Curbing Radical Nationalism the Finnish Way [feedly]

Curbing Radical Nationalism the Finnish Way
http://www.globalpolicyjournal.com/blog/12/12/2017/curbing-radical-nationalism-finnish-way

In the wake of the rise of nationalist sentiments in Western nations, Senni Salmi examines how Finland arrived at its inclusive narrative.

The term nationalism is not in fashion. Right-wing populism attached with ethnonationalism has gained ground in several European countries, which has made many liberals associate nationalism with racism. The big nationalist march held in Poland a few weeks ago raised concerns among Europeans due to the high number participants hailing from fascist and far-right backgrounds.

Rejecting this type of radical nationalism, which is exclusionary and tends to favor isolationist policies, should not lead to the conclusion that promoting nationalism is a bad thing. We need to look beyond the far right parties and recognize that nationalism is a valuable means for achieving social cohesion. In light of Finland's 100th anniversary on December 6th, this article seeks to explain why today's Finnish nationalism, which is based on a set of core values rather than ethno-cultural notions, is both inclusive and uniting in the face of internal and external threats.

Rethinking the concept

Fears of nationalism in its radical form are warranted, and those who are concerned should not let not let nationalism be defined by radicals. Then how can a country develop a shared sense of national consciousness that promotes equality and inclusion?

Sir Paul Collins has argued that a sense of shared national identity is important in order to foster and maintain the high levels of generosity and compromise that European countries are known for. However, this shared identity cannot be political or religious and therefore it needs to transcend political divisions and religious pluralism in favor of a broader and more inclusive community. Inclusive nationalism, seen as a political agenda, is currently not realized according to Collins because "the left lacks the will to nationalism; the right lacks the will to inclusion". His thoughts should be an eye-opener for center-right and center-left parties. Lawrence Summers has also put forward an idea about how to pursue a third way between dangerous ethnonationalism and abstract globalism, which he calls responsible nationalism. His suggestion is to put more emphasis on maximizing the welfare of the citizens, rather than pursuing the abstract global good. These proposals on how to rethink nationalism are important for those who shape political agendas, but the Finnish example urges citizens and voters around Europe to consider what kind of actions and values actually make their countries strong.

The important question to ask oneself is whether convictions and symbolism are more important than cooperation and freedom. Sometimes, strong ideals can cause political leaders to put their party before their country and stand in the way of cooperation. This applies not only to far-right parties but also idealists, who aim to make their internal political philosophy the goal of foreign policy.

With a broad, shared national consciousness, people will be predisposed to work together to defend the country's freedom and common ideals. This means that everyone's voice is heard and that the checks and balances are held in place, but also that idealist approaches sometimes need to be abandoned for the sake of national security. Opinions on energy, defense forces and international treaties will always vary, but in critical situations politicians should be able to set aside party divisions.

The Finnish example

Finland has had its share of far-right fringe movements as well as a populist party in government. However, the dominant form of nationalism in Finland has little to do with opportunistic groups that exploit nationalist rhetoric.

After 100 years as an independent nation, Finland appears remarkably stable as it heads into the future. This stability stems from the institutions and the citizens, who trust in their institutions as well as in each other. The Finnish institutions are inclusive, and give everyone a seat at the table.

Finland is committed to protect minority groups, and both the Swedish-speaking Finns and Sami have a special place in the constitution. The public authorities must provide for the cultural and societal needs of the Finnish and Swedish speakers on an equal basis, and the indigenous Sami have linguistic and cultural self-government.

Constitutional democracy is not only majority rule, but also protection of minorities. At the same time it is vital for cohesion and political unity that there is something that unites people beyond their cultural group affiliations, and that something is citizenship. At the end of the day you can be a Swedish-speaking Finn or Romani Finn, but you are first and foremost a Finn.

Inclusive institutions do not only function as a uniting platform for all citizens, but also play a crucial role in shaping shared values. Attachment to the values of equality and freedom, rather than ethnicity is characterizing for the shared identity. Public institutions that enjoy the respect and trust of citizens lead by example.

