Category: inequality

  • The median FTSE 100 CEO’s earnings for 2024 surpassed the median annual salary for a full-time worker in the UK by around 1pm on Thursday 4 January, according to calculations by the High Pay Centre think tank. It means bosses will have already earned over £34,000 this year.

    High Pay Centre: CEO earns £34k in four days

    The calculations are based on the High Pay Centre’s analysis of the most recent CEO pay disclosures published in companies’ annual reports, combined with government statistics showing pay levels across the UK economy.

    As with last year, the executive pay data suggests that CEOs will have to wait until the third working day of 2024 to surpass the annual pay of the median worker.

    Median FTSE 100 CEO pay (excluding pension) currently stands at £3.81m, 109 times the median full time worker’s pay of £34,963. This represents an 9.5% increase on median CEO pay levels as of March 2023, while the median worker’s pay has increased by 6%.

    The figures come against a backdrop of calls from leading figures in the city and big business for UK CEOs to be paid more. In December 2023 Legal and General Investment Management adjusted their executive pay guidelines to permit firms they invest in to offer more generous incentive payments, while earlier in the year the London Stock Exchange Chief Executive argued that low CEO pay levels create a risk to the UK economy.

    How other top earners compare

    The High Pay Centre used other publicly available data to estimate how long it would take other top earners to surpass the median UK worker’s full time earnings.

    Other FTSE 350 executives (comprised of FTSE 100 executives other than the CEO, plus CEOs and other executives of FTSE 250 companies), with a median pay of £1.32m, will need to work until 10 January for their pay to overtake the annual pay of the median UK worker. Moreover, a:

    • Partner at a ‘magic circle’ law firm, average pay £1.92m, would need to work until 8 January.
    • One at a ‘Big Four’ Accountancy firm, average pay £871k, would need to work until 16 January.
    • A top banker (so-called ‘material risk taker’) at one of the five FTSE 100 listed banks, average pay £807k, would need to work until 16 January.

    Everyone in the top 1% of full time UK earners, making at least £145k, will have overtaken the annual pay of the median full time worker by 29 March.

    ‘Massive inequality’

    High Pay Centre director Luke Hildyard said:

    Lobbyists for big business and the financial services industry spent much of 2023 arguing that top earners in Britain aren’t paid enough and that we are too concerned with gaps between the super-rich and everybody else. They think that economic success is created by a tiny number of people at the top and that everybody else has very little to contribute.

    When politicians listen to these misguided views, it’s unsurprising that we end up with massive inequality, and stagnating living standards for the majority of the population.

    Featured image via Wikimedia 

    By The Canary

    This post was originally published on Canary.

  • With the winter solstice bringing the longest night of the year, think tank the Joseph Rowntree Foundation (JRF) is warning that a chronic sleep deficit affecting people on low incomes could exacerbate existing and profound health inequalities affecting the UK. It is, of course, down to the so-called cost of living crisis.

    Cost of living: impacting people’s sleep

    The JRF has run a research project on poverty, which included looking at how deprivation affected people’s sleep. It found that:

    • 46% of respondents in low-income households said the cost of living crisis had a negative impact on their sleep, according to the JRF’s latest cost of living tracker.
    • Almost two-thirds (63%) of those who said they were going without the essentials such as food, clothing or toiletries between May and October 2023 reported that the cost of living crisis was negatively affecting their sleep.
    • In contrast, 18% of respondents in households not going without essentials said their sleep was negatively affected by cost-of-living pressures.

    Moreover, the latest findings from the JRF’s cost-of-living tracker raise fears of future health effects for the millions going without essentials such as food, cleaning products or the ability to keep warm.

    • Over three quarters of respondents who reported a negative impact on their mental (77%) and physical health (80%).
    • Respondents living in private or social rented housing (58% and 61%) were also almost twice as likely to have their sleep negatively affected than those who owned their homes outright (31%).

    Wide-reaching effects

    Grounded Voices, a research programme developed to better understand the day-to-day reality of people across the UK struggling to afford what they need, heard from a number of participants about the negative impact of the cost of living on their sleep.

    One participant said:

    If I’m worrying about money it will affect my sleep and how my day runs. It will affect how I take pride in myself, I might wake up in the morning and I’m not able to do like my makeup or my hair and things like that. It’s easy to get in a rut when you’re worried about money – everything else kind of is like outside noise.

    Another added:

    No question it has an impact on your mental health and your ability to process information and deal with other tasks, essentially because it dominates your thoughts.

    You can sometimes run away with these negative thoughts and it can have a huge impact on life and long-term effects on your mental health.

    ‘Health inequalities are a shameful fact of life in the UK’

    Maudie Johnson-Hunter, economist at the JRF who led on the research, said:

    The cost of living has been high for a sustained period but recent years have also seen rising destitution and a fall in the real value of the benefits that are supposed to protect us when we fall on hard times. We have all experienced a bad night’s sleep and found it harder to get through the day afterwards, but for many families cold homes, worries about keeping food on the table and the lack of a secure income makes this an all too common occurrence.

    Being on a low income already makes you more likely to experience worse mental and physical health than people who are comfortably off, and poor sleep is likely to compound this problem and make it harder to improve your health and that of your family.

    Health inequalities are a shameful fact of life in the UK but the cost of living is adding a potential timebomb for the nation’s health. Official figures show that women in the least deprived areas are living more than nineteen years longer in good health than women in the poorest. This is wrong. Our social security system needs to be strengthened so that everyone is able to at least afford the essentials.

    Lisa Artis, deputy CEO of the Sleep Charity, said:

    These results come as no surprise. We have long been witness to rising levels of sleep poverty and sleep problems due the cost-of-living crisis. Amidst the silent struggles of those with the lowest incomes, sleep problems echo the harsh disparities of our world, where sleep should be a right and not a luxury. In the quiet desperation of restless nights, we find a call to action, urging us to build a society where the basic human right to peaceful sleep knows no economic boundaries.

    Featured image via Rawpixel – Envato Elements

    By The Canary

    This post was originally published on Canary.

  • Around three-quarters of a million people in Wales (30%) are living in cold damp homes; exposed to the health complications that come from living in fuel poverty. 

    Wales: an acute problem with cold, damp homes

    The latest data from the Warm This Winter campaign reveals that the 30% of people in cold, damp homes in Wales is double that of the UK average – which is 16% of adults or 8.3 million people in total. 

    As well as the most vulnerable being more affected – such as those aged over 75, under six, or with a pre-existing health condition or disability – there are stark differences based on the type of energy bill households have. 

    Across the whole of the UK, a third of smart meter customers who have a prepayment meter (PPM) setting (32%) say they live in a cold damp home with 27% of those on traditional PPMs saying the same. Almost a quarter (22%) of standard credit customers are in cold damp homes, yet just 11% of direct debit customers live in such conditions. 

    The NHS warns that people with damp and mould in their homes are more likely to have respiratory problems, respiratory infections, allergies, or asthma. Damp and mould can also affect the immune system while living in such conditions can also increase the risk of heart disease, heart attacks or strokes. 

    Cold homes can cause and worsen respiratory conditions, cardiovascular diseases, poor mental health, dementia and hypothermia as well as cause and slow recovery from injury. 

    Get involved: sign a petition or join a campaign

    Petitions with over 800,000 signatures have been handed into the prime minister calling for more action to bring down bills now and end energy debt to help end the cold damp homes crisis now facing the country – especially Wales. These include:

    • Over 88,000 signatures here asking for support on energy bills this Winter.
    • Debt Justice – Over 17,000 signatures demanding the government urgently act by bringing down bills and help families get out of debt. You can sign that here.
    • Fuel Poverty Action – over 660,000 signatures demanding #EnergyForAll – Everyone has a right to the energy needed for heating, cooking, and light. That petition is here.
    • Warm This Winter – Over 41,000 signatures here demanding the Treasury introduce an Emergency Energy Tariff to keep people warm this winter.

    You can also get involved with campaign group Fuel Poverty Action. It has recently run a series of Warm Up protests across the UK – highlighting the appalling conditions people are living in, due to the government and energy companies’ unwillingness to control energy costs.

    Fiona Waters, spokesperson for the Warm This Winter campaign, commented:

    It is no wonder that the public are now signing petitions in droves and pointing the finger of blame for the crisis on Ministers who have failed to act to protect the public from this crisis. 

    Instead of help in the form of an Emergency Energy Tariff for vulnerable households and a Help To Repay scheme for those in energy debt, the public will instead be faced with increasing energy bills on 1 January 2024.

    Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

    The UK Government needs to get a grip on the cold damp homes crisis now facing the country, with people spending the festive period in Dickensian conditions and unable to stay warm this winter.

    Without immediate action, the cost of this crisis will be felt by increased demand on the already overstretched NHS. 

    Ultimately, a failure to protect people from living in cold damp homes will cost lives.

    Cold, damp homes: a risk to people’s health

    Dr Isobel Braithwaite said: 

    This data shows a shockingly high prevalence of cold and damp homes in the UK, which poses a grave risk to the public’s health. These conditions are severely harming the health of the most vulnerable in society: from young children; people with heart and lung conditions; to older people, and this situation is unconscionable in 2023. 

    These impacts are being driven by political choices, and action is urgently needed to address the causes of this health crisis, both to protect vulnerable households with the campaign’s proposed emergency measures, as well as longer-term action with home retrofit schemes.

    Kay Ballard from Debt Justice who was part of the petition hand in said:

    Lack of government support and energy company profiteering means that this Christmas I have a choice between going into debt or living in a cold damp home. It is an impossible choice and only government action can solve the crisis.

    Stuart Bretherton from Fuel Poverty Action said: 

    Over 660,000 people have endorsed our demand to ensure everyone’s essential energy needs are met, it’s not radical. There’s more than enough money in energy firm profits and subsidies to guarantee an adequate level of Energy For All to keep everyone warm and safe.

    Featured image via KYNASTUDIO – Envato Elements

    By The Canary

    This post was originally published on Canary.

  • Campaign groups Fuel Poverty Action, Unite Community, and their allies held nationwide protests this weekend, carrying out ‘Warm Ups’ to demand action on fuel poverty. People occupied British Gas offices, protested outside Scottish Power, and engaged their local communities.

    However, not everyone was receptive to the groups’ demands. Security at a South London shopping centre removed activists, simply for ‘warming up’ – albeit with a rather large banner reading ‘Cold Homes Kill’.

    Fuel Poverty Action: we need ‘energy for all’

    Fuel Poverty Action has carried out Warm Ups for over a decade. Activists enter buildings or public spaces in order to warm up as a group. They do this on the grounds of being unable to do so at home due to unaffordable energy prices and the poor conditions of housing. Of course, Fuel Poverty Action and others are also making points about the cost of energy and how it leaves countless poor people struggling.

    The actions are in support of the Energy For All campaign. Launched by Fuel Poverty Action in 2022, it demands that every household is guaranteed enough energy for safe and adequate levels of heating, lighting, cooking as well as protecting additional needs like medical and mobility aids. It would be paid for by ending fossil fuel subsidies, redistributing energy company profits, and higher tariffs on household energy use beyond necessities.

    Unite Community launched the Unite 4 Energy For All campaign in November to support the demand, in collaboration with Unite the Union’s campaign to nationalise energy.

    So, between Friday 1 and Sunday 3 December groups organised over 30 events as far afield as Southend-on-Sea, Portsmouth, Gateshead, and the Isle of Arran – raising awareness of the scourge of fuel poverty and the government and energy companies’ willful inaction.

    Warming Up energy companies

    On 1 December a Warm Up took place at Scottish Power HQ in Glasgow for the second winter running. Participants condemned warrants granted to the energy giant a month ago to forcibly enter the homes of families with newborn babies and install prepayment meters:

    People lined up with their fists in the air outside Scottish Power's head office

    Meanwhile, protestors entered and occupied a British Gas office in Cardiff for 30 minutes, the amount of time they say it takes the company to make half a million pounds in profit:

    People inside a British Gas office with banners that read "cost of living crisis, energy crisis, climate crisis, same crisis" and "warm homes for all"

    Then, on 2 December Fuel Poverty Action ‘Warmed Up’ at OVO Energy’s HQ in Bristol. They bedded down with blankets, sleeping bags, and hot water bottles to symbolise millions of people struggling to keep warm this winter:

    People sat on the floor outside OVO Energy's head office. They are wrapped in blankets and sleeping bags and have signs that read "energy for all"

    Further Warm Ups took place including at the Arndale Centre in Manchester and Kirkgate Market in Leeds:

    Protesters outside the Arndale Shopping Centre in Manchester with a banner that reads "Unite 4 Energy For All"

    Stuart Bretherton from Fuel Poverty Action’s Energy For All campaign said:

    The energy system, with its high standing charges, forced imposition of prepayment meters and other inequities, literally punishes people for being poor. Energy starvation this winter means that lives will be lost if we don’t see concrete action from this Government. People are ‘warming up’ to demand our human right to energy is respected and delivered. There’s plenty of money in energy company profits to ensure access to clean and affordable energy for all.

    However, one Warm Up in South London on 2 December was too much for a shopping centre’s security team.

    Bromley: warming up in the freezing cold

    In the Glades shopping centre in Bromley, members of Bromley and Croydon Unite Community, South East London People’s Assembly, and campaign group the Chronic Collaboration staged a protest and community engagement session. As well as occupying a space in the ground floor, they dropped a large banner off the first floor which read “Cold Homes Kill” – attracting a lot of attention from shoppers:

    However, around 10 minutes into the group’s action, and security were immediately getting involved – telling activists that the Glades was private property, and they couldn’t protest or speak to shoppers about fuel poverty there:

    Undeterred, and somewhat ironically, Unite Community, South East London People’s Assembly, and the Chronic Collaboration took their Warm Up protest outside into the cold. So, instead of a shopping centre they commandeered Bromley’s Christmas tree:

    A banner reading "unite 4 energy for all" attached to the bottom of a Christmas tree

    The groups engaged with shoppers over the Energy For All campaign – with hundreds of people taking leaflets, and dozens signing letters to the government calling for it to act over fuel poverty:

    A street scene with a woman on the left handing a couple a banner while someone films them all

    ‘We will be back’

    Paula Peters is chair of Bromley and Croydon Unite Community. She told the Canary:

    During the occupation of the Glades, security came along and told us it was private property and we were to leave. The action was peaceful and we were speaking to shoppers who were taking leaflets and signing Unite fuel poverty petition cards.

    We were also warming up – as many of us activists included disabled people on pre-payment meters who simply can’t afford to heat their homes.

    Security didn’t care about that, they chucked us into the freezing conditions outside.

    The resolve of the activists yesterday was determined. We will be back for a future protest action very soon to highlight fuel poverty. While people are dying, suffering as a result of corporate greed we will keep campaigning.

    Paula Peters being interviewed in front of a camera

    ‘Stand up and fight’

    Nicola Jeffery is the founder of the Chronic Collaboration – a chronically ill and disabled peoples’ rights group. She told the Canary:

    Fuel poverty is a growing problem in the UK. Yes that’s right, the UK – which is also one of the richest nations in the world. Over the last 13 years Tory governments have forced on its most vulnerable people continuous cuts under a policy of austerity. This has had a serious impact on chronically ill and disabled people, including affecting their health.

    As a result of rising bills and forced pre-payment meters, many are unable to properly heat their homes causing them to be in fuel poverty.

    Many people who struggle to heat their homes look for support locally. In some areas there are ‘warm banks’ available for people to use. Unfortunately, they are very few and far between and if you are chronically ill or disabled this isn’t always accessible or an option, leaving many struggling alone.

    We have ourselves experienced fuel poverty. As a undiagnosed chronically ill and disabled single mother, I was forced to live for nearly two years in receipt of just child benefit. This meant that I literally had £20 a week to live on during that time, £10 on gas and £10 on electric. I was lucky that I could rely on my friends and family for food and support. Others are not so lucky and need so much more support then they are getting.

    We at the Chronic Collaboration fully support Fuel Poverty Action and Unite Community’s collective effort. The government should act on fuel poverty – but it won’t. So, it’s up to all of us to stand up and fight.

    Nicola Jeffery being interviewed in front of a camera

    ‘Fuel poverty is costing human lives’

    As Peters summed up:

    The Warm Up action in Bromley and the banner drop in the Glades shopping centre were of vital importance to stress two things.

    Firstly, the tragic impact of skyrocketing energy bills in a cost of living crisis, meaning millions of people are not able to switch the heating on, which is impacting on people’s health. Tragically, every winter fuel poverty is costing human lives.

    Cold homes are killing people, and while people were Christmas Shopping in Bromley we wanted them to see that – hence the banner drop in the Glades.

    Secondly, the leader of Bromley Council and Tory councillors in 2022 flatly refused to provide the funding for charities and social enterprises to have warm hubs in council wards in Bromley; the council leader said he wouldn’t waste the money on gas and electric, and told residents to warm up in Bromley libraries instead.

    For many residents the nearest library is 1.5 miles away and only open 2-3 days a week due to Tory cuts. Their callous attitude shows what they think of residents – they simply do not care if people are cold and hungry.

    This attitude from Bromley council is also entrenched across much of the political class in the rest of the UK. So, governments and councils will continue to abandon people. However, groups like Fuel Poverty Action, Unite Community, and the Chronic Collaboration will not stand idly by. More actions are expected throughout the rest of the winter.

    Featured image via the Canary, and additional images via the Canary, Bromley and Croydon Unite Community, and Fuel Poverty Action, and video via the Chronic Collaboration

    By Steve Topple

    This post was originally published on Canary.

  • A protest over fuel poverty is set to take place in one of south London’s highest-profile shopping centres, the Glades. It’s of little wonder activists are organising it, though – given Tory-run Bromley borough council has refused point blank to help people this winter.

    Warm Ups: taking direct action against fuel poverty

    There’s going to be a protest at Bromley’s The Glades shopping centre on Saturday 2 December:

    Fuel Poverty Action and its allies will be holding ‘Warm Up’ protests across the country on Friday 1 and 2 December, working with trade unions, tenants groups, and the climate movement. The actions are in support of the campaign group’s ‘Energy For All’ campaign. It’s demanding that every UK household is guaranteed the essential energy needed for life and dignity – with the hope of eradicating fuel poverty in the process.

    Warm Ups involve entering and occupying spaces to keep warm together due to unaffordable bills at home. Last winter, the group coordinated two-days of national warm ups in December and January. These helped to win the temporary ban on forced prepayment meters.

    Past warm ups have been carried out in Westminster, Holyrood, energy company HQs, banks, libraries, and department stores. Training and guides to organising warm ups can be found on the group’s website.

    However, in one London borough activists will be warming up against a Tory-run council that is refusing to support people.

    Bromley: Tories letting people freeze

    In Bromley, opposition councillors tried to get the Tory-led council to give support to people this winter. as My London reported:

    A motion was raised to create a £400,000 fund to support charities operating “warm banks” in the borough at a Bromley Council meeting on Monday (October 10). If approved, 100 warm centres could have applied for heating bill grants of up to £2,500 each under the plans.

    The plans would have seen charities and social enterprises being able to set up four to five warm banks in each of Bromley’s wards. However, the Tories on the council effectively poured scorn on the idea. As My London reported:

    Councillor Colin Smith, leader of Bromley Council, said five centres per ward would be a “waste of electricity” and “waste of gas” and one to two hubs would be more preferable…

    It was suggested that residents could keep warm in libraries which are within a mile and a half of 95per cent of residents. Cllr Smith said: “The council’s 15-strong fleet of libraries will be acting as warm places over the course of the winter,” before adding that they would be a “good place to start”.

