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SEEING THROUGH the ECONOMIC BAIT and SWITCH

SEEING THROUGH the ECONOMIC BAIT and SWITCH
Posted by jj on Dec 29, 2023 in Newsworthy
SEEING THROUGH the ECONOMIC BAIT and SWITCH

The values of the U.S. public are not the same as those of the wealthy and corporations. It took a UN official—an outsider—to point out the dissonance.

By Sonali Kolhatkar

 

Olivier De Schutter, the United Nations special rapporteur on extreme poverty and human rights, recently issued a scathing statement about the shameful state of the United States economy. On October 31, 2023, De Schutter called out several top private employers in the U.S., Amazon, Walmart, and DoorDash, for trapping their workers in a cycle of poverty.

He said, “Jobs are supposed to provide a pathway out of poverty, yet in all three companies the business model seems to be to shift operating costs onto the public by relying on government benefits to supplement miserably low wages.”

In a related letter to the U.S. government, De Schutter wrote, “Despite being one of the wealthiest countries in the world, the United States has a high rate of poverty among workers.”

Such public statements by the representative of a top international body ought to be a mark of shame for the U.S., which has historically marketed itself as being a place where people’s dreams come true.

In contrast to De Schutter’s rhetoric, the corporate media’s assessment is quite rosy, relying increasingly on the word “resilient” as a popular descriptor for the economy as a whole. According to the Financial Times, “The stunning resilience in the U.S. economy to date has stemmed from one primary force: consumer spending.” Economist Kathy Bostjancic, who was interviewed for the story, cited, “incredible job growth,” and lauded how “[b]alance sheets look in really good shape, stocks have generally performed really well.”

The U.S. government also sees nothing but cause for celebration. Officials at the Treasury Department on October 26, 2023, boasted how the nation’s economy this year “outperformed expectations along three key dimensions: growing economic output, labor market resilience, and slowing inflation,” and that the nation’s economic progress, “stands out across the globe.”

How to explain these striking contradictions in assessments between the United Nations and those of the corporate media and the U.S. government?

In short, evaluations by the U.S. media and politicians are based on corporate prosperity while the UN’s evaluation is based on individual prosperity.

If we look closely, there is a dissonance on display. We, the people, are being sold the lie that the values of the wealthy are the same as ours. But what’s on offer does not reflect reality.

Merriam-Webster defines the term “bait and switch” as “a sales tactic in which a customer is attracted by the advertisement of a low-priced item but is then encouraged to buy a higher-priced one.” It’s an apt phrase to understand the way in which mainstream economists, corporate media outlets, and many politicians promote the idea of stock values as something ordinary Americans should care about.

A year after dropping to a record low in 2022, child poverty in the U.S. more than doubled, partly as a result of COVID-19 related government benefits expiring. Additionally, median household income fell significantly. Economists rarely address such pesky details when celebrating the “resilience” of the stock market, preferring instead to focus on the fact that more people are employed, not whether their wages and benefits support a decent standard of living.

Occasionally there are stories that undermine the corporate narrative, such as an NBC story in March 2023, headlined, “Most people have jobs, but many are unhappy about their money.” But such coverage is the exception.

The story we are expected to internalize, in direct conflict with our own financial worries, is that we must be content with the nation’s financial status quo because stocks are performing well and corporate balance sheets look good.

There is another story, one that is consistent with individual bottom lines. “International human rights law recognizes a right to a living wage,” wrote De Schutter. “Workers should be provided, at a minimum, with a ‘living wage,’ regularly adapted in accordance with costs of living.”

De Schutter’s assertion that Americans have the right to earn a living wage is one that rarely enters mainstream U.S. discourse. When people are denied their rights, they will rise up to claim them, and the recent surge in union activity and strikes is an indicator that growing numbers of people are seeing through the economic bait and switch.

The changing narrative on wealth inequality, wage stagnation, and economic health is reflected in the simple and direct message that United Auto Workers (UAW) president Shawn Fain regularly displays on his “Eat the Rich” shirt. UAW members are voting on major wage gains that their union won from the Big Three automakers after weeks of militant strike activity grounded in an entirely different set of values than those that frame a rosy economic outlook.

The phrase “Eat the Rich” has its origins in the French Revolution and the anger of the poor aimed at 18th-century aristocracy. The quote, “When the people shall have nothing more to eat, they will eat the rich,” is attributed to French philosopher Jean-Jacques Rousseau. Its popularity in contemporary U.S. society is a warning to those in the media and the halls of government against selling the lie that corporate values are equivalent to people’s values.

