Archive for March, 2009

Dave Lindorff: Business Rules — No Democracy, No Decency, No Unions

Posted in Uncategorized, Labor union news & views, Economics by Administrator on March 11th, 2009

http://www.buzzflash.com/articles/lindorff/210

A few days ago, I sent off an article I had just written on assignment to the editor of a magazine that was preparing to run it. A few moments later, I got an e-mail back: he had just been fired and the magazine was being shut down by the publisher. My story, for which I had expected to be paid $1500, was toast.

When I tried to write back a reply to the editor, I got a message saying that my e-mail message was “undeliverable.”

I called the editor (who worked from home) on his cell phone and, still sounding shell-shocked, he informed me that immediately after notifying him, with no warning, that he was being axed, the publisher had eliminated his company e-mail account and had blocked him from accessing the company’s server, thus effectively cutting him off from all the contacts he had developed over his years at the company.

I mentioned this shabby treatment to a couple of guys at lunch the next day, and was told by one that his wife had been laid off from her job only days before. She too had received no notice from her employer and had been given only a couple of hours to clear her desk out and leave the premises, despite her having worked there for over six years.

Welcome to the American business world.

It’s an ugly place where loyalty is rewarded with abuse and relationships are intensely hierarchical, one-sided, and ultimately totally artificial. It is a place where managers do not have to follow the basic rules of human decency by which they, for the most part, live in their private lives.

Across the country, every day, some 20,000 or more American workers are getting sacked these days by managers who are focused on bottom lines and satisfying greedy investors. A shockingly high percentage of these victims of recession and corporate greed get little or no notice. One reason for this shabby and abusive treatment is that companies don’t want word leaking out about their difficulties and their cutbacks. Bad news about layoffs can hurt stock prices, alarm customers, and worry creditors.

Many employers even attempt to block fired employees from collecting unemployment compensation (an employer’s unemployment insurance rate is determined by experience — the greater the number of workers you fire who go on unemployment, the higher your premium). They do this by claiming the worker was fired “for cause.” This forces the sacked worker to appeal and go through a hearing process, all of which can take weeks, with an uncertain outcome.

Often workers who are treated badly by employers who dump them will not complain publicly about their treatment because they need to maintain good relations with their old company so they can get favorable recommendations when they search for new work. Some workers even fear to file for unemployment benefits due them, for fear that it will lead to a bad job recommendation down the road.

These kinds of implied threats are just an extension of another problem: the lack of free speech on the job.

We all grow up learning that here in America, we have freedom of speech. What our teachers don’t tell us when we’re in school is that actually the First Amendment only applies to the relatively short period of time between when we wake up in the morning and the time we go through the entryway of our place of work, and to the time between when we exit the building and when we go home and go to sleep. That eight or nine-hour period of the day when we are on the job, we do not have that First Amendment right to say what we are thinking. Try exercising it, and you can be fired — for cause and with no access to an unemployment check. Think about it a moment: we sleep, if we’re lucky, for eight hours, and work for another eight, so we really only get freedom of speech for a third of each day, and much of that time most of us are alone in a car, or have food in our mouths and can’t talk anyhow. Some freedom!

When you examine this situation, it really closely resembles the medieval institution of serfdom. True, in modern capitalism, the boss doesn’t own you as Lords of old owned their serfs, but the two relationships still have a lot in common.

A serf of old could flee her or his Lord’s estate, and many did. In an era of limited communications, it was at least possible to escape and to find one’s way to a new situation — usually another Lord’s estate. Today, of course, one is free to change jobs. But because employers generally demand references of the people they hire, modern workers need to be careful to maintain good relations with their bosses even if they are abused by those bosses, lest they end up unemployable.

There is one exception to this grim picture, and that is labor unions. On jobs where there are unions, workers have a modicum of freedom from abuse — and a modicum of freedom of speech on the job. A union contract generally establishes the principle of seniority, so employers are not free to simply let go anyone they choose during an economic slowdown. They have to let people go on the basis of seniority — the most recent hires first. This is only fair. With a contract, bosses also cannot fire anyone without cause and without due process and notice. Workers have the right to file a grievance if they are ill treated by management. Within certain bounds, expressing one’s opinion cannot be cause for being fired (though most contracts still allow termination for “insubordination”).

