Now Hell's Kitchen locals are throwing "champagne and laundry parties" in apartments with washing machines. Others simply do their laundry in the sink. For this very reason, Councilwoman Gale Brewer has introduced a resolution to give tax breaks to owner-operated city businesses. "This is the most basic challenge to the crisis of the lack of mom-and-pop stores in the city," says Brewer. "It's beyond frustrating." And Christine Gorman, president of the West 55th Block Association, tells the tabloid, "The Laundromats are fleeing our area. The services in our neighborhood are disappearing. There's rumors that the Laundromat is going to become a Citibank." At least that's welcome news for anybody in Hell's Kitchen who needs some money laundered.
Weekly Pulse: GOP Plays Chicken with the Debt Ceiling
By Lindsay Beyerstein, Media Consortium blogger
Sen. Jim DeMint (R-SC) is calling for a "big showdown" over the upcoming vote to raise the nation's debt ceiling to $14.3 trillion from $13.9 trillion. The debt ceiling is simply the maximum amount the government can borrow.
Congress routinely raises the debt ceiling every year. It's common sense: Since the government has already pledged to increase spending, Congress must authorize additional borrowing. (Remember that the government is now forced to borrow billions of extra dollars to pay for tax cuts for the wealthy, which Republicans insisted on.) If the ceiling isn't raised, the United States will be forced to default on its debts, with catastrophic consequences.
Why would default be catastrophic? The principle is the same for countries and consumers alike: If you have a good track record of paying your bills, lenders will lend you money at lower interest rates. If you don't pay your bills on time, or default on your obligations altogether, lenders will demand higher interest rates.
Congressional Republicans say they oppose raising the debt ceiling because they favor fiscal responsibility. This kind of rhetoric is the height of recklessness. The interest on our debts is a big part of government spending. Even idle talk about defaults could spook some creditors into raising interest rates on U.S. debt and cost taxpayers dearly.
Steve Benen of the Washington Monthly quotes Austan Goolsbee, chair of the White House's Council of Economic Advisers, who says that congressional GOP members are flirting with the "the first default in history caused purely by insanity."
Making work pay (for real)
An astonishing 80% of full-time minimum wage workers can't afford the necessities of life, according to new research by labor economist Jeannette Wicks-Lim of the Political Economy Research Institute, featured on the Real News Network.
Wicks-Lim argues for a two-part solution to the crisis of working poverty in America: i) raising the federal minimum wage to $12.30/hr from $7.50/hr; ii) Increasing the earned income tax credit to 40% of income. She estimates that these two policy changes would raise the income of a minimum wage worker from $15,000 to about $36,000 at a manageable cost to employers and taxpayers.
Her proposal is a revamp of President Bill Clinton's attempt to "reform" welfare by cutting social service benefits and shifting government spending to tax credits. Currently, the Earned Income Tax Credit is a subsidy for the working poor that is designed to "make work pay"--i.e., if workers aren't making enough in wages to secure a decent standard of living, the government provides an income subsidy to reward them for working.
However, if a decent standard of living remains out of reach for 80% of full-time minimum wage workers, Wicks-Lim argues that the minimum wage is too low and the subsidies are too modest to achieve the stated goal of making work pay.
Colorado minimum wage inches up
Speaking of minimum wage issues, Scot Kersgaard of the Colorado Independent reports that the minimum wage in the state ticked up from $7.25 an hour to $7.36 on January 1. The modest increase represents the annual adjustment for inflation. Every bit counts, but Colorado families are falling further behind. According to a new report by the Denver-based Bell Policy Center, 8.3% of working families in Colorado live below the federal poverty line, which is $22,050 for a family of four. Fully one-fourth of Colorado families do not earn enough to meet their basic needs, which requires an income approximately twice the FPL, according to the report.
Colorado is one of only 10 states that automatically adjust their minimum wages for inflation.
Wage theft epidemic
Unscrupulous employers are stealing untold millions of dollars from hardworking Americans, Dick Meister reports in AlterNet:
The cheating bosses don't take the money directly from their employees. No, nothing as obvious as that. The employers practice their thievery by underpaying workers, sometimes by paying them less than the legal minimum wage. Or they fail to pay employees extra for overtime work, or even force them to work for nothing before or after their regular work shifts or at other times. Some employers make illegal deductions from employee wages. And some withhold the final paycheck due employees who quit.