Congress and the White House could easily thwart the growing popular tide by adopting any number of simple and direct policy changes. Echoing progressive recommendations, De Schutter made several suggestions in his letter to the government: if the minimum wage is too low, raise the federal minimum wage and build in cost-of-living increases. If unions are too weak, close the loopholes that allow corporate employers to undermine union activity.

Another direct solution is this: if the pandemic-era benefits cut childhood poverty rates, renew the benefits.

One can understand why the Biden administration wants to cheer on the state of the U.S. economy. In spite of congressional gridlock and, especially, Republican roadblocks to commonsense economic legislation, economic stability is one of the central responsibilities that government is charged with, and achieving success in this realm is key to Biden’s reelection efforts in 2024. So, his administration is putting a happy face on the economy and papering over the contradictions between stock values and real wages.

One can also understand why the corporate media cheers on economic indicators that are important to the wealthy. Media companies are cut from the same commercial cloth as Amazon, Walmart, and DoorDash, the corporations that De Schutter singled out for exploitative treatment of their workers.

What is less understandable is why the public has accepted the bait and switch in economic values for so long.

AUTHOR BIO: Sonali Kolhatkar is an award-winning multimedia journalist. She is the founder, host, and executive producer of “Rising Up With Sonali,” a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Her most recent book is Rising Up: The Power of Narrative in Pursuing Racial Justice (City Lights Books, 2023). She is a writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine. She serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. She also sits on the board of directors of Justice Action Center, an immigrant rights organization.

 This article was produced by Economy for All, a project of the Independent Media Institute.

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 Browse our site and discover the broad extent of our subject matter by, for, and about women. *

 

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HOW PEOPLE ARE FIGHTING THE WORLD'S RELIANCE ON THE WAR ECONOMY

HOW PEOPLE ARE FIGHTING THE WORLD'S RELIANCE ON THE WAR ECONOMY
Posted by jj on Nov 17, 2023 in Economic Justice, Environment, Newsworthy, Intersectional Issues
HOW PEOPLE ARE FIGHTING THE WORLD'S RELIANCE ON THE WAR ECONOMY

Many people are already investing themselves in the local peace economy as they divest from the economy of war.

By April M. Short

War is not innate to humanity; it is learned culturally, and intentional systems of peace can prevent it from happening, according to anthropological research. We are living at a critical time in the history of humanity in which preventing and divesting from war are essential to our future existence—especially given the realities of the global climate crisis and the fact that the U.S. military is the worst single polluter that exists (and not even mentioning the unspeakable potential for destruction that nuclear weapons pose). If war is cultural, then we can prevent it by intentionally moving ourselves into a culture of peace. How do we do this? We begin with ourselves. We begin to break our war economy habits, and actively divest ourselves, wherever possible, from the ways in which the war economy takes hold in our lives. And we purposefully invest ourselves at the local level in what is often called the peace economy—the caring, sharing, supportive economies that already exist all around us.

The economy of war thrives on extraction and materialism, so it has—for thousands of years, and by no accident—made trite (or violently stifled) the things that are most valuable and important about living: caring; nurturing; love; art; peace; expression; and connection with nature, our bodies, and each other. The war economy, which is the overarching economic system of our times, promotes a culture that actively devalues play and community, and overly values hard work and individualism—to the grave detriment of mental and physical health. It uplifts money hoarding, competition, and the flaunting of one’s material wealth over generosity, sharing, collaboration, and appreciation. It stifles grief and asks us to harden ourselves against the expression of feeling rather than inviting us into depths of emotion where we can realize the gift of being alive in this world, together, for just a brief time.

The results of this unsustainable and unnatural lifestyle are ugly: Clear-cut, monocropped tree farms where once thrived biodiverse FernGully-esque old grove forests in the Pacific Northwest, the Amazon, and around the world; endless mining and building projects that plunder habitats, natural wonders, and Indigenous communities; worsening mental health afflictions, an opioid addiction epidemic, and soaring suicide rates; toxic chemicals and microplastics in our soils, oceans, streams, and bloodstreams that are causing irreparable damage to the planet and our bodies; people treated like criminals for experiencing homelessness, even amidst a devastating cost of living crisis; racist, militarized police murdering people in broad daylight, and often walking free even when they’re caught on camera; hustle and greed culture and the agony that comes with living a daily grind; so much unnecessary loneliness and stress… and this list could go on and on.

But a movement is building from the commons to break with these war economy ways and replenish ways of being that are actually livable. Around the world, there are projects, people, and organizations creating solutions to the problems of our times. They are actively helping in divesting from the war economy in powerful ways. These examples of the local peace economy in action demonstrate that it is possible to create systems in which wealth and worth are rooted in equitable, community-centered care practices like health care for all, farming and feeding each other, parenting and education that are entrenched in love and engagement, and a culture that uplifts us and inspires interconnection.

