Friday, December 31, 2010

The Workingmen's Party,Albert Parsons and the Eight-Hour Workday

  The Workingman's Party is often viewed as the first tangible political representation of the Socialist impulse in America.It played a prominent role in the St.Louis General Strike of 1877.Its seven thousand members were mostly German-American craft workers but the group favored worker unity across ethnic and racial lines.It was founded on the question of advancing Socialism's cause through electoral politics.Some of the members were Marxian Socialists that didn't believe it was worthwhile to engage in party politics(I'm feeling more like this everyday).They believed there would be no progress until man's labor was fairly valued,trade unions flourished,strikes and boycotts persisted to reveal the weaknesses of capitalism and private property.

Shortly after the 1877 rail strike, it renamed itself the Socialist Labor Party and it achieved notable electoral success in Chicago,where in 1878-9 its candidates won slots for a state senator,three state representatives, and four city aldermen.But within a few years many in the Chicago SLP became disillusioned with political corruption and denials by judges of elected SLP candidates.Albert Parsons,leader of the SLP, had placed faith in the ballot as a means of alleviating the workers' blight.Parsons and other leaders eventually became disillusioned and stated that the State,the Government and its laws were agents of the powers of capital(sound familiar)..that the chief function of all Government was to maintain economic subjection of man of labor.This form of despotism was an invasion of man's natural right to liberty.Of course, the Chicago authorities kept a close eye on Parsons and friends since those words were proclaimed at a Market Street speech.

One of Parsons friends was August Spies who was the editor and business manager of the German-language daily called the Arbeiter-Zeitung in Chicago.Spies paper was radical in tone and both men retained a tenuous faith in the ballot as an instrument for change.They found themselves among the more adamant colleagues at national gatherings.They sided with the Revolutionary Socialist Party,an anarchist splinter group from NYC,who advocated direct action including terrorism as a weapon of harassing the ruling elite and emboldening the masses.

Parsons edited the Alarm which had a subscription of twenty-five hundred and a pass-along readership that was much higher.In February,1886,the Alarm viewed the popular eight-hour movement as a sign of the progressive ideas underlying the entire labor movement.On May 1,Chicago and numerous cities around the nation would demonstrate for the eight-hour workday.One hundred thousand marched in Chicago for the cause on May 1,the nation's largest turnout, with relative calm.Unfortunately,on May 3,four men were shot to death by the Pinkertons in an riot at the McCormick Reaper Company who wanted to replace union workers and lower wages.To protest the slaughter at McCormick,a rally was called for the next day at Chicago's Haymarket Square.

The Haymarket Square gathering was peaceful.Spies and Parsons spoke but didn't inflame the crowd with violent rhetoric.Spies accused the McCormick bosses of murder while Parsons urged the workers to arm themselves in self defense.Both left the rally after their speeches.Samuel Fielden worked as a teamster and gave the last speech.He stated that a war has been declared on us and that workers must resist with anything they can get a hold of...the capitalists have no mercy,so ought you? The Pinkertons,lead by Inspector Bonfield,was informed about the remarks and lead his men to disperse the crowd. As they got to the stage to stop the rally, a terrific explosion occurred and the bomb killed seven and injured sixty-seven policemen.After the explosion,the police killed four and wounded fifty workers at the rally.Samuel Fieldon was led away by companions,a police bullet in his knee.

Most of the nation was outraged over the incident,a deadly assault on uniform police by anarchists.The NY Times,Harper's Weekly and the Chicago Daily News all came out against the violence of the leaders of the rally. While the much-published assumption that the bombing was planned,there was little proof to support the theory.Spies,Fielden and five others were arrested immediately with Parsons evaded the police dragnet.Sifting through the scant evidence and interviewing witnesses,investigators could not agree on weather the bomb had been thrown at the police from the speakers wagon,the sidewalk,or a window overhead.Nonetheless,over several days the outlines of a conspiracy emerged with the arrested as the targets for the prosecution.Parsons came back to Chicago to stand trial with the other six comrades on June 21,1886.

The defense assaulted the state's claim that the anarchists intended the rally in Haymarket to trigger"a revolution",since any intelligent person knew that when anarchists spoke of revolution they were referring to an ideal--a change in the economic and civic conditions of society that would someday replace government authority with greater individual autonomy.Unfortunately,the defendants lost the trial and all were hanged on November 11,1887.Before he died Parsons read a poem by John Greenleaf Whittier's"The Reformer".Wheather on the gallows high,Or in the battle van,The noblest place for man to die,Is where he dies for man.

More from "There Is Power In A Union" by Philip Dray.

Tuesday, December 28, 2010

Lowdown(Hightower):Tom DeLay to Rick Perry,Why Republicans Are Devoid Of Content for the Working Poor

A friend of mine recently gave me a subscription to "The Hightower Lowdown"which is published monthly for the benefit of those who want to know the truth behind some of our government decisions.Hightower starts his newsletter with the nasty partisan called "The Hammer",Tom Delay.A jury convicted DeLay just before Thanksgiving for unabashedly collecting corporate campaign cash in exchange for moving corporate legislation when he was the house Republican leader.He coerced both the GOP congress and the K Street lobbyists to follow his dictatorial,undemocratic power plays to enhance big business.DeLay also secretly and illegally funneled corporate funds into several Texas legislative elections.He was the GOP leader in President Bush's first term and was forced out of politics for his criminal activities.

Hightower continued his newsletter by accusing the Koch brothers,Karl Rove,Rupert Murdoch,Dick Armey,Grover Norquist and the Chamber of Congress as the new" Hammers" that control the US House of Representatives.They control elections by supporting or withdrawing money with the high cost of acquiring a seat in the House.They can attack with copious amounts of money since the Citizens United decree from the Supreme Court was issued. Various GOP operatives set up unrestricted front groups that took $200 million from secret corporate funders to run private campaigns fostering the Republican takeover of Congress.The US Chamber of Commerce plowed$75 million in surreptitious corporate cash into the elections.The funding shells for the GOP had monikers as American Future Fund,American Action Network,Americans for Job Security(funniest by my standards),Club for Growth and 60 Plus Association. The operatives coordinated their attacks on Democrats through regular meetings dubbed the Weaver Terrace sessions which is where Karl Rove lives.

The Koch brothers are privileged plutocrats or kleptocrats who have billions and want government to go away and stop helping organized labor or the poor in America(35% of families make under $25,000,another 36% between $25,000 and $50,000 before taxes).Charles Koch is a billionaire 21 times over who is an oil baron,industrial polluter and yearns to impose corporate rule over our democratic republic.He is against health care reform,social security,green jobs,environmental regulations and collective bargaining.These issues,he claims,are threatening to destroy America.He and his cohorts are planning now at the Rancho Las Palmas Resort in Palm Springs to remove President Obama from office with all the power they have.They already have lackey John Boehner in the House and Murdock controlling the media(FOX has double the TV outlets of MSNBC and CNN in America).

The prevailing unemployment problem(direct result of American banking system with debt ratios as high as fifty to one during housing bubble) where four and half million have been without work for a year or more has been disastrous for the Obama administration.The past two years have seen middle class jobs off shored,wages fall,family incomes sink,pensions looted,college education priced out of reach(one of the main reasons the poor join the military, for tuition),and homes foreclosed.Corporate chieftains consider low wages,long periods of joblessness,declining home ownership and economic insecurity as "the new normal". 53% of Americans fear they won't have the money in the future to make their monthly rent or mortgage payments.The Rebuplicans erroneously blame President Obama for these problems when they know the financial community and international corporations have taken no ownership of this troubled environment.The mainstream media continues to follow the populist Tea Party(Dick Armey) as if it was the answer to our problems(reduce the deficit created by the previous Republican administrations). Armey was a faithful servant of Wall Street,deregulation and giveaways to the rich. A lobbyist for health care giants and foreign countries doing business with our government(close friends with the Koch brothers).He has shaped the Tea Party's agenda from the start.I hope they run Rick Perry from Texas against Obama in 2012. In his last gubernatorial race he got only 18% of the vote of all eligible voters. His race was so lackluster that only 32.5% of all eligible voters had the stomach to vote.Perry has the worst environmental record in the country and the reason why oil refineries are located there.They have the worst schools,health care,pay scales with little collective bargaining,social services for the poor and a failed prison system that has terminated more people than any other in the U.S.

