I'm a voracious reader. It's true, I'm geeky like that. I think it's my mom's fault. She always had a book in her hands. Today, it's not just books or newspapers or even magazines that capture readers, it's also the web. I know, this is now surprise to you, the intrepid web-reader. But, I think it's still something that should be said, out loud.

Okay, so let's get to my point. Economics.

This theory has always been a complete mystery. It's this social science that seems to pretend to be more science than social study. It's as foreign to my thinking as say Physics. Funny thing is, that apparently, Economics is based, in part on Physics. So, when I read the recent Reuters piece on Economists getting it wrong, once again:

Factory activity surveys in the United States were also expected to show a steeper contraction in December, as demand collapses in the Western countries that developing nations rely on as export markets.

Economists and policymakers had seen China, Russia, India and Brazil, with their vast markets and rising wealth, as the engines of growth that could save the world from recession. Those hopes are fading fast and forecasts are getting gloomier.

I know, you're surprised, right? 'Cause Economists have gotten so much right lately, huh?

Well, this is where my voracious reading thing comes in.

Earlier this week, one of my all time favorite writers, Shirah (Unbossed and Dailykos) decided to take her knowledge of history and economics and combine it into a story about Massive Economic Experiments. Before I exerpt her, let me first say, you've got to head over and read the entire thing. My excerpt just doesn't do it justice. Okay, so let's just get to the meat:

What we have learned from these natural experiments is that regulations are helpful in safeguarding us - something markets are uninterested in- and they do so, in part, by providing needed information so we can protect ourselves. This is an interesting point, because market theory tells us you need complete information to have a functioning market. By removing regulations, the free marketeers took away something that supports a functioning market.

Now, obviously, I lied when I told you that we were going to test these theories. The truth is that the proponents of free markets never really test these big theories. Rather, they treat them as if they were religious dogma, something that need not be subjected to testing. The inadvisability of doing so can be found by looking at how classical economic theory developed. This article from Scientific American provides an overview:

The 19th-century creators of neoclassical economics—the theory that now serves as the basis for coordinating activities in the global market system—are credited with transforming their field into a scientific discipline. But what is not widely known is that these now legendary economists—William Stanley Jevons, Léon Walras, Maria Edgeworth and Vilfredo Pareto—developed their theories by adapting equations from 19th-century physics that eventually became obsolete. Unfortunately, it is clear that neoclassical economics has also become outdated. The theory is based on unscientific assumptions that are hindering the implementation of viable economic solutions for global warming and other menacing environmental problems.

The physical theory that the creators of neoclassical economics used as a template was conceived in response to the inability of Newtonian physics to account for the phenomena of heat, light and electricity. In 1847 German physicist Hermann von Helmholtz formulated the conservation of energy principle and postulated the existence of a field of conserved energy that fills all space and unifies these phenomena. Later in the century James Maxwell, Ludwig Boltzmann and other physicists devised better explanations for electromagnetism and thermodynamics, but in the meantime, the economists had borrowed and altered Helmholtz’s equations.

The strategy the economists used was as simple as it was absurd—they substituted economic variables for physical ones. Utility (a measure of economic well-being) took the place of energy; the sum of utility and expenditure replaced potential and kinetic energy. A number of well-known mathematicians and physicists told the economists that there was absolutely no basis for making these substitutions. But the economists ignored such criticisms and proceeded to claim that they had transformed their field of study into a rigorously mathematical scientific discipline.

Shirah goes on to discuss behavioral sciences and how the latest breakthroughs in behavior studies show that humans as well as numerous animal species work toward cooperation. Cooperation, not self interest is a much higher order concern or desire. Now, this was news to me. It's not like I just crawled out from under a rock, but what I always get from anti-union folks is that they think that human beings and especially themselves are held back by cooperation. That if they can work on their own, they'd be more successful. Given the opportunity, they could lead a team of folks based on their abilities alone, without the interference of cooperation.

now, anyone who's worked on or lead a project from building a house to designing a web site knows that no one works in a vacuum. That when we all work together, we are stronger, better, faster, more accurate and damn it, we get things done. Take the 2 hour house, yeah, I said it, 2 HOUR HOUSE:

The Two Hour House was a perfect mix of clear vision, a willingness to live big, the determination to manifest a dream, the power of group focus, systemic psychology, passion, and the recognition of the willingness to play the biggest game of your life. Volunteers came together across industry lines and together they created something amazing.