The peace economy is built brick by brick, through the commitments of individual people and communities. What follows are some examples (of many more that exist worldwide) showing how people and communities are divesting from the war economy and investing in a future centered in peace, love, and aliveness:

Our globalized, Big Ag, monoculture food systems—which are monopolized by a handful of megacorporations owned by billionaires responsible for the war economy—are unraveling. The COVID-19 pandemic cast a bright light on the fragility of those systems. But the issues the pandemic exposed were present prior to 2020, and they promise to continue into the future. People in communities around the world are relocalizing food supply chains to create food sovereignty and reclaim culture in these times of fraying global food systems:

     Communities in the Pacific Northwest have been working to regionalize food supply chains through relocalized flour mills, sustainable livestock ranches, a         creative chicken farming model, and community garden programs. These efforts have paid off in creating food security for communities while also leading to           greater job opportunities and a thriving ecosystem.

     Palestinian farmers have been rekindling connections with Indigenous farming practices and creating community-supported agriculture (CSA) programs to           resist Israeli colonialism. This has helped Palestinians to reconnect with their land and economically support locally grown food.

     Black, formerly incarcerated people in Chicago are challenging the megacorporations that tend to dominate food contracting with schools and other large         facilities in America by prepping locally sourced meals for schools, nursing homes, and transitional housing. The Chicago worker cooperative ChiFresh Kitchen is       100 percent employee-owned and provides nutritious and culturally appropriate food to these institutions and facilities.

     There are many networks of Indigenous seed savers and others keeping and propagating seeds in community gardens and cooperative programs in the           U.S. and around the world. Indigenous-led communities like Seeding Sovereignty and many others are keeping their spiritual connections and cultural practices       alive through their connections with seeds, and seed savers are challenging the monocrop-based Big Ag industry that is responsible for so much deforestation         and other climate destruction. These networks have also helped bring back “Indigenous foodways that were lost during genocide and forced relocation” inflicted       by European colonizers.

     The Deep Medicine Circle in the San Francisco Bay Area, a women of color-led, worker-directed 501(c)(3) nonprofit, is one group that is rethinking health             care at its roots, and healing the ways U.S. colonial extraction is making people sick. Local community members who make up Deep Medicine Circle are creating       systems of health and care, through the lens of community food justice. They’re planting community gardens and thinking up long-term models of localized             food and community engagement that uplift indigenous practices, provide access to healthy foods in poor urban neighborhoods, and dismantle colonialist ways         of thinking and being in the world.

      Neighbors are voluntarily keeping free-food fridges stocked in cities around the world, in a mutual aid movement that gained speed in response to the          economic impacts of the COVID-19 pandemic. People have fed and cared for each other through the pandemic and beyond, creating a free-fridge movement            that has raised awareness about racial inequity in food systems.

     Sallie Calhoun’s Paicines Ranch in California is working to bring agricultural business and investment up to date with our times and closer to             nature by prioritizing ecosystem health, habitat, and the sequestration of carbon through soil practices. The project was founded with the aim of working with           the dynamic natural world to explore ways of building healthy ecosystems while growing crops and supporting community through food. Paicines Ranch is               intentionally creating a model of doing business that is focused on managing complexities rather than solving problems, and is centered on adding true value           over profits.

Outside of the food system, examples of other applications of mutual aid, social justice, creative arts, community resilience, and activism for human rights and the environment that all embrace the peace economy include:

     People are reimagining safety through alternatives to policing. Safety in the peace economy comes from the engagement of community and the                   reallocation of resources and funding into programs of care—not militarized police forces and punitive systems of justice. While many alternatives to policing           already exist, recent initiatives after the murder of George Floyd by police in May 2020 have introduced changes, both big and small, across the US, and the            global uprisings against systemic racism have led to these issues being part of the mainstream conversation.

     Creative cooperatives are reclaiming real estate and bringing access to art, living spaces, and community spaces back to marginalised Black, Indigenous,         and people of colour (BIPOC) in Oakland and elsewhere who have played an integral part in shaping the culture of cities across the US.

     Fire recovery efforts in Oregon, California, and elsewhere have depended on people-led mutual aid projects and local volunteer networks.                 Devastating fires, worsened by climate change and the criminal negligence of public utilities like Pacific Gas and Electric (PG&E), have been increasing in recent       years, some of them incinerating entire towns. Fire recovery efforts in Oregon and California have largely been community-led, and networks have formed               among neighbours to create resilience and support—including grief spaces like those created in Ashland, Oregon, which provide a space for people to share their       experiences of loss.