First and foremost, the Finnish education system fosters the individual potential of all students, while at the same time promoting equality. Students are not separated into different classrooms on the basis of their performance, and additional help is provided to those who need it. Education is given in both Finnish and Swedish, and although the languages of instruction differ, the curriculum is the same.

The endorsement of multiculturalism is part of the curriculum guidelines, and students are allowed to retain their foreign language, but for them too, a Finnish perspective and values are embraced.

The Finnish Defence Forces is another prime example, as most men are required to serve 6 to 12 months of military service, and women can also apply for voluntary military service. These types of institutions bring citizens of different backgrounds together and teach them solidarity, regardless of ethnicity and socioeconomic background.

To a great extent this unity could fit the description of constitutional patriotism, the idea that people are united by attachment to democratic and constitutional values, but it is questionable whether this type of attachment can be strong enough to generate the kind of solidarity and willingness to defend one's country that prevails among Finns. In the end, the role of emotions like empathy and trust toward fellow citizens – captured in so many beautiful Finnish proverbs – is equally important. The Finnish proverb "kaveria ei jätetä" – no friend is left behind (wounded or even dead brothers in arms are always brought home) – which originates from the Winter and Continuation wars, has a special place in the Finnish mindset. As in school, nobody is left behind in the military. To this day, the main reasons behind the great unity among conscripts are the guiding ideas of helping the weak, and working together.

A shared vision for security

National security is an issue that unites Finland across political affiliations. In a time of emerging threats such as information warfare, that increasingly target the individual, it is important for states to spread security awareness among all citizens.

Defense is viewed as a collective responsibility in Finland, and the willingness to defend the country is the highest (71%) in Finland among all European countries. Stories about the Finnish soldiers who fought back the Soviets have left a legacy of heroism that continues to inspire a high commitment to defend freedom. The collectivism is played up strongly in everything related to security. At the end of the day, being a Finnish citizen trumps other political identities, and this allows for cohesion in matters of national defense. The Finnish example suggests that a balance between individualism and collectivism is possible.

Finnish political institutions create conditions for inclusive and consensus-based political decision making, and offer a potential lesson for other countries as well. A long tradition of consensuality and coalition governments does facilitate this, but it is not a must – a shared view of national security and willingness to cooperate on fundamental questions is enough.

The last few years have shown that underestimating the importance of cohesive defense policy can lead to rash decisions. The return of geopolitics came unexpectedly for many European countries, forcing them to reevaluate their readiness, while Finland had remained determined to keep its territorial defense credible. Many neighboring countries had to realize that it is easy to lose defense capacity, but not to rebuild it. As a solution, NATO deployed additional troops in the Baltic States, and both Sweden and Lithuania recently reintroduced military conscription over security concerns. Defense policy needs to be continuous and stable, which is a feat more easily achieved with an underlying vision that everyone agrees on.

"Together"

Undoubtedly, a shared past and certain traditions have a role in shaping the Finnish national consciousness, and the Independence Day celebration is a good example of this. Many pay visits to war graves and light candles. Invoking the sacrifices of past generations do not in the case of Finland contribute to a national anger toward foreigners, but serve as a reminder of the gratitude for freedom. The courageous soldiers, but also citizens, politicians and diplomats are to thank for delicately performing a balancing act, and for fighting for what they believe in.

The Finnish independence centenary celebrations have mostly involved typical Finnish traditions, but there has been less debate about what actually constitutes Finnishness. More thought has been given to what Finland will look like in ten or even 100 years from now, and what Finland aspires to be like. The theme of this year has been "together", and the celebrations have shown that the way forward is by fostering an inclusive civil society. Celebrations have been inclusive in the sense that they have been very diverse, and naturally, open to the public.