It's impossible to build a house in 2 hours. No, seriously, do you know what has to go right to make something like this happen? From the footers being laid to the concrete being poured to the dry wall, plumbing, electrical, roofing and everything else that needs to be done in so many different areas in the same moments in time. And you thought Extreme Makeover Home Edition was ambitious!



Sorry, had to add the promo video, it is a good show.

My point here is that we get the doom and gloom today about more issues with slow downs and how economists are worried because, basically, they didn't predict this to be the case. They had hoped that Russia, China and India could keep the world economy chugging along. Problem is that the folks buying the products in Detroit, Dallas, Atlanta, Chicago, London, Paris, Marseilles, Oslo and just about everywhere else in the "1st world" countries, aren't buying now. There's a glut of products (come on, we all know this) and with savings down, home process shot and little credit available, many folks aren't about to put themselves out further on the limb to bring home more stuff that they don't need.

I know this isn't anything you haven't heard before. But let me hazard a guess, if you're an American, you've never heard about Disney giving away vacations:

Offer valid for most Disney resorts at varying rates for stays most nights 2/9 - 4/4 and 4/19 - 6/27/09.


Sample 7 Night Package at a Value Resort as low as $1375 including 7 Day Theme Park tickets

For a family of four in a standard room

For stays most nights between 4/19 - 5/21/09
That's like paying $50 a night per person for this package
Total package savings of $416

Plus, when you travel between 2/9 - 3/29/09, you'll also get a $200 Disney Gift Card

and I suppose if you do it on your Birthday, you get even more, because you can head to Disney for free on your birthday.

I'm 39 years old. I have never seen Disney post vacation prices for a family of 4 at any of their resorts for under $1500, but to through in $200, well, this was the moment that I realized, something is really wrong.

So, the next time you hear about an Economist talking, keep in mind that they may be using formulas that Physics gave up on in the 1800's. That Disney is giving away vacations and that cooperation is way more important than self interest. Next time you look into the eyes of your kid, you'll really get that last one, because few parents don't think kid first themsleves second. Hell, don't we all know this when we're on an airplane and they tell you to put your mask on first before helping your child? They have to actually tell you this, because as a parent, you do the opposite, thus disproving what Economics is really based on and that to me also reminds me of exactly why Free Markets don't work. They don't take into consideration cooperation. And for a union girl, well, we call that sort of thing SOLIDARITY.

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DELL, notorious for using labor all over the world (exploitation shipped from country to country) has contracted with UNICOR to recycle their computers (only after they came under fire from environmental advocates for dumping toxic waste).

CBS News posted a story on this (but since it’s from AP, I won’t be linking to those rat bastards at AP). The most important aspect of this piece is that UNICOR pays their inmates who do recycling as much as $1.26 per hour. Okay, they also pay as little as about a quarter of a dollar, but, whatever.

Years ago, 60 minutes did this amazing piece on how UNICOR (Federal Prison Industries) doesn’t have to worry about trademarks and patents and has actually put textile mills in the states out of business.

So, this got me thinking about why UNICOR’s future challenges tend to be an explosion in the prison population. Why have prison populations exploded and why should I care?

Well, you see, we all should care, because, there's a correllation between unemployment and crime.

In a 1987 study of Growth in incarceration among African Americans showed a direct correlation with growth in unemployment among African Americans. In another study, for the Journal of Human Resources, author Ming–Jen Lin correlates a drop in UNION workers with unemployment and an INCREASE in rates of burglary and robbery. From the paper's abstract:

We find a one-percentage-point increase in unemployment would increase property crime by 1.8 percent under the OLS method, but that the elasticity goes up to 4 percent under 2SLS. The larger 2SLS effect has significant policy implications because it explains 30 percent of the property crime change during the 1990s.

Freakin-A. Not only do unionized workers get a "union-premium," but there's a correlation to the drop in unionzation with a rise in crime (coupled with a rise in unemployment).

So, when I saw the latest post on Unbossed (thanks again Shirah) about inmates and UNICOR, it didn’t really surprise me that UNICOR has complaints against it from inmates seeking help with the recycling program’s toxic exposures of inmates. From UNBOSSED (in its entirety):

They're just criminals - so why should we care about how they are treated in The Big House?
In fact, if we can get "Onshore outsourcing at offshore prices" by using prison labor, what's the problem?

