Thoughts For Labor Day

Labor Day would seem to be an appropriate time to consider the massive changes that have transformed the American workplace and diminished the bargaining power of workers–one major reason for the enormous gap between the rich and the rest. (It may also be an appropriate time to worry about the continuing replacement of human workers by automation.)

The changing face of the workplace–and especially the enormous growth of the “gig” economy– are barriers to organizing; the reality is that it is increasingly unlikely that unions will ever be the guarantors of fair employment practices that they once were.

If it is the case that most labor unions cannot be revived, the question becomes: how do we bring back workers’ power? How do we arrange the economic landscape so that workers can tell their employers to go take a hike if they offer insultingly low wages or dangerous working conditions? How do we level the playing field between employee and employer–especially large employers?

There is one answer, and it is audacious. We could empower workers (and solve a lot of other problems) by enacting a universal basic income. (Alfred Yang won’t be President, but he isn’t wrong.)

As an article in Forbes, of all unlikely places, pointed out, a universal basic income creates bargaining power by increasing all workers’ capacity to refuse a raw deal. The article points out that a UBI acts to increase workers’ “reserve price” — the minimum each worker must be paid before she is willing to accept a given job with particular working conditions.

A UBI is a more flexible means of improving the bargaining power of labor than either unionization or a minimum wage, because it allows workers to drive a harder bargain. It would also have the same effect on the economy as a higher minimum wage–it would increase both workers’ disposable income and economic demand.

A UBI appeals to both liberals and conservatives. Liberals champion it as a better approach than America’s inadequate and demeaning safety net programs; libertarians embrace it because it avoids legally-imposed, one-size-fits-all measures, allowing firms and individuals the freedom to negotiate the terms of their employment.

A Universal Basic Income would allow employees to walk away from bad employers, unsafe work environments, or undesirable jobs. Most importantly, it would restore a balance of power in the workplace–and as one observer has written, employment would no longer be modeled after “a peasant and feudal lord dynamic.”

I did a good deal of research on the merits and problems of a UBI for my recent book, and although I’m not unrealistic enough to think America’s lawmakers are likely to pass anything remotely similar during my lifetime, I was persuaded by the data that the general approach is not only sound, but–thanks to automation– will be absolutely necessary sooner than most people think.

Labor Day isn’t just a good time for a cookout. It’s also a good time to consider how badly labor has been screwed by the GOP’s war on unions and by the changes to the nature of work itself –and a good time to consider how best to repair the damage.

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Trumpers And The Culture War

I love it when research confirms my suspicions.

A few days ago, I posted a rant about the hollowness of claims that de-funding Planned Parenthood was “pro life.” The assault on Planned Parenthood, which provides needed medical care to poor women, and the increasing efforts to limit access to birth control, struck me as far more “anti woman” than “pro life.”

Then I saw this column in The Guardian, reporting on recent survey results that support my thesis.

According to self-identified “pro-life” advocates, the fundamental divide between those who want to outlaw abortion and those who want to keep it legal comes down to one question: when does life begin? Anti-abortion advocacy pushes the view that life begins at conception; the name of their movement carefully centers the conceit that opposition to abortion rights is simply about wanting to save human lives.

A new poll shows that’s a lie. The “pro-life” movement is fundamentally about misogyny.

A Supermajority/PerryUndem survey released this week divides respondents by their position on abortion, and then tracks their answers to 10 questions on gender equality more generally. On every question, anti-abortion voters were significantly more hostile to gender equity than pro-choice voters.

More than half of the “pro life” survey respondents opined that men make better political leaders than women. More than half didn’t want to see equal numbers of men and women in positions of power. (Eighty percent of pro-choice respondents did want to see power shared equally.) “Pro life” respondents disapproved of the #MeToo movement. They disagreed with the proposition that diminished access to birth control has an impact on gender equality. And they didn’t believe that sexism or the way women are treated is an important issue.

That misogyny fits with what social science has found in the wake of the 2016 election.

