Tag Archives: minimum wage

Dangerous Demagogues Are Not the Answer to Corporate Oligarchs


Walmart moms protest for a living wage

Walmart moms protest for a living wage

The unexpected defeat of House leader Eric Cantor in the Virginia primaries shows that the Republican leadership has lost its grip on the populist forces encouraged by the party’s shift to the right. The pundits are characterizing Cantor’s unseating by tea-party challenger David Brat as the result of hardline opposition to immigration reform. More importantly, however, Brat leveraged a tectonic shift in the hostility of the Republican base to the ties of the Congressional leadership to big business and Wall Street.

Rightwing Brat supporter and radio commentator Laura Ingraham summed up this shift: “The American people are sitting by, seeing their wealth deteriorate, their prospects go under, their future dismal. Meanwhile politicians either throw up their hands or outright lie to them about the situation.” Conservative Bill Kristol called Brat’s campaign “a broad assault on GOP elites who put the interests of American corporations over American workers, of D.C. lobbyists over American families.”

Talking Points Memo notes that Cantor himself was chiefly responsible for “the loud, showy, total-war nature of Republican opposition — summoning up the forces that defeated him last night. From day one — literally, the night of President Obama’s first inauguration — Cantor was leading the charge to not just oppose Obama, but to delegitimize him … It was a deeply cynical maneuver, but a successful one. Cantor helped unite the Republican caucus around this scorched-earth strategy, and played a major role in the 2010 campaign that leveraged the grim results of that strategy into a new majority.”

Brat mobilized Republican activists not just by his intransigent opposition to immigration reform but also by connecting it with Cantor’s close alliances with corporate interests, channeling grassroots resentment of the Republican elite. During his campaign, he stated: “I am running against Cantor because he does not represent the citizens of the 7th District, but rather large corporations seeking insider deals, crony bailouts and a constant supply of low-wage workers.”

His rhetoric merged xenophobia with hostility to corporate control of Congress. John Nichols comments in The Nation: “Brat was aggressive in his opposition to immigration reform—attacking Cantor for making tepid attempts to move the GOP toward a more moderate position on the issue. But even Brat’s crude campaigning on immigration came with an anti-corporate twist. ‘Eric Cantor doesn’t represent you, he represents large corporations seeking a never-ending supply of cheap foreign labor,’ the challenger argued.”

The New York Times reports that the impact of Cantor’s downfall was felt most strongly on the New York Stock Exchange. “The share price of Boeing tumbled, wiping out all the gains it had made this year, a drop analysts attributed to the startling defeat. … Mr. Cantor’s loss is much more than just symbolism. He has been one of Wall Street’s most reliable benefactors in Congress. And Mr. Brat used that fact to deride the majority leader as someone who had rigged the financial system. In one recent speech, he accused lawmakers like Mr. Cantor of favoring ‘special tax credits to billionaires instead of taking care of us, the normal folks’.”

But Brat’s demagogy frames the economic crisis in national terms. This rhetoric is a dangerous diversion from real opposition to corporate oligarchy. As an extreme libertarian, he opposes an increase in the minimum wage; in fact, he opposes any kind of legislated minimum wage at all. While Brat appealed to the anxiety of his Republican base over their loss of prospects, low-paid workers are responding to the same erosion of living standards by striking for a $15 per hour minimum wage. Reportedly Walmart and McDonald’s, unlike Republican ideologists, are in favor of a move that would increase the buying power of the poor and also their corporate bottom line, but even with a higher hourly wage, employees are often scheduled to work fewer hours than will give them enough to live on.

“Walmart Moms” supported by Our Walmart held strikes in a number of major cities the first week of June, including Orlando, Tampa, Miami, Chicago, Milwaukee, Minneapolis, Los Angeles, and San Francisco, as well as Baton Rouge in Louisiana. Taking a leaf from the Occupy movement, they also demonstrated outside the home of Walmart board chairman Rob Walton in Paradise Valley, Arizona, demanding annual wages of at least $25,000, more full-time openings and an end to retaliation against workers who speak out against their conditions.

