Wednesday, July 1, 2015

Made in the USA: Our Economic Prison

    I was recently having a discussion about CT taxes with a co-worker. She was tapping my information pool to enhance her own perceptions and arguments. She was concerned about recent increases in CT taxes and other related issues. I informed her that although CT has the “highest per capita taxation”, we are all not that rich. Our reality, when adding in local property taxes puts us at about #13 in the nation. It is all in how you do the math.

    What is happening throughout our country is the federal government, which is collecting taxes at record low levels, is now cutting off the states from federal grants and funds. I could also get into how many systems Congress is cutting like the IRS, which now has the same budget they did some 30 years ago, and how it cripples tax collection all together, but that is a whole other topic. Our realities are…. the well is running dry and all states have to find other ways of paying for things.

    She talked of this suggestion her husband had about limiting the amount of children you can have based on your incomes. Only 1 child for $25k, 2 children for $50k and above. I asked her to think about what she was really saying. In Germany, they don’t have this problem and as well it is not a problem in other nations where the income disparities are not so great. What she really was saying, without fully understanding it, was that we should try to solve the symptoms of the problem rather than the problem itself. It is atop down problem, not a bottom up one.

    It caused me to reflect on how our culture demonizes the poor as if they have all the power. They made their own economic prisons, not Corporate America and the overly well heeled. After a huge deep sigh, I had to let go and recall some of the numbers representing who our country economically favors. Social Welfare achieves a whopping $50 billion a year out of our budget. Corporate America gets almost double that at $90 billion. What most Americans don’t get is that our tax code caters to the upper classes with a ginormous $1 TRILLION dollars. Talk about who gets what in the big picture.

    It is the success of well-funded cultural manipulations with the onslaught of the misinformation successes of the “welfare queen” during Reagan’s era, and other propaganda that helps us all find someone milking the system to help endorse our hatred of the poor. I mean really, we stomach the multi-million dollar bonuses, but hate the $250 a month in food stamps to a hungry family without asking why the working poor have to endure such menial wages. We refuse to address why we do not condemn the lack of opportunity because of financial barriers and instead, say the “poor get everything for free”. I cannot begin to list all the “middle class” kids who cannot afford college let alone the poor who suffer the barriers of even affording to apply for college. Tuition is simple, but has anyone looked at the FEES that could be the end game for any hope of getting ahead??

    The reality that is missed on those that do not explore cause and consequence of policies created by the powerful and not the powerless, is that it is power that creates the income disparities we are witnessing. It is Made in America. It is those in power that have created the economic prisons that the average Americans blame the victims for. We can all find an example of someone gaming the system at the lower level of our income brackets because it is easy to see. The upper class manipulators are more difficult to see, and after all, we see that as success and we want to be them, don’t we?? It is time we treat the problem, not simply putting a Band-Aid on the symptom. 

Tuesday, March 10, 2015

The American Working Class: Corporate America's Cash Cow

            The working class was raised on a steady diet of the American Dream and upward mobility. It was and still remains a chief motivator for working hard and inspiring the working class to make the “right choices”. They are seeking to create a better life for them and their families to climb the ladder of success. At some point in the late 1970’s, a new thinking took hold and a new propaganda campaign started. It became the war on the poor, the “welfare queen” and the championing of the executives and the wealthier population as the “job creators” and the “standard measure of hard work”. How could the working class ever question the more affluent “earning” their money?

            Our elected officials created a tax code that ensured low to no federal taxes on that money they “earned” as the country, suffering from a deficit of tax revenue, began mounting debt from all of their tax cuts. To offset this tax revenue shortfall, the tax burdens increased on the working class via their federal tax code and state and local governments. It inspired me to write a paper on the “Redistribution of Tax Liability” that has gripped our country for the last three decades and continues to suppress our economic growth potential.

            Americans can understand the pressures from globalization and doing things to streamline production and cutting costs to remain competitive, but the disproportionate rewards flying upward while putting the squeeze on the average worker with scratch backs on differentials, holding down pay increases, increasing health insurance premiums, and a severe cut back on retirement benefits are difficult to swallow while the execs get deluxe fringe benefit packages, skyrocketing executive pay, and even higher still million dollar bonuses. Is the working class simply‘jealous' of the success of the executive class or is ‘jealousy’ used to dismiss the economic injustice that is being waged against the working class? Why is there a direct relationship between increasing productivity with executive pay while the median income of the working class has stayed flat for decades and is now dropping? Those productivity gains are generated in large part by the working class, but yet they are not being rewarded for their hard work. They are being punished at the finish line.

            It is difficult to believe there is no connection to the bottom line savings made by cutting benefits and holding down pay of the working class and the monies made available to executive coffers. With no cost savings, how can there be monies to pay the next bonus? Certainly it is not unreasonable to achieve corporate savings through changes in the function of the company itself. No one would deny that such changes improve the long term financial outlook of the company.  It is also reasonable to understand, as well, that working class givebacks do affect the bottom line from which executive pay and bonuses are made. The working class can only be grateful if their employer distributes the cutbacks over a period of time rather than one swift axe cut. This may be the only mercy shown to employees.

           It has been widely reported that corporate CEO’s are incentivized to keep wages low so profits will be higher to reap those high bonuses. To add salt to the wounds, Americans have been sufficiently fed a diet of “don’t punish exorbitant salaries by taxing them” resulting in a tax code that favors our most affluent. There is no shared prosperity nor is there shared sacrifice.  According to the Economic Policy Institute “CEO compensation increased more than 725 percent, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period.” How can people believe this is fair? How can people believe we should not tax the monies that benefit someone else? It is simply an act of wage theft.

           It took decades of demonizing the poor to distract us from what is being taken from the top both by the tax code and the over inflated incomes and bonuses of the executive class. Everyone wants to squabble about things like housing subsidies for the poor and ignore that the middle and upper class housing subsidies called “mortgage interest deduction” costing taxpayers well over 10 times more. We scream about food stamps to feed the hungry, but fail to even be curious about the millions of dollars that go to well healed farming industry and not the small farming enterprises. Many of those “farmers” are Congressmen themselves collecting million dollar paychecks via our Farm Bills. The total sum of tax breaks each year for the affluent total 1.1 trillion dollars. The total for social welfare is 50 billion. The Center on Budget Policy Priorities also stated it " federal income tax expenditures (all those tax deductions or "loop holes") together cost more than Social Security, or the combined cost of Medicare and Medicaid, or defense or non-defense discretionary spending." In a study by the Corporation for Enterprise Development also concluded that "much of the federal spending channeled through the tax code disproportionately benefits the wealthiest taxpayers".  

           When questioning the outrageous salaries the defensive comments are “they have vision”, “they are making our company strong”, and “they are doing what is necessary to survive” aka “you are lucky to have a job”. Workers are told that executives “earned” it and that it is the “markets” driving up executive pay not the executives themselves or the Boards that in turn feed them via their quid quo pro arrangements. Meanwhile the working class is told cuts are necessary for long term financial viability. Do millions each year in executive pay have no financial consequence on long term financial viability?