    The Tories’ claimed the council didn’t have enough money to fund warm banks, either. However, the £400,000 costs for the warm banks represents just 0.16% of Bromley council’s entire net budget for 2023/24. Moreover, the idea that poor people should go and sit in a library all day to keep warm is insulting. Plus, with libraries specifically staff may be going on strike – because the Tories outsourced the running of them to a separate company that is not paying staff properly.

    So, activists will be holding Bromley council to account – as well as the UK government and energy companies, both of whom have overseen spiralling costs to consumers while the corporations rake in huge profits:

    ‘Cold homes are killing people’

    Paula Peters is a disability rights activist and member of both Disabled People Against Cuts (DPAC) and Bromley and Croydon Unite Community. She told the Canary:

    Ofgem are rising energy prices by 5.1% in January 2024, with millions unable to heat or eat this is corporate greed causing further misery. Older people are using their bus passes to ride the buses all day and keep warm as unable to heat their homes.

    48% of disabled people in the UK are in energy debt. Rationing powering of equipment, turning off peg feeding, ventilators and turning off the fridge to keep insulin cold putting their lives at risk.

    Our message on Saturday is this cold homes are killing people.

    As part of the fuel poverty day of actions on 1 and 2 December 2023 across the UK, Bromley and Croydon Unite Community Branch supported by South East London People’s Assembly and allies are having a public warm up in the Glades shopping centre Bromley from 11am to 1pm on 2 December 2023, to highlight fuel poverty and that millions of people are having to use shopping Centres, libraries, town halls, and public transport to warm up.

    Please join us on Saturday in Bromley.

    If you live in Bromley, get yourself down to the Glades at 11am on 2 December – and send a message to the Tories in both the council and Westminster.

    Featured image via Paula Peters

    By Steve Topple

    This post was originally published on Canary.

  • The richest 1% of the global population produced 16% of the world’s carbon dioxide in 2019, generating as much planet-warming pollution as the poorest two-thirds of humanity, according to a report released Monday by Oxfam International. Climate Equality: A Planet for the 99% describes the fossil fuel-driven climate emergency and runaway inequality as “twin crises” that are leaving those least…

    Source

    This post was originally published on Latest – Truthout.

  • Fuel Poverty Action is planning ‘Warm Up’ protests across the country on Friday 1 and Saturday 2 December, working with trade unions, tenants groups, and the climate movement. The actions are in support of the campaign group’s ‘Energy For All’ campaign. It’s demanding that every UK household is guaranteed the essential energy needed for life and dignity – with the hope of eradicating fuel poverty in the process.

    Warm Ups: taking direct action against fuel poverty

    Fuel Poverty Action has carried out warm ups for over a decade but is calling for its biggest mobilisation yet, as households are crippled by energy debt this winter.

    In Autumn 2023, Fuel Poverty Action announced plans for allies and supporters to ‘#WarmUp This Winter’. The grassroots group is calling for nationwide Warm Up protests on 1 and 2 December to demand energy bills are brought down for good.

    Warm Ups involve entering and occupying spaces to keep warm together due to unaffordable bills at home. Last winter, the group coordinated two-days of national warm ups in December and January. These helped to win the temporary ban on forced prepayment meters.

    Past warm ups have been carried out in Westminster, Holyrood, energy company HQs, banks, libraries, and department stores. Training and guides to organising warm ups can be found on the group’s website.

    Energy bills have still doubled

    Stuart Bretherton, Fuel Poverty Action’s Energy For All campaign coordinator said:

    Last winter, energy bills were at the forefront of headlines and people’s minds. But while the news cycle has moved on, energy bills are still double what we paid two years ago and over 5 million households were in energy debt before this winter even began. We’re not accepting mass poverty as the new norm. The UK Government is passing the buck when there’s concrete policies they can adopt today to reduce poverty and save lives, so direct action is the obvious step for us to push them to do so.

    The protests will put immediate demands to the government to protect lives this winter by making the ban on forced prepayment meters permanent and ditching regressive standing charges, which bear the largest costs for poorer households. It follows Fuel Poverty Action’s protest outside the Department for Energy Security over the return of energy companies being able to force people to have prepayment meters. You can read the Canary‘s report on that protest here:

    Protesters holding a banner that says "energy for all" and a placard that says the same outside a big wooden door

    Along with longer term measures like upgrading poor quality housing and heating systems, and ultimately guaranteeing every household enough energy to ensure essentials needs are covered, as outlined by the Energy For All campaign.

    An ‘unjust’ system

    Holly Donovan, a Unite Community member and spokesperson for the national Unite For Energy For All campaign said:

    Energy For All is a much needed reform to our energy pricing system. Under our current system those who use more energy pay less per unit than those of us who are tightening our belts and cutting down on energy use. This is clearly upside down, unjust and a very simple thing the government could address to help households in the greatest need.

    The Energy For All campaign launched in 2022 with a petition signed by over 660,000 members of the public. Fuel Poverty Action followed this up with a manifesto endorsed so far by almost 250 organisations, community groups, businesses, and elected officials.

    The proposal for energy company profits and subsidies to be redirected, and higher tariffs on luxury household energy use, in order to supply every home with enough energy for adequate levels of heating, lighting, cooking, and so on goes far beyond what other campaigns and parties called for last winter.

    Uniting against fuel poverty

    But in less than two years, the idea pioneered by a small movement is being actively campaigned for by groups ranging from Unite Community to 350.org. Through this mobilisation, Fuel Poverty Action hopes to unite allies of all different backgrounds, experiences and causes.

    Lucia Harrington, Fuel Poverty Action’s lead organiser said:

    Energy For All encompasses so many of the issues we face today and that’s why we’ve received such wide-ranging support from trade unions, tenants groups, the climate movement and MPs. It’s not a choice between meeting people’s needs and saving the planet, we can do both by reversing a system that puts profit first and punishes people for being poor. We need actions across the country this winter to drag this government into fulfilling its duties to prevent deaths from cold and damp this winter.

    If you’d like to organise a local Warm Up, email e4a(at)fuelpovertyaction.org.uk or visit the dedicated website here.

    Featured image via Fuel Poverty Action and additional image via the Canary

    By The Canary

    This post was originally published on Canary.

  • Inflation has fallen to 4.6% – down from 6.7% in September, official figures now show. However, a think tank has effectively warned this means nothing in the real world. Meanwhile, the government is also reportedly considering cutting people’s benefits in real-terms now inflation has fallen.

    Inflation: food prices UP 30% in 2.5 years

    With today’s news that inflation is at 4.6%, the Joseph Rowntree Foundation’s (JRF’s) latest cost of living tracker found a third of all families on a low income – 3.8m households – had to sell something they owned just to cope with rising costs. This is virtually unchanged since May 2023 when inflation was almost double what it is today – 8.7%. Meanwhile, at the same time the government is considering a real-terms cut to benefits.

    In October 2023, half of all low-income households – 5.9m – reduced meals, skipped meals altogether, or just went hungry – the highest since the JRF began its surveys. A quarter of low-income households said they had borrowed money just to buy food.

    This is shocking but not surprising. Using today’s ONS data, JRF calculates overall inflation is 20% higher than in April 2021. Food prices are around 30% higher and energy prices are still up by around two thirds compared to then. Benefits are only 13% higher.

    CPI is the change in prices compared to one year ago and today’s fall is mostly the result of the last big energy price hike being 13, rather than 12, months prior to the most recent data.

    ‘Indefensible’

    Responding to today’s inflation figures, JRF chief analyst Peter Matejic said:

    The people who had to take on debt in order to eat, or the people who took something they cherished to a pawnbroker just to buy warm clothes for their children, are not feeling the financial security Rishi Sunak promises. They live in a world where their income, in many cases, simply doesn’t cover costs while the Government talks about cutting their support further.

    Ministers claim that getting inflation down will make everyone’s money go further but, even after this fall, prices are still far higher than they were last year, rising at more than twice the Bank of England’s target rate. People are still having to go to great lengths just to afford everyday essentials and often are going without.

    It’s indefensible that the Government is reportedly considering cutting the benefits of struggling families worried for their future, with news stories suggesting it plans to use today’s figures, instead of last month’s, to fiddle the figures and hide a big cut.

    In the upcoming Autumn Statement benefits must be increased in line with inflation and Local Housing Allowance (LHA) must be unfrozen to support private renters with their housing costs. The Chancellor should also take steps to ensure that Universal Credit, at a minimum, always enables people to afford the essentials.

    So, what is the government considering doing about benefits?

    A real-terms benefit cut looms

    Bloomberg reported that:

    The UK government is considering using October’s inflation number for next year’s rise in working-age benefits, two people familiar with official thinking said, a move that would hit low-income families.

    Ministers are waiting to see Wednesday’s inflation data before deciding how much to lift support for the roughly nine million households on working-age benefits from April. Convention is that the September data is used but the government has refused to make that commitment. Using October’s inflation rate – predicted to come in about 2 percentage points below September’s – would save roughly £2 billion… a year.

    This would actually be a real-terms cut – as economics professor Jonathan Portes pointed out:

    All eyes will be on chancellor Jeremy Hunt’s Autumn Statement on Wednesday 22 November, where he will reveal whether or not his government will cut people’s benefits.

    Feature image via the Canary

    By Steve Topple

    This post was originally published on Canary.

  • Transport costs are keeping five million people (8% of the UK population) below the poverty line, a think tank has found using new research.

    Transport poverty: a new method of measuring this

    The figures come from a first-of-its-kind model (see notes) for tracking transport poverty, developed by the Social Market Foundation (SMF). The SMF’s metric found that out of a total of 13 million individuals in poverty today, relieving them of these costs would lift five million (8% of the British population) above the poverty line.

    The SMF defines transport poverty as occurring when households spend so much on private and public transport that it pushes them below the poverty line.

    According to the SMF, cars are the most expensive mode of getting around, costing the median British household over £5,650 per year in upfront costs, maintenance, fuel, and additional fees. Yet despite over £100bn spent on cuts and freezes to fuel duty have made little impact on transport poverty, the SMF finds.

    Barely changing anything

    The total impact of those policies over the past dozen years has been to cut transport poverty by just 0.3 percentage points according to its model. Although driving is expensive, less than a fifth of that expense is caused by government taxes and charges, thus even a drastic cut to fuel duty will not alleviate families’ transport poverty the SMF notes.

    Far from persecuting motorists, the SMF suggests that the government has coddled drivers, inadvertently hurting them with policies that end up encouraging car use arguing that the bigger issue is a lack of investment in alternatives to driving, keeping people reliant on costly cars.

    For every 10% increase in public transport journey relative to motoring in England, the average household pays over £400 more for transport each year – as they are forced to use the most expensive mode of transport (cars) in order to reach key services.

    Rising prices, increased poverty

    Unlike ‘fuel poverty’, which is a well-established concept and is used by national and devolved governments to shape their policies, there is no robust equivalent for understanding the causes, locations, and depth of poverty due to transportation costs. Despite the high toll these take on household budgets, government has not yet introduced a metric for it, which could be used to help policymakers better target policies, the SMF argues.

    The findings come against a backdrop of rising costs and over a decade of cuts to public transport. Latest ONS figures show a rise in bus and coach costs by 6.7% over the last year. Also last year, almost 10% of bus networks in the UK were cut, and some towns have lost entire bus access.

    The regions that rely most heavily on cars and have suffered the worst public transport tend to have the highest transport poverty rates. Its analysis found that the North West has the most individuals in transport poverty (800,000), though a higher proportion of people in the North East (12.5%) and West Midlands (11.9%) are affected. This compares to just 4% in London. (See notes)

    More to be done

    Most recently, the Government has announced that bus services in parts of England will get a one-time £150 million boost by re-routing funds from the scrapped Manchester HS2 leg. It comes with a promise to address transport issues that “matter most to people”, in the prime minister’s words.

    Whilst this funding is welcome, the SMF urges the Government to use its transport poverty metric to ensure funding is directed where it is most needed and can have the greatest positive impact on transport poverty.

    In the long term, if the Government is to eliminate transport poverty the SMF recommends the following measures:

    • The Department for Transport should begin tracking transport poverty, using the metric the SMF  has delivered, and determine a cost ceiling beyond which households are considered in need of support with transport costs.
    • Policymakers should allow fuel duty rates to rise or replace fuel duty with road pricing to provide a stable source of funding (See notes for details of SMF’s preferred road pricing system)
    • Direct new funding and devolve decision making at the local level, to deliver on both short-term (bus networks) and long-term (passenger rail) plans of increasing in public transport infrastructure.
    • Consider and introduce policies – like direct tax subsidy or social leasing – to increase access for electric vehicles by reducing the upfront costs

    ‘Quantifying the problem’, finally

    Gideon Salutin, Researcher at Social Market Foundation, said:

    Transport is the single greatest household expense for rural homes and the second biggest for urban ones. But we still don’t understand those struggling to pay for it the way we understand other forms of poverty like housing and heating. Understanding and tracking transport poverty is a long overdue endeavour.

    Fuel duty gets all the headlines, especially now that so many policymakers have convinced themselves that they have to defend motorists from fictional attacks. Yet it is far from the best tool at their disposal if they really want to help the hard pressed. Our research shows that transport poverty can be rigorously tracked, and therefore can be alleviated – but only by investing in public transport and making alternative private transport like electric vehicles cheaper.

    Silviya Barrett, from national charity Campaign for Better Transport, said:

    We’ve known for a long time that a lack of good, affordable public transport is forcing people into expensive car ownership which puts a huge strain on household budgets, so it’s good to see this research quantifying the problem. We support the report’s conclusion that government investment in public transport is more beneficial to improving people’s life chances, helping households with the cost of living and levelling up the economy than lowering the cost of driving.

    You can read the SMF’s full report, Getting a measure of Transport Poverty, here.

    Featured image via pxfuel

    By The Canary

  • Campaign group Fuel Poverty Action held a protest outside the Department for Energy Security and Net Zero (DfES) on Wednesday 8 November. Clearly, the DfES was rattled – as security ended up locking all the doors. However, Fuel Poverty Action’s protest still highlighted a ongoing scandal: energy suppliers forcing people onto extortionate prepayment meters.

    Prepayment meters: an ongoing scandal

    As the Canary reported back in February, energy companies in the UK could obtain court warrants that allowed them to enter people’s homes and fit the pay-as-you-go (‘prepayment’) meters. This was when customers had fallen into arrears with their energy bills. They were then at risk of companies cutting their gas supply off if they fail to top them up.

    However, an undercover investigation by the Times newspaper looked into this. It found that contractors working for British Gas sent debt collectors to “break into” homes and “force-fit” meters. This prompted uproar from the public and politicians – even though the practice had actually been going on since 1954.

    So, the energy regulator Ofgem and courts stopped energy suppliers from forcing customers to have prepayment meters. However, as the Morning Star reported:

    Ofgem introduced a self-regulating code of practice for energy providers enabling them to resume forced break-ins and installations.

    Scottish Power has now reportedly secured warrants and broken into the homes of mothers with young children to force them onto prepay meters using the code. But the firm claims it was unaware of the customers’ circumstances and would not have installed a meter forcibly had this become clear.

    Now, the government is considering lifting the current pseudo-ban – even thought energy companies are already forcing prepayment meters upon people, regardless. So, Fuel Poverty Action went to the front door of the DfES to make it loud and clear this would be unacceptable.

    Fuel Poverty Action’s protest

    The group delivered a giant (and impressively-created) prepayment meter to the DfES – highlighting the scale of the problem:

    There were banners and speakers – with representatives from Greenpeace UK and 350 org also supporting the action:

    Protesters holding a banner that says "energy for all" and a placard that says the same outside a big wooden door

    You can watch a video round up, with interviews, of Fuel Poverty Action’s protest below:

    Prepayment meters, and energy companies forcing them onto people, are a huge problem. In 2022 alone:

    • Energy companies forced 600,000 people to have meters.
    • 3.2 million people ran out of gas or electric at least once.
    • Older, chronically ill, disabled, and low-income people were targeted.

    Campaign group the Chronic Collaboration was supporting Fuel Poverty Action. It highlighted on X some of the major issues with prepayment meters for chronically ill and disabled people. It noted that:

    One million households on extortionate & poverty-inducing prepayment meters have a chronically ill and/or disabled person living in them

    Plus:

    Last year, around 130,000 homes with a chronically ill and/or disabled person in them were running out of gas and/or electric at least ONCE A WEEK due to prepayment meters.

    And the Chronic Collaboration also noted that 24,000 prepayment homes with a chronically ill and/or disabled person in them went without power for two days or more. Overall, the group said:

    Paula Peters from campaign group Disabled People Against Cuts (DPAC) was also at the protest. She noted how Rishi Sunak reportedly splashed out huge sums of money on energy to heat his private swimming pool – while poor older people are forced to sit on buses or go to warm hubs all day just to keep themselves heated in winter:

    Fuel Poverty Action wants the government to ban energy companies from forcing people to have prepayment meters. It is also calling on the government to ban energy company standing charges – which cost us all £25 a month before we even use any gas or electric.

    ‘Energy For All’ this winter

    Overall, the DfES clearly felt rattled by Fuel Poverty Action’s protest – as security ended up locking the doors to the building:

    The protest was an effective display of the issues surrounding prepayment meters. However, this is just the start of Fuel Poverty Action’s campaigning this winter. As well as its ongoing #EnergyForAll campaign, it is holding two days of nationwide actions on 1-2 December. Called ‘Warm Ups‘, Fuel Poverty Action says these local events:

    are a way to highlight fuel poverty and bring about change. They are based on the principle that if we can’t afford to heat our own homes, we have a right to go into any public space and keep warm there – and talk to passers-by, hold a speak-out, or a discussion, or a party! Or just put on woolly hats and gather outdoors to speak our minds!

    The group will be releasing more details on these soon. For now, though, Fuel Poverty Action and its allies sent a clear message to the government and the DfES over prepayment meters: that they won’t be allowing energy companies to continue to force them onto customers without a fight.

    Featured image and additional images via the Canary

    By Steve Topple

    This post was originally published on Canary.

  • By Chris McGreal

    See original post here.

    The Nobel prize winner and author of new book Economics in America argues economists must get back to serving society.

    When Angus Deaton arrived in the US four decades ago, he imagined he had something to say about economic inequality and how to tackle it that Americans might want to hear. Instead, the great economic minds of the time told him to shut up.

    The Scottish-born winner of the 2015 Nobel prize for economics struggled at first to understand why there was so little interest in a subject most European economists regarded as a central concern of post-war policies to reduce poverty and build more equitable societies.

    But, as Deaton describes in his unsparing new book, Economics in America: An Immigrant Economist Explores the Land of Inequality, he soon realized he had run headlong into the libertarian monetarists of the Chicago School of Economics, and they were driving US policy.

    “There is this very strong libertarian belief that inequality is not a proper area of study for economists,” Deaton said. “Even if you were to worry about inequality, it would be best if you just kept quiet and lived with it.”

    Deaton persevered, building a reputation as a contrarian for scrutinising the prevailing orthodoxy that an unfettered free market would deliver greater economic equality and individual liberty, and that government intervention and regulation would undermine both.

    The result, said Deaton, is a predatory brand of capitalism in the US that enriches corporations and the wealthy at the expense of working people, deepens inequality of wealth and opportunity, and – although many Americans will deny it – is fuelling the rise of a class system. As he picks the system apart, Deaton zeros in on the evident absurdities of claims about the purity of the market.

    “If you need an ambulance, you are not in the best position to find the best service or to bargain over prices; instead, you are helpless and the perfect victim for a predator,” he writes.

    The results are clear. Real wages have stagnated since 1980 while productivity has more than doubled and the rich cream off the profits. The top 10% of US families now own 76% of wealth. The bottom 50% own just 1%.

    The time has come, Deaton argues, for economists to get back to serving society.

    “The discipline has become unmoored from its proper basis, which is the study of human welfare,” he writes.

