Some surprisingly simple ways to actually grow the economy

The Thinker by Rodin

In my last post, I discussed why the soaring stock market doesn’t mean a lot to most people. Roughly half of us don’t have the money to buy into the stock market, and most of us that do can only afford to do so through a retirement vehicle like a 401-K or an IRA. The principle value of a rise in stock prices is to inflate the wealth of those who bought stocks.

So the rich get richer while those who can’t afford them have to hope that their wage increases will exceed inflation. And so far, that hasn’t happened. Real wages, accounting for inflation, dropped .1% drop November through December 2019. Another sign it doesn’t mean much: the USA’s growth rate is 1.9%, at least as of the last quarter of 2019. This should suggest to most of us that markets are overvalued, and are due for a correction.

If Donald Trump is going to run on his greatest ever economy claim, then two percent growth must be outstanding. It’s not a recession but it suggests our real economy is anemic, just growing a bit while most of the rest of the world’s economy is starting to falter or is faltering. During his first campaign, Trump made it sound like 4% growth would be the absolute minimum that voters could expect. He’s failing at his own benchmark.

He’s been trying to juice up the economy with tax cuts. But as with the stock market, these tax cuts hardly affected the bulk of us and in some cases raised our taxes, such as the caps on state and local taxes that you can deduct from your federal taxes. The tax cuts definitely cut taxes on the rich and gave them a whole lot more money to do things like buy more stocks. One thing the rich aren’t doing is juicing the economy with all this new money by actually buying stuff. The trickle-down economy was never more than this: just a trickle of prosperity coming down to the rest of us from our betters.

Still, if 4% growth were a true goal, I can think of pretty easy ways to do it. So can Bernie Sanders and Elizabeth Warren. To start, we could take those tax cuts we gave to the rich and redirect them to the poor and middle class instead, who will almost certainly go out and spend it. This will cause the economy to grow, certainly by more than it has in our trickle-down economy, because the money will be used to actually buy goods and services.

Even better, we could redirect those trillions for the rich into service for the public good. Republicans clearly don’t want to address climate change, and certainly not with our tax dollars. It won’t stop climate change from happening anyhow. Trump’s trying to jumpstart the economy by stripping environmental protections clearly isn’t working either, but it is shortening our lifespans.

But it’s a sure bet that if that money were redirected to improving the environment, it would both cause the growth we want and put it to good use. We could use it to build the clean, green infrastructure we need to survive. That sounds like an excellent use of money. It will stimulate all sorts of jobs. The obvious ones will be in industries like the solar industry, but to go carbon neutral will require investment and ingenuity across our entire economy.

Moreover, if we tax carbon polluters, we can use that money to also build a green economy. I am already a beneficiary of a carbon credit. By putting solar panels on my roof in 2016, I allowed carbon polluters to claim credit for my clean and green energy. Being green paid me $1830 last year. This is real money in my pocket.

Such investments just compound. It stimulates industries like electric car manufacturing, wind energy, geothermal energy, green computing and the manufacture of more energy efficient products. By cleaning the air and water, we improve health. By removing carbon from our environment, we help address climate change.

All this growth in turn helps makes these industries profitable, so dollars start to follow them. Just as the space program brought us microelectronics and the Defense Advanced Research Projects Agency funded the beginning of the Internet, these investments make a better future possible. And if we can do it sooner than other countries, we stand to gain a disproportionate economic advantage.

But even if you don’t think government should be spending money to do these things, you could still advocate for increases in the minimum wage. This will certainly put money in people’s pockets that can use it the most. As they earn a living wage, there is less need for them to use government services like Food Stamps. That saves the government money, grows the economy and also saves lives. If we were a nation that truly was pro-life, it would be an obvious thing to do.

In short, if Trump were a progressive and had worked for our interests instead of against it, he’d likely not be facing a trial in front of the Senate, wouldn’t need the help of Russia to get reelected and would probably have his election in the bag. Even Democrats like me might have voted for him. Instead, we get an egregious use of tax dollars for counterproductive purposes and the most corrupt president ever.

Let’s hope on November 3, voters act more enlightened.

Black Friday protest at Walmart

The Thinker by Rodin

Remember this post? Well, probably not. Anyhow, in it I promised to try to eke revenge against the retailers of the world for the shabby way I was treated when I was a retail worker (1978 to 1980) for the now defunct Montgomery Ward Corporation which today is even worse. Now that I am retired, lack of time was no longer an excuse, so I made a note on my calendar to attend a Black Friday protest at my local Walmart (Sterling, Virginia in my case) to protest their appallingly low wages and working conditions.

Signing up was easy. I was already a member of Making Change at Walmart, the site to go if you are not a Walmart employee but want to support their cause. I get regular emails from them and have even made a couple of contributions to their strike fund over the years. I was urged to find a Walmart Black Friday protest near me, so I simply filled in the web form and marked the date and time on my calendar. For several years now, the Our Walmart campaign has targeted Black Friday for protests because it is the busiest shopping day of the year. This year a record 1600 store protests was planned.

