Archive for the ‘Jobs’ Category

Three Mexican window-washers and their world

June 2, 2018

Can the U.S. guarantee every American a job?

June 1, 2018

Is it possible to guarantee a job at a good wage to everybody who wants one?  Senator Bernie Sanders is working on a proposal to do just that, and several other Democrats have endorsed the concept.

Nobody in this country has ever tried anything like this.

“Full employment” as usually understood means reducing unemployment to the lowest possible figure, now estimated at 1.5 percent.

President Franklin Roosevelt’s New Deal created millions of useful jobs, but fell far short of providing a job to every individual who wanted one.   He proposed a postwar economic bill of rights that included the right to a decent job, but it isn’t clear whether that was meant literally or as an aspiration.

At the present time, the most widely-discussed proposal for a job guarantee is the National Investment Employment Corps (NIEC) proposed by Mark Paul, William Darity Jr. and Darrick Hamilton, working with the Center for American Progress and the Center on Budget and Public Policy Priorities.

The NIEC would provide a job to any American 18 years old or older at a minimum annual wage of $24,600 for full-time workers ($11.83 an hour).  They would have a chance to advance within the program to $32,500.  Wages would rise with the rate of inflation or to keep pace with any increase in the national minimum wage.

Full-time workers would be given the same health insurance and other benefits as other federal employees, whose cost is estimated at $10,000 a year. There also would be an option for part-time work.

The Secretary of Labor would provide “employment grants” to state, county and local governments, as well as Indian nations, for NIEC workers to carry out community projects.  The Secretary also would work with federal agencies to identify kinds of needed work that aren’t being done.  Examples might be energy efficiency retrofitting, elder care, ecological restoration and preschool services.

Where local governments could not think up enough useful projects to provide full employment, the NIEC would step in and do the work itself.  On the other hand, it would not fund work that would displace already existing employees.  Investigators would check to prevent corruption or boondoggling.  That’s how it’s supposed to work.

Paul, Darity and Hamilton estimate NIEC would employ 10.7 million workers which, factoring in part-timers, would equal 9.7 million full-time job equivalents.

They estimate the annual cost of their program at $543 billion a year.  That would be offset, they say, by reduction in spending for food stamps, unemployment compensation, earned income tax credits and other federal programs to help the poor and unemployed, and by an increase in taxable income.

The Levy Economics Institute of Bard College has developed a less-detailed proposal, which is said to be the basis for Bernie Sanders’ proposal.  The main difference is that the Levy proposal is based on a wage of $15 an hour.

It sounds good.  What would be the problems?  I think thee are some serious ones.

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How the New Deal created millions of jobs

May 31, 2018

Donald Trump promised a trillion-dollar infrastructure program that would create jobs. [1]  Bernie Sanders and other Democratic leaders are talking about a federal jobs guarantee.  Many Americans think this is utopian.

Eighty-some years ago, during the 1930s, Franklin D. Roosevelt’s administration showed what is possible.

The Public Works Administration (PWA) put hundreds of thousands of people to work on a variety of heavy construction projects that gave a face-lift to the nation’s crumbling infrastructure. Roads, bridges and dams were repaired and upgraded. 

Rundel Memorial Library in Rochester, N.Y., funded by the Public Works Administration and completed in 1937

Scores of new schools, libraries, hospitals, post offices and playgrounds were built for an expanding population.  All of these projects were undertaken on a scale inconceivable, even in the most prosperous times.

In April 1935, Congress inaugurated the Works Progress Administration (WPA), which put nearly 3 million people to work, including semi-skilled and unskilled, on projects as diverse as building athletic stadiums, making books for the blind, stuffing rare birds and improving airplane landing fields and army camps.

In its first six years, the WPA spent $11 billion, three-fourths of it on construction and conservation projects and the remainder on community service programs. In those six years, WPA employed about 8 million workers. …

The New Deal paid special attention to the nation’s dispossessed youth.  The Civilian Conservation Corps (CCC) put approximately 2.75 million idle young men to work to reclaim government-owned land and forests through irrigation, soil enrichment, pest control, tree planting, fire prevention and other conservation projects. …

Thousands of unemployed writers, actors, musicians and painters were given an opportunity to earn a modest livelihood from their artistic talents (many of them to achieve fame and fortune in later years) and to enrich the lives of countless culturally-deprived citizens.  The productions of the WPA Theater Project, for example, entertained a phenomenal audience totaling 60 million people, a great many who had never before seen a play.

Through the National Youth Administration (NYA) the government made it possible for 1.5 million high school students and 600,000 college students to continue their education by providing them with part-time jobs to meet their expenses.