    At Cambridge University in the 1960s, Deaton was steeped in the Keynesian economics of government intervention and a regulated market. In 1983 he took up a teaching post at Princeton University in New Jersey. Ronald Reagan was in the White House and the Chicago school held sway over policy in both the US and Margaret Thatcher’s Britain.

    But while the impact of Thatcherism came under intense scrutiny in the UK, Deaton was surprised to discover that American economists were largely uninterested in how their policies contributed to inequality and hardship.

    Deaton ticks off the list of Nobel prizes for economics won by the Chicago school’s highly regarded minds, including Milton Friedman and George Stigler. He does not doubt what he calls their intellectual contributions.

    “Yet it is hard to imagine a body of work more antithetical to worrying about inequality,” he writes.

    “A friend of mine, a conservative economist and deeply religious man, is fond of saying that ‘fair’ is a four-letter word that should be expunged from economics.”

    Deaton is now a US citizen married to an equally renowned economist, Anne Case, who coined the term “deaths of despair” to describe the rising mortality rate among white, middle-aged Americans driven by drugs, alcohol and suicide, a unique phenomenon in wealthy countries. The pair’s shocking findings drew the attention of then president Barack Obama and his successor, Donald Trump.

    Deaton and Case then wrote a bestselling book, Deaths of Despair and the Future of Capitalism, highlighting the part played in reducing life expectancy by the US economic system, not least its lamentable health industry in killing staggering numbers of patients while making Americans poorer.

    For all of Deaton’s attachment to his adopted country, his British roots and upbringing cut the lens through which he interprets the US.

    Deaton said that at the heart of the difference between his two nations lay opposing views about the role of government. After growing up in a country where many people saw the state as “a friend in times of trouble”, he was appalled to hear his American colleagues proclaim that “government is theft”.

    “The very strong view in Chicago was that government attempts to do anything to fix the economy would make it worse. They really believed that the government couldn’t do anything at all, which is absurd,” he said.

    Deaton said the evidence of successful state intervention is all around even if governments sometimes get it wrong. He points to president Lyndon B Johnson’s 1964 “war on poverty” legislation pulling families back from the breadline and improving lives with food stamps, housing assistance, and federal health care for the poor and elderly among other programmes.

    The way poverty is measured means that the war on poverty can never be won by sending money to the poor

    Angus Deaton

    Deaton said rightwing politicians and economists fixed the numbers so they could claim, in the words of Ronald Reagan, that in the war on poverty, poverty won. Official income statistics left out welfare payments so those receiving them often appeared to still be living below the poverty line when, by other measures, government assistance demonstrably helped.

    “No matter how successful antipoverty cash transfer policies are at reducing want, their effects do not show up in the official counts,” Deaton writes.

    “The way poverty is measured means that the war on poverty can never be won by sending money to the poor. This statistical stupidity, which the politics makes so hard to fix, is a constant source of mischief and misunderstanding.”

    Put another way, Deaton said, “the war on poverty has become a war on the poor”.

    The Trump administration went in the other direction. Deaton said it lowered the poverty line to the point where millions no longer fell below it, and then claimed that poverty was no longer an issue. But the move was made with the same intent of greatly reducing access to welfare payments and discrediting state intervention.

    Still, in time Deaton came to understand why Americans might be suspicious of government given that in the US it often works “not to protect ordinary people but to help rich predators make ordinary people poorer”. The political system, he said, is “more responsive to the needs of those who finance it than to its constituents”.

    Deaton argues that the system is also increasingly weighted by access to higher education, itself increasingly an industry that drives students deeply into debt.

    “One of the things I’ve learned is that the deepest forms of inequality are these sort of personal inequalities where not everyone is given equal value as a human being. That is the inequality that is so worrisome in America today. To have high status, to have access to good jobs, to be recognised valuable member of society, you have to have a four year college degree,” he said.

    “If you don’t, you don’t get to be part of the ruling class. You don’t get to participate in Congress. You don’t have access to good jobs. You’re excluded from the successful cities, and all sorts of bad stuff happens to you.”

    Deaton said that what’s emerged from decades of a system weighted in favour of those with a university education is a form of class system, although Americans do not like to talk about it in those terms.

    “That’s the difference with Britain where they always knew they had a class system. But the US has moved to something much closer to the class system,” he said.

    Deaton describes his own hopes as an immigrant 40 years ago as tempered by the corruption of the American economy and its politics to an extent that threaten democracy. But he is not without hope.

    “With the right policies, there is a chance that capitalist democracy can work better for everyone, not just the wealthy. We do not need to abolish capitalism or selectively nationalize the means of production. But we do need to put the power of competition back in the service of the middle and working classes. There are terrible risks ahead if we continue to run an economy that is organized to let a minority prey on the majority,” he writes.

    Deaton sees other reasons for hope too. He said the huge popularity of the French economist Thomas Piketty’s book, Capital in the Twenty-First Century, which argued that inequality is a feature not an accidental consequence of capitalism that can be offset only through government intervention, is evidence that even in the US the debate is shifting.

    “I think Americans are learning that there’s more than one way of thinking about the world,” he said. “One of the things I’ve been arguing is that all of us, including me, were a little too ready to accept the arguments that markets can solve things. We should have known.”

    Deaton also spies change because of immigrants like him. He points to the Turkish-born American, Daron Acemoglu, as an economist whose thinking is changing the discipline.

    “Seventy per cent of economics PhDs in the US are non-American. I compare it to the Jews who came to America between the wars who completely changed physics. Economics is being completely changed by this influx. I’m not the only immigrant who comes in to America and finds it a strange place,” he said.

    This post was originally published on Basic Income Today.

  • Rishi Sunak’s Tory government has approved the lifting of the cap on bankers’ bonuses. This means that the rule which saw firms limiting bonuses to a maximum of twice a person’s salary is being scrapped. Predictably, there’s been uproar – not least because the decision looks like a political one.

    Bankers’ bonuses: unfettered, once more

    As Sky News reported:

    The policy change was initially announced by former chancellor Kwasi Kwarteng in the infamous September 2022 mini-budget of the Liz Truss premiership.

    Current chancellor Jeremy Hunt and Sunak have kept the policy. Or rather, the Bank of England’s Prudential Regulation Authority (PRA) and the Financial Conduct Authority have said they will lift the cap – and the Tories have greenlighted it. It will come into effect on 31 October – and also hit this financial year’s pay packets for bankers.

    As the Financial Times (FT) reported, government thinking is that it will make the UK more competitive and give firms greater flexibility. Without a shred of irony – considering the government brought the cap in to try and stop rogue bankers from taking financial risks – the PRA also said it would give firms more financial stability.

    Predictably, non-bankers have hit back.

    ‘Obscene’ Tory move

    Luke Hildyard, executive director of thinktank High Pay Centre, told Sky News:

    The UK already has more millionaire bankers than the whole of the EU put together yet our economy is stagnant and our public services are in crisis.

    Whether or not the bonus cap was an effective policy measure, we can’t rely on the outsized incomes of a handful of super-rich bankers trickling down to lift slumping living standards for the wider population.

    Trades Union Congress (TUC) general secretary Paul Nowak said:

    This is an obscene decision.

    City financiers are already enjoying bumper bonuses. They don’t need another helping hand from the Conservatives.

    At a time when millions up and down the country are struggling to make ends meet – this is an insult to working people. Rishi Sunak has shown once again that he is more interested in feather-nesting the super-wealthy than helping struggling families. Rampant inequality will do nothing to boost growth or competitiveness – it will just hold our economy back.

    This is why we need to have a national conversation about taxing wealth properly in this country. It is time for those at the top to pay their fair share.

    And others have hit out, too. Lawyer and campaigner Peter Stefanovic blasted the Tories on Twitter, pointing to newly-released destitution figures:

    As the Canary previously reported, since 2017 governments have presided over a 148% increase in destitution. The Joseph Rowntree Foundation (JRF) found that, in 2022, 3.8 million people were destitute at some point, up 61% since 2019. This figure includes around one million children – up a whopping 88% since 2019.

    However, most shockingly, these figures represent a 186% increase in destitution for children. Looking at the detail, the JRF found that it was marginalised communities that successive governments had been failing the most. For example, 62% of people who were destitute were chronically ill or disabled.

    ‘Brutal and arrogant’

    So, when the rest of us are on our knees, the Tories decide to reward millionaires. Journalist Dave Sumner Smith summed it up – calling the Tories’ move “brutal and arrogant”:

    Of course, speculation is rife as to why Sunak has kept this policy which was formed under Truss. Some pointed out it might be to “appease” her wing of the Conservative Party. Others noted the Tories were running the country for the “benefit of bankers”. What’s also likely is that Sunak is eyeing support for the Tories from the financial services sector in the next general election.

    Let’s not forget that it’s the Tories’ fault the economy is failing in the first place – and by giving bankers a free-for-all, Sunak has done nothing to appease the notion that he serves only the interests of the rich.

    Featured image via David Iliff – Wikimedia, resized to 770×403 under license CC BY-SA 3.0

    By Steve Topple

    This post was originally published on Canary.

  • Successive Conservative governments have presided over a 148% increase in destitution since 2017. Destitution is classed as the most severe form of poverty – in which one can’t afford even life’s essentials like food, heating, and the ability to keep clean. The Joseph Rowntree Foundation (JRF), which conducted the research, has slammed the findings as “shameful“. It’s also clear what one of the biggest problems is: the Department for Work and Pensions (DWP).

    Destitution: a staggering increase

    The JRF describes destitution as being one of two things:

    1. Lack of access to at least two of six items needed to meet your most basic physical needs to stay warm, dry, clean and fed (shelter, food, heating, lighting, clothing and footwear, and basic toiletries) because you cannot afford them.

    2. Extremely low or no income indicating that you cannot afford the items described above.

    Since the JRF’s last report, the situation has worsened. The think tank found that, in 2022, 3.8 million people were destitute at some point – up 61% since 2019. This figure includes around one million children, up 88% since 2019.

    However, most shockingly, these figures represent a 148% increase in overall destitution since 2017, and a 186% increase for children. Looking at the detail, the JRF found that it was marginalised communities that successive governments had been failing the most.

    Marginalised communities suffering the most

    The JRF found that 62% of people who were destitute were chronically ill or disabled. This is an increase of nearly 15% since 2019. It also noted that:

    The rate of destitution among black, black British, Caribbean or African-led households in the UK is three times their population share. White-led households are underrepresented in the destitute population.

    There appears to be a strong interaction between ethnicity and migration. For black, Asian and other ethnicities, a clear majority of destitute respondents were also migrants (74%, 84% and 80% respectively).

    The JRF also found that 72% of destitute people were reliant on benefits for their main source of income. 35% had been reliant on foodbanks in the month before the JRF performed its survey.

    The DWP: the main driver of destitution

    The JRF was very clear what the issues were with the DWP and benefits.

    The think tank noted that:

    The basic rate of social security is now so low it fails to clear the extremely low-income cash threshold set for destitution. While Universal Credit payments rose in line with inflation in April 2023, most interviewees felt that it had made little difference to them because it was ‘swallowed up’ by the rapidly increasing costs of basic necessities. Similarly, the special ‘Cost of Living Payments’ aimed at people on means-tested benefits, who were disabled or pensioners, were also viewed as welcome but limited by their short-term nature.

    As the Canary previously reported, the DWP’s Universal Credit increases in recent years were barely increases at all. In fact, they haven’t even taken the benefit back to its real-terms 2019 value.

    All of this is unlikely to improve any time soon. The DWP is already considering a real-terms cut to benefits next April. It’s failing to properly tackle the rising price of everything (inflation). So, the next time the JRF reports on destitution, the government will have likely made it worse again.

    Featured image via pixabay and Wikimedia

    By Steve Topple

    This post was originally published on Canary.

  • The Americans pulling into the luxury Caribbean resort town of Juan Dolio could have easily passed as tourists. Dressed in jeans and tennis shoes, they set up at a hotel overlooking the Dominican Republic’s southern coast. But the group, which included law enforcement officers from the U.S. Department of Homeland Security, wasn’t traveling to enjoy the area’s world-class golf courses and palm-studded white sand beaches.

    Trained to target and dismantle terrorist groups and transnational drug cartels, the special agents from Homeland Security Investigations, or HSI, were probing something very different: working conditions at the Central Romana Corp., a major exporter of sugar to the U.S., whose top executive is Alfonso Fanjul, a billionaire Florida businessman. 

    The agents spent days last March secretly interviewing Haitian cane cutters, who were shuttled to the hotel from Central Romana’s sprawling nearby 240,000-acre plantation, where many workers, along with their families, live in ramshackle camps known as bateyes. 

    In November, months before the HSI agents’ arrival, U.S. Customs and Border Protection blocked imports of Central Romana sugar—which averaged about a quarter-billion pounds a year—after finding evidence of forced labor among its Haitian cane cutters.

    But the HSI agents’ inquiry and deployment in the Dominican Republic, disclosed here for the first time, indicates significant new federal scrutiny of the country’s sugar industry. It could also represent a breakthrough in the application of U.S. laws allowing corporations and their executives to be held criminally accountable for labor exploitation in their supply chains. 

    A series of lawsuits and reports by government agencies, civil society groups, and academics—along with extensive media investigations—have exposed grim conditions that Central Romana cane cutters and their families face, including substandard company housing, often without electricity or running water. In dozens of interviews with Reveal and Mother Jones over the last four years, workers and their advocates have described inadequate protective gear, poor medical care, low pay, chronic debt, and intimidation by the company’s armed security force.  

    Alfonso Fanjul and his brother Jose “Pepe” Fanjul hold top positions at Central Romana. Their business empire includes the Dominican luxury resort Casa de Campo; major sugar brands such as Domino, C&H, and Florida Crystals; nearly 190,000 acres of Everglades-area cane fields; and the world’s largest network of sugar refineries.

    An investigation by HSI that leads to criminal charges against Central Romana or the company’s leadership would be “unprecedented,” according to Kenneth Kennedy, a retired special agent with the division who directed efforts to expand its work targeting forced labor in goods imported into the U.S. “This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains.”

    Central Romana spokesman Jorge Sturla declined to confirm the existence of, or comment on, any investigation by HSI. Sturla said Elevate, a labor auditor Central Romana has arranged to consult for the company, had “found no evidence of forced labor.” He declined to provide a copy of its report. 

    A Central Romana batey. Credit: Pedro Farias-Nardi

    A department spokesperson said HSI does not confirm the existence of or comment on ongoing investigations. However, four Central Romana cane field workers confirmed they met with HSI agents earlier this year. The workers, who requested anonymity fearing reprisal by their employer, told Reveal and Mother Jones that agents queried them in Spanish and Haitian Creole about their grueling work, living conditions, pay, debt, medical care, and precarious immigration status. (The vast majority of the company’s cane workers are of Haitian descent, and many are undocumented.) The agents also asked about elderly workers who, lacking access to government pensions, routinely cut cane into their 70s.

    “The people from the United States government were interested in improving the situation for the Central Romana workers,” said one man who was interviewed by HSI, who reported having spent 30 years working in the cane fields.


    The Homeland Security Investigations inquiry is taking place as Central Romana flexes its muscle in Washington over the export ban. Congressional disclosure reports show Central Romana has paid Akin Gump, which Sturla confirmed was hired for its “experience in international trade law,” to lobby members of the House about the ban. Another payment of $25,000 for lobbying the State Department and U.S. Customs and Border Protection went to the firm of James “Wally” Brewster, a U.S. ambassador to the Dominican Republic under the Obama administration. 

    In August, Alfonso Fanjul, the Palm Beach-based president and CEO of Central Romana, sent a letter to former U.S. Sen. Christopher Dodd (D-Conn.), a longtime ally of President Joe Biden who now serves as a State Department special presidential adviser for the Americas. In the letter, obtained by Reveal and Mother Jones, Fanjul said he was “terribly upset” by the forced labor allegations and asked for Dodd’s help in “requesting (Customs and Border Protection) to lift its sanctions on our company.” 

    “Chris, we have been friends for a long time,” wrote Fanjul, who has contributed millions of dollars to Democratic campaigns, including Dodd’s. “I am a man of honor. … I would never allow my company to treat our workers in ways that would deserve the treatment we have received from CBP.”  

    Fanjul’s letter, which refers to Dodd’s previous “help and advice” on the Customs and Border Protection ban, comes from a powerful executive whose millions of dollars in campaign donations and lobbying has helped preserve lucrative price supports for U.S. sugar producers. 

    Sturla, the Central Romana spokesperson, said Fanjul had sent the letter to combat “disinformation” about the company. Dodd’s office and a State Department spokesperson both declined to comment on the letter, as did a Customs and Border Protection spokesperson.

    The letter “gives a rare glimpse into the smoky backroom,” said Andrew Sullivan, a political strategist for No Big Sugar, a coalition of labor, human rights, and environmental groups lobbying Congress to end the price supports. “He says the quiet part out loud, asking his ‘friend’ Senator Chris Dodd to trust him, not Customs and Border Protection. Fanjul is a man used to getting what he wants, and his frustration is palpable.” In light of the longstanding friendship Fanjul cites in his letter, Sullivan called on Dodd to recuse himself from any efforts to lift the ban. 



    Fanjul’s letter strongly denied that Central Romana uses forced labor, and also cited  Elevate’s report, claiming it came to the same conclusion. However, he wrote that the labor auditor recommended steps to improve its handling of “employee complaints,” their “interactions with supervisors,” and “the quality of our worker housing.” Sturla says Central Romana has invested millions of dollars to improve worker housing, but experts on forced labor say those parts of the letter are unintended acknowledgements of some of the issues at the heart of the import ban.

    “This letter confirms what other people have been saying,” said Duncan Jepson, managing director of Liberty Shared, an anti-trafficking group. “There are problems in how they handle complaints by workers, governance over supervisors’ conduct, housing and infrastructure.”

    Jepson’s organization has partnered with U.S. agencies, including HSI, to combat forced labor throughout global supply chains—and has provided the government with relevant evidence on Ireland’s fishing industry,  an Asian palm oil company, Goodyear’s factory in Malaysia, and Central Romana’s operations. Most recently, the group filed a petition with U.S. Customs and Border Protection regarding Firestone Tire and Rubber Co.’s rubber plantation in Liberia. “These are very old industries,” Jepson said, “so their production methods still are very much entwined with the long history of abusive and exploitative labor practices.”

    “This seems an opportunity for Mr. Fanjul to lead a program of transformative change at Central Romana,” he added. 

    But according to Charity Ryerson, executive director of the Corporate Accountability Lab, a labor watchdog group, instead of making the changes necessary to lift the ban, the company has so far focused on fighting it: “Central Romana has wasted the 10 months since the Customs ban was issued pursuing a political escape route rather than doing the right thing: remediating the abusive labor conditions identified by CBP and others.”


    Federal laws authorize HSI to conduct and coordinate criminal investigations into U.S.-bound supply chains that could involve forced labor. Businesses or individuals who knowingly benefit financially from forced labor can face criminal penalties, including up to 20 years in prison.

    As part of his work at HSI, Kennedy helped initiate the agency’s criminal investigation into Goodyear Tire & Rubber Co. over alleged labor abuses at its factory in Malaysia. The investigation, which included interviews with overseas workers, was the first of its kind, said Kennedy, who retired from government in 2020. The inquiry was closed without criminal charges after Goodyear reached a settlement with workers last year.

    Kennedy said investigators would easily be able to trace Central Romana’s supply chain of raw sugar from its Dominican plantation to U.S. ports. But prosecutors could face significant obstacles to bringing any potential or possible criminal charges, he said, including a lack of legal precedents or political will by agency officials and lawmakers and difficulties in getting victims to agree to testify. “These are some uncharted waters,” he said.

