Category: Uncategorized

  • Dallas Fed Warns of Commercial Real Estate Losses

    Excerpt from Dallas Fed “Economic Letter.”

    In short, tougher times appear to lie ahead. Worsening macroeconomic conditions, particularly in the retail and other service sectors, are hurting CRE [Commercial Real Estate] fundamentals. Meanwhile the intensification of the credit crunch is dampening market activity. And if commercial property’s situation does grow worse, banks are likely to face further losses. One factor that might limit these risks is that the commercial real estate sector wasn’t as grossly overbuilt heading into the current economic slowdown as it had been in the early 1990s.

    See full report by Dallas Fed economist Roland Meeks.

  • The Bush Recovery: Bankers First, Workers Last

    As the politicos of Washington, Dallas, and Austin scurry to keep the capital infrastructure from falling down (see notes below) the Bush administration today published new Agriculture rules that labor advocates say will roll back rights of farm workers to bargain for higher pay and better working conditions.

    “The Bush Administration has released midnight regulation changes to slash wages, make it easier to hire foreign workers, and reduce worker protections under the H-2A agricultural guestworker program,” argues a summary report from Farm Worker Justice [in pdf format].

    DOL [Department of Labor] has changed the recruitment requirements so that employers claiming a labor shortage will not have to engage in meaningful recruitment of U.S. farmworkers and the state job service
    agencies will not be permitted to be effective in referring job applicants to H-2A employers.
    The DOL has decided that H-2A employers need not engage in positive recruitment in known areas of farm labor supply if those areas have agricultural employers looking for farmworkers.

    Despite their claim to be free market supporters, the Administration’s officials are by regulation ending competition among employers. Furthermore, DOL is withdrawing the obligation to engage in the same kind and degree of recruitment for US workers as it does for foreign workers. This allows employers to claim that they can’t find any US workers, while not making any real effort, while at the same time engaging in huge recruitment campaigns in Mexico, Guatemala, Thailand and other nations in the effort to find exploitable guestworkers.

    The new Bush plan drives back protections along two fronts, say advocates. On the one hand, the new rules will make it easier for employers to sidestep requirements to first exhaust local labor supply.

    In a report titled “Litany of Abuses” the Farmworker Justice organization recalls how agricultural employers can make deceptive commitments to local labor as a pretext for claiming that foreign workers need to be imported [in pdf format].

    Meanwhile, the new rules make it more likely that so-called guest workers will be more easily subjected to labor rights abuses such as summary firings, lowered wages, and poor working conditions.

    The Dallas Fed chief today made fond references to historical lessons learned. In labor rights also we find that the steel gears of the business cycle act in familiar ways. Hard times crush down against the lowest rungs of labor at home and abroad even as an almighty determination is applied to lift the axles of global capital from the muck of its own discharge.–gm

    See also: the Harvesting Justice commentary by Barb Howe.

  • After Elite Education in Texas

    By Greg Moses

    When Art Laffer and the Dallas Fed converge on message, who can doubt that Texas elites are listening to what they most want to hear? In a 2008 review of Texas taxes, Reagan-era supply-side guru Laffer co-authored a report that ranked Texas seventh in the nation on an “Education Freedom Index” that tested for “vouchers, tuition credits, and corporate tax-deductible scholarship programs.” Yet, seventh place is no reason for celebration argued the “Laffer Report”:

    “The U.S. rankings are clustered so closely together that a high score, on a curve, still means the state is a long way from potential levels of education freedom. If other states implement choice systems, Texas’ relative rank would fall precipitously. Texas should not see its high rank as a reason to celebrate; rather as evidence that Texas is making important first steps in a crucial and lengthy reform process.” (p. 24: pdf format)

    On Friday the Federal Reserve Bank of Dallas agreed that 2009 will be no year for higher education complacency:

    “The Texas higher education system faces many challenges in enrolling students from low- and moderate-income households. The state has a low overall graduation rate and, compared with other states, one of the smallest percentages of college-age population enrolled in college. A recent study by the Texas Public Policy Foundation’s Center for Higher Education suggests that the state’s public university system may be promoting a growing elitist society where only those students from families with considerable assets have access to the state’s top universities. In the U.S. as a whole, about 35 percent of American undergraduates receive federal Pell Grants, need-based grants to low-income students. Texas’ top-ranked universities (ranked by U.S. News & World Report), and those that receive the most state resources, have a significantly smaller percentage of students receiving Pell Grants.”

    The Dallas Fed posts a graph of the “top Texas universities” and their lack of educational freedom as measured on a Pell Grant scale.

    Of course, the ideological packaging for Laffer and the Dallas Fed precludes any outright call for more government spending. The “Laffer Report” favors an environment of low wages, low taxes, and less government. The Dallas Fed is touting “asset building” for low income families. If public money is spent, it would be used to “match” higher education savings accounts for qualified low-income families (see Smart Savings Accounts). Banks would get the money first.

