Caucus 12.4.12: Walmart Labor - A Better Life For All

TOPIC: The economics of low-wage retail workers

Ho, ho, ho, happy shopping, I mean holiday, season

During this time of the year when so many Americans are focused on buying crap they don't need, I thought it would be appropriate to examine the plight of the American retailer worker, with no better example than the workers of Walmart.  In light of the nationwide labor action on Black Friday protesting Walmart's policies toward pay and compensation of its workers, this issue is now on the front page of news outlet and ripe for further discussion.  Here are some articles on the overall importance of the labor movement, a news account on the Walmart labor actions, and a more comprehensive study on the bad economics associated with low pay retail workers.  Looking forward to the discussion.

http://prospect.org/article/if-labor-dies-whats-next

http://www.theatlantic.com/business/archive/2012/11/whos-really-to-blame-for-the-wal-mart-strikes-the-american-consumer/265542/

http://www.demos.org/publication/retails-hidden-potential-how-raising-wages-would-benefit-workers-industry-and-overall-ec

Caucus 10.2.12: The Underwater Generation - To Walk Or Not?

"Nearly half, or 48%, of all mortgage borrowers under age 40 are underwater." What is the impact and implications of this reality for the "underwater generation"?

At our next Caucus (as always the first Tuesday of the month), 10.2.12 @ The Jade Garden from 7:30 to 9:00pm, we will look to discuss the many questions and challenges that this current real estate debacle has produced. 

A few articles to wet the pallet for our round table, which can also be found at caucuspost.org:

The stark numbers, here.

To walk or not? An examination of the "moral norms" influencing underwater homeowners reasoning in what is at its core an a moral capitalist endeavor, here. 

Seattle Weekly's Tales from the Housing Bust

The Stranger's But there is a catch

Role for government to intervene? Eminent domain

Should be a good one. Looking forward to it.

Caucus 9.4.12: Federal Budget Proposals & Visions For Government

Ahh the smell of convention season... Smells like _______ . 

One of the fun little topics that likes to get thrown around festively at these rip-roaring events is the health and size of the Federal Budget, and by extension the role and effectiveness of the US government.

At our next Caucus, we will delve into the nitty gritty of the budget proposal that the Grand Ol' Party is rolling out in 2012 and what it says about its vision for government.

Some materials to help wet the appetite for The Jade, Tuesday 9.4.12 from 7:30-9:00pm:

The first is from the Tax Policy Center, here.

Some additional data from Ezra Klein at The Washington Post, here and here.

As well as a concise and entertaining (yes, there is video!) breakdown of Obama's 2013 Budget, here.

Caucus 8.7.12: Tax Reform Legislation

First Tuesday of the month coming next week, which means one thing: Caucus. 7:30pm - 9:00pm @ Jade Garden.

Chris Kagi will be moderating our discussion that will tackle issues of tax reform. Per Chris:

In every election year taxes are a big issue and it is clear with the deficit reduction requirements that are coming it will take center stage with the economy.   For the August Caucus we will be discussing the pros and cons of different tax structures and the conversations in DC that may change the current system or keep it in place.

A quick piece from the Christian Science Monitor on the question of fairness - here

This is a quick piece on tax reform legislation in the 80’s compared to now - here

Also the issue of a Flat Tax always comes up.  Here are two articles from opposing sides.

Pro - here

Con - here

See you on Tuesday!

Caucus 7.3.12: Why Women Still Can't Have It All

"We hold these truths to be self-evident that all men are created equal..." Great. We celebrate this, but what does it signify for American women in 2012?  

At our next Caucus, scheduled (as always) for the first Tuesday of the month, July 3, 7:30pm to 9:00pm @ Jade Garden, we will delve into the conclusion drawn by Anne-Marie Slaughter: "Why women still can't have it all."

"It’s time to stop fooling ourselves, says a woman who left a position of power: the women who have managed to be both mothers and top professionals are superhuman, rich, or self-employed. If we truly believe in equal opportunity for all women, here’s what has to change."