A monumental achievement of the New Deal was the creation of the Tennessee Valley Authority (TVA), which produced and sold cheap electric power and fertilizer in a seven-state area (about four-fifths the size of England), whose farms were among the nation’s poorest and least productive, and where only a fraction of the inhabitants possessed electricity to light their homes and operate their equipment.

Source: Labor Educator

These were not make-work projects.  We still enjoy the benefits of these projects today.  Here is a summary of New Deal construction projects here in Rochester, N.Y., where I live.

  • Doubled the size of the Rochester International Airport (still in use)
  • Built a high school (still in use)
  • Built a post office with publicly commissioned art (still in use, art still there!)
  • Built a new Art Deco headquarters for the Rochester Fire Department (still in use)
  • Built a 40,000 square foot library (still in use)
  • Commissioned a variety of murals in high schools and public spaces, most of which still exist
  • Improved the local waterworks system
  • Set up a local Federal Arts Project center, that paid unemployed artists to create exhibits, run community art classes, and create art for public spaces.
  • Source: Jack Meserve, Democracy Journal.

What conditions exist today that prevent us Americans from doing what our forebears did then?

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Is a non-BS economy even possible?

May 26, 2018

What would the U.S. unemployment rate be if all useless or harmful jobs were eliminated?

It would probably be equivalent to the Great Depression of the 1930s.

Barack Obama, in an interview in 2006, stated the problem:

“I don’t think in ideological terms. I never have. … Everybody who supports single-payer healthcare says, ‘Look at all this money we would be saving from insurance and paperwork.’  That represents 1 million, 2 million, 3 million jobs of people who are working at Blue Cross Blue Shield or Kaiser or other places.  What are we doing with them?  Where are we employing them?”

Source: The Nation

David Graeber, in his new book, Bullshit Jobs: a Theory, quoted public opinion polls that found 37 percent of UK employees and 40 percent in the Netherlands thought their jobs made no meaningful contribution to the world.

Now maybe that is exaggerated.  Maybe some of them think they make a contribution, but that it’s not “meaningful.”

Offsetting this, the inherent bias of people is to think we are accomplishing more than other people think we do or the objective facts indicate.

For example, public relations, advertising, lobbying, consulting and even speculation on financial and commodities markets have their uses.  It is just that they play more of a role in the economy than they should.

I myself think the U.S. military and intelligence services are much greater than necessary to protect the homeland from attack.  Of course, if the mission is to make the United States the world’s only superpower, no number could be great enough.

The question is: What would happen if all these people were thrown on the job market, all at once?

It would be a catastrophe, unless there were some sort of basic income guarantee (which Graeber advocates) or basic job guarantee.

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BS jobs, sh*t jobs and moral envy

May 25, 2018
  • Huge swaths of people spend their days performing tasks they secretly believe do not really need to be performed.
  • It’s as if someone were out there making up pointless jobs for the sake of keeping us all working.
  • The moral and spiritual damage that comes from this situation is profound.  It is a scar across our collective soul.  Yet noone talks about it.
  • How can one even begin to speak of dignity in labor when one secretly feels one’s job should not exist? 
  • David Graeber: On the Phenomenon of Bullshit Jobs (2013)

David Graeber, in his new book, Bullshit Jobs: a Theory, describes the frustrations of people doing jobs that they know are useless or even harmful, because the meaningful jobs are either unavailable or low-paid.

He said that forcing people to engage on tedious activities that serve no useful purpose, or, worse still, pretending to work when they actually aren’t, constitutes a kind of spiritual violence.

Not all useless or harmful jobs are BS jobs. Graeber defines a BS job as one you know is useless, but you have to pretend is necessary.

I think many of the people who invent BS jobs, or invent useless tasks for the useful workers, are under the impression they are making a positive contribution.  Graeber said his strongest critics are business owners who deny the possibility that they could be paying anybody to do anything useless.

A certain number of people think the world is divided into predators and prey, and pride themselves on being successful predators.  An example would be the bankers and financiers who, prior to the 2008 financial crash, made subprime mortgage loans to suckers who could never pay them off, then collateralized the mortgages and sold them to other suckers.

What all these jobs—hedge fund managers, telemarketers, diversity consultants, receptionists who never get phone calls, consultants whose advice is never heeded, supervisors with nothing to supervise—is that, if they went on strike, nobody would notice.

What Graeber calls the sh•t jobs are just the opposite.  Food service workers, health care workers, trash collectors, janitors and cleaners—all these workers labor under worse conditions and for lower pay than in BS jobs, and, contrary to reason and justice, they get less respect.

