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This Thanksgiving, Many Who Once Donated To Food Banks Are Asking For Help Themselves

While some eager shoppers are preparing to wait in long lines when their favorite stores open on Black Friday, many Americans are already lining up at food banks, simply hoping to put food on the table this Thanksgiving.

In a heartbreaking report, CBS chronicles the plight of “America’s new poor” — many of whom used to be the very people who donated to food banks. But with millions out of work, foreclosure rates still high, and the country’s economic outlook as bleak as ever, yesterday’s givers have become today’s takers.

Take Forsyth County, near Atlanta. Despite having the highest average household income in Georgia, hundreds of these “newly-needy” file into local food banks:

People lost their jobs and went from great incomes to no incomes,” said Sandy Beaver [who] leads The Place, Forsyth County’s biggest non-profit center for social services. She calls those who visit The Place “the new poor.” The Place’s main mission: Feed the hungry. [...]

Many of our people who have come for assistance used to be our donors. And they’ll say, ‘I never thought I’d have to do this, never in my wildest dreams.’” [...]

People like these married retirees in their 70s, too embarrassed to appear on camera…They retired comfortably in their early 50s. But now, after bad investments, a ruined portfolio, and costly medical issues, they qualify for food stamps – and could lose the house.

Taking the food was really tough,” the woman said. “The hard part was, we used to give it, and now I’m taking it back, you know?” she said, crying.

At one Forsyth high school, 8 percent of kids now get free lunch, double the number three years ago. And unfortunately, the situation Forsyth is not unusual. One in six Americans — 49 million people — isn’t sure where their next meal will come from. A record 15 percent of Americans are now receiving food stamps — a jump of about two-thirds since 2007.

Veterans from Iraq and Afghanistan, who are returning from combat to face higher unemployment rates than nearly any other group, are also struggling to get by. Raymond Price, an Afghanistan vet, says “All I want is a job. I don’t really want anybody’s handouts.” But with a family to feed, he came by a food bank last week for a box of non-perishables.

This holiday season, please consider donating to a local food bank. You can find one nearby or donate online through the Feeding America website. You can also give to Operation Homefront, a group that provides assistance to military families.

Special Topic

Angry Over Unfair Mortgage Practices, Churches Pull Money From Wall Street Banks

Religious leaders at Occupy Wall Street

Even though their profits are rising, Wall Street banks have begun getting bad news from the 99 Percent Movement. More than 40,000 people moved their money from banks to credit unions on Bank Transfer Day earlier this month, bringing total new credit union enrollment up to more than 650,000 since the beginning of October. For the 10 largest banks, that could mean about $185 billion in lost deposits next year alone.

Now, a new coalition of groups is planning to move even more money off of Wall Street. Angered by predatory and often discriminatory mortgage lending practices that continue to come to light, an inter-faith coalition of churches and religious organizations is pledging to move as much as $1 billion away from the nation’s biggest banks, the Washington Post reports:

The New Bottom Line (NBL) coalition of congregations, community organizations, labor unions and individuals is promoting a “Move Our Money” campaign with the goal of shifting $1 billion from big banks to community banks and credit unions.

In a way, the banks have divested from our communities, especially communities of color,” said the Rev. Ryan Bell, a Seventh-day Adventist pastor in Los Angeles. “So we’re basically telling Bank of America that we want them to invest in our communities, and until they do that we’re not going to give our money to them.”

The Move Our Money campaign is the latest sign of religious organizations joining in the 99 Percent Movement’s struggle. As of Monday, churches had already moved more than $55 million from Wall Street banks, and about 100 leaders from Christian, Jewish, and Muslim groups have pledged to move more than $100 million more in the coming days.

The campaign, meanwhile, should draw more attention to predatory lending practices from Wall Street. Bank of America and other banks have come under fire for various types of mortgage fraud and abuse, including robo-signing foreclosure documents and repossessing homes that either weren’t in foreclosure or that the banks didn’t own. As Bell told the Post, recent reports have also shed light on the discriminatory nature of those mortgage practices, as blacks and Latinos were twice as likely to have been affected by the housing crisis as white borrowers.

Romney Once Raised Business Taxes To Pay For Unemployment Benefits He Now Wants To Privatize

Despite their unwillingness to raise taxes one penny on millionaires and billionaires, Republicans have stubbornly refused to extend unemployment benefits and the payroll tax break that middle class families depend on in these difficult times.

GOP presidential frontrunner Mitt Romney has dutifully toed the party line. In a USA Today op-ed opposing the extension, Romney argued that the central problem was that “unemployment benefits, despite a web of regulations, actually serve to discourage some individuals from taking jobs…”

Yet Huffington Post reports that when he was governor of Massachusetts in 2003, Romney actually supported a “huge increase” in business taxes to pay for unemployment benefits:

Facing a depleted unemployment insurance trust fund upon entering the Massachusetts governor’s office in 2003, Mitt Romney proposed a $260 million tax increase on employers as part of a plan that included comprehensive benefit reforms. [...]

