INDIVISIBLE Lambertville NJ / New Hope PA

Category: Economy

  • From the Editor

    On Friday, the Federal Department of Labor’s employment numbers came in and the news wasn’t all that great: Only 266,000 non-farming jobs were added compared to expectations of over a million. There’s great consternation over the why of it, with apparently 1.1 jobs available for every unemployed person. The markets, however, went ‘ho-hum,’ with the disappointing news offset by the speculation that this would keep interest rates low. 

    Many are quick to blame the extra money the federal government provides to boost unemployment – all $300 per week. I’ve heard it from local business people and national news. 

    I’m not so sure. 

    With great apologies for this onslaught of numbers, here’s something to consider:  At the low end, if a worker was making minimum wage of $7.25/hour and worked a 40 hour week, their gross pay would be $290. Unemployment in NJ pays 60 percent of the gross wages so they’d get $174 on unemployment, and with the extra $300 they’d get $474 per week, which brings them up to $11.85/hr. 

    A living wage in NJ is currently $16.20; In Pennsylvania, $13.02 (see Income Equality and the Bare Minimum blog in this edition). Assume also that the unemployed worker now has no healthcare coverage unless they’ve applied and qualified for Obamacare. COBRA is ridiculously expensive. And if anyone has ever applied for unemployment, the process isn’t exactly smooth sailing. 

    So what’s going on? I don’t have any educated answers and look forward to seeing what others who do come up with. I do know that it’s largely the service industries that are bemoaning the lack of available and interested labor, but have also made the biggest gains as things begin to open up. Is there a lack of affordable housing and transportation in the areas where businesses are lacking employees? Have some decided that a career change might provide more stability? Is there reluctance to return to work because of concerns or lack of COVID protections? 

    The picture is more complex than the assumption that people don’t want to return to work because they make more on unemployment. This argument is a thinly disguised resurrection of the “welfare queens” fable that the Reagan administration promoted. The same administration that gave us the trickle down economy, the war against unions and decline of worker protections. The GOP, that is now trying to lay claim that it’s the party of Blue Collar Workers. I nearly choked on my tea when I heard that one. 

    The American Jobs Plan and the Green New Deal have the potential for job creation like we haven’t seen since FDR. A majority of them are likely to be blue collar jobs and well-paying ones at that. Many will require new training programs and can be sited in areas that have lost or will lose jobs as older industries fade(d). Yet the GOP stands staunchly in opposition to any such plan. Why? It would raise taxes on the wealthy and businesses and close loopholes that allow them to avoid paying their share. Yet the proposed increase in taxes is still well below what it was even under GW Bush – AFTER his tax cut package: 28% proposed vs 35% under Bush.

    If there is a champion of the blue collar worker, of a healthy, economic recovery and of closing the income inequality gap, it is the Biden-Harris administration and the Democrats in Congress and states who are fighting to make it happen. But the very slim margin of Dems vs GOP means that we must continue to work to elect and re-elect those who truly work for the public good, continue to make our voices heard, continue to shoot down misinformation about why we can’t afford to raise the minimum wage or provide national healthcare – which will take a huge burden off businesses and democratize access, and fight to eliminate or modify the filibuster so it doesn’t get in the way of progress. 

    The opportunity is right now. We have the power, we can make it happen. Let’s do this!

    Much Love, 

    Deb

  • Time to THRIVE

    Time to THRIVE: From the multilateral racial, health, economic, and environmental crises to the THRIVE Agenda

    Contributed by Alexis Berends.

    In recent years, the deep links between racism and climate change have been coming to the forefront. Issues of Environmental Injustice have been highlighted in such catastrophes as Hurricanes Katrina and Maria, the fight to protect our water at Standing Rock, as well as within the Covid 19 crisis.

    Climate change and racial inequality are the direct result of industry – from clearing lands to grow cotton, sugar and tobacco in our early colonial history, to modern industrialization of agriculture, fishing, and the extraction of fossil fuels. In order to expand the colonial agricultural industry, the colonial countries in the Americas enslaved the Native populations, forcing them to exploit the lands they spent 11,000 years developing an intimate stewardship with. Others were expelled from their lands, or worse. Later, Africans were brought across the Atlantic in shackles, solidifying the industrialization of the Americas and forever imprinting a framework for systemic racism.