This June Atlantic Monthly cover story has sparked a lively debate, and inspired a wide spectrum of opinion and perspective. The Atlantic has provided several here. 

No better time than days patriotic to convene and discuss our most pressing issues.    

Hope to see you out. Bring along those who are interested.

Caucus 6.7.12: The Shrinking Political Middle

Same time, 7:30pm. Same place, the illustrious Jade Garden.  

Theme:  The Shrinking Political Middle

Moderator: Michael Tamayo

Moral Roots of Liberal and Conservatives:

http://www.ted.com/talks/jonathan_haidt_on_the_moral_mind.html

Online bubbles and how they reinforce political ideology

http://www.ted.com/talks/eli_pariser_beware_online_filter_bubbles.html

The End of the Middle of Everything (It's only the Monarchy and the Mob)

http://www.huffingtonpost.com/howard-fineman/election-2012-lost-middle-consensus-internet_b_1502845.html

Plutocracy, Paralysis, Perplexity

"Washington is marked by a combination of bitter partisanship and intellectual confusion — and both are, I would argue, largely the result of extreme income inequality."

Fighting words from Krugman.

The Amazon Dilemma

So good to have a Sherman Alexie from and in Seattle. Interestingly enough, this post came out in his weekly "Text from South Lake Union"column in The Stranger the day after our discussion.   

Caucus 5.1.12: Amazon, Wal-Mart in the Sky?

On the occasion of May Day, we'll convene at the usual time and location: Tuesday, May 1, 7:30pm at the Jade Garden (424 7th Ave. S., Seattle).

This month's discussion will focus on Amazon.com.  The Seattle Times ran a broad four-part series about Amazon's business practices, from its tax strategy to its relative lack of local corporate philanthropy.  The Times caught some flack on the grounds that they were knocking a major local employer (and one that could relocate...), but the Times was praised by others for exposing the "Wal-Mart in the sky," which subjects many workers to poor conditions while skimping on taxes and failing to contribute at home.

There's an interesting conversation about the issues explored by the Times, whether people choose smaller retailers over Amazon, etc.  I think that there's probably a deeper set of questions around being a consumer in the the Internet age, and the ways in which the Internet makes us more informed consumers but more disconnected from our merchants.

Homework is pretty light: read the series (on your Kindle) and come with some thoughts.  Even if you're not planning to come, the series is worthwhile.

Caucus 4.3.12: Iran - Bluster or Legitimate Threat?

Nine years ago, March 19, the US invaded Iraq under the pretext of Weapons of Mass Destruction. Now we hear saber rattling on Iran under the ruse of their pursuit of nuclear capabilities. 

Where is this chest puffing leading us? What does it say about the Obama administration's foreign policy? Is there a definitive "Obama Doctrine"?

There is a ton of material out there on this subject. I recommend three citations:

"Moving Beyond War." Bill Moyer interview with Andrew Bacevich. Either 53min video or audio can be found here.

"Time to Attack Iran? A Debate." Opposing views on televised debate moderated by Foreign Affairs, here.

"A Middle Course on Iran." To contain Iran, or to preempt? That is, at present, the question, here.

See you on Tuesday. 

Lobbyists, Guns and Money

By PAUL KRUGMAN

Florida’s now-infamous Stand Your Ground law, which lets you shoot someone you consider threatening without facing arrest, let alone prosecution, sounds crazy — and it is. And it’s tempting to dismiss this law as the work of ignorant yahoos. But similar laws have been pushed across the nation, not by ignorant yahoos but by big corporations. 

Specifically, language virtually identical to Florida’s law is featured in a template supplied to legislators in other states by the American Legislative Exchange Council, a corporate-backed organization that has managed to keep a low profile even as it exerts vast influence (only recently, thanks to yeoman work by the Center for Media and Democracy, has a clear picture of ALEC’s activities emerged). And if there is any silver lining to Trayvon Martin’s killing, it is that it might finally place a spotlight on what ALEC is doing to our society — and our democracy.