Subscribe to Hightower's"Lowdown" for only $10 a year...it's worth it.

Saturday, December 25, 2010

Christmas Day,2010...Watching The Wheels Go Round And Round

Image Ref: 90-13-7 - Christmas Lights, Viewed 11910 timesSo many statistics have passed these pages from the beginning of this blog(August) and I dare say I forgot many but this blog stores them for me(and you) so I can use them as a resource in the future.I've read and coordinated a lot of information over those months and I hope it has provide some insight in Today's World.As someone approaching sixty-one,I have seen and witnessed my share of history.I know that at eighteen,America seemed to be a land of great opportunity.I remember that I had numerous employment choices living in NYC and that I just needed to point myself in a direction to follow a career path.Everyone worked at good paying jobs and the majority of eighteen year old citizens just needed to hop on the train to Manhattan to seek the economic rewards of working hard.Many had the opportunity to go to college and took that path to even greater rewards.Some were drafted into the army to fight in Viet Nam.For those who survived with reasonable damage,their future was bright as public servants,business associates or any number of service jobs in the city.Even counter culture men and women could find work on the fringes of the workplace or move to the country and survive in rural communities.

I don't have that same feeling anymore about the economic health of our country.The population of the U.S.has doubled since I was born.There seems to be a great deal of competition for jobs and an eighteen year old today can't ride the train to a good paying job like I did.Many of the jobs that payed a decent salary have vanished from the workplace(Manufacturing is under 11% of GDP).Walmart is the number two private sector employer in NYS.The "big box" stores pay about $11/hr and the average workers takes home around $250 a week.They provide health insurance but the employees can't afford the rates.Three of the top ten private employers are in financial services(large companies on Wall St.)who hire highly trained,graduate students from the best schools in the country.The competition for these very high paying jobs are also very great.The 75% of Americans who only have a high school diploma don't have a shot at the financial sector jobs that have grown from 15% to 40% of total employment in the last twenty-five years(25% who go to college get them).The 75% must seek work in the "big box" stores or be lucky enough to acquire a trade in their communities.The health care industry is the only bright spot for NYS employment.The majority of the private sector jobs in NYS are in hospitals.They hold the largest number of employees and a good percentage of the jobs pay well.Unfortunately,they are also under some strain to stay afloat due to the burdens of cost of service and the numbers of uninsured that come to their doors for care(need single payer system).Income inequality(!0% own 90% of the wealth),I feel is a significant part of the problem.Our job opportunities are a reflection of the disparity of wealth in America.When I was eighteen,over 30% of the jobs had collective bargaining as compared to under 10% today.Collective bargaining creates increased wages for all Americans.Today,many on the right want to bust the unions that are left because they are in the public sector(33% of total).They feel the public employees should be like the vast majority in the country with no collective bargaining power.They want to level a distorted playing field.The Republicans who have their high paying jobs and comfortable housing don't want others to have the same.They want more money(less taxes) to spend on themselves and  increase separation from the low paid masses.The lower and lower middle classes are in a "catch 22 " where they can't afford taxes but need them to support government programs that protect them. Unfortunately,they win votes on cultural issues,mostly from the lower classes they want separation from.

Christmas time is a reflection of the positive in the world.It is a time of peace and sharing.We need to figure out a way to extend this season throughout the year.The wealth of a country in not measured in asset accumulation but in the way we treat the most needy, those lost in the shuffle and burdened by the loss of self worth.We must create models that take us back to better times when our assets were distributed in a more equitable manner.Total GDP will rise when all of us rise financially,not just the fortunate.Opportunity for all will bring peace in the streets and in the home.Our inmates in jails will diminish and our graduate students increase as communities once again will rise with the tide of compassion.

Thursday, December 23, 2010

Workers Benevolent Association,John Siney And The Molly Maguires

On September 6,1869,disaster(fire with only one exit) at the Avondale mine,just south of Scranton,P.A.,carried 179 miners to the heavens above.At the time of the disaster, the Workers Benevolent Association(WBA),the areas first miners' union,had thirty locals and thirty thousand members.John Siney,an Irish immigrant,was the founder of the WBA and Samuel G.Turner,state senator,pushed through the Pennsylvania Mine Safety Act of 1870,which,among many other features,demanded that every mine have at least two means of entrance and exit.Despite the legislation,between 1870-75,more than 556 mine deaths occurred with more than a thousand men left injured or maimed.Technology(digging machines) made life more dangerous for the workers.The company expected a miner to extract 9 tons per day as opposed to 2.5 tons before the machines.

Siney's union(WBA) helped establish the first miners' hospital in Schuylkill County,arranged for union funds to pay sick or injured miners,burial costs and support for widows/families of men killed or stricken.The Ancient Order of Hibernians(AOH) were also active in the social and cultural life of the region. The leading members of the AOH owned popular crossroad saloons and helped the community with many social/economic needs.In the WBA,the Irishmen tended to be the most defiant,lobbying the union to take strong positions.The fierce Irish American resistance to authority was associated with a political group known as the Molly Maguires.The Maguires were a legendary nationalist rebel,anti-landlord association that committed anti-British attacks,sometimes disguised as women. In America,The Molly Maguires entered labor matters in the mines of Pennsylvania.They invaded a mine,roughed up scabs and shut down a company store in 1862.Between 1863-67,Schuylkill County had fifty unsolved murders.The WBA brought relative stability to the area and its leadership denounced the violence of the Molly Maguires.

On Jan.1,1875,the WBA announced a general strike against the Philadelphia and Reading RR Company,controlled by its president,Franklin B. Gowen. The baron(Gowen) wanted a 20% pay cut in all Reading controlled mines.Gowen's mines were protected by the Coal and Iron Police created by the president of Reading to combat the WBA.He had twenty-six members of the WBA arrested and imported scabs to work the mines.Conditions in the mining towns were atrocious that winter,as bosses worked to literally starve the strikers and their families(very Christian) into submission.The "Long Strike" lasted six months and eventually the union weakened and collapsed.With this,a new round of violence broke out between former WBA rank and file and Gowen's police. Gowen and Allan Pinkerton,worked on RR security,choose to see little difference between unions and criminals(as did Reagan,Bush and every Republican since).Pinkerton's "cinder dicks" distinguished themselves on the sprawling railroads,including the Reading,and increasingly were hired for workforce-oriented espionage and union-busting.Gowen and Pinkerton vowed to crush the Molly Maguires in the labor movement.Gowen had 347 union people investigated through espionage and eventually in 1875 ordered two dozen men arrested and accused them of belonging to a terror group. A secret AOH membership list mysteriously was made public by Gowen's goons.The appeal of the Molly Maguire allegations was that they piqued existing public fears that labor organizations,particularly clannish ones based on ethnic identity,were radical and dangerous.Gowen tried to peddle that the Hibernians were communists.The Irish World,Labor Standard and the Knights of Labor denounced this perspective as hallucinatory.Eventually, ten Mollies were hanged(juries stacked) in Pottsville on June 5th,1876 as the executions were heavily guarded by armed soldiers to discourage possible rescue.Soon after,nine other men were executed and two dozen were sent to prison.It was common knowledge that Gowen had brought the prosecutions"for the purpose of breaking up the a labor organization that was hurtful to his business interests" and had allowed popular prejudice against the Irish to do the rest.

More from"There is Power In A Union" by Philip Dray.

