Category: Allied Approaches

CBPPs best graphs of 2019!

Jared Bernstein

Jared Bernstein Senior Fellow, Center on Budget and Policy Priorities

For a certain breed of wonk and nerd, it’s not the holiday season until some of CBPP’s best graphs of the year are collected and briefly annotated. This year, Kathleen Bryant and I took a stab at picking some of the figures we thought were most important to document the economic and policy landscape facing economically vulnerable people.

 

One of the most important and positive trends of the last decade was the decline in share of Americans without health coverage due to the Affordable Care Act. Their numbers fell from about 45 million to 27 million, a gain in coverage for ~18 million people. But this year’s release of the Census Bureau’s health insurance data revealed a troubling reversal of this trend. In 2018 (the data lag one year), the uninsured rate increased for the first time since the ACA’s passage. These findings illustrate the grave consequences of the Trump Administration’s repeated attempts to undermine the ACA over the past several years.

 

One reason the reversal shown above is of such concern is that health coverage saves lives. Reviewing a recent academic study, Matt Broadus and Aviva Aron-Dine report that the ACA’s Medicaid expansion prevents thousands of premature deaths each year and saved the lives of at least 19,200 adults aged 55 to 64 between 2014 and 2017. Matt and Aviva find that if all states had expanded Medicaid in 2017, the number of lives saved by full expansion would almost equal the number saved by seatbelts. Given such magnitudes, and considering that the federal government pays 90 percent of the costs of the expansion, these findings underscore the cruelty of remaining state resistance to the expansion.

For more, click here.

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Reposted from On the Economy

Top 1.0% of earners see wages up 157.8% since 1979

By Lawrence Mishel and Melat Kassa

Newly available wage data for 2018 show that annual wages for the top 1.0% were nearly flat (up 0.2%) while wages for the bottom 90% rose an above-average 1.4%. Still, the top 1.0% has done far better in the 2009–18 recovery (their wages rose 19.2%) than did those in the bottom 90%, whose wages rose only 6.8%. Over the last four decades since 1979, the top 1.0% saw their wages grow by 157.8% and those in the top 0.1% had wages grow more than twice as fast, up 340.7%. In contrast those in the bottom 90% had annual wages grow by 23.9% from 1979 to 2018. This disparity in wage growth reflects a sharp long-term rise in the share of total wages earned by those in the top 1.0% and 0.1%.

These are the results of EPI’s updated series on wages by earning group, which is developed from published Social Security Administration data and updates the wage series from 1947–2004 originally published by Kopczuk, Saez and Song (2010). These data, unlike the usual source of our other wage analyses (the Current Population Survey) allow us to estimate wage trends for the top 1.0% and top 0.1% of earners, as well as those for the bottom 90% and other categories among the top 10% of earners. These data are not top-coded, meaning the underlying earnings reported are actual earnings and not “capped” or “top-coded” for confidentiality.

For more, click here.

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Reposted from EPI

The Trump tax act delivered big benefits to the rich and corporations but nearly none for working families

From the EPI

Despite the Trump administration’s claims of success, the Tax Cuts and Jobs Act (TCJA) did not increase wages for working people, failed to spur business investment, decreased corporate tax revenues, and boosted stock buybacks in its wake. Stock buybacks rose more than 50% to $560 billion in 2018—and look on-pace to hit $500 billion again in 2019. Meanwhile, there was no uptick in business investment in 2018 and significant declines in the six months of available data in 2019. Additionally, CBO estimates show that corporate tax revenue has declined more than originally anticipated. While real (inflation-adjusted) wage growth accelerated in 2018 relative to 2017, similar one-year accelerations have been seen in recent years. Further, wage growth in 2019 has decisively decelerated. Other influences pushing up wage growth in 2018—tight labor markets and higher state-level minimum wages—can fully explain the mild pickup in wage growth for that year.

To read the report, click here.

Can “powerless nobodies” fight the corporate powers?

