Tuesday, July 18, 2017

Policy Watch: Cuts to DOL budget, attacks on joint employer standard [feedly]

Policy Watch: Cuts to DOL budget, attacks on joint employer standard
http://www.epi.org/blog/policy-watch-cuts-to-dol-budget-attacks-on-joint-employer-standard/

Congress returned from the July 4th recess this week, and Senate Republicans debuted yet another proposal in the ongoing attempt to repeal and replace the Affordable Care Act. The latest proposal still includes the severe cuts to Medicaid found in earlier drafts, so millions of Americans will lose health care coverage if this week's version of the Republican plan becomes law. Meanwhile, the House Appropriations Committee released a fiscal year 2018 Labor, Health and Human Services, Education (LHHS) funding bill that would cut funding for the Department of Labor (DOL) by $1.3 billion. This measure also includes several non-funding-related requirements (often called "riders") that would block or weaken labor protections. The House Committee on Education and the Workforce held a hearingattacking the concept of joint employer liability under various worker protection laws. And, the Senate Committee on Health, Education, Labor and Pensions (HELP) held a consolidated hearing on President Trump's nominees to the National Labor Relations Board (NLRB) and to DOL.

Draining worker protection and training resources from the FY18 DOL and NLRB budgets

The LHHS funding bill from Appropriations Subcommittee Republicans would further reduce funding for agencies that are already stretched thin. Occupational Safety and Health Administration funding would be nearly $12 million less than even President Trump's draconian budget request earlier this year (and about 4 percent less than the current budget). The Wage and Hour Division would face a roughly 6 percent cut. In other areas, the bill takes a hatchet to job training programs and other services, particularly the Workforce Innovation and Opportunity Act programs at the Employment and Training Administration. There's also a whopping 9 percent cut ($25 million) to the National Labor Relations Board. The Bureau of Labor Statistics, crucial for providing much-needed data on the workforce, would suffer a 5 percent cut.

Read more


 -- via my feedly newsfeed

Re: Joe Sims: Trump, the state and counterrevolution

A thoughtful piece from Joe Sims. Especially strong and well-reasoned analysis of the fascist threat(s), both nationally and globally. The danger of the centrifugal forces unleashed when federal institutions fail and turn against the people they serve is a very important observation. Bad and Good. Texas and California. 

However, the piece is weak on political economy, IMO, and thus a bit shoe-less for rugged terrain. There is no viable alternative to Keynesian (in the broad sense) methods and models of managing any economy where private commodity transactions remain a decisive if not dominant sector of all transactions (public plus private). To a very significant degree, Keynes theories of economic cycles, both productive and financial, are settled economic science. Unless one wants to focus on "Socialism with Chinese characteristics", there is no modern "Marxist Political Economy" that I know of. Not all, but many, modern politically progressive economists were INFLUENCED by Marx on a number of questions. But they are not "Marxists". Marx was not a "Marxist" either. Chinese economists call themselves Marxist, but their methods are largely Keynesian — again in the broad sense encompassing neo-Keynesian, post-Keynesian, behaviorist, institutionalism, Minsky-ism, IS-LM, as well as basic macroeconomic concepts from Keynes–and his interpreters– present in most of the heterodox and long-waver trends. 

Lastly, references to last or dying stages of capitalism — that's where the shoe-less feet leave the ground to me. Yes, a major restructuring of capitalism, including revolutionary and epochal changes, is in the works. It is likely that rising to the ultimate challenge of our time of redistributing concentrated, reactionary wealth, while establishing more global scientific (where possible) control over growth and environmental outcomes — will require a succession of political cataclysms. But none of them will ABOLISH capitalism as long as commodities are in motion. The latter is an objective force of social nature, at least at our current level(s) of development, no less 'objective' than wind and rain are to weather. Markets are social institutions whose regulatory operations, like engineers adapting rivers to landscape and real estate, may alter the flows, tax them, or distribute them in ways defined by new ruling political coalitions — but stopping the flows altogether is a different matter entirely. Can't be done except incrementally in a historical sense because it depends critically on a level of technological development that can sustain a mostly non-commodity existence, and system of rewards (reputation?) to replace commodity-rewards. As Marx predicted long ago: such relations require a profound social and individual transformation made possible only by the meeting of most human wants with abundance so vast the unit costs approach zero.

