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One of these days ain't gonna change. Welcome, friends, to another edition of Economic Update, a weekly program of economic news and analysis that focuses on our jobs, our incomes, our debts, the debts of our children trying to get a college education, if they're up for that, the debts of everybody as they try to navigate an economic system that has us all worrying about credit and debt. I'm your host, Richard Wolff. I've been a professor of economics all my adult life, and I currently teach at the New School University in New York City. We have an exciting program today, a variety of shorter updates to begin, some responses to questions you've sent in, and then an interview on the recent encyclical of Pope Francis regarding the environment, our economic system, and what the relationship is between the two of them. So let's jump right in to the economic updates for today. The first one is a personal pleasure for me. On top of everything else I can report to you now after several months, that a story we did a while back about a college called Sweet Briar College in Virginia has had a very happy ending. And I can't often say that given the way our economy works. So I want to tell you a little bit about this. The board of that school, under very questionable circumstances, decided abruptly and without warning to close the school as of the end of this year. This is a remarkable decision made by a tiny group of people, the board of directors, because this college, like so many, is run in the manner of a business, that is a tiny group of people at the top of directors who are basically free to make pretty much any decision they want, who do not require that the decision be agreed to by the others involved in the college. By that I mean the faculty, the students and the alumna who fund the college and who build its reputation and are crucial to it. All of those groups, the vast majority of people associated with the college, Sweet Briar, and indeed with colleges in general, are excluded from the decisions, even the decisions to close the college, which was made by this board. However, here the story takes an unusual turn. As I reported some weeks and months ago, as I kept on this story, the alumna and certain students and faculty began to say, stop. This is undemocratic. This is unfair. This damages the school, the alumna, the students, the faculty, the community where the college is located. And none of these interest groups, these stakeholders, had any say in what was going on. And we don't like it and we don't want it and we don't accept it. And they went to work. And over the last week, after much struggle, a local court decided that the arguments of the alumna, the students and the faculty overwhelmed, overruled the decision of the board. The board was told, your decision is no longer valid and it would be nice to have your resignation, which the board everynot everyone but the majority of the board and those who had pushed for this decision are now gone. They're not the board anymore. This is a victory not just for the individuals involved in saving Sweet Briar College. Important as that is, this is a victory for everyone who questions this way of organizing institutions in our society, whether it's an enterprise or a college or a hospital or anything else. There is no justification, especially in a country that calls itself democratic, to have a tiny group of people unresponsive to, unaccountable to all of those affected by the decision. They shouldn't have the right to make that decision by themselves. That's what democracy means. And the people, the alumna, especially of Sweet Briar College, get my congratulations and thanks for having made a wonderful example of people deciding to say no when undemocratic decisions go against what the majority of the people need and want. Next Update this has to do with the scandal, and there is no other way to deal with it. The scandal of paid leave giving workers and a job the right to to take time off, either because they are sick or because they have a family to take care of, in which a member of the family is sick or a new member of the family has arrived, namely a baby and one or other or both of the parents are needed to help develop at least the beginnings of the life of a new person. We, the United States, are the only industrialized country that does not provide workers with any sort of paid leave, neither for sickness nor for family, let's call it, as part of government policy. There's no federal law about it, and as I say, we are the only country to do this. Let me give you some specifics. And by the way, if you're interested, there was an excellent story in the New York Times, Wednesday, June 24, about all of this. Paid leave is a need working people have demonstrated throughout history, and it is something that has won laws guaranteeing it in most other countries and certainly in all other industrial countries. So awful is the absence of this that I want to drive home to you that states and cities have decided to move on their own in the absence of a national law to provide this kind of leave. So, for example, Oregon, Philadelphia, and cities in California have All passed paid sick leave policies this year. Montgomery county in Maryland did so as well just over the last week. Last year, 11 states and cities did so and so on. However, to show the growing divide in this country between those folks who care about what happens to working people and Those who don't, 11 other states did something so extraordinary, I wanted to make sure you knew about it. Eleven other states, including Wisconsin, Arizona and Georgia. And I want to stress Wisconsin, since its Governor Walker is about to announce he's running for president in the Republican Party and ought to be called out precisely because he's the governor who helped make this happen. Eleven other states have gone in the other direction, and here's what they've They've passed laws that forbid cities in their states. You ready? Banned the cities from enacting paid sick leave. That is, if the city wants it. And the city government elected by the people want to give paid sick leave to public employees. These states have made that impossible. To be fair, other states, California, New Jersey and Rhode island offer paid family leave. And several cities, including Boston and Seattle this year have begun offering parental leave to municipal employees. Why is this important? Well, let's see. We live in a country that has the following statistics about workers leave. 