            There are some interesting facts. Two thirds of all new jobs are created by small business. Small business startups are largely a working class adventure. Because many of our citizens are now saddled with large sums of student debt and low pay, our innovators are resistant to create new businesses because they are already cash strapped. America is losing its innovative edge. Because 95% of all new money created does not reach the working class pockets and often finds its way to offshore accounts, this 70% consumer driven economy will continue to stagnate. Those who have reaped the financial gains cannot spend enough of what they are given to keep the economic engine going. The working class has to spend to create demand which in turn creates jobs, but corporate America continues to choke our job creators. No one wishes to deny someone being rewarded for their hard work, but corporate America isn't the only performer in the game. 

Sunday, April 13, 2014

Electing the President and Our Electoral College

           With the upcoming Presidential elections for 2016 process already starting to warm up with potential contenders, I thought it worthwhile to investigate the process of electing our President. It centers on the Electoral College.
Establishing how to elect the President was vigorously debated by the framers. During the Constitutional Convention, the Brearley Committee was created with representatives from each state to find a compromise to elect the President of the USA. This compromise resulted in establishing the Electoral College under Article II Section 1 in our Constitution. The Electoral College provided both a mix of popular vote and state elected officials. The 12th Amendment was created to resolve contested elections by the House of Representatives. 
There have been several occasions where the Electoral College system was tested. They included one that I learned during my class on Civil War history with the 1876 election of Republican President Rutherford Hayes. There was a compromise made in the House that if the Republicans ( considered the Liberals at that time) got their man in the seat of the President, that they would pull troops out of the south which would essentially bring an end to Reconstruction. Our most recent Presidential election debacle was that of George Bush and Al Gore in 2000. We can all recall the “chads” and such in the media as Supreme Court heard two cases in relation to this election. The conservative justices on the court ruled that no recount in Florida’s ballot mess needed to occur. Gore won the popular vote, but Bush won the necessary electoral votes. As a result, Bush won the presidency and the fallout will be felt for generations.
There are several great reasons to keep the Electoral College intact. We watch in the media how the “battleground states” become a bevy of campaign activity in the get out the vote measures and the intense campaigning by the candidates takes on the national spotlight. The amount of attention certainly can help voters across the nation watch their candidates speak while the hosting states get to appreciate the flush of personal contact via the rallies and other campaign related activities. For those battleground states, the amounts of commerce generated and sweetheart deals that are negotiated represent a positive economic boom.
The Electoral College provides for better overall representation across the nation instead of favoring just one type of population such as the traditionally liberal highly populated urban areas or the traditionally conservative rural areas. This also creates a type of national cohesiveness because no one region feels left out of the process. Some do argue that the Electoral College gives more value to those rural state votes because of their small populations, but I would rather be an inclusive nation rather than a disenfranchising nation even it means including conservatives that clearly oppose my own ideology. The Electoral College also allows for easier re-counts in the contested areas instead of having to recount the entire nation.
The Electoral College also supports minority rights better by allowing them to flex their muscle in states that could affect the final outcome of their states election. We saw this in Nevada with the Latino vote and I am sure we will see them push Texas to a blue state as their populations swell. The idea that Republicans can continue to ignore the Latino issue of immigration is self-defeating as electoral votes swing to the Democrats and they will never be able to get a Republican President in office.
I believe that the Electoral College creates a stable two party system that is more centered and prevents the growth of more radical extremist parties that cater to their extremist bases. I can see how a multiparty system would create more fringe parties, but we are currently witnessing the Republican Party being dominated by the fringe right extremist wing. It is pulling the Democrat Party to the right as well, but I imagine it could be worse without the Electoral College. I believe using the popular vote would undermine the balance of powers between the states and federal governments. It could quite possibly destroy our federal system.
The ‘winner take all’ supports the perceived legitimacy that satisfies the American appetite for a clear winner. We understand this as our nation’s culture is passionate about sports and they do not debate that their team won by only a single point. It still makes their team the winner. Most Americans accept this, although conservative extremists have refused to accept President Obama’s election for a multitude of reasons, but none centering on the actual clarity of the significant majority election wins themselves. Some feel that their vote does not count when voting red in a blue state, but this does not discourage my friends from across the political field from voting at all. They just grumble a lot about it knowing that they are voting in local or state elections as well that do elect members of their parties.
As a nation, we are frustrated with our two party system because of the polarization that has occurred and the inability to deal with the nation’s problems. We deliberate on throwing all of the bums out as many are erroneously considering throwing the baby out with the bath water rather than taking the time to understand the root issues of our political mess. The electoral system gives balance and stability to our nation’s government. I, for one, wouldn't want it any other way. 

Monday, December 30, 2013

American Women: Past, Present, and Future


The face of women in America has witnessed a dramatic transformation over the last five decades. It has been an ongoing fight for equality that exploded with the 1960’s arrival of the Women’s Liberation Movement (WLM) and the Feminist Movement (FM). These movements were a response to cultural, societal, and legal barriers that discriminated against women when the government and society failed to be responsive in addressing these social and economic inequities. Disenfranchised and frustrated, women rose up in protest as they began the long struggle for women’s equality and social justice issues.
  At the center of the women’s movement was the reluctant face of leadership in Gloria Steinem whose tireless enduring advocacy and activism helped champion the cause of women’s equality both domestically and globally. Equally important is the profound impact of the novel The Feminine Mystique written by Betty Freidan. This novel ignited and emboldened the fight for women’s equality at a national level.  It is critical to understand the legal and cultural norms of  women living in the 1960’s, how the women’s movement started, what the women’s movement accomplished, and what the battles of unfinished business are in attaining greater gender equality for American women. Understanding the historical perspective of the 1960’s American culture, women’s reproductive rights, violence against women, and employment opportunities are necessary to appreciate the dramatic transformation of women’s everyday lives created by the Women’s Liberation Movement.