    These practices exist to this day, albeit in seemingly innocuous policies. We still force Tribal communities from their sacred lands to extract fossil fuels and build coinciding infrastructure under the guise of “energy security.” It exists in our use of immigrant labor, many with indigenous roots, to work our fields in illegal and inhumane conditions; in our crowded prisons where a disproportionate number of black and brown inmates make many of the products that proudly bare the label “Made in America”; and by underpaying workers in the critical healthcare and service industries which are traditionally dominated by women, especially women of color. Since its birth, America has been mistreating the environment, people of color, indigenous cultures and lands, and women alike. We can and must do better.

    BIPOC and marginalized communities bear the brunt of our unsustainable industries. For example, New Jersey is home to the most superfund sites per capita, most of which are in the Black and Latinx neighborhoods of Camden and Newark. Pennsylvania is #3 on the list of having the most superfund sites per capita, primarily in the communities surrounding Philadelphia and Chester counties. People in these areas commonly suffer from chronic lung diseases, such as asthma, which have exacerbated COVID-19 infections disproportionately. They have been screaming “I can’t breathe” for generations, and it’s no wonder that both Eric Garner and George Floyd had asthma.

    The COVID Crisis has put more pressure on our already fragile system. We face staggering unemployment levels, a broken economy, increased stress on women and mothers who are forced to assume multiple roles in unprecedented circumstances – especially women of color, and an overburdened healthcare system. At the same time, climate scientists are urging us to dramatically reduce carbon emissions by 2030 – just nine years away – and meet carbon neutrality by 2050 in order to slow global warming by 1.5 degrees celsius above pre-industrial levels. A dire existential threat is staring us in the face yet we have our blinders on.

    So how do we build a more just world? What policies are being introduced that could create a more sustainable future – environmentally, socially, and culturally?

    The THRIVE Agenda: Transform, Heal, and Renew by Investing in Vibrant Economy

    Now that the American Rescue Plan has been passed, the next step is to focus on how we will recover from the multifaceted crises we are currently facing. The THRIVE Agenda is a recovery package that calls for transformative, sustainable, and equitable change with meaningful action to respond to the Climate Crisis. THRIVE will provide access to healthcare, childcare, elderly care, and assistance for the disabled and chronically ill, and provides a framework for the just transition to sustainable development, particularly in the energy, agricultural and construction industries. Within this framework the resolution will focus on economic, racial, health, and environmental recoveries through 8 interrelated pillars:

    • Creation of 16 million good, safe jobs with family sustaining wages that have access to unions;
    • Investment in Black, Brown, and Indigenous communities;
    • Combating problems of racial and environmental injustice and ensuring healthy lives for all, as declared by the United Nations Universal Declaration of Human Rights of which the United States is a signatory;
    • Ensuring fairness for workers and communities affected by economic transitions;
    • Building the power of workers to fight inequality;
    • Strengthening and healing the nation-to-nation relationship with sovereign Native
      Nations and implementation of the United Nations Declaration on the Rights of
      Indigenous Peoples, adopted by the United States in 2010;
    • Averting climate and environmental catastrophe while building climate resilience to mitigate against the impacts of global warming and rising sea levels;
    • Reinvesting in public institutions that enable workers and communities to Thrive.

    Support for the THRIVE Agenda
    At present, the THRIVE Agenda is supported by 89 members of congress, 10 Senators and roughly 300 organizations, including leading labour unions such as the American Federation of Teachers; racial justice groups including Movement 4 Black Lives and the NAACP; environmental groups such as the Sierra Club, Greenpeace and Natural Resources Defense Council; indigenous groups, immigrants’ rights groups, women’s rights groups, faith groups, think tanks, and even Indivisible. In a survey done by Data for Progress, the majority of Americans, including in swing states and battleground House districts, support the 8 Pillars of the THRIVE Agenda with support for each pillar ranging from 54-77% of all registered voters, and as high as 72-91% of registered Democrats.

    Call to Action

    While there is growing support in both the House and the Senate, we still need to apply pressure on our elected officials. Many Democrats are still needed as cosponsors, and zero Republicans have yet to sign on. So far, only 3 congresspersons from both New Jersey and Pennsylvania respectively have signed, and both Malinowski and Fitzpatrick have yet to cosponsor.