Jim Hightower

Jim Hightower Author, Commentator, America’s Number One Populist

Generations of working class shrimpers, oysterers, and other fishing families on the sparkling bays along the Texas coastline of the Gulf of Mexico, have long shared the waterways with alligators and snakes that also call this place home.

But in the 1980s, a strange and invasive new critter entered Lavaca Bay, and it’s been devouring whole species of seafood, along with the livelihoods of local Gulf communities. This was not some monster from the deep, but a massive, 45,000-acre factory owned by Formosa Plastics Corporation, founded by the richest man in Taiwan.

Formosa is not here for seafood. It’s the world’s second largest fabricator of polyvinyl chloride, the tiny, highly-toxic pebbles and powders used to make gabillions of plastic bags, pipes, bottles, etc. For decades, Formosa has cavalierly been dumping trillions of these poisonous pebbles and tons of the polyvinyl powders into its wastewater – which end up in Lavaca Bay.

That poisonous content then spreads to other bays and into the shrimp, oysters, fish, and other creatures living there. The result has been species vanishing from these waters, creating economic and social devastation for families and communities that rely on nature’s bounty.

Wait, isn’t this against the law? Of course – but petrochemical behemoths like Formosa have corrupted the law, turning Texas lawmakers and environmental regulators into their puppets. But, when leaders won’t lead, The People must, and that’s exactly what’s happening in this case. A defiant, determined shrimper and a scrappy environmental coalition have combined to win the largest citizen environmental lawsuit in US history, forcing Formosa to stop its gross contamination.

For information on the details and impact of this remarkable people’s victory, go to Texas Rio Grande Legal Aid at TLRA.org.

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Congress Has Ironed Out Its TIVSA Disagreements

Matthew McMullan

Matthew McMullan Communications Manager, Alliance for American Manufacturing

You might think Congress is entirely tied up in the impeachment hearings. But no!

On Monday, House and Senate negotiators agreed to a compromise version of the massive National Defense Authorization Act (NDAA), which sets in place policy and spending for Department of Defense. Tucked in this huge conference report is legislation modeled on the Transportation Infrastructure Vehicle Security Act (TIVSA) that would bar federal dollars from being used to purchase rolling stock – rail cars or buses – from state-owned or -controlled companies. In effect this meant big Chinese companies, whose presence in the American bus and rail car markets has grown significantly in recent years.

Both the House and Senate versions of the NDAA included TIVSA language, and while the Senate’s TIVSA was comprehensive the House’s carved out electric buses from this legislation. In the end, though, the TIVSA language on which the negotiators agreed leaned toward the Senate version; it was more comprehensive.

The Alliance for American Manufacturing (AAM) thinks this is a good outcome. Detailed reports have shown CRRC and BYD – a Chinese state-owned rail car manufacturer and a state-supported bus manufacturer, respectively, that have growing footprints in the American market – maintain close ties to the Chinese Communist Party, the Chinese military, and huge telecom companies like Huawei, which currently sits on a Commerce Department export blacklist because of national security concerns.

AAM President Scott Paul applauded Congress for recognizing that such companies “operate as extensions of China’s government.” Said Paul:

“By moving forward with this legislation, Congress is defending our transportation infrastructure against deeply subsidized Chinese companies that threaten to disrupt our manufacturing capabilities and displace tens of thousands of American jobs throughout our supply chain of parts and components.”

Read the reports on BYD and CRRC here.

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Reposted from AAM

Working-Class Christmas

Kathy M. Newman Carnegie Mellon University

During this Christmas season, there is a tweet making the rounds that shows the number of paid vacation days in thirteen different countries by law:

France             30

Denmark         25

Finland            25

Norway           25

Sweden           25

Russia             24

Cuba                22

Australia         20

New Zealand  20

Canada            10

Japan               10

Mexico            6

United States  0

Workers in the US are legally entitled to zero vacation days. Nada. Zilch.