Tuesday, December 21, 2010

The Civil War And National Unions(William Sylvis)

Engraving of William H. Sylvius, the Labor LeaderThe conflict(Civil War) spurred an unprecedented wave of industrialization in the north,the vast war-spending reinvigorated a national economy staggered by the recession of 1857(not caused again by workers but by capitalists).Large monopolies(oil,steel,sugar) concentrated wealth and power(controlling representatives)to the heights never known in America.Congress actively supported big business by making grants to railroads,raising tariffs on foreign goods and authorizing employers to import immigrant laborers.In response, there was a parallel expansion of workers' organizations,from one hundred in 1860 to three hundred after the war.Between 1860 and 1870, the number of factory workers grew from 1.3 million to 2 million.Many of the new trade unions strived for national stature,most notably the National Typographical Union,Iron Molders'Union,the Machinists and Blacksmiths,the Brotherhood of Locomotive Engineers,and the iron workers who organized as the Sons of Vulcan.

William Sylvis became president of the Iron Molders' International Union in 1863.By 1865,under Sylvis tireless promotion,the group was on its way to becoming the strongest trade union in America,with seven thousand members in fifty-three locals.Sylvis even kept "scab albums" in order to track the names and movements of replacement workers.It was also characteristic of Sylvis to reach out to scabs wherever possible,in the hope of making them reconsider their folly and adding them to the union fold.In the summer of 1866,Sylvis founded the National Labor Union,the country's first national labor federation.The union was not dedicated to any specific trade but to all,both skilled and unskilled workers. The NLU agenda highlighted workers and consumer cooperatives as well as monetary reforms that would shift the country away from the gold standard to legal tender currency based on actual wealth,making more "greenbacks' available for workers and small businesses.It's major issue was the eight-hour day with additional pay.Shorter hours would make workers better consumers and their expenditures would invigorate manufacturing and create jobs,according to Sylvis.Shorter hours would also provide jobs for returning soldiers who need employment.The NLU established the nation's first permanent lobby in Washington.In May 1869,President S.Grant,issued a proclamation that no reduction shall be made in wages paid by government by the day to workers on account of a reduction in hours of labor.This opened the door eventually to private companies paying workers for their services in the same manner.

Sylvis saw a means to address the problem of a permanent wage-earning class.He proposed cooperative ventures,both manufacturing enterprises and consumer run stores.As cooperationists,they would sell the products they manufactured and subsist off the profits.Worker owned industries( I support state run industries today) would spawn land and home associations(cheaper housing),worker-friendly banks(today's credit unions), and lending institutions,as well as the means to distribute food and other necessities at reasonable prices(I support state run food cooperatives today).Sylvis's own Iron Moulders' Union showed the way opening foundry cooperatives in Troy,N.Y. and soon others in Albany,Rochester,Cleveland and Pittsburgh.

The foundries hit rough financial water after a number of years and Sylvis approached the government about supporting worker cooperatives with gifts of money and public lands, much as it had railroad interests(no luck there as it is today).But unlike Europe,where the collective impulse was intrinsic to how citizens viewed their governments(some things never change) and themselves,America was devoted to the individual-a person's freedom to compete and succeed or fail based on his or her own merits and abilities(40% don't pay income taxes today because they don't earn enough in our present economic system).Many believe in America(1870),that cooperation was an offshoot of communism..hostile to property(same here today).The problem with the cooperatives was that they were under capitalized(no help from government or business community),sales of their manufactured products were inadequate,and they lacked the money necessary to grow and sustain a large industrial enterprise(blacklisted by investors).They also lacked the market savvy leadership needed to compete with ordinary enterprises.Some cooperatives managed to creep into the twentieth century and the cooperative store movement fared better than its industrial cousin but both eventually dropped off the marketplace(only to be resurrected in 2016).

More from "There is Power in a Union" by Philip Dray.

Monday, December 20, 2010

The Lynn Shoemaker Strike of 1860

Go to fullsize imageThe first treadle sewing machine appeared in Lynn,Mass.in 1852.Before that technological event,Lynn had a workshop tradition dating back to the seventeenth century.Lynn was well known as the shoemaking capital before the treadle sewing machine appeared.Shoemaking was a home based craft with all members of the home assisting in the making of the product.The sewing machine disrupted this long-established system by increasing the pace at which uppers could be sewn.Shoe factories furnished with rows of sewing machines opened in Lynn;uniform shoe sizes were introduced,as were shoe boxes to safeguard the product.The new term"factory"implied a place of workers and bosses,strict hours,oversight and the constant hum of machines.By 1860,only 25% of the shoe workers were Lynn natives and many of the local journeymen and skilled home stitchers had been driven from the family hearth to occupy factory benches in town.

In the pre-factory era, a worker looked forward to his "competency",the amount of savings that would carry into old age or used for disability.With the new system factory owners,not independent workers,controlled hours and wages as well as availability of work,and "competency"was no longer a sure thing.Lynn shoemakers were displeased by this loss of egalitarian balance,angry that they ,the actual producers of the town's wealth,were forced to see their share of the shoe business's material rewards diminish even as their futures grew more uncertain(sound familiar).

Around 1860,the nation entered into a national recession and the owners cut wages and hours of the Lynn workers.The outraged workers saw an effort to degrade permanently the wages paid shoemakers in Lynn and declared a strike,demanding a standardized wage.This began the first nationally watched labor battle in U.S.history.On Washington's birthday,Feb.22,1860,the shoemakers marched in protest,holding aloft placards bearing images of the first president stating"Our cause is just and our union perfect".Sympathetic workers from surrounding towns joined the Lynn workers. The factories began to secretly send shoes to market.The striking workers disrupted this process and a town constable who intervened was mobbed and knocked down.The town asked Boston to send thirty policemen to maintain order.Violence continued the next day with the police but they left in a day and the strike continued without violence.On March 7th,eight hundred women trudged in falling snow through the main streets joining the men against the shoe making establishment.

The 1860 Lynn shoemaker strike against authoritarian dictates of the factory system proved something of a last gasp.Technically it gained little in terms of better wages or working conditions.The strike was a success for it's display of worker militancy and the free public discussion of labor issues than any specific results. Fifteen thousand male and two thousand female shoemakers had entered the fold of organized labor and lasting connections had been made between workers of neighboring manufacturing towns.In 1860, the town elected a shoemaker the new mayor of Lynn.On March 5th,1860,Abraham Lincoln was campaigning in Hartford,Conn. when a reporter asked him about the strike.He answered"I am glad to see that a system of labor prevails in New England under which laborers can strike when they want to".

More from "There is Power in a Union" by Philip Dray soon.

Thursday, December 16, 2010

Women In The Labor Movement:Sarah G. Bagley And The Lowell Female Labor Reform Association


It was women and men that created the first resistance to industrialization's injustices.They lead the fight against powerful interests of the textile mills,banking and the Massachusetts State Legislature in the late 1840's.Sarah G.Bagley was the lead voice for a ten hour work day that was rejected by a Massachusetts State Legislative committee who deemed intervention inappropriate because it would hurt the ability of industrialists to compete with mills in other states not burdened with such mandates(sounds like globalization today).The committee also proclaimed that matters relating to hours and wages were not the state's business but private issues to be resolved between the workers and the company(positions never seem to change).Sarah G.Bagley had a touch of "Lowell fever""when she first went to work at the textile mills in Lowell,Massachusetts in 1837.Many young women flocked to Lowell to earn money(at their home farms they worked long hours for free),peek at a wider world,participate in an under-graduate type education,attend lectures and meet like minded people.She wrote two stories for the"Lowell Offering",an independent literary journal,which was published by female mill workers that celebrated American factory life.Bagley wrote about the mill girls' wages assisting distant relatives,the exposure through the lyceum lectures of Emerson and John Quincy Adams and the broadening experience of meeting women from other states and towns.