Coincidentally or not, the sh•t jobs are disproportionately done by black people, Hispanics and immigrants.

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Graeber said many of us have come to accept the idea that work consists of following somebody’s order to do something we dislike.  It follows, then, that if you want good pay, job security and benefits, you are lacking in moral character.  He calls this rights scolding.

It takes two forms.  Among right-wingers, if you think you are entitled to anything that working people in the time of Charles Dickens didn’t have, you are a fragile snowflake.  Among left-wingers, if you think you are entitled to anything that the most oppressed person alive today has, you are told to check your privilege.

It also follows that people whose jobs are fulfilling, such as school teachers, are not really working.  The idea is: You get to do work that is pleasurable, useful and respected.  How dare you want good pay and job security in addition?  Graeber calls this moral envy.

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Managerial feudalism and BS jobs

May 23, 2018

BULLSHIT JOB: A form of paid employment that is so completely pointless, unnecessary or pernicious that even the employee cannot justify its existence even though, as part of the condition of employment, the employee fells obliged to pretend that this is not the issue.  [David Graeber]

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Huge numbers of people work in jobs that they themselves think are completely unnecessary.  Many of them would prefer to do something useful, but useful jobs on average pay less.  Sometimes they quit and take a lower-paying useful job anyway.

Some five years ago, David Graeber, an American who teaches anthropology at the London School of Economics, wrote an essay for an obscure left-wing magazine called Strike!, about the phenomenon of bullshit jobs.

The article struck a nerve.  It got more than a million hits on the Internet, crashed the Strike! web site several times and was translated into more than 10 languages.

A YouGov poll soon after found that 37 percent of full-time employees in the United Kingdom thought their work made no meaningful contribution to the world.  A survey in the Netherlands put the number as high as 40 percent.  I imagine a survey in the United States would be much different.

Graeber himself communicated with hundreds of unhappy, useless employees via e-mail.

The result is his new book, Bullshit Jobs: a Theory.

He learned about a museum guard whose job was to report if a certain empty room ever caught on fire; a military sub-contractor who drove more than a hundred miles in order to give a German soldier permission to move a piece of equipment from one room to another; a receptionist who, to fill her time, was tasked with jobs such as sorting paperclips by color.

But most of his reports are about people who worked in offices—making studies that were never read, making proposals that were never acted on or not doing anything at all, but doing their best to look busy.

How can there be so many admittedly useless jobs?  We live in a time of austerity and layoffs.  Full-time jobs are being replaced by temporary jobs.  That is true of government as well as the private sector.

One thing that free-enterprise advocates and Marxists agree on is that competitive capitalism produces economic efficiency.  Free-marketers think everybody benefits and Marxists think that only the capitalists benefit, but they agree on the drive of business to maximize profit.

Maybe this is wrong.  Maybe competitive capitalism is a myth.  Maybe we live under what Graeber calls managerial feudalism.

Back in the days before the French Revolution, the peasants, who were the main producers of wealth, paid so much in taxes and rent they could barely live.  They supported an aristocracy, who, in turn, supported an economic class of coachmen, door keepers, lace makers, dancing masters, gardeners and the like, who were generally better paid than the peasants.

Just like the aristocrats of old, the prestige of managers in organizations is based on the number of people they have working for them.  Prestige is not based on whether they are useful or not.  In fact, employees whose work is essential are a threat.  They have the power to quit or go on strike or to unexpectedly reveal they know more than the boss.

So the incentive is to diminish the role and power of those who do necessary work while inventing new jobs whose existence depends on the discretion of the job creators.

A large number of new jobs are administrative staff.  They are different from administrators who make actual decisions.  Their job is collect quantitative information about the work of the useful employees on the principle that “you can’t manage what you can’t measure.”

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What’s behind the spread of useless work?

May 13, 2018

The old labor hymn, Solidarity Forever, written slightly over a century ago, celebrates the achievements and potential power of the working class.

The world depends on the labor of workers, the song goes.  “Without our brain and muscle, not a single wheel would turn.”  That is a “power greater than their hoarded gold.”  If workers unite and fight, they can free themselves from the parasitic owning class.

David Graeber

These stirring words quaint today, because all the driving forces in the economy are liberating the wealthy elite from dependence on workers.  The driving force in technology is to eliminate jobs.  The driving force in management is to make workers replaceable.

And there is another strange thing going on, which is the creation of what anthropologist David Graeber calls bullshit jobs.  The definition of a BS job is that it is regarded as unnecessary even by those who do it.