    Central Romana has long denied the use of forced labor on its Dominican plantations. In a statement issued in the wake of the 2022 U.S. customs ban, the company insisted it ensured “safe and productive employment” with “appropriate wages, housing and other benefits.” Yet the same statement also pledged to “engage in a dialogue” with Customs and Border Protection. Since then, the company tasked Elevate, which specializes in global supply chain issues, with examining concerns raised by the agency. Central Romana has announced salary increases, applied fresh paint to some bateyes and, as part of what Sturla described as a “multi-year” improvement plan, installed solar panels in some bateyes and demolished others, relocating occupants to “upgraded housing.” But ex-residents of one dismantled community, now living in isolated bateyes with no power, have bitterly denounced the company’s actions. Their former community had been located on a highway and was one of the estimated 10% of the company’s work camps with electricity.   According to complaints by residents of two other bateyes, the solar installations are adequate only for charging a cellphone or lighting a single bulb. 

    While Sturla also cited investments in health care and education for workers and their families, former U.S. officials and sources from nongovernmental organizations said Central Romana has appeared resistant to implementing more expansive reforms that could lead to a lifting of the trade ban. 

    “Labor rights advocates offered to collaborate with the company to develop an innovative, long-term solution for these workers,” said Ryerson. “Central Romana squandered that opportunity by not engaging in good faith,” declining to “do the right thing and remediate the harmful labor conditions” identified by Customs and Border Protection.

    This story was developed in partnership with Mother Jones and with support from the Pulitzer Center. It was edited by Clint Hendler and Kate Howard and copy edited by Nikki Frick.

    Sandy Tolan can be reached at atolan@usc.edu, and Michael Montgomery can be reached at mmontgomery@revealnews.org. Follow them on X, formerly known as Twitter: @Sandy_Tolan and @mdmontgomery.

    Federal Agents Investigating Sugar Exporter Over Allegations of Forced Labor in Its Supply Chain is a story from Reveal. Reveal is a registered trademark of The Center for Investigative Reporting and is a 501(c)(3) tax exempt organization.

    This post was originally published on Reveal.

  • The 1993 Oslo Accords between Israelis and Palestinians. You might recall the scene. Arafat, Rabin and Clinton at the White House beaming away and shaking hands. It was a euphoric moment. Peace and stability were at long last at hand. Did that happen? Take a look at a map. Oslo enabled greater Israeli control and expansion of colonies, euphemistically called settlements. There is no peace process rather it should be called an annexation/occupation process with an ever-shrinking possibility for a viable independent Palestinian state. And Washington? One administration after another went along with this charade. And the beleaguered Palestinians and their woeful leaders? They are to be grateful if they have a few malls, direct traffic and collect garbage. Rarely in the history of diplomacy has there been such a one-sided outcome as Oslo. Recorded at UCLA. This never-before-broadcast marks the 30th anniversary of Oslo and the 20th anniversary of Edward Said’s death on September 25, 2003.


    This content originally appeared on AlternativeRadio and was authored by info@alternativeradio.org.

    This post was originally published on Radio Free.

  • Activists in the global movement for debt abolition are gearing up to mobilize in Marrakesh, Morocco, where the World Bank and International Monetary Fund (IMF) are holding their annual meeting October 9-15, despite the devastating earthquake that laid waste last month to whole sections of the country. Planned in protest of the elite meeting, the activist countersummit will bring together…

    Source

    This post was originally published on Latest – Truthout.

  • “Just as in the 1930s,” Shawn Fain reminded his fellow auto workers, “we’re living in a time of stunning inequality throughout our society.” Back then, in those 1930s, UAW members began a generation-long struggle that put a significant dent in that “stunning inequality.” By the early 1960s, auto worker struggles and sacrifices had helped give birth — in the United States — to a mass middle class. A majority of a major nation’s households, after paying for life’s most basic necessities, actually had money left over. More

    The post America’s Auto Workers: On Strike Against Inequality. Again. appeared first on CounterPunch.org.

    This content originally appeared on CounterPunch.org and was authored by Sam Pizzigati.

  • We may be days away from the biggest U.S. auto worker strike in years. The contracts between the United Auto Workers (UAW) and the “Big Three” automakers (Ford, General Motors (GM) and Stellantis) expire on September 14. The agreements cover nearly 150,000 workers at the three corporations. So far, news reports indicate that the union and the auto giants remain far apart in negotiations.

    Source

  • Maati Jone Primm stands in front of her store. She is wearing a pink outfit, and she has two signs in the windows of her store. One says "Jim Crow Must Go" and the other says "Black Lives Matter."
    Reading Time: 3 minutes

    JACKSON, Miss. — Farish Street has an all-too-familiar story. 

    Once a booming Black-owned entertainment and business district that drew Black customers from all over Mississippi, it struggled after segregation ended. Today, it suffers from the same blight and infrastructure issues as many other Jackson neighborhoods — and far too many once-segregated communities across the country.

    I decided to visit Farish Street to get the perspective of small business owners on the state’s tax cut policies for an investigation published this week about a wave of such cuts pushed by conservative groups. Several told me that the state’s income and corporate tax cuts rarely benefit the Black business owners there. 

    “The tax cuts are for big businesses and the rich,” said Eric Collins, owner of Herbal Blessings, a health food store and vegan cafe. “As for the support our small businesses get from the state? It’s very little.”

    Marshall’s Music and Bookstore, owned by Maati Jone Primm, is located a few doors down. Primm’s grandmother, an activist who came to Jackson from nearby Utica, started the bookstore 85 years ago. 

    “This used to be a hotspot,” Primm said. “The elders will tell you that on a Saturday, Black people used to come from all over Mississippi to come to Farish Street. You used to have to walk sideways.”

    Primm connects the way the state Legislature handles taxes to a longstanding practice in the state to oppress Black Mississippians. Its tax structure – and the new reforms – benefit the state’s wealthiest, who are mostly white. And the majority-white state Legislature has long starved majority-Black Jackson of tax revenue.  

    She sees taxes as one tool in a box filled with policies enacted by the mostly white Legislature, including voter restrictions, limited access to medical care and underfunded public schools, that make it difficult for Black residents to thrive. 

    “I feel like they are attacking us,” Primm said. “It’s plantation politics. It’s absolutely awful. You have all these different attacks. It’s almost death by a thousand cuts.” 

    Part of that punishment, she said, is starving Jackson of tax revenue.

    It’s not a new allegation. The NAACP and nine Jackson residents filed a Civil Rights Act complaint with the U.S. Environmental Protection Agency last year alleging that state decisions about Jackson’s access to tax revenue have reduced or blocked funds needed to maintain the city’s water supply, ultimately resulting in long-running problems accessing clean water. City residents suffered through a days-long outage last summer.

    “It’s the culture of Mississippi that says they must oppress Black people,” Primm said. “They don’t want to share power, and they really don’t want to share resources.” 

    Mississippi enacted a substantial income tax cut in 2022 that moved the state to a single tax bracket, regardless of how much you make. These “flat” taxes sound equitable, in that everyone is paying the same percentage of their income in taxes. But the rest of a state’s taxes don’t work that way, sales taxes especially, and the main way governments can avoid leaning most heavily on lower-income people is with income-tax rates that increase as earnings do. 

    Mississippi’s tax structure already took a larger share of income from its poor and middle-income residents than its richest, according to an analysis by the Institute on Taxation and Economic Policy. The newest change will worsen that inequity. According to the group’s analysis, the state’s highest-income residents would receive an estimated $31,400 in tax cuts on average each year, while the lowest would get average savings of $20.

    The state will likely see a $419 million reduction in revenue every year on average from the income tax cut, according to the University Research Center, a division of Mississippi Institutions of Higher Learning that studies state and local policies.

    Primm is most concerned about what that could mean for Mississippi’s public education system, already underfunded and underperforming, especially in places with larger lower-income Black communities. 

    This image from inside the shop shows many books (including Vegan Soul Food, Black History Matters and Dream Builder) and a wall covered with images and posters, including a quote from Marcus Garvey: "A people without the knowledge of their past history, origin and culture is like a tree without roots."
    Marshall’s Music and Bookstore in Jackson’s Farish Street Historic District. (Maya Srikrishnan / Center for Public Integrity)

    Her great-grandmother, who was enslaved, created a school. A visit to Primm’s bookstore makes her passion for education clear. As I waited to speak with Primm, she was helping provide books for a local church group. She’s stocked her store with countless books on Black culture and history, from Maya Angelou poems to soul food cookbooks to nonfiction on medical discrimination and books detailing the history of how African slavery in the U.S. began. Primm has adorned its walls with pictures of freedom fighters; Black people who have been murdered throughout the country’s history, including Emmett Till and Trayvon Martin; and modern cultural icons, like Morgan Freeman and Oprah Winfrey.

    Underfunding education is a form of disenfranchisement in itself, Primm said. 

    “The largely white power brokers want to maintain the status quo and in order to do that, they need to disenfranchise us,” Primm said. “What they count on is the people to be silent for all of this and suffer in silence. I’m not going to do that.”

    The post In a historic Black business district, ‘death by a thousand cuts’ appeared first on Center for Public Integrity.

    This post was originally published on Center for Public Integrity.

  • The nation’s largest coffee brand joined the ranks of companies pledging to increase diversity in the aftermath of the murder of George Floyd by Minneapolis police.

    Starbucks set a goal of 30% people of color at all corporate jobs and 40% in every retail and manufacturing role by 2025.

    Two years later, the company’s own workforce demographic reports show there is still much progress to be made: Less than half of all roles reported by the company had reached the goal by 2022.

    Black representation was particularly low. From 2020 to 2022, Starbucks’ own numbers show no change among baristas and shift supervisors and less than 1 percentage point improvement among store managers. Starbucks reported only a 1-point gain for regional vice presidents, the top retail position.

    Opportunities for Advancement Are Uneven Across Industry

    Coffee has been entangled with issues of racism since the 18th century, when colonizers established coffee plantations in the Caribbean and elsewhere that depended on slave labor. And today, a majority of coffee is still grown and harvested internationally by low-income people of color.

    The U.S. coffee business is disproportionately White. From the trade business to boardrooms and baristas behind the counter, people of color can be hard to find, said Phyllis Johnson, founder of the Coffee Coalition for Racial Equity.

    “When you look at a consuming country, oftentimes, what you see is such a small representation of what coffee is,” Johnson said. “A lot of the opportunities are gatekept.”

    Starbucks and Caribou Coffee worker demographics were about on par with the rest of the country in recent years, according to diversity statistics all federal contractors must file and that became public for the first time in the spring following a yearslong legal battle by Reveal from The Center for Investigative Reporting.

    Customers walk into joint location for Caribou Coffee and Einstein Bros. Bagels in Lakewood, Colo. Credit: RJ Sangosti/The Denver Post via Getty Images

    For every one Black Starbucks worker in 2021, there were six White employees, and the Minnesota-based chain Caribou Coffee reported the same 1-to-6 ratio in 2020. Despite being headquartered in the multicultural San Francisco Bay area, Peet’s Coffee was less diverse: employing eight White workers for every one Black employee in 2019, the latest numbers available for that company from the federal data.

    About half of Peet’s Coffee’s workers identified as a racial minority as of June, said Mary O’Connell, head of communications at the company, higher than their 36% share among all U.S. jobs but far lower than the 71% non-White population of the East Bay’s Alameda County, where both the original Peet’s and its current corporate offices are located.

    Starbucks is on track to reach its goal by 2025 and will continue to publish annual updates, said Danielle Winslow, social impact communications manager for the company. She said that its employees – Starbucks calls them “partners” – are at the center of the company and that it prioritizes creating opportunities for minority partners.

    “At Starbucks, our goals around inclusion and diversity are not simply metrics – it’s a mindset,” she said.

    Caribou Coffee did not respond to requests for comment.

    Keith Hawkins, who is Black, founded the Color of Coffee Collective in 2021 to combat issues of diversity and equity in specialty coffee. Before that, the U.S. Army veteran spent years working at a local coffee shop and later almost two years at Starbucks, where he said he repeatedly watched as White co-workers with less experience were promoted ahead of him.

    “Regardless of what I knew, regardless of how much I poured into the industry,” Hawkins said, “I came to the real realization that most of these companies only wanted certain people, specifically blond hair and blue-eyed White men, to represent them when it came to spaces of negotiating deals.”

    A current Starbucks employee, who asked to be identified only by her first name, said she has not seen any improvement in recent years. Sunny has been a barista at multiple Starbucks locations in Texas for a decade. In that time, she said she abandoned her ambitions of being promoted to shift supervisor or store manager after repeatedly being passed over.

    “At the beginning of me signing on, they told me … that we’re a company that is really big in promoting from within,” she said. “I am living proof that that’s not true.”

    Representation in Leadership Tends to Be Low

    What diversity exists in the coffee industry tends to congregate in lower-level, lower-wage positions. Typically, the disparities grow wider up the corporate ladder.

    “The problem exists in decision-making roles and opportunities,” Johnson said.

    This is a chronic problem across corporate America, where White men hold a disproportionate number of executive positions.

    The Starbucks C-Suite breaks some from this trend: There were 12 Starbucks executives of color out of 45 in 2021, six of them Black. Although women outnumber men almost 3 to 1 among service workers, like baristas, their representation is half that amid executives, and 21 of the 27 women in the C-Suite are White.

    At Peet’s Coffee’s in 2019, 82 executives were White; just 13 were people of color, including three Black executives. Caribou Coffee reported one Black executive in 2020 and no women of color, out of 15 total.

    And at Starbucks, a close-up look shows the improvements at corporate offices were mixed for Black employees: More were hired into employee roles and the number of vice presidents almost doubled to match the American workforce, but figures for managers, directors and senior VPs remained virtually unchanged between 2020 and 2022.

    A Dig Insights survey of about 300 coffee workers across the country shows the fallout from a lack of promotion opportunities: Less than half of respondents who were Black, Indigenous or people of color said they would recommend working in the industry.

    “It’s incredibly hard to make the leap from barista to a salaried position with a livable wage,” said one of the respondents. “These positions are sometimes gatekept by certification and training that is unaffordable by the common barista. I just hope for a better future with more opportunities.”

    Smaller coffee shops don’t show up in the statistics, but Porttia Portis, who has worked in coffee for just over a decade in almost exclusively management roles at local cafes, said she has faced discrimination there from not just bosses, but customers.

    “More often than not, people did not want to believe that I was the manager,” said Portis, who is Black. “Everyone in the room could tell a customer that I was the most knowledgeable person, that I was the manager, and they would look me dead in my face and be like, ‘I want to talk to someone else,’ ” Portis said.


    Equal Employment Opportunity: Who Rises to the Top?

    Type a company name, city or state in the search box above.
    Source: U.S. Department of Labor


    Many baristas will migrate from retailers such as Starbucks or Peet’s Coffee to local cafes in hopes of finding a better environment, Portis said. What they often find instead, she said, are small operations whose ambitions to scale up leave them mirroring the mindsets of their larger competitors.

    “A lot of the mentality stays the same throughout the industry, regardless of the shop size,” Portis said. “And I think on a smaller level, you find that there’s a lot more disparity because there’s a lot less checks and balances. Whereas on the larger levels, you’re going to have more DEI programs or diversity initiatives. Whether it’s to meet a quota or not, there’s at least something that exists there.”

    Charles Umeano said he has even tried changing cities, moving from coffee shops in Atlanta to New York and Boston. Yet he said he kept running into the same issues as Portis and others.

    “I’ve watched a lot of very talented baristas of color decide that they don’t want to deal with this anymore,” said Umeano, who is currently looking for a job in coffee outside of retail. “In fact, a lot of them are questioning why I’m still here.”

    Promises for Change So Far Unfulfilled

    Amid the unrest three years ago, many companies made similar promises in 2020 to increase diversity. But Hawkins said many of those vows to change proved to be more performative than productive.

    When a shop near him posted an advertisement on social media calling for volunteers for an online conversation about minority representation in coffee, Hawkins, who has extensive industry experience, responded.

    “And then they sent me a message back saying, ‘We’ll let you know,’ ” he said. “I waited for about six months. … I DM’d and said, ‘Hey, are you still having this conversation?’ And it was crickets.”

    After calls for change peaked in 2020, Portis said she believed minorities working in coffee were left worse off.

    “ ‘Performative’ isn’t even a strong enough word to some degree,” she said.

    “As soon as the hype died down, then (there) was a lot of resistance,” Portis added. “Once people started getting hired again, it was just a lot of resentment of, ‘You got hired because you’re the diversity hire, and I really don’t believe that you’re qualified for this job.’ 

    “Whereas before, you could at least expect if you did get hired, you knew you were getting hired because you were qualified.”

    Johnson is more optimistic about the industry’s potential for improvement.

    “I think the thing that will ensure that it continues and gets better is that their customers must demand it; their customers must hold them accountable,” Johnson said. “And sometimes, better can mean becoming more aware.”

    Because the coffee industry is an intimate and relationship-driven space, Umeano said hiring tends to be based on who you know or other areas rife with implicit biases. But for their own success, he said, coffee shops stand to benefit from more diverse hiring practices.

    Companies with more diversity in race and gender tend to outperform those that are more homogenous, which includes reporting additional revenue, according to recent studies.

    “I think a lot of times, people look at diversity as you’re doing a solid to people of color, and I don’t really think that’s the mentality,” Umeano said. “In any situation, you want different heads in the room for creative solutions.”

    This article was published in collaboration with USA TODAY.

    ‘The Opportunities Are Gatekept’: Coffee Shops Continue to Fall Short on Diversity is a story from Reveal. Reveal is a registered trademark of The Center for Investigative Reporting and is a 501(c)(3) tax exempt organization.

    This post was originally published on Reveal.

  • America’s numerous struggling cities face the unenviable task of addressing crumbling physical and social infrastructure, housing and affordability crises, and unemployment on shoestring budgets (after you account for the massive slices handed to police) and public debt. In the age of neoliberalism, the solution is all too often to turn to the private sector—which usually only results in an upward transfer of public wealth into private hands without substantial improvement to the problems at hand. Urban development, particularly in a city like Baltimore, is especially egregious in this regard. But it didn’t have to be this way, and it wasn’t always the plan. Urban planners of days gone by such as Edward Logue once advocated and fought for urban development as a project oriented towards public good and managed by government, rather than corporate interests. Historian Lizabeth Cohen joins the hosts of Tax Broke for a look into the origins of ‘urban renewal,’ how the idealistic visions of progressive urban planners were hijacked in service of private interests, and how we can fight for the cities of the future to really belong to all of us.

    Lizabeth Cohen is the Howard Mumford Jones Professor of American Studies and a Distinguished Service Professor in the Department of History at Harvard University. Her most recent book is Saving America’s Cities: Ed Logue and the Struggle to Renew Urban America in the Suburban Age.

    Production: Stephen Janis, Taya Graham
    Studio Production: David Hebden
    Post-Production: Alina Nehlich


    Transcript

    Taya Graham:  Hello, my name is Taya Graham, and welcome to another installment in our series titled Tax Broke, an investigative project that explores the use of incentives, subsidies, and tax breaks to fuel development in Baltimore and beyond. Myself, along with my reporting partner, Stephen Janis, are continuing to report on and investigate how Baltimore’s expansive array of tax breaks and incentives have cost the city hundreds of millions with little or no transparency.

    But we also explore a question that remains unanswered for both of us: Why does a poor city like Baltimore have to pay developers to build? The centerpiece of our work is the documentary called Tax Broke, which tells a story of how Baltimore, faced with a shrinking population, has increasingly relied upon tax breaks to fuel development. The story we recount is similar to many cities that have been overwhelmed by a decline in federal funding, suburban flight, and political and social isolation of communities already wrestling with extreme poverty and limited resources.