    Reach out to your representatives and let them know we support the THRIVE Agenda. Give them a call, shoot them an email, and tag them on social media using the hashtags #TimetoTHRIVE so they can see how strong our movement is.

    It is time for us to recover as a nation by addressing the multilateral economic, racial, health, and environmental crises we have collectively experienced en masse this past year. We have been given an opportunity to rewrite the future of our country to ensure that it provides a healthy, economically and environmentally sustainable life for all. Don’t let this opportunity pass us by. This is our time to THRIVE.

  • ACTION! Senators Release Proposals Supporting Frontline Workers

    Contributed by Deb Kline.

    Three proposals focusing on Frontline Workers have been unveiled by both Democrats and Republicans in the Senate for consideration in the fourth coronavirus relief package

    Three different proposals have been released by members of the U.S. Senate intended to support the frontline workers to varying degrees. The goal is to include more focused provisions to protect and reward these workers, and to stimulate interest in filling these much needed jobs. Ideally, some form of these proposals will be included in the fourth coronavirus relief package, and you can help by calling Congress and demanding their support. Don’t forget your state government, which in many cases has done more to protect its people than the federal government.

    Essential Workers Bill of Rights 

    In April, Sen. Elizabeth Warren and Rep. Ro Khanna’s unveiled an “Essential Workers Bill of Rights,” which has been cheered by leading progressive organizations – including Indivisible and MoveOn – who are demanding the next coronavirus relief package take care of those on the frontlines of the pandemic.

    COVID-19 Hero’s Fund

    Also in April, Senate Democrats Charles Schumer (NY), Gary Peters (MI), Sherrod Brown (OH), Patty Murray (WA), Robert Casey (PA), and Tom Udall (NM) revealed the COVID-19 Hero’s Fund — a federal fund offering payments of up to $25,000, or $13 an hour and retroactive compensation for qualifying workers dating back to late January, when the public health emergency was first declared. Their plan also proposes a one-time payment of $15,000 to draw new workers into essential fields.

    • Uses a flat-dollar amount per hour premium model in order to ensure it is clear, simple, and lifts up particularly those workers making lower wages.
    • Would give each essential frontline worker $13/hour premium pay on top of regular wages for all hours worked in essential industries through the end of 2020.
    • Would cap the total maximum premium pay at $25,000 for each essential frontline worker earning less than $200,000 per year and $5,000 for each essential worker earning $200,000 or more per year.

    Patriot Pay

    Then on May 1, Utah Senator Mitt Romney released his Patriot Pay proposal aimed at providing bonus pay — up to $12 an hour on top of normal wages — for employees in eligible jobs. The increase would extend through May, June and July and would be paid out by employers and the federal government via a payroll tax credit. Workers in industries designated by Congress and the Department of Labor as essential, including hospitals, grocery stores and health manufacturing, could qualify for the hazard pay. 

    • For essential employees that make less than $50,000 annualized, employers would receive a 75% refundable payroll tax credit for a bonus up to $12 an hour.
    • For essential employees making over $50,000 annualized, the tax credit phases out by $24 for every additional $500 in income until annualized incomes hit $90,000.
    • The maximum tax credit is $1,440 per month, per employee, meaning a full-time worker would receive up to a $1,920 monthly bonus.

    Unlike the Democratic proposal however, Romney’s plan opts to offer employers a refundable payroll tax credit for paying out the bonuses to eligible employees. The plan states that employers would be refunded for up to three-quarters of hazard pay bonuses to employees making less than $90,000 a year. 

     

    • ACTION! Call your U.S. Senators and tell them to support the Essential Workers’ Bill of Rights and COVID-19 Hero’s Fund in the next coronavirus relief package. Find their contact information here.

     

    ACTION! Sign Indivisible.org’s The People’s Agenda Pledge to make sure your Representative opposes any coronavirus relief bill that does not 1) Keep people on payrolls; 2) Provide aid to the most vulnerable, including cash, food, debt relief and eviction protection; 3) Provide full healthcare coverage for all frontline workers, and 4) Enact a vote-by-mail requirement for all federal elections. Find all the tools you need plus at Indivisible.org The People’s Agenda

  • Trickle Up Economics

    Contributed by Amara Willey.

    Although fair pay and minimum wage legislation would likely help our economy, Republicans continue to block Federal protections that would eliminate gender and race discrimination in pay rates and wages or provide a living wage.  