In New York City alone, an estimated $18 million worth of wages is stolen every week. Workers in the restaurant, construction, and retail sectors are at increased risk of wage theft. Wage thieves disproportionately target undocumented workers because they assume that these employees will be less likely to report the crime.
Debt collection from beyond the grave
The dead don't tell tales, but they have been known to sign debt collection papers, Andy Kroll reports in Mother Jones. Martha Kunkle died in 1995, but her printed name and signature appear on paperwork filed by the debt collection agency Portfolio Recovery Associates as late as 2006 and 2007. The ruse was discovered and PRA, facing a fraud lawsuit, agreed in 2008 that the "Kunkle's" documents couldn't be used in court. That didn't stop the agency from trying to use them again in 2009.
The attorney general of Missouri has announced that he will investigate whether any of Kunkle's handiwork was used to support debt collection in his state. The attorney general of Minnesota is already investigating whether debt collectors have used fraudulent paperwork in court.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
robert shumake
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
robert shumake detroit
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
robert shumake
Hell's Kitchen continues to be a highly desirable neighborhood for many New Yorkers, but living in the HeKi (our coinage&msash;you're welcome Corcoran) isn't without sacrifice. Local residents who don't have washer/dryers in their buildings are finding it increasingly annoying to get their laundry done! One of the neighborhood's last laundromats, on 53rd Street and Ninth Avenue, recently closed, leaving behind, the Post reports, "a mile-long, laundry-less desert between Eighth and Tenth Avenues." This heavy news comes on the heels of Second Wave Laundry, the largest Laundromat in the neighborhood on 55th Street and Ninth Avenue, closing because the landlord threatened to raise the rent from $14,000 to $20,000 a month and demanded an $80,000 security deposit.
Now Hell's Kitchen locals are throwing "champagne and laundry parties" in apartments with washing machines. Others simply do their laundry in the sink. For this very reason, Councilwoman Gale Brewer has introduced a resolution to give tax breaks to owner-operated city businesses. "This is the most basic challenge to the crisis of the lack of mom-and-pop stores in the city," says Brewer. "It's beyond frustrating." And Christine Gorman, president of the West 55th Block Association, tells the tabloid, "The Laundromats are fleeing our area. The services in our neighborhood are disappearing. There's rumors that the Laundromat is going to become a Citibank." At least that's welcome news for anybody in Hell's Kitchen who needs some money laundered.
Weekly Pulse: GOP Plays Chicken with the Debt Ceiling
By Lindsay Beyerstein, Media Consortium blogger
Sen. Jim DeMint (R-SC) is calling for a "big showdown" over the upcoming vote to raise the nation's debt ceiling to $14.3 trillion from $13.9 trillion. The debt ceiling is simply the maximum amount the government can borrow.
Congress routinely raises the debt ceiling every year. It's common sense: Since the government has already pledged to increase spending, Congress must authorize additional borrowing. (Remember that the government is now forced to borrow billions of extra dollars to pay for tax cuts for the wealthy, which Republicans insisted on.) If the ceiling isn't raised, the United States will be forced to default on its debts, with catastrophic consequences.
Why would default be catastrophic? The principle is the same for countries and consumers alike: If you have a good track record of paying your bills, lenders will lend you money at lower interest rates. If you don't pay your bills on time, or default on your obligations altogether, lenders will demand higher interest rates.
Congressional Republicans say they oppose raising the debt ceiling because they favor fiscal responsibility. This kind of rhetoric is the height of recklessness. The interest on our debts is a big part of government spending. Even idle talk about defaults could spook some creditors into raising interest rates on U.S. debt and cost taxpayers dearly.
Steve Benen of the Washington Monthly quotes Austan Goolsbee, chair of the White House's Council of Economic Advisers, who says that congressional GOP members are flirting with the "the first default in history caused purely by insanity."
Making work pay (for real)
An astonishing 80% of full-time minimum wage workers can't afford the necessities of life, according to new research by labor economist Jeannette Wicks-Lim of the Political Economy Research Institute, featured on the Real News Network.
Wicks-Lim argues for a two-part solution to the crisis of working poverty in America: i) raising the federal minimum wage to $12.30/hr from $7.50/hr; ii) Increasing the earned income tax credit to 40% of income. She estimates that these two policy changes would raise the income of a minimum wage worker from $15,000 to about $36,000 at a manageable cost to employers and taxpayers.
