Wednesday, April 11, 2018

Harold Meyerson: What Now for Unions ? [feedly]

What Now for Unions ?
https://talkingunion.wordpress.com/2018/04/11/what-now-for-unions/

or conservatives, the much-anticipated Supreme Court decision in the Janus v. AFSCME case may be coming eight years too late. If, as expected, the five Republican justices on the Court rule for the plaintiff, which would end public employee unions' ability to collect dues from all the workers they represent, they will significantly weaken the nation's largest unions, among them the two teachers unions, as well as AFSCME and SEIU. These are also among the most significant organizations in Democrats' voter-mobilization programs and, more generally, in supporting progressive groups and causes. Even more fundamentally, the right plainly hopes such a ruling will also drive the final nail into the coffin of the American labor movement.

While a pro-Janus ruling could strengthen the Republicans electorally, when it comes to killing unions, the right is simply too late. The current configurations of the union movement may well shift, but the growing public support for labor suggests that in one form or another, worker organizations are not going away.

Eight years ago, in the trough of the Great Recession, the nation's view of unions was a good deal more negative than it is today. For the first time since it had begun polling on the issue, the Gallup organization reported that support for unions had fallen below 50 percent. The United Auto Workers' role in securing federal funds to bail out General Motors and Chrysler, and news reports that characterized UAW members as overpaid (which an inept UAW leadership did nothing to refute) contributed to a general decline in union support.

To many Americans, the movement was a dinosaur, a collection of cossetted workers in dying industries or on the public payroll, still collecting pensions while everyone else struggled to get by on 401(k)s or nothing at all.

That, however, was then. Today, both the Gallup and the Pew polls show public support for unions at its highest level in years: 61 percent at Gallup; 60 percent at Pew, a good 20 to 35 percentage points higher than the approval ratings of President Trump and the Republican Congress. Among Americans under 30, unions' approval rating is a stratospheric 76 percent. As was the case in the 1930s, pro-union sentiment has grown only after the recovery was well under way.

At first glance, young people's support for unions is puzzling: With union membership down to 10.7 percent of the workforce, and with many states having hardly any union presence, it's a safe inference that most millennials have had no contact with a union at all. And yet, it's young workers who are joining unions today, as the successful organizing drives among graduate students and the (disproportionately young) journalists at digital media outlets attest. According to the Center for Economic and Policy Research, more than three-quarters of new union members in 2017 were under 35.

Millennials' support for unions, I'd argue, is of a piece with their 2016 support for the presidential campaign of Vermont Senator Bernie Sanders. Both are rooted in the economic adversities afflicting the young, including employment insecurity, student debt, unaffordable housing, and more. These struggles feed millennials' apprehensions that the middle class they seek to join is further out of reach for them than it was for their parents and grandparents.

Unions' new members are not merely younger; they also are increasingly either professional or technical workers. In 2003, 34 percent of all union members were professionals or techs; today, that figure has risen to 42 percent. A recent analysis by The Boston Globe concludes that a majority—51 percent—of union members in the six New England states are professionals or technical workers.

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These occupational numbers are not necessarily good news for unions. Most likely, they reflect the fact that the only workers with the clout to organize are workers who cannot easily be fired for joining a union. It's no accident that professional athletes and screen and television actors have some of the strongest unions; as is not the case with workers in fast-food outlets or on assembly lines, managers can't sack professionals with the assurance that they can find a ready stream of plausible replacements.

This is one reason why West Virginia's teachers won their strike: Even the Republicans who control that state's government knew there was no way to easily replace them.

This is one reason why West Virginia's teachers won their strike: Even the Republicans who control that state's government knew there was no way to easily replace them. Conversely, this is also one reason why the efforts of the Service Employees International Union (SEIU) to organize fast-food workers, while yielding landmark minimum-wage hikes in many cities and states, have yet to increase the union's ranks by a single member. The bosses at McDonald's and their peers know that they can fire their pro-union employees and replace them with no great difficulty, and that any sanctions imposed on them under an enfeebled National Labor Relations Act are negligible. We have no basis for assuming that a young worker in a retail outlet is any less desirous of joining a union than, say, a young professor, but we know that management is emboldened to fire the former and constrained from firing the latter. That's one reason why industrial unions like the UAW and the United Steelworkers have devoted resources to organizing—often successfully—at universities.