Full article here.

Moments of Truth - Goldman

Every great once and awhile a time comes when truth sees the light of day: Goldman Sachs.

Derivative Follow-Up

We had yet another thought provoking roundtable. Special thanks to Matt Elley for facilitating.  Below are a few follow-up links that were referenced during the discussion. Enjoy!

On the origins of the mathematical equation that led so many of these derivative instruments to be severely mispriced (or, conversely, the risk severely misjudged), here.

Vanity Fair article on Jon Corzine, the gentle sir who presided over the recent blow up/bankruptcy of MF Global...Corzine previously ran Goldman Sachs and was Governor of New Jersey, here.

Caucus 3.6.12: The Derivative Market & Shadow Banking System

The Derivative Market & Shadow Banking System         

Advocate Perspective:

“Ultimately, derivatives offer organizations the opportunity to break financial risks into smaller components and then to buy and sell those components to best meet specific risk-management objectives. Moreover, under a market-oriented philosophy, derivatives allow for the free trading of individual risk components, thereby improving market efficiency. Using financial derivatives should be considered a part of any business's risk-management strategy to ensure that value-enhancing investment opportunities can be pursued.”

                – Tom Siems, Dallas Federal Reserve Economic & Policy Advisor

Source: http://www.cato.org/pubs/pas/pa-283.html

*Note this perspective is from 1997, before the two most significant financial system stresses that have occurred in the 1998 Failure of Long-Term Capital management and the financial crises of 2007-2011.

Critical Perspective:

·         Critic’s commentary on the possibility and implications of our next financial crisis that will likely be related to derivatives: http://www.zerohedge.com/contributed/coming-derivatives-crisis-could-destroy-entire-global-financial-system

·         NY Times article on Secretive Banking Elite who rule the trade in derivatives: http://www.cnbc.com/id/40628316/

·         In 1933 the Glass Steagall Act was passed in response to reform needed to avoid another Great Depression. The repeal of provisions of the Glass–Steagall Act by the Gramm–Leach–Bliley Act in 1999 effectively removed the separation that previously existed between investment banking which issued securities and commercial banks which made money through deposits. It was the repeal of these prohibitions that was later claimed by many to have contributed to the financial crisis of 2007-11 by allowing depositors' money to flow into risky investments. This has helped to create many large banking institutions that are “too big to fail” and justifications for government bail outs.  Source: http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act

·         Brooksley Born, the head of the Commodity Futures Trading Commission [CFTC], issued a warning in the late 1990s of the dangers of derivatives in our financial system. Her criticism was suppressed by the financial industry and some of Washington’s top regulators:  http://www.pbs.org/wgbh/pages/frontline/warning/view/

·         Federal Reserve Map of the Shadow Banking system: (Only referenced to note the complexity of the system map on page 3) http://www.ny.frb.org/research/staff_reports/sr458.pdf

Some Solutions:

·         Creating a Market Exchange for OTC derivatives. South Korea’s efforts: http://www.bloomberg.com/news/2012-01-12/south-korea-to-start-otc-derivatives-clearinghoue-to-reduce-global-risks.html

Complex systems are efficient but run with little margin of error. They breakdown less frequently but when they do the fail catastrophically. One framework to improve complex systems is through the application of the Principals of Resilience:  http://www.foreignpolicy.com/articles/2009/04/15/the_next_big_thing_resilience

Follow-Up: Unexpected Opposition to I-502

Not all are on-board for Initiative 502 to legalize marijuana.  Namely, the business owners that currently sell medical marijuana through dispensaries. Interesting perspective, here.

Caucus 2.7.12: Legalization of Marijuana

For our next Caucus on Tuesday (2.7.12 from 7:30pm to 9:00pm @ Jade Garden) we will discuss the pro's and con's of legalizing Marijuana, or drugs, in general.  Especially relevant as its legalization will be coming up on the Washington State ballot this November.