As I said in 2007,

It's hard to imagine a creepier government web page than that of the National Security Agency - do not skip intro. Although the NSA kid's page comes close.
This is sock you in the face creepy. But a far creepier federal agency webpage is that of Unicor. What? Never heard of Unicor?

And don't we just know that the bureau of prisons program through UNICOR is just Poisoning Prisoners for Profit and that Life in Prison is a Riot

Well, now the latest, in the sorry saga. Here is the July 16, 2008 letter from NIOSH on this subject:

On November 27, 2007, the National Institute for Occupational Safety and Health (NIOSH) received your request for technical assistance in your health and safety investigation of the Federal Prison Industries (UNICOR) electronics recycling program at Federal Bureau of Prisons (BOP) institutions in Elkton, Ohio; Texarkana, Texas; and Atwater, California. You asked us to assist the United States Department of Justice, Office of the Inspector General (USDOJ, OIG) in assessing the existing medical surveillance program for inmates and staff exposed to lead and cadmium during electronics recycling, and to make recommendations for future surveillance.

In addition, you asked us to assess past exposures to lead and cadmium, and to investigate the potential for take home exposure. This interim letter summarizes our findings and provides recommendations to improve the safety and health of the inmates and staff at the Federal Correctional Institution (FCI) in Elkton, Ohio. These findings will be included in a final report that will contain findings from the evaluations at all three institutions identified in your request.

As it turns out, monitoring results for past exposures are not available because they just weren't done for the most part or, if performed, they were so badly performed that they are of little use.

Electronics recycling at FCI Elkton appears to have been performed from 1997 until May 2003 without adequate engineering controls, respiratory protection, medical surveillance, or industrial hygiene monitoring. Because of the lack of both biological monitoring and industrial hygiene data, we cannot determine the extent of exposure to lead and cadmium that occurred during that time frame, but descriptions of work tasks from staff and inmates indicate that exposures during that time frame were likely higher than current exposures. The current GBO is a significant improvement, but can be further enhanced to limit exposure to those performing glass breaking, as well as limiting the migration of lead and cadmium from the room into other areas. While some take-home contamination does occur, surface wipe sampling and biological monitoring suggest that take-home contamination does not pose a health threat at this time. Take-home contamination can be further reduced by changes to the GBO, work practices, and improved personal hygiene as recommended below.

We cannot determine the extent of exposure to lead that occurred in the chip recovery process because of the lack of data. Descriptions of work tasks from staff, and a BLL of 5 μg/dL in an inmate 4 months after the process ended indicate that exposure to lead during this process did occur. We found no evidence that actions were taken to prevent exposure to lead at the outset in the chip recovery process and found that no medical surveillance was performed until after the process ended.

Medical surveillance that has been carried out among inmates and staff has not complied with OSHA standards. No medical exams (including physical examinations) are done on inmates; staff receive inconsistent examinations and biological monitoring by their personal physicians; biological monitoring for lead is not done at established standard intervals; and results are not communicated to the inmates.

Inappropriate biological monitoring tests have been done. Records of medical surveillance are not maintained by the employer for the appropriate length of time.

The report makes many recommendations for improvement. I personaly like this one as the most likely to ameliorate the situation:

7. Appoint a union safety and health representative. This individual should be a regular participant on the joint labor-management safety committee that meets quarterly. Since inmates do not have a mechanism for representation on this committee, ensure that they are informed of its proceedings and that they have a way to voice their concerns about and ideas for improving workplace safety and health.

Yep. If you want help getting your workplace conditions improved, get union representations. Not so easy for the prisoners, of course, but maybe they can piggy back on the prison workers' union representation.

After all, contamination for one is probably contamination for all.

But Shirah has only provided the most recent blog posting on UNICOR and their roll in the US. Before Shirah’s most recent posts, there was this one from Ian Urbina, America’s Prison Factories. Where Ian notes that:

Over the years, FPI has grown exponentially, now ranking as the government's thirty-ninth largest contractor -- in no small part due to the quantity and diversity of apparel items it manufactures for the Department of Defense. The company has churned out more than 150,000 Kevlar helmets in the past 24 months, more than $12 million worth. Aside from the battle-dress shirts sewn at Greenville, the company is also a major supplier of men's military undershirts, $1.6 million of which it sold to the Pentagon in 2002. In that year, FPI made close to $3 million fashioning underwear and nightwear for the troops. Inmates also stitch together the vestments donned by military pastors and the gowns cloaking battlefield surgeons. If an item of clothing is torn in combat, it will likely be sent to the prison shop in Edgefield, South Carolina, where it is mended at a cost of $5 per shirt and or pair of trousers. In 2002, 700 prisoners based at FPI laundry facilities located in Florida, Texas and Alabama washed and pressed $3 million worth of military apparel.