    Women working full time in America earn a little over 80 percent of what men make on average, according to the Department of Labor. This gap has other factors besides discrimination, such as women choosing lower-paying fields than men, taking time off to have children, or being less inclined to negotiate. 

    On March 27, 2019, the U.S. House of Representatives voted to pass the Paycheck Fairness Act, an act designed to amend and strengthen the existing federal Equal Pay Act. With the current Republican held-Senate, however, it’s unlikely that the Fair and Equal Pay Act of 2019 (HR-2039) will become law.

    According to the bill, 

    “the  U.S.  economy  would   have   produced   additional   income   of   $447.6  billion  if  women  received  equal  pay;  this  represents  2.9  percent  of  2012  gross  domestic  product.” The act further asserts, “The  poverty  rate  for  all  working  women  would  be  cut  in  half,  falling  to  3.9  percent  from  8.1  percent” under the bill.

    We might ask why Republicans are so loath to accept legislation that would actually stimulate economic growth? Republicans cry job loss whenever fair pay legislation comes to a vote. 

    Several states including New Jersey, New York, and California already have fair pay legislation in place. Equal pay for equal work legislation typically compares job content rather than job title.

    Yet economic figures don’t substantiate Republican fears. In 2019, the real GDP increased 3.7 percent over the previous year in New Jersey. The figure is similar in New York. California’s GDP grew by 4.7 percent, comparable to the same rate in Texas, a state that doesn’t have fair wage legislation. Other states without fair wage legislation, such as Iowa and Alabama, had less growth, 2.3 and 2.7 percent respectively. 

    The laws that currently protect workers from wage discrimination based on gender and race are the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. The proposed legislation tightens loopholes that require employers to prove why they are not offering equal pay based on real comparisons such as education and experience.

    Federal Minimum Wage

    A number of states have taken steps to raise the minimum wage from its 2009 increase to $7.25 an hour ($290/week). It’s hard to imagine how anyone in New Jersey or Pennsylvania over the age of 18 could live on that salary without working two or three jobs. 

    Some states — specifically California, Massachusetts, New York, Maryland, New Jersey, Illinois, and Connecticut — have passed laws that gradually raise the state minimum wage to at least $15 per hour. Some major cities such as San Francisco, New York City, and Seattle have already raised their municipal minimum wage to $15/hour.

    Legislation backed by Democrats in Congress would also gradually increase the minimum wage to $15/hour, but has little hope of passing with the current Congress.

    Some of this legislation is due to the efforts of Fight for $15, which is a political movement working towards a federal minimum wage increase to $15/hour. The movement has involved strikes by low-paid workers such as those in child care, home health care, gas station and fast food workers, with demands to be paid more and the right to unionize. The organization is also advocating for protections for front-line workers, many of whom are in these fields and being forced to work. 

     

    • ACTION! Call your Senators and demand their support for the Fair Pay Act.

     

    Sources – 

    https://www.laboremploymentlawblog.com/2019/03/articles/discrimination/paycheck-fairness-act/

    https://www.huffpost.com/entry/republicans-equal-pay_n_7062128

    https://www.statista.com/statistics/306787/new-jersey-gdp-growth/

    https://en.wikipedia.org/wiki/Fight_for_$15

  • Just the Facts – Why do companies do share buybacks?

    Contributed by Olga Vanucci.

    A share buyback is a decision by a company to buy back its own shares from the marketplace, reducing the number of shares outstanding.

    With fewer shares outstanding and no change in the total value of the company, each share is worth more.  The price of the stock goes up.

    For example, a company is worth $10 million and has 100,000 outstanding shares:  It’s stock price is $100. If it repurchases 10,000 of those shares, reducing its total outstanding shares to 90,000, its stock price increases to $111 — without any actual increase in the company’s value.

    A company does a share buyback when it has cash but chooses not to pursue a productive way to invest that cash into its business to actually increase the overall value of the company. 

    Between January 1 and February 1 of 2018, companies listed in the Standard & Poor’s 500-stock index announced buyback programs totaling $173 billion, which was the most significant amount of buybacks ever counted so early in a year.  That is all money that was NOT invested back into the businesses.

    More here:  https://www.investopedia.com/terms/s/sharerepurchase.asp