According to the Guardian, mother of three Linda Haluska said she was striking in solidarity with others who earn less, and what she described as worsening conditions at the company. “I’ve seen things change: the erratic scheduling, the lack of flexibility. It’s hard to get a day off when you want. They make it very clear that Walmart comes first. Your job is always on the line.” Haluska said that some of her co-workers on the night shift who can’t afford cars have to wait outside for up to an hour for the bus to arrive – a situation some staff said was potentially dangerous.

Erratic scheduling means that incomes fluctuate from week to week, making it difficult if not impossible to budget for a family. Sarah Jaffe writes “Gail Todd, who works at the Walmart in Landover Hills, Maryland, knows this struggle all too well. A mother of three, she used to have an ‘open schedule’ – meaning she had to be available to work anytime, day or night – so childcare was a constant problem. But when Todd limited her work available to care for her children, her hours got cut back, sometimes to as few as 12 per seven days.”

The Real News reported: “The Demos report [on low-wage industries] found that women who make an average hourly wage of $10.58 are disproportionately represented in low-wage retail positions and face unstable and inconsistent work hours, even with full-time positions. The study found that a wage floor of $25,000 per year at major retailers would amount to a 27 percent pay raise and, quote, ‘would lift hundreds of thousands of women and their family members out of poverty, and hundreds of thousands more would emerge from near-poverty’.”

The stark disparity between the subsistence standard of living between Walmart’s workers and the Waltons, who next to the Koch brothers are Americas most prominent oligarchs is an obscene scandal in a society which holds as its core values fairness and equal opportunity. But when government actively abets the growing inequality, it opens the doors to demagogues like David Brat.

Walmart managed to obtain $104 million in federal subsidies over six years because of tax deductions for “performance-based” executive compensation. Eight top executives were given more than $298 million in “performance pay” that was fully tax-deductible, despite Walmart’s poor economic performance over this period. CEOs and billionaire company owners have every incentive to use their wealth to distort the democratic process and cement their control over Congress. But in doing so, they have destabilized the democratic process and unleashed a dangerous political backlash. This can be countered by the men and women who across the country are fighting for a living wage that is fair for all.

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Filed under fast-food workers, Neoliberalism, occupy wall street, OUR Walmart, Tea Party movement, Uncategorized, Walmart, walmart strikes

Take Note, Plutocrats: Populism is Not Just a Spectre – It’s Rule by the People, for the People.


A spectre is haunting the world’s plutocracy – the spectre of populism. According to Politico, “Economists, advisers to the wealthy and the wealthy themselves describe a deep-seated anxiety that the national – and even global – mood is turning against the super-rich in ways that ultimately could prove dangerous and hard to control.”

Their fears are well justified. The billionaire elite in the U.S. is virulently opposed to Obamacare and the expansion of Medicaid, it is incensed by calls to increase the minimum wage, and through its proxies in Congress it has stopped an extension of long-term unemployment benefits. Anything that retards its wholesale looting of society’s wealth is anathema to it, including the Obama administration’s attempts to alleviate the worst effects of the economic downturn.

The plutocrats can maintain their hold on power only through their ideological grip on a large section of the American public – and challenges to that grip make them increasingly nervous.

Venture capitalist Tom Perkins, who made his money from Hewlett-Packard defense contracts, wrote in the Wall Street Journal: “Writing from the epicenter of progressive thought, San Francisco, I would call attention to the parallels of fascist Nazi Germany to its war on its ‘one percent,’ namely its Jews, to the progressive war on the American one percent, namely the ‘rich’.” He was echoed by real estate mogul Sam Zell: “The one percent are getting pummeled because it’s politically convenient to do so,” he said, adding that the one percent simply “work harder” than everyone else.

Juan Cole points out how their outlook and that of congressional Republicans is totally out of step with the U.S. public: “What is odd, and damning of the current American political system, is that the Republican Party’s major platform positions are roundly rejected by the American people. That is, they are ideologically a minority party. And yet they manage to win elections. … We are a center-left country and the majority of Americans takes the same stance as I on most controversial issues. It is the House of Representatives that is extreme, far more right wing than the country it says it represents.”