The growing share of union members who are both younger and professional is probably one reason why digital mobilization played such a key role in the West Virginia teachers strike, and is so crucial to similar labor actions in Oklahoma and elsewhere. Nearly all of West Virginia's 20,000 teachers were signed on to a strike-participation Facebook page leading up to their walkout, and when the two teachers unions in the state struck a deal with the governor to end the strike in return for a promise of a 5 percent raise, it was the spontaneous Facebook-page resistance of teachers—some local union officials, some not—to going back to work before the deal was actually done that prevailed. Both the universal rank-and-file walkout and, then, the universal opposition to returning to work without a deal would have been impossible without Facebook.

Indeed, it's clear that Facebook provides workers with a form of mobilization that both complements and eclipses unions' own capacities. West Virginia has only 75,000 dues-paying members in all of its unions, and only a fraction of those are teachers—yet nearly every one of the state's 20,000 teachers walked off their jobs. In Oklahoma, a state with a unionization rate of just 5.5 percent, and where all unions claim a bare 84,000 members, a Facebook page called "Oklahoma Teacher Walkout—The Time Is Now!," started by one rank-and-file teacher, has 55,000 members and has been the key instrument for building support for a strike.

As University of North Carolina sociologist Zeynep Tufekci has argued in Twitter and Tear Gas: The Power and Fragility of Networked Protest, the world-shaking mobilizations in New York's Zuccotti Park, Cairo's Tahrir Square, and Istanbul's Gezi Park—all of which she attended—were inconceivable without social media. However, she argues, since the crowds they generated had no organizational structure or capacity to reach decisions, they were incapable of winning concessions from the powers they had assembled to oppose. In that sense, the West Virginia teachers strike occurred within what we might term the Tufekci Sweet Spot: It relied on social media to mobilize mass support, and had just enough decision-making structure provided by the teachers unions (and directed by bottom-up sentiment made clear through Facebook) to strike a deal with the state.

What, then, will the future of workers' movements look like in a time of growing pro-union sentiment, mounting millennial militancy, enhanced mobilization capacity, and the increasing impediments to union strength likely to be decreed by the Supreme Court? The immediate, and intended, effect of a pro-Janus, anti-union ruling will be to diminish and divert union resources, thereby constraining Democrats' electoral capacities (though the anti-Trump surge may compensate for that). In the non-electoral sphere, West Virginia may provide us with something of a template, if chiefly for professional workers. Teachers, not just in Oklahoma but in a range of states, are considering striking for higher pay and benefits. Even where union membership isn't strong, they clearly have the capacity to mobilize, and the material motivation as well: On average, teachers are making more than $3,000 less today than they made in 2009, while their family health insurance costs $1,400 more than it did a decade ago.

As with teachers, so with a rising number of other professional and technical workers whom management can't readily replace—even if, as in West Virginia, the workers' actions take place outside the legal framework of collective bargaining. Indeed, if the Court rules for Janus, which would diminish the number of union members, we may be in for a spate of professional-worker job actions among both members and non-members, in which unions (or, for a preponderantly non-union workforce, pop-up unions) chiefly help frame demands and negotiate the contract—serving less as the mobilizer and more as the closer.

For most American workers, however, the legal impediments to unionizing, already formidable, will grow even more so in a post-Janus world. Should the Democrats recapture the federal government after the 2020 elections, they will need to do something that no Democratic Congress has mustered the will to do in the last 70 years: Change labor law to bolster workers' right to organize—and, if the Democrats can figure out how to do so, do the same for workers who are independent contractors and temps.

