Turns out, it wasn’t.  Based on that vivid display, we stepped up our action against Iraq, and a decade later we are still there.  General Powell said that if we broke it, we have to fix it.  We’ve not fixed it -- we are withdrawing, and billions of dollars and thousands of lives later, the situation is almost as murky as it was when we entered that country.

What will we do if Syria chooses to respond to our “limited” military action? Action and counteraction are the first steps to war.  We aren’t ready for that!  We’ve got existing military commitments, and an already-challenged budget, something not often mentioned in the face of this impending crisis.  Military experts say Syrian action could cost “about” $100 million.  Depending on escalation, we could easily end up in billion-dollar territory.

Meanwhile Congress and the President are on a budget brink.  Government could actually shut down at the end of the fiscal year unless unlikely compromises are made.  Will President Obama be forced to offer budget concessions in order to get Republican votes to support limited action against Syria?  If he does, what implications will that have on the domestic budget, especially in the face of budget austerity?  Will the money to cover a Syria strike come from the already-cut food stamps program, from sparsely funded education programs, from already-embattled health care?

President Bill Clinton reportedly supports military action against Syria, and regrets that the United States did not get involved in the massacre in Rwanda that claimed nearly a million lives.  With Rwanda, though, a bipartisan group of legislators pushed Clinton to take the case against Rwanda to the United Nations and he did not.  President Obama has not suggested United Nations cooperation but instead insisted that it is time to take action.

Where is the peace movement?  Are they shying off their traditional anti-war stance because President Obama, not President Bush, is in the White House?  Once, you could count on groups like Code Pink to lift their voices against military action.  Now their silence speaks volumes.

There are alternatives to “limited military action” in Syria; those alternatives have yet to be explored.  We shouldn’t involve ourselves in what might be a multi-billion dollar action just so President Obama can sell wolf tickets (or bragging rights) and count on Congress to cash them.

Julianne Malveaux is a DC based economist and author.

Digital Equality: A key Economic Opportunity and Civil Rights Issue for the 21st Century by Marc H. Morial

Sept. 8, 2013
To Be Equal 

Digital Equality: A key Economic Opportunity and Civil Rights Issue for the 21st Century
 By Marc H. Morial

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(TriceEdneyWire.com)The question of equality was a catalyst for the creation of this great Republic. The need for new ideas and approaches led our forefathers to be innovative. One hundred and fifty years ago, President Lincoln employed such thinking in the writing of the Emancipation Proclamation that changed the course of history and the destiny of millions of new Americans. Fifty years ago, a coalition of civil rights, social justice and labor leaders organized the 1963 March on Washington for Jobs and Freedom, which had as its core purpose equity in jobs, education, and justice for all Americans.

In the wake of the recent Supreme Court decisions on voting rights and affirmative action and as we bear witness to continued judicial inequities, the time is ripe with possibility for communities of color to maximize the opportunities for advancement made possible through innovation.

Today, broadband technology underpins much of our society and supports many of our interactions, personal as well as commercial. Given the foundational importance of broadband, the need for digital equality is becoming a necessity for most Americans.

Access to quality Internet services, the right connectivity, devices and applications are necessary tools for educational, professional and economic advancement in this day and age. For underserved and low-income communities, broadband technology creates opportunities that were not available just a few years ago. It can improve the quality of life for communities across the country. In many ways, access to this technology unleashes a community's potential in the 21st century.

African-Americans in particular can use broadband technology to close education and health care gaps. Online learning can do much to eliminate what Jonathan Kozol famously labeled the "savage inequalities" in education. In addition, telemedicine holds great promise for enabling affordable, long-term monitoring and care for heart disease, diabetes, and stroke - afflictions disproportionately affecting millions of African Americans of all ages.

Beyond education and health care, broadband facilitates global connectivity and can open doors and tear down boundaries for all of us. Broadband can help many to dream again - to dream of being a business owner, of finishing school, of pursuing non-traditional career paths. The list goes on.

With all of this to gain, the question becomes, how can the nation secure universal, affordable, high-speed broadband?

Let's begin with today's outdated regulations and the need to modernize our existing regulatory framework to reflect the new digital age in which we live. Bringing existing regulations up to date will help speed ubiquitous access to the Internet and close the digital divide more rapidly.

Moreover, it's past time to acknowledge that the nation has transitioned from an industrial to an information-based economy. Our new economy needs a regulatory framework that supports innovation and ingenuity and is able to keep pace with the speed and ever-changing needs of today's communications landscape. As broadband technology continues to grow and evolve, so should policies that regulate this technology.