35% of American workers get no paid sick leave. Of those whose earnings are in the bottom quarter of our population, 66% get none. So if you're in the bottom 25% of the workforce in terms of your salary, then two thirds of you get no sick leave. So if you get sick, you have to go to work or you lose money, either way damaging your health or your income. And you're a person who doesn't get much income. What kind of society does this? For family leave, the statistics are even greater. Listen to this. 87% of workers and 95% of those in the bottom quarter get no family leave. No leave to take care of a sick member of your family. No leave to take care of a new baby. We live in a country where the vast majority of people are not given family leave. And yet we're a country in which we claim that we are unique and exceptional because of our commitment to family values. You can't have it both ways unless you are a liar. Let me move on. Angry as that makes me. Santa Cruz, California gets a tip of my hat because they made an interesting decision, which more and more cities and towns are considering. They noticed that earlier this year as we reported, the major banks of the United States, you know, those with names like Bank America, Wells Fargo, CITIBANK things like that were found guilty of a variety of manipulating interest rates, the so called Libor scandal, manipulating foreign exchange rates, felony crimes, if I'm not mistaken, that we talked about a few weeks ago, and many other behaviors that are either illegal or unethical or both. And it turns out that in Santa Cruz they have an ordinance in their city which says we don't do business with people that have these kinds of failures, illegal or unethical behaviors on their record. We're not going to do it. And Santa Cruz is moving to not do it. Wow. And they're inviting other cities and towns across America to do likewise. That is to respond to the proven misbehavior of major banks by not doing business with them. Do business with a small bank, do business with a local credit union, do business with people who do not have on their record the kind of misbehavior that has become the normal practice for huge American banks and who of course continue to do this sort of thing precisely because there seems to be nothing other than a little bit of bad publicity and a finer which is small relative to their business from the federal oversight institutions. So here's a way you might really change bank behavior if the cities and towns that are important customers of the big banks decide to follow up when big banks do illegal and unethical things by acting in the manner of Santa Cruz. Then there's the story of the Waldorf Astoria, the ritziest hotel in New York City. The the hotel in New York City where presidents and leading diplomats from around the world, including the United States, stay when they have business in New York. This autumn, the General assembly of the United nations brings many such diplomats and dignitaries to New York and a huge number of the very highest among them, including the President of the United States, normally stay at the Waldorf Astoria. However, this year they've announced they're not going to. President Obama and indeed other high diplomats from the United States are not going to stay in the place where presidents have stayed for a century, in the Waldorf Astoria. What is the reason given Israeli choice? It turns out that the Waldorf Astoria was purchased by a Chinese corporation some years ago. It isn't an American company anymore. It's located on Park Avenue in New York City. But it isn't an American company. And according to these news releases, release is a better word, actually. There's a fear that there might be some sort of surveillance conducted on our diplomats as if they haven't got mechanisms with which to deal with that problem, which they have dealt with for decades. But we're supposed to believe that this is not a slap at the Chinesewhich is surely what it is, but is instead something dictated by security concerns. Your wonderment about that, however, gets really intense when you discover which hotel in New York they're going to go to. Instead, it turns out it's the New York Palace Hotel, used to be called the Helmsley Palace Hotel when it was owned by the American Helmsley family. But it turns out that they sold it to the Lotte Group, you guessed it, which is owned and operated by a South Korean real estate conglomerate. Turns out there's no place for our leaders to stay in America anymore when they do business in New York and except in a foreign owned business. That's what happens when capitalism changes where it is primarily located. From the old centers of Western Europe, North America and Japan to the new centers of China, India, Brazil and so on. That's what you get and the weird behavior follows from that. Final update for today and a very important one. In the United Kingdom, people have gotten together in a variety of ways to fight against austerity. And because of the traditional relationships between the United States and the United Kingdom, the common language and history and so on, I want to pay some special attention. Over the last week there was a demonstration. Over 100,000 people, 100,000 people came to London to demonstrate that they're against austerity, that they're against pushing the costs of capitalism's failure and crisis since 2007 onto the mass of people by raising their taxes and gutting the government services that they had counted on. And in England this is particularly the case with the National Health Service. So there was a huge demonstration, but there are other signs of mobilization against the Conservative anti people, anti worker mentality and policies of the Cameron government. For example, the Labour Party, which is looking for new leadership after having lost the last election, has to the surprise of many, come up with a short list of those who will be the new leaders, one of whom is a known firm anti austerity leader. His name is Jeremy Corbyn, C O R B Y N and he has surprised everybody by doing very, very well in the struggles leading up to who will be the new leader of the Labour Party. It's hard not to see a certain parallel with the surprising strength of Bernie Sanders, who is a similarly anti austerity political leader and who is doing much better than was foreseen for him in the struggle over who will be the candidate of the Democratic Party. And finally, I was struck being an economist that a very interesting group called Economists Against Austerity is mobilizing against the budget that they expect to come down on July 8th from George Osborne and the Cameron government and they will be hosting a meeting at the House of Commons on July 9th. In response, they blame the austerity to for the double dip recession in recent British history and for the severe suffering of the mass of the British people under an austerity program that they believe is a catastrophic failure. I want to take my hat off to people that are mobilizing against the kind of policies that I've just described that I go by the name of austerity and hopefully will inspire Americans and many others to do likewise. I want to now turn, as I do in the second quarter of this program often, to responding to some of your questions. One, I want to just draw your attention to a film. Last week I had a person on here, Kristin Ross, who talked about the Paris Commune and what was interesting about that experience of workers taking control of a government and what lessons, although she didn't want me to use that word, that might hold for us today. One of you then commented to me that there's a wonderful film by a fellow named Watkins, W a T K I N s called La Commune, which you can get on YouTube. So I wanted to make sure that you were all aware that in Britain, Watkins made this film that if you were interested, you could follow up on. Also, again, we're dealing with England a lot today. I wanted to bring to your attention something in England that also has an echo here in the United States. In England, there is a kind of job that comes by the name traineeship, and it's part of a program called quote Entry to Work course. Unemployed young people with little work experience are encouraged to take on these traineeships, which can last up to six months. Well, I did some inquiry and here's what I learned. Most of these people are in the private sector and they're doing such wonderful training jobs as waiting on tables, stacking shelves, and doing telemarketing. The skills that you learn there, I will not comment on. They work for six months without pay.