THIRD DAY Tuesday, September 10, 2013 REPORT of THE

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THIRD DAY Tuesday, September 10, 2013 REPORT of THE THIRD DAY Tuesday, September 10, 2013 The convention was called to order at 8:33 a.m., President Trumka presiding. PRESIDENT RICHARD L. TRUMKA: The convention will come to order. Thank you. Now, yesterday we heard the good news that a judge has ruled that the Indiana “right to work” law violates the state’s constitution barring for services. (Applause) I want to acknowledge the hard work of our sister, Nancy Guyott, president of the Indiana State AFL-CIO, on the state’s “right to work” fight. Thank you, Nancy. (Applause) Now, we have a packed morning before us, taking up several resolutions from the Committee on Shared Prosperity in the Global Economy about critical steps that we must take to make the national and world economy work for working families, not just the wealthy and not just the powerful corporations. We’ll cover the topics of good jobs and economic security, rising wages, tax fairness, safe jobs, retirement security, and bankruptcy and financial regulation. And we’re very fortunate to have two distinguished guests this morning—Nobel Laureate Joseph Stiglitz and our new Secretary of Labor Tom Perez. I know we’re anxious to hear from both of them. So, right now, it’s time again to hear the report of the Credentials Committee, and I would like to call on committee member Matt Loeb to report. REPORT OF THE CREDENTIALS COMMITTEE (Resumed) VICE PRESIDENT MATTHEW LOEB, Theatrical Stage Employees: Thank you, Mr. Chairman. If you would indulge me, before I give the report I would just like to take the liberty to recognize the fine IATSE stagehands and technicians who are doing the sound, lights, camera and AV work in the hall for us this week. You don’t see them much, but if you do, give them a pat on the back. Thank you. Since the Credentials Committee last reported, 32 additional delegates and 12 additional alternates whose credentials who had previously been approved by the Credentials Committee have registered. In addition, in the interest of full participation at this convention, the committee has approved the credentials of two alternate delegates whose credentials were received late. The Credentials Committee recommends the additional delegates and alternates be seated. The complete list of delegates and alternates is being submitted for the record at this time. On behalf of the committee, I move adoption of the Credentials Committee report. TRUMKA: The committee recommends that the report of the Credentials Committee be adopted. Is there any discussion? Seeing none, the question is on the adoption of the report of the Credentials Committee. All those in favor of the report, signify by saying aye. All those opposed, nay. The report’s adopted. Thank you. Matt, Credentials Committee, thank you. Now, the labor movement is all of us who work, creating America every day, united, as one. Our movement is building a world where we value work, where all those who work share in the wealth that we create and where our nation prospers because we prosper together. Today, as we gather in convention, the working people of the world create this world, create through our labor wealth such as has never been seen in human history. And yet, we live in the world of mass unemployment and growing inequality, a world where the power of global corporations is growing, and the principles of democracy are everywhere under assault by the power of money. Nowhere is that more true than right here in America. We, the people who do the work of America, are fantastically more productive than we were just a generation ago. Yet a few people in our country have systematically taken the wealth all of us create. As I said yesterday, over the last 15 years, all of the wage increases in this country have gone to the top 10% of us. All of it. That one fact tells you all you need to know about what’s wrong. Today’s agenda is about the kind of country and the kind of world that we want to build. Today is about what we do when we’re organized. Today we’re going to take up a set of resolutions that will define what the labor movement is about for the coming years. As part of the planning for this convention, the AFL-CIO established a Committee on Shared Prosperity in the Global Economy, co-chaired by Leo Gerard of the Steelworkers and Roberta Reardon of SAG-AFTRA, with Chicago Federation of Labor President Jorge Ramirez as vice chair. Today, that committee has an extraordinary presentation. First, we’re going to see a video of working people and experts talking about our hopes for shared prosperity and our determination as a labor movement to make shared prosperity real. Let’s see the video. ...A video presentation was shown to the delegation. TRUMKA: Now, the message of that video couldn’t be clearer. As we said yesterday, we’ve got our priorities upside down, but we have the power to turn America right-side up. Because, brothers and sisters, the global economy is not the weather. We can change it through the power of solidarity. And we must, because a world run by and for the 1% is not just wrong, it doesn’t work. You know, we are always told that greed is good, that we can’t afford to care about each other, that we can’t afford to raise up the poor, that we must always give more to the rich and powerful or otherwise somehow the world will just stop working. Those are lies. The truth is greed and inequality do not work. Now I want to call to the podium a man who, as much as anyone in the world, has shown that in this global economy, the only prosperity is shared prosperity. That man is Professor Joseph Stiglitz of Columbia University—a winner of the Nobel Prize in economics, economic adviser to presidents and governments all over the world, and champion of the poor in the corridors of power, from the White House to the IMF to the United Nations. I have to tell you, Joe is a man of real courage. Joe spoke truth to power at the World Bank when the Bank was pushing austerity on the poor, and the World Bank fired him for it. When we were handing out money to banks and foreclosing on families, Joe told the president of the United States our priorities were upside down. Joe, we are very, very honored to have you with us. Please welcome our friend, Joseph Stiglitz. (Standing ovation) PROFESSOR JOSEPH STIGLITZ Columbia University Thank you very much, Rich, for that introduction. And thank you for inviting me to address you today. The point that you just raised that the only prosperity, the only sustainable and real prosperity is shared prosperity, is the essential message I want to talk about today. I’m an economist—I study how economies work and don’t work. Like a doctor, we try to understand why our patients sometimes are sick and what we can do about it. One of the reasons it’s been so sick is inequality, and I decided to write an article and a book about it. Two years ago, I wrote an article for Vanity Fair—not the usual place for academics to publish, but it did get more readers than my earlier articles in Econometrica. (Laughter) The title of the article was “Of the 1 Percent, For the 1 Percent, and By the 1 Percent,” which really got to the gist of it. For too long, hardworking, rule-abiding Americans have seen their paychecks shrink or stay the same, while the rule-breakers raked in huge profits and wealth, and made our economy sick and our politics sick, too. You know the facts. While the productivity of America’s workers has soared, wages have stagnated. You’ve worked hard—since 1979, your output per hour has increased 40% but pay has barely increased. Meanwhile, the top 1% take home more than 20% of the national income. The Great Recession made things worse. Some say that the Great Recession ended in 2009. But for most Americans, that’s simply wrong. Ninety-five percent of the gains from 2009 to 2012 went to the upper 1%. The rest, the 99%, never recovered. More than 20 million Americans who would like a full-time job still can’t get one. Incomes are still lower than they were a decade and a half ago, wealth in the middle is back to where it was two decades ago. Young Americans face a mountain of student debt, and dismal job prospects. We have become the advanced country with the highest level of inequality, with the greatest divide between the rich and the poor. We used to pride ourselves—we were the country in which everyone was middle class. Now that middle class is shrinking and suffering. The central message of my book, “The Price of Inequality,” is that all of us, rich and poor, are footing the bill for this yawning gap. And that this inequality is not inevitable. It is, as Rich just said, and he said yesterday, it’s not like the weather, something that just happened to us. It’s not the result of the laws of nature or the laws of economics. Rather, it is something that we create, by our policies, by what we do and what we don’t do. We created this inequality—chose it, really—with laws that weakened unions, that eroded our minimum wage to the lowest level, in real terms, since the 1950s, with laws that allowed CEOs to take a bigger slice of the corporate pie, bankruptcy laws that put Wall Street’s toxic innovations ahead of workers.
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