Opinion

The Great Debate

from Breakingviews:

Modi’s big win gives India way out of policy limbo

By Andy Mukherjee 

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

Indian voters have just handed Narendra Modi their most decisive mandate in 30 years. The opposition politician’s landslide win ends a tortuous era of coalition politics that has stymied policymaking. It also offers India a way out of its current limbo.

Though all the votes have not yet been counted, Modi’s Bharatiya Janata Party is on track to capture a few more seats than the 272 it needs for a simple majority in the lower house of parliament. No single party has managed to do that since 1984, when Rajiv Gandhi won a landslide victory following his mother Indira’s assassination. The BJP-led coalition’s tally will likely cross 325.

Investors, who pushed up Indian stocks more than 1 percent on the news, have reason to cheer. The scale of the pro-business politician’s victory, which was predicted by just one exit poll out of seven, removes any doubts about the stability of the government. It is highly likely to last its full five-year term. Knowing this, it is extremely improbable that Modi will let pesky coalition partners undermine major policy decisions.

Besides, Modi won’t need to curry favour with allies by distributing ministerial jobs. This means his cabinet will be small and tightly knit – with the prime minister’s office in control of economic policy. Bureaucrats, too, will tread with caution, and think twice before doing major harm, like the retrospective change to India’s tax code they introduced in the 2012 budget.

To police Wall Street, go after the little guys

steinberg777

On Friday U.S. District Judge Richard Sullivan will sentence former SAC Capital Advisors hedge fund manager Michael Steinberg for his conviction in December on five counts related to insider trading. Steinberg is one of two former SAC employees whom federal prosecutors believe have firsthand knowledge of insider trading by SAC’s founder, Steven Cohen. Cohen has not been charged with any crime. Though Steinberg will likely receive a lengthy prison term, neither he nor Mathew Martoma, an SAC colleague convicted in January, is — at least publicly — cooperating with the government.

Prosecutors have been targeting Cohen in their sweeping crackdown on insider trading. Yet as a deterrent against future crimes, Steinberg’s conviction — like scores of others in the past several years — is even more valuable. Conventional wisdom holds that landing the big fish in high-profile white collar cases is the best deterrent against other people breaking the same laws. Yet for would-be criminals, the arrest of a colleague or a peer at another fund has a more personal, harrowing effect than the takedown of a less-relatable outlier like Cohen.

This generation’s insider trading crackdown is different from the one in the 1980s, when prosecutors punished big names like Ivan Boesky and Michael Milken — and in doing so, sent a message. While a handful of crooked investment bankers helped bring down Boesky and Milken — though Milken for crimes other than insider trading — those investigations didn’t expand like they have today.

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.

As a member of the advisory committee that developed the final proposal, here are four lessons from Seattle that would help other wage-hike proponents replicate our model.

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.

mcmoneyBut in New York last week, I met fast-food workers from around the world who aren’t as lucky as I am. We marched through Midtown Manhattan demanding a fair wage and respect at the workplace.

Gitmo: Too dangerous to release? Not so fast.

File photo of detainees sitting in a holding area at Naval Base Guantanamo Bay

When the National September 11 Memorial & Museum opens Thursday, we will finally have a national institution dedicated to exploring the effects of the tragic events of the 9/11 terrorist attacks.

The impact of that day on U.S. legal institutions, however, remains a work in progress. The federal court system has proven remarkably adept at handling the hundreds of criminal terrorism cases filed since Sept. 11, 2001. But the polarized politics of terrorism has left Washington paralyzed when it comes to handling the cases of dozens of indefinite detainees still imprisoned at Guantanamo Bay, Cuba.

In New York last week, the U.S. government rested its case against the one-eyed, hook-limbed Sheikh Abu Hamza al Masri, on trial in federal court on terrorism charges. For weeks spectators were treated to a string of government informants, including confessed terrorism supporters, who seemed to have no qualms about taking the witness stand and incriminating the fiery preacher the government says inspired and directed lethal acts against Americans. In April, another extremist cleric, Suleiman Abu Ghaith, was convicted based on similar evidence.

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.

The spread of the fast-food movement to the global stage is notable for the speed at which it has happened. What began as a single strike in New York City in November 2012, with roughly 200 workers participating, has in 18 months spread across the country and now across national borders. The efforts of fast-food workers have captured the nation’s attention, been featured in President Barack Obama’s speeches on inequality and inspired local elected officials to raise minimum wages.

from Breakingviews:

What Lagarde should’ve told Smith College’s grads

By Christopher Swann and Rob Cox
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

International Monetary Fund boss Christine Lagarde wimped out of speaking at Smith College’s commencement after a student petition accused the fund of supporting “patriarchal systems.” The fund has made many mistakes over the years. But that critique is mostly old hat. The IMF, particularly under Lagarde, has fostered social spending and championed female rights. Here’s what she ought to have told the 672 women graduating from the university in Northampton, Massachusetts on May 18.

Women of Smith

Congratulations on graduating from one of the world’s greatest women’s colleges. I understand that many of you had reservations about having me as your speaker. Student opposition also recently caused former Secretary of State Condoleezza Rice to cancel a similar address to the students at Rutgers.

from Breakingviews:

FCC needs thick skin to weather its moment in sun

By Daniel Indiviglio and Robert Cyran
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The U.S. Federal Communications Commission will need thick skin to weather its moment in the sun. The usually low-profile telecom watchdog is tackling flashy issues involving mergers, internet neutrality and wireless spectrum. Resolving them won’t be easy, given the agency’s mandate to spark competition while also promoting efficiency and consumer choice. Current commissioners seem up to the challenge.

Chairman Tom Wheeler, a former lobbyist and telecommunications entrepreneur, leads the panel of three Democrats and two Republicans. Their experience as lawyers and legislative aides and with state regulation should help in navigating a long list of politically and technically difficult tasks.

Tracking the Nigerian kidnappers

nigeria -- candlelight vigil

Abubakar Shekau, the purported leader of Boko Haram, ignited international outrage when he announced that he would sell more than 200 of the kidnapped Nigerian schoolgirls “in the market.” Nations around the globe offered help to Nigeria.

Getting back the more than 200 Nigerian girls who were kidnapped from school a month ago will require a deep understanding of the environment the extremist group that took them operates in.

Thanks to some new tools, and the spread of some older technologies, crucial data can be gleaned to show where the kidnappers, Boko Haram, may be holed up. Everything from cell phone usage to weapons acoustics to satellite imagery can help build a more complete picture of the group and its activities.  Possibly even a map.

Brown v. Board of Ed: Key Cold War weapon

neier top -- better!!

The U.S. Supreme Court’s unanimous decision in Brown v. Board of Education, issued on May 17, 1954, is probably the most important judicial decision in American history.

This week, on its 60th anniversary, the landmark ruling is being celebrated for its historic role in committing the United States to ending legal racial segregation and establishing the courts as a forum in which to secure enhanced protection of rights. All subsequent court decisions advancing the rights of those who have suffered discrimination are built on Brown.

There is another reason, however, that the decision was especially important.  The Brown ruling greatly advanced the interests of the United States during the Cold War, when the nation was vying with the Soviet Union for global influence. The Truman administration recognized this in the early 1950s, when it filed a friend of the court brief with the Supreme Court in December 1952, calling for the result that the court announced 17 months later.

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