They are so far to the right that a Coca-Cola ad aired during the Superbowl featuring “America the Beautiful” sung in different languages evoked howls of outrage from tea-party politicians who posted racist comments on Twitter.

Within the Republican party itself there are fractures over immigration that reveal tensions between this kind of xenophobic rhetoric and corporate interests; the party’s difficulties stem from its need to use racist messages to preserve a declining white electoral base that itself depends on state support, while advocating cuts in state spending that would benefit only the super-rich.

Popular resistance to cuts in education, healthcare, and benefits is what is worrying the plutocrats. Whether Republican or Democrat, the public is determined not to lose social security benefits or other entitlements, and the low-waged have embarked on a popular campaign to increase the minimum wage to a living wage.

This mood of resistance was reflected in Obama’s fifth State of the Union address. What was remarkable about it was the contrast between the grand themes of hope and change that characterized his election campaigns, and the limited nature of his proposals for executive action rather than legislation to address social issues. He maintained a difficult balancing act between corporate and public sentiment, acknowledging unsustainable inequality in America but advocating a neoliberal prescription for economic growth through the fast-tracking of the Trans-Pacific Partnership agreement that can only lead to the loss of more jobs.

Obama’s executive order raising the minimum wage to $10.10 an hour for federal contractors clearly aimed to contain a vigorous movement within an electoral framework. However, his speech also serves to encourage a growing trend of lightning strikes and walkouts, inspired by the ideal of a $15 minimum that is closer to a living wage.Josh Eidelson has been reporting in Salon about the series of one-day strikes organized by the union-backed “Good Jobs Nation” campaign to force Obama’s hand on the issue. “As recently as this month, the co-chairs of the Congressional Progressive Caucus, who’ve rallied repeatedly with the strikers, told Salon the White House had been unresponsive to their pleas. ‘If we had never done this,’ said [Smithsonian McDonald’s worker] Alexis Vasquez, ‘we would have continued making $8.25 for the rest of our lives’. But the move announced today falls short of what Demos and Change to Win have urged. … Given that ‘the issues are still there,’ said Joseph Geevarghese [deputy director of the Change to Win union federation], including contractors’ alleged failure to follow the wage laws already on the books, ‘I think we’re going to see continued worker unrest going forward’.”

Obama’s plan for a “grand bargain” to rationalize state expenditure in which he could trade cuts in social security for token increased taxes on the rich was stymied by the grip of the tea-party Republicans on Congress. As the Washington Post reported, his address attempted to restore confidence in his presidency, as he faced “a tricky task: winning over a nation that has grown less trustful of his leadership after a year in which the federal government was partially shuttered for 16 days and the administration botched the rollout of Obama’s health-care law.”

Juan Cole assessed his presidency as politically passive, accepting the international role bequeathed him by the Bush administration and the Pentagon. “In the end, Obama seems to see himself as primarily a domestic president. That position is remarkable because the Tea Party Congress won’t actually let him do much domestically. … He says the right things about conventional uses of the military, but in his actions he is a Covert War hawk.” He said little about NSA spying apart from a throwaway statement about reform – and even that was forced on him by Edward Snowden’s revelations.

While Snowden is undoubtedly the person who changed the political dialog in 2013, this year’s heroes will be those like 22-year-old fast food worker Naquasia LeGrand who are fighting to change the lives of those at the cutting edge of poverty wages. She gave a spirited interview to comedian Stephen Colbert where she voiced the determination of the low-waged to get a better deal from the billionaires: “It’s not just me who is going through this. It’s all of us going through this. That’s what makes a union. Americans coming together to make a difference and have a voice together. … there is no reason why I should have a second job when these multi-billion dollar companies have the money to pay me in the work that I do.”