The rosy picture of Lowell began to fade when the workplace became a vehicle for oppression and avarice.The young women began to have less time for intellectual experiences due to the long,arduous,unhealthy working environment.The work became a life condition instead of a transitory stage for young women who wanted more time the enjoy their labor.It was a permanent, fixed predicament without any light for increased prosperity.Most women worked fourteen hours a day in unsafe conditions and were restricted by the employers on their off hours.Their wages were also cut when economic conditions decreased company revenues.The mill workers tried to gain better working conditions in 1834 and 1836 before Bagley arrived at Lowell but were unsuccessful.By the mid-1840's,Bagley's views were hardening and she wrote and edited the "Voice of Industry",a labor periodical she wrote for that openly mocked visitors that toured the mills(provided by management) and compared them to factories in England.The "Voice" warned that the whole system of factory labor was unnatural,oppressive and unjust.

Sarah G.Bagley emerged as the leader for the ten-hour day in the mid 1840's.She created the Lowell Female Labor Reform Association,a branch of the New England Workingman's Association, in 1844.She gathered with workmen in Boston in 1845 and gave a speech(very unusual) supporting their union and telling them of the women's solidarity and equality in the fight against unjust working conditions.The plea for reasonable hours of work struck directly at the question of weather the wealth created by industry was truly to be shared,and revived the debate that had prevailed in the early years of the republic as to whether industrialization would be a more just and equitable affair in America than abroad.In 1828,the Mechanics' Union of Trade Association(Philadelphia) was formed to fight for the ten-hour day.By 1835,Philadelphia established a ten-hour day for municipal workers.Five years later,all federal employees had the same ten-hour work day. Unfortunately,the factories of industry had a harder road to ride.The "Voice of Industry" called for a general turn-out on July 4th,1846.She campaigned against the longer hours in Pittsburgh,Manchester,Lowell and many other factory towns.Bagely's group submitted a petition of a thousand names of Lowell workers to the state legislature for help.The petitions proved historic because it was the first legislative hearings ever conducted in America to examine the conditions of labor.The committee listened to reports of fourteen hour workdays,short breaks for meals,standing on their feet all day side by side,noxious atmosphere,airborne dust,smoke filled rooms from whale oil and windows  nailed shut. The committee eventually rejected the complaints because it would hurt Lowell's competitive marketplace requirements and the conditions were better than England.Bagley interpreted the rejection as a rebuff to female workers because they didn't vote and have any political clout.She stated"your sapient heads are very busy in forming laws to protect,uphold and upbuild the rich(sound familiar).Eventually,Bagley's won the ten-hour battle but not before 1874 in Massachusetts.The surrounding states reluctantly produced some version of the ten-hour day in the 1850's.

More from "There Is Power In A Union" from Dray next post.

Wednesday, December 15, 2010

America:Land Of Plenty

America is a country of beauty and abundance.The vast majority of the citizens care about their communities and support all kinds of charities.I'm very proud of our country for all the advantages it gives to my family and  neighbors.It is a great place to live, for the middle and upper classes, because we have every consumer item imaginable with the best entertainment in the world.Every state has sections of astonishing beauty from rivers and oceans to parks.Numerous restaurants from every ethic group is available in small or large cities.The finest housing is available to the majority of the citizens.Food is abundant and cheap compared to most of the world.The lower classes are subsidized to acquire food,housing,education and transportation at reduced prices.We have great universities and excellent suburban school systems.Our library systems enable all classes to read the best books for free.Our police departments are trained and full of experts who protect our citizens from domestic and foreign entities.Our governments are elected and represent the citizens admirably the majority of the time.The military protects our shores and follow the instructions of our civilian representatives peacefully.Our money is protected by an insurance system.The government saves money for us safely for our retirement years.We have a fabulous health care system that meets the majority of the citizens needs.Our population is very diverse and has numerous sub-cultures to draw experience from.The practice of one's religion isn't questioned but supported.Throughout our history,America has been the land of opportunity for immigrants to live a better life.America is full of hope for an improved society that will enhance all citizens.

Does this sound a little strange coming from this blog?I know that most of my posts are negative in regards to the our capitalist system and the burden it brings to the lower class.Today,I want to bring some positive thoughts because I really love our country as much as anyone even if I try to find many ways to improve our systems.I haven't traveled like the majority of middle class Americans.I only know our controversial country firsthand but I enjoy it everyday.I'm going to one of the finest museums in the world Friday.I'm taking the train to NYC to the Museum of Modern Art and study the masters for some insight.NYC has many great museums and I think Friday is free.Many American cities provide free entertainment throughout the year.Movies,plays and sporting events are free or reduced at many locations and one just has to be on alert for good deals.High schools and universities also have free events that engage citizens in various forms of education.If you have some disposable income,every major American city has a wealth of entertainment.Musicians,some the best in the world,are constantly touring and bringing their art to the people.My beloved Knicks play a few times a week in NYC while every game is shown on T.V. for a small cable price.The variety of food in America is increasing as we speak. New housing is being built with zero energy standards.The present government is trying hard to increase our renewable resources with subsidies and an encouraging philosophy.Many wealth professionals have foundations that help underprivileged students in our major cities.Some say,the United States is the best place to start a new business because of the wealth of it's citizens.

I could go on about what America has to offer.Income inequality makes it harder for all Americans to prosper and enjoy her beauty and abundance.Some of us have a lot more than others here and my blog will continue to bring solutions through my readings.My hope for America is that it truly shines as a light in a world of violence and darkness.It can do so by sharing the abundance and bringing resources to those in need.Collectively,we can overcome any adversity.

Sunday, December 12, 2010

The Hurt Locker,Tompkins Square Park(1874) and Tax Increases To Save America

On a chilly morning of January 13,1873,fifteen thousand people gathered in Tompkins Square Park to demand government relief and public jobs.They did so because there was a financial collapse on Wall Street in September 1873(no apologies then ,none now).There was no work and NYC unemployed were desperate for food,coal and the means to pay rent and provide milk to their children(sound familiar).William Havermeyer had agreed to address the crowd and hopefully alleviate their concerns.Unfortunately,fear griped the city government(backed by newspapers and the business community) and they turned against the protesters with the the force of the police department(will be used in the near future when protesters appear in the streets for employment).Police commissioner,Abram Duryee,with a squad of officers,tried to disperse the crowd but the unemployed workers resisted(no unemployment insurance then) when they were pushed harshly and Havermeyer broke his word.Havermeyer later explained to the organizers that the purpose of city government isn't to furnish work to the industrious poor....and that other countries had that system but not the United States didn't(Capitalism has always failed the poor,state employment was needed then and today).Two weeks later at a meeting at Cooper Union,Augusta Lilienthal of the German Free-Thinkers Union, stated that the unemployed workers were a portion of positively the best class of our citizens.They were the true taxpayers.They were working men and had assembled to ask for work and for that they were knocked down. He asked,what condition of affairs is this? Journalist and labor advocate,John Swinton,reminded the hall that twenty years ago(1854),Abolitionist sounded as terrible as the word Communist ( income equality,collective bargaining) does today.Let us not wait in this case till our tongues are tied and our hands are manacled(getting close today).Let us not lie supine till our chains are forged,but let the forgers be warned and thwarted in advance.These statements are found in the new book I am reading"There Is Power In A Union" by Philip Dray.One hundred and thirty five years have passed since the Tompkins Square incident. From my perspective,the current employee/employer relationship in America hasn't changed much and the government leaders throughout our land are silent concerning the hardships of our lower,working class.Both parties consistently respond to middle class needs while ignoring the growing inequality developing in the lower class.American style capitalism,worst offender, in developed countries,has completely turned it's back on the working poor by dismantling collective bargaining and moving manufacturing jobs(or any reasonable paying jobs) overseas.A new form of " silent slavery" has developed where wages are kept at poverty levels and worker rights are ignored and buried in the powerless fear of unemployment .Corporations and small businesses are undermining our mighty middle class as insecurity abounds and personal debt increases.Thomas Jefferson understood the hardships of the lower class worker. He was against the British manufacturing environment created by the upper class to exploit the workers in England.He wanted the values that were written in the Bill of Rights to be carried in the workplace in America.George Washington wore "homespun" clothing as a reaction to to the imported fabrics from Great Britain.He stated that he has for too long been a subject to British prejudice...no porter or cheese in my family,but such as is made in America.More products should be made and consumed by Americans to create jobs for the lower class. If capitalism can't provide them, then the government must.They can do so by creating laws that will mandate the consumption of American products.Yes, a restriction on what we can buy to help our fellow citizens live like the middle and upper class in America.Each state could manufacture products to be consumed by it's citizens.The amount and type will be appropriate to the environment and demographics.It's a new form of "homespun"that will break from a form of economics that under serves 30% of our society.Capitalism will continue here but with a new partner who will draw from the lower class to improve living and working conditions for all. Work councils(like the ones in the EU) should be established not only in the state generated jobs but also in the private sector.Labor laws should be established here to provide shared decision making in the workplace for all Americans.Tax increases,not decreases, should be encouraged to reduce the deficit and start the process of government participation in the manufacturing sector.Creating good jobs for the lower class will increase consumption drastically and create more revenue for the government instead of cutting taxes for the rich who sit on their money and don't consume at the lower class ratios.