To conclude, Finland would not be this strong and perseverant without an inclusive system of institutions, trust for one another and the widespread willingness to set aside disagreements in order to cooperate for the sake of a greater good. Thus, the Finnish example shows that nationalism need not be dismissed as a problem, but can in fact be put to more constructive ends than is currently the case in much of the Western world.

 

 

Senni Salmi is a visiting fellow at the Center for Transatlantic Relations. Co-written with Emanuel Örtengren, Visiting Fellow, and Oscar Karlsson, Finnish reservist and student. This post first appeared on the Center for Transatlantic Relations'  blog and is reprinted with permission. 

 -- via my feedly newsfeed

Dean Baker: Mick Mulvaney and the Bad Actors Club [feedly]

Mick Mulvaney and the Bad Actors Club
http://cepr.net/publications/op-eds-columns/mick-mulvaney-and-the-bad-actors-club

Mick Mulvaney and the Bad Actors Club

Dean Baker
Truthout, December 11, 2017

See article on original site

Most people have probably heard about Mick Mulvaney's seizure of the Consumer Financial Protection Bureau (CFPB) as Donald Trump's appointed "acting director." They probably don't realize quite how outrageous this move is.

First, it is worth noting that Mulvaney openly holds the CFPB in contempt. When he was still in the House of Representatives, he referred to it as a "joke." Mulvaney has made it clear that he would be happier if the CFPB did not exist. Appointing him as acting director is a bit like selecting a hardcore atheist as the next pope.

It is also worth placing the CFPB in a larger economic context. The CFPB's general purpose is to protect people who are less financially sophisticated from predation by the financial industry. While it does perform this purpose, it also is working to make the financial industry more efficient, insofar as it succeeds in this effort.

Remember, the economic purpose of the financial industry is allocate credit to those who need it. In principle, we want to use as few resources as possible in this process. If we only need 1 million people rather than 2 million people to issue and service loans and perform other financial operations, then we have freed up a million people to work in health care, education or other productive sectors of the economy.

If financial corporations think they can make lots of money by writing deceptive contracts and abusive practices towards their customers, we know they will devote lots of resources to writing deceptive contracts and engaging in abusive practices. If the CFPB can shut down this avenue for making profits, then the people working in the financial sector will actually be focused on providing customers a service, rather than ripping them off. This is a gain to the economy as a whole.

Trump's decision to appoint Mulvaney was obviously intended to neuter the CFPB and reopen the door to all sorts of predatory practices. In carrying through this appointment, Trump was not only circumventing the order of succession laid out in the law creating the CFPB, he was also undermining the explicit intention of Congress for the CFPB to be an independent bureau.

No one disputes that President Trump has the right to appoint the replacement for outgoing director Richard Cordray. However the law is written so that he would have to nominate someone who would go through the Senate approval process. This means that Trump's candidate would have to make various disclosures and undergo questioning by members of the Senate.

Furthermore, once the nominee was approved by the Senate, he or she could only be removed for cause. Trump would not have the authority to remove his pick to the head the Bureau simply because he disapproved of their decisions in this capacity.

By contrast, Mulvaney has made no disclosures and was not subject to any questions from the Senate. He also has no independence from President Trump. He can be removed any day of the week for any reason. In fact, since Mulvaney's day job is running the Office of Management and Budget, where he also serves at the will of the president, he risks being fired from two jobs if he does anything that gets Donald Trump angry.

The use of an acting director, in this case, is not an accident. Cordray's plans to leave the CFPB before his term ends next summer were widely reported in the media. There is no reason that Trump could not have had a successor already selected whose name could be given to the Senate as soon as Cordray formally announced his resignation. Trump chose to go the Mulvaney acting director route precisely to circumvent this process.

Unfortunately, this is not the only case where Trump has appointed "acting" officials to head nominally independent agencies, thereby avoiding the constitutional requirement for the Senate to give its "advice and consent." Keith Norieka, a person who had a career in the financial industry, with no regulatory experience, served as acting comptroller of the currency for six months, just recently being replaced by Trump's nominee for this position.