This is the kind of talk that has the plutocracy losing sleep at night. It is fueling more and more campaigns at the state level, such as in Oakland, CA, where a union-community coalition aims to put a measure on the ballot in November 2014 that would increase Oakland’s minimum wage from $8 an hour to $12.25, with future increases tied to inflation, and at least five annual sick days for all workers.

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Filed under Affordable Care Act, austerity measures, debt limit impasse, Edward Snowden, fast-food workers, National Security Agency, Neoliberalism, Obama, Obamacare, populism, Republicans, Tea Party movement

Confronting corporate Goliaths with Occupy tactics as fast-food and Walmart workers protest low pay


Walmart protesters at Hadley, Mass, on Black Friday last week

Walmart protesters at Hadley, Mass, on Black Friday last week

A one-day strike of fast-food workers in over 100 U.S. cities on Thursday, together with protests at 1,500 Walmart stores on “Black Friday” last week, marks a significant escalation of the campaign for a higher minimum wage. Low pay has become a focus for activist groups around the country, bringing them together and creating political pressure on Democrats.

NBC reports: “In New York City, about 100 protesters blew whistles and beat drums while marching into a McDonald’s at around 6:30 a.m.; one startled customer grabbed his food and fled as they flooded the restaurant, while another didn’t look up from eating and reading amid their chants of ‘We can’t survive on $7.25!’ ”

The fast-food strikes, demanding a $15 minimum hourly wage, began in Manhattan eight months ago and have spread to locations as far apart as Chicago, Washington D.C, Boston, St. Louis, Kansas City, Oakland, Los Angeles, and Detroit, as well as Memphis and Raleigh, N.C., in the traditionally union-resistant South. The recent elections in New York resulted in the city’s three top positions — mayor, public advocate and comptroller — all being filled by supporters of the campaign.

Jonathan Westin, an organizer with New York Communities for Change, told the New York Times that the tactic of the roaming one-day strike was influenced by Occupy Wall Street’s success in inserting the theme of the 1 percent into the national conversation. “Confronting power more openly and publicly and directly,” he said, “that came straight from Occupy.”

The influence of Occupy is also clear from the “mic-check” protocol followed by protesters flooding the New York McDonald’s. Camille Rivera of United New York explained to Democracy Now how the protests were organized by coalitions of community organizations. She told Amy Goodman: “we have been, for the past year and a half, working with other, you know, organizations, clergy, etc., to create a support network for these workers.” When workers faced employer intimidation, “we’ve had community and clergy go there and do delegations and talk to the owners, demanding—from the communities themselves, saying, ‘You will not do this in my community. You will not intimidate workers’.”

Rivera said: “people are actually organizing on the ground on their own, as well … we get information online where workers say, ‘I’m in … Kansas, and I’m actually going to strike my store today.’… And it’s because what they’ve seen in New York and what they’ve seen across the country.”

A comparatively small number of Walmart employees took part in the Black Friday protests because of the company’s threats and firings of employees who joined protest actions last year. However, as with the fast-food strikers, they were backed up by large numbers of labor and community activists, over 100 of whom were arrested as they carried out civil disobedience actions. More than one participant made the comparison to the civil rights movement.

Democracy Now reports: “In St. Paul, Minnesota, 26 protesters were arrested when they blocked traffic while demanding better wages for janitors and retail employees. In Illinois, 10 people were issued citations at a protest near a Wal-Mart in Chicago. Video posted online showed nine people being arrested at a protest outside a Wal-Mart store in Alexandria, Virginia. At Wal-Mart protests in California, 15 people were arrested in Roseville, 10 arrested in Ontario, and five arrested in San Leandro.”

In Hadley, Mass, a crowd of around 200 coordinated by Western Massachusetts Jobs with Justice braved frigid weather to support two Walmart employees who recently went on a one-day strike for better treatment. Shoppers and passers-by were clearly aware of the low-wage campaign: some showed displeasure but many showed their support by honking their horns – in 2012, shoppers had no idea what was going on and were confused by the protests.

