Tuesday, February 21, 2017

Stiglitz How to survive Trump

How to Survive the Trump Era


Joseph Stiglitz

NEW YORK – In barely a month, US President Donald Trump has managed to spread chaos and uncertainty – and a degree of fear that would make any terrorist proud – at a dizzying pace. Not surprisingly, citizens and leaders in business, civil society, and government are struggling to respond appropriately and effectively.

Any view regarding the way forward is necessarily provisional, as Trump has not yet proposed detailed legislation, and Congress and the courts have not fully responded to his barrage of executive orders. But recognition of uncertainty is not a justification for denial.

The Year Ahead 2017 Cover Image

On the contrary, it is now clear that what Trump says and tweets must be taken seriously. Following the election in November, there was near-universal hope that he would abandon the extremism that defined his campaign. Surely, it was thought, this master of unreality would adopt a different persona as he assumed the awesome responsibility of what is often called the most powerful position in the world.

Something similar happens with every new US president: regardless of whether we voted for the new incumbent, we project onto him our image of what we want him to be. But, while most elected officials welcome being all things to all people, Trump has left no room for doubt that he intends to do what he said: a ban on Muslim immigration, a wall on the border with Mexico, renegotiation of the North American Free Trade Agreement, repeal of the 2010 Dodd-Frank financial reforms, and much else that even his supporters dismissed.

I have, at times, criticized particular aspects and policies of the economic and security order created in the aftermath of World War II, based on the United Nations, NATO, the European Union, and a web of other institutions and relationships. But there is a big difference between attempts to reform these institutions and relationships to enable them to serve the world better, and an agenda that seeks to destroy them outright.

Trump sees the world in terms of a zero-sum game. In reality, globalization, if well managed, is a positive-sum force: America gains if its friends and allies – whether Australia, the EU, or Mexico – are stronger. But Trump's approach threatens to turn it into a negative-sum game: America will lose, too.

That approach was clear from his inaugural address, in which his repeated invocation of "America first," with its historical fascist overtones, affirmed his commitment to his ugliest schemes. Previous administrations have always taken seriously their responsibility to advance US interests. But the policies they pursued usually were framed in terms of an enlightened understanding of national interest. Americans, they believed, benefit from a more prosperous global economy and a web of alliances among countries committed to democracy, human rights, and the rule of law.

If there is a silver lining in the Trump cloud, it is a new sense of solidarity over core values such as tolerance and equality, sustained by awareness of the bigotry and misogyny, whether hidden or open, that Trump and his team embody. And this solidarity has gone global, with Trump and his allies facing rejection and protests throughout the democratic world.

In the US, the American Civil Liberties Union, having anticipated that Trump would quickly trample on individual rights, has shown that it is as prepared as ever to defend key constitutional principles such as due process, equal protection, and official neutrality with respect to religion. And, in the past month, Americans have supported the ACLU with millions of dollars in donations.

Similarly, across the country, companies' employees and customers have expressed their concern over CEOs and board members who support Trump. Indeed, as a group, US corporate leaders and investors have become Trump's enablers. At this year's World Economic Forum Annual Meeting in Davos, many salivated over his promises of tax cuts and deregulation, while eagerly ignoring his bigotry – not mentioning it in a single meeting that I attended – and protectionism.

Even more worrying was the lack of courage: it was clear that many of those who were concerned about Trump were afraid to raise their voices, lest they (and their companies' share price) be targeted by a tweet. Pervasive fear is a hallmark of authoritarian regimes, and we are now seeing it in the US for the first time in my adult life.

As a result, the importance of the rule of law, once an abstract concept to many Americans, has become concrete. Under the rule of law, if the government wants to prevent firms from outsourcing and offshoring, it enacts legislation and adopts regulations to create the appropriate incentives and discourage undesirable behavior. It does not bully or threaten particular firms or portray traumatized refugees as a security threat.


But when we are constantly barraged by events and decisions that are beyond the pale, it is easy to become numb and to begin looking past major abuses of power at the still-greater travesties to come. One of the main challenges in this new era will be to remain vigilant and, whenever and wherever necessary, to resist.VAmerica's leading media, like The New York Times and The Washington Post, have so far refused to normalize Trump's abnegation of American values. It is not normal for the US to have a president who rejects judicial independence; replaces the most senior military and intelligence officials at the core of national security policymaking with a far-right media zealot; and, in the face of North Korea's latest ballistic missile test, promotes his daughter's business ventures.


-- 
John Case
Harpers Ferry, West Virginia

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EPIC Radio Podcasts:Fanny Crawford and Ellouise Schoettler share stories of women pioneers in the US military services

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Post: Fanny Crawford and Ellouise Schoettler share stories of women pioneers in the US military services
Link: http://podcasts.enlightenradio.org/2017/02/fanny-crawford-and-ellouise-schoettler.html

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Resistance Radio, Wed Feb 22 at 10 am

Resistance Radio

Please join me and special guest Laura Markwardt for Resistance Radio tomorrow at 10 am est as we bring you up to date on Our Resistance and all the threats to our democracy including the fascistic assault on academic freedom. Please find our small but great, global radio station at www.enlightenradio.org.

