Prospect.org

The Death of an Employer Scam

Tue, 25 Mar 2014 18:24:41 +0000

One of the most pervasive scams that employers use to lower their workers’ wages is misclassification—that is, turning their workers into independent contractors or temps when they are actually employees. Misclassification shouldn’t be mistaken for the whim of an errant employer. On the contrary, it’s a strategy that has been used to transform entire industries.

How to Raise Americans' Wages

Thu, 06 Mar 2014 18:22:20 +0000

Once upon a time in a faraway land—the United States following World War II—workers reaped what they sowed. From 1947 through 1973, their income rose in lockstep with increases in productivity. Their median compensation (wages plus benefits) increased by 95 percent as their productivity increased by 97 percent. Then, abruptly, the rewards for greater productivity started going elsewhere—to shareholders, financiers, and top corporate executives. Today, for the vast majority of American workers, the link between their productivity and their compensation no longer exists.

The Left, Viewed from Space

Mon, 03 Mar 2014 18:19:11 +0000

It is, I suppose, theoretically possible to get the big picture right even when you can’t see the small pictures at all. That seems to be the achievement of political scientist Adolph Reed Jr. in his cover story in the March issue of Harper’s.

As Reed sees it, both political parties have been captured by neo-liberalism, by Wall Street, by the cult of laissez-faire. The Democrats have succumbed while maintaining, or even increasing, their liberalism on social and cultural issues, even as the Republicans have moved rightward on those same social issues. More troublingly, as Reed sees it, the American left has acquiesced in the Democrats’ rightward movement, backing a passel of candidates and two presidents—Bill Clinton and Barack Obama—who adhered to the economics of Robert Rubin and his protégés. The Left, says Reed, has always had an excuse: If the Republicans are elected, the world will lurch to the right. Backing Clinton and Obama and the Democrats is a defensive exercise, and a kneejerk defensive exercise at that.

Walking on Ukrainian Eggshells

Mon, 24 Feb 2014 18:51:28 +0000

At times, you have to wonder where Europe’s strategic and economic sense has gone.

Consider Ukraine, most of whose citizens clearly wish to become Ukrainian-European and have their country join the European Union. Some of whose citizens died for that this week.

When Culture Eclipses Class

Mon, 17 Feb 2014 22:46:44 +0000

America is where class struggle gets derailed by culture wars. It’s happened throughout our history. It happened again last week in Chattanooga.

For more than a decade, the ability of the United Auto Workers to win good contracts for its members—clustered in GM, Ford, Chrysler, and various auto parts factories across the industrial Midwest—has been undercut by its failure to unionize the lower-wage factories that European and Japanese car makers have opened in the South. Daimler, BMW, Nissan, Toyota, Volkswagen—all of them ventured to the non-union South to make cars on the cheap for the American market. All these companies have good relations with the unions in their homeland, but by going south, they signaled they had little to no intention of going union in the U.S.

Chattanooga Showdown

Mon, 10 Feb 2014 22:40:59 +0000

This week—from Wednesday through Friday—employees at Volkswagen’s factory in Chattanooga, Tennessee may well make history. Actually, they may make it twice.

If a majority of the roughly 1,500 workers vote to recognize the United Auto Workers as their union, their plant will become the first unionized auto factory in the South. It will also become the first American workplace of any kind to have a works council—a consultative body of employees who regularly meet with management to jointly develop policy on such work-related issues as shifts, the best way to use new machinery, and kindred concerns. Mandated by law in Germany, works councils do not bargain over wages and benefits, but they do provide a way in which workers can have input into policies that affect their lives. They also have led to countless productivity increases in German manufacturing.

Liberalism’s Legislative Genius Calls It Quits

Fri, 31 Jan 2014 17:14:16 +0000

Two things to know about Henry Waxman: First, during his 40 years in Congress, he authored and steered to enactment the legislation that provided health care to millions, that put nutritional labeling on food, that gave rise to generic drugs, that provided medical care to people with AIDS, that greatly reduced smog and acid rain, that strengthened the safety standards for drinking water and food, and that signally reduced the number of Americans who smoke.

Obama Threads the Needle

Wed, 29 Jan 2014 17:05:55 +0000

For Democrats, for liberals, today’s political climate poses a singular challenge. On one hand, poll after poll shows the public believes the economy is rigged against all but the rich. On the other, poll after poll shows that the same public—particularly after the disastrous roll-out of Obamacare—doesn’t believe government is the answer to the failings of the market economy. Indeed, recent polls show that the public mistrusts big government more than it does big business (which does not mean it holds big business in high, or even middlin’, esteem).

Investing in Stock Buybacks, Not People

Mon, 27 Jan 2014 17:03:12 +0000

One fundamental reason why the American economy continues to limp along is that no one—at least, no one with major bucks—is investing in it. The Obama Administration countered the collapse of private sector investment in 2009 with its stimulus program, which, alas, was partially offset by all the cutbacks in state and local government spending. It’s not been able, however, to get any subsequent investment projects through the Republican House. The private sector—the corporate sector more particularly—returned not just to profitability but record profitability by the middle of 2010, but its profits have neither resulted from nor led to increased investment.

Raising the Minimum is the Bare Minimum

Wed, 22 Jan 2014 17:01:38 +0000

In 1995, when John Sweeney ran the first and as-yet-only insurgent campaign for the presidency of the AFL-CIO, his platform took the form of a book entitled America Needs a Raise. If that title rang true in 1995, it clangs with deafening authority today.

Which leads us to the only problem with the current campaigns to raise the minimum wage: It’s not just workers at the low end of the wage scale who need a raise. It’s not just the work of the bottom 9 percent of labor force that is undervalued. It’s the work of the bottom 90 percent.