On Tuesday, July 18, 2017 at 9:23:34 AM UTC-4, moderator wrote:

Trump, the state and counterrevolution


Joe Sims


Our country is in the midst of a profound governmental crisis. This crisis is revealing itself deep  within the bourgeois state, that hallowed body of legislators, lawyers, and corporate lobbyists vaunted by some as the apogee of modern civilization. There are overlapping crises in the White House, in the executive as a whole, and between the presidency and the federal judiciary. Fault lines also lie in the relationship between the presidency and Congress with regard to traditional checks and balances and consent for judicial nominees. Congress itself is not immune, as witnessed by the subversion of the traditional filibuster rule. Here, GOP partisanship is pursued to the exclusion of all else. In the period before the election, the vacillation and caving of neoliberal Democrats was also to blame.

The crisis is expressing itself in most severe forms in the war among White House factions, in the discontent evident among officials in both U.S. intelligence apparatus and the Department of Justice, and in a series of judicial checks on presidential overreach that carry implications of a constitutional crisis.

Neo-fascist conspiracy theories about conflicts within the "deep state" abound on all sides, repeated by the president himself.

Branches of the executive are in apparent contest with one another, with roles traditionally attributed to the State Department and Pentagon being challenged by the intelligence agencies. Neo-fascist conspiracy theories about conflicts within the "deep state" abound on all sides, repeated by the president himself.

The State Department itself seems to be in deep crisis as positions go unfulfilled due to turf wars regarding hiring, while its responsibility for foreign policy gets replaced in some cases by Trump family members.

People are asking, "What's it all about?" and "How will it affect me?" These are important  questions on the minds of a broad public more than a little overwhelmed and perplexed by Trump's crisis-a-week style of governing. The implications of unchecked minority party rule both in Congress and in the executive, exacerbated by presidential mendacity on a scale never seen before, are becoming ever more apparent.

The crisis of the American state

On one level, the crisis is sparked by a self-declared war by a faction within the White House on the "administrative state," i.e., the various departments that comprise the executive branch of government. The aim of this assault is to undo the protections and services government  provides, things like workplace safety guidelines or warnings about lead in the drinking water. Such measures are a nuisance, if not anathema, to a ruling class in pursuit of maximum profits.

The right wing is attempting to idea the concept that the purpose of government is to serve the people.

At work here is not only the dismantling of the federal bureaucracy but also an undoing of an idea that underlies it – the concept that the purpose of government is to serve the people. This notion is the lynchpin, the very basis, of the U.S. social contract since the days of the New Deal. In this regard, Trump is the fullest realization of the neoliberalism elaborated in FDR's shadow.

On another level, the crisis has broader implications. Not only is the structure of the state being reimagined, so too are its ends and the means by which they're achieved. In this regard, is Trumpism an attempt to normalize non-democratic decision making? Some seem to think so, including many Republicans, as evidenced by House support for an amendment offered by Rep. Barbara Lee challenging the president's authority to make war.

The implications here go not only to the decision-making process itself – in other words, democracy – but to the very concept of the country itself as a nation-state. The U.S. is extremely polarized, with powerful centrifugal forces pulling at its seams.

Consider that the U.S. nation, like other capitalist democracies born in the 19th century, is still in formation. Some argue, for instance, that its bourgeois democratic revolution was only recently completed with the passing of the Civil Rights Acts of the 1960s. Among the reasons for the delay have been the ongoing influences of racism and nationalism, influences that historically are at work in every land.

In fact, Lenin once observed that this is an objective process and that in every country, as well as internationally, two tendencies are at work: separation and integration. Here he was speaking of what Marxists call the "national question," the formation of nation-states during the imperialist stage of capitalism. In Lenin's view, the process of production itself determined that the trend towards integration was primary.

However, today it is difficult to say with any certainty for how long the dominant trend, integration, will hold sway. In light of the breakup of the Soviet Union, or more recently the ascendance of separatist trends in Europe and the passing of initiatives to withdraw from the European Union, scenarios unimaginable a few years ago are today's political realities.

"White nationalism" and the proposition that an oppressed white nation is fighting for its place in the American sun part of the everyday discourse.

With "white nationalism" and the proposition that an oppressed white nation is fighting for its place in the American sun part of the everyday discourse among the Breitbart encampment of Trump's coalition, can the re-emergence of such Confederate forces be completely ruled out?

Clearly, the crisis of late stage state monopoly capitalism is giving rise to unpredictable consequences.

Here a mix of two schools of bourgeois political economy and governance, Keynesian and neoliberal, are at play and battling for influence in union halls, university campuses, corporate boardrooms, city councils, state legislatures, and into the courts and halls of Congress, pitting workers, immigrants, races, genders, and identities against each other in a uniquely American white nativist "us" versus a multinational, multicultural "them".