    Between the two publications we get a call for improved bootstraps, the better for the poor to lift themselves higher. And so far as that goes, who could oppose them? But neither report tells us that the hurdles in this race for educational freedom are getting higher by the year as elite incomes move further and further ahead of low- and middle-income Texans, and as tuition increases cater to the elites who don’t need to bring Pell Grants with them.

    When the history of the 21st Century is written, it will record early years when Texas enjoyed an infusion of young talent from the South. What Texas did with that bounty of youthful labor and talent is what the next chapter will tell.

  • Jennifer Gale Death Caused by Lack of Shelter for Transgender Homeless

    Editor’s Note: Usually this is the time of year when downtown bus riders in Austin listen to Jennifer Gale singing Christmas carols. No more sweet fa-la-la’s from Jennifer. We should have sung along.–gm

    Equality Texas mourns the death of Jennifer Gale, a 47-year-old transgender homeless woman who died yesterday. Jennifer’s body was found Wednesday morning. She was lying in an outdoor walkway at the First English Lutheran Church in Central Austin.

    A perennial candidate for public office in Austin and Dallas, Jennifer’s notoriety came through years of putting herself in the public eye. She took a shot at nearly every city office, from council seats, to the mayor’s office. She never won, but in 2004, Gale came closer than ever, winning more than 38 percent of the vote for a seat on the Austin ISD School Board.

    Jennifer’s voice rang through Austin Council Chamber doors every week, often times in support of the homeless population of which she was a part.

    “Let’s give the homeless a place to exercise that need jobs and need help,” said Gale Tuesday night before the city’s Health Services Board.

    Her death points to critical problems faced by the homeless, and especially by homeless women and the transgender homeless.

    “Jennifer most nights slept outdoors,” said Austin Mayor Will Wynn. “Jennifer, we believe, is the 136th person who has died sleeping on the streets (of Austin) over the last 12 months.”

    Marti Bier, policy aide for Austin City Council Member Randi Shade, said, “Something Jennifer would never talk about, but was a reality for her, is that she is a transwoman living in a transphobic society. Homelessness in the trans-community is a really big problem, and one that goes ignored. There are no laws in Texas protecting transgender people, whether from job discrimination, housing discrimination or hate crimes.

    “There was really nowhere for Jennifer Gale to go to protect herself from the cold last night,” said Bier. “The Salvation Army (the only shelter in town that takes in women) would not let her in there unless she was grouped with the men (which includes sleeping with, and showering with, other homeless men). They would make her use her male birth name and completely disregard, and disrespect, her identity as a trans-woman. There is so much to be learned from Jennifer Gale, and so much to be worked on in our community.”

    Equality Texas, the Transgender Education Network of Texas, and City of Austin officials are now working together to address changes in policy, or enforcement of existing policy, that might prevent another tragic loss of life. The City of Austin’s non-discrimination ordinance is inclusive of sexual orientation and gender identity with regard to employment and public accommodations. The ordinance includes certain religious and private club exemptions, which will be reviewed for applicability to the delivery of shelter services for the homeless.

    Source: email from Equality Texas

    a righteous link from Pam’s House Blend here. Thanks Pam and Autumn.

  • Local School Payrolls Make up Half of Texas Job Growth in October 2008

    By Greg Moses

    With worrying economic news we continue to explore Civil Rights in an economic context. What does it mean when Texas leaders point to jobs growth in Texas?

    In October 2008, the actual Nonfarm Employment in Texas (not seasonally adjusted) increased by 43,600 jobs for a total of 10.7 million Texas jobs. It was the Service Providing Sector that kept Texas in the job-growth zone after the Goods Producing Sector lost a total of 3,000 jobs.

    Of the 46,900 new Service Producing jobs in Texas, a hefty 33,700 came from the Government sector, especially from Local Government Educational Services, which added 26,200 jobs. This, my friend, is your local property tax at work, providing an equivalent of half the actual Nonfarm job growth in Texas for October 2008.

    Goods Producing

    The Goods Producing Sector offered 1.8 million jobs in Texas during October after losing 3,300 jobs. Within the Goods Producing sector, Natural Resources and Mining was up 1,500 jobs while Construction was down 700.

    Within Construction, Heavy and Civil Engineering was down 1,100, and Specialty Trade Contractors were down 800. Building Equipment Contractors and other specialty trades decreased by 1,700. On the positive tick in Construction, Building Construction was up 1,200, thanks to an increase of 900 jobs in Building Finishing, Foundation, Structure, and Building Exterior Contractors.

    Texas Manufacturing slipped to 926,800 jobs after losing 4,100.

