The Minimum Wage Is Terrible for America’s Most Vulnerable Workers

“Minimum wages reduce the employment of low-skilled workers—a group disproportionately represented by immigrants, inner-city minorities, and young people. Some workers lose jobs altogether, while others see their hours reduced. This doesn’t mean that there are no beneficiaries of higher minimum wages. Economic theory predicts that some workers who are currently employed will retain their jobs with no reduction in hours, even after the minimum wage is increased. For those workers, the increase means higher take-home pay, although the jobs themselves might become more demanding or less secure.

So, what do we know about raising the federal minimum wage to $15, even gradually? In theory, we know a lot, but the empirical evidence is limited since so few states and localities have tried it. There are, however, some noteworthy attempts to get a good grasp of what might happen.

First, the Congressional Budget Office estimates that a $15 minimum wage by 2025 would eliminate 1.4 million jobs over that period. The CBO also forecasts that this increase could decrease business income, increase consumer prices and tap the brakes on the economy.

Second, economists at the University of Washington studied the employment effects of Seattle’s move to gradually increase its minimum wage to $15. Seattle, already a high-wage city, first raised its minimum wage to $13 in 2016 and hiked it to $15 in 2021.

Summing up the findings in Seattle, Michael Strain writes in Bloomberg: “The economists found that this led to a 9% reduction in low-wage jobs. The pay increase it generated didn’t make up for the reduction in employment, and earnings fell for low-wage workers overall. The economists’ subsequent research found that the gains from the higher minimum wage accrued to more experienced workers.” As I noted, there are some winners (those who are already relatively better) and some losers (those already worse off).

In a recent Twitter thread, one of the authors of the study, Jake Vigdor, noted that the following pattern emerges for employers dealing with higher labor costs: “1) Don’t lay people off 2) Cut back hours 3) Cut back hiring 4) As workers quit, restore hours for those who remain.” He also warns that the negative employment effects are somewhat understated in the study because it ignores “a subset of the workforce: those who didn’t have jobs at baseline, before the wage increase.”

Workers who didn’t have a job at the time of the increase and won’t get one after may pay the steepest (and unseen or overlooked) cost of the minimum wage. As Williams explained in his autobiography, “Early work experiences not only provide the pride and self-confidence that comes from financial semi-independence but also teach youngsters attitudes and habits that will make them more valuable and successful workers in the future.””

Labeling groups like the Proud Boys “domestic terrorists” won’t fix anything

“Canada recently designated the Proud Boys, a far-right hate group, as a terrorist organization, a move that has put pressure on President Joe Biden’s administration to take similar punitive action against the group and others who participated in January 6 attack on the US Capitol.

The Congressional Research Service has asserted that the Capitol insurrection was an act of domestic terrorism, as defined by federal regulations and law. The FBI has identified the criminal activity by the Proud Boys as a domestic terrorism threat.

But while the federal government maintains a list of foreign terrorist organizations, it does not have a mechanism to formally designate domestic terrorist organizations. National security experts argue that creating one would not only invite legal challenges, but would do little to improve law enforcement’s response to the nascent threat of domestic terrorism.

Creating such a list would raise legitimate First Amendment concerns because it could potentially be used to target political dissidents on both the left and the right. Experts also say it’s ill-suited to address the kind of domestic terrorist attacks and plots that the US is facing, which according to the Department of Homeland Security, primarily come from right-wing extremists acting as individuals, rather than as organized groups.

The best way forward, they say, is for the federal government to better employ existing tools to combat domestic terrorism — a threat that was not prioritized by former President Donald Trump, who repeatedly refused to denounce white nationalists and told those who stormed the Capitol, “We love you.”

“Violent white supremacists are not a new problem,” Faiza Patel, the director of liberty and national security at the Brennan Center for Justice, said. “Law enforcement has dealt with them before and can do so again. The FBI’s robust response to the attack on the Capitol shows that these groups can be investigated and prosecuted under existing law, undercutting any argument for new tools.””

Tom Cotton’s big plan to “beat China,” explained

“What Vekasi did agree with, though, was another element of Cotton’s plan: ending America’s reliance on China’s extraction and processing of rare-earth elements. These elements are used in high-technology items like smartphones and flat-screen TVs, as well as military weapons systems like warplanes — and that makes them extremely valuable.

The problem is that China is simply dominant in this space. In the making of specialized magnets for electronics, for example, “the Pentagon has had to repeatedly waive a ban on using Chinese-built components in US weapons so that it could install rare-earth magnets in F-35 fighters,” Cotton wrote in his report.