But curiously, both schools have reached their nadir, with Keynesian methods long ago running their course and austerity now too meeting the same fate. Hence, we get Trump's curious mix of economic nationalism, austerity, and privatization alongside plans for business-funded infrastructure investment and (in all likelihood false) promises to stay the course on some entitlements in a desperate attempt to maintain his base and find economic solutions, even if only temporarily.

Trump and the counterrevolution

And it is precisely here that the greatest danger lies, and it's an ominous one at that. To achieve these ends, Trump has, for reasons of both ideological predilection and necessity, allied the traditional Republican coalition with the so-called alt-right and its mass base in the lower middle class and among some sections of white workers, particularly in small towns and rural areas, potential shock troops in the battles to come.

Trump has allied the traditional Republican coalition with the so-called alt-right.

Already hamstrung by the mass resistance to his policies and, in particular, by the aftermath of his firing of FBI Director James Comey, Trump – in keeping with Roy Cohn's schooling – increasingly skirts along the edges of the law.

In relation to Comey, the Commander-in-chief seems to have actively interfered in the law enforcement process not only by attempting to get the former director to drop the Flynn case but also by approaching Dan Coats and NSA Director Michael Rogers with the same directive. And so far, Trump's allies in Congress have refused to side with federal law enforcement or the intelligence community in checking this abuse of power.

Here the issue of how Trump's surrogates responded is key. Did the attorney general or White House chief of staff challenge his overtures, or were they silent? In a White House and Republican Party dominated by a rash and authoritarian president and surrounded by loyal family insiders, did government officials find the courage to uphold the legal and political rules of the game, or did they ignore them? As one legal scholar put it: "The institutional defenses against the breakdown of basic norms begin with an understanding among the key personnel of the government that their roles require them to cooperate in upholding these norms."

The crisis in the state consists precisely in the degree to which norms of government have broken down.

If they didn't uphold them, the country's already in deep trouble. Indeed, the crisis in the state consists precisely in the degree to which these norms of government broke down.

In this regard, the whole reaction by the administration to the Russia investigation suggests a definite step in the direction of lawlessness, with all of the danger that this implies.

A breakdown in the norms of governance also pertains to the relationship between the presidency and the fourth estate. Trump, in Nixonian fashion, has labeled the capitalist press "the enemy of the people," and purveyors of fake news. To be fair, there has long been a tendentious relationship between the White House and the press but never a sustained wholesale assault on truth, facts, and the pushing of alternative narratives and "realities" lending an unprecedented crisis of legitimacy to the institutions of both state and civil society.

The point here is that Trump and company, as a political force, represent something new, a break, a rupture with past norms and bourgeois democratic practices. Other administrations have broken the law and attempted to dismantle the EPA or the Department of Education, but never has there been such a sustained assault on the foundations of government married to an alliance with neo-fascists and supported by an apparent foreign interference in the electoral process. The country appears to be in the first stages of veritable counterrevolution aimed at imposing a new form of capitalist rule.

At this juncture, the crisis is occurring within the upper echelons of the ruling class itself as different sections contend for influence: Big Oil and Wall Street demanding deregulation and tax relief; Silicon Valley pursuing more free trade, and the military-industrial complex pushing for foreign intervention and a bigger share of federal spending.

In the White House, there's the appearance of a truce between alt-right neo fascists and Wall Street bankers on the one side and more traditional conservative Republicans, represented by the Trump's chief of staff, on the other. Support for the president among the various GOP factions in Congress remains, though Trump is taking no chances, returning again and again to the GOP base to shore up support.

 

Moving beyond resistance

How then will the crisis be resolved, and what does it portend for the future? Clearly, the special counsel's probe and Congress' investigation must proceed along parallel lines, but just as clearly, they cannot be left to themselves.

The FBI is hardly a bastion of democracy.

Notwithstanding the current skirmish with Trump, the FBI is hardly a bastion of democracy, and both chambers of Congress are dominated by the GOP. Hence the need for ongoing mass public pressure. Here, both a generalized form of broad public pressure (popular front) and a class-based one emphasizing the socialist solutions that have burst onto the agenda as a result of the Sanders campaign are necessary. Both must be carried on in tandem without mechanically placing one against the other, with the Communist Party always bringing the interests of the working class to the fore.

But the question arises as to what degree in the short term the crisis is resolvable, given that the forces in play have permanent class interests and long-term resources for realizing them. In other words, the underlying causes of the crisis are to no small degree independent of the present actors and, short of addressing these causes, the symptoms are likely to reproduce themselves again and again.