I raise this now because I’ve been doing some research into the history of Christmas holiday traditions, looking at two histories of Christmas, Judith Flanders’s Christmas: A Biography, and Stephen Nussbaum’s The Battle for Christmas. After reading these histories here is what I have concluded: the working-class invented Christmas.

Many of the traditions that we associate with Christmas have their roots in the winter solstice and the agricultural off season that in Northern climates runs from the end of October through the end of February. In The Battle for Christmas, Nussbaum points out that, “December was the major ‘punctuation mark’ in the rhythmic cycle of work, a time when there was a minimum of work to be performed. The deep freeze of midwinter had not yet set in; the work of gathering the harvest and preparing it for winter was done; and there was plenty of newly fermented beer or wine as well as meat from freshly slaughtered animals— meat that had to be consumed before it spoiled.”

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Are America’s Rich Getting Tired of Winning Yet?

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

The obituaries for Paul Volcker, the former Federal Reserve chair who died last Sunday at age 92, have been consistently echoing a truly heroic narrative. Between 1979 and 1987, as one prominent obit pronounced, Volcker’s bold and sweeping interest rate hikes shocked “the U.S. economy out of a cycle of inflation and malaise and so set the stage for a generation of prosperity.”

But prosperity for who?

Economist Gabriel Zucman has just delivered the most telling answer yet.

In a special analysis prepared for the Washington Post’s Greg Sargent, the University of California at Berkeley scholar has compared current average American incomes — in six different income ranges — to average incomes at the start of every decade since 1970.

Zucman’s income figures take into account both the taxes Americans pay federal and state governments and the transfers — everything from Social Security checks to veteran assistance — that go from government to individual Americans. In other words, his new breakdown shows what Americans had left in their wallets after paying their taxes and pocketing their benefits.

Some Americans, the new numbers show, had much more left than others. Phenomenally more. For America’s richest, the past half-century could hardly have been more prosperous.

In 1970, the nation’s top 1 percent averaged $328,816, in today’s dollars. By 2018, that top 1 percent average had more than tripled, to $1,152,232.

But the most striking after-tax, after-transfer gains have gone to Americans even higher up in the economic pecking order. Average top 0.1 percent incomes have more than quintupled since 1970, from just over $1 million to over $5 million. Average top 0.01 incomes have jumped over six-fold, from $3.7 million in 1970 to $24.2 million in 2018.

In essence, America’s very richest — the top one-hundredth of our top 1 percent — have on average added about $427,000 to their incomes every year since 1970.

The bottom 50 percent of Americans have added to their incomes, too — all of an average $167 a year.

To read more, click here.

The "Sock Queen" Knits Tradition and Innovation Together

From the AAM

Dubbed the "Sock Queen" by The New York Times, Gina Locklear, founder of zkano organic socks, founded her company with the central mission of saving her parents' sock mill in Fort Payne, Ala. Ten years later, she's as determined as ever to restore her hometown's manufacturing legacy as the "Sock Capital of the World."

Reposted from AAM

U.S. employers are charged with violating federal law in 41.5% of all union election campaigns

From the EPI

This report provides a comprehensive analysis of employer conduct in union representation elections supervised by the National Labor Relations Board (NLRB). Using data obtained through Freedom of Information Act (FOIA) requests, we find that unfair labor practice (ULP) charges were filed against employers in four out of ten union representation elections that took place in 2016 and 2017. In addition to the analysis of employer conduct in union representation elections, the report provides information on the “union avoidance” industry. Disclosures required under the Labor-Management Reporting and Disclosure Act (LMRDA) help to provide information on an industry that operates largely out of the public view. Finally, the report discusses policy recommendations aimed at combating employers’ aggressive efforts to dismantle unions and impede organizing efforts.