Snip

...Out of the 1.3 million pairs of these trousers bought by the Defense Department last year, all but 300,000 were produced by FPI, which means that at least three out of four active-duty soldiers in the region wear pants made by the inmates of the FPI factories in Atlanta and in Beaumont and Feagoville, Texas. These sorts of numbers have earned FPI critics from a range of perspectives. FPI competitors, such as Propper International, point out that they use free labor to make the exact same trousers for the government at $2.39 cheaper per pair. Organized labor questions why the government should buy from a company which depends solely on inmate workers, while paying sub-minimum wages (from 25 cents to $1.15 per hour), skirting workplace safety standards and enjoying exemption from the payroll and Social Security taxes levied on other employers.

Which then brought me over to the UNICOR site where there are no pictures of inmates in prison garb or looking as if they're behind bars or even guards, it's pretty eerie. But I found this statement from their site more eerie and way more creepy:

The Future Challenge
The challenge for FPI is to remain financially self-sufficient while providing enough work for an increasing number of inmates. The Federal inmate population has tripled over the last 10 years, and it is projected to continue growing for the foreseeable future. In order for the Bureau of Prisons to successfully manage the increased number of inmates, FPI will have to create jobs for these additional inmates.

FPI's influence on the successful management of Federal prisons is no secret; it has been a matter of public policy for over six decades. Policymakers have long recognized that increasing the number of incarcerated individuals means increasing the number of prisons and, in turn, increasing the size of FPI in order to improve both the management of the prisons and an inmate's chances of success upon release. As we begin the next decade, continued support of Federal Prison Industries will pay important dividends for the country.

Creepy, huh?

Thanks Shirah for making me think about this.

Since I was already thinking, I decided to put the pieces together for me. I looked at the numerous reports linking crime rates, incarceration and unemployment and thought about how it is possible that it’s okay for UNICOR to pay inmates all of $1 (ish) an hour (if even that much) to produce things that American manufactures had been producing and STILL produce. I'm just not sure why this is acceptable anymore.

To me, it’s almost as if the US Government is in the business of creating inmates to work for almost nothing, driving American manufacturing into the ground and thereby, creating new inmates.

Of course, my understanding of this issue, isn’t science, I just like to read. And sometimes, things strike me. This issue, doesn’t just strike me, it makes me sick.

Honestly, this just really sucks.

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I'm starting to feel as if all I do now is post other people's stuff, but this post on Unbossed by Shirah is just too good not to post!!

That's the theme of a long overdue campaign to reclaim the dignity of public service.
One of the most effective parts of the Grover-Norquist-Drown-Government-in-a-bathtub campaign has been to demean public employees and the dignity and importance of the work they do.

If you're ready to side with the GNDGIAB view, let me just say one acronym: CDC. The Centers for Disease Control play a critical role in keeping us safe, in tracking diseases.

Or how about NOAA - the National Oceanic and Atmospheric Administration has a broad mission to keep us safe.

From daily weather forecasts, severe storm warnings and climate monitoring to fisheries management, coastal restoration and supporting marine commerce, NOAA’s products and services support economic vitality and affect more than one-third of America’s gross domestic product. NOAA’s dedicated scientists use cutting-edge research and high-tech instrumentation to provide citizens, planners, emergency managers and other decision makers with reliable information they need when they need it.

Or how about those National Parks - jewels that are protected and maintained by federal employees of the National Park Service.

And then there is the much maligned US Postal Service that for pocket change carries mail to all parts of the US. And I have to say in my experience with amazing accuracy.

So, call me crazy, but I am glad that at last someone is taking on the idea that government employees are the dregs. The campaign is by the National Treasury Employees Union and is called "They Work for Us".

