Part I: Weak Employment, Stagnant Wages, and Booming Profits
The 2007-2010 recession was the longest and deepest since World War II. The subsequent recovery has been the weakest in the postwar period. While total employment has finally returned to its pre-recession level, millions remain out of work and annual output (GDP) is almost a trillion dollars below the economy’s “full-employment” capacity. This column explains how high levels of unemployment have held down wages, contributing to soaring corporate profits and a remarkable run-up in the stock market. Read more.
Maritime Union of Australia National Secretary Paddy Crumlin has described Bob Crow as a true internationalist who encouraged trade unionists, civil rights advocates and politically progressive people in every field of endeavour.
Crow, the general secretary of the Rail, Maritime and Transport (RMT) union, died aged 52 early on Tuesday morning in an east London hospital after reportedly suffering an aneurysm and a heart attack.
Crow was a figure of controversy in the United Kingdom who never shied away from a fight in defence of his members. He also made a memorable speech at the MUA Quadrennial Conference in Sydney in 2012 where he spoke passionately about the many battles facing working people across the world.
Mr Crumlin, who is also President of the International Transport Workers' Federation said: "Bob Crow was a worker and a leader of working women and men of his union, his country and the world. His unassailable courage, moral persistence, generosity of spirit and inevitable humour inspired and encouraged trade unionists , civil rights advocates and politically progressive human beings in every field of endeavour to be more effective and try harder for a better and more equitable life for all regardless of race gender age or material circumstance.
"Bob was unrelenting in the active prosecution of this vision of a better world. His commitment started with the seafarers and rail workers of his union the RMT and flowed inexorably into the lives of all working people seeking affirmation and justice in the face of often extraordinary deprivation and persecution.
"He spoke with the honesty and directness of his actions and commitments. He was above all a family man who understood that the real wealth and value of our lives also springs from a loving nurturing of those closest to us. Our parents, partners children and extended family.
"Our deepest and most sincerest sympathies and thoughts reach out to his wife Nicky and children at this most tragic and heart wrenching point in the hope that may ease their great pain in some way.
"Vale Bob our great friend and comrade, constant source of our determination for a more just and humane world,. A man greatly loved respected and admired by all those that believe that the workplace and communities of our lives belong to the many and not just the few. A man of family and friendship. A true internationalist and constant advocate for peace and true justice for all."
Crow had been the RMT's leader since 2001, growing a reputation as a militant champion of workers, with his apparently unfashionable politics seeing the union add tens of thousands of recruits after it repeatedly won pay rises for its members.
Crow's most recent high-profile battle was over the future of London Underground, with talks continuing after strikes last month.
MUA Deputy National Secretary Mick Doleman said he had lost a friend.
"I'm proud to say I considered Bob as a mate, and I greatly admired his tenacity in representing his members and the working class in general. Bob never gave a hoot about his general popularity and was the target of many a hate campaign from the notorious UK media and those purporting to be conscience and commentators of the English upper class who have never supported workers, let alone their leaders," Mr Doleman said.
"Bob truly did reflect the adage "what doesn't kill you makes you stronger" and never allowed negativity to cloud his vision for his great union, the National Union of Rail, Maritime and Transport Workers.
"Our hearts go out to Nicky his loving wife and his family who stuck solid with Bob and of course our condolences to the executive and rank and file of the union. Bob was a character larger than life and will be sadly missed by the working class he represented with such honour."
Most people living in the United States know little about the International Workers' Day or May Day. For many others there is an assumption that it is a holiday celebrated in state communist countries like Cuba or the former Soviet Union. Most Americans don't realize that May Day has its origins here in this country and is as "American" as baseball and apple pie.
In the late nineteenth century, the working class was in constant struggle to gain the 8-hour work day. Working conditions were severe and it was quite common to work 10 to 16 hour days in unsafe conditions. Death and injury were commonplace at many work places and inspired such books as Upton Sinclair's The Jungle and Jack London's The Iron Heel. As early as the 1860's, working people agitated to shorten the workday without a cut in pay, but it wasn't until the late 1880's that organized labor was able to garner enough strength to declare the 8-hour workday. This proclamation was without consent of employers, yet demanded by many of the working class. Read more by clicking below.
Bill adds labor history as a possible curriculum in Connecticut
By The Associated Press
HARTFORD >> Connecticut lawmakers are moving closer to requiring the Department of Education to come up with a curriculum that local school districts can use to teach about the history of the labor movement.
The Senate on Wednesday passed a bill on a bipartisan 25-10 vote. Some critics said the bill is unnecessary, political and could send an anti-business message.
Senate Majority Leader Martin Looney argued it’s important for students to learn about the labor struggle “as the right of workers to organize and collectively bargain is being challenged across the country.”
Under the bill — which awaits House action — labor history, collective bargaining and existing workplace protections would be part of the voluntary curriculum.
The state already provides curriculum on the Holocaust, the Great Famine in Ireland and African-American history.
Recently the Department of Labor released data on the union status of the American workforce. Unfortunately the data showed a decline in the percentage of workers who are unionized because of the one-two punch of long-term trends—such as the escalation of aggressive employer campaigns against union representation—and political attacks such as Wisconsin’s new law banning public-sector collective bargaining. Even though less than 12 percent of all workers are currently union members, Americans—whether unionized or not—should care about this decline because unions give workers a bigger say in our economy and our political system. That helps the middle class, and it’s good for democracy.Read more.