    Durable Goods

    The Manufacturing Durable goods sector lost 2,500 jobs, with biggest hits coming from Transportation Equipment Manufacturing (-900 jobs); Wood Product Manufacturing (-600 jobs); Agriculture, Construction, and Mining Machinery Manufacturing (-600 jobs); Computer and Peripheral Equipment Manufacturing (-500 jobs); and Furniture and Related Product Manufacturing (-500 jobs).

    Bright spots in Texas Durable Goods Manufacturing came in two sectors. The Machinery Manufacturing Sector increased to a total of 97,900 jobs after adding 300 jobs in October. And the Aerospace Product and Parts Manufacturing sector grew to 47,600 jobs after adding 200 jobs in October.

    Non-Durable Goods

    In Non-Durable Good Manufacturing a total of 1,600 jobs were lost, with the biggest loss coming from Plastics and Rubber Products Manufacturing (-400 jobs).

    The Chemical Manufacturing Sector still reports a total of 74,300 jobs after losing 100 jobs in October.

    The largest sector in Texas Non-Durable Goods Manufacturing is Food Manufacturing, which grew to a total of 90,800 jobs after adding 600 jobs in October. Animal slaughtering also added 300 jobs in October for a total of 39,600 jobs.

    Service Providing

    The Service Providing Sector in Texas grew to nearly 8.9 million jobs after adding 46,900 jobs in October. Of those new service jobs, 33,700 came from the government sector of nearly 1.8 million jobs. And of the new government jobs, 26,200 came from Local Government Educational Services.

    In the Private Service Providing Sector of nearly 7.1 million jobs, there were 13,200 new jobs added in October.

    Retail

    Retail employment grew by 5,700 jobs to nearly 1.2 million. Retail sector leaders were Clothing Stores (+1,700 jobs); Electronics and Appliance Stores (+1,500 jobs); General Merchandise (+1,400); Miscellaneous Store Retailers (+1,300 jobs); and Office Supplies, Stationery, and Gift Stores (+1,100).

    Retail sector losses were felt by Automotive Dealers (-1,400 jobs); Motor Vehicle and Parts Dealers (-800 jobs), Gasoline Stations (-700 jobs), and Automotive Parts, Accessories, and Tire Stores (-300 jobs).

    Transportation

    Also in the Private Service Providing Sector, the Transportation, Warehousing, and Utilities sector was able to add 1,800 jobs, bringing total employment in that sector to 442,400. Sector leaders were Support Activities for Transportation (+1,800 jobs); Transportation and Warehousing (+1,100 jobs); Utilities (+700 jobs); Warehousing and Storage (+500 jobs); and Courriers and Messengers (+300 jobs).

    Truck Transportation on the other hand was down by 1,100 jobs to 119,300. Air Transportation was down by 200 jobs to 63,100.

    Information

    The Information sector was able to add 700 jobs, 200 of them from Data processing, hosting and related services. Telecommunications fell to a total of 94,800 after losing 500 jobs. And publishers of Newspapers, Periodicals, Books, and Directories fell to a total of 31,100 after losing 100 jobs.

    Financial Activities

    Financial Activities lost 1,600 jobs, bringing the sector to a total of 653,900 in October. While Depository Credit Intermediation services lost 500 jobs, another 900 jobs were added for Nondepository Credit Intermediation.

    Rental and Leasing Services lost 700 jobs.

    Professional and Business

    Professional and Business Services added 14,200 jobs in October bringing the sector to a total of nearly 1.4 million jobs. Professional, Scientific, and Technical Services added 7,000 jobs. Administrative and Support Services added 7,400 jobs.

    Educational and Health

    Educational and Health Services added 6,100 jobs in about equal parts Health and Education for a sector total of 1.3 million jobs.

    Leisure and Hospitality

    Leisure and Hospitality employment fell by 9,800 jobs, with heaviest losses coming from Accommodation and Food Services (-5,700 jobs); Arts, Entertainment, and Recreation (-4,100 jobs); Accommodation (-3,800 jobs); and Amusement, Gambling, and Recreation Industries (-3,800 jobs).

    Other Services

    In the “other services” sector, Religious, Grantmaking, Civic, Professional, and Similar Organizations lost 1,700 jobs.

    Priorities

    Something needs to be said after comparing the fastest growing sector in October — Office Supplies, Stationery, and Gift Stores (+4.3 percent) — to the fastest declining sector, Amusement, Gambling, and Recreation Industries (-4.6 percent). As global economic news turned from bad to worse, Texans left the casinos for office supply stores, assisted in some part by renewed government employment in state and local education. If this is how Texas continues to meet the hard times, you gotta believe karma will return good things.

    Note: numbers taken from actual Nonfarm employment figures (not seasonally adjusted). Get the spreadsheet directly in xls format, or find the link at Texas Tracer.