For a number of years now, I have been conducting research on forms of employment seen as utterly pointless by those who perform them. The proportion of these jobs is startlingly high. Surveys in Britain and Holland reveal that 37 to 40 percent of all workers there are convinced that their jobs make no meaningful contribution to the world.

And there seems every reason to believe that numbers in other wealthy countries are much the same. There would appear to be whole industries — telemarketing, corporate law, financial or management consulting, lobbying — in which almost everyone involved finds the enterprise a waste of time, and believes that if their jobs disappeared it would either make no difference or make the world a better place.

Generally speaking, we should trust people’s instincts in such matters. … If one includes the work of those who unwittingly perform real labor in support of all this — for instance, the cleaners, guards, and mechanics who maintain the office buildings where people perform bullshit jobs — it’s clear that 50 percent of all work could be eliminated with no downside. …

Even this estimate probably understates the extent of the problem, because it doesn’t address the creeping bullshitization of real jobs. According to a 2016 survey, American office workers reported that they spent four out of eight hours doing their actual jobs; the rest of the time was spent in email, useless meetings, and pointless administrative tasks.

The trend has much less effect on obviously useful occupations, like those of tailors, steamfitters, and chefs, or obviously beneficial ones, like designers and musicians, so one might argue that most of the jobs affected are largely pointless anyway; but the phenomenon has clearly damaged a number of indisputably useful fields of endeavor.

Nurses nowadays often have to spend at least half of their time on paperwork, and primary- and secondary-school teachers complain of galloping bureaucratization.

Source: The Chronicle of Higher Education

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Chris Arnade on how the other half lives

January 13, 2018

This includes two updates

Half the world doesn’t know how the other half lives.   (old saying)

Chris Arnade spent 20 years as a Wall Street investment banker, then quit in 2011 to start a new career as a photojournalist, first interviewing and photographing drug addicts and prostitutes in the Bronx, then traveling across the country to talk to working people and poor people who’ve been left behind in the new economy.

Arnade said that what he concluded was that addiction is the result of isolation, isolation is the result of rejection and the chief source of rejection is the U.S. educational system.

The U.S. educational system, he said, teaches that the way to achieve success is to go to a good college, leave home and devote yourself to achievement in your professional life.

Those who do this successfully are the elite in American life.   The problem is that not everybody is able to succeed this way, and not everybody wants to do this.

Some people put family, community and religion first.  In this respect, he said, there is little difference between black people and white people, or between Anglos and Hispanics.

Arnade calls the first group the Front Row and the second group the Back Row. The Back Row are not only disrespected, Arnade said.  The economic system is rigged against them.

Every important decision on national policy, since at least the North American Free Trade Agreement  (NAFTA) in 1994, has put the interests of the Front Row ahead of the Back Row.

The one institution in society that welcomes the back row is the churches, he wrote.  He himself is an atheist, but he said that churches welcome you, no matter what your credentials or lack of them.  I’m not sure that is true of all churches, but his point is correct.

Another place the Back Row is welcome, he said, is McDonald’s restaurants.  McDonald’s original business model was a place where you can get in and get out quickly, but McDonald’s and other fast-food restaurants have become places where you can get a nourishing meal at a low price, charge your cell phone and hang out with friends.  Most of them have an old man’s table that retirees have staked out for their own.

If you’re a Front Row person and want to break out of your bubble, stop having coffee at Starbuck’s (or the equivalent) and stop start spending time in McDonald’s (or the equivalent), Arnade advised,

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The New Deal’s forgotten accomplishments

January 1, 2018

A widely accepted criticism of Franklin D. Roosevelt’s New Deal is that it never really ended the Great Depression.  It took rearmament, the military draft and the Second World War to bring about full employment.

Conrad Black. of all people, writing in The American Conservative, of all publications, pointed out that what these critics overlook is the millions of Americans put to work by the New Deal conservation and public works programs.

Between 5 million and just under 8 million workers were employed on New Deal projects during the 1930s, but, according to Black, they were not included in the employment statistics cited by most historians, including partisan Democratic historians.

Solid line counts workers employed on public works as unemployed; dotted line does not.  Source: The Edge of the American West.

Black, formerly a Canadian newspaper publisher, has written biographies of Richard M. Nixon and Franklin D. Roosevelt.   Reviewing Robert Dallek’s recent biography of FDR, Black wrote: —

He states that the unemployed stood at 10 million in 1940, when Roosevelt broke a tradition as old as the republic and went after his third term.

In fact, unemployment was somewhat under 10 million, but was declining in the run-up to election day by 100,000 a month, largely due to the immense rearmament program Roosevelt had initiated and to the country’s first peace-time conscription, which he called a “muster”.