We must ask ourselves as a nation: What policies will help spur investment in our nation's digital infrastructure and help increase all Americans' access to high-speed Internet services, especially in culturally diverse communities?

Universal broadband access will require substantial investment and the build out of state of the art communications networks. We must ensure that programs are in place to help bring affordable services and tools to communities in need.

To accomplish this goal, federal regulators and the industry must find ways to fairly allocate the critical resource that drives America's wireless industry - spectrum. We must make sure that the transition from the 19th century telephone network to high-speed fiber, Internet-based networks is well managed. A careful technology transition will usher in a new era of 21st century digital services for all Americans and help ensure that no one, regardless of color, status or income, is left behind.

The right regulatory framework will level the competitive field so that all broadband providers operate under the same rules, have the same opportunities to expand their network infrastructure and provide innovative, dynamic and robust services to consumers. This, in the end, will help bring digital equality to all Americans, expanding their opportunities in life.

Having affordable and accessible broadband is no longer a privilege - it has become an unequivocal need for all Americans. As such, it should be considered one of the key economic opportunity and civil rights issues for the 21st century.

The FBI and I Have a Dream by A. Peter Bailey

Sept. 8, 2013

Reality Check
The FBI and I Have a Dream
By A. Peter Bailey

apeterbailey

(TriceEdneyWire.com) - According to reporter, Tony Capaccio, in the August 28, 2013 Washington Post, “The Rev. Martin Luther King Jr.’s ‘I Have a Dream’ speech inspired the world. It also galvanized the FBI into undertaking one of its biggest surveillance operations in history.” A 1976 report of the Select Committee to Study Government Operations With Respect to Intelligence Activities said that “The FBI’s program to destroy Dr. King as the leader of the Civil Rights Movement entailed efforts to discredit him with churches, universities and the press.”

While most commentary on the 1963 speech and most commentary at the recent 50th Anniversary celebration focused on the “I Have a Dream” section of the speech it is clear that the FBI paid close attention its other sections including Dr. King’s assertion that “In a sense we have come to our nation’s capital to cash a check. When the architects of our Republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir…It is obvious today that America has defaulted on this promissory note in so far as her citizens of color are concerned.

Instead of honoring this obligation, America has given the Negro people a bad check, which has come back marked ‘insufficient funds.’ But we refuse to believe that the bank of justice is bankrupt… So we have come to cash this check—a check that will give us upon demand the riches of freedom and the security of justice.”

J. Edgar Hoover and his FBI cronies were also alarmed when Dr. King insisted that “We have also come to this spot to remind America of the fierce urgency of now (Italics his)….Now is the time to make real the promise of democracy. Now is the time to rise from the dark and desolate valleys of segregation to the sunlit path of racial justice. Now is the time to lift our nation from the quicksands of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of God’s children. It would be fatal for the nation to overlook the urgency of the movement and to underestimate the determination of the Negro….Those who hope that the Negro needed to blow off steam and will now be content will have a rude awakening if the nation returns to business as usual. There will be neither rest nor tranquility in America until the Negro is granted his citizenship rights. The whirlwind of revolt will continue to shake the foundation of our nation until the bright day of justice emerges.”

It would seem that at least one of the speakers at the anniversary celebration would have mentioned the FBI’s reaction to Dr. King’s speech. Instead they continued to swoon over “I Have a Dream.” If they are serious those who profess an ardent devotion to Dr. King’s legacy should be guided by the perceptive bluntness of the above and the practical, action-oriented, solutions-oriented, non-dreaming guidelines he presented in his last, must-read book Where Do We Go From Here: Chaos or Community? Otherwise they are just blowing smoke.

 

 

President Obama Challenges America: ‘Keep Marching’ By Hazel Trice Edney

Sept. 2, 2013

President Obama Challenges America:  ‘Keep Marching’
By Hazel Trice Edney

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White House Photo

(TriceEdneyWire.com) – Standing in the very spot where Dr. Martin Luther King Jr. stood 50 years before, President Barack Obama – America’s first Black President, challenged the nation to take a lesson from the past and keep marching.

“Because they kept marching, America changed.  Because they marched, a Civil Rights law was passed.  Because they marched, a Voting Rights law was signed.  Because they marched, doors of opportunity and education swung open so their daughters and sons could finally imagine a life for themselves beyond washing somebody else’s laundry or shining somebody else’s shoes. Because they marched, city councils changed and state legislatures changed, and Congress changed, and, yes, eventually, the White House changed,” he said to enthusiastic applause.

