In the News

Hundreds of low-wage employees of federal contractors walked off the job on Tuesday morning, demanding that President Obama sign legislation or an executive order requiring federal contractors to pay higher wages. The Washington, D.C., strike is led by a new campaign called Good Jobs Nation, formed earlier this month.

Today’s strike follows the release last week of a report from the progressive think tank Demos estimating that at least 1,992,000 workers receive $12 per hour or less while doing jobs backed by public funds.

Throughout American history, restrictions on voter registration were a major tool of disenfranchisement. Before the passage of the Voting Rights Act in 1965, only a quarter of African-Americans in the South were registered to vote. Four years after the VRA outlawed literacy tests and other voter suppression devices, the number of black Southeners registered to vote had more than doubled.

New rules to regulate derivatives, adopted last week by the Commodity Futures Trading Commission, are a victory for Wall Street and a setback for financial reform. They may also signal worse things to come.

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Since NVRA was passed, citizens can now register to vote when they go to public assistance offices to apply for welfare or disability benefits, or at their local DMV when they apply for a drivers license — hence the nickname “Motor Voter Act” — and also allowed for mailed-in registration forms. The result was that over 30 million people registered via the new paths opened by NVRA in its first year.

 

Though Americans of all ages suffered as a result of the Great Recession, the downturn dealt a particularly harsh blow to young people, as employers opted for suddenly plentiful workers with more experience. As a result, nearly half of the nation’s unemployed are under 34 years old, according to an April report from public policy organization Demos.

In 2012, no one, it seemed, could afford to sit on the sidelines. Having decried super PACs as "a threat to democracy," Obama and his advisers flip-flopped and blessed the creation of one devoted specifically to reelecting the president. Soon, they were everywhere, at the local, state, and federal levels.

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Previous research has found that the majority of the jobs added to the economy since the end of the recession pay low wages. Middle-wage and high-wage jobs haven’t seen nearly the same rate of growth, meaning that the economy has traded comfortable jobs for those that merely allow workers to scrape by.

At the very least, argues a recent report from Demos, the American government owes employees on its payroll a livable wage. Demos, a research and policy center focused on economic stability, defines low-wage work as “a job paying $12 an hour or less, equivalent to an annual income of about $24,000 for a full-time worker. Nationwide, a family of four trying to subsist on $24,000 a year hovers near the poverty level.

Last week, Senator Elizabeth Warren debuted her inaugural legislative effort, a bill intended to stop the cost of federally subsidized student loans from doubling from 3.4% to just under 7% on 1 July. Warren's solution? A one-year temporary fix that would allow students and their parents to borrow money for higher education at the same rate the Federal Reserve charges banks for short-term loans, which is about 0.75%.