It doesn’t help that when the US extracts rare-earth elements from mines in California and Colorado, more often than not they’re shipped to China to be made into American products, Vekasi told me.

The US simply doesn’t have the labor force to compete with Beijing’s industries, and it won’t unless and until Washington decides to subsidize workers to get trained in that field and companies to hire them, Cotton argues. Until the government does that, the US will remain beholden to China’s firm grip on the rare-earths sector.”

Biden’s $1.5 Trillion Budget Request Would Fund All Nails Needed for the Coffin of Fiscal Restraint

“the White House released its first budget request. It has asked Congress to approve a $1.52 trillion budget, including $769 billion in non-defense discretionary spending (a 16 percent increase over fiscal year 2021) and $753 billion in defense spending (a 1.7 percent increase).”

“Biden’s budget request includes huge funding boosts for federal agencies. The Associated Press reports he’s asking for a 41 percent boost in Education Department funding, and a 23 percent increase in spending on the Department of Health and Human Services. The government’s climate change efforts would get a $14 billion bump, while appropriations for the Department of Housing and Urban Development would jump 15 percent.”

“White House budget requests are political documents, and this will kick off months of negotiations. The topline $1.5 trillion figure could shrink somewhat.”

Biden is trying to rein in ICE with new immigration enforcement priorities

“Among President Joe Biden’s key campaign promises on immigration was to end Trump-era policies that threatened all undocumented immigrants with deportation and to identify new priorities for enforcement that protect families, workers, and longtime residents. New guidance issued Thursday is a step toward fulfilling that promise, but it still leaves individual immigration enforcement officers with significant decision-making power.

According to a memo from acting US Immigration and Customs Enforcement Director Tae Johnson, the agency will now prioritize people who pose a threat to national security or public safety for deportation, as well as recent arrivals. Specifically, that includes those who have engaged in terrorism or espionage or are suspected of doing so, people over the age of 16 who are members of criminal gangs and transnational criminal organizations, and people who arrived in the US after November 1, 2020. People who were apprehended while trying to cross the border without authorization at any point, even before November 1, are also being targeted.

The memo doesn’t make people with criminal records into automatic enforcement targets, but it does prioritize those convicted of certain offenses classified as “aggravated felonies” — which can include filing a false tax return or failing to appear in court. While those crimes might appear relatively minor, the Obama administration’s deportation guidance targeted people with just a single “significant misdemeanor.”

The memo represents a departure from Trump-era policies in which any immigrant — regardless of whether they had committed crimes or how long they had resided in the US — could have been targeted by ICE, sometimes in wide-scale raids. But it’s less clear whether the memo will allow the Biden administration to meaningfully advance from the Obama-era status quo on immigration enforcement, in which “felons, not families” were supposed to be deported as part of reforms that ICE largely ignored.”

““Despite what some critics may claim, this memo does not block immigration enforcement, but rather makes very clear that ICE officers retain discretion and that no one is completely off limits from apprehension, detention, or removal,””

Private equity ownership is killing people at nursing homes

“When private equity firms acquire nursing homes, patients start to die more often, according to a new working paper published by the National Bureau of Economic Research.

Private equity acquisitions of nursing homes is a pressing topic: Total private equity investment in nursing homes exploded, going from $5 billion in 2000 to more than $100 billion in 2018. Many nursing homes have long been run on a for-profit basis. But private equity firms, which generally take on debt to buy a company and then put that debt on the newly acquired company’s books, have purchased a mix of large chains and independent facilities — making it easier to isolate the specific effect of private equity acquisitions, rather than just a profit motive, on patient welfare.

Researchers from Penn, NYU, and the University of Chicago studied Medicare data that covers more than 18,000 nursing home facilities, about 1,700 of which were bought by private equity from 2000 to 2017.

Their findings are sobering.

The researchers studied patients who stayed at a skilled nursing facility after an acute episode at a hospital, looking at deaths that fell within the 90-day period after they left the nursing home. They found that going to a private equity-owned nursing home increased mortality for patients by 10 percent against the overall average.”

“the increased mortality is concentrated among patients who are relatively healthier. As counterintuitive as that may sound, there may be a good reason for it: Sicker patients have more regimented treatment that will be adhered to no matter who owns the facility, whereas healthier people may be more susceptible by the changes made under private equity ownership.

Those changes include a reduction in staffing, which prior research has found is the most important factor in quality of care. Overall staffing shrinks by 1.4 percent, the study found, but more directly, private equity acquisitions lead to cuts in the number of hours that front-line nurses spend per day providing basic services to patients. Those services, such as bed turning or infection prevention, aren’t medically intensive, but they can be critical to health outcomes.”

