The DISH

Unbossed and unbought news and information you can use

Vol. 12 Issue 50…Dedicated to the Dialogue on Race…December 13, 2009

 

 

Intuit's Vibe

The Cold Within

By James Patrick Kinney



Six humans trapped by happenstance in black and bitter cold

Each possessed a stick of wood,

Or so the story's told.

Their dying fire in need of logs, the first woman held hers back

For on the faces around the fire

She noticed one was black.

The next man looking 'cross the way

Saw one not of his church

And couldn't bring himself to give

The fire his stick of birch.

The third one sat in tattered clothes

He gave his coat a hitch,

Why should his log be put to use

To warm the idle rich?

The rich man just sat back and thought

Of the wealth he had in store,

And how to keep what he had earned

From the lazy, shiftless poor.

The black man's face bespoke revenge

As the fire passed from his sight,

For all he saw in his stick of wood

Was a chance to spite the white.

And the last man of this forlorn group

Did naught except for gain,

Giving only to those who gave

Was how he played the game.

The logs held tight in death's stilled hands

Was proof of human sin,

They didn't die from the cold without,

They died from the cold within.







Atlanta: New Hope or Just Another Deception

By John Burl Smith



Whether from down South or up North, Atlanta, Georgia holds a particular mystique for black people because of its historic role in providing leaders. The Capitol of a state that was founded as a prison colony, Atlanta's growth into the largest metropolitan area in the Southeastern United States is steeped in exploitation and racism. Its population and economic emergence resulted from the influx of slaves purchased as field hands to work the huge cotton plantations that made Georgia a political and economic power during the antebellum era.

 

The heart of the "Old South," Georgia was the fifth state to secede from the United States and join the Confederacy. Wedded to its legacy of slavery, Georgia paid a heavy price in destruction, economic devastation and lives, rebelliously trying to hold on to a way of life built on the backs of enslaved black people. Once the Emancipation Proclamation was signed, millions of penniless former slaves joined the fight that broke the iron gripe of human bondage, but freedom would be slow in coming. Those slaves that did not join the Union Army were simply set loose to roam the countryside without any means of survival.

 

Following the Civil War, Atlanta's phoenix-like rise from the ashes of rebellion and destruction was fueled by hard currency pumped into the devastated city by Union occupation. Without livelihoods, the search for work and food brought thousands of slaves to Atlanta, hoping to find the new freedom the future offered. Instead, carpetbaggers brought a new kind of exploitation to Atlanta, trapping former slaves between their old masters and money grubbing politicians who gained power through black votes.

 

Abolitionists inspired by black leaders like Harriet Tubman, Frederick Douglass, David Walker and Sojourner Truth had led the fight to end slavery. However, the Freedmen's Bureau and church groups, such as The Sisters of the Blessed Sacrament founded by St. Katherine Drexler, at war's end began the formal task of preparing former slaves to move from dependency to caring for themselves in a hostile environment. Government promises of land evaporated for the vast majority of former slaves. Nevertheless, one harbinger of opportunity did emerge and Atlanta benefited immensely as several educational institutions were established. Atlanta became an educational mecca that drew knowledge hungry black students from all over America.


Atlanta became an incubator, nurturing leaders of the black community for half a century.  A bedrock of knowledge and opportunity, leaders, such as Booker T. Washington, W.E.B. Du Bois, Reverends Benjamin E. Mays, Martin Luther King, Sr. and Jr., along with many others matriculated in the premier black educational center in America.  Atlanta's white leaders, as during slavery, were avid racists, ruthlessly supporting segregation and brutally manning the color line. While the veil of segregation and lynching hung heavily over Atlanta, a tide of radicalism surged on its college campuses in the 1950s. New young student leaders flooded the city with messages about civil rights and black power demands for freedom, justice and equality.

 

Unable to stem the tide of civil rights and demands for black power, white leaders in Atlanta devised a scheme that allowed them to change leadership but keep the reins of power. Managing this transition, whites gave up administrative control but held onto Atlanta's purse strings. Whites kept control of the job market and used city jobs -- City Hall, School Board, Grady Hospital, police and fire - to reflect a pseudo-prosperity.