     People are fighting the fossil fuel industry while building community spaces and support for people who are homeless in New Mexico. The                 grassroots project is part of a larger project in New Mexico. SOL for All has brought solar power to various locations across the state in an effort to support               alternative energy solutions, which are necessary to combat climate change.

     The largest dam removal in history started in 2023 in southern Oregon and Northern California, thanks to years of Indigenous-led community           activism. The Karuk, Yurok, and other Native American groups for whom the Klamath River Basin is their ancestral home since time immemorial have been             organizing against the dams since they were proposed in the 1910s—which have had disastrous results for people, salmon, and other wildlife—for decades.             After multigenerational efforts, the massive dam removal project is expected to be completed by 2024.

      Many people are also building a peace economy through creative sharing efforts and alternatives to money-based exchanges. This includes                community gardens, mutual aid groups, and participation in the solidarity economy, and just transition efforts like those of Americans with jobs sharing their           stimulus checks with those in need in the early days of the COVID-19 pandemic. People are also creating skill share networks like Kola Nut Collaborative and           others, and millions of people daily are sharing tools and operating in a moneyless economy via “free” signs on street corners, Craigslist’s “free stuff” page,             Freecycle, and other creative routes.​​

The above are just some of the countless examples of the peace economy in action—and most of these efforts were started by just one or two people deciding to do something about the problems they saw happening in their local community.

Author: April M. Short is an editor, journalist, and documentary editor and producer. She is a co-founder of the Observatory, where she is the Local Peace Economy editor, and she is a writing fellow at the Independent Media Institute. Previously, she was a managing editor at AlterNet as well as an award-winning senior staff writer for Good Times, a weekly newspaper in Santa Cruz, California. Her work has been published with the San Francisco Chronicle, In These Times, LA Yoga, Pressenza, the Conversation, Salon, and many other publications.

 This article was produced by Local Peace Economy, a project of the Independent Media Institute.

 

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IT'S NOT THAT HARD TO SOLVE HOMELESSNESS

IT'S NOT THAT HARD TO SOLVE HOMELESSNESS
Posted by jj on Jul 21, 2023 in Newsworthy
IT'S  NOT  THAT  HARD  TO  SOLVE  HOMELESSNESS

Our economic priorities have created a serious housing crisis and fueled homelessness. Solving the problem simply requires us to change our priorities from profits to people.

By Sonali Kolhatkar

California is home to Hollywood and Disneyland, sun and sand, and… nearly one-third of all unhoused people in the entire nation. Compare this to the fact that 12 percent of the nation resides in the Golden State and it becomes clear that there is a serious problem of housing that undercuts the Left Coast’s liberal reputation.

An extensive study of the state’s struggle with homelessness by the Benioff Homelessness and Housing Initiative at the University of California, San Francisco (UCSF) paints a detailed picture of the problem, and it’s not pretty. Homelessness is thriving at the intersections of racism, sexual violence, overpolicing, and more. The report’s authors explain, it “occurs in conjunction with structural conditions that produce and reproduce inequalities.”

Contrary to the popular perception that good weather fuels voluntary homelessness and consists largely of transplants from out of the state, the report points out that 90 percent of the unhoused had been living in California when they lost access to housing. And, three-quarters continue to remain in the same county.

The problem also manifests in systemic racism, with Black and Indigenous people overrepresented among the unhoused compared to their populations. More than a quarter of all unhoused people in California are Black, and yet only 5 percent of the state’s overall population is Black.

Homelessness also fuels sexual violence that disproportionately impacts unhoused LGBTQ people and women. More than one-third of transgender and nonbinary people experiencing homelessness reported being victims of sexual violence, while 16 percent of cisgender women did so as well.

And, nearly half of all the study’s participants (47 percent) report being harassed by police. Law enforcement routinely subjects California’s unhoused population to violent police raids, dehumanizing searches and seizures of property, forced relocation, and incarceration. The unhoused are disproportionately criminalized by a system that pours a significant amount of tax dollars into policing rather than into affordable housing. Increasingly, cities are simply making it illegal to live outdoors, as if criminalizing homelessness will magically make the math of housing affordability work out.

The UCSF report is neither the first, nor will it be the last one to explore the extent of homelessness in California. And while it makes clear how serious the problem is, the main question remains: how to solve it?

There are several policy solutions put forward including rental assistance in the form of housing vouchers, an exploration of shared housing models, mental health treatment, and even a progressive-sounding monthly income program. But these are merely metaphorical band-aids being applied to a gaping, bleeding wound. None of them address the fundamental reason of why there are more than 171,000 people without housing in California.