Thus far my protesting had been confined to mass events on the national mall. This kind of protest would be a lot different. The number of protestors was likely to be small and Walmart would doubtlessly be on the lookout for us. Protest rules were pretty murky, but seemed worth whatever minor risk it entailed. This is after all Walmart: the nation’s largest, nastiest and stingiest employer. Every year they find new ways to screw their “associates”. Among their egregious tactics over the last year were requirements to buy their own uniforms, canceling health insurance for certain part time employees (doubtless few could afford it in any event), cutting the hours of workers (leading to predictably long lines at cash registers and empty shelves) and erratic schedules. All this for an average wage of $8.80 an hour and where you might get an extra dime per hour the next time your performance was reviewed.

With several weeks of notice, I wanted to see if I could convince any others to join me. Notes on Facebook did not turn up any nibbles, so I sent a note to Paul, chair of the social justice committee at my local Unitarian Universalist Church. He agreed to sponsor the protest for our church. I made sure announcements were posted in the church bulletin and hoped a few members of my congregation would join me. We have less than 200 members, so I kept my expectations modest. Fortunately for me, it got the attention of certain influential women at the church (a.k.a. the Knitting Circle, which my wife attends) who were also suitably outraged and started making protest signs. On protest day, eight of us with signs in hand were ready to protest.

However, our protest organizer weaseled out. Early on Black Friday morning we found an email from him in our inboxes. He claimed insomnia the night before and canceled the event, but he did encourage anyone that wanted to to come out and protest. We took him up on it.

I confess it was hard to get in the protesting spirit when the temperature was in the low thirties with gusty winds, but we were ready. We met in the church parking lot, collected our signs and drove out to the Sterling Virginia Walmart. As we moved toward the entrance we encountered an older couple from Illinois in town but with signs. We were it, apparently, but at least with ten protestors we got into the double digits.

Black Friday protest against Walmart's labor practices at Sterling, Virginia store
Black Friday protest against Walmart’s labor practices at Sterling, Virginia store

For 10 AM on a Black Friday, there weren’t many people going into or out of this Walmart. We stood silently outside the Walmart entrances, being careful not to impede pedestrian or vehicular traffic. Occasionally we got a toot of a horn or thumbs up, but mostly we stood and shivered. We had a feeling though that it would not be long before Walmart management noticed us. We were prescient. After about ten minutes, a Walmart security officer told us we were on private property and we could only protest on public property. He pointed us to a hill at the far back end of the parking lot. Dutifully we walked back there. This was not an ideal location, but it was convenient to incoming traffic so we stood there with our signs and waved them up and down as cars went by.

Apparently we were not far out enough. After fifteen minutes or so we found we were observed by officers in two cars from the Loudoun County sheriff’s office. Eventually an officer approached us with the Walmart store manager. We patiently explained we were directed here by their store security. But, no, we were still on private property we were told. Walmart owned all of it. Some sort of conglomerate of course typically owns shopping centers, so it is in theory all private property. It’s pretty clear that Walmart wanted us way out of the way, like outer Siberia if possible. The closest truly public property, we were politely informed, was a median strip on Nokes Boulevard, which led into the parking lot.

And so we shuffled out there with our protest signs, dodging aggressive traffic to do so. We got the occasional thumbs up and toot of a horn in support, but mostly Walmart had gotten us out of the way, which is probably the strategy it emulated at many other stores. Had we had more protesters, perhaps we would have been harder to dislodge. After about an hour we ended our protest and moved on.

Nonetheless we were in reasonably high spirits. Without professional organization, we didn’t know what to expect or what was legal, but Walmart’s response felt very scripted. The store manager was never angry with us, but after the event one of our crew took a few of our signs into the store, and tried to give them to the store manager. She was intercepted by an assistant manager, and told she was unwelcome in the store, and ordered to leave.

Making change at Walmart is hard, not so much for us outside protesters, but certainly for Walmart employees who join the Our Walmart movement. They frequently suffer illegal firings or reduced hours. They are much braver than we were. We were just testing the protest waters, but I think I know where I’ll be next Black Friday. And hopefully we’ll be better-organized next time, and our organizer won’t use the weasely excuse of insomnia for not showing up.

As a practical matter, real change is happening in two fronts. First, many states and communities have realized that since retailers won’t raise wages and the federal government won’t, they must. So cities like Seatac in Washington State have raised their minimum wage to $15 an hour. In Northern Virginia, $15 is a living wage, but just barely. Those Walmart workers earning $8.80 an hour or so at their Sterling store are probably working a couple of other part time jobs just to get by. They may very well be getting some government assistance, which means your taxes are subsidizing Walmart and other retailers scandalously low wages. More recently, the city of San Francisco passed a retail workers bill of rights. It requires employers to make up work schedules for their part time employees two weeks in advance, helping to give them some predictability to their schedules. This addresses the sad reality that part time work these days does not supplement other wages, but is what many workers try to live on.

Do not assume that minimum wage workers are mostly students living at home and thus it’s okay to pay the $7.25 an hour. The average age of a minimum wage worker is 35. These people are hustling simply to survive in poverty. They deserve a living wage and better working conditions and hopefully just one job so they get some downtime. It’s quite clear though that Walmart will continue to frustrate and obfuscate attempts at justice for their employees until the price becomes unbearable, i.e. it seriously affects their profits and sales. I will do my part to make it unbearable.