But Dallek completely ignores, for purposes of calculating unemployment, the many millions  of participants in his workfare programs, who were just as much employed as, and more usefully than, the millions of conscripts and defense workers in the major European countries and Japan, against which Roosevelt’s record in reducing unemployment is often unfavorably compared.

[snip]  These programs kept between five million and nearly eight million people usefully employed at any time building valuable public sector projects at bargain wages for Roosevelt’s first two terms, until defense requirements and the public sector took over and completed the extermination of unemployment.

Those unable to work received Social Security, unemployment and disability benefits from 1935 on.

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Working at Kodak then and Apple now

September 4, 2017

Corporate headquarters of Apple Computer and Eastman Kodak

Neil Irwin of the New York Times wrote a good article about Eastman Kodak, Apple Computer and how the economy has changed for working people.

Gail Evans and Marta Ramos have one thing in common: They have each cleaned offices for one of the most innovative, profitable and all-around successful companies in the United States.

For Ms. Evans, that meant being a janitor in Building 326 at Eastman Kodak’s campus in Rochester in the early 1980s.  For Ms. Ramos, that means cleaning at Apple’s headquarters in Cupertino, Calif., in the present day.  [snip]

The $16.60 per hour Ms. Ramos earns as a janitor at Apple works out to about the same in inflation-adjusted terms as what Ms. Evans earned 35 years ago. But that’s where the similarities end.

Ms. Evans was a full-time employee of Kodak. She received more than four weeks of paid vacation per year, reimbursement of some tuition costs to go to college part time, and a bonus payment every March. When the facility she cleaned was shut down, the company found another job for her: cutting film.

Ms. Ramos is an employee of a contractor that Apple uses to keep its facilities clean.  She hasn’t taken a vacation in years, because she can’t afford the lost wages.  Going back to school is similarly out of reach.  There are certainly no bonuses, nor even a remote possibility of being transferred to some other role at Apple.

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Some things to read on Labor Day weekend

September 2, 2016

Inside the Corporate Utopias Where Capitalism Rules and Labor Laws Don’t Apply by Matt Kennard and Claire Provost for In These Times.

Trade Unions and the Fate of the American Left, an interview of political scientist Adolph Reed Jr. on The Real News Network.

How Unions Change Universities by Marley-Vincent Lindsey for Jacobin magazine.

Making Green Jobs Good Jobs by Kate Aranoff for In These Times.

The Housing Monster: a worker’s critique of the construction industry.

Abolish Restaurants: a worker’s critique of the food service industry.

Nearly 10,000 Current and Former Chipotle Workers Join in Wage Theft Class Action Suit, an interview of labor lawyer Kent Williams on The Real News Network.

No Other Way Than Struggle: The Farmworker-Led Boycott of Driscoll’s Berries, an interview of labor leader Felimoñ Peneda by David Bacon for Truthout.

Meet Jacqui Maxwell, the United Auto Worker Who Interrupted Trump’s Economic Speech in Detroit, an interview on Democracy Now

Jobless youth and oldsters who can’t retire

July 26, 2016

Thomas Geoghegan, a labor lawyer in Chicago, wrote a good article for The Baffler about the connection between low wages, high youth unemployment and older people (such as himself) being unwilling to retire.

Thomas Geoghegan

Thomas Geoghegan

A reporter asked Pope Francis to name the single biggest evil in the world.  Secularism?  No.  Abortion?  Not even.  Here’s what he said: “Youth unemployment—and the abandonment of the elderly.”

OK, that’s two evils.  But aren’t they really one thing?  Unable to get a start, boomerang kids move back home—while their grandparents hang on to their jobs.

Why hang on?  They fear being abandoned.  They didn’t save.  The young have always had to wait for the old to retire in order to move up a notch, but in the twenty-first century, that wait is getting longer, increasing the competition for scarce jobs.

For the state to shrink, the old must work more.  It’s a neoliberal axiom.  Call it the New Old Deal.

As a labor lawyer, let me defend my clients.  The working-class people I represent are dying sooner, not mucking up the labor market by living too long.  Alcohol and heroin are partially to blame, and trending stories on epidemics afflicting the white working class make easy fodder for TV newsmagazines.

But let me tell you what I more often see happening to non-college whites: those who do hard physical labor for an hourly wage go lame.  By age fifty-five, or certainly sixty, many are just done.

And when they go lame, they have no options.  They have no union-bargained pensions anymore.   They certainly have no 401(k) retirement accounts.

Maybe the country should be grateful; to the extent that they die prematurely, they help shore up Social Security.  And hey, should the GOP make it harder for them to receive workers’ comp or disability, these high school grads may die even younger.