Perhaps even more disconcerting is Trump's selection of David Kautter as acting director of the Internal Revenue Service (IRS) when the term of the previous director ended November 13. Here also, there is no excuse for not having a nominee to submit to the Senate. The expiration of the IRS director's term is set in law, so Trump's team knew about this opening the day he was elected.

As is the case with Norieka, Kautter has no experience in enforcement. His background was in running tax avoidance scams at one of the country's largest accounting firms. And, this acting director of an ostensibly independent agency, like the other acting agency heads, can be fired by Trump any day of the week for any reason.

Congress could put a stop to this abuse of the authority to appoint "acting" heads of agencies and departments. There is not much ambiguity about the words "advice and consent," and there is neither with these and other acting appointees. But the Republicans in Congress don't really care much about the Constitution because right now, rich people need tax cuts.

 -- via my feedly newsfeed

Bernstein: Catching up on links [feedly]

Catching up on links
http://jaredbernsteinblog.com/catching-up-on-links/

A number of pieces you might want to check out:

–I use the Illinois gubernatorial election, dominated by candidates with $ to burn, to raise concerns about money in politics: are these elections or auctions?

–The Trump admin is stealthily taking down the guardrails intended to regulate against the shampoo economy: bubble, bust, repeat. Over at the NYT.

–Riffing off of last weeks employment report, which showed solid job growth but weak wage growth, I use a simple model to show nominal wage growth should be faster given our low unemployment rate.

Source: BLS, my analysis

In my brevity re the above post, I left out a key factor right now that's partially holding back nominal wage growth: slow productivity growth. That shaves about half-a-percent off the forecast, but it doesn't fully explain the gap. On the other hand, in a more detailed model, Fed Chair Yellen finds slow productivity growth largely offsets diminished slack.

Measurement aside, the point is that slow productivity growth is a clear drag on wage growth. In that regard, if the recent acceleration in productivity growth should hold–it's way too soon to tell–that should bump up wage growth. However, as I've argued forever, in our age of inequality, what helps at the average doesn't fully pass through to the median.

 -- via my feedly newsfeed

Recovery Radio:Podcast: Recovery Radio - Dec 12, 2017 -- The Pontifex Unit

John Case has sent you a link to a blog:



Blog: Recovery Radio
Post: Podcast: Recovery Radio - Dec 12, 2017 -- The Pontifex Unit
Link: http://recovery.enlightenradio.org/2017/12/podcast-recovery-radio-dec-12-2017.html

--
Powered by Blogger
https://www.blogger.com/

Paul Krugman: Trump and Ryan Versus the Little People

----
Paul Krugman: Trump and Ryan Versus the Little People // Economist's View
http://economistsview.typepad.com/economistsview/2017/11/paul-krugman-trump-and-ryan-versus-the-little-people.html

"The end result of this tax bill would be to leave most working Americans, even those who wouldn't face direct tax increases, worse off, all for the benefit of a tiny minority":

Trump and Ryan Versus the Little People, by Paul Krugman, NY Times: According to news reports, Donald Trump wanted the House Republican tax "reform" bill to be called the Cut Cut Cut Act. Alas, he didn't get his wish, and it was instead given a boring name nobody can remember. But there's still time to change it! So let me propose, as one reader suggested, that it be renamed the Leona Helmsley Act, after the New York hotelier convicted of tax evasion, who famously declared that "only the little people pay taxes."

That, after all, is the main thrust of the bill. It hugely favors the wealthy over the middle class, which is pretty much always true of Republican proposals. But it's not just about favoring high incomes: It also systematically favors people who live off their assets, especially inherited wealth, over the little people — that is, poor shlubs who actually have to work for a living. ...

So when Gary Cohn, Trump's top economic adviser, says that the bill's goal is "to deliver middle-class tax cuts to the hard-working families in this country," he's claiming that up is down and black is white. This bill does little or nothing for the middle class, and even among the affluent it's biased against those who work hard in favor of the idle rich.