The Historical Perspective

 The 1960’s was a period of unrest for America. The Civil Rights Movement was in full force with protests and conflict filling the political landscape. America was also in the throes of the military draft and the unpopular Vietnam War with its protests growing in intensity. The women’s movement was, and continues to be, a symptom of the failure of our culture and government to recognize or to be responsive to women’s issues. This was the beginning of the “invention of women as a class” (Hepola) and their fight against discrimination, oppression, and stereotyping as well as redefining their female sexual identities (Hepola). There were few, if any, laws when the women’s movement started that addressed gender discrimination (Menand).
The women’s movement began as a grassroots movement that encompassed loosely formed local support groups and those that developed into well-structured national organizations, with many that are still active today. Women were banning together to communicate their frustrations and reject their economic and social inequality. The women’s movement was fluid, with fluctuating alliances transforming into new coalitions while addressing a multitude of women’s issues.  New ideas and strategies were shared between different women‘s groups. This willingness to communicate and interconnect between groups enhanced the cohesiveness of messaging and coordination of numerous moving parts (Whittier).
In the 1960’s, the USA was experiencing a wave of women entering the workforce, and two thirds of all new jobs were being filled by them. (The 1960s-70’s American Feminist Movement). Although this was a major increase of women in the workplace, employment opportunities were limited by gender, not qualifications. There were separate pages in the classified advertisements with one section for men, and one for women.  Women were relegated to the supporting roles of housewives, mothers, teachers, secretaries, nurses, and waitresses (The 1960s-70s). In some states, women could not get a job without the expressed consent of their husbands (Alterman). Many women were unable to attend business lunches even if they held the same position as their male counterparts. In many states, women were excluded from jury duty and were unable to hold political office. They were openly paid less than a man with the same job titles (Rosen).   
Women represented only 6% of doctors, 3% of lawyers, and only 1% of engineers (Miller). Female entrance into educational programs traditionally identified with men, was met with significant resistance. At the collegiate level, education was regarded by many women as a tool to find a husband who could provide them with an upper class lifestyle. This was viewed as a necessity because their professional aspirations were limited. 
 There were regional inconsistencies in regards to how women were treated if traveling alone. A woman traveling without a male escort could be met with cultural sanctions, rejection, as well as denied entry or service. There were bars, hotels, and restaurants that refused to serve women. A woman unescorted, could be perceived as a prostitute or be branded with questionable morality (Hinkley).
Discrimination abounded. Housing and access to credit, based solely on being a woman, could be denied. Divorce could be difficult or impossible, and a woman may not have had rights to her husband’s property or earnings. A woman had to prove “wrongdoing” (The 1960s-70s) to obtain a divorce and this may not have included physical abuse in some states. A husband could declare the right to control any assets belonging to his wife (Mcguire).  American society imposed the image of the self-worth of a woman to be valued less than a man; as her self-worth was tied to that of a man.
In the 1960’s abortion was illegal, advertising for birth control was illegal; and the Pill, reliable condoms, and the IUD did not exist. American women had little control over their reproductive rights. Underground abortion clinics provided illegal abortions. The use of dirty non-sterile procedures could cost a woman her life (Sawhney). The possibility of death from infection or severe blood loss was a real threat. Many devices were used by women to induce abortion, including coat hangers. Domestic violence was not even coined in the 1960’s. There were no legal protections from a brutal husband, free to beat his wife as if she were his property.   There was no legal action for the raping of a wife, because marriage was a license for sex on demand. Women’s shelters and rape crisis centers were essentially nonexistent in the 1960’s (“’Date’ Rape”). 

The Feminine Mystique
The cultural and political environment was ripe for change as the frustrations and limitations for women created a ground swell of discontent. Women found their voice as they began writing about their discontent. The Feminine Mystique, by Betty Friedan published in 1963, ignited controversy and provided the women’s movement with their calling card (Mcguire). The Feminine Mystique was both controversial and provocative. It reached a starved audience of women and became a Best Seller. It sold millions while reaching into the homes and communities of women across the nation and the world. It was a powder keg. Although it was flawed by its narrow focus, primarily on educated white woman, it was contagious to women of every class and every race. The book identified a societal ailment that was pervasive in American culture, but it lacked an identifying name (Mcguire and Menand). However, it started a historical movement. Once women recognized their common symptoms of socioeconomic inequalities, they began to mobilize to demand change.
Women were not just fighting for their rights and freedoms against a resistant male population; they were also meeting opposition from conservative women. It is fair to say that there was a percentage of the female population that wanted to maintain the freedom to choose traditional housewife and mother roles. The Feminist Movement at times, alienated these women. However, they soon came to understand that they needed to represent freedom of choice for all women, whatever the outcome may be. Part of the resistance to The Feminine Mystique was the hostility felt by women who chose to be a housewife by equating it to a “concentration camp” (Schuessler). There were other books written prior to The Feminine Mystique, but they lacked the same impact for an attentive and hungry audience (Menand). The Feminine Mystique and the socioeconomic culture for women in the 1960’s were explosive combinations that detonated the modern Women’s Liberation Movement.
Stephanie Coontz’s novel, A Strange Stirring was written as an analysis of The Feminine Mystique. She noted that just prior to the release of The Feminine Mystique; a Saturday Evening Post article was written glorifying the housewife homemaker as a respectable submissive role. This, they reported, represented the happy satisfied majority of American women and encouraged all women to aspire to this blissful perfection. “Old maids”, divorced women, women without children, and working mothers were representative of the “extreme” outsiders when discussing American women (Stirring Up). The article wished to dispel dissatisfaction among this group of women and paint the rosy happy picture of American perfection and idealism. They endorsed the ideology that "being subordinate to men is a part of being feminine” (Stirring Up). Life centered on men and keeping them satisfied. Happy homemakers were reinforced through our culture, media and advertisements. 

Gloria Steinem
Gloria Steinem’s work for women’s equality has continued throughout the decades, and even at the age of seventy seven she continues to work towards women’s equality. Her argument that we are only half way there is very compelling.
Gloria Steinem was magna cum laude graduate of government studies at Smith College in Northampton, Massachusetts.  Steinem wrote a controversial expose’ on Playboy bunnies and bared the realities of the sexually exploited workers. Steinem had difficulty finding significant political journalist assignments because as a woman, she was not taken seriously. The doors of opportunity began opening for her when she became a founding editor of New York Magazine in 1968 when the WLM was in its infancy. Her coverage of political and social issues led her to investigate and report on an abortion hearing. At the same time women were exposing the underground abortion system and the injustice of our lack of reproductive rights and self-determination. This experience detonated her own feminist philosophy and propelled her deep into the heart of the women’s movement (Gloria Steinem and Hass).
Gloria Steinem has achieved far reaching success in publishing her message to champion women’s equality. She co-founded Ms. Magazine in 1971 and is well published in other domestic and foreign magazines.  She is a part of history in scholastic text books and has written her own bestselling books that continue to be in circulation (Gloria Steinem and Biography).  She is a co-founder of the Women’s Action Alliance, the National Women’s Political Caucus, the Women’s Media Center, and other organizations geared towards eradicating social injustices for women.  Steinem has received a variety of awards for her writing and documentaries addressing women’s inequality issues (Gloria Steinem).
Gloria Steinem has been relentless in increasing awareness on women’s issues. She shares information resources, participates in activities, forums, and lobbies for legislation that directly impacts women. She has an uncanny ability to take difficult ideas and create a digestible popular message (Hass). Steinem is always engaged in the women’s equality conversation and participates in speaking engagements on the women’s inequity issues that have not been resolved. Steinem is characterized as having “relentless focus, soothing tenacity and a lack of an ego” (Hass).
When you participate in ‘Take your daughter to work day’ you can thank Gloria Steinem. Rebecca Traister, author of Big Girls Don’t Cry remarks “She was a figurehead chosen by the media for complicated reasons. She was young and white and pretty, and she looked great on magazine covers” (Hepola). Steinem has resisted the image that she alone was the face of the women’s movement. She has expressed her satisfaction with the media for broadening their scope to include the vast variety of activist leaders, to identify with the fight for equality and social justice on women’s issues. The growing complexity of the women’s movement creates a room full of leaders with no one single voice. “Only a diverse group can symbolize a movement,” (Hepola) she said. As for whether she feels there can or will be another Gloria Steinem, she replied, “I don’t think there should have been a first one” (Hepola).