In the aftermath of the 2016 election, mostly white pundits wondered if Donald Trump’s white male base was motivated by “economic anxiety”. We heard this over and over: Trump voters aren’t the racist deplorables the liberal media (of which those same pundits were a part) makes them out to be. They’re decent people who have been hurt by free trade agreements, increasing Chinese economic dominance, the decimation of unions, a thinning social safety net, and stagnating wages. (Why those same people would then turn around and vote for a party that kills unions, tears up the safety net and blocks minimum wage raises while cutting taxes for CEOs went unexplained.)

Then came the social scientists – and whaddaya know? Trump voters weren’t motivated by economic anxiety as much as fear of “cultural displacement”. White Christian men (and many of their wives) were so used to their cultural, political and economic dominance that they perceived the ascension of other groups as a threat.

To put it in more straightforward terms, they were racist (and sexist), and saw in Trump a kindred spirit who would work for their interests – their primary interest being a symbolic reassertion of their cultural dominance.

The author reminds us that the American anti-abortion movement invented political gaslighting.  (As religious historian Randall Ballmer has documented, Evangelicals hadn’t thought much about abortion until defending their segregated schools became a harder political rallying point.)

Around the same time, women’s social roles were rapidly changing. The birth control pill brought with it an avalanche of opportunities and freedoms, and women, finally fully able to have sex for fun and prevent pregnancy, took full advantage. The ability to delay a pregnancy – and later, the ability to legally end one – meant that women didn’t have to choose between romance and ambition (and it meant women could be choosier about romance, making a more considered decision about who and whether to marry).

The survey confirmed the connection between “pro-life” and “anti-woman”.

More than three-quarters of anti-abortion respondents agreed that women “are too easily offended”. More than 70% of them agreed that women interpret innocent remarks or acts as being sexist. Only 34% of them–as opposed to 82% of pro-choice respondents– said the country would be better off with more women in political office.

It’s hard to disagree with the author’s conclusion:

It’s not about “life.” It’s about the fact that abortion is inexorably tied to women’s freedoms and female power.

It’s about sexism.

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Meanwhile…

Local newspapers keep dying, and that is very, very bad for democracy.

Academic studies confirm some of our worst fears: for example, civic engagement declines when local newspapers disappear. Municipalities that have lost their newspapers pay higher interest rates when they issue bonds. (When no one is “watching the store,” purchasers of municipal bonds worry about the competence and honesty of the local government that is issuing them, and factor in that concern when setting interest rates.)

Recently, both the New York Times and the Guardian have reported on the demise of local papers. The Guardian reported on the loss of Youngstown, Ohio’s newspaper, The Vindicator.

It was in the late 1920s that the Ku Klux Klan regularly began gathering outside the home of William F Maag Jr in Youngstown. Maag owned the Vindicator newspaper, which unlike others in this once prosperous part of Ohio, had been willing to criticize the racist Klansmen.

Men on horseback, clad in white robes and hoods, would burn crosses and flaunt rifles and shotguns, in an attempt at intimidation. It didn’t work. The men of the Maag family would stand outside their home, themselves armed, refusing to be cowed, as the Vindicator continued to expose government officials who were part of the Klan.

That defiance set the tone for decades of investigative, combative reporting from the Vindicator. The daily newspaper relentlessly reported on the mafia, the government, big business and even its own advertisers.

But no more. Soon after celebrating 150 years since its first edition came news that was devastating to many in Youngstown and the wider Mahoning valley. The Vindicator was shutting down at the end of August. For good.

The closure leaves Youngstown as the largest city in the U.S. without a daily newspaper.

According to a study by the University of North Carolina, more than 2,000 US newspapers have closed since 2004, and at least 1,300 communities have completely lost news coverage in the past 15 years. The Pew Research Center reports that the number of working journalists in the U.S. declined 47% between 2008 and 2018.

The Times devoted a special Sunday section to the issue, centering its discussion on the “Dying Gasp of a Local Newspaper,” the weekly Warroad, Minnesota Pioneer.

This, then, was what the desert might look like: No hometown paper to print the obituaries from the Helgeson Funeral Home. No place to chronicle the exploits of the beloved high school hockey teams. No historical record for the little town museum, which had carefully kept the newspaper in boxes going back to 1897.

And what about the next government scandal, the next school funding crisis? Who would be there? Who would tell?

“Is there going to be somebody to hold their feet to the fire?” asked Tim Bjerk, 51, an in-house photographer at Marvin, the big window and door manufacturer that dominates the town.

