Clear It with Sidney | Hillman Foundation

Clear It With Sidney

Notes on journalism for the common good, by Lindsay Beyerstein

Clear It with Sidney

Dismal August Jobs Report At a Glance

The economy added zero jobs in August, according to the latest figures from the Bureau of Labor Statistics. The overall unemployment rate remains at 9.1%. Minorities and youth are suffering disproportionately: 8% whites, 16.7% of blacks, 11.3% of Hispanics, and 25.4% of teenagers are unemployed, just like last month.

The 45,000 striking Verizon workers may have edged the numbers up slightly, but the fact remains that private sector job growth is the slowest it has been since last May, even if you take the strikers into account.

The private sector added about 17,000 jobs last month, but the public sector cut about the same number.

Happy Labor Day, everyone.

[Photo credit: Kieran Bennett, Creative Commons.]


Recommended Reading: Jobs, Jobs, Jobs

-Bob Herbert of Demos argues for major investment in infrastructure to help put Americans back to work. He cites some striking statistics on joblessness and the state of our infrastructure: 14 million Americans are officially unemployed and nearly half of them have been out of work for more than 6 months; 75% of American schools have structural deficiencies, 15% of the nation’s bridges are structurally deficient, and another 12% are functionally obsolete. It will cost an estimated $3-$4 trillion over the next decade to make the necessary repairs.

This is money we are going to have to spend if we wish to enjoy the amenities of industrialized living, like roads, bridges, running water, and treated sewage. So, why not take advantage of record low interest rates to tackle the twin crises of unemployment and decaying infrastructure? 

-The Republicans go medieval on the NLRB. “Rarely has a federal agency been attacked with as much vitriol as the National Labor Relations Board now faces,” reports Steven Greenhouse of the New York Times. Conservative newsletters assail the board as a bunch of “socialist goons.” Republican presidential hopeful Michele Bachamann has even sworn to abolish the NLRB if elected.

It makes sense that the GOP is targeting the NLRB right now. The NLRB is one of the remaining outlets for the Obama administration to make pro-labor policy with a divided congress. For example, as Greenhouse reported yesterday, the NLRB released a decision on Tuesday that will make it easier for nursing home workers to unionize. The nursing home decision was one of three pro-union decisions handed down ahead of the departure of chairwoman Wilma B. Liebman, whose term is up. 

-Harold Meyerson of the Washington Post on what Steve Jobs and Apple could do for the working class–namely, invest some of the company’s $76 billion pile of unspent cash to build state-of-the-art factories in the United States, instead of offshoring those jobs. This kind of foward thinking by American manufacturers would not be without precedent. Henry Ford was an arch capitalist, but he knew that his business couldn’t thrive without a healthy middle class of car buyers, so he cooperated with Franklin Roosevelt on the New Deal. Ford’s logic applies to iPads as well as Model Ts.

-International student strikers rallied in Harrisburg, PA on Monday to protest the guest worker program that brought them to the U.S. under the guise of a “cultural exchange” and set them up in low-paid jobs for a Hershey subcontractor. Three hundred student workers walked off the job two weeks ago. Thirty student workers were scheduled to travel to New York for a rally outside the Hershey store in Times Square, Wednesday.

[Photo credit: Washington Department of Transportation, Creative Commons.]

Stetson Kennedy, Investigator Who Infiltrated the Klan, Dead at 94

Stetson Kennedy, the folklorist, journalist, and undercover investigator who infiltrated the Ku Klux Klan in the 1940s, has died at the age of 94. According to his New York Times obituary:

As an agent for the Georgia Bureau of Investigation, Mr. Kennedy, by his own account, infiltrated the Klavern in Stone Mountain and worked as a Klavalier, or Klan strong-arm man. He leaked his findings to, among others, the Washington Post columnist Drew Pearson, the Anti-Defamation League and the producers of the radio show “Superman,” who used information about the Klan’s rituals and code words in a multi-episode story titled “Clan of the Fiery Cross.”

In a celebrated exploit, he stole financial information from a wastebasket outside the office of the Klan’s Imperial Wizard, Sam Roper, in Atlanta.

The information led the Internal Revenue Service to challenge the group’s status as a charitable organization and demand nearly $700,000 in back taxes. He helped draft the brief that Georgia used to revoke the Klan’s national corporate charter in 1947. 

No doubt, Kennedy’s sense of humor helped sustain him during his long career as a self-described “dissident at large.” He founded a rival “Ku Klux Klan” so that he could sue the real Klan for using the name.