The Changing Face of American Women: Reproductive Rights
Reproductive rights were revolutionized by the birth of the Pill. The research for the Pill was largely funded by wealthy heir Katherine McCormick who together with American Birth Control League founder Margaret Sanger and Seale research scientist Gregory Pincus produced the first birth control pill approved by the Food and Drug Administration (FDA) in 1960 (“The Birth of the Pill”). Access to the Pill revolutionized career opportunities for women with “80% of women using birth control by the end of the 1960’s” (Walsh and Daniels). The Pill was not without the consequence of high dose hormonal side effects when it first was approved by the FDA. Male physicians were initially dismissive of the symptoms of hormonal overdose because the complainants were of course women (“The Birth of the Pill”).
By 1965 the old Comstock Laws that were meant to control women’s reproductive rights were challenged in the Supreme Court case of Griswold V. Connecticut. The Supreme Court ruled that “the private use of contraceptives was a constitutional right.” The Comstock laws were created by the conservative Christians to prohibit a woman’s access to birth control and birth control information (“The Birth of the Pill”).
The Pill represented significant freedom in career choice options for women. Women could now pursue careers that required higher degree requirements without worrying about an unexpected pregnancy interfering with long term professional goals. The morning after pill or “Plan B” was designated an over the counter medication and made available to girls of any age in 2013 (Belluck).  Access to the Pill is not just about sexual freedom; it is an economic enhancer with one study demonstrating 8% higher incomes for those women having access to the Pill (“Contraceptive Use”). Gloria Steinem’s comment on access to reliable birth control, “does not confine us to define our worth or ability to succeed by our reproductive anatomy” (Gloria Steinem and Biography).
A groundbreaking achievement in reproductive rights for women was the Supreme Court ruling on Roe V. Wade that legalized abortions in the US in 1973. No longer would women have to go to underground facilities and risk their health to obtain an abortion. Today, at the state level, there have been significant laws passed since Roe V. Wade to limit access to a legal abortion. In 2011, ninety three new Laws were created to inhibit access to contraception and abortion and another forty two laws in 2012 were enacted (“Laws Affecting Reproductive Health”).
In recent years, the anti-abortion coalition supported by the conservative Christians and the Republican Party have made great strides infringing on women’s reproductive rights and they show no sign of abating. At the national level, Republicans have passed countless laws limiting abortions in the US including passage of Partial Birth Abortion Ban Act in 2003. They have introduced “Personhood Amendments” that declare the fertilized zygote still in the fallopian tube, to be a person with rights equal to that of the mother. To stem the anti-abortion violence against abortion clinics, the 1994 U.S. Supreme Court in NOW v. Scheidler unanimously upheld the right to provide abortion services without fear of violence against the abortion clinic or its providers (“Highlight’s From NOW”). This has not deterred conservative extremists, as they have continued to picket clinics and harass women seeking medical care. In some of the most extreme cases they have bombed clinics and murdered healthcare providers performing abortion services. They work tirelessly to defund the Planned Parenthood organization where abortion services represent 3% of their total services offered.
The conservative Christians consistently oppose birth control access as well as sexual education (“The Bible Belt Miseducation”). They are protesting the Affordable Health Care Act for its provision of birth control products for female employees. Although they want to deny access to birth control, they are unwilling to fund needed programs to assist impoverished women and children. This in itself is a dichotomy because it perpetuates the cycle of oppression and poverty due to the economic consequence of an unwanted pregnancy.

Changing Cultural Norms and Creating Equality
            Many cultural changes are being realized as a response to the women’s movement. As women advance in the workforce, the antiquated idea about ‘who brings home the bacon’ is being replaced with ideas of partnership between couples. The idea of the stay at home father as the homemaker has been normalized by movies, TV shows and American life realities. Now younger couples may choose the caretaker based on multiple dynamic factors such as the cost of child care, incomes, benefits, and advancement potential. Great changes have occurred in our countries divorce laws enabling women the option of divorce based on ‘irreconcilable differences’ or ‘no fault’ divorces. While the divorce rate increased sharply from 1970 to 1975 as ‘no-fault’ divorce laws spread across the United States, the divorce rate has leveled off to about 40% all marriages (“Celebrating Women”).
The Miss America Pageant protest of 1968 was one of the first nationally covered protests of the women’s movement. It was organized by a more radical wing of the women’s movement called the New York Radical Women. Their roots and passions originated from their involvement in the Civil Rights movement where females were prohibited from significant positions within the hierarchy of power solely because they were women. They were protesting the unrealistic symbolism of female standards, their sexual objectification, and the racism portrayed in the Miss America Pageant by the shear lack of any black contestants (“American Experience”). The event was a success in garnering national media attention, but there was some residual negative backlash from the messaging that pitted women against women and imposed conformity to ideals rather than championing freedom of choice and opportunity for women (Hanish).
In response to lack of access to many bars, restaurants, and other public accommodations, the National Organization of Women(NOW) proclaimed "Public Accommodations Week" in 1969 (“Highlight’s From NOW”). They protested the “men only” establishments with “sit-in, picketing, demonstrations, press conferences, legislative pressures and law suits (Hinkley). The tenacity to keep the pressure on these establishments resulted in the equal access that women enjoy today.
The response to the relentless outcry of protest from the WLM has also realized a series of legal and cultural changes that have begun the process of addressing women’s inequality in America. The Equal Pay Act (EPA) passed Congress in 1963 “prohibiting sex-based wage discrimination”(EEOC) to resolve the wage gap between a man and a woman who was being paid less for working essentially the same job at the same company. The struggle for equal pay for equal work has narrowed the wage gap from 59% in 1963 to approximately 80.9% in 2013, but the problem still persists (EEOC).
The amount of lawsuits, landmark court hearings and Fair Pay Acts that have been put up for a vote before Congress are too numerous to note. A recent significant piece of legislation signed into law, was the 2009 Lilly Ledbetter Act. This act reestablishes a woman’s right for just compensation in the form of retroactive pay and equal pay when a pay discrimination case has been proven in a court of law (“Lilly Ledbetter”). There continues to be state to state variances in the wage gap. In Washington DC women earn 90% of what men earn at comparable occupations and in Wyoming women earn 64% at comparable occupations. The wage gap is also shown to worsen with age (“The Simple Truth”).
Many citizens believe The Civil Rights Act of 1964 as a black only movement against discrimination but everyone, including women, got on board the Civil Rights train to equality. The law prohibits a broad collection of discrimination based on sex, race, religion, and ethnicity in every facet of employment opportunities, housing, benefits, wages, education, and use of public spaces and services (EEOC). After the passage of Civil Rights bill and the 1970 Equal Rights Act (ERA), the National Organization of Women (NOW), aggressively lobbied for the passage of the Equal Employment Opportunity Act of 1972. While the Civil Rights Law and the ERA prohibited discrimination, they lacked the enforcement capacity to ensure that that laws would be followed (EEOC). The organization NOW stepped up the political pressure by seeking public hearings and conducting further protests to demand enforcement of the existing laws (“Highlight’s From Now”). 