We will look to discuss the state's current inclination towards criminalization as opposed to a health issue and rehabilitation, and its implications. Materials:

Washington State Initiative, here & here.

 

Pros & Cons, here & here.

Interesting clip of Ron Paul in a recent debate.  How interesting that he would be the one to bring this up in a national debate? 

The Business of Getting High: Documentary film on the history of marijuana/cannabis.

SCOTUS Requires Warrant for GPS Tracking

As a follow up to our conversation earlier this month on police tactics and surveillance, the Supreme Court this morning issued its decision in U.S. v. Jones. The decision was unanimous in that the Court found a warrant must be issued in advance of the police attaching a GPS tracking device to a suspect's vehicle, although the Justices split over the reasoning behind this requirement. Privacy lives to fight another day...

http://www.washingtonpost.com/business/technology/supreme-court-says-search-warrants-needed-when-police-use-gps-devices-to-track-suspects/2012/01/23/gIQA7wL1KQ_story.html?hpid=z1

The Future of History...

Can liberal democracy survive the demise of the middle class?   From everyone's favorite wonk Diva, Francis Fukuyama, explains himself here.


"Something strange is going on in the world today. The global financial crisis that began in 2008 and the ongoing crisis of the euro are both products of the model of lightly regulated financial capitalism that emerged over the past three decades. Yet despite widespread anger at Wall Street bailouts, there has been no great upsurge of left-wing American populism in response. It is conceivable that the Occupy Wall Street movement will gain traction, but the most dynamic recent populist movement to date has been the right-wing Tea Party, whose main target is the regulatory state that seeks to protect ordinary people from financial speculators. Something similar is true in Europe as well, where the left is anemic and right-wing populist parties are on the move."

America's Unlevel Field

Paul Krugman, America's Unlevel Field:

"Americans are much more likely than citizens of other nations to believe that they live in a meritocracy. But this self-image is a fantasy: as a report in The Times last week pointed out, America actually stands out as the advanced country in which it matters most who your parents were, the country in which those born on one of society’s lower rungs have the least chance of climbing to the top or even to the middle."

Real Talk On Economic Inequity

Amazing times when both Liberals and Conservatives are voicing concern on unprecedented "class inequality," or what Republicans like to frame as decreasing "income mobility," and the ability to achieve the "American Dream."  Both terms describe the same underlying issue of a disappearing middle class.

The Times:
-Harder for Americans to Rise From Lower Rungs

The Post x3:
-The danger in a declining middle class
-No longer the land of opportunity
-Iowa and the future of history

Ever wonder who controls the keys to the internet?

Link:  The Geo-Politics of ICANN vs ITU

The Internet is now the engine of the new global economy. It is a communication infrastructure. Both have been correctly regarded as national security interests of the very highest level of priority. Some of the participants in the ICANN/ITU world are former participants in arms limitation circles. Their mode of thinking is illustrated by the frequent use of phrases such as 'why would we give up...'.

Institutionalized Mass Surveillance - Big Data

Another issue raised at the last Caucus concerned "Institutionalized Mass Surveillance," decreasing expectations of privacy, and how this is changing our understanding of the Fourth Amendment.

In that discussion, Aaron Kleiner brought up the topic of Big Data and the technology that is allowing for even greater capacity to compute all the data that is collected during our day-to-day lives.

Some additional materials:  Thomas Friedman's glass half-full approach on tech and globalization.

In addition, Sean Gourley on the Mathematics of War:  

1.3.12 Caucus Follow-Up

2012 got kicked off in proper fashion.  Our first two-table Caucus!

In the interest of keeping the discussion going (albeit digital), below our two articles that were mentioned in relation to the Caucus topic of "Modern Police Tactics & Militarization."

The first is an Op-Ed written by Kate and published in the Seattle Times on Sunday.

The second examines the controversial "stop-and-frisk" technique used by the NYPD:

Part I   &  Part II

Enjoy!