Posts tagged with 'unemployment'
Weekly Diaspora: The High Cost of Cheap Labor
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by Catherine A. Traywick, Media Consortium blogger
A new study about the effects of immigration on U.S. employment supports the long-standing arguments of immigration advocates: Rather than displacing American workers, immigrant labor actually makes our economy stronger. Kevin Drum has the details at Mother Jones.
Now, with reports that undocumented laborers are a mainstay of disaster relief efforts all over the country, Americans are beginning to get a sense of the unsavory work relegated to many immigrants, and the high price immigrants pay for the simple privilege of employment.
Undocumented workers driving wages up
Going back to Mother Jones, new research examining the relationship between immigration and U.S. employment found that—contrary to conventional anti-immigrant wisdom—immigration does not negatively affect American employment. Instead, immigration drives wages up by pushing low-wage American workers into higher-paying jobs.
Here’s how it works: As less-educated immigrants gravitate towards work that requires fewer English language skills (like manual labor), their less-educated American counterparts move on to higher-paying, communications-intensive work that capitalizes on their comparatively better English language skills. This naturally drives wages up, and makes for a more productive economy overall.
The irony, as Drum notes, is that those who complain about immigrants stealing American jobs are the same people who want immigrants to learn English and assimilate as quickly as possible. “If they did,” Drum argues, “then they’d just start competing for the higher paying jobs that natives now monopolize.”
Stiffed in New Orleans
The reality of being an undocumented worker in the U.S. is starker than most Americans realize. Not only are immigrants doing work that most would rather not, they are also often cleaning up the messes that Americans leave behind.
Five years after Hurricane Katrina devastated New Orleans, undocumented laborers remain a key component of reconstruction efforts. Initially drawn to the city by the prospect of work and the Department of Homeland Security’s decision to suspend employment immigration enforcement, many undocumented laborers relocated to New Orleans to assist with rebuilding. But, as Elise Foley reports at the Washington Independent, their immigration status renders them especially vulnerable to rampant wage theft, threats of deportation and workplace violence.
The situation is so dire for many workers that numerous nonprofit groups have initiated projects in the city and are calling for legislation to combat the problem. However, a key concern is that rising anti-immigrant sentiment in other parts of the U.S. could exacerbate difficulties in New Orleans. If such sentiment results in even greater labor abuses or renewed immigration enforcement, whole communities of people who have been dedicated to rebuilding the city could find themselves without livelihood, or even be displaced.
Exploited undocumented workers clean up oil spills
Given the reality that undocumented workers are charged with some of the dirtiest and most unsafe work American employers have to offer, it shouldn’t be surprising that U.S. companies rely on immigrant labor to clean up their worst messes. Not only do undocumented workers have fewer employment options, their immigration status renders them far less likely to report unsafe working conditions, exposure to hazardous materials, and underpayment—making them especially attractive to employers looking to save money or hide bad behavior.
So, naturally, undocumented workers were called in to deal with the catastrophic BP oil disaster in the Gulf of Mexico (though their compliance only earned them the undue attention of Immigration and Customs Enforcement) and, more recently, an oil spill in Michigan.
As Todd A. Heywood at the Michigan Messenger reports, one company in particular has come under fire for hiring and then exploiting undocumented laborers. Hallmark Industrial, a Texas contractor hired to clean up the oil spill, allegedly paid its workers only $800 for up to 100 hours of work per week. Additionally, the company subjected them to unsafe and hazardous working conditions, and even failed to provide workers with on-site toilets—forcing workers to relieve themselves in the areas they were charged with cleaning.
Just 24 hours after the Michigan Messenger broke the story, Hallmark Industrial was fired from the oil spill clean up, its contract terminated by the company which hired it, Garner Environmental Services, Inc. Whether that’s a victory is questionable. Following the termination of the contract, 40 undocumented workers were arrested in Texas, on a bus chartered by Hallmark—presumably just returned from Michigan. While the termination of the contract ensures that its workers won’t be subjected to further workplace abuses, it also ensures that those same individuals must begin the difficult task of finding similar work elsewhere.
Unemployed in California labor camps
Clearly, despite an inexorable willingness to perform low-wage manual labor, undocumented workers are not impervious to the unemployment epidemic. In U.S. labor camps—where migrant agricultural workers can find seasonal or even long term lodging near ranches—farm work is increasingly harder to come by.
As David Bacon highlights at New America Media, both undocumented immigrants and legal “guest workers” are adversely affected by the recession. While the latter possess work visas and may therefore stay in the country legally, both groups live together in the same labor camps, where they remain, ironically, unemployed. Given the present economic climate, there isn’t enough work for even the lowest-wage workers. And in spite of their legal status, even guest workers are barred from applying for unemployment benefits.