Also let's not forget that tax increases on working Americans are only part of the story. This bill would also, according to the Congressional Budget Office, add $1.7 trillion to the national debt over the next decade. You know what that means: If this bill or anything like it passes, Republicans will immediately revert to their previous pretense of being deficit hawks and start demanding spending cuts.

And since federal spending is dominated by programs — Social Security, Medicare and Medicaid — that benefit the middle and working classes, the end result of this tax bill would be to leave most working Americans, even those who wouldn't face direct tax increases, worse off, all for the benefit of a tiny minority, especially those who haven't even worked for their wealth.

You might wonder how Republicans imagine that they can get away with this. But anyone who has paid attention to U.S. politics knows the answer. First, they will lie, unashamedly, about what their bill actually does. Second, they will try to distract working-class voters by stoking racial animosity. That didn't work too well in Tuesday's elections, but they'll keep on trying.


----

Read in my feedly.com

Penn Loh (YES! Magazine) Capitalism Is Not the Only Choice

I post this piece of hippie anti-capitalism out of personal appreciation for the agonizing nights that petty-bourgeois disillusionment with commodity relations can consume. Not quite the agony of most working class folks for whom disillusionment with commodity relations manifests as desperation with the means of life denied. Cash -- the ultimate and universal commodity -- remains more than ever before, not less, existential, i.e. the means of life, for the overwhelming majority of working people performing occupations other than primitive agriculture. We are bound by commodity relations as never before, not only in our own nation, but  to peoples from all over the world,  to the creators and consumers of the values (services and products ) required for our survival -- and who share the hope of a path to prosperity for billions of souls.  Capitalism, as an economic system, is NOT REALLY A CHOICE. It came into being when a sufficient social surplus, technical base and human capital combined to make it possible for markets -- and production for the purpose of exchange -- to steadily replace and overcome more primitive feudal relations.  To escape capitalism, commodities must be superseded by free or very cheaply provided requirements for life: food, shelter, clothing, education, health care, transportation, etc. Services and intangibles are poor commodities (lousy stores of value) and will no doubt thrive in the absence of commercial markets -- they already do in limited areas (e.g. open source software, non-profits, etc). But the commodity problem can only be partially solved at our present level of culture and technology. Not a few "socialist revolutions" have found that economies cannot be commanded to move beyond what is objectively possible with a given historical context. This is especially true of the division of labor. Ordering farmers to make steel in their backyard out of patriotic enthusiasm does not work. That solution, for now, is social democracy (part socialism, part capitalism) -- but freed of its chief historical defect -- nationalism. Working people all over the world must find the paths of global cooperation and integration that lift all boats. There is no other way. Nature will teach us that -- either benevolently, or harshly -- that part is our choice.

Have a good holiday

John

Capitalism Is Not the Only Choice

We have opportunities every day to build economies that lift each other up and spread joy.




Penn Loh posted Nov 14, 2017

Since the breakup of the Soviet bloc and China's turn toward free markets, many economists have pronounced an "end of history," where capitalism reigns supreme as the ultimate form of economy. Perhaps "there is no alternative" to a globalized neoliberal economy, as former British Prime Minister Margaret Thatcher often said. Indeed, free markets in which individuals compete to get what they can while they can are glorified in popular culture through reality shows such as Shark Tank.

So, are we trapped in capitalism? While many of us may want a new economy where people and planet are prioritized over profit, we remain skeptical that another world is really possible. We make some progress locally but then feel powerless to affect national and global forces. Too often "the economy" is equated with markets where corporations compete to make profits for the wealthiest 1 percent and the rest work for a wage or salary (or don't make money at all). Work itself is seen as legitimate only if it legally generates income. Value is measured only in money terms, based on what people are willing to pay in the market. The capitalist mindset also separates economy from society and nature, as if it exists apart from people, communities, government, and our planet. Economy is its own machine, fueled by profit and competition.But many of us in the 99 percent are not feeling so happy or secure about this economy's results. Many are working harder and longer just to maintain housing and keep food on the table. Even the college-educated are mired in student debt, keeping the American Dream beyond their grasp. And then there are those who have never been served well by this economy. African Americans were liberated from enslavement only to be largely shut out of "free" market opportunities. Immigrants continue to work in the shadows. Women still earn only about three-quarters of what men make for the same work.