    Stephen Janis:  During our investigation, one of the questions that kept bothering me was what I would best describe as an uninformed sort of presentism. That is, as a reporter completely absorbed and figuring out the story of now, I also felt there was a critical aspect of the narrative that was missing, namely, how did we get here? That’s why when I was working on the documentary, I picked up a book called Saving America’s Cities. It was, on the surface, a biography of legendary and controversial urban planner Edward Logue, but it was much more than that. It was a book about a world I honestly simply could not conceive of, an era when urban redevelopment operated in an entirely different reality that made me question my assumptions about what I thought I knew and how the story should be told.

    Taya Graham:  Stephen, you’re right. Logue was a superstar urban planner in a field that is almost entirely driven by the private sector now. His work in cities like New Haven and Boston earned him national acclaim, and his methods drew both praise and criticism.

    But like Stephen, I was struck by how the book described urban renewal as a process I was entirely unfamiliar with, a push to reimagine cities driven by government, not private capital. A period in history when the nation intervened to rebuild urban centers instead of sitting on the sidelines. It’s a story that every person who cares about the health of our communities and neighborhoods should read.

    Stephen Janis:  And to discuss it, we are so grateful and fortunate to be joined by the author, professor Liz Cohen. Professor Cohen is a current Howard Mumford Jones professor of American Studies in the History department at Harvard University, as well as a Harvard University distinguished service professor. From 2011 to 2018, she served as the dean of Harvard’s Radcliffe Institute for Advanced Study. She is, of course, the author of [Saving America’s Cities:] Ed Logue and the Struggle to Renew Urban America in the Suburban Age, which, in 2020, won a Bancroft Prize.

    Taya Graham:  Her book, A Consumer’s Republic: The Politics of Mass Consumption in Postwar America, was a Pulitzer finalist. I mean, we could go on, but we honestly would run out of time. But for now, we are happy to be joined by professor Cohen.

    Professor Cohen, thank you so much for joining us. Now, before we get to the work of Mr. Logue and his unique role in urban renewal, can you set the scene for us a bit? What was going on with cities when he started his work in New Haven? We know there was an expansion of highways and a strong movement towards suburbanization, but what challenges was Logue facing when he started his career and how this country viewed cities?

    Liz Cohen:  Well, I think it’s crucial to put urban renewal of the 1950s, ’60s, and early ’70s in a historical context. So that’s the right question to ask. We were coming out of a long period right after World War II of little building, cities deteriorating, a great need for housing as new families were constructed, as there had been delayed family formation with 10 years of the Great Depression followed by World War II.

    And you can imagine that during that time, first the Depression then the home front, there was very little development taking place. So when the soldiers come back, families start being formed, the baby boom happened. People were desperate for housing. And the solution that the United States really promoted through federal legislation was basically suburbanization. We will subsidize developers, we will subsidize mortgages through the FHA and the veterans loans. We will build highways through the Highway Act of 1956 to make it possible for people to access those suburbs and then get back into the city, supposedly for work. But the big push was metropolitanization moving people out of cities into areas that had been farms and forests, basically, before the war.

    So cities were suffering. They were losing residents, they were losing businesses because our office parks were part of this suburbanization where many businesses were moving out. Retail was moving out of downtown. The classic downtown department store was now showing up in shopping centers in suburbs with suburban stores. So cities really were facing a crucial moment of, how are we going to survive the changes that are taking place in the United States starting in the 1950s?

    So Logue enters the field of urban planning, urban development, with a huge concern that cities which he valued tremendously – He had grown up in Philadelphia, he thought cities were the lifeblood of the United States, that they were in big trouble.

    And they were also developing in a very racially segregated way, because those who were able to take advantage of these mortgage opportunities through the FHA and the VA mortgages were white, and the cities were becoming increasingly minority as African Americans were moving north out of the South looking for more opportunities, particularly for good jobs in manufacturing. So they were arriving at the time when manufacturing was in trouble, when many of these cities were really struggling, and we were getting what many historians call a donut effect where the center is Black and the surrounding is white. So that was the world that Logue was facing when he started working as an urban redeveloper in the 1950s in New Haven.

    Stephen Janis:  And so, professor, your book recounts his initial work in New Haven as one of his first major projects and defining for him. What was Logue tasked with in New Haven? What were the challenges and goals, and why did the city decide to embrace him as the right solution for their problems?

    Liz Cohen:  Well, Ed Logue returned to New Haven, where he had gone to college at Yale College and had returned after he served in World War II to attend Yale Law School. And after Yale Law School, he went on, he tried his hand at being a lawyer. He was a big labor guy, but he decided he didn’t really like labor law enough to stick with that. And he was much more attracted to public service. He worked in the state of Connecticut as a labor secretary.

    And then the man he worked for, Chester Bowles, who was the governor of Connecticut, was named as the new ambassador to India. And Ed Logue went with him at his invitation to be his special assistant. When he went to India, which was a new nation, he observed the US government and the Ford Foundation investing a lot of money in physical infrastructure to modernize India, and also to ensure that India remained in the democratic fold or in the United States’s orbit in the Cold War. And India was notoriously independent and responsive as well to the Soviet Union. So there was a lot of investment put into places like India in the late 1940s, early 1950s, and Logue saw that.

    And when he came back to New Haven after Bowles was no longer ambassador, and he himself was returning to have his first child, and came back to New Haven where his in-laws lived, he felt that there was a strategy there that was being used in the developing world that might be applied to these struggling American cities, New Haven being a prime candidate.

    And New Haven had had a lot of trouble for many years, but it still was the regional retail center of this southern part of Connecticut. But it was struggling. And as soon as he came back, he joined the campaign of a man named Richard Lee, who was running as a progressive candidate for Mayor of New Haven. And part of his platform, really a major part of his platform, was to take on the urban renewal of New Haven. And Logue joined the campaign. And then when Lee was elected, he was actually named to be the head of redevelopment for Mayor Lee.

    And the two of them became a duo who really threw themselves into renewing the city. And they saw that they had to change the way New Haven looked in order to convey to the world that it was truly a modern city and not some antiquated 19th century out-of-date urban center. And it did look deteriorated, and they were particularly worried about the construction of the Interstate 95, which was going to bypass the city. And that would mean that rather than people driving through New Haven to go north towards Boston or south towards New York, they would be avoiding the city altogether. And that seemed like the death knell to retail in New Haven. So they felt they had to do something.

    And they threw themselves, as I said, into this urban renewal. And Logue’s genius was that he understood how to get money out of the federal government. There had been a Federal Housing Act in 1949 that made federal funds available for urban renewal, and Logue figured out how to get a lot of that money for New Haven. And believe it or not, New Haven became a kind of laboratory of urban renewal.

    Taya Graham:  I’m so glad you mentioned his genius, because I think one of the hardest aspects of your story for me to reconcile is urban planner as national celebrity, but Logue was that. Why and how was that possible? Was it about the moment? Did he turn himself into a star? Was he an anomaly, or was urban planning just a bit more high profile at that time?

    Liz Cohen:  Good question. I wouldn’t say that he was a national celebrity to everybody. Certainly within the planning circles and urban policy circles, he was extremely well known. He was a cover story in Life magazine. He was in Look magazine. He was in Newsweek. He did get a lot of attention. Probably not as much as Robert Moses, who was in New York and was able to get an awful lot of media attention for being there. But Logue was well-known in these circles. And so when, for example, seven years later, Boston was looking for someone to come in and help it turn itself around because it was in terrible shape, Logue surfaced very quickly as the guy to get. So people who were in the know knew about Logue.

    But I would say that you’re correct that the times mattered tremendously. And this deterioration of American cities seemed very threatening. Remember that Europe was coming out of World War II, it had faced a lot of destruction during the war, whether it was the UK, France, Germany, and there was a lot of rebuilding going on – In Japan as well. So the US, which at first after the war was in a very strong position, as the rest of the Western industrial world had been fairly destroyed, was now worried about what was going to happen as its allies were rebuilding cities, rebuilding manufacturing plants, and so forth.

    So in order for the US to keep up and stay modern, it seemed important to keep those cities viable and growing. And Logue believed, as very much a devoted New Dealer – He was really raised on F. Roosevelt in the 1930s – And a belief, a deep belief, in all that a strong federal government could do to help the people and the common good. He felt that we need to get government in the act, and we need to take on the next big frontier, which is our American cities, and we have to modernize them, we have to make them more egalitarian, we have to provide more housing, we have to keep people in cities and keep business in cities and keep retail in cities, because that is the lifeblood of this country.

    Stephen Janis:  Yeah, before I ask the next question, I just want to say when I listen to you, I’m thinking, that is so antithetical to how development is done today.

    Taya Graham:  I know.

    Stephen Janis:  I wish we had a person who cared that much and thought government could do something for us. So professor, can you talk a little bit about his style? It seems that at the beginning of his career, you describe him as an intense, hardworking, take no prisoners approach that perhaps was not inclined to collaboration, was more wedded to his vision and his centralized approach. So talk a little bit about his personality and his personal work philosophy and how he approached the problems that he faced.

    Liz Cohen:  Well, Ed Logue was known to be hard driving, of himself as well as everyone who works for him, to have these egalitarian goals, to believe in government, but to feel that experts should be in charge. He understood that, in the United States, we were never going to have a really social democratic society, which he might’ve wanted. The private sector was always going to play an important role. But he felt very strongly that public officials, government officials, needed to be in the driver’s seat.

    But this belief in expertise did sometimes take him down some dangerous roads. So there are many aspects of the New Haven period which I think are deeply flawed because of that. Yes, they believed on the surface in consultation with the public, and one of Logue’s mottos, particularly as he went into the Boston period, was “Planning with people”. But when it came down to it, he really felt like he knew best and the planners knew best. So there were some real problems in terms of public consultation.

    There were also people who felt that Logue was very top-down, very unsympathetic to people who worked for him. High expectations. Over time, he did change, and we can talk about that. He was forced to change as American society changed and people really weren’t willing to put up with this top-down decision making. That’s really something that emerges in the 1960s.

    But to start with, he really felt that consultation should happen through the leadership of existing organizations. And they had a committee that they consulted with in New Haven that was made up of leaders from labor, from various kinds of community organizations, whether it was the [inaudible] voters, or different business leaders, or so forth. And that that was sufficient, and that the people living in those neighborhoods that they were about to renew didn’t really need to have a voice. Their leaders would represent them. And that was a problem.

    They also were so tied to the idea that we need to prove that New Haven is modern that anything went. And they learned very quickly that modern architecture could be bad. And the first building that they put up on this road called the connector, which was the strategy for connecting people from I-95 to New Haven so that they didn’t lose that access, the first building was a disaster. It was done on the cheap, the architecture magazines called it out as a building that looked like it was designed by the janitor. So he learned a lesson there that he then really, I think, took to heart when he got to Boston, where he had a committee of architects who consulted on design.

    So there were mistakes made. The connector turned out to be pretty destructive of the downtown, of the streets they had to destroy in order to put it in. And those tended to be neighborhoods, the Oak Street neighborhood that was lived in mostly by minority populations. There was a lot of plowing things over to build anew. But it needs to be pointed out that the 1949 Housing Act required that you basically clear and rebuild and not renovate and rehabilitate. By the 1954 Housing Act, that was corrected, and there was a way to do rehab.

    So to some extent, the mistakes that Logue and Lee made in the 1950s – And were copied all over the country. You can find most cities having the same kind of mistakes in the 1950s – Partly it was because that’s what the government regulations required.

    So I wouldn’t say that New Haven was a success, but I think there were lessons learned in New Haven that Logue then took with him on his road forward to Boston and then ultimately to New York state. And that’s one of the main points that I make in the book, which is I think it’s a mistake to just dismiss everything that happened in the urban renewal era from the late 1940s to, say, the early 1970s as one big mistake, which is often what is said. I think it was a much more evolutionary process, and that there was learning on the job and bringing lessons from one project to the next and one city to the next.

    Taya Graham:  I’m so glad you mentioned the destroy and raze as opposed to rehabilitate, because it seems like there have been almost two schools of thought when it comes to urban development. There’s the Robert Moses raze whatever’s old and pave over approach, and then a more organic take of Jane Jacobs’s perspective, where cities thrive through the creativity of neighborhoods. Where do you think he fits into this spectrum, if there’s a spectrum at all? How would you explain Logue’s urban planning philosophy in a broader sense?

    Liz Cohen:  Well, I think that Logue liked certain aspects of Robert Moses and Jane Jacobs and was critical of others. So in the case of Moses, Logue made a very clear distinction between himself and Moses saying that he himself, Ed Logue, cared much more about the social impact of his projects. And one of his great commitments was to try to create socially mixed residential environments that were mixed by class, by race, by age, people who were disabled being integrated into the standard housing by providing for them. That was a great commitment on his part. Certainly not one of Robert Moses’s. But he did like Robert Moses’s park building, and he did like his parkways with the highways that he built around New York, because Ed Logue was a highway guy. I mean, he really did believe in these roads, and he did contribute to what today we are critical of in many cases, where there were neighborhoods that were destroyed in order to build access roads into cities.

    So he knew Robert Moses, they would meet up at Princeton-Yale football games. They both were Yale alums, so they would meet in the parking lot, greet each other. They had certain professional interactions. But Logue was careful to not really ally himself with Robert Moses, who he felt did a lot of damage as well as a lot of good.

    Jane Jacobs was a complicated case because there were aspects that he respected of her, and she of him at first. In her classic book on rebuilding cities, she does actually point to some positive things that happened in New Haven. But as time went on, she became increasingly critical of Logue, and he of her. And what he worried about with her approach, which was basically to let cities evolve organically, naturally on their own, was that they would become the playgrounds of the wealthy. And the wealthy, who lived in suburbs and perhaps worked in cities, would then be able to return to their comfortable suburban lives and not in any way have to invest in improving the neighborhoods and housing options available to less fortunate people.

    So he felt that Jane Jacobs’s model was really unfair, and that it really didn’t provide for a common good, it just kind of left things to their own and ran the danger of letting the private sector, the real estate market, dictate what happened.

    And her neighborhood, of course, was the Greenwich Village, and he felt that wasn’t fair to say that all of American cities, and certainly all of New York, was Greenwich Village. It was a very privileged, though less so then than the now, neighborhood. And so sure, maybe Greenwich Village will evolve wonderfully, but that wouldn’t be true if you’re talking about tough parts of Brooklyn or Harlem or the South Bronx and so forth. So he felt there needed to be a greater commitment by government and planners, and she was very critical, of course, of that expertise coming into the game.

    Stephen Janis:  So in an interesting point to all this, during his career, how involved was the federal government in financing urban development? We know now there’s not much, but how could he depend on federal funding for his work? And what role did the federal government play in urban development process then, when he was working?

    Liz Cohen:  There were housing acts, as I mentioned, in 1949 and 1954, there was another one in 1968. And the way they worked was to make money available to cities on a two-to-one basis, and sometimes even with the federal government doing the two and the city doing the one, and the cities were also able to charge other expenses they were already investing in against that one. So they got a lot of money from the federal government, basically, to clear land or do the preparation that would make an urban site more attractive to a private developer. So it was not a fully social democratic strategy where the government just does it. As always in the United States, the government was also partnering with the private sector. But it was an effort to try to encourage and incentivize developers to take on urban projects rather than just build suburban, industrial and business parks, and shopping centers, and suburban developments, and so forth. And in general, that worked pretty well.

    There also were provisions to get subsidy for housing that was built, and often there were rules that the housing needed to be charged at rates that required no one to spend more than 30% of their income on their housing. So the government was very much in the act. And it had its flaws, as I was suggesting, and there still was a lot of discretion and power given to the private sector, but the government was very much in the act, and it was public officials that were calling the shots, not the developers, as we see very often today.

    That comes to a halt in 1973 when Richard Nixon declares a moratorium on the federal government’s investment in housing and, basically, in cities. So this era ends at that point. It does come back in. The Nixon philosophy was that the money should go directly to the states and to the cities, and then it doesn’t really get to the cities at the same level because, as we know, many state legislatures are dominated by more conservative upstate interests. And so the housing needs of a city like New York City in the state of New York was never so assured when the money went to the state of New York rather than from the federal government directly to the city.

    So it is really a death knell when Nixon puts in that moratorium, and it becomes even more so when Reagan is president starting in 1980, and he cuts the housing budgets hugely, more than any other part of the federal budget. So we move, starting really in the 1980s, into a very different era of needing to find private sector strategies for doing whatever we are able to do to build more subsidized and affordable housing.

    Taya Graham:  When you look back on all his work, what do you think was his greatest achievement in terms of transforming a city? Where was his philosophy or vision? Where did it come together in a way that you think is the best example of how he could improve a city or save a city?

    Liz Cohen:  Well, Ed Logue would tell you that he took the most pride in Roosevelt Island, which was one of the new towns that he built in New York state when he was head of the New York State Urban Development Corporation. He was appointed by Governor Nelson Rockefeller, who was a liberal Republican – If one can point to that anymore – Who really did believe in the role that government could play, and had hired Logue to head the statewide agency, the Urban Development Corporation, which was funded by state money, whatever federal money was still left. Logue goes into this job, starts it in 1967, ’68. And then also private bonds that would be sold through banks to private investors. So it was a new hybrid entity to deal with the decline in federal funding.

    And Logue, who never really would’ve loved the idea of private sector playing such a big role and having bonds that were in the hands of private investors being so crucial, was struggling for how to get more funding for the projects he wanted to do – And remember, this is an era of the Vietnam War, and the domestic programs are being cut and cut.

    So he goes into this, and one of the strategies that he embraces is building new towns, which is an approach that had been used in Europe and in the UK and France and Germany to build these new communities that would be a combination of residential as well as employment and recreation. And he builds three of them in New York state. And the one he, I think, was most proud of, as I said, was Roosevelt Island. And there, he was able to actually have mixed income, mixed race, mixed age. And because there had been some hospitals for the disabled on the island before Roosevelt Island was created, that became a part of the approach as well. And there was a lot of recreation on the island.

    The one thing they did not get as much of as Logue would’ve wanted was retail and employment. But New York was right there. And part of the retail problem for many years was that the subway, which was supposed to connect Roosevelt Island to Manhattan and to Queens, was very slow in coming. So that’s why they put the cable car in that still runs from the East Side of Manhattan to Roosevelt Island, even though there is now, of course, a working subway.

    But he was able to have, on the same island, without having to do clearance – And there’s an example of how he learned how unpopular that had become, because Roosevelt Island basically had some hospitals on it and some other public institutions, but was basically not very developed. So he was able there and in the two upstate new towns that he developed, also being places that were open land, he didn’t have to face this very challenging situation of having to evict people, clear old neighborhoods. He could just go into these virgin lands.

    Now today, there would probably be more pushback about doing that, because we would have more environmental concerns, we would care more about open space. He would’ve had a bigger battle on his hands. So he would definitely point to Roosevelt Island.

    He would also point to Wooster Square, which was the first big housing rehabilitation project he could do in New Haven. It was an Italian neighborhood. There were a lot of brownstone buildings. And he was very proud of having rehabilitated and not having had to clear. And also bringing in some subsidized housing amidst more market rate and homeowner-owned housing.

    So those two were important. And then there is another project that he never succeeded in doing, but I think that he, and I, am proud that he tried. And that was a project called the Fair Share Housing Program, which was an effort he made when he was head of the Urban Development Corporation, the UDC, in New York, to build a small number, 100 units, of housing in nine well-off Westchester communities. Logue believed strongly that urban problems could not just be left to cities to solve, and that we needed metropolitan solutions, and the suburbs had to be involved in taking on some of the burdens that cities faced of inequality, of poor housing, and so forth.