They will have strong public backing to make such changes. The anti-plutocratic, pro-democratic politics of the young in particular apply not just to the polity, but to the workplace as well.



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Five strategies to address America’s eviction crisis [feedly]

Five strategies to address America's eviction crisis
https://www.urban.org/urban-wire/five-strategies-address-americas-eviction-crisis

The Eviction Lab recently unveiled a new dataset compiled from court eviction filings and judgments across the US, dating back to 2000.

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Xi’s Strong Hand Against Trump [feedly]

Xi's Strong Hand Against Trump
https://www.project-syndicate.org/commentary/xi-china-trade-war-north-korea-by-bill-emmott-2018-04

Donald Trump's recently announced trade tariffs and upcoming summit with North Korea give China an unprecedented opportunity to prove its strength before the eyes of the world. If Xi Jinping suspects that such a display will bolster China's international standing while undercutting that of the US, he may decide to act accordingly.

LONDON – The world will soon witness a historic test of wills between China and the United States, two superpowers whose leaders see themselves as supreme. In the immediate sense, it will be a battle over trade. But also at stake is the strategic leadership of East Asia and, eventually, the international order. As things stand, China holds a stronger position than many people realize. The question is whether Chinese President Xi Jinping will feel confident or brazen enough to want to prove it.

The test of wills was hardly China's choice; but nor does it come as a surprise. US President Donald Trump's recently announced import tariffs on steel, aluminum, and other Chinese-made goods are in keeping with his brand of economic nationalism. And his decision to accept North Korea's invitation to hold bilateral talks on its nuclear program reflects the same "bring it on" attitude that he applied to the North's earlier threats of war.

The upcoming test will be historic because it promises to reveal the true strengths and attitudes of the world's rising power vis-à-vis the weakened but still leading incumbent power. For better or worse, the result could shape the world for decades to come.

On the trade front, China's large bilateral surplus with the US could mean that it has more to lose from a trade war, simply because it has more exports that can be penalized. It is often said that surplus countries will always be the biggest losers in any tit-for-tat escalation of tariffs and other barriers.

But this assumption misses multiple points. For one thing, China is more economically resilient to the effects of a trade war than it used to be. Trade as a share of its total economic activity has halved in the past decade, from more than 60% of GDP in 2007 to just over 30% today.

China also has major advantages in terms of domestic politics and international diplomacy. As a dictatorship, China can ignore protests by workers and companies suffering from US tariffs. In the US, where mid-term congressional elections will be held this November, the outcry from exporters, importers, and consumers facing higher costs will be heard loud and clear.



Of course, Trump, too, might ignore protests against his trade war if he is convinced that taking on China will please his core voters and win him re-election in 2020. But congressional Republicans will probably feel differently, especially if their states or districts are among those being singled out by Chinese import tariffs.

In terms of international diplomacy, Trump's trade war will help China present itself as the defender of the rules-based international order and multilateral institutions such as the World Trade Organization. To be sure, not all countries would follow China's lead. The WTO does not recognize China as a market economy, owing to the Chinese government's significant involvement in industry and alleged theft of intellectual property.

But China will have a chance to play the victim, while arguing that the US now poses the single largest threat to the global trading system that it helped create. And if a US-initiated trade war drags on, China's case will become only stronger as more countries suffer the disruptive effects of tariffs.

Of course, China may choose not to fight Trump's trade war at all. With symbolic concessions – such as an agreement to import US-produced liquefied natural gas or promises to offer new guarantees for intellectual-property rights – it could convince Trump to stand down. But if Xi suspects that a show of strength will bolster China's international standing while undercutting that of the US, he may decide to act accordingly.

The North Korea issue is more complicated. But here, too, China will have an advantage. Even barring real progress in the talks, China already looks like a good global citizen. Over the past year, it has been pressuring the North Korean leader, Kim Jong-un, to negotiate. By participating in coordinated economic sanctions against the Kim regime, and by reportedly capping vital exports of oil and other essentials to the North, China has played its part in bringing Kim to the table.