I saw the film"Hurt Locker" last night and was astonished that the United States continues to exploit the lower class with the "heroes of America" propaganda we constantly are bombarded with in advertisements and statements.The soldiers in the movie (Iraq 2004..Baghdad)were very heroic in their world as bomb dispersal experts.I couldn't believe the U.S. positioned our children in this area of conflict where the population was so against their good will.The extremely dangerous environment(Baghdad in chaos with Americans as targets) only made the decisions by the Executive and Legislative branches more ominous.The decision to send our troops into a country that didn't have an organized opposition to Saddam was so incoherent that future writings should take them to task as the weakest,uninformed session of Congress in our history.Again, it is on the backs of the lower class, not the middle and upper class, that have to carry out the blind decisions of our revengeful,thoughtless leaders.The young men and women are heroes of their distorted world but our representatives are the vile that creates hatred around the world.Our good intentions lack the insight we need to become caretakers of world peace and security. Our call for "national security" has made our world less secure and our children implements for destruction.Jefferson and Washington would be turning in their graves.

Thursday, December 9, 2010

The New Health Care System:Everything You Need To Know(Nather)

The new health care plan will not change for the vast majority of citizens(80%).People working with health care covered by their employer won't be affected.In the individual market,where people get health coverage on their own,premiums will go up because the benefits will be better.The higher costs will eventually be canceled out through government subsidies that will cover about half the people.Young adults under 26 will be able to be covered as dependents on their parent's health insurance that allows dependent coverage.Costs to cover the treatment of uninsured people increased the average individual premium by $410 and the family premium by $1,100(about 8% of the premium).Under this plan,everyone should be covered so that percentage should shrink accordingly.Many people will receive subsidies according to income levels(Ind.$14,404/H.P pays 94%..Ind.$43,320...H.P pays 70%..Family of four.$55,125...H.P pays73% etc.).

Small businesses will be able to get a tax credit for up to 35% of their contribution to the premium.In 2014, they can get up to 50% if they get their health insurance through the new health insurance exchanges.Tax-exempt businesses will get up to 35%.If your employer offers a HP that covers less than 60% of your costs or make you pay more than 9.5% of your income,you can apply for a subsidy and get your HP from your state's exchange instead.The exchanges will have different plans to choose from with more coverage costing more.Two national private plans will be offered in 2014 that meet all of the minimum standards of health care programs for federal workers.The new system will close the "donut hole" for drug purchases.By 2013,50% discount on brand-name drugs will be offered.Subsidies will increase for generic drugs.By 2020,there will be a 50% discount on all drugs with medicare covering another 25%.

The Medicare Advantage (private..10 million people)plans cost $11 billion more than regular Medicare in 2009.Under the new law,the government will change the payment formula to these private plans to save money for services.Pilot programs are being developed to test new ways of paying Medicare providers and organizing their services.The point will be to find new ways to spend less on medical care and try to make it more efficient.

Starting in 2014,if you apply for any kind of coverage through your state's insurance exchange,they're supposed to check to see if you qualify for either Medicaid or the State Children's Health Insurance Program.If they do,they'll enroll you automatically.Under the new voluntary long-term care coverage program,you'd get a least $50 a day in benefits.You would pay premiums through payroll deductions.All new private HP will have to cover preventive services without you sharing the costs.Breast cancer screenings will be covered under Preventive Services Task Force guidelines.The new law makes a push for "comparative effectiveness research" which tries to find the best procedures and treatments for certain conditions.The Independent Payment Advisory Board will recommend ways to cut Medicare spending but it won't be able to ration care,cut your benefits,raise your premiums or taxes,or change who is eligible for Medicare.

In October 2009,the Institute of Medicine estimated that a third of all health care spending in the U.S.($800 billion) goes to care that doesn't make us any better."Medical homes" will be encouraged as a place that has a team that understands your medical needs(doctor,nurse,pharmacist,arrangements to see specialists or hospitals,protect you from other providers who want to give unnecessary tests/medications).

The solution for paying for the new plan will be spread broadly.It will be paid buy the wealthy,the most generous health plans, and cutting the fat out of Medicare and health industry.There will be a tax on "Cadillac Plans" worth more than $10,200 for an individual and $27,500 for a family.The medical expenses deduction will have a higher level before you can deduct from your taxes.The Medicare providers will  receive increases at a slower level for services.Payments to medicare advantage plans will be frozen at their current levels.There will be cuts to hospitals that treat the uninsured.If your income is over $170,000,you will have to pay higher premiums for medicare Part B,which covers physician and outpatient services.High income individuals will have to pay higher medicare payroll taxes than everyone else(1.45 to 2.35%..3.8% on investments.

The book is well written and provides all the answers.

Tuesday, December 7, 2010

Federal Reserve: How Does It Really Operate? Watch Out For Bernie

I'm a college graduate(only 25% of us in America) ,with a masters(even smaller percentage), and still can't figure out how much money the Federal Reserve has(with some research have found out, I think).I have recently read and reported on many economic books but still can't grasp where all the money($3.3 trillion in short term loans for emergency funds for banks and corporations starting in 2007..dwarfing the TARP program by the Treasury Dept.)comes from(selling Treasury securities,again I think).Does the Federal Reserve have a lot of money from member banks(reserve balance of 3-10% of member deposits),fees charged for processing and clearing checks and the selling of  Treasury securities? As the U.S government's bank, do they charge the government fees for processing their transactions and managing their numerous accounts.Bernie Sanders,Senator from Vermont,is angry at the Federal Reserve for lending money to U.S. and foreign banks at the discount rate(close to zero)during the great recession of 2008 without any consultation or disclosure.Sanders accuses the banks of not lending to businesses(purpose of loans) to stimulate the economy but used the money to make a safe profit by buying Treasury securities.The end result is the continuation of the recession for many citizens who remain unemployed.The Fed was forced to disclose who it lent the money to by the courts. It had refused to give the information to Congress since 2008(wanted to remain independent from political over site).The information has recently come out and is listed on the Fed's website.Go see the 21,000 transactions.According to the Fed,no credit losses were suffered at the end of this process.

According to my brief research, the Federal Reserve supports itself by generating income from interest earned from(1) government securities that it acquirers through open market operations(2) foreign currency investments and (3)bank/depository institution loans that it makes using the discount rate.Any money left over after paying it's expenses is sent to the U.S. Treasury.One can find income and expenses on the Board of Governors Annual Report on it's website.