 

Maynard Jackson was selected as the first black mayor (1974). He was followed by Rev. Andrew Young in a kind of musical chairs until 2002. The novelty generated real pride among most black Atlantans, but whites fled the city for the suburbs, like rats leaving the Titanic.


Obviously today, it is clear the black community was deceived into believing it had gained real power though the switcheroo with Maynard Jackson. This game prevented the black community from developing its own leaders based on service and community ties. Instead, Atlanta's white leaders - namely the Chamber of Commerce and the Commerce Club - used Jackson's power base as the conduit to power for blacks. All other groups and personalities were shut out. Thus, the city of Atlanta got Bill Campbell and Shirley Franklin.

 

For nearly forty years Atlanta's Mayors have been picked from the Jackson elite. The lack of progress over that period is astonishingly clear, because very little has changed for the black community which supported Atlanta during and after white flight. Economically, whites still dominate the city, holding and controlling the higher paying jobs in the private sector. Moreover, the hope of desegregation has turned into re-segregation and black students are under siege from the "no tolerance school to prison pipeline."

 

Under the last two administrations, bringing back whites from the suburbs into midtown neighborhoods, while removing black residents, has been a top priority. Destroying public housing to clear the way for gentrification -- building condos and multi-use apartment complexes -- is a backdoor strategy white leaders hoped would enable them to take back the mayor's office. Relying on blacks' frustration over the lack of change and progress in reducing poverty, they hoped a liberal white woman could get black votes or reduce voter turnout.

 

Conversely, black voters remained committed to the hope that a true black leader will emerge who will keep his promises and work to create a better future. Consequently, last week (12-1-09) blacks rallied behind a young black man, Kasim Reed, in the mayoral runoff. His election more so than any since Maynard Jackson can be the change long-suffering blacks in Atlanta have hoped for. Although Reed received overwhelming support from blacks, he does not have to be a savior, just not disappoint by tailoring his administration to serve whites as Barack Obama, who has completely dismissed the needs of blacks. At this crucial juncture, if black leaders continue to make promises to get elected but serve the interest of whites once in office, black people will lose confidence in the only power they have left - the vote.

 

Atlanta has been an enigma -- possessing such potential but delivering such meager results -- yet the future does offer real promise. Slave descendants have witnessed whites turn back the clock on every gain blacks have made since emancipation. Whites have not been able to take away the vote, but they are working to make it irrelevant as a means of change for blacks. This would reduce blacks to their former status at the end of Reconstruction (1875). Then, black politicians did nothing to help poor and needy former slaves; they thought they were safe.

 




News You Use

Jobless Insurance Must Be Renewed

By James Parks



With 26 million people either unemployed or without full-time work, labor commissioners and officials from eight states joined with workers and union and civil rights leaders in calling for Congress to extend unemployment insurance and health care assistance for jobless workers, benefits that will expire for many in a few weeks.

 

A new study, "Keeping a First Line of Defense for the Jobless," predicts that 1 million workers will become ineligible for unemployment benefits in January 2010 unless Congress re-authorizes key provisions in the American Recovery and Reinvestment Act (ARRA). The report also shows that by March that number will swell to more than 3.2 million workers.

 

Speaking at a press conference, AFL-CIO Executive Vice President Arlene Holt Baker pointed out that jobless workers very quickly spend their benefits and the money quickly flows into and boosts the domestic economy. Every dollar the government provides for unemployment benefits is estimated to increase economic output by $1.63 to $2.15. Many economists agree, she said, that unemployment benefits provide one of the biggest "bangs for the buck" in terms of recovery spending.

 

Unemployment insurance is "the key safety net to help workers who have lost jobs through no fault of their own," Holt Baker said, adding: If Congress fails to re-authorize jobless benefits through 2010, foreclosures will happen at an accelerated pace, more families will fall off the financial cliff and more local businesses will lose revenues, leading to more job loss.

 

Workers of color are being pummeled by the recession. Unemployment for African Americans is now 15.6 percent and 12.7 percent among Latinos. Some 40 percent of African American and Latino workers will be unemployed or underemployed at some point in 2010.


