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Why Congress Needs to Extend the Wind Energy Tax Credit

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The wind energy industry and environmental groups are calling on Congress to renew the credit. ali_pk/Flickr The wind energy production tax credit is a tougher issue than you might imagine for some good liberal wonks. On the one hand, wind power is great. On the other hand, tax credits are a market-distorting, inefficient way of making policy. They are basically spending disguised as tax cuts. Most tax credits that affect the environment — accelerated depreciation for the fossil fuel industry, the home mortgage interest deduction — incentivize sprawl, driving, and profligate dirty energy use. It is a rare, and tantalizing, point of agreement between good government advocates across party lines that we should throw out the whole system and operate a cleaner tax code. So it might be tempting, when you see Tea Party–affiliated, Koch brothers–backed groups such as Americans for Prosperity pushing to eliminate the wind energy tax credit, to say, “Hey, I agree!” Tempting but wrong. Continue reading at Grist.

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Why Congress Needs to Extend the Wind Energy Tax Credit

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Why Congress Needs to Extend the Wind Energy Tax Credit

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November’s Jobs Report Is Good, But Many Americans Are Still Struggling

Mother Jones

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The economy added 203,000 jobs in November, according to new numbers released Friday by the Labor Department. The unemployment rate dropped to 7 percent—the lowest level in five years. But many Americans are still struggling.

Employment increased in the private and public sectors, despite the continuing effects of the drastic budget cuts that went into effect in March. Industries including transportation, manufacturing, retail, and leisure and hospitality saw jobs gains, and average hourly earnings increased by 4 cents to $24.15.

The stock market rose on the news, and economists say the new employment numbers make it likely that the Federal Reserve will halt its stimulus efforts early next year. But many Americans are still out of luck.

As my colleague Kevin Drum notes, 90,000 of the 203,000 new jobs created last month were needed to keep pace with population growth. That means net job growth last month was more like 113,000.

And although about 2.1 million unemployed workers found jobs last month, 2.4 million stopped looking. November is the 43rd month in a row in which more job seekers left the labor force than found employment. A total of only 63 percent of American adults are either working or looking for work. That’s the second-lowest monthly labor force participation rate in 35 years. (The lowest-ever labor force participation rate was recorded in October, but the data for that month was skewed because of the government shutdown.)

The number of long-term unemployed—those without a job for 27 weeks or more—edged up slightly to 4.1 million. Unemployment amongst African-Americans and Latinos remains much higher than average—at 12.5 percent, and 8.5 percent, respectively. For those without a high school diploma, the unemployment rate is 10.8 percent. It’s 14 percent for people under 25.

About a third of employment gains in the private sector last month came in the form of low-wage service jobs in retail, hotels, restaurants, bars and temp agencies. Retail employment added 22,000 jobs last month, and bars and restaurants added 18,000. Low-paying service sector jobs have been the hallmark of the recovery. The growth of these low-wage jobs has given rise to a string of strikes over the past year by workers at Wal-mart, and fast-food joints like Wendy’s, McDonald’s and Burger King, who are demanding a living wage.

In his speech on the economy on Wednesday, President Barack Obama called on Congress to boost job growth by investing in infrastructure and education; doing away with harmful sequestration cuts; ending incentives for companies to ship jobs overseas; and increasing the minimum wage. “If we refocus our energies on building an economy that grows for everybody,” the president said, “then I remain confident that the future still looks brighter than the past.”

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November’s Jobs Report Is Good, But Many Americans Are Still Struggling

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Chart of the Day: Net New Jobs in November

Mother Jones

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The American economy added 203,000 new jobs in November, but about 90,000 of those jobs were needed just to keep up with population growth, so net job growth clocked in at 113,000. That’s about the same rate we’ve seen all year: not too bad, but not great either. We’re plowing ahead, but not really making up lost ground from the Great Recession.

Comparisons with October are tricky, since that was the month of the government shutdown. However, compared to September, the labor force shrank by 265,000 while the number of unemployed shrank by 348,000. That produced a drop in the headline unemployment rate to 7.0%. However, a good chunk of that was due to the shrinking labor force, so it’s only partially good news.

So….it’s sort of a Groundhog Day jobs report. The good news is that that job growth is steady despite the sequester and other austerity measures. The bad news is that people are still dropping out of the labor force in significant numbers, and we aren’t really seeing any acceleration in the job market. We’re still treading water.