The state, democracy, and their related institutions are strained and in crisis because the conditions in which they function are strained and in crisis. The rate of profit continues to fall. Wages are stagnant. Debt, both personal and public, is sky-high. Life as it was once lived is disappearing, never to return. In these circumstances, promises of change are broken, repeatedly. Class, racial, and cultural resentments abound. Government is not trusted, the news media is not believed, and voting is seen by half the population as a waste of time.

And yet, the country is in the midst of the largest and most sustained mass movement for democracy in its history. Initiated by women in the aftermath of the inauguration and joined by millions in cities across the country, this movement has engaged the Trump administration at every turn, particularly on health care. It has already set the midterm elections in its sights, recruiting thousands of candidates. Shouldn't communists take their place among them?

And it is here that hope lies. It is a new, inexperienced movement. As of yet, its working-class component lacks full involvement, focus, or an agenda balancing the demands of the left and center along with the equality imperatives of people of color, women, LGBTQ people, and the disabled. Still, it is the country's best and only chance to move beyond resistance to a new advanced democratic dawn.

Image: Creative Commons 3.0
Thanks to John Bachtell, Scott Hiley, C J Atkins and Joel Wendland for copy edits and suggestions.


--
John Case
Harpers Ferry, WV

The Winners and Losers Radio Show
7-9 AM Weekdays, The Enlighten Radio Player Stream, 
Sign UP HERE to get the Weekly Program Notes.

Joe Sims: Trump, the state and counterrevolution

Trump, the state and counterrevolution


Joe Sims


Our country is in the midst of a profound governmental crisis. This crisis is revealing itself deep  within the bourgeois state, that hallowed body of legislators, lawyers, and corporate lobbyists vaunted by some as the apogee of modern civilization. There are overlapping crises in the White House, in the executive as a whole, and between the presidency and the federal judiciary. Fault lines also lie in the relationship between the presidency and Congress with regard to traditional checks and balances and consent for judicial nominees. Congress itself is not immune, as witnessed by the subversion of the traditional filibuster rule. Here, GOP partisanship is pursued to the exclusion of all else. In the period before the election, the vacillation and caving of neoliberal Democrats was also to blame.

The crisis is expressing itself in most severe forms in the war among White House factions, in the discontent evident among officials in both U.S. intelligence apparatus and the Department of Justice, and in a series of judicial checks on presidential overreach that carry implications of a constitutional crisis.

Neo-fascist conspiracy theories about conflicts within the "deep state" abound on all sides, repeated by the president himself.

Branches of the executive are in apparent contest with one another, with roles traditionally attributed to the State Department and Pentagon being challenged by the intelligence agencies. Neo-fascist conspiracy theories about conflicts within the "deep state" abound on all sides, repeated by the president himself.

The State Department itself seems to be in deep crisis as positions go unfulfilled due to turf wars regarding hiring, while its responsibility for foreign policy gets replaced in some cases by Trump family members.

People are asking, "What's it all about?" and "How will it affect me?" These are important  questions on the minds of a broad public more than a little overwhelmed and perplexed by Trump's crisis-a-week style of governing. The implications of unchecked minority party rule both in Congress and in the executive, exacerbated by presidential mendacity on a scale never seen before, are becoming ever more apparent.

The crisis of the American state

On one level, the crisis is sparked by a self-declared war by a faction within the White House on the "administrative state," i.e., the various departments that comprise the executive branch of government. The aim of this assault is to undo the protections and services government  provides, things like workplace safety guidelines or warnings about lead in the drinking water. Such measures are a nuisance, if not anathema, to a ruling class in pursuit of maximum profits.

The right wing is attempting to idea the concept that the purpose of government is to serve the people.

At work here is not only the dismantling of the federal bureaucracy but also an undoing of an idea that underlies it – the concept that the purpose of government is to serve the people. This notion is the lynchpin, the very basis, of the U.S. social contract since the days of the New Deal. In this regard, Trump is the fullest realization of the neoliberalism elaborated in FDR's shadow.

On another level, the crisis has broader implications. Not only is the structure of the state being reimagined, so too are its ends and the means by which they're achieved. In this regard, is Trumpism an attempt to normalize non-democratic decision making? Some seem to think so, including many Republicans, as evidenced by House support for an amendment offered by Rep. Barbara Lee challenging the president's authority to make war.

The implications here go not only to the decision-making process itself – in other words, democracy – but to the very concept of the country itself as a nation-state. The U.S. is extremely polarized, with powerful centrifugal forces pulling at its seams.