Holt Baker pointed out that extending the lifeline for families hard hit by the recession is the first point of the AFL-CIO's five-part plan for immediate job creation. The other four points are: (1) Investing now to rebuild America's schools, roads, sewers, parks and energy infrastructure, accelerating the shift to clean renewable energy; (2) Increasing aid to state and local governments to maintain vital services and avoid unnecessary layoffs and tax increases; (3) Putting people back to work in good jobs with good labor protections doing work that needs to be done, while making sure not to replace existing jobs; and (3) Easing the credit crunch by using TARP funds to lend directly to small and medium-size businesses on Main Street.


The study was released by the National Employment Law Project (NELP), the Center for American Progress Action Fund and The Half in Ten Campaign.


The benefits provided by the American Recovery and Reinvestment Act include up to 73 weeks of federal unemployment benefit extensions and a subsidy covering 65 percent of the cost of COBRA premiums for unemployed workers.


Holt Baker sums it up this way: The consequences of not acting are unthinkable. We would see more lives put on hold, more homes lost and more communities threatened. The cost of not doing anything is far greater than the cost of continuing these essential benefits through the end of 2010. Extending unemployment benefits and COBRA coverage is the right thing to do - for the unemployed and for all of us.


To read the report, click on http://nelp.3cdn.net/83db1e0ad0574237c7_dzm6i6dl0.pdf.

 

 




Venue for an Artist

Poor Thinking at the Top

By Dean Baker



The United States has more than 15 million people unemployed. This is not their fault. It is the fault of really bad policy decisions by people who get paid more than almost all of the unemployed ever did or ever will. The failure of economic policymakers to recognize and attack an $8 trillion housing bubble led to the downturn. The continuing failure of economic policymakers to think creatively is why 15 million people remain unemployed.

 

The basic problem of unemployment is in fact a very simple one; we don't have enough demand in the economy. The collapse of bubbles in both residential and nonresidential construction led to a falloff in annual construction of close to $700 billion. The disappearance of more than $6 trillion in housing bubble wealth has forced consumers to pare consumption by approximately $500 billion a year. This creates a total shortfall in annual demand of $1.2 trillion.

 

In the face of inadequate demand, people lose their jobs. There is not enough demand for houses, cars, restaurant meals and thousands of other goods and services to keep everyone employed.

 

One way to fix the problem is to create more demand. That was the point of the stimulus package passed last February. This helped, but it was nowhere near big enough.

 

Subtracting out tax accounting measures (the alternative minimum tax fix) and spending to come in 2011 and later, the stimulus was about $300 billion for both 2009 and 2010. The federal stimulus is also being offset by approximately $150 billion in annual budget cuts at the state and local level. This leaves a net stimulus from the government sector of around $150 billion a year. This will not offset a loss in annual demand of $1.2 trillion; it's like trying to fill a swimming pool with five buckets of water.

 

In principle, the federal government could spend much money on stimulus until it has generated enough demand to get the unemployed back to work. For political reasons, this doesn't seem possible. The deficit fixation in Washington is preventing effective action, just as a balanced budget craze in the '30s forced Roosevelt to cutback the deficit in 1937, throwing the economy into another recession.


If politics makes it impossible to increase the demand for labor, an alternative way to create jobs is through decreasing the supply of labor. Specifically, employers can be given an incentive to cut the hours of their current workforce, while keeping their pay constant. This should then cause them to hire more workers. This is not an untested idea. Germany has used work sharing tax credits to keep its unemployment rate from rising in this downturn, even though its recession has been more severe than ours.

 

There are proposals for using this sort of work sharing being considered in both houses of Congress at the moment. Sen. Jack Reed (D-Rhode Island) and Rep. Rosa DeLauro have both introduced bills that would build upon work-share programs that already exist in 17 states. These programs allow employers to use unemployment insurance funds to keep workers employed at shorter hours, rather than laying them off and collecting unemployment benefits. These bills would provide additional funding to the existing programs so that they would be more widely used and help the other states establish work-share programs.


Rep. John Conyers has proposed a tax credit that would allow employers to reduce work time, while still maintaining their pay, and thereby creating the demand for more workers. This route has the benefit of allowing employers to try to innovate at their workplace, even if they are not currently planning layoffs, so it could have a much broader impact.


