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Retirees Newsletter March 2008 Issue 7 Academic Year 2007-2008 Retirees Newsletter Professional Staff Congress CHAIRMAN’S REPORT: JACK JUDD I begin this report with a summary of the remarks delivered by Mr. Ed Ott, at our March meeting, prepared by Jim Perlstein, Vice-Chairman of the Retirees Chapter. “After the Primaries: What are new administration. Labor must use Labor’s Options?” At its March the elections to extract commitments meeting, the Retirees Chapter heard and hold candidates accountable in a presentation from Ed Ott, the election’s aftermath. Executive Director of the New York City Central Labor Council. In a Labor must insist on specifics, Ott wide-ranging, unvarnished talk suggested: on passage of the followed by an extensive exchange Employee Free Choice Act; on with the members of the audience, universal health care (not universal Ott sought to outline the prospects health insurance); and so forth. and problems that face organized Unions have got to engage their labor from now until the November members in the campaign, as much elections. to drive particular issues as to plump for a particular candidate. The labor movement has not, he asserted, really engaged the issues. The Right to Organize Labor’s task is to do so, pressing members, candidates (congressional The task is huge because labor has and presidential both) and the media neglected its history. This to switch from personalities and generation inherited the right to slogans to matters of substance. He organize and a social safety net, it listed health care, the war, tax equity didn’t have to fight to win them. and the right to organize as Indeed, evidence suggests that examples. And the pressure must many working people don’t even be maintained through the primaries, believe that organizing in one’s own through the election and through any self-interest is a right in the first place. We need reminding that the New Deal instituted a government- managed system of labor relations whose intent was to stabilize the economy rather than to liberate working people. We need reminding that the so-called fiscal crisis of the seventies eviscerated the social safety net. We mustn’t wax nostalgic for the New Deal, Ott insisted, but rather define and fight for a better New Deal. “Go Internal” Ott concluded that, until union members engage labor issues themselves, it will be hard to get the candidates to do so. The first task for labor, then, in this electoral season, is to “go internal” and rouse its own ranks. The June Retirees Chapter Luncheon and Israel Kugler Memorial Program: We are going to have a very special day on June 11th. We will begin the day at 11:30 am with our business meeting in C198 not our usual morning breakfast followed by our luncheon at 12:30 in the Lower Lobby of the Graduate Center. This special arrangement has come about because of the Israel Kugler Memorial Program which will take place after the lunch. The Israel Kugler Memorial Program newsletter, contains more details will start at 1:30 pm. Again it is about the day. I urge you all to join worth pointing out that Iz, as he was us on this very special occasion. affectionately called, was a co- founder of the Professional Staff Congress along with Belle Zeller. During the Memorial Program, a number of speakers will discuss his important role in organizing labor in academia, as well as his active role in several other labor and social movements throughout New York and in the United States. It should prove to be a stimulating and moving event. The separate luncheon invitation, accompanying this 2 For information call them at 1-800- Important News for Those 543-7108. Currently Holding John Hancock Long-Term Care Insurance: By the VOTE-COPE: The checks are time you have this newsletter in beginning to come in. Now is the hand, you should have received a time for you to make the annual letter directly from John Hancock contribution to this important cause. outlining the enhanced long-term It is through lobbying activities that care plan now available for those COLA, along with reimbursement of who are currently carrying coverage Medicare “Part B” was achieved, as from that firm. There is a window of well as parity for those under opportunity for you to opt for the new optional retirement plans. On the plan, if desired. Those under the old national level, we have joined plan may continue under the plan together with others to protect Social that they have. The decision to Security and to keep Medicare as a move to the enhanced plan is a government entity. Write a check personal one. Weigh the choices today. carefully before making a decision. The Kaplan Report: Our daily newspapers are replete with stories concerning the taxes we pay, and are about to pay in April. Lawrence J. Kaplan’s report hits the mark at this tax season. Needed: A Fair Tax Structure: The Plummeting Value of the U.S. Dollar. During these months of political rhetoric, very little has been said about the plummeting value of the U.S. dollar. Yet this problem must be addressed in order to prevent the United States from becoming a second-rate nation. The dollar’s value compared with the British pound is near its lowest rate in 26 years and its lowest rate ever against the euro. The British and Europeans in general see the United States as Americans once viewed Latin America, the 3 Caribbean and Europe – bargain places to spend their strong currency. (See table.) Even working-class British and European tourists can afford a two-week vacation in New York City, spending their money for shopping and Broadway shows. New York and London Prices in U.S. Dollars London Prices New York (Estimated in Item Prices U.S. dollars) Starbucks Grande Latte $3.75 $4.80 Original Timberland boots $149.99 $250.00 Domino’s 14” cheese pizza $14.83 $21.98 Levi’s 501 jeans $58.00 $120.00 ________________________________________________________________ Central bankers in many countries are beginning to invest heavily in euros, pounds, and in other currencies of countries with growing economies, such as China, Japan and South Korea. What has happened to the value of the U.S. dollar? Many economic forces have contributed to the decline. The continuing Federal budget deficits with no end in sight; conducting wars while cutting taxes; and significantly increasing the Federal national debt, a 7-year rise of $3 trillion since 2001, are among the principal causes. The declining value of the dollar impacts the U.S. economy in other ways: for one, the American standard of living declines. Here’s how it works: a weaker dollar raises the costs of imports, such as Mideast oil. Higher oil prices result in higher food prices, mainly because of the increase in the cost of transporting food to urban areas. With higher prices for oil and food, Americans can afford less for everything else, resulting in a lower standard of living. Secondly, it impacts on America’s trade imbalance in an unusual way. The falling value of the dollar discourages American imports, such as German cars and French wines which cost more when sold in the U.S. On the other hand, a declining value of the dollar helps Americans who rely on exports. America’s products become more competitive. Exports of U.S. goods and services have grown more than 10 percent in 2007. The economy of Middle America is booming because Americans sell tractors, food and other products abroad at favorable prices. This is a plus for a lower value of the American dollar, but it’s a short-run benefit. 4 While higher exports are welcome, relying solely on a weaker dollar to correct America’s trade imbalance has a downside. It makes the job of the Federal Reserve more difficult in steering the economy. As foreigners invest less in dollar assets, interest rates must rise to attract new money. But to stave off a recession, interest rates must be cut, the current Federal Reserve policy. In the long run the United States cannot remain a strong nation with a declining dollar value. The nation’s policies must change to reflect fiscal responsibility. Unless we balance our Federal budget by rescinding tax cuts and stop borrowing money, perhaps even beginning to pay back some of our debt as a token of fiscal responsibility, the dollar will continue to decline. Failure to take these steps could contribute to what many see as a serious American recession in 2008, and ultimately a world-wide recession. March 2008 The next meeting of the retirees Chapter will be on Monday, May 5 at 1 p.m. in the PSC office, 61 Broadway, 16th floor. Our speaker is: Professor Marie Gottschalk, University of Pennsylvania. Topic: Universal Health Care 5 .
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