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Chart of the Day: Net New Jobs in November

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What If Your Income Grew as Fast as The 1 Percent’s? Try Our Calculator.

Mother Jones

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The richest 1 percent of Americans have seen their average income jump more than 270 percent over the past five decades. Meanwhile, the average income of the least wealthy 90 percent of Americans grew an anemic 22 percent during that time. (Those figures are based on inflation-adjusted real dollars.)

So how much would you be earning today if the phenomenal income growth at the very top of the income scale had trickled down to most Americans? Use this calculator to find out.

How much do you currently make in a year? $ Please enter a dollar amount.

If most Americans’ incomes had grown at the same rate as the 1 percent’s over the past 50 years, you currently would be making $0, the same amount you already do. Congrats! You’re already in the top 1 percent of earners!

Source: Mother Jones calculations based on data from the World Top Incomes Database

In other words, if you’re in the bottom 90 percent of earners, your current income would be an estimated 205 percent higher if the vast majority of incomes had kept up with the gains experienced by the superwealthy.

At the lowest end of the bottom 90 percent, the difference is even more extreme: If the minimum wage had kept up with the 1 percent, it would be nearly 250 percent higher than it is today.

Back in the real world, most Americans’ incomes have stagnated over the past few decades. Meanwhile, top incomes have skyrocketed, leaving middle- and low-income Americans behind and accelerating the growth of the income gap that began opening in the 1980s.

Methodology: The data used to the make this calculator is from the World Top Incomes Database. All income figures used to make the calculator are in 2012 dollars and do not include capital gains. Your hypothetical income is an estimate based on applying the overall change in the average income of the top 1 percent between 1960 and 2012 to the average incomes in 2012 for the bottom 90th, the top 10th to 5th, and top 5th to 1st income percentiles.

Money Bag designed by Roman Trilo-Denysyuk from The Noun Project. Calculator image by DVARG/Shutterstock

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What If Your Income Grew as Fast as The 1 Percent’s? Try Our Calculator.

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DonorsTrust—the Right’s Dark-Money ATM—Pumps Out Record $96 Million

Mother Jones

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DonorsTrust is the conservative movement’s little-known but hugely influential cash machine, a conduit for millions of dollars in anonymous donations to anti-union legal shops, climate change deniers, pro-life advocates, libertarian think tanks, media watchdog groups, and a panoply of other right-leaning causes. Wealthy conservatives use DonorsTrust as a surefire way to invest their money, fingerprint-free, with the assurance it will end up in the right hands. According to new tax filings obtained by Mother Jones, DonorsTrust is growing increasingly popular among the bankrollers of the conservative movement.

Last year, DonorsTrust (and its sister group, Donors Capital Fund) doled out a record $96 million, making it one of the largest honeypots for right-leaning groups. That’s an increase from $85 million in 2011 and $78 million in 2010. DonorsTrust CEO Whitney Ball, who cofounded the group in 1999 and sometimes appears at the Koch brothers’ donor summits, says the increased giving stems from her organization’s growing profile and also conservative donors’ anger at the Obama administration. And despite worries about donor burnout within the conservative ranks, Ball says DonorsTrust is on track for another great year in 2013.

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DonorsTrust—the Right’s Dark-Money ATM—Pumps Out Record $96 Million

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I Tried to See Where My T-Shirt Was Made, and the Factory Sent Thugs After Me

Mother Jones

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Aruna, a 19-year-old nurse I met in the southern Indian state of Tamil Nadu, is a lot like some of my friends in Washington, DC—bright, single, self-assured, loves her job. She speaks quickly and eloquently, not stopping to drink her tea and hardly ever even pausing to breathe. When I first meet her in Coimbatore, a city known for its textile industry, she is on her lunch break, wearing her freshly starched white uniform and a traditional red bindi dot on her forehead.


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If Aruna were one of my friends in DC, no one would be asking her why she isn’t hitched yet. But in Aruna’s home village, if you haven’t secured a husband by your early 20s, you’re in for a hard ride. “In India, a woman is auspicious because she is married,” says Srimati Basu, an associate professor at the University of Kentucky who is an expert on the status of women in India. “Lack of marriage is horrible for the person, the family, and the community.”

In order to get married, Tamil village girls like Aruna need at least three gold British sovereigns—bullion is the preferred currency for dowries—the equivalent of about $1,200. Together, Aruna’s parents make a little less than $400 a year.