Consider that the U.S. nation, like other capitalist democracies born in the 19th century, is still in formation. Some argue, for instance, that its bourgeois democratic revolution was only recently completed with the passing of the Civil Rights Acts of the 1960s. Among the reasons for the delay have been the ongoing influences of racism and nationalism, influences that historically are at work in every land.

In fact, Lenin once observed that this is an objective process and that in every country, as well as internationally, two tendencies are at work: separation and integration. Here he was speaking of what Marxists call the "national question," the formation of nation-states during the imperialist stage of capitalism. In Lenin's view, the process of production itself determined that the trend towards integration was primary.

However, today it is difficult to say with any certainty for how long the dominant trend, integration, will hold sway. In light of the breakup of the Soviet Union, or more recently the ascendance of separatist trends in Europe and the passing of initiatives to withdraw from the European Union, scenarios unimaginable a few years ago are today's political realities.

"White nationalism" and the proposition that an oppressed white nation is fighting for its place in the American sun part of the everyday discourse.

With "white nationalism" and the proposition that an oppressed white nation is fighting for its place in the American sun part of the everyday discourse among the Breitbart encampment of Trump's coalition, can the re-emergence of such Confederate forces be completely ruled out?

Clearly, the crisis of late stage state monopoly capitalism is giving rise to unpredictable consequences.

Here a mix of two schools of bourgeois political economy and governance, Keynesian and neoliberal, are at play and battling for influence in union halls, university campuses, corporate boardrooms, city councils, state legislatures, and into the courts and halls of Congress, pitting workers, immigrants, races, genders, and identities against each other in a uniquely American white nativist "us" versus a multinational, multicultural "them".

But curiously, both schools have reached their nadir, with Keynesian methods long ago running their course and austerity now too meeting the same fate. Hence, we get Trump's curious mix of economic nationalism, austerity, and privatization alongside plans for business-funded infrastructure investment and (in all likelihood false) promises to stay the course on some entitlements in a desperate attempt to maintain his base and find economic solutions, even if only temporarily.

Trump and the counterrevolution

And it is precisely here that the greatest danger lies, and it's an ominous one at that. To achieve these ends, Trump has, for reasons of both ideological predilection and necessity, allied the traditional Republican coalition with the so-called alt-right and its mass base in the lower middle class and among some sections of white workers, particularly in small towns and rural areas, potential shock troops in the battles to come.

Trump has allied the traditional Republican coalition with the so-called alt-right.

Already hamstrung by the mass resistance to his policies and, in particular, by the aftermath of his firing of FBI Director James Comey, Trump – in keeping with Roy Cohn's schooling – increasingly skirts along the edges of the law.

In relation to Comey, the Commander-in-chief seems to have actively interfered in the law enforcement process not only by attempting to get the former director to drop the Flynn case but also by approaching Dan Coats and NSA Director Michael Rogers with the same directive. And so far, Trump's allies in Congress have refused to side with federal law enforcement or the intelligence community in checking this abuse of power.

Here the issue of how Trump's surrogates responded is key. Did the attorney general or White House chief of staff challenge his overtures, or were they silent? In a White House and Republican Party dominated by a rash and authoritarian president and surrounded by loyal family insiders, did government officials find the courage to uphold the legal and political rules of the game, or did they ignore them? As one legal scholar put it: "The institutional defenses against the breakdown of basic norms begin with an understanding among the key personnel of the government that their roles require them to cooperate in upholding these norms."

The crisis in the state consists precisely in the degree to which norms of government have broken down.

If they didn't uphold them, the country's already in deep trouble. Indeed, the crisis in the state consists precisely in the degree to which these norms of government broke down.

In this regard, the whole reaction by the administration to the Russia investigation suggests a definite step in the direction of lawlessness, with all of the danger that this implies.

A breakdown in the norms of governance also pertains to the relationship between the presidency and the fourth estate. Trump, in Nixonian fashion, has labeled the capitalist press "the enemy of the people," and purveyors of fake news. To be fair, there has long been a tendentious relationship between the White House and the press but never a sustained wholesale assault on truth, facts, and the pushing of alternative narratives and "realities" lending an unprecedented crisis of legitimacy to the institutions of both state and civil society.

The point here is that Trump and company, as a political force, represent something new, a break, a rupture with past norms and bourgeois democratic practices. Other administrations have broken the law and attempted to dismantle the EPA or the Department of Education, but never has there been such a sustained assault on the foundations of government married to an alliance with neo-fascists and supported by an apparent foreign interference in the electoral process. The country appears to be in the first stages of veritable counterrevolution aimed at imposing a new form of capitalist rule.