Her proposal is a revamp of President Bill Clinton's attempt to "reform" welfare by cutting social service benefits and shifting government spending to tax credits. Currently, the Earned Income Tax Credit is a subsidy for the working poor that is designed to "make work pay"--i.e., if workers aren't making enough in wages to secure a decent standard of living, the government provides an income subsidy to reward them for working.
However, if a decent standard of living remains out of reach for 80% of full-time minimum wage workers, Wicks-Lim argues that the minimum wage is too low and the subsidies are too modest to achieve the stated goal of making work pay.
Colorado minimum wage inches up
Speaking of minimum wage issues, Scot Kersgaard of the Colorado Independent reports that the minimum wage in the state ticked up from $7.25 an hour to $7.36 on January 1. The modest increase represents the annual adjustment for inflation. Every bit counts, but Colorado families are falling further behind. According to a new report by the Denver-based Bell Policy Center, 8.3% of working families in Colorado live below the federal poverty line, which is $22,050 for a family of four. Fully one-fourth of Colorado families do not earn enough to meet their basic needs, which requires an income approximately twice the FPL, according to the report.
Colorado is one of only 10 states that automatically adjust their minimum wages for inflation.
Wage theft epidemic
Unscrupulous employers are stealing untold millions of dollars from hardworking Americans, Dick Meister reports in AlterNet:
The cheating bosses don't take the money directly from their employees. No, nothing as obvious as that. The employers practice their thievery by underpaying workers, sometimes by paying them less than the legal minimum wage. Or they fail to pay employees extra for overtime work, or even force them to work for nothing before or after their regular work shifts or at other times. Some employers make illegal deductions from employee wages. And some withhold the final paycheck due employees who quit.
In New York City alone, an estimated $18 million worth of wages is stolen every week. Workers in the restaurant, construction, and retail sectors are at increased risk of wage theft. Wage thieves disproportionately target undocumented workers because they assume that these employees will be less likely to report the crime.
Debt collection from beyond the grave
The dead don't tell tales, but they have been known to sign debt collection papers, Andy Kroll reports in Mother Jones. Martha Kunkle died in 1995, but her printed name and signature appear on paperwork filed by the debt collection agency Portfolio Recovery Associates as late as 2006 and 2007. The ruse was discovered and PRA, facing a fraud lawsuit, agreed in 2008 that the "Kunkle's" documents couldn't be used in court. That didn't stop the agency from trying to use them again in 2009.
The attorney general of Missouri has announced that he will investigate whether any of Kunkle's handiwork was used to support debt collection in his state. The attorney general of Minnesota is already investigating whether debt collectors have used fraudulent paperwork in court.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
robert shumake
robert shumake
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
robert shumake
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
robert shumake
So many people have the dream of making money working from home. The reasons vary. For some it is more of a necessity while for others it's more of a want.
A former housewife may find herself a newly single Mother and the job she landed in a hurry barely covers the rent and utilities. A second income is must to survive and will determine whether she and the kids have to move in and crowd in a room with her Mother or whether they can stay in their own place.
Other people simply hate a boring routine of going into work everyday and working to make someone else rich. They don't need to work from home but they have a need deep inside themselves to do their own thing and be their own boss and not be stuck in a boring routine everyday.
Some people may find themselves laid off from good jobs in our uncertain economy, some people want to save up for that vacation or new car, some have a big pile of debt to pay off, some working Mother's want to stay home with their kids but can't afford to not have an income and the list goes on and on.
The problem most every one faces who wants to start working from home is how to start? The truth is, it is overwhelming. It will usually take a lot of searching to find out what is right for you.
The most common trap people face when starting is falling for scams and hype. The hype is everywhere. Do an internet search on make money from home and there's no shortage of websites and hype to tell you exactly what to do. There are infomercials all over TV. If John Doe can make thousands of dollars working a few days a month why can't you?
There are all sorts of programs that promise easy and quick money if you just sign up for their program for a certain amount of money. There are some opportunities which you have no clue what you are supposed to do, but whatever it is, you are sure to make a ton of money. There's no shortage of testimonials of common everyday people who are now living a life of luxury. You get excited and imagine all your money worries are over and you are living in a nice beach house.
The truth is, these so called opportunities full of hype are just people getting rich off of the hopes and dreams millions of people have to work from home. Don't fall for it.