Enhancing Employment Opportunities
Minimal childcare resources inspired the women’s movement to lobby heavily for the 1970 Comprehensive Childcare Act.  This act would have provided for a national childcare program to improve economic opportunities for women (“Highlight’s From Now”).  The act was vetoed by President Richard Nixon, who called it the "Sovietization of American children” (Spangler). In Nixon’s speech explaining his rejection, he emphasized the potential negative effects on the integrity of the American family in order to pander to the conservative Christians who helped get him elected (Spangler and Cohen). There was no foresight in the rejection of this law. Because of the changing culture of America, with single mothers and two working parent families, the most our country has done to accommodate childcare costs is via deductions in our tax codes and marginally through our welfare systems (Cohen).
The women’s movement lobbied for and Congress passed the Pregnancy Discrimination Act of 1978. This law prohibited discrimination against pregnant women from being hired or working (“Celebrating Women”).  The passage of the Family Medical Leave Act of 1993 was heralded as a great moment for working families and women. It allowed parents to take up to 12 weeks of leave after the birth or adoption of a child without fear of losing their job. It also covers employee illness or care for an immediate family member (“Dept. of Labor”). The major fault in this law is that in most cases it is unpaid leave and it covers less than 50% of US employers (Cohen). The 1971 Supreme Court ruling of Phillips v. Martin Marietta Corp. prohibited corporations from refusing to “hire women with preschool children unless they also refused to hire men with preschool children” (“Celebrating Women”).
Women have made great strides in employment opportunities, however, many continue to be obstructed by the “glass ceiling” when it comes to executive advancements. There have been no physical barriers prohibiting women from advancing into positions they are qualified for, but because they are women, they are denied the promotion, and thus the term “glass ceiling” was coined (“Feminist Majority”). Some executive opportunities have moved beyond the “glass ceiling” to a great degree but the persistent low numbers of women in executive positions is causing renewed analysis. In a recent Forbes’s article, while acknowledging that “bias and misogyny” still exists in the workplace, writer Margie Warrell explores the notion of a “self-imposed glass cage” due to lack of confidence and external priorities such a family responsibilities (Warrell).
The number of females representing CEO’s of Fortune 500 companies has risen to only 4.4% (Miller). A recent study reveals that companies that have gender diversified board of directors, outperform male only board companies by 26 percent over a six year period and directly contribute to the long term success of the company (Covert). A CBS News reporter citied a Pew Research Center report, “Women are now the main breadwinners in 40 percent of U.S. households – compared with just 11 percent back in 1960” (Koslov).  
Women are building in political influence, but hold only 20 seats in the 100 United States Senate and hold 78 of the 435 seats in the House of Representatives. In statewide elected offices women fair only slightly better holding 23% of executive office and 24% of legislative office (“CWAP”). Women in positions of high political power have been slow to evolve. Nancy Pelosi became the first woman Speaker of the House in 2007. There were only two cabinet positions filled by a woman between 1933 and 1979. In all of US history, only 45 cabinet positions were held by women. Today there are 7 current Cabinet positions headed by women (“List of female”).
 In 1981 Sandra Day O'Connor became the first woman Supreme Court Justice. She was appointed by President Ronald Reagan. Today, there are three sitting female Supreme Court judges (Sacks). Political representation increases power to influence legislation that directly affects women and their opportunities. In a November 2013 episode of the Today Show, Ann Curry did a story on women in the CIA. She noted that in 1995, women’s groups sued the CIA for gender discrimination. Because of this law suit, in the CIA fifty percent agents positions are filled by women and five of the eight top positions are occupied by women. The CIA chief stated that women are a valuable asset because they tend to be more intuitive than men.

Violence Against Women
The WLM took the pervasive wanton violence against women and the cultural apathy towards it head on. However, it has been a huge cultural and legal mountain to climb. In 1973 NOW began the process of establishing Rape Crisis Centers across the nation. This not only increased public awareness, but offered supportive services where none had existed. They campaigned to redefine rape “as an act of violence” (“Highlight’s of NOW”).
Following a UN resolution on violence against women in 1993, The US passed its own Violence Against Women Act in 1994 (VAWA).  The Violence Against Women’s Act provides funding for rape kit testing, rape training for law enforcement, establishes interstate reciprocity in the enforcement of restraining orders that protects victims, prevents a rape victim’s sexual past from being used at trial, and provides stronger penalties for serial rapists.  There has been a significant drop in domestic violence. It is down 67% since 1994 and there is a 35% drop in deaths resulting from domestic violence (“VAWA”). There is always push back from conservatives and in 1995 (R) Newt Gingrich, then Speaker of the House, moved to withhold funding for the Violence Against Women’s Act (“Highlight’s of NOW”). Again, in 2013 there were four separate votes on renewal of the VAWA with Republicans voting against it three times. They were opposed to including women who were Native American Indians, legal immigrants and lesbians, but it was ultimately passed because of media coverage and public pressure (Cohen). 
Today, there is increased awareness and reporting of rape, but there are still significant numbers that go unreported (“VAWA”). Despite increased public awareness; ‘rape culture’ remains pervasive throughout our society.  What is ‘rape culture’ in America? It is an environment where rape and sexual violence towards women is ignored, excused or even amplified by popular culture and media outlets (“Rape Culture”). We can see this demonstrated in the recent best seller Fifty Shades of Grey where the female protagonist is sexually objectified and dominated by the male protagonist. It creates a sociocultural norm erotizing male dominance that “disregards a woman’s rights and safety” (“Rape Culture”) and perpetuates the cycle of fear used to psychologically restrain women.
In the state of Missouri in 2012, a 14 year old girl was raped by a high school football star and was video recorded by a male friend. The charges were dropped by the prosecutor, until the national and media spotlight brought attention to the small town and the injustice in the system. The young girl and her family were forced to relocate and their home was burned down. Since the media spotlight was turned on, a special prosecutor has been assigned to investigate. Public outcry both nationally and globally have produced protests of injustice served for the 14 year old (Eligon). In Alabama, Austin Clem was found guilty of raping a female teenager and was sentenced to serve no jail time, only probation.