Interestingly, the UCSF study’s main author, Dr. Margot Kushel, honed in on the core issue in an interview with the San Francisco Chronicle when she said, “We have got to bring housing costs down, and we’ve got to bring incomes up… We need to solve the fundamental problem—the rent is just too high.”

This is a nationwide problem and California is merely on the front lines.

So, how to bring housing costs down? The federal government sees a shortage of homes as the problem, treating it as an issue of supply and demand: increase the supply and the price will fall. But there is no shortage of housing in the nation. There is a shortage of affordable housing and as long as moneyed interests keep buying up housing, building more won’t be a fix.

Since at least 2008, hedge funds have been buying up single-family homes and rental units in California, throwing a bottomless well of cash at a resource that individuals need for their survival and pushing house prices and rents out of reach for most ordinary people. This too is a nationwide phenomenon, one that was extensively outlined in a 2018 report produced by the Alliance of Californians for Community Empowerment (ACCE), Americans for Financial Reform, and Public Advocates.

That report makes it clear that Wall Street hedge funds see housing as the next frontier in profitable investing. Once these funds buy up homes and apartments to rent out, they cut the labor and material costs associated with maintenance, and routinely raise the rents.

And why wouldn’t they? Their bottom line is profits, not safe, clean, fair, affordable housing. In 2000, the average American renter spent just over 22 percent of their income on housing. Today that percentage has jumped to 30. Hedge fund landlords are likely celebrating their success at getting “consumers” to fork over a larger share of money for their “products.”

The only way to stop hedge funds from taking over the housing market is… [drumroll] to stop hedge funds from buying up homes. To that end, the ACCE report calls on local municipalities and state governments to offer tenants the first right of refusal in purchasing homes, along with appropriate supports, and then offer nonprofit institutions like community land trusts to have the second right of refusal to purchase. It also calls on the federal government to “not incentivize speculation, or act to favor Wall Street ownership of housing assets over other ownership structures.”

The other end of the problem is that incomes are too low. According to Dean Baker at the Center for Economic and Policy Research, the federal minimum wage ought to be $21.50 an hour in order to keep up with the rise in productivity. But it’s not. It’s a horrifyingly low $7.25 an hour. And while nearly half of all states have pushed that wage floor far higher to about $15 an hour, it doesn’t come close to what’s needed. Even the few dozen cities that have forced the minimum wage past their state requirements don’t get to $21.50 an hour.

Yes, individual incomes are rising because of worker demands on employers, but they are not keeping up with inflation. And even though government officials admit that rising wages don’t fuel inflation, the Federal Reserve sees rising wages as the problem, countering them with higher interest rates.

Putting together these pieces of the puzzle, one can only conclude that our economy is designed to keep ordinary Americans living hand to mouth, running on an endless treadmill just to keep from falling into homelessness.

The rent is too damn high—to cite affordable housing activists—and wages are too damn low. That is the nutshell description of an economy that is simply not intended to center human needs.

Passing laws to prevent hedge funds and other large businesses from buying up homes and apartments and raising the minimum wage to at least $21.50 are hardly radical ideas, but they offer course corrections for an economy that is running roughshod over most of us. Rather than tinkering at the edges of the problem and putting forward complex-sounding solutions that don’t actually address the root of the issue, wouldn’t society be better served by redesigning our economy to make homelessness obsolete?

Author Bio: Sonali Kolhatkar is an award-winning multimedia journalist. She is the founder, host, and executive producer of “Rising Up With Sonali,” a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Her most recent book is Rising Up: The Power of Narrative in Pursuing Racial Justice (City Lights Books, 2023). She is a writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine. She serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. She also sits on the board of directors of Justice Action Center, an immigrant rights organization.

 This article was produced by Economy for All, a project of the Independent Media Institute.

 

 

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MICHIGAN OPENS the DOOR to RESTORING UNION POWER

MICHIGAN OPENS the DOOR to RESTORING UNION POWER
Posted by jj on Apr 04, 2023 in Economic Justice
MICHIGAN  OPENS  the  DOOR  to  RESTORING  UNION  POWER

 For the first time in nearly 60 years, a state is poised to reverse its “right to work” law and begin to undo the damage of a corporate-driven anti-union trend.

By Sonali Kolhatkar

 

 

Michigan is expected very soon to reverse its so-called “right-to-work” (RTW) law. The repeal, led by Democrats and passing along strictly partisan lines, is a concrete outcome of the liberal party winning a narrow majority of seats in the state’s House and Senate last November and Democratic governor Gretchen Whitmer winning reelection. Democrats managed to outdo Republican-led gerrymandering on Election Day and now hold a two-seat advantage in each chamber.