If you really want to make money from home, the first thing to do is realize it will actually take time, work, and investment and don't fall for anything that promises easy money or never, ever sign up for anything where you don't know exactly what you will be doing first.
The hardest part of being your own boss may be deciding what to do. There's so much out there to choose from and it will most likely take a lot of searching to find what is right for you.
What works for one person may not work for another. Several factors determine what will work or not. Two of the most common factors are location and personality. What works in one area doesn't mean it will work in another. The only way to find out if something will work in your area is to try. Some areas may be oversaturated with the business you are interested in and will not do good. Another area will not have this business available and will do well. You may be highly successful with a certain business in one area, but in another, you may do terrible. That's just the way it is. Know when to fold 'em. If you have put your very best effort into a business, if you have advertised and gotten your name out there and promoted yourself like crazy, but you still can't get customers or make a profit, then you either have to move or try something else. It's better just to get out than to keep losing money every month. It will be disappointing, but take it as a learning experience.
Another factor is personality. Different people have different strengths, weaknesses and passions. What works for Tina may not work for Jodie. Some people are outgoing natural sales people while others are shy. Different people have different skills and interests and should use those when looking for a business to start.
Never start something just because it worked for your friend unless you are genuinely interested in it. If you are not interested in doing something, don't do it. Why work a business you hate? You will be happier and make more money if you do something you enjoy.
Don't put everything you have into starting your own business. Some businesses fail. Actually, a lot do unfortunately. Try testing it out before you really go all out and see what the response is and do your research. Figure out your costs. How much will it cost to advertise? How much will supplies and anything else you need cost? Check out your competition.
Some people can get started right away into a business with a little investment and start making money right away. Some people. This is the exception and not the rule. Some people can join a direct sales company for little or no cost, buy a bunch of catalogs, have home parties and pass them out to everyone and start seeing good profits right away.
Whatever you decide to do, it will definitely take work. You can't just pay a fee and start making a large amount of money right away for doing almost nothing no matter what those people on TV say.
After you know what you want to do, it will take time and a lot of work to get your name out there and to get business and start making profits. If you can get a loyal customer base, you can find that working from home can be very profitable and lucrative.
What it will cost to work from home depends on several factors. There are some opportunities you can start for a very nominal fee and others will require quite a large investment.
If you decide to join a direct sales company, where you get paid a percentage of what you sell and also make a percentage off of people you recruit in the business, there are some companies where it is completely free to join. Many however require you buy a starter kit which will contain products and some business supplies. Even if you find a company that is free to join, you still will have to invest money into catalogs, business cards, and advertising.
If you want to offer your own service, your investment will be the products/equipment required as well as the basics of advertising. Some businesses will require that you be licensed and insured. Some businesses to start from scratch are your own craft business, cleaning business, baby newspaper business, pet sitting, computer repair, graphic design, home daycare, sewing/alterations, and tutoring.
An exclusively online business is great for shy people who are uncomfortable selling, but this is a whole different ball park. Profits usually come quicker and easier in the real world than online. If you want an exclusive online business, that will require a lot of research. You will need to spend hours and hours educating yourself to avoid costly mistakes and disappointment.
Don't get me wrong, if you can learn how to do it, that's great. Nothing beats waking up in the morning and finding out you just made money while you were sleeping. But you will need a theme to build a website on that isn't oversaturated, something to make it stand out, and most importantly you have to learn how to get traffic. Without traffic, your website will be worthless. Remember you will have fierce competition so that's why educating yourself is important.
Once you know what you want to do, you will have to either build yourself a website or have it built for you (which is usually expensive). Then you will have to find a host and pay for hosting. And last, you will need to do a lot of marketing to drive traffic and hopefully customers to your site.
Many people who really need money, desperately, look to making money from home. They may invest money they can't afford thinking they will make it back plus a lot of profit, just to find themselves more broke and disappointed. They probably just fell for some hype and wrongly thought it would be quick and easy to make money.
If you are desperate for money, or are looking to make money fast, then it's not a good time to actually start your own business. If you are unemployed then you should spend your time looking for a regular job as disappointing as this sounds, so you can have a steady paycheck, then try working from home on the side. For fast money, there are ways you can still make some money from home.