The recession has cast both undocumented and legally sanctioned agricultural workers into circumstances even more dismal than those advertised by UFW when it launched its “Take Our Jobs” campaign earlier this summer. Outlining the long hours, low pay, and back-breaking labor associated with farm work, UFW satirically invited American citizens to replace the scores of overworked and undocumented laborers that keep our agricultural industry afloat.
Though meant to be a tongue-in-cheek response to the misconception that immigrants steal American jobs, the campaign exposes a real, if unfortunate, truth about undocumented workers: Even as their presence drives Americans into higher paying jobs, Americans employers are all too happy to subject the undocumented to the worst indignities.
This post features links to the best independent, progressive reporting about immigration by members of The Media Consortium. It is free to reprint. Visit the Diaspora for a complete list of articles on immigration issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, and health care issues, check out The Audit, The Mulch, and The Pulse . This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Audit: Why Do Deficit Hawks Hate Social Security?
by Zach Carter, Media Consortium blogger
Last week, Social Security advocates learned something they had long suspected. Arguments for cutting Social Security aren’t really about economics or the deficit. They’re all about waging war on social services.
In short, some very prominent policymakers are out to dismantle Social Security on ideological grounds. The most recent example of this view comes from Alan Simpson, a former Republican Senator from Wyoming who now serves as co-Chair of President Barack Obama’s Federal Debt Commission. Earlier this summer, Simpson was caught on video spreading absurd lies about Social Security, but his latest outburst explains why he’s been so willing to distort the facts. Simpson simply hates Social Security.
As Joshua Holland highlights for AlterNet, Simpson fired off a nasty email to Ashley Carson, who advocates for elderly women, in which he referred to the most successful social program in U.S. history as “a milk cow with 310 million tits.” (more…)
Weekly Audit: Are Handouts For Billionaires More Important Than Feeding Children?
by Zach Carter, Media Consortium blogger
The crazy conservative assault on government spending has become one of the most irrational economic policy debates in recent years.
The Republican Party is trying to maintain the fiction that direct economic relief for millions of working Americans is a fiscally irresponsible splurge, while simultaneously backing hundreds of billions of dollars worth of economically useless tax cuts for the wealthy. The demands are staggering: cut food stamps for the poor, but preserve perks for billionaires.
As Tim Fernholz notes for The American Prospect, serious economists do not believe that President George W. Bush’s tax cuts for the rich are an effective way to stimulate the economy. Rich people don’t spend money, they save it. We need lots of consumer spending to reinvigorate economic growth and put people back to work.
If we want to create jobs, we need to put money in the hands of people who will spend it. At minimum, that means directing aid to the unemployed and providing federal assistance to states, so that local governments don’t lay off hundreds of thousands of teachers and cops. This is not only the decent, humane thing to do when the economy is struggling, it actually helps. Money the government spends to save a teacher’s job goes out into the economy to pay bills and buy products. For states, this also means that basic public infrastructure is preserved—kids learn and the streets stay safe.
Stonewalling aid
But as the editors of The Nation highlight, Republican politicians have made it nearly impossible to get that critical aid out to American families. They’ve demanded strict measures for these benefits, forcing Democrats to cut food stamps—that’s right, food stamps—in order to keep teachers in school and cops on the street.
Millions of families all over the country depend on food stamps. In the middle of the worst recession since the Great Depression, Republican politicians took a stand to take food from the mouths of children—and they did it while supporting a $300 billion a year in handouts for the rich.
There is no immediate budget crisis. The government can borrow money at record low interest rates, meaning that investors don’t believe the federal budget deficit is too big. But if conservatives were really serious about shrinking the deficit, they’d be encouraging economic growth, not backing billionaire giveaways.
Banking on predation
Our perverse economic policy preferences aren’t limited to budget priorities. As Amy Goodman and Juan Gonzalez emphasize in a segment for Democracy Now!, inadequate rules governing bank lending practices were a fundamental cause of the recession, and are actively hampering the economy’s recovery today.
The Community Reinvestment Act of 1977 (CRA) required banks to make good loans to credit-worthy borrowers in the bank’s community. The idea was simple: If a bank wants to benefit from a community’s resources, it has to give something back and help strengthen the local economy.
Conservatives have lashed out at CRA, blaming it for the mortgage crisis, but the truth is that CRA loans had almost nothing to do with the subprime disaster. CRA loans are affordable loans to creditworthy borrowers—the whole point of subprime lending was to charge outrageously high rates to borrowers with poor credit.