At this juncture, the crisis is occurring within the upper echelons of the ruling class itself as different sections contend for influence: Big Oil and Wall Street demanding deregulation and tax relief; Silicon Valley pursuing more free trade, and the military-industrial complex pushing for foreign intervention and a bigger share of federal spending.

In the White House, there's the appearance of a truce between alt-right neo fascists and Wall Street bankers on the one side and more traditional conservative Republicans, represented by the Trump's chief of staff, on the other. Support for the president among the various GOP factions in Congress remains, though Trump is taking no chances, returning again and again to the GOP base to shore up support.

 

Moving beyond resistance

How then will the crisis be resolved, and what does it portend for the future? Clearly, the special counsel's probe and Congress' investigation must proceed along parallel lines, but just as clearly, they cannot be left to themselves.

The FBI is hardly a bastion of democracy.

Notwithstanding the current skirmish with Trump, the FBI is hardly a bastion of democracy, and both chambers of Congress are dominated by the GOP. Hence the need for ongoing mass public pressure. Here, both a generalized form of broad public pressure (popular front) and a class-based one emphasizing the socialist solutions that have burst onto the agenda as a result of the Sanders campaign are necessary. Both must be carried on in tandem without mechanically placing one against the other, with the Communist Party always bringing the interests of the working class to the fore.

But the question arises as to what degree in the short term the crisis is resolvable, given that the forces in play have permanent class interests and long-term resources for realizing them. In other words, the underlying causes of the crisis are to no small degree independent of the present actors and, short of addressing these causes, the symptoms are likely to reproduce themselves again and again.

The state, democracy, and their related institutions are strained and in crisis because the conditions in which they function are strained and in crisis. The rate of profit continues to fall. Wages are stagnant. Debt, both personal and public, is sky-high. Life as it was once lived is disappearing, never to return. In these circumstances, promises of change are broken, repeatedly. Class, racial, and cultural resentments abound. Government is not trusted, the news media is not believed, and voting is seen by half the population as a waste of time.

And yet, the country is in the midst of the largest and most sustained mass movement for democracy in its history. Initiated by women in the aftermath of the inauguration and joined by millions in cities across the country, this movement has engaged the Trump administration at every turn, particularly on health care. It has already set the midterm elections in its sights, recruiting thousands of candidates. Shouldn't communists take their place among them?

And it is here that hope lies. It is a new, inexperienced movement. As of yet, its working-class component lacks full involvement, focus, or an agenda balancing the demands of the left and center along with the equality imperatives of people of color, women, LGBTQ people, and the disabled. Still, it is the country's best and only chance to move beyond resistance to a new advanced democratic dawn.

Image: Creative Commons 3.0
Thanks to John Bachtell, Scott Hiley, C J Atkins and Joel Wendland for copy edits and suggestions.


--
John Case
Harpers Ferry, WV

The Winners and Losers Radio Show
7-9 AM Weekdays, The Enlighten Radio Player Stream, 
Sign UP HERE to get the Weekly Program Notes.

Friday, July 14, 2017

The deficits generated by Trump’s budget are much bigger than CBO’s estimates [feedly]

The deficits generated by Trump's budget are much bigger than CBO's estimates
http://jaredbernsteinblog.com/the-deficits-generated-by-trumps-budget-are-much-bigger-than-cbos-estimates/

The figure below, from Senate Budget Committee staffer Bobby Kogan, shows four different estimates of projected budget deficits as shares of GDP:

–The lowest line is the administration's own estimate, showing how if you buy their numbers–and if you do, I've got a bridge to sell you–the budget balances by 2027.

–The next line up is from today's CBO release of their analysis of President's budget. Note that CBO must adhere to claims that tax cuts will be paid for, even if there's no credible plan to do so.

–The next line is CBO's baseline, or the path they believe the deficit will follow if we stick to current law.

–The top line is the most important. It's the deficit as a share of GDP under the far more credible assumption that team Trump fails to pay for their tax cuts (using Tax Policy Center static estimates of the cost of their tax cuts, with interest costs added; ftr, TPC's dynamic score line looks the same).

Sources: OMB, CBO, TPC, Bobby Kogan

The administration gets to balance in part by assuming economic growth rates about 50% higher than CBO's (~3 vs. ~2 percent), which spins off  over $3 trillion in revenue that the budget agency wisely does not count (the admin also cuts trillions in spending on programs like Medicaid, nutritional assistance, education, and income security). As mentioned, the CBO must follow the administration's "set of principles to guide deficit-neutral reform of the tax system," or what budget wonks call "the magic asterisk." The claim is that they'll figure out some way to offset the costs of their tax cuts, so no need to add those pesky costs to projected deficits.