    So he had this scheme, and Nelson Rockefeller went along with it, and thought that he could pull this off since he too was from Westchester – That’s where his family had its big estate. But it turned out to be an incredible struggle, and these nine towns pushed back tremendously. There were death threats against Logue. And ultimately Rockefeller had to give it up because Republicans were being targeted in elections in Westchester, and the UDC was looked at as the enemy of the people.

    So that was a failure, and it’s one he always regretted. But at least he tried. And he really did introduce the notion that we need to take on exclusionary zoning in many of these well-off suburban areas.

    Stephen Janis:  And conversely, and of course I hope this isn’t redundant, but where do you think one of his least successful efforts was? Perhaps his style, perhaps his way of doing things, or even just, like you said, the realities of zoning and the realities of trying to create new development in already existing communities. Where did it not really succeed for him, or what would he or you look back and say, well, this is where it failed?

    Liz Cohen:  Well, I think New Haven, in the end, was not a great model, as I’ve said. And part of it was that’s what everybody was doing, and that’s what the government regulations that were tied to these housing acts required. But there certainly wasn’t the input from the communities that were being affected. There was a lot of clearance and destruction. There was, in retrospect, a big mistake in clearing downtown and putting in a shopping mall that mimicked what was happening in suburban New Haven. They thought that the best way to compete with the suburban shopping centers, which were popping up all over the city, was to make downtown into its own shopping center and to have an adjoining parking garage, which a major architect, Paul Rudolph, designed.

    And that turned out to be a total failure, and it’s still a struggle today. The shopping center doesn’t really exist much anymore, it’s become a community college, and one effort after another to keep downtown New Haven viable. So that was really kind of a failure. But it was happening all over the country also, that effort. How do you compete when all the retail is leaving? So I would say New Haven was kind of a failure.

    I think he was successful with Government Center in Boston, which was based on the notion that if we put the resources of government at every level, from the city, to the county, to the state, to the federal government, invested in a government center near the downtown of Boston, we can use that as leverage to get the private sector to also invest in downtown buildings and not flee the city and go to the suburbs, as was happening. And I think that was successful. So though there certainly was criticism, and there still are people who hate the Boston City Hall, but I think that was successful.

    The neighborhood efforts in Boston were more mixed. There he struggled. Some neighborhoods really welcomed the Boston Redevelopment Authority. And interestingly, the neighborhoods that welcomed them were not just upper-class white neighborhoods. But there was a neighborhood called Washington Park in Roxbury, which was basically the major place where middle-class Blacks could own homes. And they were feeling very threatened by a lot of displacement that was happening from neighboring communities like the South End. And they welcomed Logue and urban renewal to their neighborhood as a way of trying to preserve the middle class character of their neighborhood.

    Now, there were other parts of Roxbury that pushed back much more, Madison Park neighborhood of Lower Roxbury, for example, and were able as a result, to get more housing out of the BRA than was originally planned. So even where the neighborhood work in Boston was not as successful as one would hope, it did encourage a lot of community mobilization and taught people that they could become pressure lobbies for getting more resources out of the Redevelopment Authority and more subsidized housing than might have been in the original plan. So even where there was a mixed history, I do think there were some positive outcomes in that communities really learned how to mobilize and get benefits.

    Taya Graham:  One thing you keep mentioning is having a vision or having a plan, that Logue had a plan. But today, in many cities, just like in my hometown, Baltimore, development seems to be driven by tax incentives and private developers with very little mention of urban planning, or even a plan at all. How would you contrast this with the era that Logue worked in? What do you think he would say about this mostly private profit-driven process? And what’s your take on it in terms of strengths and weaknesses?

    Liz Cohen:  Well, Ed Logue watched this transition take place. As I mentioned, it really takes off in the 1980s. And at that time, he’s working in the South Bronx as head of a small organization called the South Bronx Development Organization. And that was a crucial moment, I think, in his career when he finally realized that planning with people had to really mean talking to people. And he started to work with a local CDC called the Mid Bronx Desperadoes, with the community planning boards, there was one in the South Bronx that he worked very closely with. So he started to realize he had to do that.

    But he was also watching, much appalled as time went on – He died in 2000 – And returned to Boston in 1986 to see how little the federal government was engaged and how much influence the private sector was gaining. So this happened in his lifetime, and he often said, you can’t trust the private sector to protect the public interest. And that became his slogan, and he believed in it.

    And he saw happen what has only become more so, which is that we are very dependent on strategies of private sector initiative, whether it means companies that shop around, like Amazon did, among cities to see which city will give them the best deal, the best tax breaks, best tax incentives, and they play one city against each other. So it becomes a race to the bottom among cities to offer the best deal. And then those deals often mean for cities that they’re taking on costs of transportation, of delaying getting the taxes that they should get and are so dependent on for their city services.

    We’re also now dependent on strategies like vouchers, housing vouchers, and low income tax credits as our housing policy. The housing vouchers still depend on private landlords to accept them. These are vouchers that people want to be able to shop or move themselves to communities that they think are better serviced, have better schools, may have better transportation, and so forth. But you have to get a landlord to accept that voucher, and many landlords won’t because they worry that their housing won’t be as appealing to market price housing customers.

    And then the low income tax credits, which is the major way that we’re building any subsidized housing nowadays, requires companies to be looking for tax shelters and therefore investing in these tax credits at the state level, And then the state gives them out to private developers so that they can reduce the cost of the rental units in their projects. But that depends on companies needing those tax shelters, doing well enough and having high enough corporate taxes that they feel like they need the tax shelters. So these are all, I think, very inadequate strategies.

    I would add to it that some cities are doing things that are the best they can do, which is to have inclusionary zoning, which means that they require of private developers that they put aside a certain proportion of the units in their buildings for people who will be able to qualify because of their income, they may make 60% of the average income of the community, or it might be set at a different rate. That number varies by city. In Boston it’s now, I think, 17% of the units – That’s pretty high for many cities.

    There also is the danger, and this is something that happened in New York, that there be a separate door, the red door that is the part of the building for the subsidized housing, and that this is a lower grade quality of housing, and that’s not a solution either. It needs to be integrated.

    Another thing that some cities have done, and Boston has tried this, has been linkage fees, where a developer might want to do a market rate project downtown, not necessarily have the inclusionary zoning requirement, but will pay into a fund which will make money available to build housing in neighborhoods where there is a great need and they may be more low-income neighborhoods.

    So there are a lot of strategies. But what runs through all of those strategies is a dependence on the private sector. So I would say that given all of the flaws of federal or renewal – And there certainly were a lot: much too much clearance, a lot of red tape, still a lot of authority in the hands of developers, but public officials were in the driver’s seat, and there were federal funds available. So we were not completely dependent on what the private sector decided it wanted to do.

    Stephen Janis:  Thank you so much for all these great answers. This is the last question. So in cities like Baltimore, Detroit, Chicago, places we’ve reported on, what can residents who want development to be more equitable and progressive learn from your book? What lessons should we try to apply today, and how should the methods of the past be discussed in the context of today’s debate? What are the lessons you would take forward to say, hey, this could actually help improve and create a more progressive landscape for development in cities like Baltimore and beyond?

    Liz Cohen:  Well, I can prescribe what I think should happen, but no, it’s not likely to happen. So some of the values that Logue had of seeing the urban issues as metropolitan ones, sharing the burden, therefore. Understanding that communities do need to have input, but we cannot go down the road of full NIMBYism and say, yes, on the one hand, I want to see lots of affordable housing, but not in my neighborhood. We have got to build density around transportation, and we have to allow that diversity in our own communities.

    I think this is hard for people because in the case of most Americans, their greatest asset is their home, and the property value that they have often depends on the exclusivity of their investment and their community. So they’re very afraid to say, okay, I’m going to allow diversity on my block, in my town, in my neighborhood. But we’re not going to get out of this mess unless people are willing to have it happen in their own backyard. So I think there has to be a recognition that it’s a good thing to have mixed income and racial residential life and what that means, that it doesn’t just mean that we change what cities look like. It means we also have to change what suburbs look like.

    Let’s see… I think that we have to find a balance between planning for a city as a whole, but also moving more incrementally than in the urban renewal era where there were big plans and probably too much taken on at once, but see this as a more gradual process where there can be more community input. So these are very sensitive balancing acts, I think. But there needs to be a commitment, I think, on the part of people at all income levels to let this happen.

    And another thing that I think is important is we need to try to salvage what’s left of public housing. There was a lot built starting in the 1930s and more into the 1940s, and then we kind of abandoned building any, and we have also abandoned maintaining public housing. And still the waitlists are filled with thousands of people who would like to live in public housing despite all of the problems, perhaps, that they have. I think that housing could be good housing if they were kept up, the elevators hadn’t failed, if the grounds were kept up, if the apartments and kitchens and bathrooms were modernized. But there is no maintenance budget for most public housing, and that is a real shame.

    Stephen Janis:  Well, professor, I appreciate it. Let me just say this, that I think everyone who is interested in a city, not just urban development or urban planning, should read Saving America’s Cities. I found it, as a reporter, to be crucial and provide critical context to this question, and more specifically, a history of how we got where we got, which is something that is sometimes missed by us reporters who tend to dwell in the present. Wouldn’t you agree, Taya?

    Taya Graham:  I’d have to agree. And I think what the professor quoted Mr. Logue saying, essentially, that you cannot trust private actors to protect public interest, I think those are words of wisdom that can apply to almost every aspect of American governance today.

    Stephen Janis:  So professor Cohen, thank you for joining us. And like I said, we recommend the book, and we will continue our investigation into tax breaks in Baltimore called Tax Broke. Thank you for joining us.

    Liz Cohen:  And thank you for having me. I’m glad to have had the opportunity.

    Taya Graham:  Thank you so much.

    This post was originally published on The Real News Network.

  • In an era of Donald Trump and a Republican Party dedicated to eradicating liberal democratic order to solidify its political hegemony, New York Times columnist David Brooks—like fellow Times columnist David French and the Atlantic‘s David Frum—appears to be a sane voice of the old-school conservative movement. In short, a Never Trumper.

    Fox News: Anti-Trump NYT writer shocks with column bashing 'elite' as self-dealing jerks: 'We're the bad guys'

    Fox News (8/3/23): “David Brooks…admitted he and the so-called ‘elite’ have used self-serving tactics to maintain power and a sense of moral superiority over the Trump supporters they detest.”

    It might initially come as a surprise, then, to see his response to the latest Trump indictment (New York Times, 8/2/23) drawing praise from the right-wing press for seeing the political elite from Trump supporters’ point of view. Fox News (8/3/23) said that Brooks’ column exposed the anti-Trump class as “self-dealing jerks.”  Seth Mandel (Twitter, 8/2/23), executive editor of the Washington Examiner, said the piece achieved a “quality reached a few times a year by a few writers,” and with dizzying circular reasoning declared it would “be criticized angrily because it shows empathy and elite introspection, which will prove it correct.”

    Brooks’ column encouraged anti-Trumpers (among whom he includes himself) to think of themselves as “the bad guys,” because while they diagnose the Republican base’s unflagging support for its leader as rooted in bigotry and resentment, it actually derives from “the class war between the professionals and the workers.” Brooks, enlightened member of the professional class that he is, understands “why people in less-educated classes would conclude that they are under economic, political, cultural and moral assault.” He asserted, “They’ve rallied around Trump as their best warrior against the educated class.”

    But Brooks engaged in a trick he’s used his entire career. He presents himself as an expert on salt-of-the-earth residents of the Heartland whom elites have ignored and wronged, so our critical gaze should be cast on supposedly progressive elite institutions, not bigotry and authoritarianism—or on the real causes of the economic inequality he bemoans.

    ‘Walking on eggshells’

    NYT: "What if We’re the Bad Guys Here?"

    David Brooks (New York Times, 8/2/23): “It’s easy to understand why people in less-educated classes would conclude that they are under economic, political, cultural and moral assault—and why they’ve rallied around Trump as their best warrior against the educated class.”

    The reason it comes across as plausible is that Brooks does get part of the story right. He writes that elites “marry each other and pass their exclusive class privileges down from generation to generation,” and that “members of our class are always publicly speaking out for the marginalized, but somehow we always end up building systems that serve ourselves.”

    It’s true that the US ranks lower on inequality and social mobility than most other wealthy nations. But Brooks would have readers believe these problems come primarily from cultural norms, not economic policy. He offers one sentence each on “free trade” and “open immigration”—defying the evidence that immigrants don’t erode the wages of native-born workers—followed by three paragraphs on liberal cultural factors. The first deftly flips the script, making the oppressed the oppressor:

    Like all elites, we use language and mores as tools to recognize one another and exclude others. Using words like “problematic,” “cisgender,” “Latinx” and “intersectional” is a sure sign that you’ve got cultural capital coming out of your ears. Meanwhile, members of the less-educated classes have to walk on eggshells because they never know when we’ve changed the usage rules so that something that was sayable five years ago now gets you fired.

    In reality, it’s people who identify as Latinx, think intersectionally or who aren’t cisgender who have to “walk on eggshells”—not because of a social stigma, but because of punitive laws passed by authoritarian legislatures:

    • Arkansas has banned “most state agencies from using the gender-neutral term Latinx” (AP, 1/22/23).
    • “Florida has ‘effectively’ banned the Advanced Placement Psychology course from being taught in classrooms over lessons on gender identity and sexual orientation” (Daily Beast, 8/3/23).
    • Sixteen states have passed laws against the use in schools of Critical Race Theory—which embraces intersectionality—with the state of North Dakota banning the idea that “that racism is systemically embedded in American society and the American legal system to facilitate racial inequality.”
    • State-level laws against trans rights are rising at such a frightening pace, trans people are seeking refuge in some of the places Brooks frowns on as bastions of elite-driven intolerance (Teen Vogue, 8/3/23).

    Who monopolizes cultural power?

    ABC: Anheuser-Busch to lay off hundreds of workers after Bud Light boycott hammers sales

    When Wall Street punishes a beer company for merely including a trans woman in a promotional campaign (ABC, 8/3/23), in response to a boycott promoted by right-wing media (Media Matters, 4/6/23), who is it that really controls our culture?

    Brooks might have missed that it is, in fact, the anti-trans movement that nearly monopolizes American cultural power. A conservative backlash to Bud Light’s sending a novelty beer can to a trans actress has led to a devastating loss for the beer’s parent company (CNN, 8/3/23). Yet while liberals talk about boycotting fast-food chain Chick-fil-a over its anti-gay positions (LA Times, 7/23/12; Yahoo, 7/15/21), the company is clucking along undeterred (Franchise Times, 4/6/23; USA Today, 7/27/23).

    While Brooks decried that being unhip when it comes to trans terminology gets you fired, the reality is that, according to research by McKinsey, “nearly 30% of transgender people in the United States are not in the workforce and are twice as likely as the cisgender population to be unemployed.”

    This led Brooks into a discussion of how, because “we” (meaning the professional class) “eroded norms that seemed judgmental or that might inhibit individual freedom,” having children out of wedlock has become more normal:

    After this social norm was eroded, a funny thing happened. Members of our class still overwhelmingly married and had children within wedlock. People without our resources, unsupported by social norms, were less able to do that. As Adrian Wooldridge points out in his magisterial 2021 book, The Aristocracy of Talent, “60% of births to women with only a high school certificate occur out of wedlock, compared with only 10% to women with a university degree.” That matters, he continues, because “the rate of single parenting is the most significant predictor of social immobility in the country.”

    That’s a neat trick how the college-educated persuaded high school graduates to have children without getting married, by continuing to have children while married. (That Murphy Brown storyline must have been very persuasive!) One might more plausibly attribute changes in unwed birthrates to new reproductive technologies than to cultural messages created (but not heeded) by the professional class.

    It is not social norms, though, that make single parenthood a roadblock to climbing the ladder; it is the lack of economic support and protection for people with children. If Brooks wanted parenthood to be seen as a way to thrive rather than an enormous burden, he’d be advocating for free reproductive care, subsidized daycare, more parental leave and other economic supports that exist elsewhere in the wealthy industrialized world.

    ‘It’s not the entrepreneurs’

    Throughout the piece, Brooks conflates the college-educated with the wealthy, writing that anti-Trumpers are those with “high-paying professional jobs” who have won the “competition for income and status.” This helps him perform the sleight of hand that replaces an economic identity with a cultural one. While it’s true that voters with a college education tended to favor Biden and those without favored Trump, that difference disappears (and even slightly reverses) for non-white voters—an important point when you’re making sweeping generalizations about social class, and trying to argue this has nothing to do with bigotry.

    NYT 2020 Exit Poll: What was your total family income in 2019?

    If only people making less than $50,000, or less than $100,000, had voted in the 2020 election, Joe Biden’s victory would have been a landslide. If only people making more than $100,000 had voted, the landslide would have gone to Donald Trump. (Graphic: New York Times)

    But it’s also true that in the 2020 election, Trump lost among voters making less than $50,000 by 11 percentage points, while winning with those making more than $100,000 by 13 points. Even among white voters alone, the over-$100,000 crowd tilted toward Trump more heavily than the under-$50,000 crowd. Contrary to Brooks’ entire thesis, Trump’s base is the economically better-off, while the worse-off went for Biden—demolishing the columnists’ claim that we should sympathize with those who rally around the indicted Trump as the desperately downtrodden.

    One could almost miss it, but Brooks gave away the ruse entirely when he said that Trump “understood that it’s not the entrepreneurs who seem most threatening to workers; it’s the professional class.” While posing as an anti-Trump conservative, Brooks supports the fiction that Trump, a billionaire, is right that the real threat to workers aren’t the bosses who move jobs overseas, bust unions or advocate against workplace safety standards, but rather some annoying grad school brat on the West Coast reading Judith Butler.

    It’s easy to write this off as David Brooks being David Brooks. But this is coming out when vitriol coming from the former president and his political movement—an often violent and fascistic movement—has reached a fever pitch. Brooks and the Times are playing the tired role of using petty cultural politics to ignore economic reality and portray the Republicans as the voice of working America (FAIR.org, 10/9/15, 3/30/18, 11/13/18).

    The column is yet another example of the Times, a mouthpiece for the ruling economic order, stoking a fiction about cultural divides to distract from brutal class inequality driven by politicians from both parties.


    Featured Image: Photo of Trump supporters that accompanied David Brooks’ New York Times column (8/2/23).

    The post Brooks’ Defense of Trump Defenders Disguises Where Real Power Is appeared first on FAIR.

    This post was originally published on FAIR.

  • In recent years, several countries have made updates to their nonbinding emission reduction plans as part of the Paris Agreement. These Nationally Determined Contributions (NDCs) state how each country intends to reach its goals by 2025 and 2030. This decade is deemed by scientists to be crucial for our plans to halt global warming and stay below a 2.0ºC (2 degrees Celsius) warming increase — or 1.

    Source

    This post was originally published on Latest – Truthout.

  • Two years ago, I was nearly caught in the crossfires of teenagers shooting at each other in northwest Washington, D.C. I was on the phone with my mother when I heard a blast go off just inches away from me. I can still feel the kickback of the gun reverberate across my skull. Had I not run into traffic to save my life, chances are my mother would’ve been subjected to hearing her daughter get shot…

    Source

    This post was originally published on Latest – Truthout.

  • The expanded child tax credit, signed into law by President Joe Biden more than two years ago, provided families with children with monthly installments of $250 or $300, reduced rates of child poverty, and served as a lifeline for low-income families. The tax credit expired after the 2022 tax year, and efforts to revive it were unsuccessful. In its absence, local and state organizers and advocates…

    Source

    This post was originally published on Latest – Truthout.

  • Social media has been in uproar over now-renamed Keir Starmer’s announcement that the Labour Party will keep the two-child limit on benefits like Universal Credit. So-called “Sir Kid Starver” has briefed his front bench to hold the line over the controversial plan. However, the fuss over the policy fails to put it into context: that the Tory-created cap on benefits is little more than Eugenics, to stop poor people having kids.