Elaine Rozier, who has worked at a Miami, Florida, Walmart for eight years, told supporters in Seacaucus, New Jersey: “I’ve come today to represent all the silent Wal-Mart workers that are afraid to stand up for their rights. I’m here to represent the nation, to let the Walmart corporation know that we’re not standing back.” She had traveled to the New Jersey store with Mark Bowers and Colby Harris, two Walmart workers from Texas. Harris told In These Times: “I’m getting arrested because Wal-Mart has continued to retaliate against the associates who’ve been speaking up,” before sitting down in the middle of the street.

The rapidly-growing grassroots movement against low pay has been reflected in Washington, as Obama picked up the rhetoric about growing inequality. While his speech impressed Paul Krugman, Obama’s call for Congress to increase the federal minimum wage was an empty one. Washington is so mired in partisan deadlock it is unlikely to ever implement such a policy; Obama himself refuses to even reply to a call by congressional Democrats to take presidential executive action to raise the wages of workers employed through federal government contracts.

Because of the congressional stalemate, the political momentum of the issue has bypassed Washington and gone local. As well as the vote for a $15 minimum wage at Seattle-Tacoma Airport, according to the Washington Post, “The California legislature, which is dominated by Democrats, passed a law over Republican objections this year to raise the minimum wage to $10 an hour by 2016. Massachusetts lawmakers also are considering a $10 wage. New Jersey voters endorsed an $8.25 wage this month, even while voting overwhelmingly to reelect Republican Gov. Chris Christie, who opposed it.”

This is an indicator that politics in America is being reshaped. The schemes of Wall Street hedge funds, backed by billionaire-funded conservative groups, to plunder the remaining wealth of the middle class will unite more sections of society in the struggle for a fair wage. The struggle against corporate Goliaths like Walmart and McDonald’s asserts the dignity of the lives of workers and their families against those who have degraded it for too long.

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Filed under austerity measures, fast-food workers, low-waged, Obama, occupy wall street, OUR Walmart, Paul Krugman, poverty, strikes, Walmart, walmart strikes

Occupy Squared: With Progressive Victories, Voters Oppose the Republican and Democrat Transfer of Wealth to the 1%


Last Tuesday’s election results confirm a significant divergence between the American public and the political establishment. Voters voiced their resounding opposition to austerity politics and the corporatist policies followed by both the Republican right and the Obama administration. They gave enthusiastic support to social programs paid for by higher taxes on the rich, a higher minimum wage, and a defense of public schools from privatization.

Obama’s “Grand Bargain” to rationalize healthcare, foreign policy, and the US deficit is foundering on the groundswell of resistance to neoliberal policies on one side, and a Republican party on the other determined to prevent any meaningful attempt to extend welfare benefits to those most in poverty.

E.J. Dionne comments: “To say that this election nudged the nation leftward is not to claim a sudden mandate for liberalism. But it is to insist that the center ground in American politics is a long way from where it was three years ago — and that if there is a new populism in the country, it is now speaking with a decidedly progressive accent.”

The most significant feature of Bill de Blasio’s crushing victory in the New York mayoral election was his support across demographic lines, from the working poor and middle class to much more affluent voters in Manhattan. What enabled him to overcome the opposition of the media, Wall Street, and a number of city union leaders was the receptiveness of New Yorkers to the growing plight of the low-waged and minorities in the world’s most income-segregated city. His call to tax the rich in order to provide much-needed services for the working poor resonated strongly with the public, as well as his pledge to end police stop-and-frisk policies directed against young people of color.

It was not an isolated success: the most progressive city council in many years was installed in New York, and across the country electoral victories for anti-austerity candidates in Boston, Virginia, and Washington state demonstrated the change in the public mood.

The New York Times reported that the political makeup of the City Council has been drastically changed. “The elected public advocate, Letitia James, a forceful liberal, has spoken emphatically for people seen as marginalized. … For decades, the City Council formed a culturally and fiscally conservative bulwark against the effusions of liberal mayors. It too has grown markedly liberal. This is because of assiduous organizing by the Working Families Party and to the reality of New York: From the hills of the central Bronx to the immigrant-rich flats of Queens and the lower middle-class neighborhoods of Staten Island, the incomes are static and the benefits few.”