“Mate, what do you think of the ‘Organizing Model’? That’s an American thing, isn’t it?”
During a break at an IWW organizer training in London, the question caught me off guard. There were many organizing models, right? I chalked it up to U.S.-U.K. cultural misunderstanding. But a few weeks later in Cologne, Germany, I got the same question. I decided to do some digging.
It turns out the United States doesn’t export only Justin Bieber and Big Macs. We also export the trends of our labor movement. Over the last 15 years—as American management practices have cast a pall over the global economy—unions from the U.K., the Netherlands, Germany, and Australia have looked to U.S. unions for survival strategies. They came back with “the organizing model”. Read more.
Nice office - Elliott Bay - Seattle
View from the MV Tacoma Bridge of Crowley Tugs at work in downtown Seattle
Harbor Island shuffle - Seattle
Fire School break...
Columbia River party
Finance Committee crunching numbers
Guemes Ferry ready to load - Guemes Island, WA
The mighty Coho bound for Canada
Manson at Eagle Harbor, WA
IBU Delegates hit the mic at the 2012 National Convention - Seattle
Our Robber Barron Apologists
The Piketty Panic
by Paul Krugman
April 24, 2014
“Capital in the Twenty-First Century,” the new book by the French economist Thomas Piketty, is a bona fide phenomenon. Other books on economics have been best sellers, but Mr. Piketty’s contribution is serious, discourse-changing scholarship in a way most best sellers aren’t. And conservatives are terrified. Thus James Pethokoukis of the American Enterprise Institute warns in National Review that Mr. Piketty’s work must be refuted, because otherwise it “will spread among the clerisy and reshape the political economic landscape on which all future policy battles will be waged.”
Well, good luck with that. The really striking thing about the debate so far is that the right seems unable to mount any kind of substantive counterattack to Mr. Piketty’s thesis. Instead, the response has been all about name-calling — in particular, claims that Mr. Piketty is a Marxist, and so is anyone who considers inequality of income and wealth an important issue.
I’ll come back to the name-calling in a moment. First, let’s talk about why “Capital” is having such an impact.
Mr. Piketty is hardly the first economist to point out that we are experiencing a sharp rise in inequality, or even to emphasize the contrast between slow income growth for most of the population and soaring incomes at the top. It’s true that Mr. Piketty and his colleagues have added a great deal of historical depth to our knowledge, demonstrating that we really are living in a new Gilded Age. But we’ve known that for a while.
No, what’s really new about “Capital” is the way it demolishes that most cherished of conservative myths, the insistence that we’re living in a meritocracy in which great wealth is earned and deserved.Read more.
The Austerity Agenda
by Paul Krugman
LONDON - May 31, 2012
“The boom, not the slump, is the right time for austerity.” So declared John Maynard Keynes 75 years ago, and he was right. Even if you have a long-run deficit problem — and who doesn’t? — slashing spending while the economy is deeply depressed is a self-defeating strategy, because it just deepens the depression.
So why is Britain doing exactly what it shouldn’t? Unlike the governments of, say, Spain or California, the British government can borrow freely, at historically low interest rates. So why is that government sharply reducing investment and eliminating hundreds of thousands of public-sector jobs, rather than waiting until the economy is stronger?
Over the past few days, I’ve posed that question to a number of supporters of the government of Prime Minister David Cameron, sometimes in private, sometimes on TV. And all these conversations followed the same arc: They began with a bad metaphor and ended with the revelation of ulterior motives.
The bad metaphor — which you’ve surely heard many times — equates the debt problems of a national economy with the debt problems of an individual family. A family that has run up too much debt, the story goes, must tighten its belt. So if Britain, as a whole, has run up too much debt — which it has, although it’s mostly private rather than public debt — shouldn’t it do the same? What’s wrong with this comparison?
The answer is that an economy is not like an indebted family. Our debt is mostly money we owe to each other; even more important, our income mostly comes from selling things to each other. Your spending is my income, and my spending is your income.
So what happens if everyone simultaneously slashes spending in an attempt to pay down debt? The answer is that everyone’s income falls — my income falls because you’re spending less, and your income falls because I’m spending less. And, as our incomes plunge, our debt problem gets worse, not better. Read more.
Corporate Tax Myth
Warren Buffett: High Corporate Taxes Are an American 'Myth'
The Huffington Post by Bonnie Kavoussi 02/27/12
Corporations, like the rich, aren't paying their fair share in taxes, billionaire investor Warren Buffett told CNBC on Monday.
Even while enjoying record profits, corporations last year paid just 12.1 percent of those earnings in taxes, their lowest tax rate since 1972, according to the Congressional Budget Office. At least thirty of the country's most profitable companies had a negative tax rate between 2008 and 2010.
Buffett, for one, says it's time to take notice.
"It's a myth that American corporations are paying 35 percent or anything like it," Buffett said, referring to the top marginal corporate tax rate. "Corporate taxes are not strangling American competitiveness." Read more.