In later years, Kennedy was criticized for failing to properly credit other undercover agents in his expose of the Klan. Kennedy was part of a team of three people who infiltrated the Klan, not the lone investigator he described in his most famous book. He admitted to creating a composite character under his own name, arguing that it made a more compelling story.

Kennedy was unrepentant about that decision. His goal was to tell people about the Ku Klux Klan; he was less concerned about the mechanics of telling what he knew. As Bill James notes in his recent book, Popular Crime, non-fiction authors of that era had a lot more leeway to use undeclared fictional devices: “Book writers of the 1940s did many things that would never be tolerated for a modern writer who wished to remain respectable.” Thankfully, the standards for narrative non-fiction are more rigorous today.

Note that exposing the Klan wasn’t an achievement prudent people clamoured to take credit for. One of Kennedy’s team members was a Klan defector turned labor organizer, a man who might have been reluctant to share the spotlight.

In any event, Kennedy produced voluminous documentation to support the claims he made about the Klan. There’s no question that he helped infiltrate the group and did great harm to the organization by holding its secretive rituals up for ridicule.

Stetson Kennedy deserves to be remembered for his bravery and his contributions to American journalism, even if his storytelling devices wouldn’t pass muster today.

[Photo credit: Wikimedia, Creative Commons.]



Toy Maker for Wal-Mart, Disney, and Mattel Accused of Child Labor

A factory that cranks out cheerful plastic tchotchkes for Mattel, Wal-Mart, and Disney uses child labor and gruelling mandatory overtime, according to a new report by human rights activists. Gethin Chamberlain writes in the Guardian

Disney’s best-selling Cars toys are being made in a factory in China that uses child labour and forces staff to do three times the amount of overtime allowed by law, according to an investigation.

One worker reportedly killed herself after being repeatedly shouted at by bosses. Others cited worries over poisonous chemicals. Disney has now launched its own investigation.

It is claimed some of the 6,000 employees have to work an extra 120 hours every month to meet demand from western shops for the latest toys.

The factory, called Sturdy Products, makes toys for the giant Mattel company, which last month announced quarterly profits of £48m on the back of strong sales of Barbie dolls and Cars 2 toys. Sturdy Products, in the city of Shenzhen, also makes toys for US superstore chain Walmart. Among the brands produced are the Thomas the Tank Engine range, Matchbox cars, Cars, Toy Story, Barbie and Fisher Price products, Scrabble and the Hot Wheels sets. 

The undercover investigation of Sturdy Products was carried out with the help of Students and Scholars Against Corporate Misbehavior (SACOM), a Hong Kong-based non-profit that helped expose abuses at Apple’s Foxconn plant.

This isn’t the first time Sturdy Products has been cited for violating workers’ rights. A 2007 investigation found that workers were being forced to work six to seven days a week and that the company was violating local minimum wage laws.

[Photo credit: galactic_ac, Creative Commons.]

$120 Million MLK Monument Finished By Chinese Laborers, Despite Promise to Union

The dedication ceremony for the monument to Dr. Martin Luther King, Jr. on the National Mall has been postponed as the East Coast braces for Hurricane Irene. Alex Seitz-Wald of Think Progress notes that the $120 million monument to one of the greatest champions of workers’ rights in American history was assembled by Chinese laborers. The American union whose membership has helped to assemble every major monument erected in Washington since the Civil War watched from the sidelines, despite a promise to hire union labor to complete the King monument.

The foundation that built the monument promised in writing to hire members of the International Union of Bricklayers and Allied Craftworkers (BAC) to assemble the 159 blocks of granite that comprise the two sculptures at the site. However, the foundation reneged, though it apparently hired BAC members do to other work on the project.

The sculptor of record, Master Lei Yixin, who won the blinded international competition to design the monument, brought over nearly a dozen workers from China to help him finish the project on site.

It has been reported that the Chinese workers were unpaid. BAC investigator Francis Jacobberger and Washington Post reporter Annys Shin learned in the fall of 2010 that the men were working for “national honor.” In other words, they weren’t getting paid while they were in the United States, working on Dr. King. They expected to get paid at least something when they got back to China, but they didn’t know how much. It’s not clear whether they ever got paid.

Dr. King was assassinated in Memphis while preparing to lead a march of unionized sanitation workers striking for higher wages and better working conditions. Displacing union workers with cheap labor from China is a betrayal of his legacy.