However, it is important to remember that nearly two million workers are still losing their job each month. The jobs' figure that is reported each month is a net figure. It shows how many jobs the economy has gained or loss after adding up all the workers hired or fired. If we reduce the gross monthly job loss figure by 10 percent, or 200,000 workers, it has the same impact on employment as adding 2.4 million jobs. This means that even though the Conyers bill would have a broader impact, even the Reed-DeLauro bills could lead to many more jobs being created.


It is important to realize that work sharing can also have a lasting impact on the structure of work. There have been major efforts by labor unions and women's organizations to make the workplace more family friendly through paid family leave, paid sick days and paid vacation. These work-share programs offer an opportunity to both quickly reduce unemployment and lay a basis for lasting change in this area. Companies can take advantage of these programs to experiment with paid sick days or family leave. If they work, they are likely to leave these policies in place even after the public funding is no longer there.


It is absolutely unacceptable to have 15 million people unemployed just because the people who call the shots are too dumb to figure out how to get them back to work. We got into this mess because the people on top didn't know what they were doing. We shouldn't have to stay here because they still can't figure things out.


In Germany, they are experiencing the recession through short workweeks and longer vacations, rather than mass unemployment. We should be doing the same here.


About Me: Baker is the Co-director of the Center for Economic and Policy Research. CEPR's Jobs Byte is published each month upon release of the Bureau of Labor Statistics' employment report. This article appeared in www.truthout.org.




 


DISHing It Up Hot!

On Rising Tide

By Dot



In 1992, after twelve (12) long years of Republican leadership, the country was ready for change. With the inauguration of a new administration, there was hope for better days ahead, especially among black Americans, who were "sick and tired" of Reagan-Bush "trickle down" economic policies. Indeed, there was a sense that Bill Clinton was the "first black" president. Former President Clinton openly spoke about conditions in the black community, even recalling for public consumption his experiences with racism while growing up in Arkansas. Clinton's racial rhetoric led many to believe he intended to work for change in this arena. And, indeed he did.


Under Clinton's leadership, a rising economic tide lifted all boats. Like whites, the black American median family income rose. Clinton employed black Americans in his administration and opened a dialogue on race. Unfortunately, the dialogue went nowhere and the economic bubble that lifted all boats burst, leaving black Americans worse off than before Clinton took the reins of leadership.


Indeed, rather than providing the change we desperately needed, Clinton moved to the right of center following the 1996 national elections and embraced the Republicans' "Contract with America," which changed, among other things, "welfare" as we knew it. That change has proven to be an unmitigated disaster, according to a new study, "Battered by the Storm," to be released on Monday by the Institute of Policy Studies. Co-authored by Georgetown Law Center Professor Peter Edelman and Barbara Ehrenreich, the study shows that welfare reform has left the US with a tattered safety net in the midst of the worst economic decline since the Great Depression. In fact, "America's 1996 experiment with welfare reform was based on reckless assumptions about the economy, as well as a callous disregard for the realities of sustaining a family. We need a massive emergency relief package not only to fund new jobs but to repair the grievous holes in our national safety net. Fifty million people need help now - not in three months or six months, but today." (Source: Why Welfare Reform Fails Its Recession Test, Washington Post, 12/6/09)

 

To pursue the policy suggestions contained in "Battered by the Storm" will require leadership that is not forthcoming from either the White House or Congress. Both executive and legislative branches of government seem more committed to warfare and the welfare of the financial sector than ensuring average Americans are fed, clothed and sheltered from the ravages of the current economic storm. Hence, there is rising disappointment with our current Democratic leadership.


Granted, none expected change to occur in an instant, following the swearing-in ceremony or even after a year or two in office. Yet, to keep hope alive, the leader must speak of change; jawboning is a very important tool that can lead to concrete changes.


No group of Americans is more supportive of President Barack Obama than the black community, which has been severely battered by this recession. The official black unemployment rate for November stood at 15.6%, down marginally .1% from October. The white unemployment rate was 9.3% down .2% from the previous month's 9.5%. We know the official unemployment rate bears little resemblance to reality. In some urban areas, the black unemployment rate exceeds twenty percent. The black community is in the throes of a "Great Depression."