The problem is wider than reports of newspaper closures suggest, because the death of journalism isn’t always heralded by a shuttered operation. In my city–Indianapolis–the surviving newspaper (we once had three!) was pretty mediocre even in its heyday. When Gannett purchased it, it went from mediocre to worthless. In an effort to wring every possible penny of profit out of the paper (for which Gannett had wildly overpaid), the company cut costs by firing most of the people who produced the content–the reporters. Coverage of city hall and the statehouse is now nearly non-existent–the paper is now a sorry compendium of nostalgic “looking back” features, coverage of new bars and restaurants and sports, with a very occasional investigative report. (When there is an investigative report, it is revisited ad nauseam for days on end.)

People who want to know what school boards are doing can go to Chalkbeat (if they know it exists); people who need to know what the legislature is doing (and who can afford it) can subscribe to one of the for-profit services issuing statehouse newsletters. The general public, however, is left uninformed–and unaware of what they are uninformed about.

A couple of years ago, the textbook I used in my Media and Public Policy class was titled Will the Last Reporter Please Turn Out the Lights?

Americans can still access information about Washington and the world. Information about their local and state governments is another matter entirely. The conduct of state and local government has an immediate and significant effect on citizens– think taxation, policing, education, infrastructure and its maintenance, and the myriad rules that constrain the conduct of our daily lives. Without easily available, objective reporting on the conduct of our elected and appointed officials, they are unaccountable.

At election time, voters are supposed to cast informed ballots. Without local journalism, how can we be informed?

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The Hidden Hand

When I hear the term “hidden hand,”  I immediately think of Adam Smith. But a couple of weeks ago, I came across a very different definition of that term–one that resonated with me.

Published by a think-tank called “Support Democracy,”the article addressed the growing problem of pre-emption, which it dubbed “the hidden hand.” In Indiana, we’ve had that problem as long as I can remember; it’s what I fulminate about when I decry local government’s lack of home rule.

Many of America’s cities, towns, and counties have less power than they did at the start of the year to protect the health and safety of their communities or to respond to the unique needs and values of their residents. That’s because between January and June 2019, state legislatures across the nation continued a troubling trend of passing more laws forbidding or “preempting” local control over a large and growing set of public health, economic, environmental, and social justice policy solutions. This legislative session, state lawmakers made it illegal for locally-elected officials to enact a plastic bag ban in Tennessee, raise revenues in Oregon, regulate e-cigarettes in Arkansas, establish minimum wages in North Dakota, protect county residents from water and air pollution produced by animal feedlots in Missouri, or protect immigrants from unjust incarceration in Florida.

Some states this session went further, with bills aimed at abolishing core powers long held by cities, including their ability to negotiate and set employment terms with their own contractors, enact and implement local land use laws, and control their own budgets and finances.

Here in Indiana, local jurisdictions have long been under the thumb of state lawmakers. The same legislators who bitch and moan about “unfunded mandates” imposed on state governments by Washington blithely operate on the assumption that they know better than the folks running city and county jurisdictions how those officials should do their jobs.

Are there issues that require federal mandates? Sure. Are there issues that ought to be handled consistently statewide? Of course. But the policy debate should center on what those issues are–and it rarely if ever does. Instead, we have the Indiana General Assembly deciding what vehicles Indianapolis can include in our locally-funded mass transit plans (no light rail for us–why, no one can explain).

It’s bad enough that a former Governor whose political savvy outstripped his devotion to rational policymaking (yes, Mitch, I’m looking at you) shoehorned a tax cap into the state constitution. That certainly made him popular. It has also destroyed the ability of local governments to provide appropriate levels of basic services. (Not to mention that provisions of this sort don’t belong in constitutions, which are by definition frameworks prescribing how issues like taxation are to be dealt with.)

State and local governments desperately need to revisit the allocation of power between them. In states like Indiana, state-level lawmakers need to allow local governments to make the decisions that are properly local.

As the report at the link explains,

Preemption is a tool, like the filibuster, that can and has been used by both political parties. In the past, preemption was used to ensure uniform state regulation or protect against conflicts between local governments. Preemption has also been used to advance well-being and equity. State civil rights laws, for example, allow cities to increase protections, but prohibit them from falling below what was required under law. Traditional preemption emphasized balance between the state and local levels of government. While state policy still had primacy, according to Columbia Law School professor Richard Briffault, it was understood that “state policies could coexist with local additions or variations.”This is not what we are seeing now.