If you share my "yeah, right" response to that claim, then the yellow line's the one for you.

To be clear, I'm the least hawkish budget guy you'll meet, and I don't fault them or anyone else for failing to balance their budget. But deficits growing to 7% of GDP due to wasteful, regressive tax cuts are completely unwarranted and squander valuable resources that could and should be put to much better use offsetting the negative impacts of poverty, inequality, climate change, and the deterioration of our public goods.

VISIT WEBSITE
 -- via my feedly newsfeed

Paul Krugman: The Cruelty and Fraudulence of Mitch McConnell’s Health Bill [feedly]

Paul Krugman: The Cruelty and Fraudulence of Mitch McConnell's Health Bill
http://economistsview.typepad.com/economistsview/2017/07/paul-krugman-the-cruelty-and-fraudulence-of-mitch-mcconnells-health-bill.html

"the last act in a long con":

The Cruelty and Fraudulence of Mitch McConnell's Health Bill, by Paul Krugman, NY Times: A few days ago the tweeter in chief demanded that Congress enact "a beautiful new HealthCare bill" before it goes into recess. But now we've seen Mitch McConnell's latest version of health "reform," and "beautiful" is hardly the word for it. In fact, it's surpassingly ugly, intellectually and morally. Previous iterations of Trumpcare were terrible, but this one is, incredibly, even worse. ...
The most important change in the bill ... is the way it would effectively gut protection for people with pre-existing medical conditions. The Affordable Care Act put minimum standards on the kinds of policies insurers were allowed to offer; the new Senate bill gives in to demands by Ted Cruz that insurers be allowed to offer skimpy plans that cover very little, with very high deductibles that would make them useless to most people.
The effects of this change would be disastrous. Don't take my word for it: It's what the insurers themselves say. ...
Or to put it another way, this bill would send insurance markets into a classic death spiral. Republicans have been predicting such a spiral for years, but keep being wrong: ...Obamacare ... is stabilizing, and doing pretty well in states that support it. But this bill would effectively sabotage all that progress.
And let's be clear: Many of the victims of this sabotage would be members of the white working class, people who voted for Donald Trump in the belief that he really meant it when he promised that there would be no cuts to Medicaid and that everyone would get better, cheaper insurance. So why ... is there even a chance that it might become law?
The main answer, I'd argue, is that ... conservative ideology always denied the proposition that people are entitled to health care; the Republican elite considered and still considers people on Medicaid, in particular, "takers" who are effectively stealing from the deserving rich.
And the conservative view has always been that Americans have health insurance that is too good, that they should pay more in deductibles and co-pays, giving them "skin in the game," and thus an incentive to control costs.
So what we're seeing here is supposed to be the last act in a long con, the moment when the fraudsters cash in, and their victims discover how completely they've been fooled. The only question is whether they'll really get away with it. We'll find out very soon.

 -- via my feedly newsfeed

Thursday, July 13, 2017

The Work Lives of Uber Drivers: Worse Than You Think [feedly]

The Work Lives of Uber Drivers: Worse Than You Think



Protesting the recent 30% reduction in pay to UBER drivers, a protester covers his face at the protest rally in San Diego, California for fear of being deactivated for showing support against the Tech Corporations decision to reap profits of the back of their drivers.

To be an Uber driver is to work when you want. Or so Uber likes to say in recruitment materials, advertisements, and sponsored research papers: "Be your own boss." "Earn money on your schedule." "With Uber, you're in charge." The language of freedom, flexibility, and autonomy abounds, and can seem like a win for workers.

But the reality of our research shows something very different. The price of flexibility in the gig economy is substantial. Last year we conducted 40 in-person interviews and online surveys with Uber drivers in the Washington, D.C. metro area. Our project—which creates one of the first independent, qualitative datasets about the rideshare industry—found that the economic realities of precarious work are a far cry from the rosy promises of the gig economy. In exchange for flexible schedules, Uber retains near total control over what really matters for drivers, namely the compensation and costs of work.

Aman bought a Lincoln Town Car in 2012 after he been approved to drive for Uber Black, the brand-new private car service. As an Ethiopian immigrant in Washington, D.C., he had supported himself by driving a taxi so he already had the chauffeur license that was then required. In 5 or 6 hours of driving, he earned what would have taken him 8 hours in a taxi. But, not long after he took on the $35,000 loan for the car, Uber changed a policy about how old cars could be, and the Lincoln Town Car no longer qualified. Aman could no longer drive for Uber Black, and he could no longer make his car payments.

