Once again, job losses fall unequally across the US economy

WASHINGTON (AP) — Ten months into America’s viral outbreak, low-income workers are still bearing the brunt of job losses — an unusual and harsh feature of the pandemic recession that flattened the economy last spring.

In December, the nation shed jobs for the first time since April. Once again, the layoffs were heavily concentrated in the industries that have suffered most because they involve the kind of face-to-face contact that is now nearly impossible: Restaurants, bars and hotels, theaters, sports arenas and concert halls.

With the virus transforming consumer spending habits, economists believe some portion of these service jobs won’t return even after the economy has regained its footing. That trend will likely further widen the economic inequalities that have left millions of families unable to buy food or pay rent.

Typically in a recession, layoffs strike a broad array of industries — both those that employ higher- and middle-income workers and those with lower-paid staff — as anxious consumers slash spending. Economists had worried that the same trend would emerge this time.

Instead, much of the rest of the economy is healing, if slowly and fitfully. Factories, while not fully recovered, are cranking out goods and have added jobs every month since May. Home sales have soared 26% from a year ago, fueled by affluent people able to work from home who are looking for more space. That trend has, in turn, bolstered higher-paying jobs in banking, insurance and real estate.

“Such differences in … employment loss between the highest- and lowest-wage workers are almost certainly unprecedented among U.S. recessions over the past 100-plus years,” Brad Hershbein, an economist at the Upjohn Institute for Employment Research, and Harry Holzer, an economist at Georgetown University, concluded in a new research paper.

On the surface, the December jobs report the government issued Friday was dismal: The economy lost 140,000 jobs. It was the sixth straight month in which hiring has slumped from the previous month. Unemployment remained stuck at a still-high 6.7%.

But the negative number stemmed entirely from a brutal loss — nearly 500,000 jobs — in a category that includes restaurants, bars, hotels, casinos and entertainment.

State and local governments also cut workers. So did hair salons and other personal services. There were layoffs, too, in education.

More at Source: Once again, job losses fall unequally across the US economy

How Slavery Inspired Modern Business Management | Boston Review

 

The parallels between present-day business management practices and slavery have been persistently neglected in mainstream discussions about the history of U.S. enterprise.

The most striking parallel between slavery and scientific management can be found in the “task idea,” which Taylor described as “the most prominent single element in modern scientific management.” The task system is closely identified with Henry Laurence Gantt, who is well known today for the Gantt chart, a scheduling tool, which still bears his name. During the heyday of scientific management, Gantt developed a “task and bonus system,” which paired a flat task and a time wage with bonuses for overwork. Workers would be paid a base wage plus an additional piece rate for production above a certain minimum. By combining an achievable (rather than a maximal) task with bonuses, workers would enjoy the security of a minimum payment but also be encouraged to strive beyond it.

Economic growth can accompany choice, but it can also build on violence and injustice.

Yet while they introduced some novel details, neither Gantt nor Taylor created the task system. It has a much longer history and was one of the principal methods of organizing labor under slavery. Under the task system, an enslaved person would be assigned a set “task” or quota that he or she was expected to complete by the end of the day; this was in contrast to the gang system, where enslaved people labored under constant supervision for a set period of time. In some cases, slavers who used the task system even gave monetary bonuses for achievement above set targets. They “dangled the carrot” in a way that resembles not just Gantt’s methods but those of the gig economy today. Indeed, except for the base payment and the critically important ability for workers to quit, Gantt’s new system was in nearly every respect the same as the system used by some slaveholders, a fact that Gantt made no attempt to hide. Rather, he acknowledged that the word “task” was “disliked by many men” because of its connection to slavery, and he regarded this negative connotation as its “principal disadvantage.”

This is less surprising considering Gantt’s roots in the South. Born on the eve of the Civil War to a slaveholder in Maryland, Gantt’s father, Virgil Gantt, owned more than sixty men, women, and children. As Gantt wrote, “The term ‘task master’ is an old one in our language; it symbolizes the time, now happily passing away, when men were compelled to work, not for their own interests, but for those of some one else.” Gantt’s goal was not to abolish this old system but to adapt it to modern needs. As he explained, “The general policy of the past has been to drive, but the era of force must give way to that of knowledge, and the policy of the future will be to teach and to lead, to the advantage of all concerned.”