The Federal Reserve also "prints money"that means it will hold an auction to buy assets like bonds or mortgage backed securities from banks.Then they will issue a credit to the bank's account,creating new money with the hope that the bank will lend the money to businesses and consumers.All this is foreign to someone like me and most Americans don't understand the financial service world.What about our national debt? How does this play a part?As of September,2010,the "Total Public Debt Outstanding" was $13.56 trillion.The U.S. has been in debt since it's inception.The Civil War,WW1,WW2,inflation from 1950-80,War On Terror 2001-2010 and the great recession of 2008 greatly increased our deficit over the history of the U.S.It was 256.8 billion when I was born with a population of 150 million.The population has doubled and the debit increased by a factor of 54.2.Foreigners hold 27.9% of our debt while the Fed holds 49.37%.Pensions(2.5%),mutual funds(4.74%),savings bonds(2.055).Do we owe the fed or ourselves money if the Fed holds about half the debt(U.S Treasury Securities)?I'm still confused..I'm going out to paint.

Saturday, December 4, 2010

We Need More Than A Thousand Points Of Light

I'm up early today to watch a friend run 50 miles on his fiftieth birthday to raise money and awareness about leukemia.Leukemia has been a darkness in the world and a deadly problem for all of us our whole lives.Raising private money( I gave today and will give to others) for deadly diseases bothers me because I feel research should be a priority in this country and publicly funded to the fullest of our ability. I know our taxes pay for research and many private companies give money to universities to find cures to these diseases but we have been coming up short for so many years. I get discouraged and angry that we haven't found solutions to many of our horrible health problems.All across the country,people are raising money for the numerous inflictions that darken our world.Arizona has recently denied lung transplants to people on medicaid due to state financial debt.A young,exchange student from Afghanistan is running part of the way with my friend today to help support his cause.I understand she is a wonderful young woman and I'm looking forward to see her today and talk to her about her country and stay in America.The U.S. is spending $120 billion a year to bring Jeffersonian democracy to her country.It looks like we won't be successful after 104 months there with a total cost approaching a trillion dollars(she only has electricity a few hours daily).We went there because we wanted revenge and we stay because we don't want to lose face as a superpower, according to some experts.We are paying the Taliban $120 million/year to leave our supply lines alone.If we leave the country, the Taliban (or a similar violent entity)will take over and dictate laws, through force, to the people.We are stuck in a dilemma that brings only  more darkness.The decision to go after the terrorist that brought destruction to our shores was valid but we should have been more patient in doing so( I was against invasion from the beginning).The Taliban let the terrorist train in their country but there was no love between the two groups.We could have given them money to solve our problem if we weren't so revengeful with blood on our brains and in our hearts.The decision(both parties agreed) was more of a political move to feed that hunger than a thoughtful approach to protect our citizens.Homeland security,which has cost us billions, came after we made the decision to try to destroy the leadership of Afghanistan.Unfortunately,we didn't solve the problem with force and the Taliban are growing stronger every year.Slow and steady diplomacy(with bilateral cooperation concerning financial aid,building of schools and hospitals) should have been the course but we have missed another opportunity to be successful in a troubled country.

Money,money and more money goes into the military budget without much dissent from our major political parties.The War Resister's budget has defense spending at 54% of the total annual expenditures($1449 billion out of$2,650) .This percentage includes the cost of the two wars(Afghanistan,Iraq...$200 billion),current spending($765 billion) and past military expenditures($484 billion).The annual interest on past military spending is $390 billion(80% of our national debt).If only this money could be reduced and spent differently.

I just came back from the road race and met the young woman from Afghanistan.I talked to her about her city(Bamyan area) and dreams for the future. She is very pure and sweet with hope for herself and family.She is also very intelligent and wants to be a doctor to serve the poor in her country.I asked her about her neighborhood and if she felt safe walking to school.She stated that walking is fun(they don't have a car) and that she has never had any violent trouble with other children from her city. She also told me that the majority of the citizen are illiterate and poor and that she considers herself middle class( father is a doctor,mother a nurse).She stated that she never witnessed any violence between the Taliban and the Americans.

I get the feeling the vast majority of  citizens in Afghanistan want to live in peace and only want what we want.Reasonable health,shelter,food,jobs and the ability to live in a secure environment.Their religion might restrict them at times(discrimination) but it also makes their environment safe if the Taliban(or other fundamentalists) stay out of their way.The typical citizen needs a chance to have an education so they can overcome illiteracy and become intelligent, productive members of  Afghan society.

Bush's"Points of Light" strategy was a compassionate approach to solve the world's social problems and many citizens have answered the call over the twenty years in this country and around the world. Many individuals(Left and Right) have established foundations to alleviate numerous negative social conditions in the U.S. and abroad.Unfortunately,the "Points of Light"approach is not enough to solve the horrendous problems of the world. These lights don't even help the vast majority of poor in America.Stopping the military madness is the first step on the road to a healthier planet.We have to stop spending half our money on defense.Our country can be the leader in reducing military spending. Many countries around the world spend 2-4% of the GDP annually on their military machines. The U.S spends more money on defense than all of the combined total of developed countries. If we start decreasing by 10% annually,we could not only reduce our own deficit,but also start planning to really help the lower class in this country and the under served around the world.My Afghan friend might just have a rewarding life as a doctor helping the poor with a little help from this military reduction.Let the Deficit Commission start with defense spending before raising the age on full benefit social security.

Wednesday, December 1, 2010

The Knicks Start Work Council:Influenced By German Model Of Shared Decision Making In The Workplace

I was at this mansion(home of lap dancer for HVC hedge fund) yesterday in Dutches,Co. N.Y. talking to the Knicks about work councils and the lack of defense in the second quarters,especially Amare Stoudemire on any center he faces.Yes,he leaves his man to make weak-side blocks but his man has been scoring as much as Amare every night.I recommended that they play a triangle and two on high scoring guards for two reasons.The move will enable Amare to get additional help from teammates on the opposing center or power forward and have a continuous double team on the shooting guards.At an early point in our discussions,Landry Fields,brilliant rookie, inquired about the work councils and I proceeded to tell them that they should have one and make shared decisions with the coach and his staff so everyone should get equal  playing time to support the craft they are developing(especially anyone under 25 yrs. old...most of the Knicks).I told them that Mike D'Antoni,Herb Williams,Phil Weber and additional staff shouldn't make all the decisions and that a work council(three elected players in this employment arrangement) could and should bargain with them for the type,place and time of the practice sessions. In addition,the strategies(philosophy),starting five,bench arrangements and minutes all should be done collaboratively with decisions by both the work council and coaches.I told them that some players(7 to 8) were discriminated against because they didn't have the playing time to demonstrate their skills.This limitation of time on the court degraded their confidence and eroded their professional skills.Everyone who ever played the game knows that 75% of the game is psychological and time on the bench undermines their worth as a person and as a worker.D'Antoni started to say that it was unfair to the coaches because they needed to have a winning season to survive in management.The answer I gave to D'Antoni was that he needed to talk to the commissioner so every team would play with the same arrangement.The players had empathy for the coaches situation but it was up to them to make recommendations and tell Stern about the new working conditions for the Knicks.The players were enthusiastic and understood that the work council would bring value to their workplace and all the undermining at practice would disappear.

We watch T.V. 4.6 hrs. per day in the U.S.(I watch every Knick game) while Germany(3.5 and dropping) and ultra-left Sweden(2.7).Geoghegan(Were You Born On The Wrong Continent) states Germans still read big,fat papers everyday to remain informed because they have a stake in the workplace and need to know about the internal and global economies.78% of Germans read a newspaper every day for an average of twenty-eight minutes.Germany has 23 million in paid circulation,while the vastly larger U.S(4 times bigger). has only 34 million.Worker engagement(work councils) increases a stake in acting politically to protect their economic system.They have a stake in reading political news in depth(not just watching pro-business T.V.).For those H.S grads with no skills living outside unionized Germany,this process is meaningless and non-existent.They are totally dependent and hopeless concerning worker rights in American style capitalism(unless they are part of the weakened 11% in U.S. unions).