[Photo credit: Black History Album, Creative Commons.]

What's Next for Hillman Award Winner Tim Noah?

The media world was shocked Wednesday to learn that had laid off four high-profile writers: Tim Noah, Jack Shafer, Juliet Lapidos, and June Thomas.

Noah won the 2011 Hillman Award for Magazine Journalism for “The Great Divergence,” a series he wrote for Slate on inequality in America. Since April, Noah has been on leave, expanding his story into a book. Noah is the first web-based writer to win a Hillman Award for magazine journalism.

I emailed Noah to find out what’s next for him. He replied, “My main focus for the moment is on finishing the book, which Bloomsbury will publish in the spring. I will remain at Slate as a contributing writer. As for my other professional plans: Stay tuned!”

[Photo credit: Lindsay Beyerstein, all rights reserved.]

Bye Bye, Bycatch?

This month’s Sidney Award winner, Tom Gogola, wrote about how dysfunctional fishing regulations force commercial fishermen to waste tons of edible bycatch and how new technology is helping to reduce bycatch.

Bycatch is any creature a fisher catches while fishing for something else, edible or not.

In other bycatch news, Cornelia Dean of the New York Times delves deeper into the burgeoning field of anti-bycatch technology.

Dean reports on the work of the Consortium for Wildlife Bycatch Reduction, a research center administered by the New England Aquarium where fishers and scientists work together to refine fishing gear to reduce bycatch:

The new efforts focus on modifications to fishing gear. They include relatively simple steps, like changes in hook design, and more complex ones: making fishing lines more visible to whales, changing noise levels on fishing boats and impregnating metal gear with substances meant to repel “bycatch species” like sharks.

Engineered bycatch reduction goes back to the 1990s in the Gulf of Maine, where harbor porpoises were turning up in fishermen’s nets. On the theory that porpoises are sensitive to noise, engineers and biologists developed beer-can-size devices that emitted pinging noises underwater. Within weeks of attaching the pingers to their nets, fishermen saw porpoise bycatch drop by 90 percent.

Historically, fishers have suspected that scientists are out of touch with the practical realities of fishing and scientists have countered that fishers are uninterested in conservation and resistant to change. Dean suggests that, in addition to saving innocent sea creatures, joint research efforts like these may ultimately help bridge the cultural gap between the two groups.


[Photo credit: Chris Vees, Creative Commons.]

Taibbi: SEC Illegally Shredded Bankster Dossiers

“Is the SEC Covering Up Wall Street Crimes?” asks Matt Taibbi in Rolling Stone. Taibbi reports that the Securities and Exchange Commission has illegally destroyed thousands of preliminary investigation files, including early investigations of Ponzi schemer Bernie Madoff and probes of suspected fraudsters at Lehman Brothers on the eve of the institution’s collapse.

Felix Salmon of Reuters wrote, “Matt Taibbi’s 5,000-word exposé of the SEC’s document-shredding is a magnificent piece of journalism, and is the first and last place that you should look to understand what’s going on here.” 

Here’s Taibbi’s remarkable scoop in a nutshell: From 1993 to 2010, the SEC destroyed the records of preliminary investigations as soon as they were closed, even though the agency had a deal with the National Archives and Records Administration to keep those materials for at least 25 years. These files, known as “Matters Under Inquiry” or “MUIs,” are the first step towards a full-fledged investigation. An MUI may contain newspaper clippings, brokerage reports, and interview notes. Darcy Flynn, an 13-year SEC veteran who is now suing as a whistleblower, alleges that SEC officials lied about unauthorized document destruction and tried to cover it up. 

Taibbi argues that these files could have been crucial in identifying criminals before their misdeeds cost investors and taxpayers untold trillions of dollars.

Last week, NARA stated that the SEC has no authority to destroy MUIs and that NARA has been working with the SEC for a year to put a stop it.

The SEC maintains that it wasn’t required to keep MUIs in the first place. Even if federal law allowed the SEC to dispose of these records, the larger question would by why the agency would want to do something so reckless and shortsighted. Other law enforcement agencies don’t routinely trash their closed cases. These weren’t decades-old files, either. The SEC’s policy was to destroy MUIs as soon as they were closed.

The SEC’s defenders are claiming that these records were unimportant, but as Taibbi points out in an interview with Amy Goodman of Democracy Now!, SEC investigators like Darcy Flynn complained at the time that all the shredding was getting in the way of ongoing investigations.