It is this assertion of the personhood of workers, and of their basic freedom to be fully human, as much as the simply fact that unionized workers generally earn more than their non-unionized counterparts, that makes American managers and capitalist owners so virulently anti-union.

If American workers needed a reason to back the Employee Free Choice Act (soon to be considered and voted on by Congress), which would make it easier for them to demand a union and to win a first contract with their employers, and which would finally put teeth in the penalties assessed against employers who violate worker rights, this recession should give it to them. To fully enjoy the freedoms we supposedly are granted by our Constitution, most notably the First Amendment freedom of speech, religion, and assembly, to fully be human beings instead of just serfs, it is essential that every American worker be protected by a collective bargaining agreement.

It is the only way to force employers to behave decently, and to make workers truly free.

DAVE LINDORFF is a Philadelphia-based journalist and columnist. His latest book is “The Case for Impeachment” (St. Martin’s Press, 2006 and now available in paperback). His work is available at http://www.thiscantbehappening.net.

Bringing Democratic Talk Radio to your community

Posted in Uncategorized, Maryland Political News by Administrator on March 5th, 2009

It certainly seems like talk radio grows best if it grows organically and is based in local communities instead of being created from on top nationally. We have been getting many, many requests to bring Democratic Talk Radio to new communities since the first of the year.
Maybe we need to create a Democratic Talk Radio Support Committee in each area:

(1) We can first work on getting financial underwriting from organized labor and Democratic groups in each location and statewide in each state.

(2) We could look at Democratic campaign donor lists and possibly solicit them by phone or mail.

(3) We could ask help finding financial backers or advertisers from Democratic officeholders or candidates.

(4) We could look into fundraising like dinners or other events.

(5) Identify likely radio stations that would sell us time or even better run us free of charge (which permits them to sell ads in our time slot).

In solidarity,

Stephen Crockett

Host, Democratic Talk Radio http://www.DemocraticTalkRadio.com

Email: demlabor@aol.com
Phone: 443-907-2367

P.S.- Our concept is that the first 10-12 communities to get us on the air will get unique 1-2 hour weekly shows. For more hours or later markets, we will probably offer a national syndicated show.

The advantage of being one of the earliest markets is that we can have much, much more local content including local candidates, officeholders, Democratic leaders and union leaders as guests. We can do a better job of covering local events and issues although all markets will get some national figures and content.

Revenge of the Glut

Posted in Uncategorized, Economics by Administrator on March 2nd, 2009

Revenge of the Glut

by Paul Krugman

http://www.nytimes.com/2009/03/02/opinion/02krugman.html?_r=2

Remember the good old days, when we used to talk about the “subprime crisis” — and some even thought that this crisis could be “contained”? Oh, the nostalgia!

Today we know that subprime lending was only a small fraction of the problem. Even bad home loans in general were only part of what went wrong. We’re living in a world of troubled borrowers, ranging from shopping mall developers to European “miracle” economies. And new kinds of debt trouble just keep emerging.

How did this global debt crisis happen? Why is it so widespread? The answer, I’d suggest, can be found in a speech Ben Bernanke, the Federal Reserve chairman, gave four years ago. At the time, Mr. Bernanke was trying to be reassuring. But what he said then nonetheless foreshadowed the bust to come.

The speech, titled “The Global Saving Glut and the U.S. Current Account Deficit,” offered a novel explanation for the rapid rise of the U.S. trade deficit in the early 21st century. The causes, argued Mr. Bernanke, lay not in America but in Asia.

In the mid-1990s, he pointed out, the emerging economies of Asia had been major importers of capital, borrowing abroad to finance their development. But after the Asian financial crisis of 1997-98 (which seemed like a big deal at the time but looks trivial compared with what’s happening now), these countries began protecting themselves by amassing huge war chests of foreign assets, in effect exporting capital to the rest of the world.

The result was a world awash in cheap money, looking for somewhere to go.