In reality, policymakers’ refusal to expand CRA exacerbated the crisis. Only traditional banks are subject to CRA guidelines, and during the past two decades a host of independent mortgage companies have taken over large swaths of the mortgage market. These unregulated firms issued a lot of lousy loans, often working under direct, explicit instructions from bigger banks, who outsourced their lending in order to get around CRA rules and rip off whole neighborhoods.
Lending is critical to moving the economy out of the recession, and CRA provides reliable, proven rules to get banks back in the business of helping our communities and our economy.
Overdrafting the banks
But a host of other banking policies are also making the recession worse. One of the most egregious is the overdraft fee, which, as Annie Lowrey notes for The Washington Independent, scored banks over $38 billion in 2009 alone. To put that in perspective, the entire banking industry earned a combined profit of $12.5 billion last year, which means that the banks are making their money from gotcha fees, not from productive lending.
Banks have spent years charging overdraft fees without telling their customers that they’re subject to such gouging. Lowrey notes that the average fee is $35 on an average charge of $17. But they also have engaged in a backdating scam, rearranging the order of their customers’ purchases in order to charge more overdraft fees. As I explain for AlterNet:
“Say you’ve got $80 in your checking account, and you decide to pay some bills and run some errands. You spend $30 on gas and another $20 on your water bill. Later, you head to the grocery store and spend $81—oops!—on groceries. To reasonable people, it looks like you’re going to get hit with an overdraft fee. That last purchase put you over the line. But instead, the banks reorder your transactions, processing the groceries first. Now you’re below zero, and they can charge additional fees for your gas and water bills. Wells Fargo charged up to $39 per overdraft. This one mistake cost you $117, and nobody even bothered to tell you it was going to happen.”
Fortunately, a federal judge in California just ruled that this backdating scam was grossly illegal, and ordered megabank Wells Fargo to pay back every penny that it swindled from its California customers with the practice since 2004. But Wells Fargo was not alone—every large bank in the United States does the exact same thing, and it’s allowed them to score billions in deceptive profits. A similar ruling in a larger case against all of the big banks could end a transparent outrage, and restore an enormous amount of unfairly seized wealth to citizens all over the country.
We don’t need to be pushing policies that benefit billionaires at the expense of everyone else. The Bush tax cuts are an unnecessary economic waste. Financial policy that puts the interests of a few giant predatory banks above those of the entire citizenry makes no economic sense.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Audit: Why Are Unemployment Benefits A Major Political Fight?
by Zach Carter, Media Consortium blogger
Congress finally authorized an extension of unemployment benefits on Wednesday, providing a critical lifeline to families across the country and an absolutely essential boost to the economy.
But with the jobless rate hovering near 10 percent, minimum measures like unemployment benefits shouldn’t be a source of controversy. Lawmakers should be debating big-picture jobs packages to get people back to work, not drips and drabs that keep a worst-case-scenario from getting unbearable.
As Annie Lowrey notes for the Iowa Independent, Senate Republicans blocked the unemployment benefits bill for two months, causing benefits to lapse for 2.6 million Americans. That’s a humanitarian outrage. When people don’t have access to this minimal support, they can’t pay bills or feed their kids. There is no excuse for anyone in a position of power to cut off access to such basic social necessities. So what’s the hold up? (more…)
Weekly Audit: The Hidden Casualties of the Great Recession
by Annie Shields, Media Consortium blogger
The June labor market report announced that the unemployment rate is down from 9.7 to 9.5 percent and 83,000 private-sector jobs were created in June. Unfortunately, the situation isn’t quite so rosy. As Annie Lowrey reports for The Washington Independent, the real cause of the drop in unemployment was not more jobs, but fewer workers. Hundreds of thousands of unemployed Americans have now been reclassified as “discouraged” workers who have not actively searched for work for four weeks. As such, they are no longer part of the system.
Unemployed and disenfranchised
What’s worse, the unemployment crisis is hurting some more than others. Among the discouraged workers that have simply dropped out of the labor market, 65% are women. People of color have also been hit especially hard, as have young people that are just entering the labor market. As Katherine S. Newman and David Pedulla of The Nation write:
“The Great Recession is reminding us of how unequal the distribution of damage can be. While virtually everyone other than the top 1 percent is suffering in some fashion, the depth of the fallout varies a great deal by race, education and gender.” (more…)
Weekly Audit: Congressional Inaction Feeding Unemployment Crisis
by Zach Carter, Media Consortium Blogger
After months of modest gains, the U.S. economy lost 125,000 jobs during June. That’s the worst jobs-related news this year. Without serious action soon, the struggling U.S. economy is going to get even uglier. Unfortunately, President Barack Obama’s economic team was slow to recognize the severity of the jobs crisis, and now seems unable to get Congress to actually do something about it.