The whole article is worth reading.  Click on Exit Planning to read it.

The coming of the robots

July 8, 2016

This video from Boston Dynamics shows the capability of robots to do human labor—not that they would necessarily be in humanoid form as in the video.

In theory, the use of robots could enable human beings to live lives of voluntary, meaningful, higher-level activity.  In practice, the results probably would be more like Kurt Vonnegut’s dystopian novel, Player Piano, with an elite of engineers and a mass of unemployed or under-employed former workers.

If robots do everything, there will be no high-wage, full-employment economy.  There would be no mass consumer market.  Economic activity would be mainly devoted to serving the needs of the owners of the robots and the engineers and technicians who keep the robots running.

A guaranteed annual income would not be a solution.  Human beings degenerate if they have nothing useful to do.

Maybe a new economy would arise—a robot economy serving the elite and a parallel human economy serving the majority of humanity.

Or maybe—in some way I can’t foresee—robotic technology would come under democratic control, and there would be a public debate as to how robotics could be used to benefit everyone and not just a few.

LINKS

New Rossum’s Universal Robots: Toward a Most Minimal Wage by Fred Reed for Fred on Everything.  Lots of interesting links.

Toyota in talks to acquire Boston Dynamics from Google by Danielle Muoio for Tech Insider.

When the Robots Rise by Lee Drutman and Yascha  Mounk for The National Interest [added 7/11/2016]

Why a profitable company laid off 1,400 people

March 28, 2016

carrier2WTTVIndianapolis

In February, 1,400 employees of Carrier Air Conditioner in Indianapolis were told their jobs were being transferred to Mexico to cut costs.

It turns out that, according to the annual report of United Technologies, its parent company, that Carrier was a profitable and growing business segment.  In 2015, it was UT’s best-performing division in the company.

So why mess with it?  UT management hoped to boost the company’s stock price by cutting costs.  Managers say they plan to keep on cutting costs for the indefinite future, evidently without regard to

All this runs contrary to the way I was taught in college that a capitalist free enterprise system is supposed to work.

I was taught that the duty of corporate management is to ensure that the corporation survives and is profitable into the indefinite future.  This goal is achieved by making good products and at a reasonable price, and provide good customer service.  To do this, it is necessary to re-invest a good portion of the profits in the business.

UT management’s philosophy is evidently the opposite—to take money out of the business and give it to the passive shareholders.

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The New York Times evidently had a good article on this, which unfortunately is behind a pay wall.  David Dayen summarized its conclusions in an article for Salon.

Last year, Carrier produced a significant chunk of total profits for its parent company, United Technologies.  Of $7.6 billion in earnings in 2015, $2.9 billion came from the Climate, Controls & Security division, where Carrier resides.  Profits from this division have expanded steadily in recent years, which is not what you’d expect from a unit desperate to cut labor costs.

A look at United Technologies’ annual report reveals even more good news: Commercial and industrial products, Carrier’s category, make up over half of UTC’s $56 billion in net sales. Climate, Controls & Security had 3 percent growth in 2015, the highest in the company; it was the only division to increase its profit margin year-over-year.

“Organic sales growth at UTC Climate, Controls & Security was driven by the U.S. commercial and residential heating, ventilation and air conditioning (HVAC) and transport refrigeration businesses,” according to page 14 of the report. In other words, air conditioners – what the workers are making in Indianapolis – drove the growth of the best-performing facet of United Technologies’ business.

So why would a profitable, growing business need to ship jobs to Mexico?  Because their shareholders demanded it.

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Can college education be free for everyone?

March 25, 2016

I think it is feasible to provide college education with free or affordable tuition, as Bernie Sanders advocates.  Foreign countries do so, and the United States once did, too.

I have long been in favor of free or affordable college education for everybody who has the desire and ability to do college work, but this is different from providing free tuition for everybody.

collegekids97944673-copyRon Unz, the maverick political editor and writer, has proposed that Harvard University offer free tuition.  As he says, it can easily afford it because of the tax-free revenues of its huge endowment fund.  He also advocates for a fairer admissions process, especially for Asian-American students.

Those are excellent proposals.  But they wouldn’t get everybody who wishes into Harvard.

Sanders’ plan is for the federal government to pay for two-thirds of the cost of college education at state universities that offer free tuition and meet other conditions.  I expect that many state governors would turn down this generous offer.  Most states are cutting the budgets of their state university systems.  And after all, many states refused to expand Medicaid even though the Affordable Care Act offered to cover nine-tenths of the cost.

Germany is frequently cited as an example of a country that provides free college tuition for everyone, including foreigners, who can pass an entrance examination.