The Push Back Against the Women’s Movement
Conservative Christians and Republicans have developed an inseparable partnership and continue to scratch back reproductive rights for women and continue to create barriers to opportunity and freedoms. They have always maintained that the women’s movement would “undermine the integrity of the traditional family values” (“The 1960s-70s”).  A conservative Christian recently wrote “Shifting from the role of mother and housewife to another identity not found in Christ” is the wrong solution that will receive its ultimate verdict from Christ (Hong). Despite Hong’s concerns over potential spiritual ruin over making the wrong choice, she acknowledges that she and modern women of today have received direct benefits from the barriers that were removed by the women’s movement (Hong). Religious forces continue to work against women and their struggle for freedom and equality.
Women in America were initially radicalized because every new movement moves to the extreme before it centers. Women were pushed against the wall and they reacted. The power to effect cultural change can be gained from assuming a crisis mode. Today, women’s groups have left behind the hostilities of the “male chauvinistic pig” (Didion) and have moved towards a collaborative effort with the male side of the equality equation (London). Men are after all; husbands, fathers, brothers, and sons.
The women who fought the big battles continue to make their voices heard. Many are mothers and grandmothers who grew up in the midst of the women’s movement. Today, some women take the great accomplishments achieved by the women’s movement for granted and many young women have become complacent. They believe, and wrongly assume that all of the battles have been won and that women are on an equal playing field with men. Women have come far, but not far enough in equality. In fact, women are losing ground by forces aggressively working against them. 
Greater representation of women in judiciary and legislative offices is necessary to ensure women’s equality. Women’s equality is a matter concern for both them and their families.   It will be up to the millennials, both men and women, to create the third wave of activists to realize and secure the full potential of American society. According to a recent World Economic Forum’s report, the USA ranks 23rd in the world by women’s equality measures (Sauter). As a country with freedom and rights as the stated essence of American culture, it can and should do better. 

Sunday, December 22, 2013

Getting to Know Connecticut

Overview and Demographics Connecticut
         Connecticut (CT) is one of the original colonies that was settled in the 1600’s. Its governmental structure and state Constitution are reflective of the culture of its citizens at the time of its foundation. We originated from radical Calvinists, yeoman agriculturalists and Puritans (Woodard). The outcome of these settlers creates the dominant regional culture that prizes “education, intellectual achievement, communal empowerment, and broad citizen participation in politics and government.” CT is “more comfortable with government regulation and public-sector social projects.” In addition CT puts “great emphasis on perfecting earthly civilization through social engineering, denial of self for the common good, and assimilation of outsiders” (Woodard). These views represent the dominant regional culture that exists today. They are reinforced over time which compels me to ponder what my mother has always said “people are attracted to people like themselves.”
           According the US Census Bureau, CT has a 2012 estimated population of 3,590,347 which is a 0.5% increase from 2010. CT’s age demographics are 19 to 64 years 57%, 5-18 years 22.1%, 65 years or older 14.8%, and 0-5 years 5.4%. CT has a majority white population representing approximately 70% of the total population. The remaining population is Latinos 4%, Blacks 11%, Asians 4%, and, “other” for the remaining 1%. The CT female population is slightly higher than the national percentages with females representing 51% and males 49% of the population (“US Department”).
            CT is a densely populated state with both urban areas and a large suburban population. CT has approximately 738 people per square mile. CT residents are highly educated with 88% graduating from high school and 38% earning a bachelor’s degree or higher. These high levels of an educated population surpass national statistics.  We are the wealthiest state in the nation with a per capita median household income of over $37,000, median household income of $65,700 and a homeownership rate of 68.9%. Our median home value is over $293,000 (“US Department”). Our poverty rate is 9.5% and our unemployment rate is currently 8.1% (“Connecticut Labor”). CT pays the highest per capita tax in the nation, however this number is influenced by the amount of wealth that resides in the southwestern portion of the state. Total taxation puts CT approximately in the middle of the nation in taxation.
State Government
            Our state Constitution was redrafted in 1965 to address the growing complexity and dynamics in our state government. There have been 30 amendments since that time (“Constitutional”). Like the federal government, CT is divided into the executive, legislative and the judicial offices. The executive branch includes Governor Daniel Malloy (D), Lieutenant Governor Nancy Wyman (D), Secretary of State Denise Merrill (D), State Treasurer Denise Nappier (D), Comptroller Kevin Limbo (D) and Attorney General George Jepson (D). These elected positions that have a 4 year term, no term limits and are elected in the same election cycle (“Constitution” and “Office”).
            Our state constitution establishes the structure of the legislative office known as the General Assembly. It allocates 30-50 state senators with residential requirements within their districts currently holding a total of 36 state senate seats. It also allocates 125-225 representative seats, again with residency requirements within their districts currently holding a total of 151 representative seats. Both state senators and representatives have a 2 year term with no term limits. It is a bicameral legislature which means that both chambers need to propose legislation to move forward in the legislative process. An amendment to our constitution in 1980 established the minimum age of 18 to run for elected office. Any amendments to the state’s constitution require the passage of a joint resolution with ¾ majorities in each chamber. It then needs to win the majority of a popular vote in the next election cycle to be enacted (“Constitution”).
            The General Assembly (GA) is in session February to May on even years, and in odd years January until June while they work on the budget. The GA meets every Wednesday, when working on the budget, but meets more often if needed to meet state deadlines. The GA is a part-time commitment with “A” committees meeting every Monday-Wednesday-Friday and “B” committees meeting every Tuesday-Thursday. The majority of the GA meetings are open to the public. All committees have their own staffs that support all committee members (“This is”). 
           In our judiciary, our constitution only allows probate judges to be elected by voters. Under Article 5 Section 2 in our constitution, the governor has the power to nominate state Supreme, Appellate and Superior Court judges. They serve 8 year terms and can be impeached. The governor also has the power to nominate lower court judges who serve 4 year terms (“Constitution”). 
           The major players in CT politics are Lieutenant Governor Nancy Wyman who acts as president of the senate, President Pro Tempore Donald Williams Jr. (D) who is elected by state senators, Majority Leader Martin Looney (D) who is elected by the majority party senators, Minority Leader John McKinney (R) who is elected by the minority party senators, House Speaker Christopher Donovan (D) who is elected by state representatives, Majority Leader J.Brendan Sharkey (D) who is elected by the majority house party and Minority Leader Lawrence Cafero (R) who is elected by the minority house party. 
            The most powerful position is held by Governor Daniel Malloy. His powers are too many to include, but the most significant ones are; Chief Legislator setting the legislative agenda and Chief Executive to manage the business of the state. These powers are not intended to minimize his power in his capacity to nominate judges, his veto power, the role of Commander in Chief of our National Guard or the power to appoint key leadership positions within the government. He does not have the power to pardon as they do in the majority of states (“Center and Governor”).
            Governor Malloy was elected in 2010 and is the first Democratic to occupy the governor’s office in the last 20 years. CT is a state where democrats have dominated the two chambers of the legislative branch and it has been considered a secure “blue” state in federal elections with both Senators and all five Representatives representing members of the Democratic Party. As well, at the state level the majorities of both chambers are held by Democrats (“CBIA”).
Current Events and Important Issues
             CT has realized a steady and slow decline of manufacturing jobs since the 1990’s which is consistent with the national manufacturing picture (“Connecticut Labor”), but has stabilized at around 162, 000 manufacturing jobs (Baumen and Phaneuf). This is in part due to technological advancements that require less human capital as well as the shipment of jobs overseas. Job numbers alone do not represent the overall health of manufacturing in CT. The US is growing in manufacturing factories as is CT (Campos). CT manufacturing is now being dominated by high tech firms with smaller buildings with an annual growth rate of 6% adding some 290 new firms each year. There is a failure rate of 7.5% of these new start-up companies. CT provides a highly trained and skilled workforce that is very attractive to manufacturing (Baumen).
             CT recently passed their two year budget increasing spending by 10% (Phaneuf). There are those who have concern about the risk of an overextension of our financial assets. It was rejected by all Republicans in both chambers if the General Assembly.  It preserved aide to CT localities, designated needed monies to our state’s pension funds, and made critical investments into education, economic development and research and development. These are considered by an overwhelming majority of economists the essentials to economic growth. Republicans were focused on the state’s debt and expressed concerns about the state’s low economic health rating (Applebome). 
            There are varying indexes that rank CT as business friendly. The newly created CBIA Manufacturing Competitiveness Index ranks CT at 30th in the nation (Phaneuf) and others may rank CT 6th in the nation (Baumen). Potential explanations for the disparity in rankings may be; they serve individual interests, a wish to create a glossy picture to attract new businesses or use of different components in their measurement tools. I am not sure how to shake out the reliability of that specific information. It motivated me to conduct a brief interview of a few chief operating officer friends of mine as well as a former senate majority leader to get their opinions on the attractiveness for businesses to CT. All of them held not only positive, but high favorable ratings for CT’s business environment. During the informal interview, the former Republican majority leader also affirmed my conclusion that the governor’s office is very powerful. 
            The Sandy Hook Massacre has put gun violence squarely on the national legislative map and CT passed some of the most sweeping and strictest regulations in the nation in 2013 (Wilke). Over 60% of CT citizens favor gun control legislation due to our cultural norms of “cooperative citizenship” (Woodard) strong institutions and value in law and order. Although our nation has a high propensity for violence demonstrated by global studies, CT has some of the lowest death due to violence rates in the nation with 4 deaths per 100,000 (Woodard). While attending a Connecticut Against Gun Violence (CAGV) event, I learned that approximately 70% of illegal guns used in violent crimes come from Virginia which has very lax gun regulations. I compare it to someone polluting our water source by upstream dumping of toxic wastes.
             Overall, Connecticut is moving forward through difficult economic times that started developing before the 2008 crash, but were certainly exacerbated by it. We had no job growth for the 16 years under republican governors and have only added 41,000 jobs since the 2008 crash. Approximately 10,000 government jobs have been lost. Like all local and state governments, big deals have to be made to keep or attract business. Most recent is the 71 million dollar grant to Cigna to expand its workforce and establish their headquarters here in CT. My overall view of Malloy's performance  thus far is excellent and I will support his re-election bid in 2014.

