Media clips
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“You don’t pay an independent contractor by the hour,” said Ross Eisenbrey, a former U.S. Department of Labor official and a lawyer with the Economic Policy Institute in Washington, D.C.
He said he was surprised the forms passed muster with regulators.
“The extent, the open, brazen way that people are filling out forms and saying ‘I’m breaking the law’… the flagrancy of it does surprise me,” Eisenbrey said.
McClatchy September 9, 2014 -
The long-term unemployed now make up 31.2% of all jobless Americans. That’s still historically high, but is down from 38% a year ago and 45.3% in April 2010.
“Long-term unemployment is actually falling faster than you would have predicted,” says Josh Bivens, research director at the Economic Policy Institute.
USA Today September 9, 2014 -
“Wage growth is far below the 3.5 percent rate consistent with the Federal Reserve Board’s inflation target of 2 percent. It’s clear that Fed policymakers should abandon notions of slowing the economy,” Elise Gould, an economist at the liberal Economic Policy Institute, wrote in a blog post.
The Washington Post September 9, 2014 -
As the unemployment rate continues to drop, then, economists have turned more and more to wages and earnings as an indicator of progress. “Employers just don’t have to offer big wage increases to get and keep the workers they need, when hiring rates and net job creation remain far slower than what’s needed to for a healthy labor market,” said Elise Gould of the Economic Policy Institute, reacting to the jobs report. But some other indicators have looked up recently, meaning maybe the economy will get a better report card next month.
New York Magazine September 9, 2014 -
The scheme was most prevalent in Southern states where unions are weak, federal payroll records show. But reporters found projects in 21 states and the District of Columbia in which businesses didn’t withhold the taxes they’re obliged to deduct from employees’ pay. At a time when state and federal governments struggle to find additional revenue, the McClatchy investigation reveals that the nation’s leaders are missing opportunities to recover billions of dollars each year by not enforcing rules already on the books.
“It’s the Wild West. It’s anarchy,” said Ross Eisenbrey, a former labor official who’s the vice president of the left-leaning Economic Policy Institute in Washington.
McClatchy September 5, 2014 -
Fanny Velazquez, a single mother of three, has worked at a Los Angeles McDonald’s for eight years and makes around $9 an hour, about average for American fast food workers. “It’s difficult, it’s not enough to pay my bills,” Velazquez told the Los Angeles Times at a protest in Exposition Park.
L.A. Mayor Eric Garcetti is among the politicians responding to Velazquez and others like her with a sympathetic ear. On Monday, the mayor proposed raising the city’s minimum wage to $13.25 by 2017, saying, “it’s deplorable and bad for our economy to have one million Angelenos stuck in poverty, even when working full time.” According to an Economic Policy Institute report, 16.7 percent of restaurant workers live below the poverty line, more than double the percentage for those who don’t work in the industry.
US News and World Report September 5, 2014 -
Labor organizers have planned a major fast-food worker strike this Thursday that will take place in an estimated 150 cities around the country. The strike comes on the heels of a Labor Day speech in Milwaukee by President Barack Obama that called once again for a raise in the minimum wage. In an opinion piece for the National Journal, economist David Cooper writes, “Raising the federal minimum wage would significantly improve the lives of millions, help spur wage growth, and reduce the gender pay gap.” Cooper said that raising the minimum wage to $10.10 per hour would lift wages for 28 million working Americans — nearly 20 percent of the entire U.S. workforce. “When you raise the minimum wage, you’re not just lifting wages for folks that are right at the bottom. You’re also going to lift wages for those making just above the minimum wage. This is what we call the spillover effect,” he said.
Wisconsin Public Radio September 5, 2014 -
This is just quite delightful:
“Labor’s share of income measures the percentage of corporate profits that go to pay wages to employees – as opposed to enriching shareholders and other owners.”
In 2013, labor’s share of income fell to 72.7%, according to the Economic Policy Institute. In the first half of 2014, however, the number spiked up.
No, simply no. Labour’s share of income just isn’t the amount of corporate profit that flows to labour. That’s a gross misunderstanding of what is actually happening here. Labour is of course a cost to a corporation and in order to calculate profits we look at income, subtract all of the costs (so, subtract cost of goods sold, the cost of labour, the cost of rent and utilities and so on) and what’s left over is the profit. So, the labour share is that portion of corporate income that goes to wages. And no, the residual, after labour income, is not what flows to owners and shareholders either. Labour income plus corporate profits does not amount to 100% of the economy, nor even to 100% of the income of the corporate sector.
What makes this so lovely is that the source that Ms. Moore is using is very clear on this point. Here’s the EPI:
“The figure below shows a particularly stark measure: the share of corporate sector income accounted for by workers’ wages and benefits.”
Forbes September 5, 2014 -
The median value of all financial assets was also down, decreasing 8% to $21,000. Although markets soared from 2010 to 2013, only about a third of households have stock holdings of at least $10,000, according to the Economic Policy Institute.
The median value of stock holdings rose 26% to $27,000.
The share of Americans owning certificates of deposit fell sharply as bank interest rates remained meager, to 7.8% from 12.2%
The portion with retirement accounts fell below 50%, though their median value increased 25% to $59,000. “The growth is likely explained by resurgent stock markets and increased contributions by those who participated in retirement plans,” the report said.
The early years of the recovery also featured a welcome decline in household debt, with the share of families holding any type of debt falling to 74.5% from 74.9%. Only 42.9% had mortgages, down from 47% in 2010.
Twenty percent of households, however, had student loans, up from 19.2%, and their median value rose 15% to $16,000.
USA Today September 5, 2014 -
Yet Josh Bivens, research director at the liberal Economic Policy Institute, says America’s relatively low “headline unemployment rate is painting too rosy a picture of how the U.S. labor market is doing.”
Associated Press September 5, 2014