But only about 28 percent of young German adults are college graduates, compared to 43 percent of Americans.

During the golden age of American public higher education, college education was much less common.  As recently as 1990, only 23 percent of young American adults were college graduates.

Higher education in Germany also is much more bare bones than it is in the USA.  German colleged generally offer a rigorous academic program without the extra-curricular amenities that Americans typically regard as a part of the college experience.

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‘Do you think that we have reached the end?’

March 22, 2016

I can hardly wait to read Thomas Frank’s new book.

Here’s another excerpt.

A while ago I spoke at a firefighters convention in the Pacific Northwest, talking as I always do about the ways we have rationalized these changes to ourselves.

Firefighters are the sort of people we honor for their bravery, but they also happen to be blue-collar workers, and they have watched with increasing alarm what has been happening to folks like them for the last few decades . . . watched as the people formerly known as the heart and soul of this country had their lives taken apart bone by bone.

listen,liberal.9781627795395They themselves still make a decent living, I was told—they are some of the last unionized blue-collar workers who do—but they can see the inferno coming their way now, as their colleagues in other parts of the country get their contracts voided and their pensions reduced.

After I spoke, a firefighter from the Seattle area picked up the microphone. Workers had been watching their standard of living get whittled away for decades, he said, and up till now they had always been able to come up with ways to get by.

The first adjustment they made, he recalled, was when women entered the workforce.  Families “added that income, you got to keep your boat, or your second car, or your vacation, and everything was OK.”  Next, people ran up debt on their credit cards.  Then, in the last decade, people began “pulling home equity out,” borrowing against their houses.

“All three of those things have kept the middle class from having to sink down into abject poverty,” he said. But now all three coping mechanisms were at an end.  There were no more family members to send to work, the expiration date had passed for the home-equity MasterCard, and still wages sank. His question was this: “Is there a fourth economic savior out there, or do you think that maybe we have reached the end?”

I had no good answer for him.  Nobody does.

Source: Listen, Liberal

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Disinvesting in America, and what to do about it

March 21, 2016

Corporate executives and holders of financial assets—I’ll call them “capitalists” for short—are ceasing to invest in American industry.

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Instead corporations are investing their profits in buying back stock, which automatically increases the value of the rest of the stock.  This, by the way, were an illegal form of stock market manipulation prior to 1982.

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Meanwhile American manufacturing jobs are going away.

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Why millions of ordinary Americans back Trump

March 11, 2016

Donald Trump is a con man, a racist and a bully.  The record is clear.  But the world is full of confidence men, racists and bullies.  What sets him apart?

Thomas Frank, author of What’s the Matter With Kansas? and other great political books, took the trouble to listen for himself to several hours of Trump speeches (which I confess I have never done).

I saw the man ramble and boast and threaten and even seem to gloat when protesters were ejected from the arenas in which he spoke.  I was disgusted by these things, as I have been disgusted by Trump for 20 years.

thomasfrank4718But I also noticed something surprising. In each of the speeches I watched, Trump spent a good part of his time talking about an entirely legitimate issue, one that could even be called left-wing. 

Yes, Donald Trump talked about trade.  In fact, to judge by how much time he spent talking about it, trade may be his single biggest concern – not white supremacy.   Not even his plan to build a wall along the Mexican border, the issue that first won him political fame.  He did it again during the debate on 3 March: asked about his political excommunication by Mitt Romney, he chose to pivot and talk about … trade.

It seems to obsess him: the destructive free-trade deals our leaders have made, the many companies that have moved their production facilities to other lands, the phone calls he will make to those companies’ CEOs in order to threaten them with steep tariffs unless they move back to the US.

Trump embellished this vision with another favorite left-wing idea: under his leadership, the government would “start competitive bidding in the drug industry”.  (“We don’t competitively bid!” he marveled – another true fact, a legendary boondoggle brought to you by the George W Bush administration.) 

Many liberals think that Trump supporters are simply out of touch with reality.  But they themselves are out of touch with how trade and immigration are changing American life.

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How to drive down American wages

February 5, 2016

Americans used to say that service jobs were safe from the impact of globalization because there was no way for companies to ship them overseas.

But employers can achieve the same goal by employing unauthorized immigrants, who, like the workers in Asian sweatshops, are outside the protection of American labor law.

A recent example of this was contracting the delivery of the Boston Globe to a company that employed unauthorized immigrants.  The public was upset by the huge number of delivery problems.  It should also have been upset by the loss of jobs of American workers who formerly provided reliable service.

The problem is not the unauthorized immigrants, who are hardworking people who are trying to get by the best they can.  The problem is those American employers who are trying to drive down American wages by any means necessary.