When everything that we label "economic" is assumed to be capitalist—transactional and market-driven—then it is no wonder that we run short on imagination.

Redefining economy beyond capitalism

To escape this "capitalocentrism," we need to broaden the definition of economy beyond capitalism. What if, instead, economy is all the ways that we meet our material needs and care for each other? And what if it's not a singular thing? Then we would see that beneath the official capitalist economy are all sorts of thriving non-capitalist economies, where there may not be a profit motive or market exchange. They include tasks that we do every day. We care for our children and elderly; we cook and clean for ourselves and each other; we grow food; we provide emotional support to friends. These are all ways of meeting our material needs and caring for each other.

For many, these economies, which foster solidarity and are rooted in values of democracy and justice rather than maximizing profit, are invisible or not recognized as "economic"; they are merely how we go about our lives. Capitalist thinking blinds us to these economic activities, some of which make survival possible and life meaningful. These non-capitalist ways also add up to a significant portion of all economic activity. Economist Nancy Folbre from University of Massachusetts Amherst estimates that unpaid domestic work (historically considered "women's work") was equal to 26 percent of the U.S. gross domestic product in 2010.

Recognizing these diverse economies allows us to see that there are choices to be made.

Broadening the definition of economy also puts people back into the system and empowers us. Economy is not just something that happens to us, a sea in which we swim or sink. Rather we are all part of multiple economies, some in which we are the main actors—such as our household economies—and others in which we are the extras—such as venture capital markets.

Recognizing these diverse economies and lifting the veil of capitalocentrism allows us to see that there are choices to be made, ethics and values to be considered. For example, I might pay more for lettuce from a local farmer who grows sustainably rather than from a distant supplier that exploits farm workers and uses pesticides. These choices are not only made as consumers, but also as workers, producers, and neighbors, and through policies that set the rules necessary for any economy to function. Do I work for a for-profit owned by shareholders or for a worker-owned cooperative, nonprofit, or B corporation? Should public land be used for luxury condos or for affordable housing? These questions open space for all of us to participate in shaping our world and the economic futures of the 99 percent.

Solidarity is rising

Across the U.S., from Jackson, Mississippi, to Oakland, California; in rural Kentucky and on Navajo-Hopi lands; and throughout Massachusetts' biggest cities, it is often poor communities and communities of color that are building solidarity economies around these questions. This is not new. In fact, this is where solidarity economics—collective strategies for survival—have been innovated out of necessity. Think mutual aid, community organizing, self-help, and cooperatives of all kinds. These practices have been embedded in Black liberation movements, the early labor movement, and many other progressive movements in the U.S.

Old Window Workshop trainee Shaniqua Dobbins carries a window panel from a historic building in downtown Springfield, Massachusetts.

The desire for deep, transformational change—for the multitude of solidarity economies to add up to something—comes not just from those who are dissatisfied, but even more so from communities that are simply struggling to survive. Dreams of a decent life and a fair shake come from those making Black Lives Matter, from immigrant workers making poverty wages, from ex-prisoners locked out of the mainstream economy, from tenants barely able to make rent, and from communities being displaced to make way for the 1 percent.

Springfield is Massachusetts' third-largest city, and here the Wellspring initiative is building a network of worker-owned cooperatives to create local jobs and build wealth for low-income and unemployed residents. Inspired by the Cleveland Evergreen Cooperatives, which has built a network of worker-owned businesses to provide goods and services to the region's anchor institutions, Wellspring was founded in 2011 to try to capture some of the $1.5 billion spent by its own anchor institutions, such as Baystate Health and University of Massachusetts Amherst. One study showed anchors procure less than 10 percent from local businesses.