“New Preemption” laws, according to Briffault, “clearly, intentionally, extensively, and at times punitively, bar local efforts to address a host of local problems.” Some of this is propelled by a disdain for local lawmaking and urban lawmakers seen as too liberal, intent on “oppressing” the free market and “trampling” on individual liberty…. Another primary driver of new preemption is the opportunity conservatives now have to deliver on a long-promised anti-regulatory agenda – an agenda that disproportionately and negatively affects women, people of color and low income communities. These new preemption laws are being used to prohibit local regulations without adopting new state standards in their place, effectively preventing any regulation or policy remedy at all.The efforts to consolidate power at the state level and end local authority over a wide range of issues are part of a national long-term strategy often driven by trade associations and corporate interests. Much of this effort has been orchestrated by the American Legislative Exchange Council (ALEC), an industry-funded organization made up by lobbyists and a quarter of all state lawmakers that writes and distributes model bills.

In my most recent book (which I shamefully keep hyping) I make a case for revisiting federalism, and ensuring that control of issues is lodged with the appropriate level of government.

I doubt I’ll live long enough to see that happen…..

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Does Deutsch Bank Have The Goods On Trump?

A journalist friend tells me that some early “newspapers”– more accurately described as pamphlets compiled from recently circulated broadsides–used to have a tag line beneath their mastheads. It read “Interesting, if true.”

Lawrence O’Donnell recently supplied us with a humdinger of “interesting if true” news.

According to Raw Story–and subsequently, several other news outlets, including Salon–Deutsche Bank may have the evidence the Mueller investigation was unable to find.

Fast-tracked impeachment hearings will occur this fall if the bombshell report is true that President Donald Trump had loans with Deutsche Bank co-signed by Russian oligarchs close to Vladimir Putin.

 “The source close to Deutsche Bank says that the co-signers of Donald Trump’s Deutsche Bank loans are Russian billionaires close to Vladimir Putin,” MSNBC’s Lawrence O’Donnell reported Tuesday.

If true, this would explain why Trump was so agitated (I know, he’s always agitated, but this was notable even for him) when Congress issued a subpoena to the bank for records of their loans to Trump and the Trump organization. It would explain the lawsuit he filed in an effort to quash that subpoena.

It would also explain his slavish attention to Putin’s interests, most recently highlighted by his behavior at the recent G7 meeting. According to several reports, Trump cornered the other heads of state and aggressively lobbied for Russia’s re-admittance to the group.

Finally, it would explain why Deutsche Bank continued to make loans to Trump after American banks would no longer do so. After several of Trump’s business disasters and bankruptcies left lenders with enormous unpaid obligations, American bankers cut Trump off. That cutoff is not speculation, and Don Junior has been widely quoted for a speech in which he bragged that the Trump Organization no longer needed homegrown lenders, because Russia was supplying all the cash they needed.

Salon quoted journalist and tax expert David Cay Johnston, who has covered Trump for years.

“Deutsche Bank, in making these loans, had to have someone in the background that was guaranteeing these loans. It would be surprising if they’re actually co-signers,” Cay Johnston said in response to the news.  “That would be absolutely astonishing, and I would think mandate his removal from office.”

The only thing Deutsche Bank has confirmed (to the Second Circuit Court of Appeals) is that the bank has possession of the tax returns of at least one member of President Donald Trump’s family.

A lawyer for Trump has now threatened to sue O’Donnell for “false and defamatory” statements. It would be extremely difficult to win such a suit, since O’Donnell himself cautioned that his bombshell report was based upon information provided by a single source–a person who works with Deutsche Bank–and that he had been unable to verify it. (He may have breached journalistic ethics by reporting an unverified accusation–spreading gossip, essentially– but proving intentional defamation would be extremely difficult given his transparency about the source and his inability to confirm that source’s account.)

That said, the information seems so accurate, because it’s so incredibly plausible. Russian oligarch guarantors or co-signers would explain a number of otherwise inexplicable things…

It’s VERY interesting…if true.

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