Germany is also very green.Only in Germany would the government buy up enough DVDs of Al Gore's"An Inconvenient Truth" to play in every classroom.Germany is in pole position in several fast-growing “green tech” areas, including renewable energy and automotive efficiency.The German government has been sending steady green signals to the market for years. It passed a trend-setting recycling law in 1991 and was a pioneer of “feed-in tariffs”, obliging utilities to buy power generated by renewable sources at prices that reflect their higher costs. Now renewables account for 15% of electricity and German manufacturers of solar cells and wind-power turbines are among the world’s leaders.

Felton to Amare to Gallinari to Chandler to Fields to Turiaf to etc. If the Knicks can do it why can't everyone have some ownership in the workplace and the stability to plan for the future with some reason. We are all in this together...lets rent a boat and sail to the Caymans and return our money for those unemployment benefits we can't afford...let's increase the income rate for those over $250,000 from 35% to 50%(they hide most of it anyway).

Sunday, November 28, 2010

German Capitalism:Are You Listening Mr.Romney,President Obama

Germany is the biggest country in Europe with 83 million people.It isn't sexy like France or solve their labor problems in the street through strikes.Compared to France,the state in Germany is weak.It pushed social democracy internally within private corporations without American style regulation.The check on private corporations are built into the structure of the workplace.Since 2003,Germany has been in a dead heat with China as the leader in export sales(1.2 trillion..China moving ahead recently)The European Union,"socialist kingpins", will still sell far more than China.It's a net creditor,not a net debtor,like the U.S.who has $3 trillion in net external debt to the world at large.For most of the recent past,Germany has lead the world in exports with workers who get six weeks off for vacation and  have high wages to spend accordingly.They have been out competing us with one hand tied behind their backs.

Germany is successful because they keep their wages high unlike America and Great Britain who look to compete by reducing labor costs(The World Is Flat /Friedman).How does Germany succeed in a globalized economy? First, wage cost in manufacturing is a very small percentage of the finished product(2-4%).Second,Germany doesn't have the illusion they have to compete on cost.They also don't have the illusion that they have to bust unions as a way to compete with China.Social democracies,Sweden,France and Germany,which kept high wages,now have more industry than the U.S. or the U.K.We smashed our unions because we believed labor cost must be low to compete and that perspective ended up wrecking our industry.Germany is competitive in high-end precision machinery,made by people with high skills.They even have a shortage of people to fill high-skill,high-paying jobs,especially engineers.The growing demand for for high-end specialty goods from developing countries are filled by Germany throughout the world.Germany makes it difficult for a company to shut down a plant while the U.S. makes it easy.The German employer must have a closing plan for taking care of people,paying severance,etc.,making it easier to just keep going.Germans never come close to spending more than they produce.High levels of public spending tends to hold down private consumer spending.The U.S wants the E.U.middle class to run up big debts like us to buy our products but their systems are efficient in delivering public goods and people are much less likely to spend.

Education,skilling people up,is important in Germany because they have industry.We have lost ours and their is no opportunity here so what is the point of trying in this area.Geoghegan(Were You Born On The Wrong Continent)believes democracy dies without an industrial base.An industrial base makes it easier to organize a labor movement.A labor movement makes it easier to keep a social democracy in which people have a stake.Citizens need shared decision making in the workplace to have a stake which creates interest and self worth and a genuine respect for the goals of a country.German workers are at the tables making the decisions with employers. They check businessmen because their system has created an internal structure to do so.They have created work councils,co-determined boards and unions that control wages through "multi-bargaining".

Work councils(500,000workers) make decisions with management who to hire and fire,opening and closing times,what shift someone gets,etc.Management has to make an agreement with the council.The workers get the right to stir the pot like shareholders or the leadership class.The co-determined board,supervisory role,makes decisions like any board in the U.S. of a major company(2,000 employees).It is made up of 50% workers,50% shareholders,capitalists).A CEO can't make decisions without the co-determined board oversight.They are guardians who read files while looking over management shoulders.The unions do the bargaining over wages and pensions at a macro level with an employer federation.They set wages in a determined area for everyone in that job sector.This process is also transparent.The point is that no company should compete with another company based on wages.Egalitarian wages is the ideal to avoid discrimination and income disparity.

More from Geoghegan in the near future.

Friday, November 26, 2010

Getting To Know Europeans From Tremont Ave. In The Bronx

The Cato Institute(conservative think tank) loves to proclaim that our poor has the highest GDP per capita in the world. On paper they are correct but Geoghegan(Were You Born On The Wrong Continent)tells them to go outside and walk around the typical American city to find reality in their statistics.Disorder,crime(largest criminal justice system in the world) and hopelessness abounds with segregated housing and poverty income levels(without European style safety net system..free tuition,health care,retirement,job security,collective bargaining,etc.).The average per capita income(purchasing power ratios) in America is $45,604 in 2007 while Germany ,Denmark,France,Netherlands and Switzerland are about $12,000 to $5,000 behind that number. Geoghegan states that the super rich gobble up well over two-thirds of the difference in the U.S. In 2005,the real hourly wage for production workers in America was approximately 8% lower than it was in 1973,while our national output per hour is 55% higher.

Americans are working much harder(2300 hrs/year to survive for most) than the Europeans who work around 1,500 hrs. Those eight hundred hours are spent by Europeans taking family vacations,reading books of interest,going to the movies,riding a bike through the city park or spending quality time with one's family.God forbid the employee who balks at the notion of less hours and more pay without collective bargaining(U.S. has only 11% of the workforce unionized...up to 85% in some European countries,many with work counsels).Americans also spend a great deal of time traveling to work unlike the Europeans.Only 5% of our country can use public transport at the same time our bridges,roads and rail systems are collapsing.At the same time,Europe is unifying thanks to Ryanair and faster rail.Europeans use public transit ten times more frequently than Americans do.In Germany and France that statistic is higher(gov. planning).Americans are moving farther away from there jobs and quality entertainment. They travel to the suburbs and exurbs to find affordable housing with quality public schools because of income inequality(poverty,joblessness),crime and the high cost of private education.

Goeghegan claims that if our society was more efficiently planned(extended safety net with collective bargaining,planned housing/transit,income equality with little crime)our GDP per capita would fall. The lower we keep taxes, the worse the infrastructure so we pack up and move.The result is that our GDP per capita rises. Why?Lower taxes(Europe only pays 1/5 more)create middle class movement that increases our gas/car bills and our tendency to supersize our homes.We also go out a lot to eat due to time restrictions from working(two job earners) and traveling. Income inequality creates jobs in law enforcement,private security guards, prosecutors,public defenders, public prison guards,janitors,etc.The super rich make life harder for the middle class who want to send their kids to the best schools in the country.School tuition to top private universities have skyrocketed and the middle class must pay the ransom to continue in the game that leads to select employment opportunities.

According to Goeghegan,many middle class workers invest in themselves to become more attractive workers.He calls them investments in producer wants instead of consumer wants.Computers,private gyms,day care for the children,reliable,expensive cars to get to work and even cosmetic surgery to look younger.Debt may even be a mark of self-discipline(investing in themselves) to stay on top at the office. Most Europeans save and avoid debt due to the planned infrastructure and security of employment.They spend on items not connected to the workplace but supportive of creative culture. A European-type social democracy is really a form of guided spending.The state taxes and spends tax money on what one really needs.The state can buy in bulk,in the most efficient way. This leaves one plenty of money to spend on your own. One person can't buy things for oneself as cheaply and efficiently as the state can.The state can allocate money better than someone for retirement,health,education,transportation and childcare collectively by pooling money and avoiding mistakes.

More from "Were you born on the wrong continent" in a few days.