Wednesday, October 23, 2013

The Weight of the Pyramid: An Aging America


My interest in the stock market began at a young age with my Polish grandparents talking frequently about the Great Depression and the inevitability of a repeat performance. Many of my ideas of survival are shaped from those impressionable young years about subjects that were considerably larger than my young age to fully comprehend. I predicted the first housing bubble bursting in the 1980’s as I had become sufficiently educated to understand the consequence of speculation, actual value and supply and demand markets.

I made my co-workers crazy in 2007 as I was advising them to move their money to the side lines as I understood the impact of deregulation of Wall St was ready to fall upon us. In 2008 I became manic and agitated as I predicted and correctly identified the timing of the crash and I met my predicted targets each month and how far the market would fall. My ex-Merrill Lynch financial boyfriend initially resisted my persistence, but finally moved his money when the DOW fell to 12,000. Anyone paying attention could see the signals of a collapse, but I cannot to this day explain how I predicted with accuracy what the DOW would be from month to month. Perhaps it was my grandmother’s spirit whispering in my ear. Your guess is as good as mine.

The laws of deduction make my assessments for the future reasonable conclusions. Most people understand the population pyramid and that the baby boomers, of which I am one of the last, are going to make our nation top heavy with retirees. We are a significant group of market investors. It used to be that there were 6 supporters for every one retiree. When I retire it will be a 2:1 ratio. It is no wonder the 2030’s will bring to bear a stress on Social Security and Medicare. It’s more a pyramid problem than it is a spending problem, although we seriously have to address our futile care system and rampant fraud from providers and unscrupulous law practices. As a RN for thirty years, I am acutely aware of the issue of futile care.

This idea of long term care insurance boggles my mind. I see it as an unattainable pyramid scheme. Why you may ask? Perhaps you have not dealt with an aging loved one yet. There are already a lack of services in homecare and extended care facilities. This deficit will only worsen in the next two decades. You may have the money, but good luck finding the care. The whole reverse mortgage is yet another bad idea. You lose value in your greatest asset, a roof over your head.

If nothing, absolutely nothing is done with Social Security, we will see a drop in payout to 80% until the boomers die off. It will not go bankrupt as fear mongers would like you to believe, and a few small measures would keep it at 100% such as just raising the current $113,000 ceiling on Social Security taxation. Means testing has bipartisan support. Why do they want to privatize Social Security? To save it? Absolutely not! Wall St will witness a retiring divesting tsunami as we tap into our investments to use as liquid cash. Think of basic supply and demand….all sellers and few buyers will drive the markets down. Wall ST wants the steady flow of guaranteed cash from Social Security to shore up the markets. I have a Tax Sheltered Annuity, but who can tell me that my taxes won’t be higher when I withdraw than when I earned it??

Social Security has USA backing, but what about private retirements that will experience the same stressor at the same time? Many companies have limited or eliminated their liability by transitioning their retirement programs to expensive 401K programs. Of course those in positions of power and in the driver’s seat of the distribution of wealth have secured significant guaranteed retirement packages. I expect any company with a significant retirement obligation will be put under financial pressure. Many of these plans have lacked necessary government oversight and are desperately underfunded. Much of the money has been shifted into bonus payouts and extravagant salaries. It is easy to predict that many will take the easy way out of their retirement obligations by filing bankruptcy. This will leave us, the taxpayer, on the hook following the “privatize the profits and socialize the losses” business model.

Deficits are not as impressive to me as the pyramid. It will leave a vacuum of unfilled positions as many of our current population cannot afford an education. We are dumbing down in the USA because of our failures in policy and priorities. I am a conservative when it comes to “an ounce of prevention is worth a pound of cure.” Obstruction of investments into our infrastructure will leave us seriously weak as a nation. Privatization of government will leave us in the hands of those proven to not give a rat’s ass about the greater population that extends beyond their own narrow circle. So many moving parts as the pyramid flips and puts its weight to bear on our nation. I hope we are strong enough to make the changes necessary to keep us moving forward with strength and resolve for the best interest of the nation, not just a few.

Wednesday, July 24, 2013

Latin American Economic Outlook


Latin America is forecasted to realize continued economic growth with Brazil predicted to exceed the US economy along with China within the next two decades. The Latin American states have a history mired with political and economic instability, but have grown into functioning democracies with robust economies in the last decade. Despite this solid economic report, there are still investments needed to secure a sustainable growth pattern within the global markets. High economic disparity plagues the region and complicates the barriers to economic health.