The Working Families Party’s executive director Danny Cantor explained on Democracy Now that “the lesson of the de Blasio and the council victories, is that people actually like what we’re talking about when we say, wages ought to be higher, people’s lives ought to be a bit more secure, transportation ought to be a massive investment, so on and so forth. … We are living … in the world Occupy made, for sure … we are the beneficiaries of what they did in terms of making this inequality … the core issue of our time.” The party is based on community activists and labor leaders, he said. “It’s a party of labor, but not a labor party; a party of blacks, not a black party; party of greens, not a green party. You can’t do any of those things in America. It’s too complicated of a country to just be one constituency.”

He referred to the success of another initiative in Bridgeport, Connecticut, where an anti-privatization slate took over the school board: “parents and working families and teachers sort of rebelled against the, you know, ‘no child left untested’ crowd that really wanted to privatize, and they won. … I think it’s going to reverberate in … the school reform wars around the country.”

In Boston, too, former union leader Marty Walsh was elected mayor, despite strong attacks from the media. John Nichols pointed out: “They created a video up there that showed him at a rally protesting Scott Walker’s policies in Wisconsin, and said, ‘Do you want this kind of person as your mayor?’ Well, Boston decided they did want that kind of person as their mayor.”

In SeaTac, a suburb of Seattle, voters supported a mandate for a $15 an hour minimum wage for airport, hotel, and restaurant workers. The local economy is based on the Seattle-Tacoma International Airport and was hard hit by outsourcing. Union leader David Rolf explained: “These airport jobs, like baggage handlers, ramp workers, jet fuelers, concessionaires, these are jobs that paid $16, $18 an hour back in the 1970s and the 1980s. They used to be living-wage jobs. … That’s all changed. The major airlines outsourced those jobs and turned them into minimum-wage jobs, which impoverished a whole community. So SeaTac saw its grocery store become a Goodwill and its video store become a pawnshop because the impoverishment of those jobs hurt the whole community.” Voters took the opportunity “to say to CEOs and to Congress that they’re impatient with waiting for them to do the right thing for American workers and it’s time we took matters into our own hands.”

The close result in the Virginia governor’s election was a referendum on the hold of the Tea Party on Republican legislators. Political commentator Ronald Brownstein writes: “[Democratic candidate] McAuliffe essentially replicated the ‘coalition of the ascendant’ that allowed President Obama to carry the state twice. Like Obama, McAuliffe triumphed by combining just enough socially liberal college-educated whites with an overwhelming margin among minorities to overcome a cavernous deficit among blue-collar whites. … According to the exit poll, [Tea Party Republican] Cuccinelli carried Virginia’s white voters without a college degree by 69 percent to 25 … McAuliffe captured nearly four-fifths of nonwhite Virginia voters.”

The Southern white working class does not figure in official Democratic party strategy, but this is challenged by progressives who aim to articulate the frustrations of the working poor. Vermont Senator Bernie Sanders has campaigned in Mississippi, Alabama, Georgia and South Carolina to win over workers who currently vote against their class interests. He believes they will respond to an uncompromising socialist message; speaking to an In These Times reporter, he said: “These are people who are struggling to keep their heads above water economically, these are people who want Social Security defended, they want to raise the minimum wage, they want changes in our trade policy. And to basically concede significant parts of America, including the South, to the right-wing is to me not only stupid politics, but even worse than that—you just do not turn your backs on millions and millions of working people.”

The escalating campaigns for a higher minimum wage and recognition of worker rights at companies like Walmart are also showing signs of impatience with the stranglehold of corporate Democrats on the Obama administration. The public is demanding more fundamental change than the government can deliver. It’s time for a rebirth of the socialist tradition in America.

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Filed under health care, low-waged, Neoliberalism, Obama, occupy wall street, political analysis, poverty, public schools, Republicans, Walmart