Showing more party discipline than their counterparts have tended to muster at the federal level in recent years, Michigan Democrats have wasted no time in using their slim legislative advantage in pushing through a repeal of their state’s RTW law. Whitmer is expected to approve the repeal when it reaches her desk.

RTW laws are a particularly insidious conservative ploy to undermine unions. The idea, which conservatives glibly couch in terms of “freedom,” is to prevent unions from collecting mandatory fees from members to sustain themselves. Unions require such fees in order to fund the operations of serving and representing their members. It’s the same with any club that offers perks—membership dues fund operations.

Unions gained the right to do this under the 1935 National Labor Relations Act. But less than a decade later, that right was eroded when Congress passed the 1947 Labor Management Relations Act, also known as Taft-Hartley, which first opened the door for RTW laws. In 2018, conservative justices at the United States Supreme Court ruled in favor of such laws for public sector workers, adding momentum to the rightward shift.

The National Labor Relations Board explains the current state of the Republican-led anti-union trend in this way: “If you work in a state that bans union-security agreements, (27 states), each employee at a workplace must decide whether or not to join the union and pay dues, even though all workers are protected by the collective bargaining agreement negotiated by the union. The union is still required to represent all workers.” Imagine calling AAA and demanding its roadside benefits without paying the auto club’s modest yearly fee.

Recognizing that dues are a source of unions’ financial power, Republicans used every advantage, including ill-gotten ones like gerrymandered districts, to push through RTW laws in more than half of all states. They used deceptive language—who doesn’t want the right to work?—and convinced voters it was in their interest to weaken unions without saying the laws were intended to weaken unions. Americans for Prosperity, a conservative pro-business think tank that we are expected to believe cares about workers’ rights, claimed that RTW laws were about “permitting workers the freedom to decide for themselves whether they want to join a union and pay dues.”

For years, I was required to pay dues to my union, SAG-AFTRA, because California, where I live, is not an RTW state. I did so happily, because even at the nonprofit community radio station where I worked, management was continuously trying to lower operating costs at the expense of workers’ wages and benefits. Union representation helped stave off staff cuts, represented workers in grievance filings, and became our collective voice during contract negotiations. Unions are not just for corporate or government workplaces. They are not just for poorly treated or underpaid workers at Amazon, Starbucks, or Walmart. All nonmanagement workers deserve the kind of power that a union brings. And it’s precisely that power that conservative lawmakers have been (successfully) chipping away at.

The data is clear: those states where RTW laws have been on the books show lower rates of unionization and lower wages overall. A June 2022 paper published in the National Bureau of Economic Research examined five states where such laws had been in effect since 2011. The researchers concluded unequivocally that, “RTW laws lower wages and unionization rates.”

According to the Economic Policy Institute—which has come to similar data-driven conclusions as the aforementioned paper—Michigan’s reversal of the GOP’s anti-union statute would be “the first time a state has repealed a RTW law in nearly 60 years.” The victory is all the more significant because of the state’s historic position as having had “the highest unionization rate in the country” and correspondingly high median wages before Republicans passed an RTW law in 2012. But in the past decade, unionization rates and wages both fell in Michigan. In other words, the state’s RTW law had its intended result.

Now, following Michigan, Democrats in other RTW states such as Arizona and Virginia have introduced laws to restore union power. At the federal level, Senator Elizabeth Warren has reintroduced the Nationwide Right to Unionize Act, which would repeal all RTW state laws. The PRO Act would similarly restore the right of unions to collect member dues nationally.

Conservative Republicans are likely terrified of how Michigan might embolden pro-union momentum across the country. Unsurprisingly, Fox News published an op-ed by billionaire Doug DeVos denouncing the repeal of Michigan’s anti-union law. DeVos’s Michigan-based family made its fortune on Amway, a business that Jacobin’s Rachel T. Johnson called, “the world’s biggest pyramid scheme.” (If the name sounds familiar, he is indeed the brother-in-law of former Education Secretary under Donald Trump Betsy DeVos.)

Doug Devos’s Fox News op-ed is titled, “I know firsthand how much right to work matters,” which might be a true enough statement coming from a billionaire whose family made its fortune on the backs of workers. He also identified precisely that “What’s happening in Michigan is the direct result of the November elections. Democrats won control of the legislature for the first time in nearly four decades.”

But then he veered into the kind of unproven claims that only a pyramid schemer might have the gall to make openly, that “right-to-work states have seen faster job growth, faster income growth, and faster population growth.” He also cited, without proof (after all, it’s Fox News!), that Michigan’s RTW law led to “rising incomes,” and “falling unemployment and poverty.”