Most of that money went to the United States — hence our giant trade deficit, because a trade deficit is the flip side of capital inflows. But as Mr. Bernanke correctly pointed out, money surged into other nations as well. In particular, a number of smaller European economies experienced capital inflows that, while much smaller in dollar terms than the flows into the United States, were much larger compared with the size of their economies.

Still, much of the global saving glut did end up in America. Why?

Mr. Bernanke cited “the depth and sophistication of the country’s financial markets (which, among other things, have allowed households easy access to housing wealth).” Depth, yes. But sophistication? Well, you could say that American bankers, empowered by a quarter-century of deregulatory zeal, led the world in finding sophisticated ways to enrich themselves by hiding risk and fooling investors.

And wide-open, loosely regulated financial systems characterized many of the other recipients of large capital inflows. This may explain the almost eerie correlation between conservative praise two or three years ago and economic disaster today. “Reforms have made Iceland a Nordic tiger,” declared a paper from the Cato Institute. “How Ireland Became the Celtic Tiger” was the title of one Heritage Foundation article; “The Estonian Economic Miracle” was the title of another. All three nations are in deep crisis now.

For a while, the inrush of capital created the illusion of wealth in these countries, just as it did for American homeowners: asset prices were rising, currencies were strong, and everything looked fine. But bubbles always burst sooner or later, and yesterday’s miracle economies have become today’s basket cases, nations whose assets have evaporated but whose debts remain all too real. And these debts are an especially heavy burden because most of the loans were denominated in other countries’ currencies.

Nor is the damage confined to the original borrowers. In America, the housing bubble mainly took place along the coasts, but when the bubble burst, demand for manufactured goods, especially cars, collapsed — and that has taken a terrible toll on the industrial heartland. Similarly, Europe’s bubbles were mainly around the continent’s periphery, yet industrial production in Germany — which never had a financial bubble but is Europe’s manufacturing core — is falling rapidly, thanks to a plunge in exports.

If you want to know where the global crisis came from, then, think of it this way: we’re looking at the revenge of the glut.

And the saving glut is still out there. In fact, it’s bigger than ever, now that suddenly impoverished consumers have rediscovered the virtues of thrift and the worldwide property boom, which provided an outlet for all those excess savings, has turned into a worldwide bust.

One way to look at the international situation right now is that we’re suffering from a global paradox of thrift: around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off.

So that’s how we got into this mess. And we’re still looking for the way out.

10 things you should know about Obama’s plan (but probably don’t)

Posted in Uncategorized by Administrator on March 1st, 2009

Dear MoveOn member,
Want to see what change looks like? Real change?

Well, here it is. Last week, President Obama unveiled his budget—his blueprint for America—and it’s ambitious, amazing, and unapologetically progressive. As Paul Krugman said, it will set America on a “fundamentally new course.”1

President Obama called his budget “a threat to the status quo,” and trust me, the status quo noticed. Oil companies, big banks and insurance companies are already mobilizing to stop it.2

Unfortunately, most folks don’t realize how far-reaching and progressive the plan is—that’s where we all come in.

Here are 10 really incredible things about Obama’s plan. Check them out and then send them on to your friends and family so that millions of people will have the information they need to fight to make this vision a reality.

10 things you should know about Obama’s plan (but probably don’t)

The plan:

Makes a $634 billion down payment on fixing health care that will go a long way toward paying for a more efficient, more affordable health care system that covers every single American.3

Reduces taxes for 95% of working Americans. And if your family makes less than $250,000, your taxes won’t go up one dime.4

Invests more than $100 billion in clean energy technology, creating millions of green jobs that can never be outsourced.5

Brings our troops home from Iraq on a firm timetable, finally bringing the war to a close—and freeing up almost ten billion dollars a month for domestic priorities.6

Reverses growing income inequality. The plan lets the Bush tax cuts for the wealthiest Americans expire and focuses on strengthening the middle class.7

Closes multi-billion-dollar tax loopholes for big oil companies. 8

Increases grants to help families pay for college—the largest increase ever.9

Halves the deficit by 2013. President Obama inherited a legacy of huge deficits and an economy in shambles, but his plan brings the deficit under control as soon as the economy begins to recover.10

Dramatically increases funding for the SEC and the CFTC—the agencies that police Wall Street.11

Tells it straight. For years, budgets have used accounting tricks to hide the real costs of the wars in Iraq and Afghanistan, the Bush tax cuts, and too many other programs. Obama’s budget gets rid of the smokescreens and lays out what America’s priorities are, what they cost, and how we’re going to pay for them.12
This is the change we voted for. President Obama has done his part, now we need to do ours.