On paper, the fundamental question is whether North Korea will be willing to abandon its nuclear-weapons program, the fruit of more than 30 years of work. And as China well knows, North Korea would never give up its nuclear weapons without major changes in the military balance on and around the Korean Peninsula.

Kim will likely offer to denuclearize solely on the condition that the US withdraw its forces from South Korea, and perhaps from Japan, too. Barring that, he would not feel secure enough to do without the nuclear deterrence on which he has staked his regime's survival. For his part, Trump could not possibly accede to such a condition. At best, he could agree on a process through which such extraordinary moves might be discussed at a later date.

Either way, China comes out on top. In the event of stalemate, it will have gotten Kim to the table and put America in the position of being a refusenik. And if the US does agree to any military concessions, China's strategic position will be strengthened.

The only real question for Xi, then, is whether he wants to assert China's top-dog status now, or sometime in the future.



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Bloomberg: China Adds Flesh to Bones of Plan for Big Bang Financial Opening [feedly]

China Adds Flesh to Bones of Plan for Big Bang Financial Opening
https://www.bloomberg.com/news/articles/2018-04-11/pboc-s-yi-pledges-more-steps-to-further-open-china-s-economy


China's plan for an historic opening of its financial sector came into sharper focus as the nation's top central banker elaborated on pledges from President Xi Jinping that have buoyed global markets and eased trade tensions with the U.S.

The daily Shanghai-Hong Kong stock connect quota will quadruple to 52 billion yuan ($8.3 billion) from May 1, People's Bank of China Governor Yi Gang said Wednesday at a panel discussion at the Boao Forum for Asia. More financial-sector opening will be realized by June 30, he said, citing a range of items from limits on foreign insurers to easing foreign ownership caps on securities companies.

The fresh details from the new central bank chief may help further ease trade tensions after Xi's renewed pledges to open sectors from banking to auto manufacturing drew praise from U.S. President Donald Trump. When asked by Bloomberg News whether the financial reforms represented a "big bang," Yi characterized them as gradual.

"I think that the Chinese philosophy is gradualism," Yi said. "I'll be very cautious. I even don't want to use the word 'bang,' no matter if it's big or small. I think this is a prudent, cautious, gradualist move."

Yi's predecessor, Zhou Xiaochuan, used one of his last public appearances to urge the world's second-largest economy to "be bolder in opening up." Wednesday's comments add specifics to those and other recent pledges by Chinese officials to increase access to its financial system.

How China Is Opening Up to Foreign Financial Firms: QuickTake

"This would appear to confirm China's commitment not only to greater openness and access to the Chinese economy but to an acceleration of that process," Callum Henderson, a managing director for Asia-Pacific at research firm Eurasia Group in Singapore, said of Yi's remarks. "This should be well received by markets.'

Stocks in Shanghai rose as concern over the U.S.-China trade dispute eased. Hong Kong Exchanges & Clearing Ltd., operator of the city's bourse, gained as much as 3.7 percent.

What Our Economists Say:

"China is set to accelerate efforts to open up its financial sector," Bloomberg economists Fielding Chen and Qian Wan wrote in a report. "In the context of recent trade tensions with the U.S., the remarks should further dial down risks of a trade war getting out of hand."

When asked during the panel led by Bloomberg Editor in Chief John Micklethwait whether China would be prepared to let its currency decline if there were tariffs, Yi said the exchange-rate system is working well as it is.

"Our exchange-rate system is demand-and-supply determined, with a basket of currencies as reference, and managed floating exchange-rate system," Yi said. "The exchange rate mechanism is a market-determined mechanism, it's working very well, and I think it will continue to work very well."

Yi succeeded Zhou last month to became PBOC governor, sharing responsibility for steering the institution with Guo Shuqing, the Communist Party's secretary at the central bank who concurrently also serves as chairman of the banking and insurance regulator.