It was the “Let Freedom Ring” Ceremony, commemorating the 50th Anniversary of the March on Washington for Jobs and Freedom. The drizzly Aug. 28 day did not deter thousands from coming to witness the event. The crowd of people lined the mall from the Lincoln Memorial, where King spoke in 1963, around the Tidal Basin and almost back to the Washington Monument.  In fact, hundreds left the event after standing in line for hours due to a bottleneck at security gates for the event that was billed as “free and open” to the public.

But for the thousands that remained, chanting and cheering from what seemed like miles away, President Obama exhorted them to march in a new way.

“That tireless teacher who gets to class early and stays late and dips into her own pocket to buy supplies because she believes that every child is her charge  - she’s marching. That successful businessman who doesn't have to but pays his workers a fair wage and then offers a shot to a man, maybe an ex-con who is down on his luck - he’s marching.   

“The mother who pours her love into her daughter so that she grows up with the confidence to walk through the same door as anybody’s son - she’s marching.   The father who realizes the most important job he’ll ever have is raising his boy right, even if he didn't have a father - especially if he didn't have a father at home - he’s marching.  The battle-scarred veterans who devote themselves not only to helping their fellow warriors stand again, and walk again, and run again, but to keep serving their country when they come home - they are marching,” he said to applause.  

Facing new inequities in America, President Obama did not shy away from the realities of the moment.

“Inequality has steadily risen over the decades.  Upward mobility has become harder.  In too many communities across this country, in cities and suburbs and rural hamlets, the shadow of poverty casts a pall over our youth, their lives a fortress of substandard schools and diminished prospects, inadequate health care and perennial violence,” he said.

“Yes, there have been examples of success within Black America that would have been unimaginable a half century ago…But, as has already been noted, Black unemployment has remained almost twice as high as White unemployment, Latino unemployment close behind.  The gap in wealth between races has not lessened, it's grown.  And as President Clinton indicated, the position of all working Americans, regardless of color, has eroded, making the dream Dr. King described even more elusive.”

Three presidents – Obama, Bill Clinton and Jimmy Carter – addressed the crowd, in addition to luminaries that included Oprah Winfrey, Martin Luther King III, the Rev. Bernice King and Congressman John Lewis.

With the Trayvon Martin case still heavy on the minds of justice-seekers, Clinton stressed that Dr. King, “urged the victims of racial violence to meet White Americans with an outstretched hand; not a clinched fist. And in so doing, proved the redeeming power of unearned suffering.”

President Carter drew applause from the crowd when he pointed to the inequities of the criminal justice system. “There are more than 835,000 African-American men in prison, five times as many as when I left office. And with one third of all African-American males being destined to be in prison in our lifetime, there is a tremendous agenda ahead of us,” Carter said.

Rev. Bernice King, with the intense cadence of her father, delivered a fiery speech, also outlining the gross injustices of 2013.

“We come once again to let freedom ring. Because if freedom stops ringing, then the sound will disappear and the atmosphere will be charged with something else,” she said. “We are still crippled by practices and policies steeped in racial pride, hatred and hostility, some of which have us standing our ground rather than finding common ground. We are still chained by economic disparity, income and class inequality and conditions of poverty for many of God’s children around this nation and the world. We are still bound by civil unrest and apparent social biases in a world that often times degenerates into violence and destruction; especially against women and children. We are at this landing, and now we must break the cycle,” she said. “The Profit King spoke the vision. He made it plain. And we must run with it in this generation.”

The chiming of a bell at exactly 3 p.m. was intended to mark the moment that Dr. King proclaimed the words, "Let Freedom Ring!...From Every Mountain Side, Let Freedom Ring!"

President Obama, the final speaker, encouraged the nation that if they continue to march – not just in the streets, but in the ways he outlined – change will be inevitable.

“America, I know the road will be long, but I know we can get there.  Yes, we will stumble, but I know we’ll get back up.  That’s how a movement happens.  That’s how history bends.  That's how when somebody is faint of heart, somebody else brings them along and says, come on, we’re marching,” he said. “We might not face the same dangers of 1963, but the fierce urgency of now remains. We may never duplicate the swelling crowds and dazzling procession of that day so long ago - no one can match King’s brilliance - but the same flame that lit the heart of all who are willing to take a first step for justice, I know that flame remains.”

 

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