Ultimately, DeVos is worried that “Repealing right to work will send a message that our state… will suffer from… less freedom.” And there again is that vague buzzword, freedom. What DeVos really means but doesn’t say is that he thinks workers deserve the freedom to live under the thumb of their corporate bosses, the freedom to remain in jobs that pay less and less, and the freedom to walk away from poorly paid jobs.

Freedom is the blank slate on which conservatives have projected their wildest profit-driven fantasies. But those fantasies are the flip side of their fears of worker power. It’s no surprise that RTW laws stemmed from the Taft-Hartley Act, a pro-business law intended to curb the power of multiracial worker movements.

Reverend Dr. Martin Luther King Jr. presciently said, “In our glorious fight for civil rights, we must guard against being fooled by false slogans, such as ‘right to work.’ It is a law to rob us of our civil rights and job rights.” In the war of words over freedom, Dr. King beats DeVos any day.

This article was produced by Economy for All, a project of the Independent Media Institute.  

Released for Syndication: 03/17/2023
 

Author Bio: Sonali Kolhatkar is an award-winning multimedia journalist. She is the founder, host, and executive producer of “Rising Up With Sonali,” a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Her forthcoming book is Rising Up: The Power of Narrative in Pursuing Racial Justice (City Lights Books, 2023). She is a writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine. She serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. She also sits on the board of directors of Justice Action Center, an immigrant rights organization.

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TIPPING IS NOT A REWARD — IT'S AN INSULT

TIPPING IS NOT A REWARD — IT'S AN INSULT
Posted by jj on Feb 21, 2023 in Home Page, Newsworthy
TIPPING   IS  NOT  A  REWARD — IT'S  AN  INSULT
It’s time to end our national reliance on tipped workers. The unhealthy dynamic created by tipping emerges from decades of legalized subminimum wages and keeps workers subservient to the whims of employers and customers.
 
By Sonali Kolhatkar
 

One of the things that new visitors to the United States learn—but often don’t understand—is that they are expected to tip nearly every service worker they encounter. The most obvious tipping expectation is at restaurants and bars, where they must gift an additional 18-25 percent of their total bill to their waitstaff or bartender.

Taxi and rideshare drivers also expect tips, as do hotel bellhops and cleaning staff, as well as hair stylists, and even babysitters. Delivery drivers, in the age of online shopping, expect tips—but only those delivering food via such services as DoorDash, and not, say, your Amazon package deliverer, and certainly not your local postal worker bringing you your daily dose of junk mail.

Forget those who are new to the U.S.—the expectations about when to tip and how much to tip are bewildering even for those of us who have lived here our whole lives. There are detailed guides now for the confused consumer, such as New York magazine’s explaining-and-shaming approach to tipping etiquette after the COVID-19 pandemic changed the rules of “polite society,” while exhorting readers to accept the status quo: “It’s just the rules; don’t complain.” Real Simple magazine recently issued a primer that billed itself as the “Ultimate Guide” for the confused tipper. “Tipping used to be about showing appreciation for good service,” lifestyle writer Julie Vadnal says in the Real Simple article. “[B]ut as the minimum wage has plateaued (the federal minimum wage has been $7.25 since 2009), workers have come to depend on it.” The federal government’s baseline wage for tipped workers is an unimaginably low $2.13 an hour.

What we need is an “Ultimate Guide” on how to make our economy fairer so that ordinary people are not subsidizing the salaries of low-wage workers—because that’s ultimately what tipping is. How—and why—do we tolerate it?

Think about the explicit requests for tips that are cropping up at walk-up cafes where the cashier taking your coffee order offers you a digital tablet to complete your cashless transaction and where you must choose a tip amount of anything between 10 and 22 percent in view of the worker. Sometimes the machine suggests even explicit dollar amounts—a $2 tip on a $4 coffee?—that obscures the tip percentage. If the worker you interacted with has been rude or cold, you can choose a low tip or no tip at all in retaliation. If they have been kind and you still tip frugally, you are the rude, cold one.

This quick interaction between customer and server is a veritable minefield of values, placing the onus of paying a worker directly on the person being served rather than on the worker’s employer.

It’s a sly calculation on the part of business owners to ensure compliant workers while gouging customers: A worker’s take-home pay could be diminished simply if they had a bad day and didn’t feel like smiling, while at the same time, the customer feels obligated to pay for their product, and then some. Tipping is just another way for businesses to pass their costs on to customers.

Worse, it encourages sexism and sexual harassment, especially for women workers who often lose out on tips if they snub sexual advances by male customers. According to One Fair Wage, nearly 7 out of 10 tipped workers are women.