Solidarity economics is more than just cooperatives. It is a social justice movement.

Its first cooperative, Wellspring Upholstery, was launched in 2013 and now has seven workers. Wellspring Upholstery was the first business to be developed, in part because a successful 25-year-old upholstery training program run by the county prison could provide trained workers. Wellspring's second cooperative is Old Windows Workshop, a women-owned window restoration business. A main goal of this business, according to production manager Nannette Bowie, is to allow "the flexibility of a working mom to take care of your family responsibilities and keep a full-time job."

Wellspring raised almost $1 million to start its third business, a commercial greenhouse, which will produce lettuce, greens, and herbs for the local schools and anchor institutions. Construction began during the summer. With several businesses underway, Wellspring is demonstrating viable models they hope will inspire others and grow the job base and wealth-building opportunities for low-income and unemployed residents.

Wellspring Upholstery Cooperative worker-owners "Joel" Carlos Orria-Fontanez, Evan Cohen, Tina Pepper, Gary Roby, and Jose Serrano in their workshop.

Wellspring is just one example of solidarity economies that are emerging in Massachusetts. In Worcester, the state's second-largest city, the Solidarity and Green Economy Alliance is cultivating their own ecology of more than a dozen cooperatives. Some are matching resident skills to meet community needs, such as landscaping, soil remediation, honey production, and urban agriculture. Others are providing services to movement organizations, such as translation, video production, and bookkeeping. In Boston's Roxbury and Dorchester neighborhoods, a food solidarity economy is emerging, which includes a community land trust, urban farms and a greenhouse, a kitchen incubator, a consumer food co-op, and a worker-owned organics recycling company. And Latinx residents of East Boston have formed the Center for Cooperative Development and Solidarity. Concerned about rapid gentrification, the group began exploring how economic alternatives could help them stay in East Boston. They are supporting startup cooperatives in child care, sewing, and cleaning. The Boston Ujima Project was just officially launched in September to build a community capital fund where a participatory budgeting process is used to make investments in local businesses.

Consciousness, power, and economy

Yet solidarity economics is more than just cooperatives. It is a social justice movement. It is shifting our consciousness not only to uncover root causes, but also to expand our vision of what is possible, and to inspire dreams of the world as it could be. It is building power, not just to resist and reform the injustices and unsustainabilities produced by current systems, but ultimately to control democratically and govern political and economic resources to sustain people and the planet. And it is creating economic alternatives and prototypes for producing, exchanging, consuming, and investing in ways that are more just, sustainable, and democratic.

If we want to transform and go beyond capitalism, then we must confront it in all three of these dimensions: consciousness, power, and economy.

We do not have the luxury of creating solidarity economies in a vacuum. That means that we have to put them into practice now at home and in our own communities, no matter how small the scale. At the same time, we can work with others to build larger solidarity alternatives and do the hard work of reforming the political, economic, and ideological systems that are making life so difficult for so many.

Everyone can put solidarity values into practice—to live in solidarity—starting in whatever ways we can. And that is the transformative power of solidarity economics, that it doesn't have to scale up only by building larger and larger organizations and systems. It can scale up by many people in many places pursuing economics of social justice. It will require taking back government to dismantle the systems that privilege capitalism and to redirect public resources toward solidarity economies. We can all begin by spreading the word, sharing our radical imagination of the world that we want to live in.

--

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.

Check out Socialist Economics, the Enlighten Radio website, and 

The Poets and Mechanics Quaker Worship Group

Jobs report: Another strong month as payrolls settle into solid trend, but wage growth still underwhelms [feedly]

Jobs report: Another strong month as payrolls settle into solid trend, but wage growth still underwhelms
http://jaredbernsteinblog.com/jobs-report-another-strong-month-as-payrolls-settle-into-solid-trend-but-wage-growth-still-underwhelms/

The US labor market continues to add jobs at a strong clip, as robust consumer demand is generating a virtuous cycle of job growth, increased weekly hours, wage growth (though see ongoing caveats below), and hiring. Payrolls were up by 228,000 last month, above expectations for about 190,000. The unemployment rate held steady at 4.1 percent, a 17-year low.