[T]he willingness to sign off on an agreement that involved even those tax hikes also reflected a type of political pragmatism that few Republicans would show today. “There’s still going to be a huge increase,” Romney told The Patriot Ledger’s editorial board at the time, acknowledging that his plan would also include a tax hike. [...]

Indeed, two years after making that initial proposal, Romney had presidential ambitions and had shifted to a more conservative plank, calling for tax cuts for employers as part of comprehensive unemployment insurance reform. Six years later, second-time presidential candidate Romney has gone even further, suggesting the privatization of the program.

Romney’s evolution on the issue is yet another example of his willingness to ditch any previously held position to pander to the conservative base. When asked at a debate whether he would support an extension of unemployment insurance benefits set to expire at the end of the year, Romney said he favored privatizing benefits. In short, Romney believes workers should pay for their own unemployment benefits.

Suzy Khimm at the Washington Post points out “Americans are heavily dependent on UI benefits because there are no jobs to be found, not because they’re not motivated enough to find them. Currently, there are 4.5 job seekers for every open job — and that ratio is worse in areas with high unemployment.”

The system Romney proposes would disadvantage low-wage workers who have “have more trouble building up funds in their accounts on a regular basis, particularly in a climate of economic instability.” He would also nix the protection workers have that requires employers who lay off large numbers of people to pay a higher payroll insurance tax.

Additionally, Romney refuses to back an extension of the payroll tax breaks everyone who gets a paycheck is receiving this year — apparently the one tax hike he is willing to support. Yesterday President Obama once again challenged Congress to extend and expand the tax cut, in the spirit of the holiday season. He noted that if Republicans vote no, middle class families will have to pay an additional $1,000 in taxes next year.

“If your members of Congress aren’t listening, you’ve got to send them a message,” Obama said. “Tell them, don’t be a Grinch.”

Climate Progress

War On Coal? EPA Regulations Boost Coal Employment To 15-Year High

The Environmental Protection Agency under the Obama administration has increased efforts to regulate the coal industry, using tougher environmental standards under the Clean Water Act to rein in destructive coal practices like mountaintop removal. That has sparked outrage from Republicans across the country and Democrats in coal states like Kentucky and West Virginia, where industry leaders and pro-coal politicians have decried Obama and the EPA’s supposed “war on coal.”

But even as America deals with high unemployment and a sluggish economic recovery, coal employment this year rose to its highest level since 1996, according to data from the Mine Safety and Health Administration. In 2011, there were more than 90,000 coal jobs, and the 59,059 Appalachian coal jobs are the most since 1997. According to the same data, the spike in employment correlates to the EPA’s crackdown on destructive mountaintop removal policies, the Charleston Gazette reports:

Matt Wasson, director of programs for the group Appalachian Voices, said his review of the MSHA data shows the number of coal jobs in the region has increased by 10 percent since the U.S. Environmental Protection Agency began a crackdown on mountaintop-removal mining in June 2009.

In other words, the idea of a ‘permitorium’ on coal mine permitting that House Republicans are pushing out is completely and demonstrably false,” Wasson said Friday.

As Wasson said, the industry and the politicians it contributes to most have slammed the EPA’s regulatory policies as “job killing” and anti-coal. In reality, however, mechanized practices like mountaintop removal can reduce employment while boosting production and profits. Underground mining, a less destructive form of coal extraction, actually requires more workers than mountaintop removal or strip mining.

The coal industry spends millions each year in advertising and political contributions to disseminate the myth that regulating mining and opposing mountaintop removal is akin to killing jobs. Reality, however, shows that just as in other industries, the opposite is true, and regulations to boost worker safety and environmental protection can actually have a positive effect on job creation. As Appalachian Voices’ Matt Wasson told the Gazette, “The hysterical reaction of coal companies to any and all regulations to protect the safety of workers and communities near their mines is about profits, not jobs.”

NEWS FLASH

Thanksgiving Will Cost 13 Percent More This Year Than Last | According to the latest data from the American Farm Bureau Federation, a Thanksgiving meal complete with turkey will cost 13 percent more in 2011 than it did in 2010. The organization estimates that “a classic meal for 10 will cost $49.20 on average. That is $5.73 more than last year’s $43.47 average.” The meal still costs less than $5 per person, but the 13 percent increase was the largest increase in 20 years.

The Average Bush Tax Cut For The 1 Percent This Year Will Be Greater Than The Average Income Of The Other 99 Percent

As Occupy Wall Street protestors continue to demonstrate across the country, congress’ fiscal super committee failed to craft a deficit reduction package due to Republican refusal to consider tax increases on the super wealthy. In fact, the only package that the GOP officially submitted to the committee included lowering the top tax rate from 35 percent to 28 percent, even as new research shows that the optimal top tax rate is closer to 70 percent.