Focus Economics is predicting that Latin American regional economic growth will continue to endure a slight slowdown, but still have a respectable 3.2 percent average growth rate. They also note that Brazil and Mexico are the two largest economies capturing about 60% of the Latin American market share. Overall the continued global market stagnation is having an effect on the Latin Americas as large economies such as the US announce that the quantitative easing that has been spurring the low interest lending rates may be coming to a slow down. The US markets responded with volatility as the Wall Street markets realized a significant drop and the bank’s lending rate spiked. Many people ask ‘what is qualitative easing?’ It is an action by the Federal Treasury AKA the "fed" to control inflation. They buy up mortgage backed securities (MBS’s), US treasuries and offer low interest lending rates which are currently at zero. This is intended to encourage economic activity and growth when the private sectors are offering a lackluster performance on their own. Basically, they print money and reduce private debt loads.

US policies have a ripple effect on the world as well as Latin America. If we do slow our quantitative easing, there will be less money to invest in Latin American markets. Even if we say we will slow qualitative easing the credit markets contract. The EURO zone continues to struggle with high unemployment and deep recession after instituting their austerity measures. Germany, the strongest economy, has had to bail out Greece and Spain to keep the EURO from failing altogether.

The currency markets are something I know less about. What I do know is when the dollar becomes stronger; our buying power grows on the importing end of market transactions. However, selling our goods abroad or exports become more expensive. How it affects Latin American countries is dependent on their trade balance and if they are importing to grow their economies and their currency has lost value, it becomes more expensive to build infrastructure and capital investment. Currency exchange rates can play havoc on economies by inducing volatility, destabilizing markets, affecting global competitiveness and influencing access to low interest rate borrowing. There is a little known global currency called Special Drawing Rights (SDR) issued by the International Monetary Fund (IMF). I only know of its existence and its growing presence in the global economy. This may create a stabilizing effect throughout the world markets in the future.

Focus Economics reports moderate to high inflation is the forecast for Latin American economies with the average rate declining slightly to 6.6% while Venezuela will continue to suffer with high rates around 33%. This high inflation will continue to cause the Venezuelan economy to lag behind the majority of Latin America as it tries to compete in the global marketplace.  Venezuela is in a political transition as well now that Chavez has died which will create a barrier to foreign investments especially when places like Brazil look so attractive.

The report released by the Organization for Economic Co-operation and Development (OECD) which is a commission within the United Nations (UN) paints the broad overview of economic markers for Latin America and the Caribbean. The Economic Commission for Latin America and the Caribbean (ECLAC) was created in 1948 and is a regional commission of the UN. Its primary goals are to support economic growth and development, foster social justice and create a more inclusive society, encourage democracy, improve education and infrastructure development, and establish monetary policies helpful to improving trade.

The Latin American states have overall enjoyed solid economic growth since the early 2000’s. Economic growth enhances political stability and stronger democratic governments. The OECD reports that the South American states have realized stronger economic growth than the Central American states with high exports to the rapid growth in China. This has resulted in a decreased debt load on these countries and allowing them to invest their budgetary surpluses in their social safety nets, education and infrastructure. The social investments are directly responsible for the diminished severity of the recent global recession. Their average debts are in the 30% range to Gross Domestic Product (GDP) or total economic activity. This is a similar debt load that the US realized in the boom era from the 50’s to the late 70’s prior to a rapid expansion of debt load under president Reagan that hurled the US from largest lender nation to largest debtor nation.

Global uncertainty plays on every economy as we become increasingly interdependent. The Latin American states enjoyed an economic buffer from recession by the rapidly increasing China economy. The OECD report suggests that the Latin American states create some “fiscal space” to decrease their dependency on any one specific market. I believe the word is diversify and ‘don’t put all your eggs in one basket’ strategies to buffer a downturn in any one area.

What is impressed throughout the OECD report to maintain competitiveness in the Latin American economies is to understand the essential pillars of sustained growth and economic development. The three primary pillars are education, infrastructure and innovation. It is a primary function of a successful government to make the necessary investments in its population to increase productivity and attract foreign investments. Governments need to redistribute wealth to decrease poverty and spur economic growth. The Latin Americas hold large populations but are inflicted with low per capita incomes. This creates social stressors on government and economies. Their lack of a reasonable progressive tax rate structure also injects added stress to their economic systems. The average revenue incomes are considered low among OECD nation members where the average is approximately 35%. In Latin American states the range is 13% revenues in Guatemala to 32% in Brazil. The US as well is low among OECD members with a 15% revenue resource. The lack of revenues translates into lack of funds to build the pillars of economic growth.

Globalization demands a higher role of government to protect its interests in the global market. Transparency and professionalism are necessary elements to government credibility when taxation is enforced at sustainable levels. All governments have to conduct a balancing act between social safety net programs without incentivizing people not to work. It is necessary for Latin American states to root out corruption to enhance its legitimacy. Unlike the US, Latin American states are experiencing a growth in the middle class and a lessening of their poverty levels. Their education systems are in need of aggressive improvements to attract foreign investors. There has been some consideration given to government and private partnerships such as those in Germany, to build an educated workforce by establishing work-education relationships to develop the work force needed.

There are severe gaps in transportation, energy, road systems, internet, telecommunications and essential government regulations to ensure broad coverage of these deficits that private industry would otherwise be reluctant to invest in. Despite these barriers, Latin American states are poised with low debt and a ready populous to catapult them from developing nation status into the industrialized nation realm. Careful investments and financial controls will be required to sustain such a trajectory. There future indeed looks bright.

 

 

Sources:

Romero, Simon.  Economies in Latin America Race Ahead. The New York Times.30 Jun 2010. http://www.nytimes.com/2010/07/01/world/americas/01peru.html?_r=0   WEB 8 Jul 2013

Economic Snapshot of Latin America. Focus Economics. 18 Jul 2013. http://www.focus-economics.com/en/economy/region-outlook/Latin_America   WEB 20 Jul 2013

Plumer, Brad. QE3: What is quantitative easing? And will it help the economy? Washington Post. 12 Sep 2013. http://www.washingtonpost.com/blogs/wonkblog/wp/2012/09/13/qe3-what-is-quantitative-easing-and-will-it-help-the-economy/  WEB 20 Jul 2013

United Nations Latin American Economic Outlook: Transforming the State for Development. OECD United Nations. http://www.oecd.org/dev/americas/48965859.pdf   WEB 8 Jul 2013

Latin America’s Economic Future: Prospects and Challenges. Brookings. 7 Oct 2010. http://www.brookings.edu/events/2010/10/07-latin-america-economy WEB 14 Jul 2013

Luciano Cohan and Eduardo Levy-Yeyati. Latin America Economic Perspectives: Innocent Bystanders in a Brave New World. Brookings. Nov 2011. http://www.brookings.edu/research/reports/2011/11/economic-perspectives   WEB 14 Jul 2013

Manuela, Kasper-Claridge. DW. World Economic Forum. Latin America: A continent gears up for growth. 23 Apr 2013. http://www.dw.de/latin-america-a-continent-gears-up-for-growth/a-16774680   WEB 8 Jul 2013