    Two-child limit: a devastating policy

    Sir Kid Starver told BBC hack Laura Kuenssberg on Sunday 16 July that Labour would not scrap the two-child limit policy if it won the next election:

    As the Canary previously wrote, the Department for Work and Pensions (DWP) brought in the Tory policy:

    on 6 April 2017. It meant the DWP would only pay Child Tax Credit and Universal Credit for two children in a family; any more than this the DWP would not count in benefits calculations.

    The policy has been controversial. A court ruled in June 2017 that the policy was “discriminatory” against single mothers with children under two. Then, in April 2018, another court said the cap was unlawful. This was in relation to young carers. The so-called ‘rape clause‘, where women have to prove they’ve been raped to get an exception to the two-child limit, also sparked outrage.

    The policy has been devastating. The two-child limit affects one in 10 children. The Child Poverty Action Group (CPAG) says the policy is “one of the biggest drivers” of child poverty  – and figures show this. By 2020, there was a near-10% increase in poverty among families with three or more kids. The policy has cut over £5bn from people’s benefits. Plus, the CPAG recently found that over 110,000 kids were hit by both the two-child limit and the equally obscene benefit cap.

    Labour: doubling down

    With this in mind, you’d think Sir Kid Starver would consider it wise to scrap the policy, especially given the £1.3bn cost of doing this is less than half a percent of total DWP budget. But no – once a Red Tory, always a Red Tory. Moreover, shadow culture secretary Lucy Powell doubled down on Sir Kid Starver’s pledge while doing the breakfast media rounds on Tuesday 18 July:

    People are rightly furious:

    A lot of people are also pointing out the cruelty of the two-child limit:

    Note as well that Sir Kid Starver is supporting a policy that’s just a little bit systemically racist (no surprise there, given his own racism):

    However, what most people failed to mention was that when you actually break the two-child limit down, it is dripping in Eugenics.

    Sir Kid Starver: supporting Eugenics

    As the Canary previously reported, after the Tories brought in the two-child limit, abortion rates among women who already had two or more kids increased rapidly. However:

    The Canary analysed the birth rates for women by socioeconomic status; that is for the richest and poorest women.

    Our research found that birth rates fell generally between 2017 and 2019. But we found the biggest falls were among the poorest households. For example, between 2013 and 2016, birth rates in four bottom deciles (10%’s of population) fell overall by 0.9%. Then suddenly, between 2017 and 2019, this accelerated to a 12.4% fall in birth rates. This fall also correlated with an 11.74% increase in abortions – and the poorest women were having abortions at over twice the rate of the richest.

    What does this mean?

    Well, it’s hard not to look at the figures and think that the Tories intentionally designed the two-child policy to stop poor people having children. As the CPAG noted:

    If these findings are related to the two-child policy, it is horrifying. China’s one-child policy was driven by burgeoning birth rates. We have sub-replacement fertility. There is no other country in history that has adapted social security policy to increase child poverty to reduce fertility or encourage abortion. It is a completely outrageous assault on liberty.

    That is – the Tories introduced a policy to socially engineer certain groups of people to stop them having kids. This is Eugenics in all but name – and the evidence backs up that assertion. Now, with Sir Kid Starver and Labour supporting it, they’ve shown their true colours – and there’s no red anywhere to be found.

    Featured image via Channel 4 News – YouTube, and Political TV – YouTube

    By Steve Topple

    This post was originally published on Canary.

  • With the school holidays set to begin in the UK, the issue of child poverty has once again come to the forefront. Children who receive free school meals during term time may go without over the holidays. This leaves parents “faced with the grim choice of going hungry, getting behind on essential bill payments or taking on debt to cover” the cost. So, the People’s Assembly has announced a national day of action to take place on 22 July 2023. In the runup, it’s targeting supermarkets and the government over “gross profiteering”.

    A growing problem

    At the beginning of the 2022 summer holidays, Katie Schmuecker of the Joseph Rowntree Foundation said:

    In the midst of a year of financial fear for families on low incomes, parents of school-age children are now facing the summer holidays and all the extra meals and childcare that comes with them. Too many families lack the income to cover the essentials and are already regularly going without them, including food.

    She added:

    Now, more than ever, they [families] will be faced with the grim choice of going hungry, getting behind on essential bill payments or taking on debt to cover it.

    The People’s Assembly suggests little has changed since then, with the reality being that the situation may actually have worsened.

    Child poverty: taking action

    According to government figures, 23.8% of pupils received free school meals – a figure which “represents over 2 million pupils”. The figure is also up from 22.5% in 2022. And according to the Big Issue, the problem of child poverty likely runs deeper than those figures suggest:

    Around 14.4 million people are living in poverty in the UK in 2021/2022, according to the government’s official statistics. That is around one in five people. Around 4.2 million children are affected.

    These harrowing figures were captured before the cost of living crisis took its toll on the country, driving hundreds of thousands more people into poverty.

    So the People’s Assembly has spoken out against what it calls “obscene profiteering” from supermarkets. It says they “are shamelessly cashing in on the cost of living crisis”. The group’s day of action over child poverty will take place on the first day of the school holidays. It corresponds with a list of demands, including:

    • Immediate supermarket price reduction – profits must be used for lower food prices and higher wages for supermarket workers.
    • Government price controls on food to make it affordable for everyone.
    • A raise in wages, benefits and pensions to create hunger free communities!
    • Free school meals for all children.

    According to the group itself, People’s Assembly “formed a decade ago to campaign against the Conservative Government’s austerity program”. It recently “put on waves of demonstrations around the UK in response to energy price hikes back in February 2022″.

    ‘Devastating’ effects

    Economist and long-standing supporter of the People’s Assembly Michael Burke said:

    These demonstrations are vital and we hope that thousands will turn out across the country. Everyone should have a basic right to food & no child should be left hungry this summer. As millions of us struggle to pay our basic food bills, the government and their profiteering backers blame inflation on wage growth. However, the real crisis is food price inflation as wage growth is just a third of the 19% inflation rate of food this year.

    The effects are devastating – in 2010 there were 50 Trussell Trust foodbanks. Now the number of foodbanks has reached 2600. NHS England reports a quadrupling of poverty diseases such as scurvy and rickets over the last 15 years as well as malnutrition. All this while in recent weeks Tesco’s, Iceland and Sainsbury’s have all reported surging underlying profits.

    The People’s Assembly said it “has local groups across the UK” and “they expect thousands to turn out at the protests which will target supermarket profiteering and what the groups describe as ‘deliberate inaction’ from the Tory government”. Organisers added:

    We’ve already been faced with 13 years of Tory austerity, services have been cut to the bone and families are struggling to survive, The Cost of Living Crisis could be brought under control by the Government, yet they are allowing gross profiteering from Supermarkets and energy companies. At the end of the day this is just the latest form of austerity as it serves exactly the same purpose – the transference of wealth from ordinary working class families to the super rich.

    People’s Assembly National Secretary and former Labour MP Laura Pidcock said:

    With 4.2 million children in poverty, the situation families are facing is grim. Summer holidays are always a particularly difficult financial time for parents and carers. Extreme wealth inequality and grotesque levels of poverty are becoming endemic in the UK and people are absolutely sick of platitudes about “hard decisions” from both sides of the Westminster political establishment.

    The People’s Assembly website includes more details about the day of action as well as local actions around the UK.

    Featured image via Francisco Osorio (Flickr) – image cropped to 770 x 403

    By The Canary

    This post was originally published on Canary.

  • Some 50 million people in the United States live in poverty today—and over 108 million people survive on less than $55,000 a year. Despite having the largest economy on earth, poverty in the US is often grinding and brutal. From millions who live without running water or reliable power, to countless children who experience food insecurity and homelessness. The data on poverty only becomes exacerbated when race is taken into account. In 2019, the median White household had a net worth of $188,200, compared with $24,100 for the median Black household. Matthew Desmond joins The Chris Hedges Report to discuss his new book, Poverty, by America, which delves into the reality of American poverty not as a condition earned by individuals’ poor choices, but a phenomenon produced by the knowing and unknowing choices of the wealthy.

    Matthew Desmond is the Maurice P. During Professor of Sociology at Princeton University. His primary teaching and research interests include urban sociology, poverty, race and ethnicity, organizations and work, social theory, and ethnography. In 2018, Desmond’s Eviction Lab at Princeton University published the first-ever dataset of more than 80 million American eviction records. The Lab currently is pursuing nearly a dozen lines of inquiry analyzing this groundbreaking dataset that will help scholars, policymakers, and advocates better understand eviction, housing insecurity, and poverty. 

    Studio Production: David Hebden, Adam Coley, Cameron Granadino
    Post-Production: Adam Coley


    Transcript

    The following is a rushed transcript and may contain errors. A proofread version will be made available as soon as possible.

    Chris Hedges:

    According to the Center on Poverty and Social Policy at Columbia University, 14.3% of Americans, nearly 50 million people, were living in poverty as of last December. “If America’s poor founded a country,” Matt Desmond writes in his book, Poverty, By America, “That country would have a bigger population than Australia or Venezuela.” Almost one in nine Americans, including one in eight children, live in poverty. There are more than 38 million people living in the United States who cannot afford basic necessities, and more than 108 million getting by on $55,000 a year or less, “Many stuck in that space,” he writes, “between poverty and security.” More than a million of our public school children are homeless, living in motels, cars, shelters, and abandoned buildings. More than two million Americans don’t have running water or a flushing toilet at home. “These statistics,” he writes, “are bad enough. But when seen through the lens of institutionalized racism, they are even worse.”

    In 2019, the median White household had a net worth of $188,200, compared with $24,100 for the median Black household. “And yet,” as Desmond writes, “spending on the nation’s 13 largest means tested programs, aid reserved for Americans who fall below a certain income level, went from $1,015 a person the year Ronald Reagan was elected president to $3,419 a person one year into Donald Trump’s administration. That’s a 237% increase.” Why does poverty on this scale exist given our affluence? Desmond argues that poverty in America is not an accident. It is by design. “The majority of Americans,” he writes, “benefit from a system that callously exploits the poor.”

    Joining me to discuss his book, Poverty, by America, is Matthew Desmond, Professor of Sociology at Princeton University. Matt, you write about what you call a hard bottom layer of deprivation, a kind of extreme poverty once thought to exist only in far away places, of bare feet and swollen bellies. And this is the one in 50 Americans who receive no cash income. I just want to begin there. If you can talk about the consequences of this extreme poverty, which I should add, coming out of the New York Times, it’s been rendered virtually invisible by the media.

    Matt Desmond:

    Well, it’s good to see you, Chris. Thanks for having me. For my last book on eviction, I lived in two very poor neighborhoods in Milwaukee and saw a kind of poverty that I’d never seen before, never experienced before myself. I saw grandmas living without heat in the winter in mobile homes, just piled under blankets and praying the space heater didn’t go out. It was routine to see children being evicted. If you’ve ever been to eviction court, you just see a ton of kids running around those courts and being put out on the streets every single day in a city like Milwaukee. And so I think that that really sharpened and focused what I understand to be American poverty today.

    Poverty is measured as an income level but, of course, it’s this piling on of problems and adversities and humiliations. It’s that nauseating fear of eviction. It’s telling your kids they can’t have seconds. It’s debt collector harassment. It often is physical pain and toothache on top of getting roughed up by the police, living in slum housing conditions. And that kind of tight knot of social maladies is what poverty in America is today for those at the very bottom.

    Chris Hedges:

    Well, it’s what Barbara Ehrenreich called living in poverty: one long emergency. And I think you raised that in the book, that it has consequences. Not just social and economic consequences, but deep emotional and psychological consequences because it’s constant trauma. But this is not something that I knew before I read your book. Because we have this argument that we’re always in austerity programs, slashing programs. “We got to cut the military budget,” which I think we do. But what you lay out is that we’ve increased spending on means tested programs 130% between 1980 and 2018, from $630 to $1,448 per person, but poverty’s gotten worse. And I’ll let you explain why. What’s happened to that money?

    Matt Desmond:

    So this is a paradox, and I’d like to spend a little bit of time on that if it’s okay with you. So a lot of times when people see that paradox, they’ll say, “Okay, spending on poverty has gone up,” but poverty’s been pretty persistent over the years. If you look at the supplemental poverty measure, which captures a lot of that spending, 50 years ago, it was about 15%. 40 years after that, it was 15%. Really stable. The supplemental poverty measure dipped down a little bit before COVID, and then it plunged actually during the pandemic because of this incredible historic bold relief from the government. But what’s going on? And some people say, “Well, if we’re spending more and not really helping the problem, those programs won’t work,” and that’s just false. That’s empirically false. There’s a ton of research that shows that government programs are effective, they’re essential, they prevent millions of families from hunger and homelessness each year.

    So what’s going on? What explains this paradox? And what explains it is that the job market isn’t really pulling its weight and we’ve failed to address the unrelenting exploitation of the poor in the labor market, but also in the housing and financial markets as well. So if you look at when the War on Poverty was launched in the Great Society in 1964, these were deep investments in the poorest families in America, right? This was making food aid permanent, expanding social security, founding Medicaid. And those programs, 10 years later after they were launched, they cut the poverty rate in half, but they weren’t fighting poverty alone.

    One in three workers at that time belonged to a union. Real wages were increasing. You had some prosperity in the labor market and the labor movement was strong. But as workers lost power, the job market got a lot worse, wages stagnated, and so now we have to spend more to kind of stay in the same place. And I think this is fundamental for those of us who care about ending poverty in America today because it means we don’t just need deeper investments. We need different ones, ones that really cut at the root of poverty.

    Chris Hedges:

    Well, you also point out that the way this money is distributed has changed dramatically. Clinton’s destruction of the welfare system meant the money was sent to the states. And you noted in the book not only how difficult and complicated it is to apply for assistance, but you had to figure that over a billion dollars of social security funds are spent not on getting people disability, but on getting lawyers so they can get disability.

    Matt Desmond:

    Right. I learned this when my friend Wu was going through the process. Wu and I lived together in Milwaukee and he stepped on a nail in this rundown apartment we shared in a rooming house, and his leg got infected. And he has diabetes and that infection was accelerated by that, and the doctors eventually amputated his leg. He was one of the hardest working guys I knew. He was a security guard. He often worked double shifts, was out all hours of the night, but he couldn’t work after they took his leg. And so we applied for disability together and the application got rejected. And to Wu, this was a normal thing. He was like, “Well, I got to hire a lawyer now.” And so working on contingency, the lawyer kind of fought for Wu. And if they win, they get a chunk of the back pay. That’s what happened to my friend.

    Wu got about $3,600 in back pay. He used it to buy a wheelchair-accessible van that ran for a few years and then caught on fire. And his lawyer took $400. Wu never lost any sleep over that, but it was hard for me to get over the fact that every year, a billion dollars, billion with a B, doesn’t go to folks like Wu, right? It goes to lawyers to help folks like Wu get on disability. And so part of the mystery, part of the paradox, is that a dollar in the federal budget doesn’t necessarily mean a dollar in a family’s hand.

    Chris Hedges:

    Well, you also write in the book how money that’s supposed to go to the poor gets diverted by states in particular.

    Matt Desmond:

    Yeah. That’s right. So if you look at cash welfare, Temporary Assistance to Needy Families, or TANF, this is a big program. It’s about $32 billion a year and it’s a block grant, which is just a fancy, wonky way of saying, “Okay, states. Here’s the money you can decide how to spend it.” And man, states are very creative about how they spend those welfare dollars. Maine uses them to fund Christian summer camps. Other states use those funds to fund anti-abortion education, abstinence-only programs, marriage initiatives, things that don’t really have anything to do with helping the poorest kids and the poorest parents.

    And some states don’t even spend the money. So last time I checked, Tennessee was sitting on over $700 million in unused welfare funds. Hawaii was sitting on so much, they could give every poor kid in their state $10,000. And so you’re right. Because we’ve kind of allocated this money in a way that doesn’t give the government, the federal government anyway, kind of oversight, states have really used this in ways that don’t directly impact the poorest families and their borders.

    Chris Hedges:

    Do you have a theory as to why? Why would you sit on $700 million that should go to the poor?

    Matt Desmond:

    It’s a good question. I mean, it’s hard to think this is by accident, right? Every state does this except Kentucky. Kentucky is the only state in the nation that spends most of its cash welfare dollars on direct assistance to needy families. But for most other states, it turns out that $1 budgeted for cash welfare, only 22 cents ends up in the pockets the poor, and it’s hard to read that as an accident. It’s hard to read that as something other than by design and kind of a state-sponsored callousness, and a negligence to alleviating the suffering of the poorest families in the country.

    Chris Hedges:

    I want to go to the American Enterprise Institute. They have their three steps to avoid poverty and they are: graduate from high school, obtain a full-time job, wait until you get married to have children, and then these steps are called the Success Sequence. And then one of their studies found that only 2% of people who completes the sequence were poor in 2007, compared to 76% of people who violated their three rules. I mean, you just ripped apart the data, but this is the classic kind of subterfuge. It’s right up there with welfare queens. But explain what they’re doing and what the reality is.

    Matt Desmond:

    I wish it were that simple. I truly do. I wish that all we needed to do was follow these three steps. It’s a little confusing because this is the stuff we tell our kids. “Work hard, study hard, graduate from high school, put off having kids for a while,” and I think that’s good parenting advice. But good parenting advice isn’t necessarily good social theory. And when you look in the data, you realize that most of that benefit is just driven by getting a full-time job.

    Chris Hedges:

    Yeah.

    Matt Desmond:

    If you’re getting a full-time job, it is a clear pathway out of poverty sometimes. But if you look at the data, more people followed the Success Sequence than didn’t who were poor. And the difference between Black Americans who followed the rules and White Americans who did, there’s big differences. Black folks are far less likely to escape poverty, even when they check all three of those boxes. And I just also think as someone that’s spends a lot of time in poor neighborhoods that have family and dear friends that are struggling with poverty, for folks that have faced serious adversity since birth, asking them to just get a good job and just delay having kids, it’s kind of asking them to have a different life sometimes.

    And I don’t think that we devalue the importance of work or education or marriage when we just kind of say, “This isn’t going to cut it.” And I think the international comparison for me is really telling. We have so much more poverty than many of our peer nations. And it’s not because folks in Germany or South Korea or Canada are working harder or are playing by the rules better than we are. There’s something deeper in our system that needs to be addressed.

    Chris Hedges:

    There was an interesting point you made in the book about or challenging this orthodoxy, this economic orthodoxy that says that raising the minimum wage leads to higher unemployment, and you kind of imploded that theory. Explain.

    Matt Desmond:

    So this has been a concern for a lot of us for a long time and it started in with the 40s. There was an economist named George Stigler and he said, “Look, we can’t raise a minimum wage because that’s going to cost jobs. If you’re an employer and you have to pay your workers more, you’re going to hire fewer of them.” And he wrote a paper on that and it became kind of canonical in economics. But if you read the paper, you realize there’s no data in the paper. It was just kind of an elegant theory and it kind of makes sense. When you hear it, you say, “Okay, that makes sense.” But in 1994, a couple of economists at Princeton, they realized there was a natural experiment going on. New Jersey was going to raise its minimum wage and Pennsylvania wasn’t, and they said, “All right, let’s test Stigler’s hypothesis. Let’s see if he’s right,” and it turns out he was wrong.