You can have a yard sale. If you enjoy children, put out ads and flyers offering to watch children in your home. There is always a big demand for childcare. If you have furniture or any bigger items you don't need, sell them. Put out flyers or ads in a local (small) paper offering services you can provide such as house cleaning, pet sitting, ironing, sewing, cooking, painting, or handy man jobs. Ads like these usually work best in small town papers and are cheaper but don't do so well and are more expensive in big city areas.
Or, if you are a good salesperson and know a lot of people, a direct sales business is probably a fast way to make money. Find a company that offers a good percentage, find a company that is free to join or offers a plan where you can get started for free and buy the required kit later. Then buy some catalogs and sell away to everyone you can. This way, your only cost will be the catalogs and you can make a profit on the very first day. This of course is for an outgoing person who is good at selling.
If you have a green thumb, grow flowers, herbs and plants and then sell them. If you are good at crafts, sewing, or knitting, make and sell your crafts. You can do this through newspaper ads, flyers, word of mouth, and online at www.etsy.com.
Online, you can set up a blog for free and put Google Adsense on the blog. Everytime someone clicks on an ad, you get paid. The hard part about this is actually getting traffic to your blog. You can do it, but it does take time and effort.
If you enjoy writing you can also write articles for Associated Content, (like I'm doing now). If you article is accepted, you get paid. What you get depends on what they decide your article is worth.
You can also be a freelance writer. There is a great need for writers with the explosion of websites and people looking for original website content for better search engine rankings. Be prepared for fierce competition however and be prepared to work for low amounts in the beginning until you get established.
Whatever you decide to go with, the truth is there is no secret to getting rich from home. There are two ways to really make an income from home. Good old fashioned hard work and effort or scamming people with a get rich quick scheme. So I am sorry to disappoint anyone who thought they could learn how to start making a thousand dollars a week instantly working only a few hours. But if you have a valid credit card, there are several guys willing to sell you ebooks promising some sort of secret to getting rich easily and quickly.
The moral of the story is, it takes time, effort and hard work to make a decent income from home. It's not easy and it doesn't happen overnight regardless of the hype that's out there. If you aren't willing to work hard at it, it probably won't happen. You need to have determination to make it work and you have to keep at it. You reap what you sow and if you put the time and work into it, you will be rewarded once it pays off.
robert shumake detroit
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
robert shumake detroit
robert shumake
Hell's Kitchen continues to be a highly desirable neighborhood for many New Yorkers, but living in the HeKi (our coinage&msash;you're welcome Corcoran) isn't without sacrifice. Local residents who don't have washer/dryers in their buildings are finding it increasingly annoying to get their laundry done! One of the neighborhood's last laundromats, on 53rd Street and Ninth Avenue, recently closed, leaving behind, the Post reports, "a mile-long, laundry-less desert between Eighth and Tenth Avenues." This heavy news comes on the heels of Second Wave Laundry, the largest Laundromat in the neighborhood on 55th Street and Ninth Avenue, closing because the landlord threatened to raise the rent from $14,000 to $20,000 a month and demanded an $80,000 security deposit.
Now Hell's Kitchen locals are throwing "champagne and laundry parties" in apartments with washing machines. Others simply do their laundry in the sink. For this very reason, Councilwoman Gale Brewer has introduced a resolution to give tax breaks to owner-operated city businesses. "This is the most basic challenge to the crisis of the lack of mom-and-pop stores in the city," says Brewer. "It's beyond frustrating." And Christine Gorman, president of the West 55th Block Association, tells the tabloid, "The Laundromats are fleeing our area. The services in our neighborhood are disappearing. There's rumors that the Laundromat is going to become a Citibank." At least that's welcome news for anybody in Hell's Kitchen who needs some money laundered.
Weekly Pulse: GOP Plays Chicken with the Debt Ceiling
By Lindsay Beyerstein, Media Consortium blogger
Sen. Jim DeMint (R-SC) is calling for a "big showdown" over the upcoming vote to raise the nation's debt ceiling to $14.3 trillion from $13.9 trillion. The debt ceiling is simply the maximum amount the government can borrow.
Congress routinely raises the debt ceiling every year. It's common sense: Since the government has already pledged to increase spending, Congress must authorize additional borrowing. (Remember that the government is now forced to borrow billions of extra dollars to pay for tax cuts for the wealthy, which Republicans insisted on.) If the ceiling isn't raised, the United States will be forced to default on its debts, with catastrophic consequences.