The fact that the SEC was so determined to destroy evidence raises suspicions that the agency was more interested in coddling the financial sector than regulating it.

[Photo credit: dorena-wm, Creative Commons.]

Unlicensed "pumpers" prey on transwomen in New York

Back-alley cosmetologists prey on transwomen in New York City, peddling black market silicone injections, which temporarily enhance feminine curves at great risk to the clients’ health, Laura Rena Murray reports in the New York Times. In February, a young woman died shortly after receiving black market silicone injections in Philadelphia. In July a young transwoman* named Gabrielle Aguilar died in a Queens hospital shortly after visiting a unlicensed “pumper,” as these practitioners are known.

Why would anyone seek out an unlicensed operator to pump industrial grade silicone into her buttocks and plug the holes with Krazy Glue, as one of Murray’s subjects did? With great compassion, Murray captures the yearning that these women have for something that most of us take for granted, a body that fits with our sense of ourselves:

Zaira Quispe, 42, said she knew as a child that she was a girl, though she had been born male. She picked up a photo that she kept on the windowsill above her bed and held it out as proof. It’s a picture of herself as a smiling baby, naked and with legs crossed, concealing genitals. “Look,” she said, “even then I was trying to hide it.”

Ms. Quispe, an Ecuadorean immigrant who came to New York at age 9, was determined to get the curves that would make her look more feminine. But she lacked health insurance or the money to pay for surgical procedures that would provide them; they can cost as much as $70,000. So she tried something else: she went to a so-called pumper, a person who illegally injects silicone to modify the body.

Ms. Quispe was initially delighted with the results, but over time the liquid calcified and spread, causing infection, disfigurement, and constant pain. In 2002, a doctor told her that the liquid she thought was silicone was actually industrial oil. He said the oil had insinuated itself so deeply into her flesh that there was no way to surgically remove it without cutting out huge chunks of her hip and buttocks muscles. Fearing the treatment would be more debilitating than the disease, he told her to go home and take painkillers instead.

So, Ms. Quispe returned to her tiny apartment in Brooklyn’s Farragut Houses to live as a virtual shut-in. She’s bedridden for most of the day. Besides, she says, she’d rather stay indoors than endure the stares of her neighbors. But she may not be able to avoid surgery forever. The oil has riled her body into a constant state of inflammation. This summer she was hospitalized for bloodthinner injections to dissolve potentially lethal blood clots before they could travel to her heart.

Murray contrasts Ms. Quispe’s hardships with the opulant lifestyle of S, a New York City pumper who says she brings in $10,000 a week injecting clients with medical grade silicone she acquires on the black market:

The evidence of her success crowds the spacious two-bedroom apartment she rents in Brooklyn. The exterior of her building fits in with the dilapidated neighborhood. The front door is missing a doorknob, and the windows are boarded up and painted a mud brown, concealing the opulent interior. Inside her apartment, gold candleholders, ceramic vases, crystal and gleaming white cherubic angels sparkle under elaborate chandeliers. Thirteen Tiffany-style lamps clutter her shelves, and dozens of porcelain plates hang in rows on her walls.

One corner of her dining room contains 10 bird cages stacked in two columns from floor to ceiling, the sides of the cages covered in tin foil and each cage holding three to six canaries, finches and other small birds.

The living room is crammed with stacks of boxes containing items that she plans to move to a house she said she recently bought in Puerto Rico.

S, a transwoman whose face bears pumping, says that she’s helping her clients, unlike some of the 50 or so illegal pumpers she estimates to be operating in the city. Not everyone is willing to make fine-grained distinctions based on craftsmanship:

Pumpers are preying on desperate people who are poor,” said Pauline Park, president of Queens Pride House, an organization that provides services to lesbian, gay and transgender people. “They’re basically killing people and profiting from it.”

Murray notes that many pumping clients are underage. For some transgenderd youth, pumping is a quick and relatively cheap way to look more feminine. Many see it as stopgap measure on the road to a more expensive sex reassignment surgery. Ms. Quispe ruefully estimates that if she’d saved the money she spent on silicone injections, she could have afforded her surgery by now.

A lesser reporter might have focused exclusively on the sensational details of pumping, whereas Murray is careful to explain the connection between this disturbing phenomenon and the widespread discrimination and social dislocation that transgender people face:

Transgender youth cannot be treated by a doctor without parental consent, and many of them are estranged from their families because of their gender identities. According to a 2011 discrimination report released by the National Center for Transgender Equality and the National Gay and Lesbian Task Force, 19 percent of transgender people experienced homelessness because of their gender identity, 57 percent were rejected by their families, and 41 percent had attempted suicide.