As a child, Aruna dreamed of going to college. But by the time she was 15, when her government-subsidized schooling ended, she understood that she was too poor. Then, a stranger promised to change her life. He offered her a job at a textile factory that has supplied companies including, until recently, UK-based maternity wear maker Mothercare. Her pay would be about $105 a month—enough for food for her family, her further education, and most importantly, the chance to build a dowry.

When Aruna arrived at the factory, about 40 miles from her home, she found a vast facility where close to 1,000 girls, many in their teens, lived 10 or 15 to a room. From 8 a.m. till 10 p.m. every day, including weekends, she fed and monitored rusty machines that spun raw cotton into yarn. Her bosses often woke her in the middle of the night because, she recalls, there was “always some sort of work, 24 hours a day.” Aruna made just a quarter of the $105 a month she was promised, about $0.84 a day.

Aruna shows me a scar on her hand, more than an inch long, where a machine cut her. She often saw girls faint from standing for too long. One had her hair ripped out when it got caught in a machine. Others were molested by their supervisors. “They said we would get less work if we slept with them,” Aruna says. Sometimes girls would disappear, and everyone would speculate whether they’d died or escaped. Still, she needed the money, so she worked there for two years. After she left, a garment workers advocacy organization called Care-T helped her get her current job at the hospital, where she is slowly saving up for a dowry. When I ask if she still has her sights set on college, Aruna shakes her head and tears fill her eyes. But almost instantly, she wipes them away. There’s no point thinking about that, since she already has a steady income. “I like my job at the hospital now,” she says. Most of her friends are still working at the factory. (The names of Aruna and other former factory workers have been changed to protect them from retaliation.)

In Tamil Nadu, many people know a girl like Aruna, someone who has been lured to work in the garment factories with the promise of earning a dowry. The scheme is so common that it even has a name: sumangali, the Tamil word for “happily married woman.” A 2011 report by the Dutch watchdog groups Centre for Research on Multinational Corporations and India Committee of the Netherlands found that sumangali factories employed an estimated 120,000 workers, some as young as 13, and supplied dozens of international companies, including Gap (which denied the allegation), H&M, American Eagle Outfitters, and Tommy Hilfiger.

Last April’s building collapse in Bangladesh’s Rana Plaza, which killed more than 1,000, briefly drew attention to the plight of garment workers. India is an even larger global player than Bangladesh: It’s the third-largest textile and garment exporter in the world (after China and the European Union), with about $29 billion in 2012 sales. Between June 2012 and June 2013, the United States imported about $2.2 billion worth of cotton clothing from India, and that number is expected to grow as India ramps up its textile industry.

In the garment industry the world over, it is common for workers to be locked into exploitative conditions until they fulfill contracts. But in India, the dowry tradition—which persists even though it’s officially illegal—makes teenage girls especially vulnerable to these schemes. In part because of this, India has comparatively strong child labor regulations: It’s illegal for children younger than 14 to work in factories there, and all workers must be paid double for overtime. Enforcing those laws, however, is another matter. Factories go to great lengths to cover up illegal practices. (Aruna recalls that when inspectors would come—she didn’t know whether they were government or company auditors—factory supervisors would shove the younger girls into a special wing. If they were found, they were told to say that they were 18.)

And workers themselves hardly ever report abuse, in part because many come from lower castes, including the dalit, or untouchables. “People don’t take up these issues with factory management because they are afraid of losing income and afraid of possible retaliation because they are in a vulnerable position in society,” says Heather White, a fellow at Harvard’s center for ethics who has researched global clothing supply chains. In her interviews with factory workers, she says she heard about “numerous cases of sexual harassment, which normally in the factory worker context means rape.”

In 2012, the workers’ rights group Fair Labor Association examined the cases of 78 sumangali workers who, at dozens of factories, had committed to work for three years. Of the 34 girls who did not complete their contracts, 4 died from accident or illness, 11 were forced to leave due to health problems, 17 were taken home by their parents, and 2 left on their own. Twenty were still working at the time of the FLA interviews, and 24 had completed their contracts. Several other NGOs confirmed that it’s very common for girls to not complete their contracts and that on-the-job accidents and even deaths are not at all unusual.