“The combination of fewer nurses and more antipsychotic drugs could explain a significant portion of the disconcerting mortality effect measured by the study. Private equity firms were also found to spend more money on things not related to patient care in order to make money — such as monitoring fees to medical alert companies owned by the same firm — which drains still more resources away from patients.”

“The researchers make a point in their opening to stipulate that private equity may prove successful in other industries. But, they warn, it may be dangerous in health care, where the profit motive of private firms and the welfare of patients may not be aligned”

How the Police Bank Millions Through Their Union Contracts

“One town’s police contract guaranteed a retiring lieutenant $121,000 for unused sick time. Another’s promises officers six months pay with no work required as a parting retirement benefit. In another contract, cops get paid $109 an hour for side gigs like monitoring traffic at construction sites.

Despite attempts to rein in police union contracts in New Jersey, costly provisions remain common, an unprecedented analysis by the Asbury Park Press and ProPublica found. The news outlets identified contract clauses throughout the state that protect officer payouts that cost the public hundreds of millions of dollars.”

“I Don’t Trust the People Above Me”: Riot Squad Cops Open Up About Disastrous Response to Capitol Insurrection

“The riot squad defending the embattled entrance to the west side of the U.S. Capitol was surrounded by violence. Rioters had clambered up the scaffolding by the stage erected for the inauguration of President Joseph Biden. They hurled everything they could get their hands on at the cops beneath: rebar, plywood, power tools, even cans of food they had frozen for extra damage.

In front of the cops, a mob was mounting a frontal assault. Its members hit officers with fists and baseball bats. They grabbed at weapons slung from the officers’ waists. They unleashed a barrage of M-80 firecrackers. Soaked in never-ending streams of bright orange bear spray, the officers choked on plumes of acrid smoke that singed their nostrils and obscured their vision.

One officer in the middle of the scrum, a combat veteran, thought the rioters were so vicious, so relentless, that they seemed fueled by methamphetamine. To his left, he watched a chunk of steel strike a fellow officer above the eye, setting off a geyser of blood. A pepper ball tore through the air over his shoulder and exploded against the jaw of a man in front of him. The round, filled with chemical irritant, ripped the rioter’s face open. His teeth were now visible through a hole in his cheek. Blood poured out, puddling on the pavement surrounding the building. But the man kept coming.

The combat veteran was hit with bear spray eight times. His experience overseas “was nothing like this,” he said. “Nothing at all.”

Over the last several weeks, ProPublica has interviewed 19 current and former U.S. Capitol Police officers about the assault on the Capitol. Following on the dramatic video of officers defending the building that House lawmakers showed during the first day of the impeachment trial of former President Donald Trump, the interviews provide the most detailed account to date of a most extraordinary battle.”

“The interviews also revealed officers’ concerns about disparities in the way the force prepared for Black Lives Matter demonstrations versus the pro-Trump protests on Jan. 6. Officers said the Capitol Police force usually plans intensively for protests, even if they are deemed unlikely to grow violent. Officers said they spent weeks working 12- or 16-hour days, poised to fight off a riot, after George Floyd was killed by Minneapolis police — even though intelligence suggested there was not much danger from protesters.

“We had intel that nothing was going to happen — literally nothing,” said one former official with direct knowledge of planning for the Black Lives Matter demonstrations. “The response was, ‘We don’t trust the intel.’”

By contrast, for much of the force, Jan. 6 began like any other day.”

“At 7 a.m. on Jan. 6, an officer on the department’s midnight shift finished work and got into his car near the Capitol. Already, swarms of people were walking past, waving Trump flags. He sat in the driver’s seat for a minute, watching. He called up an old colleague and marveled at the crowd.

The officer was surprised his superiors were letting him off duty. During the Black Lives Matter protests last summer, the night shift had often been held over to help. But he hadn’t heard anything from his bosses, so he drove home”

The Boogaloo Bois Have Guns, Criminal Records and Military Training. Now They Want to Overthrow the Government.

“Through interviews, extensive study of social media and a review of court records, some previously unreported, ProPublica and FRONTLINE identified more than 20 Boogaloo Bois or sympathizers who’ve served in the armed forces. Over the past 18 months, 13 of them have been arrested on charges ranging from the possession of illegal automatic weapons to the manufacture of explosives to murder.

Most of the individuals identified by the news organizations became involved with the movement after leaving the military. At least four are accused of committing Boogaloo-related crimes while employed by one of the military branches.”

https://www.propublica.org/article/boogaloo-bois-military-training