As David Corn notes for Mother Jones, the recent jobs data is actually much worse than the 125,000 figure implies:
“The economy needs about 150,000 new jobs a month to keep up with population growth and new entries into the jobs market. It needs a lot more than that to make up for the 8 million or so jobs lost in 2008 and 2009.”
Weekly Audit: Senate Republicans Nix Jobs Bill
by Annie Shields, Media Consortium blogger
It looks as if election-year strategies are trumping any actual problem-solving efforts from Republican lawmakers. In the midst of one of the worst unemployment crises in U.S. history, Senate Republicans killed a jobs bill last Thursday by a 56-40 vote.
As congress carries on with the seemingly impossible task of helping the unemployed while keeping Republicans happy, over 15,000 progressives and 1,300 organizations will convene in Detroit this week for the U. S. Social Forum (USSF) to explore alternative solutions to the jobs crisis. Editor’s note: Stay tuned for USSF coverage from Media Consortium members throughout the week in The Audit, The Pulse, The Diaspora and The Mulch.
Killed bill
Democrats trimmed over $20 billion in unemployment benefit extensions from the bill to appeal to Senate Republicans and Blue Dog Democrats. The efforts were to no avail, according to The Michigan Messenger. In addition to extending emergency unemployment benefits for the long-term unemployed, the Senate bill would have increased Medicaid funding and prevented a 21% pay cut for Medicare doctors. (more…)
Weekly Audit: Financial Reform Makes Headway, Jobs And Social Security In Jeopardy
by Zach Carter, Media Consortium blogger
Two critical Wall Street reforms, once declared dead by U.S. megabanks, are suddenly close to Congressional approval. As the House and Senate iron out the differences between their financial overhauls, it now appears that lawmakers are finally willing to ban banks from gambling with taxpayer money by implementing a strong Volcker Rule, and to end taxpayer subsidies for risky derivatives operations.
These reforms will help stabilize the U.S. economy by clamping down on the naked speculation the drove financial markets off a cliff in 2008. But while lawmakers are finally waking up to the economic and political necessity of strong Wall Street reforms, conservatives have blocked key efforts to ease unemployment. President Barack Obama also appears ready to surrender to an assault on Social Security later this year. (more…)
Weekly Audit: Why Democrats Must Focus on Jobs Now
by Zach Carter, Media Consortium blogger
The job market in its worst state since the Great Depression and is putting tremendous strain on millions of Americans. Without action from Washington, D.C., the unemployment rate will remain elevated for years to come, and almost certainly above 9 percent through the end of 2010. Public esteem for economic policymakers isn’t doing so hot either. There are several simple steps that President Barack Obama and Congress could take to create jobs, but of late, neither have shown much interest in doing so.
Jobs matter
As Tim Fernholz emphasizes for The American Prospect, one of the best opportunities to repair the job market is a piece of legislation authored by Rep. George Miller (D-CA). The bill’s strategy is straightforward: Local governments pinched by the recession can apply for federal funds to ensure that teachers, cops, and other public servants are not laid off in the name of balanced budgets. Local governments that have already let employees go could apply for funding to re-hire them.
The result would be a clear win for the economy. Miller estimates that his bill could create 750,000 jobs, while the Economic Policy Institute expects the bill could create as many as 945,000. It’s also a smart political move—Obama’s political adversaries would no doubt find some way to criticize the move (they invented death panels for health care, after all), but as Fernholz notes, voters care much more about getting back to work than they do about ideological warfare or abstract bloviations about the federal budget deficit. (more…)
Weekly Audit: Will Obama Squander Wall Street Success By Gambling On Social Security?
by Zach Carter, TMC Blogger
After nearly a year of debating and haggling, Congress is finally about to take a modest, positive step forward with its bill to overhaul Wall Street. But by readying social security cuts and tax breaks for big corporations, the Obama administration is setting up an economic disaster that could have been crafted by President George W. Bush. It’s a political nightmare for the Democratic Party.
How did we get here?
While the road to our current economic mess has been three decades in the making, we know how we got here. Washington pushed policies that favored short-term Wall Street profits over the living standards of our citizens, eroding the middle class and destabilizing our entire financial system in the process.
As University of Texas economist James K. Galbraith explains for AlterNet, this strategy is enshrined in the ideology of mainstream U.S. economists, who simply refuse to acknowledge the existence of financial fraud. Economists’ blind faith in the power of markets is so strong that they cannot envision market systems in which the rules are systematically broken for profit on a massive scale. That is what happened in the savings and loan crisis, and it is what happened in the years leading up to the Great Financial Crash of 2008. (more…)