A tea plantation in a village where factory recruiters target girls from poor families

Although some of the workers told the interviewers that they had been sexually harassed by supervisors, the report’s authors noted that girls rarely report such incidents because doing so could affect their marriage prospects—and is unlikely to bring results in court, anyway. While reported cases of rape in India have been on the rise, the conviction rate—less than 27 percent—has dipped over the last decade, and victims who go to the police have been known to be raped by them as well.

Despite the growing evidence that abuse is common in sumangali factories, most Western companies have not yet eliminated the practice from their supply chains. A major American trade group, the United States Association of Importers of Textiles and Apparel (USA-ITA), has pressured suppliers in other parts of the world to clean up bad labor practices; it recently convinced Bangladesh to pass a binding five-year plan to increase the number of inspections and improve worker safety training. Yet when I asked Samantha Sault, the group’s spokeswoman, about sumangali factories, she said, “We have not been aware of the labor practices that you describe.” She added that it sounded “disturbing.”

Sinnathamby Prithiviraj is a gruff, heavyset man who heads Care-T, the group that helped Aruna find her nursing job. For a decade he has been working with sumangali girls from his office in Coimbatore; he has helped 1,600 of them find work after returning from stints in the factories. If I want to see where the girls come from, he says, I need to go to Aruna’s home village, where he’s seen an uptick in recruitment recently. He says I should look for “the girls with alcoholic and missing fathers,” because “that’s where the recruiters are looking.”

We set out early the next morning, driving south through heavy traffic past unfinished strip malls and gated textile factories. Getting to the village—a tea-growing area of 71,000 residents, with settlements clustered around 56 different estates—requires a fearless driver managing a rickety stick shift on tight hairpin turns and a healthy tolerance for the 2,000-foot elevation gain. We repeatedly stop the car to let our guide vomit. When we arrive, we see the tea blooming in neon-green tufts straight out of Dr. Seuss. Most of the tea workers are from the lower castes and make about $3 per day; it costs a month’s salary just to outfit a child with books and a uniform for school. “We can’t give all our children food and schooling, so we sacrifice one child’s future for the others,” one mother tells me. “In these jobs, girls are preferred, so girls go.”

When I arrive at Care-T’s office in the village, I am greeted by Julia Jayrosa, the organization’s 31-year-old coordinator, in a small room packed with a dozen women and their children. Jayrosa, who seems to have boundless energy and speaks so quickly that I have to beg her to slow down, makes it her business to know what’s happening in every house in the village. She tells me there are at least 800 girls from here working in sumangali arrangements right now. Agents are paid $34 to $50 for every worker they recruit to the mills, she says, showing me a bright pink poster that was distributed around the village in May. It promises that in the factories, girls will get part-time education, private bedrooms, and excellent pay. Jayrosa is afraid of the agents and fears that they might shut down her meager business: She provides space for several dozen former factory workers to use their stitching skills and sell their own garments in the village. Her main concern right now is raising enough money to get the women a bathroom, so they don’t have to keep going in the jungle.

I spend the day with Jayrosa, talking to the villagers who come in and out of the office. I meet five former sumangali girls, as well as three mothers and a father who sent their daughters to the factories. I talk to a woman who had a miscarriage at a factory because she had to stand so long in the heat, and another who tells me that sexual harassment was rampant in her factory, but “you have to be smart enough not to fall for their tricks.”

At dusk, I meet a girl named Selvi, whose family invites me to their home. At 20, Selvi looks no older than an American middle-schooler, and she weighs 85 pounds. She is shy, quiet, and doesn’t often make eye contact. She says she spent the last two years doing stitching for a factory. The recruiter promised her 250 rupees (about $4) per shift, but she says she made only 150 (about $2.50) plus overtime of 15 rupees per hour—even though the legal overtime requirement is twice her hourly pay, or 34 rupees per hour.

The company that owns the factory where Selvi worked has supplied clothing to Mothercare, Walmart, H&M, and the Children’s Place. H&M reports that it found no evidence of sumangali workers in its recent audits of three of the company’s factories. In 2011, however, the workers’ rights group Anti-Slavery International found that the company that runs the factory where Selvi worked was paying workers less than half of what they were promised, sometimes withholding a portion of pay until the workers completed their contracts, monitoring the girls’ phone calls, and refusing to let parents visit their children. (The company denies these allegations, and Selvi was allowed to collect her pay and take leave from the factory in March because of problems with her thyroid. She plans to go back to work as soon as she gets better.)