Our analysis of ULP charges2 filed with the NLRB shows the following:

  • Employers were charged with violating federal law in 41.5% of all NLRB-supervised union elections in 2016 and 2017, with at least one ULP charge filed in each case.
    • Firings. Under the most conservative measures, employers were charged with illegally firing workers in one-fifth (19.9%) of all elections. Using more comprehensive measures, employers were charged with illegally firing workers in nearly a third (29.6%) of all NLRB-supervised elections.
    • Coercion, threats, retaliation. In nearly a third (29.2%) of all elections, employers were charged with illegally coercing, threatening, or retaliating against workers for supporting a union.3
    • Discipline, firings, changes in work terms. In nearly a third (29.3%) of all elections, employers were charged with illegally disciplining workers for supporting a union.4
  • Employers were more likely to be charged with violating the law where there were larger bargaining units. More than half (54.4%) of employers in elections involving more than 60 employees (roughly 25% of elections) were charged with violating federal law.

In addition, we examine the degree to which employers enlist the help of “union avoidance” lawyers and consultants to help them prevent or disrupt union elections. To do so, we analyze publicly available reports filed with the U.S. Department of Labor (DOL) Office of Labor-Management Standards (OLMS). Based on our analysis, we estimate that employers spend nearly $340 million per year hiring union avoidance advisers to help them prevent employees from organizing.

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It’s Time for Trade Negotiators to Start Talking About China’s Human Rights Abuses

Elizabeth Brotherton-Bunch

Elizabeth Brotherton-Bunch Digital Media Director, Alliance for American Manufacturing

The “phase one” trade deal between the United States and China is… probably done?

President Trump on Friday took to Twitter to announce the deal, which he called “very large” and “an amazing deal for all.” But specific details about the agreement remain unclear — and what is out about it doesn’t seem to be all that great.

But while political pundits are laser-focused on how the deal will impact things like tariff rates and agricultural purchases, evidence is mounting that China is adding “a sickening new dimension” to one of the world’s most serious human rights crises.

And although U.S. trade negotiators have strategically stayed quiet about China’s human rights abuses in an effort to get a trade deal done — and although China really does not like to talk about them — given that these abuses impact the global supply chain and overall trade flows… maybe it’s time to start talking about them?

It’s long been reported that China has placed at least 1 million Uighurs and other Muslim ethnic minorities from the Xinjiang region into concentration camps, which China says are “vocational training centers.”

But in November, The New York Times published a bombshell report that included 400+ pages of internal Chinese Communist Party documents that showcased just how orchestrated this effort is — even Chinese leader Xi Jinping is implicated. Other leaks from inside the camps provide a glimpse into life inside, describing how China uses physical and psychological torture in an attempt to rid the Uighurs and other detainees of their language, religion and culture.

Sadly, it doesn’t appear that things improve for these prisoners once they leave the camps, either. A new paper from Adrian Zenz, a senior fellow in China Studies at the Victims of Communism Memorial Foundation, finds that China is placing “limited but apparently growing numbers of detainees… into different forms of forced labor.” Zenz writes:

“19 cities and provinces from the nation’s most developed regions are pouring billions of Chinese Yuan (RMB) into the establishment of factories in minority regions. Some of them directly involve the use of internment camp labor, while others use Uyghur women who must then leave their children in educational or day care facilities in order to engage in full time factory labor. Another aspect of Beijing’s labor schemes in the region involve the essentially mandatory relocation of large numbers of minority workers from Xinjiang to participating companies in eastern China.

“Soon, many or most products made in China that rely at least in part on low-skilled, labor-intensive manufacturing, may contain elements of involuntary ethnic minority labor from Xinjiang.”

Zenz’s entire paper is worth a read, as it makes clear the extent to which China is using forced labor in many of its factories. But Zenz isn’t the first to highlight this problem — there long has been evidence that China is using forced labor to make many of the products that line our store shelves, particularly in textiles.

The New York Times reported on these forced labor factories about a year ago, and around that time the Associated Press even connected one of the factories to a U.S. sportswear supplier. Companies from Kraft Heinz and Coca-Cola to Adidas and Gap also run supply chains through Xinjiang, meaning that it is plausible, if not certain, that at least some of their products have been made in these factories.  

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There is Dignity in All Work

There is Dignity in All Work

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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