Our official monthly jobs smoother filters out some of the noise in the payroll data by taking monthly averages over the last 3, 6, and 12 months. The fact that the bars are all about the same height reveals the underlying trend in job growth to be around 170,000 per month, a healthy pace for this stage of the recovery. As labor markets close in on full employment, job growth slows a bit as workers become more scarce.

However, given the movement of other key variables, namely, wages and prices, the full-employment, full-resource-utilization case cannot yet be made, as I show below.

Once again, hourly wage growth is a sore point. The two figures below show yearly wage growth for all private-sector workers and for the 80% of the workforce that's blue-collar in goods production or non-managerial in services. In both cases, the 6-mos moving average reveal a flattening trend. Basically, in 2015-16, the tightening job market drove wage growth up from 2 to 2.5 percent, around where it has been stuck since. In fact, that's precisely last month's yearly growth rate for all private workers (2.5%). Given the consumer inflation has been running at around 2%, that's but a small hourly wage gain in real terms, and certainly less than I'd expect given a 17-year low in the jobless rate.

 

That said, other series show stronger wage growth, as Dean Baker and I point out here, especially for middle-wage and minority workers, so the jury's not in on the mystery of the missing wage growth. All told, in a series that mashes together 5 different wage series (which I'll post later) we see a mild acceleration, but again, less than would be expected.

Also, hours worked per week ticked up last month and weekly earnings were up 3.1%, the strongest weekly growth rate since early 2011.

One theory is that the job market is pulling less skilled and experienced workers in from the sidelines, and this is holding down wage growth. But the Atlanta Fed tracker, which tries to control for this, doesn't show much acceleration either.

All of this creates a challenging dynamic for the Federal Reserve. The next figure shows how the current unemployment rate of 4.1% is below the rate the Fed's "natural rate," i.e., the lowest jobless rate consistent with stable prices. But neither prices (core PCE, the Fed's preferred gauge), which recently went through a bout of DEcelleration, nor wages, are responding much at all to low unemployment.

Are there, then, measures of labor demand that do not show a fully tight labor market? In fact, labor economists consider the employment-to-population ratio of prime-age (25-54) workers is a quick proxy for this question. This rate fell from about 80% before the last recession to 75% at its trough. It's now at 79% so it has clawed back about three-quarters of its losses. In other words, it's possible that the labor force still has some room-to-run and that labor demand, as strong as it is, still hasn't exhausted labor supply.

Turning to sectors, manufacturing had a strong month, picking up 31,000 factory jobs last month. So far this year, manufacturing employment is up an average of 16,000 per month, compared to about zero last year. That's partly due to stronger growth abroad pulling in more of our exports, but the dollar has gained strength of late, and that could dent these gains going forward, as the stronger dollar makes our exports more expensive relative to imports.

Retail trade stores added about 19,000, which is the biggest gain for the sector in a year. The strong job market could help the sector as the holiday season gets underway, but brick and mortar stores are of course in heated competition with online sellers. (Note: these data are adjusted for seasonal hiring effects, so any gains reflect jobs added above the usual seasonal pattern.)

Surely, some politician will say something foolish about how the solid November report reflects the tax cut that's working its way through the Congress. If I could, I'd issue fines for such statements ($1.5 trillion sounds about right). As the smoother graph shows, we're right on a trend that's been ongoing for years now. As noted, there's real momentum in the economy, with job gains, if not much in real hourly wage gains, boosting household incomes.

The challenge for policy makers, especially at the Fed, is to not get spooked by the strong quantity numbers (jobs) when the "price" measures–wages and inflation–are not flashing red at all.

 -- via my feedly newsfeed