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I Tried to See Where My T-Shirt Was Made, and the Factory Sent Thugs After Me

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These Members of Congress Are Bankrolled by the Fracking Industry

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A new report finds that the industry is giving out “gushers” of money, mainly to congressional Republicans. jessie owen/Flickr The growing fracking industry is “yielding gushers” of campaign donations for congressional candidates—particularly Republicans from districts with fracking activity—according to a new report from the watchdog group Citizens for Responsibility and Ethics in Washington. The report, “Natural Cash: How the Fracking Industry Fuels Congress,” examines a period spanning from 2004 to 2012. In that time, CREW finds, contributions from companies that operate hydraulic fracturing wells and fracking-related industry groups rose 180 percent, from $4.3 million nine years ago to about $12 million in the last election cycle. These donations are flowing to members of Congress at a time when some legislators are trying to increase regulation of fracking, a process in which drillers inject a mixture of water, sand, and chemicals into the bedrock to release oil and natural gas reserves. The most serious of these legislative efforts is the FRAC Act. First introduced in 2009, the act would require EPA regulation of the industry and would force fracking companies to disclose the chemicals that they inject under high pressure into the ground. Both the House and Senate versions of the bill are stalled in committee. To keep reading, click here.

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These Members of Congress Are Bankrolled by the Fracking Industry

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These Members of Congress Are Bankrolled by the Fracking Industry

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Green Groups Stage Walk-Out at UN Climate Talks

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Codex: Space Marines (Enhanced Edition) – Games Workshop

The Space Marines are the chosen warriors of the Emperor, and the greatest fighting force of the Imperium. Each Space Marine is a genetically enhanced super soldier, easily a match for a dozen lesser men, armed with some of the deadliest weapons in the galaxy and encased in formidable power armour. This codex explores the formations and Chapters of the Space […]

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Codex: Inquisition – Games Workshop

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How to Raise the Perfect Dog – Cesar Millan & Melissa Jo Peltier

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Green Groups Stage Walk-Out at UN Climate Talks

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Here’s How Walmart Could Pay Workers a Decent Wage Without Raising Prices

Mother Jones

Walmart has gotten a lot of bad press this week over news of an Ohio store holding a food drive for its own workers, who were unable to buy Thanksgiving groceries on the retail giant’s paltry wages. The store managers deserve credit for their thoughtfulness, but wouldn’t it be better if Walmart simply paid its workers enough to feed themselves? A new report from Demos, a liberal think tank, suggests that doing so wouldn’t be as hard as you might think.

According to the report, “A Higher Wage Is Possible,” Walmart spends $7.6 billion a year buying back stock. Those purchases drive up the company’s share price, further enriching the Walton family, which controls more than half of Walmart stock (and for that matter, more wealth than 42 percent of Americans combined.) If Walmart instead spent that money on wages, it could give each of its 1.3 million US employees a $5.83 per hour raise—enough to ensure that all of them are paid a wage equivalent to $25,000 a year for full-time work.

Walmart and its defenders like to argue that raising wages would require it to raise prices, which would in turn hurt its low-income shoppers. But Demos disagrees: “Curtailing share buybacks would not harm the company’s retail competitiveness or raise prices for consumers,” the report says. “In fact…higher pay could be expected to improve employee productivity and morale while reducing Walmart’s expenses related to employee turnover.”

A spokesperson for Walmart did not immediately respond to a request for comment.

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Here’s How Walmart Could Pay Workers a Decent Wage Without Raising Prices

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Chart of the Day: Net New Jobs in October

Mother Jones

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The American economy added 204,000 new jobs in October, but about 90,000 of those jobs were needed just to keep up with population growth, so net job growth clocked in at 114,000. That’s not bad. In addition, revisions to previous months increased previous estimates for August and September by 60,000 new jobs. That’s the good news.

The bad news is that the labor force participation rate fell, and the headline unemployment rate increased from 7.24 percent to 7.28 percent. However, unlike the job growth numbers, this is based on a separate survey that counts furloughed government workers as unemployed, so it’s not very meaningful. It will bounce back down next month.

Overall, then, the news was reasonably good, if not spectacular, but tainted by some artificial job losses due to the shutdown. We’ll have to wait until next month for a clearer picture.

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Chart of the Day: Net New Jobs in October

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