In a sense, scientific management replicated slavery’s extractive techniques while jettisoning the institution itself. Gantt’s rhetoric was not necessarily of distance but of progress; he purportedly liked to say that “scientific management marked a great step forward from slave labor.” James Mapes Dodge, a Philadelphia manufacturer and early supporter of Taylor, explained in 1913 that “we cannot tell who first liberated the germ idea of Scientific Management, as it was born to the world in the first cry of anguish that escaped the lips of the lashed slave.” Dodge’s reference was metaphorical, to a vague and distant past where slavery prevailed, not to the slave South. But he understood that “the present generation” had inherited “from the past the relationship of master and slave” and saw it as the job of scientific management to move beyond it.

Source: How Slavery Inspired Modern Business Management | Boston Review

INCREASING PUBLIC POWER TO INCREASE COMPETITION: A FOUNDATION FOR AN INCLUSIVE ECONOMY

INCREASING PUBLIC POWER TO INCREASE COMPETITION:  A FOUNDATION FOR AN INCLUSIVE ECONOMY

ISSUE BRIEF BY WILLIAM DARITY JR., DARRICK HAMILTON, AND RAKEEN MABUD
MAY 2019

Executive Summary

The United States needs an economy grounded in justice and morality, where everyone, free of undue resource constraints, can prosper. To achieve this, citizens ought to have universal access to undeniable economic rights, such as the right to employment, medical and health care, high quality education, sound banking and financial services, or a meaningful endowment at birth (Paul, Darity, Hamilton 2018). Currently, our system provides these rights primarily through the “free market” by private providers, but these private companies often fail to meet the following criteria:

•   Quantity: Are goods adequately supplied?
•   Quality: Are the goods high quality?
•   Access: Do people have adequate access to these goods?

Because of the failure of America’s markets-first approach to policy, the federal government should intervene by introducing public options that provide these essential goods and services in direct competition with private firms. Doing so will set “floors” on wages and quality and “ceilings” on price for private actors who are intent on providing important economic rights at a cost. In employment, this might mean providing a federal jobs guarantee (FJG); in financial services, this could mean access to bank accounts and safe, nonpredatory loans. Throughout this issue brief, we explore what public options might look like in employment, health, housing, education, and financial services. We argue that in these sectors, public options are necessary to combat high-cost, low-quality provision by private actors and ensure universal and better quality access to all Americans.

Full Report here.   https://rooseveltinstitute.org/wp-content/uploads/2019/04/RI_Increasing-Public-Power-to-Increase-Competition-brief-201905.pdf

CREATIVE COMMONS COPYRIGHT 2019 | ROOSEVELTINSTITUTE.ORG

The report features the work of OUR COMMON GROUND Voices, Drs. William “Sandy” Darity and Darrick Hamilton

Darity Hamilton

“The Ashes of A Manifesto: The LAPD and the Deaths of Christopher Dorner and His Victims” l February 16, 2013 l 10 pm ET

OUR COMMON GROUND with Janice Graham

dornergun“The Ashes of A Manifesto: The LAPD and the Deaths of Christopher Dorner and His Victims”

OPEN MIC

February 16, 2013 10pm ET

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“His self-definition could not survive separation from the institution that became his personal nemesis. In the end, he was as lonely as Rambo in First Blood, and just as politically lost.

A public death belongs to the public. Dorner’s fans, his African American public, whom he did not serve but who would inevitably embrace his weeklong death-throe defection from the LAPD, imbue him with qualities they wish were reliably available to the struggle: a Nat Turner, a Spook Who Sat by the Door. The Bronx, New York dope dealer, Larry Davis, who in1986 succeeded in shooting six of seven cops who came to his sister’s apartment to arrest or assassinate him, achieved similar fame. Davis eluded capture for 17 days, negotiated a surrender at his public housing hideout as residents chanted “Lar-ry! Lar-ry!” – and beat the charges of attempted murder of cops. (William Kunstler and Lynne Stewart were his lawyers.) His fans forgave Davis’s dope dealing ways, just as Dorner’s fans forgave his previous service to the Los Angeles Occupation Army.

The enduring lesson of Dorner’s saga is that the transformation of the LAPD into a majority-minority police force does not change its nature as an army of occupation whose mission is racist to the core, regardless of its ethnic composition. That fact finally dawned on Christopher Dorner – and it killed him.”
– BLACK AGENDA REPORT

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