Ending restrictions on the business scope of foreign securities firms' Chinese joint ventures will allow them to operate in the same areas as their local counterparts, Yi said. He also said officials aim to start a stock trading tie-up between Shanghai and London this year.

Read More: China Aims For Stock-Trading Link With London This Year

"It's encouraging that the Chinese government is pledging further opening up and advancing reforms at Boao despite the anti-market and anti-globalization trade war rhetoric with the U.S.," said Tao Dong, vice chairman for Greater China at Credit Suisse Private Banking in Hong Kong. "Pushing for further reforms helps the Chinese economy and the global economy."

In Hong Kong, International Monetary Fund Managing Director Christine Lagarde said in a speech Wednesday that countries need to avoid being sucked into a protectionist spiral that undermines the global economy. Without referring directly to the U.S. or China, she warned that import restrictions hurt everyone, especially poor consumers.

For More on U.S.-China Trade Tensions:

China's Xi Pledges Greater Openness Amid Trump Trade Dispute 
How 'Made in China 2025' Frames Trump's Trade Threats: QuickTake 
Trump's Tariffs Target China but U.S. Allies May Be Casualties 
BOJ Veteran Has Lesson for China on Bending to U.S. on Currency

Yi said foreign ownership caps on securities companies, fund managers and life insurers will be fully scrapped in three years. He added that banking regulation will need to be strengthened during the opening-up.

"While the opening up widens foreign capital access and reduces business restrictions, prudent regulation will be applied to businesses with all kinds of ownership," he said. "I'm confident that China's financial market will be a more competitive market, better regulated and also serve the real economy much better, with fair competition and a level playing field."

The economy has been holding up this year with economists surveyed by Bloomberg projecting a gradual slowdown to 6.5 percent from 6.9 percent last year. Inflation data released Wednesday suggest there's little pressure to adjust policy settings.

Read More: Factory Inflation Slows as Consumer Price Gains Ease

On monetary policy, Yi said the interest-rate differential with the U.S. is "in a comfortable range" and that deposit and lending rates will become more market determined. He reiterated that the central bank will continue with prudent monetary policy.

— With assistance by Yinan Zhao, Charlie Zhu, Kevin Hamlin, and John Micklethwait




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Obamacare’s Very Stable Genius [feedly]

Obamacare's Very Stable Genius
https://www.nytimes.com/2018/04/09/opinion/obamacare-trump.html

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Pikety: Rising Inequality and the Changing Structure of Political Conflict


An IMPORTANT PAPER by Piketty.

John
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John Case
Harpers Ferry, WV

The Winners and Losers Radio Show
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Dani Rodrik: Whats Been Stopping the Left?

What's Been Stopping the Left?

Apr 10, 2018 DANI RODRIK


If progressive political parties had pursued a bolder agenda in the face of widening inequality and deepening economic anxiety, perhaps the rise of right-wing, nativist political movements might have been averted. So why didn't they?

CAMBRIDGE – Why were democratic political systems not responsive early enough to the grievances that autocratic populists have successfully exploited – inequality and economic anxiety, decline of perceived social status, the chasm between elites and ordinary citizens? Had political parties, particularly of the center left, pursued a bolder agenda, perhaps the rise of right-wing, nativist political movements might have been averted.


In principle, greater inequality produces a demand for more redistribution. Democratic politicians should respond by imposing higher taxes on the wealthy and spending the proceeds on the less well off. This intuition is formalized in a well-known paper in political economy by Allan Meltzer and Scott Richard: the wider the income gap between the median and average voter, the higher the taxes and the greater the redistribution.

Yet in practice, democracies have moved in the opposite direction. The progressivity of income taxes has decreased, reliance on regressive consumption taxes has increased, and the taxation of capital has followed a global race to the bottom. Instead of boosting infrastructure investment, governments have pursued austerity policies that are particularly harmful to low-skill workers. Big banks and corporations have been bailed out, but households have not. In the United States, the minimum wage has not been adjusted sufficiently, allowing it to erode in real terms.