The Economic Policy Institute (EPI) lays the blame for our national tipping culture on the 1966 amendments creating a so-called “tip credit” to the Fair Labor Standards Act. According to EPI, “The creation of the tip credit—the difference, paid for by customers’ tips, between the regular minimum wage and the sub-wage for tipped workers—fundamentally changed the practice of tipping.”

The National Restaurant Association, which is the major lobbying arm of an industry that disproportionately relies on tipped workers, has for years pressured lawmakers to keep the tip credit in place and enable the continued underpaying of workers. In a press release in November 2022, it denounced the successful Washington, D.C., vote to eliminate the tipped wage, claiming bizarrely that tipping is good for both workers and customers. The subtitle of the press release reads: “Current tipping system increases earning potential for tipped workers and allows operators to staff at levels needed for exceptional hospitality.”

According to a National Restaurant Association executive, the vote to eliminate tipped wages means that “some operators will reduce their workforce.” It’s the same logic that fiscal conservatives use use to counter an increase in the federal minimum wage: raising salaries will mean people will be fired because employers won’t be able to afford to pay the higher wages. But EPI points out that “[p]aying tipped workers the regular minimum wage has had no discernable effect on leisure and hospitality employment growth in the seven states where tipped workers receive the full regular minimum wage.”

The lobbyist also condescendingly claims that “[t]he tipped income system often comes under fire because there is widespread misunderstanding about how it works.” Apparently, the rest of us ignoramuses don’t get that “[e]very tipped restaurant employee earns at least their state’s minimum wage” (emphasis in original) and that “[t]his amount is paid partly by the operator and partly by tips.”

In truth, employers, especially corporate chains, don’t always bother ensuring that their workers make at least the full minimum wage. Outback Steakhouse’s workers, for example, are suing their boss over this very issue. And, if it were true that tipped workers actually take home what is owed to them, there wouldn’t be a stark discrepancy in poverty levels between tipped workers and non-tipped workers. EPI points out that “in the states where tipped workers are paid the federal tipped minimum wage of $2.13 per hour… 18.5 percent of waiters, waitresses, and bartenders are in poverty.” But, “in the states where they are paid the regular minimum wage before tips… the poverty rate for waitstaff and bartenders is only 11.1 percent.”

Not only is the National Restaurant Association obscuring the fact that subminimum wages are beneficial to employer profit margins, but it has even deceived workers into subsidizing the cost of the lobbying that keeps wages suppressed. The New York Times recently revealed how the National Restaurant Association runs a company called ServSafe, widely used by new workers for mandatory training on things like food safety. But ServSafe is also the association’s fundraising arm.

In other words, workers are inadvertently paying to ensure their wages remain low. And the lobbying has been wildly successful.

For example, when Washington, D.C., voters passed Initiative 77 in 2018 to raise the tipped wage, the city council repealed it, instead passing a law raising awareness of the rights of tipped workers. But lawmakers never funded the law. Then, in November 2022, voters passed a similar measure, Initiative 82, with the support of nearly three-quarters of all voters (this was the vote that prompted the association’s aforementioned defensive press release). The D.C. city council has again tried to thwart the measure, delaying its implementation by a few months. Activists for 82 say they believe the restaurant industry’s lobbying has played a role.

Now, some New York lawmakers are getting ready to propose a similar bill that would phase out the subminimum wage for tipped workers in their state. And, there is strong public will to do so. A survey by Data for Progress found robust bipartisan support among likely voters to do away with a system requiring workers to depend on tips. The progressive organization One Fair Wage has several campaigns—including in New York, Washington, D.C., Michigan, Maine, Massachusetts, and Illinois—to eliminate the tipped wage system.

There are nations in the world where tipping is not only unusual, but considered downright rude. For example, according to one social media influencer of Japanese descent, tipping in Japan is frowned upon because it’s seen as “petty,” and akin to an insult. TikTok user Cyber Bunny compares a customer tipping a server in Japan to a parent giving a child an allowance.

Ouch.

Such a dynamic can develop here in the U.S. too, if we had a culture and set of laws that respected worker dignity. After all, money is power, and for a customer to wield power over a worker in such a direct manner ought to be considered unthinkable. Wages are not allowances, and workers are not children.

This article was produced by Economy for All, a project of the Independent Media Institute.

Author Bio:

Sonali Kolhatkar is an award-winning multimedia journalist. She is the founder, host, and executive producer of “Rising Up With Sonali,” a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Her forthcoming book is Rising Up: The Power of Narrative in Pursuing Racial Justice (City Lights Books, 2023). She is a writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine. She serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. She also sits on the board of directors of Justice Action Center, an immigrant rights organization.

 

 

 

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