In a speech last July, President Obama vowed that “whatever executive authority I have to help the middle class, I’ll use it.” On Wednesday, an estimated 175 workers who serve food, sell mementos or do maintenance work in federal buildings in Washington D.C. went on strike for the day. Instead of showing up at their jobs, they showed up in front of the White House, where they urged President Obama to live up to his word.
Americans are coming to face the hard reality that they live in a new Gilded Age, with inequality at levels not seen since before the Great Depression. Even worse: Uncle Sam is subsidizing this lopsided economy.
Here’s an easy way for the government to save about $7 billion a year: Tighten the cap on the lavish salaries paid to executives at government contractors.
The cap is currently at $760,000 per contract per executive per year. That’s almost 15 times greater than the average household income – meaning that the federal government is helping to worsen the same income inequality President Obama has decried.
Courtney Shackleford is one of two entry-level employees at the Ben and Jerry’s in Washington, D.C.,’s Union Station, where she makes $8.25 an hour. Like many workers in America’s growing low-wage economy, she struggles to make ends meet: Between her pregnancy and her tuition fees at Trinity Washington University, Shackleford doesn’t make enough to cover basic expenses.
How taxpayers are bankrolling the paychecks of already-wealthy executives instead of supporting more livable wages for American workers struggling to get by.
Progressives both in and outside New York City are super excited about Bill de Blasio running City Hall. President Obama summed up those feelings in his endorsement yesterday of de Blasio, saying that his ideas for universal pre-K and affordable housing could make him a "great mayor."
NEW YORK, NY – Following the Census Bureau’s release of poverty numbers verifying the country’s growing income gap, national public policy center Demos has published a new report illustrating how the federal government promotes inequality through its contracting policies.
Cleaning and concessions workers plan to walk off their jobs in federal buildings Wednesday and march on the White House, where they’ll demand President Obama wield his executive authority to raise the labor standards for their taxpayer-funded jobs. Organizers expect turnout for the work stoppage to outstrip the fledgling union-backed group’s first strike May 21, which drew just over a hundred Washington, DC workers. [...]
Earlier today I praised the Obama administration's move to extend labor protections, including overtime and the minimum wage, to some two million home aides. Now for the reality check: This step will surely increase the cost of caring for the aged and disabled at a time when millions of Baby Boomers are starting to retire, straining entitlement programs. What's more, hikes to the minimum wage—such as one recently enacted by California—will further boost home care costs.
Today, the Obama administration extended minimum wage and labor protections to nearly two million home care workers, ensuring that these employees will now be covered under the Fair Labor Standards Act. Last year, Demos submitted a public comment to the Department of Labor urging this regulation.
There’s a line in Johnny Paycheck’s 1977 hit song that goes “I’d give the shirt right off my back, if I had the guts to say ... Take this job and shove it, I ain’t working here no more.” In the past year, fast-food, retail, and warehouse workers have shown they do have the guts—but instead of quitting, they’re fighting back. From New York to California they’re taking to the streets. They’re fighting for a living wage, for respect from their bosses, and in some cases, for the right to form a union.
NEW YORK, NY – Today Washington D.C. Mayor Vincent Gray caved to the ultimatum issued by Walmart and vetoed a living wage bill that was passed by the D.C. City Council. The bill would have required retailers with corporate sales of $1 billion or more and operating in spaces of 75,000 square feet or larger to pay employees no less than $12.50 an hour.
In response to the veto, Demos Vice President of Policy and Outreach Heather McGhee issued the following statement:
Internships have long been a part of building a career trajectory and most students have resigned themselves to the fact that internships will be unpaid. Many college students spend summers interning at various places, hoping to gain some hands-on experience, a few recommendations and some sense of what they would like to do after graduation. However, the unpaid internship is now creeping into life after graduation.[...]
Washington DC needs jobs. When D.C. Mayor Vincent Gray made this point at a press conference this week, he may not have realized he was making a strong case in favor of the Large Retailer Accountability Act.
Paying workers more would lead to lower profits and layoffs for America's biggest corporations, right? Not necessarily.
Critics of a minimum wage hike cite a commonly held belief that forcing low-paying employers such as Wal-Mart to boost compensation would lead to greater economic suffering. Higher labor costs, they argue, would require higher prices, prompting layoffs and more pain.
Most research on rising economic inequality focuses on growing wage gaps between different groups of workers. But of course that is only part of the story. Just as important is the division of the national economic pie between profits going to capitalists and the “labor share” that includes all of the wages and benefits earned by workers.
We famously live an age of capital, where those who own businesses or other assets are prospering, while most people who rely on the value of their labor are doing terribly.