Can you pass this on to your personal network and then click here to let us know how many people you told, so we can track our impact together:

http://pol.moveon.org/budget10/?id=15687-2908252-lFvcpmx&t=1

Thanks for all you do.

–Daniel, Tanya, Peter, Justin and the rest of the team

P.S. Turns out there are way more than 10 amazing things in Obama’s budget and we couldn’t resist sharing just a few more.

Stops unnecessary government subsidies to big banks, health insurance companies and big agribusinesses.13,14,15

Expands access to early childhood education and improves schools by investing in programs that make sure every child has a qualified, strong teacher.16

Negotiates for better prescription drug prices using Medicaid’s tremendous bargaining power.17

Expands access to family planning for low-income women.18

Caps the pollution that causes global warming, and makes polluters pay to support clean energy innovation.19

Sources:
1. “Climate of Change,” The New York Times, February 27, 2009
http://www.nytimes.com/2009/02/27/opinion/27krugman.html?em

2. “Obama Calls His Budget Sweeping, Needed Change,” The New York Times, February 28, 2009
http://www.moveon.org/r?r=51201&id=15687-2908252-lFvcpmx&t=2

3. “Obama Offers Broad Plan to Revamp Health Care,” The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-2908252-lFvcpmx&t=3

4. “Obama Expects Fight Over $3.55 Trillion Budget Plan,” Bloomberg News, February 28, 2009
http://www.moveon.org/r?r=51203&id=15687-2908252-lFvcpmx&t=4

5. “Energy Budget Is Sunlight After Eight Years of Darkness,” Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51204&id=15687-2908252-lFvcpmx&t=5

6. “The Economic Cost of War in Iraq and Afghanistan,” The New York Times, March 1, 2009
http://www.nytimes.com/2009/03/01/weekinreview/01glanz.html

7. “Tax Cuts,” The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-tax.html

8. “Energy Budget Is Sunlight After Eight Years of Darkness,” Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51204&id=15687-2908252-lFvcpmx&t=6

9. “Student Loans,” The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-edu.html

10. “Obama unveils budget blueprint,” CNN, February 26, 2009
http://www.cnn.com/2009/POLITICS/02/26/budget/

11. “Obama budget would boost SEC, CFTC, FBI,” Reuters, February 26, 2009
http://www.moveon.org/r?r=51205&id=15687-2908252-lFvcpmx&t=7

12. “Obama’s budget,” Los Angeles Times, February 27, 2009
http://www.moveon.org/r?r=51206&id=15687-2908252-lFvcpmx&t=8

13. “Student Loans,” The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-edu.html

14. “Health Insurance Stocks Dive on Medicare Advantage Cuts,” The Wall Street Journal, February 26, 2009
http://www.moveon.org/r?r=51207&id=15687-2908252-lFvcpmx&t=9

15. “Agriculture,” The New York Times, February 26, 2009
http://www.nytimes.com/2009/02/27/washington/27web-agri.html

16. “Investing Wisely in Our Children,” Center for American Progress, February 26, 2009
http://www.moveon.org/r?r=51208&id=15687-2908252-lFvcpmx&t=10

17. “Obama Offers Broad Plan to Revamp Health Care,” The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-2908252-lFvcpmx&t=11

18. “Obama Offers Broad Plan to Revamp Health Care,” The New York Times, February 26, 2009
http://www.moveon.org/r?r=51202&id=15687-2908252-lFvcpmx&t=12

19. “Setting ‘Green’ Goals,” The New York Times, February 26, 2009
http://www.moveon.org/r?r=51209&id=15687-2908252-lFvcpmx&t=13