They print our nation’s money; preserve our national parks, historic sites and other evidence of our history and heritage; they work hard in pursuit of a healthier America and a nation in which no one goes hungry; they work every day to find ways for us to become energy independent; they help ensure a viable agricultural industry; they strive to make certain that our air and water are clean and healthful; they make sure our airwaves are used in the public interest; they help protect our democracy by letting us know who contributes to candidates for federal office; they collect the taxes that make all of this possible—and they work to ensure that everyone pays his or her fair share.

All that is just the beginning of the list of tasks these dedicated and talented public servants undertake each day in your name and in your service. These men and women make up the most diverse, best educated workforce in America, and they do it all for you, every day.

The federal workforce, which provides so many vital services to America’s taxpayers, is at the beginning of a retirement wave that is predicted to become a tsunami. About 60% of current federal workers—and 90% of civilian senior government executives—will be eligible to retire in the next ten years. We need to preserve their expertise and attract new workers to a federal career.

It’s easy to take for granted the work that federal employees do. But they ought not to be overlooked, because there is a straight line linking their commitment to excellence, expertise and efforts to your life and that of your family.

The stereotype of government as an army of file clerks is a fallacy. At the federal level, it is much more likely to be a group of scientists searching for a cure for cancer or other diseases; a group of experts on all kinds of merchandise protecting the public from counterfeit products; a group of agricultural inspectors working to keep harmful pests from threatening our food supply; a group of patent attorneys helping foster the inventive climate so vital to our economic success; a group of experts in money and investing ensuring the integrity of our financial markets—and so many more doing so much more.

You surely will recognize federal employees in another way, too—as full-fledged members of your community, taking part in so many familiar neighborhood activities like helping keep a park clean or coaching a softball team. They do it for the same reasons you do—they love their community and their country and are happy being an integral part of both. And it is that joy and sense of fulfillment from working in the service of others that led them to choose the federal workplace.
America’s federal workers. They truly do work for U. S.

More at the website.

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I'm a huge fan of the stuff that Unbossed does, especially the stuff that Shirah is able to pull out of GAO reports and other legal documents that I'm either too lazy to sift through or too bored to try. Today, Shirah decided to go out on a limb and call Labor for not regulating wages and hours like they're supposed to. Here's a teaser from Shirah at Unbossed:

The Department of Labor's Wage and Hour Division is charged with collecting underpaid and unpaid wages and enforcing violations of the minimum wage and overtime laws (plus prohibitions on child labor). In addition to collecting wages owed, the WHD has the power to prosecute employers in court and to assess and collect penalties from employers as well as other sanctions.

According to a new GAO study that is so not how itis done in this administration. The way it now works is the employer fails to pay wages, admits it wasn't paying, says it doesn't have th emoney to pay, and the WHD tells the law violating employer, "Aw, Gee! Sorry to Bother You." And then the WHD tells the victim to find a lawyer and sue.

GAO identified case studies that show WHD inadequately investigated complaints from low-wage and minimum wage workers alleging that employers failed to pay the federal minimum wage, required overtime, and failed to pay employees their last paychecks. Examples of inadequate WHD responses to complaints included instances where WHD inappropriately rejected complaints, failed to adequately investigate complaints, or neglected to investigate until it was too late. The table below provides examples of several case studies.

Here are some examples from the new GAO study. GAO found that there has been:

(1) a decrease in enforcement activities at WHD amidst a decrease in investigative staff,

(2) WHD’s failure to make effective use of its current compliance tools and strategies, and

(3) the agency’s inability to demonstrate performance results.

The stories of the people hurt by these failues are clear examples of harming the least among us.

Night attendant at assisted living facility/ Ohio

• A homeless woman receiving free room and board while working as a night attendant at a nursing home alleged her employer had failed to pay her wages for an entire year.

• According to WHD, the employer admitted it had failed to pay any wages to the night attendant and considered the room and board to be pay, but stated it did not have any money to pay the back wages.

• WHD dropped the case and advised the night attendant of her right to file a private lawsuit.

• The employer was still in business as of June 2008.

Pool maintenance technician/ Florida

Last paycheck – minimum wage

• Pool maintenance technician alleged that he did not receive his final paycheck from his employer.

• Employer admitted to the WHD investigator that they did not pay the employee’s last paycheck but refused to pay employee.

• WHD dropped case and advised the worker of his right to file a private lawsuit.

High tail it on over to Unbossed for the rest of Shirah's anlysis. It's worth the time. Oh and as per usual, Shame On Elaine.

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