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Sunday, February 19, 2017

Eastern Panhandle Independent Community (EPIC) Radio:EPIC Radio Podcasts: the Are You Crazy? podcast: Dr Leslie-Beth Wish, D...

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Eastern Panhandle Independent Community (EPIC) Radio:Quaker Radio, the Partially Examined Life, and Richard Diamond, Private EYE -- Sunday on EPIC Radio

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Saturday, February 18, 2017

EPIC Radio Podcasts:Paris on the Potomac Reviews the Gaslighting and Confusion downstream

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Friday, February 17, 2017

Letter to the Subcommittee on Workforce Protections on federal wage and hour policies [feedly]

Letter to the Subcommittee on Workforce Protections on federal wage and hour policies
http://www.epi.org/publication/letter-to-the-subcommittee-on-workforce-protections-on-federal-wage-and-hour-policies/


EPI Senior Economist and Director of Policy Heidi Shierholz sent the following letter to the House Committee on Education and the Workforce, Subcommittee on Workforce Protections on February 16th, 2017.

Dear Representatives Foxx, Scott, Byrne, and Takano:

The Economic Policy Institute is pleased to submit this letter in regards to the February 16, 2017, Subcommittee on Workforce Protections hearing, "Federal Wage and Hour Policies in the Twenty-First Century Economy." The Economic Policy Institute, a nonprofit, nonpartisan organization, is this country's premier think tank that focuses on the economic condition of low- and middle-income workers and their families. We are deeply interested in any changes to wage and hour policies that protect workers. The components that must be a core part of any reform related to the minimum wage and to overtime protections are described below.

The Minimum Wage

The current federal minimum wage, $7.25, is roughly 25 percent below its historic value in real terms. A full-time worker with one child who earns the federal minimum wage is earning below the federal poverty line. There is an enormous amount of rigorous research on the economic impacts of minimum wage increases, and what the weight of that literature shows is that minimum wage increases have raised wages but have caused little to no negative effect on the employment of low-wage workers. The vast majority of those who would benefit from an increase in the minimum wage are adults in working families, they are disproportionately women, and their households depend on these earnings to make ends meet.

Any reform related to the minimum wage must do the following things:

  1. Establish a wage floor that ensures a decent standard of living for all workers. The Raise the Wage Act of 2015 provides a blueprint for what a decent wage floor could be, along with reasonable steps to get there.
  2. An increase of the minimum wage must be accompanied by gradual phasing out of a lower subminimum wage for tipped workers. Tipped workers experience dramatically higher poverty rates in states where they can be paid a separate, lower minimum wage, and this practice must end.
  3. To prevent future erosion of the minimum wage and to provide predictability for employers, the minimum wage should be indexed to growth in overall wages on an annual basis.

Overtime Protections

To help ensure the basic, family-friendly right to a limited workweek, the Fair Labor Standards Act (FLSA) requires that most workers—including both hourly and salaried workers—be paid at least 1.5 times their regular rate of pay when they work more than 40 hours a week. One narrow exception to this is for bona-fide executive, managerial, and professional workers. However, the way that exception is defined has become woefully out of date, and in May of 2016, the Department of Labor issued a rule to provide a much needed update. The rule is currently under a nationwide injunction, but that injunction will hopefully be short-lived, since the rule delivers better work-life balance and fairer pay to millions of workers.

The new rule updated the salary threshold below which most salaried workers are entitled to overtime pay if they work more than 40 hours a week. Before this rulemaking, the threshold had been updated only once since 1975, and had thus eroded dramatically—providing overtime protections to less than 10 percent of full-time salaried workers, compared with more than 60 percent in 1975. The current threshold of $455 per week ($23,660 annually for a full year) is well under the poverty threshold for a family of four.

The update includes two crucial components:

  1. It increases the salary threshold from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). This updated threshold is well within historical norms; if the 1975 threshold had simply kept up with inflation, it would now be around $57,000 annually.
  2. It automatically updates the salary threshold every three years based on weekly wage growth of full-time salaried workers. Thus, as salaries rise over time, the threshold would rise with it, ensuring that the standard laid out in the new rule is preserved, instead of steadily weakening over time. This is good for workers and provides crucial predictability to employers.

These updates to the overtime rule mean that millions of workers, disproportionately women, would likely be asked to work fewer overtime hours, and would get the overtime pay they deserve when they do work more than 40 hours a week. This is good for families; close to 2.5 million children would see at least one parent gain overtime protections. And an increase in the threshold would be a job creator, with Goldman Sachs estimating that it would add around 100,000 jobs to the economy.

Since 1975, the top 5 percent of all households have seen their incomes grow by more than 90 percent, whereas the median (or "typical") household has seen its income grow by less than 20 percent. That means that the last quarter of the 20th century and the first 17 years of the 21st century have been marked by rising inequality. Reform for the 21st century should focus on reversing that rising inequality and building a fairer economy. Providing a strong minimum wage and overtime salary threshold, and then indexing them going forward so they don't erode over time as prices and wages rise, are common sense steps towards creating an economy that works for everyone and should be at the center of any effort to "update" wage and hour policy for the 21st century.

Sincerely,

Heidi Shierholz
Senior Economist and Director of Policy
The Economic Policy Institute
1225 Eye St. NW, Suite 600
Washington, DC 20005


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