Like Aman, many Uber drivers are on a debt-to-work pipeline, taking on a significant financial risk to get the chance to earn a wage. Drivers invest upfront nearly all of the costs of running a car service: the vehicle itself, maintenance, gas, insurance, and taxes. On top of that they incur tolls, parking tickets, "dead miles" (the distance driven while waiting for or driving to pickup a passenger), safety devices (dash cameras and mace), and rider extras (water and mints). And drivers have no guarantees about how much they will earn, when there will be surge pricing, or whether they will come down with an illness and be unable to work. One driver put it this way: "You'd be better off working at McDonald's."

The problem isn't just uncertainty about what drivers can earn. Some also end out in deeper financial trouble by leasing cars from Uber's Xchange program. One driver, Joan, got caught in this trap after she hit a pothole and damaged her car's suspension system. She spent nearly all the money she had to get the car fixed. Then, when efforts to repair the vehicle failed, she spent more to lease a car from Uber. While Xchange offers lower credit barriers than traditional lenders, the payments which Uber automatically deducts from drivers' paychecks, are high. Joan pays $138, more than the national lease average of $100 per week. Another driver we interviewed pays $290 per week and, at the end of her 3-year lease, she will have paid two or three times her car's value. Think company town, or as one of our other drivers said, "indentured servitude." The costs of these subprime leases are exorbitant, but, according to the Federal Trade Commission, Uber has actively deceived drivers about those costs. A Massachusetts Attorney General also found that Uber's former lender charged higher-than-allowed interest rates to drivers in low-income communities.

Along with significant financial risks, Uber drivers struggle to make sense of the company's constantly changing rules and opaque management practices. In the four years it has been operating in Washington, D.C., Uber has reduced its base rate for drivers several times, added a rider safety fee (and then increased it, calling it a booking fee), and raised the commission it takes from new drivers. The rules and details of work for Uber change, sometimes hourly. A majority of the drivers we interviewed reported that their wages have dropped so much that they will only drive during hours when there is likely to be surge pricing or in areas where other incentives give them a better chance of earning decent wages. One driver commented that "They're really playing games with [the rates], and…I don't like that." These games, which are built into the heart of the Uber platform, have a point: to keep Uber drivers on the road and in the dark.

Workers do not know how much they earn largely because of the fluctuating algorithms on which pay is based and the numerous expenses they must deduct. Of the 40 drivers we interviewed and surveyed, only a handful knew what percentage of their fares Uber takes. The majority did not know how Uber determined how much drivers take home on a single ride (whether, for instance, the booking fee is removed before or after Uber takes its commission), whether they are required to buy commercial insurance, or how tax filing works at the end of the year.

Workers also have little information about company decisions. Drivers reported that Uber was not transparent about its policies on both minor issues, like how much a driver would be compensated when a passenger vomits, and major ones, like "time-outs" (penalties for not accepting the right number of rides in a certain time period) and de-activation (permanent suspension). It's a system of "smoke and mirrors," in the words of one driver. Drivers also reported little recourse in disputes with Uber. One driver, Larry, was unsuccessful in recouping a fraction of a fare that he believed Uber wrongly took. He said, "I mean, I'm never going to find a lawyer who's going to take on my case to help me get my $4.71 back, and that's part of the frustration." This experience is not unique. According to the New York Times, Uber has wrongly withheld tens of millions in wages from drivers, though the company has since agreed to repay some of the outstanding wages.

What can be done about the working conditions of Uber drivers? The biggest fix, though the least likely at the moment, would be for regulators to require Uber to treat its drivers as employees, which would mean the company would provide worker protections in line with national labor laws. An easier inroad would be for federal legislators and prosecutors to confront the subprime auto-lending practices that proliferate in the Uber world. Until these two steps are taken, cities should be wary of partnering with Uber for any kind of public transit provision, workers should be wary of driving for Uber, and rideshare users should patronize worker co-operative taxi fleets, or barring that, should tip their drivers — a lot.

Katie Wells, Kafui Attoh, and Declan Cullen

Katie Wells is a Visiting Scholar and Declan Cullen is an Adjunct Professor in the Department of Geography at George Washington University. Kafui Attoh is an Assistant Professor of Urban Studies in the Murphy Institute for Labor Studies at the City University of New York. This research was funded by the Ewing Marion Kauffman Foundation. The contents of this publication are solely the responsibility of the authors. For more information on forthcoming pieces about driver strategies and the rise of Uber in D.C., contact Katie Wells.


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What is the Difference Between the NYSE and Nasdaq? [feedly]

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http://ritholtz.com/2017/07/difference-nyse-nasdaq/


Source: Visual Capitalist

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