Part of the reason for this, at least in the US, is that the Democratic Party's embrace of identity politics (highlighting inclusiveness along lines of gender, race, and sexual orientation) and other socially liberal causes came at the expense of the bread-and-butter issues of incomes and jobs. As Robert Kuttner writes in a new book, the only thing missing from Hillary Clinton's platform during the 2016 presidential election was social class.

One explanation is that the Democrats (and center-left parties in Western Europe) became too cozy with big finance and large corporations. Kuttner describes how Democratic Party leaders made an explicit decision to reach out to the financial sector following President Ronald Reagan's electoral victories in the 1980s. Big banks became particularly influential not just through their financial clout, but also through their control of key policymaking positions in Democratic administrations. The economic policies of the 1990s might have taken a different path if Bill Clinton had listened more to his labor secretary, Robert Reich, an academic and progressive policy advocate, and less to his Treasury secretary, Robert Rubin, a former Goldman Sachs executive.

But vested interests go only so far in explaining the failure of the left. Ideas have played at least as important a role. After the supply-side shocks of the 1970s dissolved the Keynesian consensus of the postwar era, and progressive taxation and the European welfare state had gone out of fashion, the vacuum was filled by market fundamentalism (also called neoliberalism) of the type championed by Reagan and Margaret Thatcher. The new wave also appeared to have caught the electorate's imagination.


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Instead of developing a credible alternative, politicians of the center left bought wholesale into the new disposition. Clinton's New Democrats and Tony Blair's New Labour acted as cheerleaders for globalization. The French socialists inexplicably became advocates of freeing up controls on international capital movements. Their only difference from the right was the sweeteners they promised in the form of more spending on social programs and education – which rarely became a reality.

The French economist Thomas Piketty has recently documented an interesting transformation in the social base of left-wing parties. Until the late 1960s, the poor generally voted for parties of the left, while the wealthy voted for the right. Since then, left-wing parties have been increasingly captured by the well-educated elite, whom Piketty calls the "Brahmin Left," to distinguish them from the "Merchant" class whose members still vote for right-wing parties. Piketty argues that this bifurcation of the elite has insulated the political system from redistributive demands. The Brahmin Left is not friendly to redistribution, because it believes in meritocracy – a world in which effort gets rewarded and low incomes are more likely to be the result of insufficient effort than poor luck.

Ideas about how the world works have played a role among the non-elite as well, by dampening the demand for redistribution. Contrary to the implications of the Meltzer-Richard framework, ordinary American voters do not seem to be very interested in raising top marginal tax rates or in greater social transfers. This seems to be true even when they are aware of – and concerned by – the sharp rise in inequality.

What explains this apparent paradox is these voters' very low levels of trust in government's ability to address inequality. One team of economists has foundthat respondents "primed" by references to lobbyists or the Wall Street bailout display significantly lower levels of support for anti-poverty policies.

Trust in government has generally been declining in the US since the 1960s, with some ups and downs. There are similar trends in many European countries as well, especially in southern Europe. This suggests that progressive politicians who envisage an active government role in reshaping economic opportunities face an uphill battle in winning over the electorate. The fear of losing that battle may explain the timidity of the left's response.

Yet the lesson of recent studies is that beliefs about what the government can and should do are not immutable. They are susceptible to persuasion, experience, and changing circumstances. This is as true for elites as it is for non-elites. But a progressive left that is able to stand up to nativist politics will have to deliver a good story, in addition to good policies.



DANI RODRIK


Dani Rodrik is Professor of International Political Economy at Harvard University's John F. Kennedy School of Government. He is the author of The Globalization Paradox: Democracy and the Future of the World Economy, Economics Rules: The Rights and Wrongs of the Dismal Science, and, most recently, Straight Talk on Trade: Ideas for a Sane World Economy.

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John Case
Harpers Ferry, WV

The Winners and Losers Radio Show
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