Why would default be catastrophic? The principle is the same for countries and consumers alike: If you have a good track record of paying your bills, lenders will lend you money at lower interest rates. If you don't pay your bills on time, or default on your obligations altogether, lenders will demand higher interest rates.
Congressional Republicans say they oppose raising the debt ceiling because they favor fiscal responsibility. This kind of rhetoric is the height of recklessness. The interest on our debts is a big part of government spending. Even idle talk about defaults could spook some creditors into raising interest rates on U.S. debt and cost taxpayers dearly.
Steve Benen of the Washington Monthly quotes Austan Goolsbee, chair of the White House's Council of Economic Advisers, who says that congressional GOP members are flirting with the "the first default in history caused purely by insanity."
Making work pay (for real)
An astonishing 80% of full-time minimum wage workers can't afford the necessities of life, according to new research by labor economist Jeannette Wicks-Lim of the Political Economy Research Institute, featured on the Real News Network.
Wicks-Lim argues for a two-part solution to the crisis of working poverty in America: i) raising the federal minimum wage to $12.30/hr from $7.50/hr; ii) Increasing the earned income tax credit to 40% of income. She estimates that these two policy changes would raise the income of a minimum wage worker from $15,000 to about $36,000 at a manageable cost to employers and taxpayers.
Her proposal is a revamp of President Bill Clinton's attempt to "reform" welfare by cutting social service benefits and shifting government spending to tax credits. Currently, the Earned Income Tax Credit is a subsidy for the working poor that is designed to "make work pay"--i.e., if workers aren't making enough in wages to secure a decent standard of living, the government provides an income subsidy to reward them for working.
However, if a decent standard of living remains out of reach for 80% of full-time minimum wage workers, Wicks-Lim argues that the minimum wage is too low and the subsidies are too modest to achieve the stated goal of making work pay.
Colorado minimum wage inches up
Speaking of minimum wage issues, Scot Kersgaard of the Colorado Independent reports that the minimum wage in the state ticked up from $7.25 an hour to $7.36 on January 1. The modest increase represents the annual adjustment for inflation. Every bit counts, but Colorado families are falling further behind. According to a new report by the Denver-based Bell Policy Center, 8.3% of working families in Colorado live below the federal poverty line, which is $22,050 for a family of four. Fully one-fourth of Colorado families do not earn enough to meet their basic needs, which requires an income approximately twice the FPL, according to the report.
Colorado is one of only 10 states that automatically adjust their minimum wages for inflation.
Wage theft epidemic
Unscrupulous employers are stealing untold millions of dollars from hardworking Americans, Dick Meister reports in AlterNet:
The cheating bosses don't take the money directly from their employees. No, nothing as obvious as that. The employers practice their thievery by underpaying workers, sometimes by paying them less than the legal minimum wage. Or they fail to pay employees extra for overtime work, or even force them to work for nothing before or after their regular work shifts or at other times. Some employers make illegal deductions from employee wages. And some withhold the final paycheck due employees who quit.
In New York City alone, an estimated $18 million worth of wages is stolen every week. Workers in the restaurant, construction, and retail sectors are at increased risk of wage theft. Wage thieves disproportionately target undocumented workers because they assume that these employees will be less likely to report the crime.
Debt collection from beyond the grave
The dead don't tell tales, but they have been known to sign debt collection papers, Andy Kroll reports in Mother Jones. Martha Kunkle died in 1995, but her printed name and signature appear on paperwork filed by the debt collection agency Portfolio Recovery Associates as late as 2006 and 2007. The ruse was discovered and PRA, facing a fraud lawsuit, agreed in 2008 that the "Kunkle's" documents couldn't be used in court. That didn't stop the agency from trying to use them again in 2009.
The attorney general of Missouri has announced that he will investigate whether any of Kunkle's handiwork was used to support debt collection in his state. The attorney general of Minnesota is already investigating whether debt collectors have used fraudulent paperwork in court.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
robert shumake detroit
Social <b>News</b> Site Reddit Reports 200%+ Growth in 2010
Social news site Reddit posted year-end numbers this afternoon including January and December page view stats that climbed from 250 million pageviews to more than 3X that number, ...
John Roberts Leaves CNN for Fox <b>News</b> - NYTimes.com
Executives at CNN confirmed Monday that John Roberts, who served as the morning anchor for the network since April 2007, would be joining Fox News as a national correspondent.
Small Business <b>News</b>: Starting Your New Business In A New Year
Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.
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