In response to these difficult economic times, President Obama recently said, "The most important thing I can do for the African-American community is the same thing I can do for the American community, period, and that is get the economy going again and get people hiring again." (Source: President Obama says he won't put focus on "Blacks Troubles, USA Today, 12/3/09)


Evidently, like Clinton, who seemed to genuinely want to help black Americans, Obama, who seems to only want black votes, has bought into the flawed notion of a rising tide. The flaw is the assumption that all are able to take advantage of a rising tide. That is, everyone has a boat with oars and strong arms with which to row. Furthermore, no one's boat sits in an area where water no longer flows because of a manmade dam, also known as institutionalized racism.


We know from historic economic data that no such level economic playing field exists in America. Whether the economic tide is rising or falling, black Americans are experiencing conditions dictated by the pattern of employment, such that at any given time, blacks are twice as likely as their white counterparts to be unemployed. The resulting median black family income is roughly three-fifths that of whites, mimicking the 3/5 Compromise found in Article 1 Section 2 of the US Constitution. The black-white median family income gap closed slightly during the Clinton administration; it has since widened after eight years of Bush efforts to dismantle those socioeconomic gains.

 

If our current president does not understand black history and lead the way to dismantling the manmade dam of institutionalized racism that prevents water from flowing into black communities, the rising tide that lifts all boats will leave in its wake blacks mired in the economically disadvantaged state, relative to whites, in which they have existed since the founding fathers codified slavery. That is not the kind of change blacks who braved freezing temperatures to witness the inauguration of Barack Obama expected.


 



Disgruntled feels: Failure! A November 26, 2009 posting on AlterNet.com entitled "Bailed-Out AIG Forcing Poor to Choose Between Running Water and Food" by Yasha Levine chronicles the saga of poor folks in two impoverished southern Kentucky towns, where the unemployment rate is close to 30%. Because the state is so poor, half of those eligible to receive unemployment benefits in the towns of Middlesboro and Clinton do not receive them. These Kentucky towns have a per capita income that is little more than what workers earn in third-world Mexico. To add insult to injury, their residents are being fleeced into deeper poverty by the insurance giant, which controls water utilities across seventeen (17) states. According to Levine, "Bailed-out insurance villain AIG took over their water utility and instantly raised rates to squeeze an extra $1 million in profits out of its new customers, forcing some to consider choosing between running water and food." In addition to raising water rates, the residents of these towns are experiencing the same kind of late fee trickery endured by bailed-out banks' customers. According to Levine, the experience of these towns with privatized infrastructure provides a glimpse of post-privatized America. It is not a pretty picture. To allow large swaths of the nation's infrastructure to be controlled by for-profit private enterprises is tantamount to a failure of foresight and recipe for disaster.



Disgruntled says: On Wednesday, a group of Democrats with close ties to Wall Street forced a delay in consideration of the financial regulatory reform. Apparently, Wall Street's big banks do not like the idea of the Consumer Financial Protection Agency and want the provision removed from the regulatory reform measure. Naturally, Wall Street does not want a watchdog guarding the interests of American consumers; it just might prevent the wholesale fleecing that has gone on heretofore. Since Republicans are unlikely to vote for any banking reform legislation, without the full support of a significant majority of Democrats, financial regulatory reform is a non-starter. The financial sector, which has poured millions into Democratic and Republican campaign coffers, knows it can pull enough strings to shape any legislation that comes to the floor for a vote. When Congress fails to produce a Consumer Financial Protection Agency, if any financial regulatory measure comes up for a vote and/or passes, we will witness leadership for the banking and financial services industry in action. It is the kind of leadership one should expect from the best Congress money can buy.



Disgruntled wants to know: There is plenty of talk about an improving US economy. The unemployment rate fell in November, stocks are up and the holiday shopping numbers look good. It is a feel-good moment! However, not everyone is convinced the worst of the recession is behind us. Some economists tell a cautionary tale about the Great Depression, reminding us that a double dip is possible, nay likely, with employment slow to recover. But, this is the season of Jolly Old St. Nick and no one wants to consider the prospect of things getting worse in the New Year. Unfortunately, there are some signs that scream for attention, even as we celebrate this season. For instance, McDonald's, the fast food restaurant that benefited greatly at the beginning of the economic downturn because many of the people who eat out ditched pricier diners for McDonald's dollar menu fare, announced it suffered its second consecutive monthly decline in US sales in November. If one considers McDonald's an economic barometer, could its decline in fast food sales a harbinger of things to come?