Sen. Patty Murray (D-WA), who co-chaired the super committee, explained that the major sticking point during negotiations with the GOP was what to do with the Bush tax cuts. With that in mind, the National Priorities Project points out that those tax cuts this year will give the richest 1 percent of Americans a bigger tax cut than the other 99 percent will receive in average income:

The average Bush tax cut in 2011 for a taxpayer in the richest one percent is greater than the average income of the other 99 percent ($66,384 compared to $58,506).

“The super committee failed to grapple with the extraordinarily costly Bush tax cuts for the richest—tax policies that, according to the Congressional Budget Office, cost more in added federal debt than they add in additional economic activity,” explained Jo Comerford, NPP’s Executive Director. Frank Knapp, vice chairman of the American Sustainable Business Council, added in a statement yesterday, “the high-end Bush tax cuts are a big part of the problem – not the solution…It’s obscene to keep slashing infrastructure and services for everybody on Main Street to keep up tax giveaways for millionaires and multinational corporations.”

The Bush tax cuts have done nothing but blow up the federal debt and hand billions in tax breaks to the Americans who needed them least. As a reminder, past grand bargains when it came to the budget included substantial new revenues, to balance the pain of getting the country’s budget in order. Instead of adopting that approach, the GOP wants to continue lavishing tax breaks onto the 1 percent, while asking everyone else to sacrifice.

NEWS FLASH

Study: Optimal Top Tax Rate For The Rich Is 70 Percent | According research by Nobel Prize-winning economist Peter Diamond and Emmanuel Saez, the optimal top income tax rate for wealthy earners is about 70 percent, far below today’s top rate of 35 percent. Diamond and Saez argue that the top tax rate should be set at the point where it maximizes revenue, which can then be used to aid lower-income Americans. They also note that “even increasing the average federal income tax rate of the top percentile to 43.5 percent, which would be sufficient to raise revenue by 3 percentage points of GDP, would still leave the after-tax income share of the top percentile more than twice as high as in 1970.” (HT: Americablog)

Republican Labor Board Member Threatens To Resign To Stop New Union Election Rules

The National Labor Relations Board — which is the federal agency in charge of enforcing the nation’s labor laws — has proposed a new regulation for union elections, aimed at ensuring that employers can’t needlessly delay an election while engaging in union-busting activities. Currently, according to research by John-Paul Ferguson of Stanford Business School, 35 percent of all union elections are called off due to endless delays and often illegal employer opposition.

The NLRB’s proposed regulation would speed up the election process to help workers show their true feelings toward whether or not they want to form a union. However, the one Republican member of the NLRB has threatened to resign from the board if the rule goes forward, which would not only prevent that rule from becoming law, but would cripple the NLRB entirely:

The labor board’s sole Republican member, Brian E. Hayes, has threatened to resign to deny the N.L.R.B. the three-person quorum it needs to make any decisions, according to board officials. Mr. Hayes has made his threat expressly to block the Democratic-dominated board from adopting new rules to speed up unionization elections, which the board’s other current members, both Democrats, intend to pass Nov. 30.

The Supreme Court ruled last year that the NLRB needs three members (out of a possible five) to legally operate. Hayes’ resignation would bring the board down to two members, preventing it from making any decisions. The U.S. already has the weakest labor protections in the developed world, and leaving the NLRB toothless will only make the situation worse.

But this is just the latest episode in a wider GOP attempt to cripple the NLRB (though the first involving a member of the board itself). Republicans have moved several pieces of legislation that would cut the board’s funding and limit its ability to make rules. The GOP also refuses to confirm Obama’s nominees to the board, which is what has left it so shorthanded in the first place.

Given its recent activity, inoperable is progress,” Sen. Lindsey Graham (R-SC) has said of the NLRB. And now it seems that the Republican member of the board is planning to be complicit with the congressional GOP’s goal.

Econ 101: November 23, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • The Federal Reserve yesterday told the 31 biggest banks that it will test their loan holdings against a severe recession and a European collapse. [Bloomberg]
  • Germany and France continue to clash over whether the European Central Bank should step in to stem the Eurozone fiscal crisis. [Reuters]
  • The Congressional Budget Office said yesterday that the 2009 stimulus package “raised gross domestic product by between 0.3 and 1.9 percent in the third quarter of 2011,” and increased employment by up to 2.4 million jobs. [The Hill]
  • According to a new study “45 percent of all Americans — men, women and children — live in households that lack economic security, defined as the ability to pay for basic needs.” [Huffington Post]
  • China’s factory sector shrank the most in nearly three years this month, “reviving worries that China may be slipping toward a hard landing and fuelling fears of a global recession.” [Reuters]
  • An investigation finds “a group of well-connected investors and analysts with access to top Federal Reserve officials who give them a chance at early clues to the central bank’s next policy moves.” [Wall Street Journal]
  • National retailers sued the Federal Reserve yesterday “arguing that the agency went too easy on banks when it set limits on the debit-card fees banks charge retailers.” [Wall Street Journal]
  • The FCC yesterday moved to block a merger of AT&T and T-Mobile “on the basis of findings that it would cause job losses and higher prices for consumers.” [Washington Post]

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