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from The Great Debate:

Today’s South is boldly moving backward

mahurin for bishop

We used to call it the “New South.” That was the era after Reconstruction and before the Civil Rights laws -- when the states of the old Confederacy seemed most determined to preserve a social and economic order that encouraged low-wage industrialization as they fought to maintain Jim Crow.

What was then distinctive about the South had almost as much to do with economic inequality as racial segregation. Between roughly 1877 and 1965, the region was marked by low-wages, little government, short lives and lousy health -- not just for African-Americans but for white workers and farmers.

Volkswagen employees work on the assembly line of the 2012 VW Passat in Chattanooga TennesseeThe Civil Rights revolution and the rise of an economically dynamic Sun Belt in the 1970s and ‘80s seemed to end that oppressive and insular era. The Research Triangle in North Carolina, for example, has more in common with California’s Silicon Valley than with Rust Belt manufacturing. The distinctive American region known as the South had truly begun to vanish.

This is the thesis of economic historian Gavin Wright’s new book on the economic consequences of the civil rights revolution, Sharing the Prize. Ending segregation, Wright argues, improved the economic and social status of both white and black workers The South became far less distinctive as wages and government-provided benefits increased to roughly the national level.

from MacroScope:

Why EU elections can matter

Some interesting action over the weekend: in a foretaste of this week’s EU elections, Greece's leftist, anti-bailout Syriza party performed strongly in the first round of local elections on Sunday, capitalizing on voter anger at ongoing government austerity policies.

If it did even better in the EU polls it could threaten the ruling coalition and tip Greece back into turmoil just as there are signs that it has turned the corner.

from The Great Debate:

Four lessons from Seattle’s 60 percent minimum wage hike

protest555

Today, fast-food workers in 150 cities across America and 30 countries across the world are striking over what they say are low wages and unfair working conditions in order to achieve what Seattle is very close to implementing: a $15 per hour minimum wage.

The Seattle proposal is a giant experiment. Developed by a committee of business, labor and community representatives convened by Seattle Mayor Ed Murray, the proposal could be implemented as early as October. The wage hike would be the largest of any city in the country: a $5.68 per hour increase over 2.5 years for Seattle’s largest businesses. An estimated 100,000 workers would be affected; by one estimate the proposal would put $2.9 billion into the wallets of low-wage workers over the next 10 years. Other cities have raised their minimum wage without lasting negative impacts on the economy, but no other increase was as big as this one.

from The Great Debate:

I’m making $21 an hour at McDonald’s. Why aren’t you?

mcdonalds -- topI work for McDonald’s and I make $21 an hour.

No, that isn’t a typo. It’s really my salary.

You see, I work for McDonald’s in Denmark, where an agreement between our union and the company guarantees that workers older than 18 are paid at least $21 an hour. Employees younger than 18 make at least $15 -- meaning teenagers working at McDonald’s in Denmark make more than two times what many adults in America earn working at the Golden Arches.

To anyone who says that fast-food jobs can’t be good jobs, I would answer that mine isn’t bad. In fact, parts of it are just fine. Under our union’s agreement with McDonald’s, for example, I receive paid sick leave that workers are still fighting for in many parts of the world. We also get overtime pay, guaranteed hours and at least two days off a week, unlike workers in most countries. At least 10 percent of the staff in any given restaurant must work at least 30 hours a week.

from The Great Debate:

The fight for a global minimum wage

Demonstrators gather during a nationwide strike and protest at fast food restaurants to raise the minimum hourly wage to $15 in New YorkOn Thursday, fast-food workers in more than 30 countries across six continents will take coordinated action on an unprecedented scale. In the United States, they will walk off their jobs in 150 cities -- the largest strike ever. Workers around the world will join these protests in 80 cities.

The protestors are set to take over a McDonald’s during lunchtime rush hour in Belgium; hold flash-mobs at McDonald’s restaurants across the Philippines, and conduct a teach-in at McDonald’s headquarters in New Zealand.

from The Great Debate:

Why not a war on child poverty?

President Barack Obama’s recent speeches at the LBJ Presidential Library and National Action Network marking the 50th anniversary of the War on Poverty and the Civil Rights Act had a serious omission. While acknowledging “our work is unfinished,” Obama failed to mention this nation’s worst social trend: the stunning increase of children and youth living in poverty.

Since 1969, the proportion of children and youth in poverty rose by 56 percent, even as the economic fortunes of the elderly improved under programs like Medicare and Social Security. Today, 32 million American children and youth are confronting poverty -- including 7 million suffering utter destitution, another 9 million living in serious poverty and 16 million more in low-income households struggling just above poverty lines.

from The Great Debate:

Executive orders: Part of the framers’ grand plan

President Barack Obama has used his executive authority to stop deporting undocumented immigrants who had been brought to the United States as children. The administration has also announced that it will stop requesting mandatory minimum sentences for low-level, non-violent drug offenders.

Obama is now using executive orders and other unilateral exercises of executive power to advance his agenda rather than wait on Republicans in Congress.

from Breakingviews:

U.S. is minimum-wage laggard given its prosperity

By Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

America is a minimum-wage laggard – at least relative to its economic prosperity. With Washington considering a higher pay floor and Peru’s prime minister losing his job over the issue, a Breakingviews analysis shows that minimum wages as a percentage of local income levels are still low in the United States and, for instance, in neighboring Mexico.

from The Great Debate:

On minimum wage: Mind the Gap

Just 24 hours after Senate Republican Leader Mitch McConnell (R-Ky.) warned that raising the minimum wage to $10.10 per hour from $7.25 would deal a “devastating blow to the very people that need help most,” Gap Inc. announced it would raise employees’ minimum pay to $10 per hour by next year.

In striking contrast to the alarms sounded by McConnell, Gap chief executive officer Glenn Murphy emphasized the benefits of this pay raise for the company’s lowest-paid workers. He described it as a “strategic investment to do more for our employees” -- one that  will help “attract and retain a skilled, enthusiastic and engaged workforce.”

from The Great Debate:

FDR set the terms for labor executive orders

Many critics have called President Barack Obama’s executive order raising the minimum wage for federally contracted workers an unprecedented bold action. The president bypassed a gridlocked Congress to increase pay to $10.10 an hour -- and raise labor standards for the only federal workers directly within his authority.

This move is a significant step in combating income inequality. The federal government is the largest low-wage job creator -- with more than 2 million low-wage workers. That’s more than Wal-Mart and McDonald’s combined.

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