Murray resists the temptation to demonize the pumpers or scold their clients. She consults experts who explain that the black market is a symptom of a larger problem, namely, transwomen being shut out of the medical system because of poverty, bad insurance, family breakdown, and other systemic factors. Hers is an excellent story that deserves to be widely read.

*Terminological note: “Transgender“ describes a person whose gender identity differs from the sex they were assigned at birth. A transwoman, short for “transgender woman,” is someone who was labelled as male at birth but who identifies as female. “Transgender” is a synonym for the outdated term “transsexual.”

[Photo credit: Photo of a generic syringe, for illustration, by ZaldyImg, Creative Commons.]

Corporations Seeking "Job Creation" Tax Breaks Hide Outsourcing Stats with Government Help

Multi-national corporations are begging for U.S. tax breaks in the name of job creation, but refusing to reveal how many of those jobs are created overseas, Jia Lynn Yang reports for the Washington Post:

Some of the country’s best-known multinationals closely guard a number they don’t want anyone to know: the breakdown between their jobs here and abroad.

So secretive are these companies that they hand the figure over to government statisticians on the condition that officials will release only an aggregate number. The latest data show that multinationals cut 2.9 million jobs in the United States and added 2.4 million overseas between 2000 and 2009.

Some of the same companies that do not report their jobs breakdown, including Apple and Pfizer, are pushing lawmakers to cut their tax bills in the name of job creation in the United States.

But experts say that without details on which companies are contributing to job growth and which are not, policymakers risk flying blind as they try to jump-start the hiring of American workers.

All U.S. multinationals are required to report their overseas hiring data to the Commerce Department, but the government promises not to disclose these figures to the general public.

Asked by the Post why the government agrees to keep this information secret, a researcher at the U.S. Bureau of Economic Analysis gave the official equivalent of a shoulder shrug: “I don’t think it’s a question of companies feeling like they’re hiding dirty laundry by not giving this information out,” Ray Mataloni said. “I don’t think they really have anything to hide, but I don’t really know the logic of why that’s something they don’t just put in their annual report.”

Others see the government as complicit in concealing politically volatile facts about job creation, or lack thereof.

Outsourcing has become a lightning rod, and the media coverage they’re likely to get is unfavorable,” Scott N. Paul, the executive director of the Alliance for American Manufacturing, told the Post.

The federal government is spending taxpayer dollars to keep track of outsourcing statistics from major multinational corporations and promising to keep that information secret, even though it bears on critical public policy decisions.

For example, Apple and Pfizer, two companies that stopped disclosing their overseas job numbers, are part of a corporate lobbying coalition clamoring for a massive temporary tax cut on profits earned overseas but repatriated to the United States. These gains would ordinarily be taxed at 35%, but if the lobbyists get their way, there would be a 1-year window to bring home the money at a tax rate of 5.25%.

Not to be outdone, Republican presidential hopeful Gov. Rick Perry suggested at a campaign event in New Hampshire last week that corporations should be allowed to bring home the fruits of offshoring at an even lower rate:

And here’s another issue from my perspective. Corporate profits that are offshore, that we tax at 35 percent. We know for a fact that money’s not coming back. They’re going to leave that offshore. So why not look at, and talk about, how you repatriate those dollars and have those dollars focused on job creation, but allow them to come back in at a substantially lower rate than 35 percent. Say, something like, if it’s clearly going for job creation, like zero, to get this economy working again.

The corporate lobbying coalition claims that what looks like a blatant giveaway to multinationals actually serves the greater good because the companies will use the money to create jobs. Of course, there’s no guarantee that companies will spend their tax windfall on hiring. In all likelihood, they won’t. Multinationals got a similar tax holiday in 2004, but subsequent analysis showed that very little of the money went to job creation, most of it went to pay higher returns to shareholders. Many firms that cashed in in 2004 went on to lay off thousands of workers. Pfizer, for example, repatriated $37 billion in 2004 and laid off 10,000 employees in 2005-2006.

If we can’t trust corporations to be honest about outsourcing statistics, we shouldn’t trust them with a massive tax giveaway predicated on their unverifiable promise to create jobs at home.

 [Photo credit: Dan Brady, Creative Commons.]