LINK

All the News That’s Fit to Print: How the Media Hide Undocumented Workers by Aviva Chomsky.

Economic snapshots of 2015

December 26, 2015

I thank my e-mail pen pal Bill Harvey for pointing me to these charts from the Economic Policy Institute.  Any candidate for national office who ignores the issues raised by these charts isn’t worth listening to.

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‘Starving the beast’: public sector jobs decline

November 19, 2015

jobs_recovery_comparison_public.

public-sector-jobs-gap1.pngClick on Economic Policy Institute for details (hat tip to Bill Harvey)

One of the reasons for the weakness of the current economic recovery is the loss of public sector jobs—mainly in state and local governments, including school districts.

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Increased ‘productivity’ in education

October 5, 2015

TeacherJobGap5xnfRJSource: Economic Policy Institute.

Blogger Duncan Black thinks these figures indicate that Americans should stop cutting public school teachers’ wages and benefits, reducing their job security and making them scapegoats for all the ills of society.

But according to the neo-liberal philosophy that prevails in U.S. industry, the decline in the number of teachers is a good thing, not a bad thing.

A neo-liberal would tell you that fewer teachers with lower salaries teaching larger classes is by definition an increase in productivity (but that the best way to achieve this is through privatization).

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Romney, Fiorina, Trump: who did the most harm?

September 22, 2015

Last week a friend of mine wondered out loud who ruined more lives—Donald Trump, Carly Fiorina or Mitt Romney?

After doing a little Internet research, I would say—probably Mitt Romney, possibly Carly Fiorina, but not Donald Trump.

romney-record-620x1024Mitt Romney was CEO of an investment firm called Bain Capital.  It started out in 1984 as a venture capital firm; its most successful investment was the Staples chain of office supply stores.

But from 1989 to 1999, it adopted a new strategy—borrowing money to buy existing companies, saddling the companies themselves with the debt while meanwhile giving Bain big consulting fees.

Some of the companies collapsed under the burden of debt, some survived.  Having to service a big debt obligation probably tipped many into failure.  Nobody would argue that it helped.  But Romney and the other Bain partners did well whether the companies succeeded or not.

Carly Fiorina became head of Hewlett-Packard in 1999.   Her most notable accomplishment was aquisition of Compaq Computer, which by most accounts didn’t pay off.  The H-P board of directors fired her in 2005.

The Boston Globe estimated that 30,000 employees were laid off during her tenure.  On the other hand total jobs at H-P when she left were roughly equal to the combined H-P and Compaq employment in 2009.

Donald Trump took his companies into bankruptcy—that is, reorganization under Chapter 11 of the U.S. Bankruptcy Code—four times.  These were Trump Taj Mahal in 1991, Trump Plaza Hotel in 1992, Trump Hotels and Casino Resorts in 2004 and Trump Entertainment Resorts in 2009.

In each of these reorganizations, Trump took a loss and gave up control.   The businesses continued, and evidently there weren’t any big layoffs at the time.   Trump Taj Mahal filed again for bankruptcy last year, but Trump no longer controls it.

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Have teenagers lost interest in summer jobs?

August 12, 2015

 d7dfdc782bc4d1a6970a09e3ffc40e73Source: Vox.

ft_15_0618_summerjobs_420px.png.CROP.promovar-mediumlargeSource: Pew Research.

Somewhat fewer teenagers from affluent families are interested in working summer jobs than in the past.  And more teenagers than in the past are attending school during the summer.

But another reason fewer teenagers are working summer jobs is that they can’t compete with the growing numbers of adults who want those same jobs.

LINKS

Why American Teens Aren’t Working Summer Jobs Anymore by Peter Gosselin for Bloomberg News.

The fading of the teen summer job by Drew DeSilver for Pew Research.

Jobs, productivity and inequality

June 30, 2015

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David Rotman, writing in MIT Technology Review, made the case that advances in technology and growth in productivity have not paid off for working Americans.

He considered whether there is something in the nature of technology that rewards highly-trained employees and eliminates the jobs of unskilled employees.

I think the problem is the priorities of the people in charge, not the nature of technology.

It is not technological progress that leads to public libraries having shorter hours, or public utilities have deferred maintenance, or customer service centers keeping people on “hold” for endless minutes.  Rather it is the priorities of the people in charge.

To the extent technology is the cause, I think the reason is that the impetus has been to develop technologies that eliminate jobs rather than technologies that provide better services and improve the quality of life for the majority of Americans.

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How Technology Is Destroying Jobs by David Rotman for MIT Technology Review.