    It turns out there was a lot of job growth, actually, in New Jersey and not in Pennsylvania. So in that case, it wasn’t that New Jersey lost a lot of jobs. It gained them. And so since that time … and that paper came out in 1994, which is a bombshell paper … economists have done a lot of studies looking into the effects of raising minimum wage on employment. And the best studies have found that the effect is really negligible. We can’t absolutely raise the minimum wage without costing jobs in this country. And again, if you look at Denmark, the guy that’s flipping burgers over there is paid twice as much as the guy that’s flipping burgers here, and somehow their country hasn’t collapsed into ruin. And so I also think it’s important to ask another empirical question on the minimum wage, which is what happens when we don’t? What do we cost people. We cost them life and family and health. We cost them kind of a full existence in the richest country on the planet. I think that’s another question that’s worth exploring too.

    Chris Hedges:

    Well, you have a character. I mean, you juxtapose what happens when his minimum wage salary is raised in terms of his lifestyle, in terms of stress, the ability to be with family, all of that as you point out. You go back a lot in the book to the importance of raising wages, but also unions. And of course most people in unions are firefighters, nurses, police, other public sector workers. Nearly all private sector employees, that’s 94%, are without a union. And I wondered if you could just address what that has meant for the working class and the working poor, and then also this idea that non-unionized businesses, as anti-union champions claim, are somehow more productive.

    Matt Desmond:

    So if you look in modern history and you ask, “When was the most economically equitable time in our country? When was CEO pay reigned in and worker pay climbing?” That was in the 70s, and that was when worker power was at its max, when unions kind of were at their full strength in America. And that wasn’t a perfect time by any means. I mean, we have to address the fact that many unions were racist. They barred Black and Latino people from their ranks, but they also did massive good to raise wages for the rank and file, including the poorest paid workers and including people in non-unionized shops, right? Because if you were working in a union shop and right across the road was a non-unionized shop, the non-unionized guys were like, “Man, Chris is going to come. There’s no way my workers are going to work for me if I don’t get up to those union standards.”

    But as workers lost power, as unions were attacked as manufacturing left the country and unions lost their traditional power base, worker power stumbled, and that’s when you saw this massive pay raise for the richest Americans in the country, and that’s when you saw wages starting to stagnate. So between 1945 and 1979, real wages, inflation-adjusted wages, increased by about 2% every year. So you had a job. You had some room for advancement. Your pay went up every year. You had some benefits. But since 1979, real wages have only increased by about 0.3% a year. And for men without a college degree, their inflation-adjusted wages today are less than they were 50 years ago. This has to be addressed. We have to address exploitation in the labor market. And if we don’t do that, we’re going to kind of be in this place where we’re spending more to stay in the same place.

    Chris Hedges:

    And this raises a point you make in the book that when you’re not paying workers even a subsistence salary, it’s not work that keeps poorly paid workers from poverty, but the state. And then I just wondered if you could explain what you call the new fissured workplace?

    Matt Desmond:

    Yeah. It’s not my term. It’s been around for a while in social science. But basically, it means there used to be a time where if you worked for Ford, you worked for Ford. Ford signed your paycheck and you were an employee of Ford. But today, if you look at Apple and Google and many of our biggest corporations today, most people that work for those corporations don’t work for Apple and Google. They’re independent contractors and there’s kind of a two-tiered system of work. There’s software engineers and corporate bosses and attorneys, and they work for Google and there’s strong benefits, strong pay. But then there’s a lot of independent contractors that the room for advancement is really tough, almost impossible sometimes. The wages often are stagnant. The benefits are not really there.

    And so this is a way to have a very profitable work environment, but one that comes at a cost for all those folks that really are our gig workers. And I think that when we think of the gig economy, we usually think of Uber and Lyft and TaskRabbit and DoorDash, places where we really are interacting with the gig economy. But there’s gig workers in universities and hospitals and hardhat jobs. It’s an incredibly big and growing part of our economy now.

    Chris Hedges:

    And we should just be clear, a gig worker, you don’t have benefits. You don’t have job protection. You don’t have health insurance. I was just part of the strike of adjuncts, at Rutgers. You have people teaching full course loads trying to live on $28,000 a year. One of the things I found really interesting in the book, which I wasn’t aware was true for low wage workers, and that is how employers make it difficult for workers to leave for other jobs, for better jobs, by having them sign these non-disclosure contracts.

    Matt Desmond:

    Yeah. This was really shocking to me as well. So let’s say you’re working at Subway Sandwiches, and you’ve been working there for a couple years and you’ve got a lot of skills in that kind of work, and you want to take your skill set to the Jimmy Johns down the road or another deli and kind of use this power workers have. The power to quit to get better jobs. A lot of companies are making these low level, low pay, poorly paid, I should say, workers sign these non-disclosure agreements and non-compete agreements saying, “You can’t go and get another job for six months after you quit.” And ostensibly, this is to protect intellectual property. But a lot of times, corporations are using it just to delude and push down worker power. And so, again, we can’t abolish poverty in this country if we don’t find a way to increase worker power across the board.

    Chris Hedges:

    Algorithms. You say they’ve proven to be more exacting bosses than people, which I guess anyone who’s read anything about Amazon will understand, and the stress. But talk about how algorithms are used and low wage work.

    Matt Desmond:

    One of the things we’re seeing is how algorithms and other AI technology are really used to measure worker productivity by measuring the number of mouse clicks and keystrokes, even use of heat sensors and other kind of tech technology to really have an exacting and never resting, that’s an eye that never blinks, look at workers. And you might think, “Well, only workers at the bottom of the pay scale are affected by this,” but it’s not true. The New York Times had a bracing reporting that showed that chaplains at hospices, therapists, are under these regimes as well. And so workers have lost power, but companies have become productive, and that’s the classic definition of exploitation.

    Chris Hedges:

    You have a chapter called How We Force the Poor to Pay More, and I wondered if you would explain how this works, including what you call mortgage deserts, the effects of overdraft fees, check cashing stores, denial of credit, payday loans, this kind of predatory inclusion.

    Matt Desmond:

    Yeah. So I’ve used the word exploitation a few times in our conversation. And to some, that’s kind of a charged scary word., But to me it just means when you don’t have a lot of choice, people can take advantage of you. And we’ve all been in this situation, no matter our station in life. We’ve been in a situation where we’re in a pinch and we just have to pay for it. But for poor families, that’s kind of their existence. And when you look at housing, for example, most poor families have just one choice about where to live. They’re shut out of homeownership, not because they can’t afford a mortgage, but banks don’t want to do business with them, and they’re shut out of public housing because we just don’t have enough of the benefit to go around. And the waiting list for public housing now is not counted in years. It’s counted in decades.

    So they’ve got one choice. They rent from a private landlord, and if they’re below the poverty line, they spend most of their income on housing costs. And if you look at the profit margins of landlords across the country, you realize those that are working in poor neighborhoods are not just making more, but often are making double. Landlords and affluent neighborhoods, and the reason is pretty clear. The operating costs in poor neighborhoods are a lot lower than they are in affluent neighborhoods, but rent is not that much lower. And so this is how the poor are paying more for housing. Where if you look at financial exploitation, every year, $11 billion in overdraft fees, $1.6 billion in check cashing fees, almost $10 billion in payday loan fees pulled from the pockets of the poor. This is $61 million in fines and fees every single day. So when James Baldwin remarked how incredibly expensive it is to be poor, he couldn’t have imagined these receipts.

    And I want to kind of bring this to a personal level with us. Who benefits from this? Who benefits? So if you look at the financial exploitation, some banks and payday lending companies benefit, but many of us do too because our free checking accounts aren’t free. It turns out they’re subsidized by all of those fines and fees piled on the backs of the poor. Only 9% of bank customers pay 84% of overdraft fees. They’re the poor made to pay for their poverty. So this is another move that I’m trying to make in this book. It’s about policy, it’s about movements, it’s about politics, but it’s also personal. It’s about many of the decisions we make every day and how we’re connected to the problem and the solution.

    Chris Hedges:

    Well, this gets to the tax breaks for the middle class and the wealthy. $1.8 trillion in tax breaks. That’s mortgage interest deduction. That allows 13 million Americans to keep $24.7 million, and you call this the invisible welfare state. And that gets to the point you were just making, that those who have means are the ones who benefit and profit from this system. Because if those tax breaks weren’t there and that money was directed towards the vulnerable, it would go a very long way to alleviating poverty in the United States.

    Matt Desmond:

    Yeah. I mean, many of us don’t think of a tax break as a government program, and I get it. “Taxes should hurt,” Reagan famously said, and they do in the country. But if you think about it, a tax break and a housing assistance voucher, they’re the same. They both cost the government money. They both put money in our pocket. They both benefit a family. And so a 15-story public housing project and a mortgaged suburban home are both government subsidized, but only one looks and feels that way. And this really blew me away when I kind of calculated the bottom line of what the government does for us.

    If you add up all the tax breaks and all the social insurance programs, and all the means tested programs like food stamps and Medicaid, you learn that every year, the average family in the bottom 20% of the income distribution, our poorest families, they get about $26,000 from the government. But the average family in the top 20%, our richest families, they get about $35,000 every year from the government. That’s almost a 40% difference. That’s the true nature of our welfare state. We give most to families that have plenty already, and then we have the audacity to look at a program that would reduce child poverty, or make sure everyone could have a doctor, and we just ask, “How could we afford it?” which to me is a sinful question and a dishonest question because the answer staring us right in the face. We could afford it if the richest among us took less from the government.

    Chris Hedges:

    Right. And you’re very clear that the two political parties are not about to pull these kinds of tax breaks in this invisible welfare state because of the political backlash. And you have called for a campaign to abolish poverty in the face of this kind of rigged system. What do you propose? How do you think we can dig our way out of this monstrosity?

    Matt Desmond:

    Right. So we need deeper investments in fighting poverty and a clear way to fund those deeper investments is through tax fairness. A study published a few years ago found that if the top 1% of Americans just paid the taxes they owed, not paid more taxes, just stopped evading taxes so successfully, we as a country could raise an additional $175 billion a year. That’s enough to reestablish the child tax credit that we had in COVID that cut child poverty almost in half in six months. $175 billion is almost enough to pull everyone above the official poverty line. So we have the resources. We could do this. And it’s not just deeper resources, though, that we need. We need different programs. We need policies that cut poverty at the root. And so this is finding ways to increase worker empowerment and expand the choices of families so they don’t get this best bad option when it comes to where they live and how they can access their money and their credit. So we need to address exploitation in the labor, housing, and financial markets.

    And then the third move is we have to tear down our walls. Many of us continue to live in incredibly segregated societies. We build walls around our communities made up of laws, and we hoard opportunity behind those walls. And that concentrates affluence, but it also concentrates poverty. And so we have to strive and work for more inclusive, open communities. That’s the third move we have to make. And this is a political project. It’s a policy project, but it’s a personal one too. Poverty abolitionists strive to work for that in their consumer choices, their investment decisions. They do things like vie and fight for a government that makes deep investments in the poorest families in America, and they’re anti-segregationists and anti-exploitation. And that’s a personal thing that we can all take up on a day-to-day basis to start building up political will to really make pressure be felt at the highest levels of government.

    Chris Hedges:

    Great. That was Matt Desmond on his book, Poverty, by America. I want to thank the Real News Network and its production team, Cameron Granadino, Adam Coley, David Hebden, and Kayla Rivara. You can find me at chrishedges.substack.com

    This post was originally published on The Real News Network.

  • By Rachel Banen

    See original post here.

    The recent court-enforceable settlement agreement between the city of Minneapolis and the Minnesota Department of Human Rights could be a historic step in combating police brutality. However, the agreement fails to contextualize police brutality as a byproduct of poverty. By failing to recognize the role of poverty in over-policing, it disincentivizes the city, and the state from instituting long-term, anti-poverty measures, such as guaranteed basic income that would address a root cause of crime that in turn plays a role in police brutality. 

    The popular narrative that systemic racism solely explains police brutality is overly simplistic given that poor people are more vulnerable to police brutality than their more affluent peers. One study, for instance, found that Black men who make less than $49,000 were significantly more likely to report police use of force during their most recent street stop than Black men with incomes of $50,000 or more. Researchers also discovered that white women who make less than $49,000 experienced “significantly more police use of force than” than white women who make $50,000 or more. Systemic racism is a significant factor in police killings, but a complex interplay of gender, race, sexuality and socio-economic status affects a person’s chances of experiencing police brutality. 

    This phenomenon would seem to match data from Minneapolis. According to the Neighborhood Poverty Project, Philips, Cedar-Riverside, Central, Stevens Square, Downtown West, and Camden are neighborhoods with large numbers of people of color that are persistently poor. Seward, Como, Marcy Holmes, Near North, Willard-Hay and Hawthorne are also diverse neighborhoods with deepening poverty. The MPD Crime Dashboard reports that the same neighborhoods are the locus of most police involvement.

    Consider this: George Floyd was killed in Central, while Amir Locke was killed in Downtown West, two of the neighborhoods that have the greatest concentrations of people of color and are persistently poor. What if we saw police brutality as a phenomenon of killing poor people, who are disproportionately people of color? 

    The Minneapolis City Council understands police brutality as a failure to provide a public safety system that meets collective safety needs, in addition to a police force that does not comply with human rights law. The city aims to eliminate police brutality with three overarching goals: Reducing the amount of force during police incidents; limiting police-citizen interactions; and interrupting violence before it begins. 

    The city has multiple pilot alternative response programs, which include a mobile behavioral health team that responds to mental health crises rather than law enforcement; 911 dispatch that assesses behavioral health calls; and non-police city staff that collect theft and property damage reports. Violence prevention programs send unarmed citizens to identify and calm conflicts before they lead to serious violence. MPD is prohibited from pulling people over for broken taillights and expired tabs, which are two of the most frequent ways that citizens interact with the police. MPD is also banned from using no-knock warrants, choke holds, and neck restraints. 

    Despite the bevy of reforms that will hopefully save lives, current policy fails to address the underlying issue of poverty — Minnesota needs to establish a guaranteed basic income program. While Minneapolis and St. Paul are currently piloting a GBI program, many other cities have successfully demonstrated the success of GBI in reducing poverty levels. 

    Since 1982, Alaska has given every citizen an annual check, which has led to a reduction in poverty rates by 2.3 percentage points on average between 2011 and 2016; about 25% more people would have fallen below the poverty threshold without guaranteed cash assistance 

    In Stockton, California, 125 people were given $500 a month over an 18 month period. Researchers found that guaranteed income led to greater financial stability. California recently announced a pilot GBI program, but results are not published. 

    The Legislature this past session debated several tax reforms that could, at least partially, fund a GBI program. A ban on international corporate profit shifting via worldwide combined reporting and a fifth state income tax tier, which would establish a 10.85% tax rate on high-income Minnesotans, are among the ideas. 

    The Legislature passed a tax rebate and a highly progressive child tax credit, which are versions of GBI, but more needs to be done. With universal basic income, we can eliminate the reasons for police intervention, which primarily entail theft, property damage and other non-emergency crime. Reducing inequality alters the cost-benefit calculation of criminal acts by reducing desperation. Because cash transfers reduce poverty, they decrease the perceived benefits of crime, and consequently, violent police intervention.  

    The post Opinion: We can reduce police brutality with guaranteed basic income appeared first on Basic Income Today.

    This post was originally published on Basic Income Today.

  • In the 1990s, the construction of a new sports arena in Chinatown brought the Washington Bullets (now the Washington Wizards) to the heart of DC. The cost of this move was felt deeply in Chinatown, as several blocks of residences and small businesses were flattened to make way for the multimillion dollar project. Decades later, the Wizards are now considering an exit from DC for Virginia. As has been noted on the show before, these massive sports teams moves primarily benefit owners and their cronies in industry, who stand to benefit from vacuuming massive quantities of taxpayer money into their own pockets. Edge of Sports breaks down how the flight of sports teams from DC could once again come at Chinatown’s expense.

    Click here for the full episode

    Studio Production: David Hebden, Cameron Granadino
    Post-Production: Taylor Hebden
    Opening Sequence: Cameron Granadino
    Music by: Eze Jackson & Carlos Guillen


    Transcript

    The following is a rushed transcript and may contain errors. A proofread version will be made available as soon as possible.

    Dave Zirin:

    Okay, look, for those who do not know, we record and produce this TV show in the great city of Baltimore, a place with a sports history, as rich as any in the worlds of pro baseball and football, but without an NBA team. This was not always the case. In 1963, Baltimore got a team as the Chicago Packers moved to town and called themselves the Baltimore Bullets. Then a decade later, the Bullets left Baltimore for the DC suburbs, first as the Capital Bullets in Landover, Maryland outside of DC. They eventually became known as the Washington Bullets.

    The story continues. In 1997, the team dropped the bullets name because of concerns of owner Abe Pollin, that they were glorifying violence. They became the Wizards. But with that rebranding, the team enacted a different kind of violence, this kind cruel and cold, with prophets running rough shot over the people. Pollin moved the team to a brand spanking new arena in the heart of DC’s Chinatown, irrevocably changing the area.

    The arrival of the arena was like a bomb going off, flattening the entire community. It signaled the end of Chinatown as a place where actual Chinese and Chinese American families lived and ran shops and restaurants. Instead, it became a neighborhood that adapted to the stadium, as developers tore down local businesses in favor of high-end chains with impossibly bright signage. And of course, in a nod to what was, the names of the restaurants are spelled out in tiny Mandarin lettering, beneath the big signs writ large, promising high end gluttony, either before or after the game. A community had been replaced by a brand.

    That shoddy Blade Runner-esque landscape is what exists now in the Chinatown corridor. And so it has been for a quarter century. But now, there are reports that the Washington Wizards are planning their fifth move in 60 years, with an eye on tax breaks and public funds that could be accrued by hightailing it to the Commonwealth of Virginia, along with the NHL’s Washington Capitals, and perhaps even the WNBAs Washington Mystics who are playing in a brand new arena themselves in Southeast DC.

    Franchise owner Ted Leonsis who bought the team from Abe Pollin, has decided that threatening to move the teams, straight extortion, is the way he wants to do business with the city. Let’s forget a moment that 70 million was spent to refurbish the arena just two years ago. Let’s forget that if this move happens, the team will either call themselves the Virginia Wizards, which sounds more KKK than a pack of Marlboros, or remain the Washington Wizards, keeping the commercial branding while abandoning the city, a total slap in the face.

    Forget that if they dare continue the tradition of playing Welcome To DC by go-go Legends Mambo Sauce in the arena, it would be yet another slap in DC’s face by a feckless franchise that hasn’t won 50 games in a season since Jimmy Carter was president. Also forget that while Northern Virginia is close, it’s psychologically and politically for a lot of folks in DC, a whole other world. Forget all of that.

    What is truly vexing me, what’s really grinding my gears, is that this team is now threatening to gut the same neighborhood for the second time in a quarter century. What is going to happen to all those big box bars and restaurants in Chinatown? If the arena leaves, will they be able to stay open? No. Will Chinatown magically come roaring back? No. Instead, we’ll be left with a ghost town of boarded up restaurants, with tumbleweed lazily being blown across Seventh Street.

    This is maddening. An utterly venal effort aimed at extorting more money out of a city and a budget crunch. Team owner, Ted Leonsis, might as well be saying, “Nice neighborhood you got here. Be a shame if something happened to it.”

    Look, if you know me, you know what my solution to this would be? The city should seize the Wizards, pay off Leonsis and have the team become the most lucrative public utility in the city. Enough with franchise owners coast to coast, threatening our cities for more public welfare during a time of rising inequality and infrastructure degradation. I mean, a portion of I95 quite literally collapsed. And yet, new sports arenas is where the Ted Leonsises of this world are saying we should be spending our precious public funds. So, if you want to break it down to a slogan, save DC save the Wizards, seize the team.

    Well, that’s all the time this week. Thank you, Dr. Harry Edwards. Thank you to the team here at The Real News Network. If you are listening right now, if you are watching, please stay frosty, stay safe. We are out of here. Peace.

    This post was originally published on The Real News Network.