Thursday, November 25, 2010

Were You Born On The Wrong Continent(Thomas Geoghegan)?:I Was

Thomas Geoghegan's book about social democracy in parts of Europe is well beyond informational because it clarifies the big difference between the United States(free market,Darwinian inequality)and Europe(free market,social,economic stability and equality) in terms of lifestyle as defined by the social net weaved by both democracies.This book was acquired through the public library and one might not find it in your local Barnes and Noble where celebrity pundits(to the right) prevail.

Geoghegan's book starts with a trip to Moscow by way of Zurich,Switzerland(rated best quality of life in world) in 1993.He can't believe how beautiful the city of two million people is and starts to compare it to American cities.Geoghegan is from Chicago(one of America's Midwest jewels) but he never has seen a city not just opulent(richest in the world)but opulent in such an elegantly intelligent way.The book would go on the talk about city/social planning in later chapters and it is a significant component of enhanced lifestyle.He starts to compare cities briefly by going down the alphabet."B" We have Baltimore,Baton Rouge..they have Barcelona,Bologna..As he goes down the alphabet,he gives the tangible impression that the European cities are nicer,safer and better organized for citizens to enjoy.He writes about GDP per capita and how from 1983 to 1993,Europe has climbed up to America and a few countries like Norway is even above us.The shock isn't per capita increase to Geoghegan but the per capita in the street(quality of life).The cities are elegant and safe with numerous subsidized entertainment venues(an opera cost $13..$80 in U.S.)Sweden is the richest country and it is the most Red(to the left) where 7.7 % of the elderly live in poverty.(U.S has 24.7 %)Children in poverty in Germany has a 9% rate(mostly in East Germany) while the U.S. has 21.9%.Geoghegan doesn't want to rely on graphs and tables to illustrate the difference in quality of life.He wants you to go there and touch,see,taste and smell the difference. He loves the intelligent order of the cities and the lack of disorder of mass poverty like we have in the states.Mass poverty,according to Geoghegan brings disorder and that disorder makes it impossible for everything to be "perfect" the way it is in Europe.

He eventually goes to Moscow and it was worse than he had imagined.Everyone was talking about the civil war,shootings and chaos.He wanted to talk about how beautiful Zurich was but everyone was more concerned with survival.Geoghegan returns to what he has found in Europe. He states that the NY Times and the Wall Street Journal repeatedly wrote (joblessness,high labor costs)about the collapse of Europe in the eighties and early nineties. He didn't realize it was so nice(from Milan to Paris over to the Rhine and up to Norway).Staying in Zurich was relatively cheap in 1993.He paid $125/night for a beautiful place(gardens,waiters view of city) that would have cost $1,000 in the states.Europe is set up for the middle class and America is set up to buy cheap gas and kitty litter at Walmart.He feels the bottom two-thirds of America would be better off in Europe especially if one hasn't got a raise in numerous years,don't have a 401(k),nothing but Social Security and no health insurance.Unemployment is lower there and even a single man can get on welfare.Most are in unions that have a golden parachute(stability on the job,shorter work week,six week vacations,pensions,health care,free tuition for school,paid maternity/paternity leave,parent care,quality,low cost transportation)that differentiates itself from the American style capitalism we have in the workplace.

Much more to come in the next days from Geoghegan.

Monday, November 22, 2010

World Poverty Rates:Poor Reflection On Global Capitalism

imageThe percentages of people living in poverty around the world is beyond belief as we approach Thanksgiving in America.We really have a lot to be thankful for in this land of plenty. Many conservatives use the argument that our citizens who live in poverty here have numerous resources to survive and they are much better off than other countries around the world. They are correct arguing that point because most of the world lives on less than $2 a day with many under $1.25. Tanzania leads all countries with an astounding 96.6% living on less than $2 a day.Liberia comes in second with 94.8% while numerous African countries are in the high eighties.The following information comes from globalissues.org written by Anup Shah.(3 billion people live on less than $2.50 /day)

  • The poorest 40 percent of the world’s population accounts for 5 percent of global income. The richest 20 percent accounts for three-quarters of world income.

  • According to UNICEF, 22,000 children die each day due to poverty. And they “die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. Being meek and weak in life makes these dying multitudes even more invisible in death.”

  • Around 27-28 percent of all children in developing countries are estimated to be underweight or stunted. The two regions that account for the bulk of the deficit are South Asia and sub-Saharan Africa.
    If current trends continue, the Millennium Development Goals target of halving the proportion of underweight children will be missed by 30 million children, largely because of slow progress in Southern Asia and sub-Saharan Africa.

  • Based on enrollment data, about 72 million children of primary school age in the developing world were not in school in 2005; 57 per cent of them were girls. And these are regarded as optimistic numbers.

  • Nearly a billion people entered the 21st century unable to read a book or sign their names.

  • Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.

  • Infectious diseases continue to blight the lives of the poor across the world. An estimated 40 million people are living with HIV/AIDS, with 3 million deaths in 2004. Every year there are 350–500 million cases of malaria, with 1 million fatalities: Africa accounts for 90 percent of malarial deaths and African children account for over 80 percent of malaria victims worldwide.

  • Water problems affect half of humanity:
    • Some 1.1 billion people in developing countries have inadequate access to water, and 2.6 billion lack basic sanitation.
    • Almost two in three people lacking access to clean water survive on less than $2 a day, with one in three living on less than $1 a day.
    • More than 660 million people without sanitation live on less than $2 a day, and more than 385 million on less than $1 a day.
    • Access to piped water into the household averages about 85% for the wealthiest 20% of the population, compared with 25% for the poorest 20%.
    • 1.8 billion people who have access to a water source within 1 kilometre, but not in their house or yard, consume around 20 litres per day. In the United Kingdom the average person uses more than 50 litres of water a day flushing toilets (where average daily water usage is about 150 liters a day. The highest average water use in the world is in the US, at 600 liters day.)
    • Some 1.8 million child deaths each year as a result of diarrhoea
    • The loss of 443 million school days each year from water-related illness.
    • Close to half of all people in developing countries suffering at any given time from a health problem caused by water and sanitation deficits.
    • Millions of women spending several hours a day collecting water.
    • To these human costs can be added the massive economic waste associated with the water and sanitation deficit.… The costs associated with health spending, productivity losses and labour diversions … are greatest in some of the poorest countries. Sub-Saharan Africa loses about 5% of GDP, or some $28.4 billion annually, a figure that exceeds total aid flows and debt relief to the region in 2003


  • Number of children in the world
    2.2 billion
    Number in poverty
    1 billion (every second child)
    Shelter, safe water and health
    For the 1.9 billion children from the developing world, there are:
    • 640 million without adequate shelter (1 in 3)
    • 400 million with no access to safe water (1 in 5)
    • 270 million with no access to health services (1 in 7)
    Children out of education worldwide
    121 million
    Survival for children
    Worldwide,
    • 10.6 million died in 2003 before they reached the age of 5 (same as children population in France, Germany, Greece and Italy)
    • 1.4 million die each year from lack of access to safe drinking water and adequate sanitation
    Health of children
    Worldwide,
    • 2.2 million children die each year because they are not immunized
    • 15 million children orphaned due to HIV/AIDS (similar to the total children population in Germany or United Kingdom)

  • Rural areas account for three in every four people living on less than US$1 a day and a similar share of the world population suffering from malnutrition. However, urbanization is not synonymous with human progress. Urban slum growth is outpacing urban growth by a wide margin.

  • Approximately half the world’s population now live in cities and towns. In 2005, one out of three urban dwellers (approximately 1 billion people) was living in slum conditions.

  • do over half of the populations of India and China.

  • Indoor air pollution resulting from the use of solid fuels [by poorer segments of society] is a major killer. It claims the lives of 1.5 million people each year, more than half of them below the age of five: that is 4000 deaths a day. To put this number in context, it exceeds total deaths from malaria and rivals the number of deaths from tuberculosis.

  • In 2005, the wealthiest 20% of the world accounted for 76.6% of total private consumption. The poorest fifth just 1.5%: