economy – R&R – Reachout and Rebuild

New York: Most Unequal State in the Nation!

David Posnett — Mon, 14 Nov 2022 22:18:11 +0000

A new report from the Institute on Taxation and Economic Policy (ITEP) recently found that New York State is home to the highest concentration of extreme wealth in the United States. New York State also has the greatest income inequality in the United States. By both of these measures, New York is the most unequal state in the nation.

The Fiscal Policy Institute’s latest brief, Inequality in New York and Options for Progressive Tax Reform, details ITEP’s findings as they apply to New York State, reviews additional research and data on New York State’s income and wealth inequality, and lays out their implications for New York State tax policy.

Key findings include:

New Yorkers worth over $30 million collectively own $6.7 trillion in wealth. These ultra-rich New Yorkers are just 0.4 percent of the state population.

New York’s ultra-rich also hold about one-fifth of the total wealth held by all ultra-rich Americans — the highest concentration of wealth in any state.

Of the $6.7 trillion held by ultra-rich New Yorkers, ITEP estimates that $3.1 trillion consists of unrealized capital gains. Much of this wealth will never be taxed under current law.

New York State tax implications include:

New York’s current tax system, taken as a whole, is regressive: the wealthy pay about the same combined state and local tax rate as the bottom 40 percent.

Because of the substantial overlap between high income earners and owners of extreme wealth, increasing the progressivity of the existing Personal Income Tax would help to address extreme inequality.

At a minimum, the state should not allow the current PIT rates on high earners to expire, as they are currently set to, in 2027.

New York can further address extreme inequality, and increase the overall progressivity of its tax system, through a number of tax policy options, including:

Increasing tax rates on long-term capital gains for high-income taxpayers

Taxing unrealized capital gains on a mark-to-market basis for wealthy taxpayers

Increasing taxes on business profits, such as those earned through pass-through entities such as LLCs, and targeting the profit-shifting of multinational corporations

Taxing inherited wealth, or fixing the estate tax by lowering the exemption threshold and eliminating step-up in basis

Revising the state constitution to permit a direct wealth tax

This will be relevant after December 6, 2022, when “Invest in Our New York” establishes its strategy/agenda for the legislative session.

Geraldine R. Maslanka

How to Climb out of the Financial Rut in NY State

David Posnett — Sat, 06 Feb 2021 20:16:07 +0000

On Feb. 5th R&R heard a presentation by Rebecca Saletan and Nick Lyndon on “The Invest in our New York Act”. It is a package of 6 bills for the State of NY. Together they are proposed to raise more than $50 billion/year in sorely needed revenue:

TAXING HIGH INCOMES

Progressive Income Tax S2622: Creates a tax system where New Yorkers pay a higher rate if they earn significantly more money.RAISES $12-18 BILLION

Right now, individuals with incomes between $21,400 and $1,077,550 are all taxed at roughly the same rate of 6.5%. Higher earners should pay a higher rate. This bill would raise the tax rates on the top 5% of income-earners ($300,000 and above).

Sponsored by Senator Robert Jackson and Assemblymember Demond Meeks

2. Capital Gains Tax A3152:

Taxes income from investments like stocks same as wages.RAISES $7 BILLION

Rich people make much of their income from investments like stocks, not from their jobs. The federal government taxes investment income at a much lower rate than wages. New York can fix this by adding a tax to investment income that’s equal to the tax break the rich are getting from the federal government.

Sponsored by Senator Gustavo Rivera and Assemblymember Ron Kim

TAXING WEALTH

3. Heirs’ Tax S3462 :

A progressive tax on large sums of inherited wealth.RAISES $8 BILLION

Many rich people also make their money from inheriting enormous sums. They can make up to $5 million in a year through inheritance and pay no tax on it. Inheritances of less than $250,000, family homes up to $2 million, money from pensions or retirement funds, and family farms will not be affected.

Sponsored by Senator Jabari Brisport and Assemblymember Michaelle Solages

4. Billionaires’ Tax:

An additional tax on billionaires, and constitutional amendment to allow a wealth tax. RAISES $23 BILLION IN THE FIRST YEAR, $1.3 BILLION PER YEAR THEREAFTER

New York already has a wealth tax: it’s called a property tax. Homeowners pay it every year. But if you own a massive stock portfolio, it is not taxed. This tax would treat billionaires’ gains in wealth as income, and these increases would be taxed at income tax rates. Additionally, a constitutional amendment would allow the state to tax large sums of intangible wealth—i.e., stocks, bonds and company ownership— in the future.

Sponsored by Senator Jessica Ramos and Assemblymember Carmen De La Rosa

TAXING CORPORATIONS AND THE FINANCIAL SECTOR:

5. Wall Street Tax : A small tax on Wall St. financial transactions.RAISES $12-29 BILLION

Unlike other major financial centers like London and Hong Kong, New York doesn’t place any tax on financial transactions. The financial industry is the state’s largest industry: it makes up 30% of our economy. This bill places small taxes on trades of stocks, bonds and derivatives; a similar tax on stocks existed in NY until 1981.

Sponsored by Senator Julia Salazar and Assemblymember Yuh-line Niou

6. Corporate Tax S2833: A bill to repeal the Trump tax cuts, by restoring taxes on the profit a corporation makes each year. RAISES $9 BILLION

In 2017, Trump’s tax cuts reduced the federal corporate profit tax rate from 35% to 21%, and cut taxes on real estate businesses by 20%. New York can end these tax breaks in our state so that businesses pay the same tax as they did three years ago.

Sponsored by Senator Brad Hoylman and Assemblymember Anna Kelles

There is a detailed discussion with over 50 slides which is well worth reading (and beyond this summary):

https://docs.google.com/presentation/d/1MX3-gtlQzBi0nRxNmfTKcziy7YjfB4Y6jnT5Gj-8jVo/edit?usp=sharing

Friend of clean water, biodiversity, climate-friendly regenerative businesses and safe-guarding our shorelines? Read on…..

David Posnett — Tue, 01 Dec 2020 20:44:35 +0000

Dear Friend of the Shellfish Farmer,

If you are a friend of clean water, biodiversity, climate-friendly regenerative businesses, coastline protection, Earth and her oceans read on…..

Join us in support of our shellfish farmers, and support the inclusion of commercial seaweed (kelp) cultivation. A deadline is upon us for public comments on the Suffolk County Shellfish Aquaculture Lease Program — December 15, 2020.

Here’s information on the December 15th public meeting, and ways to comment via email or in writing.

Current Status

There is currently a 10-year review panel of the Suffolk County Aquaculture Lease Program (SCALP) being overseen by the SC Legislature’s Environment, Parks and Agriculture (EPA) committee, chaired by Legislator Kara Hahn with Legislator Al Krupski, Vice Chair.

The 10-year review process has been going on for many months, with several meetings involving different stakeholder groups including the lease-holders, commercial fisherman, yacht clubs etc., and that process has come to an end.

December 2020 Meetings Scheduled

The legislation incorporating the changes to the SCALP law that were the result of the 10-year review are expected, not guaranteed, to be introduced at the next General Meeting of the Legislature on 12/1/20. If it is introduced on that date, it will not be discussed or considered at the meeting, just introduced or what we refer to as “laid on the table” or LOT.

It will then be assigned to a committee, presumably EPA, where at their meeting on 12/7, it will be tabled for a public hearing at the next General Meeting on 12/15 – this is where you can offer public comments via ZOOM, via email or in writing.

Here is the link to the SCALP program – on the left sidebar is a link to the Ten Year Review Project under Sections: https://www.suffolkcountyny.gov/Departments/Economic-Development-and-Planning/Planning-and-Environment/Environmental-Planning-and-Aquaculture/Shellfish-Aquaculture-Lease-Program

Find agendas for meetings, reports, maps and public comments at https://www.scnylegislature.us/149/Meeting-Information

Public Comment

General letter in support of the Aquaculture Lease Program – send either to Legislator Kara Hahn, Chair: Kara.Hahn@suffolkcountyny.gov and Legislator Al Krupski, Vice Chair: al.Krupski@suffolkcountyny.gov Suffolk County Environment, Parks and Agriculture (EPA) committee or the Legislative Clerk at Clerk.Legislature@suffolkcountyny.gov with the request that it be distributed to all the legislators.

You can also sign and comment on this petition from the Long Island Oyster Growers Association, which highlights key facts:

https://www.change.org/p/suffolk-county-legislature-support-the-expansion-and-continuation-of-the-suffolk-county-shellfish-aquaculture-program

We support oyster and kelp farming

In sum, we support Suffolk County continuing the lease program for shellfish farming operations and we emphatically support the inclusion of commercial seaweed (kelp) cultivation.

Why include kelp?

-it’s a carbon sink, storing 20x more CO2 per acre than land forests.

–a super-faster grower, reducing excess nitrogen, and providing habit for hundreds marine species.

–a coastline safeguard, protecting coastlines from storm surges.

-a super-food, with fast-growing new market, being used for food. medicine, cosmetics, animal feed, biofuel, and even a new bio-plastic. You can buy from Atlantic Sea Farms, working with 2 dozen Maine lobstermen and fishermen.

-a valuable fertilizer, used on farms and in home gardens. Check out Soil and Seaweed: Farming Our Way to a Climate Solution.

-a big win-win-win for the East End — Stony Brook has done the research finding sugar kelp (Saccharina latissma) is able to grow using “commercial-style” techniques in all three of our estuaries. This is climate-friendly regenerative businesses generating $9.3 million in economic activity to Suffolk County.

There is alot of interest in kelp as a second crop among Long Island’s three dozen oyster farmers. Right now other states permit commercial growing and New York only allows kelp growing for experimental use. And a local market cannot start to develop as sugar kelp is presently not permitted for human consumption in our state.

Won’t you join us in support of our shellfish farmers, and support the inclusion of commercial seaweed (kelp) cultivation.

Thank you.

Mary Morgan and Diane Shapiro

Oceans + Coastal Sinks Team

Drawdown East End

Local Solutions to Reverse Global Warming

DrawdownEastEnd.org

Trump’s Economic Fallout

David Posnett — Mon, 05 Oct 2020 15:50:37 +0000

Guestwords in the East Hampton Star: Trump’s Economic Fallout for Suffolk County and Long Island

By John Tepper Marlin and Steven Newman October 1, 2020

President Trump’s three main economic initiatives have been radical 2017 cuts in taxes (at the expense of states and localities), unprecedented high tariffs on Chinese goods, and “deregulation” of federal agencies (entailing rejection of science-based programs). These initiatives have turned Washington, D.C., and the country upside down. How has this worked out? Following are some outcomes.

Mr. Trump’s denial of Covid-19 gives him ownership of its economic impact: The virus is not just an act of God. Mr. Trump’s knowing denial of its threat and refusal to recommend wearing masks immediately was a betrayal of his country. The pandemic is a national challenge just as much as the 9/11 attack on the World Trade Center towers. An early science-based national response would have greatly reduced the huge negative economic impact.

The corporate tax cuts did not deliver on business investment: The main idea behind the 2017 Tax Act was to reduce the top federal tax rate on corporations from 35 percent to 25 percent. At the last minute, the law, which skipped customary hearings and staff analysis, took the tax rate down to 21 percent, even lower than its major advocates had asked for. Mr. Trump claimed the law would close tax loopholes, about which his newly uncovered tax returns show him to be informed. But few loopholes were closed by the 2017 law. He said businesses would invest the money and thereby create jobs. But after a few months, corporations switched to using the money to buy back their stock, which made a negligible contribution to job creation.

The impact of a fiscal change on the economy is measured by the “fiscal multiplier” — the change in gross domestic product for each dollar of change in tax cuts or spending. A 2015 Congressional Budget Office analysis concludes that fiscal multipliers are more successful for spending programs than tax cuts, for lower-income than for higher-income taxpayers, and for periods of recession than for booms. A widely cited fiscal multiplier for corporate tax cuts is only 0.32, compared with multipliers of 1.71 for an increase in food stamps, 1.55 for extending unemployment benefits, and 1.44 for infrastructure investment.

Tax cuts for individuals: The Tax Act substantially reduced tax rates for the top personal income brackets. When new money gets into the hands of average people, they spend it, because they have real needs that are not being met. This is not true for the very rich. Nevertheless, Mr. Trump argued that tax breaks should go to highest-income taxpayers. Policies that increase unemployment benefits, child credits, and food stamps are not only more equitable, they also generate more jobs.

The Tax Act’s cap on the SALT deduction hit New York State hard: The lowering of the corporate tax rate from 35 percent to 21 percent in 2017 was paid for in part by a radical cap on the deductibility of state and local taxes (SALT) at $10,000 per taxpaying unit, whether single or married and filing jointly. This cap was deliberately targeted at higher-tax blue states. New York State has suffered the most, as indicated by the July jobs data, the latest we have. Jobs were down from a year earlier in every one of the nation’s 49 metro areas with a 2010 census population of 1 million or more. They are below the level of five years ago in more than half of these metro areas.

The five worst-hit metro areas in the country over five years include all three of the large New York State metros — Rochester, Buffalo, and New York City (which takes in a wide swath including Westchester, Nassau, and Suffolk Counties, northern New Jersey, and a piece of Pennsylvania). The SALT cap was a shock to state and local officials, who are scrambling to address lost tax revenues, and one of the hardest-hit cities is New York, which, unlike the federal government, must raise new taxes, cut spending, or borrow. That’s a choice between higher taxes, fewer employees, or postponed fiscal stress. Cutting the quality of services, from sanitation and health care to schools, will affect real estate values just as much as high taxes. Coupled with new interest in less-dense living to avoid exposure to Covid-19, this is making the East End of Long Island a beneficiary. But Suffolk can’t afford to let the engine of its prosperity falter.

The cap on the SALT deduction encourages moves by higher-income residents: The cap on the SALT deduction has made it more attractive and urgent for higher-income individuals to move to lower-tax states and communities. Blue-state residents have been moving to red states and will presumably seek to raise standards of education and other government services in their new locations. One silver lining is that it doesn’t take very many people moving from a populous blue state to increase electoral support for quality education in a small red state. Residents of New Jersey and New York are moving to Florida, while Californians are moving to Idaho and Nevada. Residents of New York City are moving to less-dense communities like East Hampton. Activism for better-quality services may generate some surprises in future elections.

Stressed states and localities need cash and are not getting it: This fiscal year has caught nearly every government by surprise. The CARES Act gave the Federal Reserve the right to lend to states and localities, but the Fed is acting as if the facility is intended as a last resort, for municipalities that can’t obtain private financing. But the municipal bond industry and many state laws favor long-term investment, not financing an operating deficit. Forcing municipalities to cut spending while the coronavirus crisis is still at our door is reverse Keynesian of the kind that exacerbated the worst years of the Great Depression.

Fortunately for the Town of East Hampton, the supervisor, Peter Van Scoyoc, and the town board have been able to keep the town functioning on a steady basis, but concentrating federal aid on businesses rather than local government means less fortunate communities face bleak options.

Tariffs on Chinese goods: Mr. Trump’s radical high-tariff moves are being paid not by Chinese producers but by American retailers and consumers, especially the fashion industry, which is suffering a knockout blow. China’s response to the U.S. tariffs has been to divert key supplies to Europe and has created shortages in this country — for example, in personal protective equipment and many medicines. China has meanwhile retaliated with tariffs on U.S. farm products. The relief program seems to have been concentrated on large agribusinesses, leaving small farmers without aid.

Deregulation has created new risks: The president’s science-denying efforts to roll back environmental, pharmaceutical, and other safety regulations have increased risks in each of these areas and have hampered a national response to the Covid-19 pandemic.

Over all, the economy has fared poorly. Yet the stock market has had an astonishingly good run. The main reason is that some corporations have been buying back their stock and the Federal Reserve has been flooding the financial markets with liquidity to help banks make loans and stave off business bankruptcies. Historically, the total return on stocks in the S&P 500 since 1947 has been higher under Democratic presidents, 10.8 percent per year, versus a rate under Republicans of 5.6 percent per year. The top performance was under Presidents Clinton and Obama, while the most negative was under Nixon and George W. Bush.

It’s a case of an open spigot for big business and a parched earth for states and local governments and nonprofits. This has left New York City in a financial crisis, but East Hampton has been relatively unscathed.

John Tepper Marlin has lived in Springs since 1981. He was for 20 years a federal government economist and the chief economist to three New York City comptrollers. Steven Newman, a resident of Queens, was chief of staff and first deputy to two New York City comptrollers.

Sowed Discord

David Posnett — Fri, 28 Aug 2020 15:01:42 +0000

Trump ‘s lackey boy, Lee Zeldin

Springs
August 24, 2020

Dear David:

The past three and a half years have been a master class in the havoc that can be wrought when a president is constrained by neither truth nor decency. Starting with the size of his inauguration crowd, it’s been brazen lie after brazen lie (20,000 and counting), and a never-ending assault on the rule of law.

He has sought to end health-care coverage for millions of Americans (and continues to do so during a pandemic), encouraged violence against journalists and political opponents, attempted to extort the president of Ukraine, re-tweeted preposterous and vile QAnon conspiracy theories, actively sown discord whenever he thinks it’s to his political advantage, and most recently he installed an unqualified lackey to sabotage the U.S. Postal Service. The list goes on and on.

But Trump couldn’t have inflicted so much damage on his own; he needed help from those willing to excuse his corruption and incompetence, and in that respect, our congressional representative, Lee Zeldin, has been a standout. Parroting any number of the president’s ridiculous talking points — from how confessed felon General Flynn has been treated unfairly to decrying that Lt. Col. Vindman “is no martyr” (No, he’s a Purple Heart recipient who served his country for 20 years and came forward when he witnessed wrongdoing), to lauding the president’s “phenomenal” handling of the coronavirus. Zeldin is an embarrassment.

Nancy Goroff, a distinguished scientist with years of experience tackling difficult problems and finding solutions, is running against Zeldin in November. The choice is ours. Do we want a sycophant who has spent the better part of his last two terms supporting the worst instincts of a dangerous president, or a woman who will represent and fight for the interests of her constituents with dignity and intelligence?

Sincerely,

CAROL DEISTLER

Stepien or Parscale? The Corona virus does not care.

David Posnett — Thu, 16 Jul 2020 03:36:18 +0000

WaPo reports that “Trump replaces campaign manager as polls show him trailing Joe Biden in 2020 race”.

President Trump announced on Facebook Wednesday evening that Bill Stepien would become his campaign manager, replacing Brad Parscale,…

Recent national and swing-state polls have shown Trump falling further behind former vice president Joe Biden, the presumptive Democratic nominee, …amid a spreading pandemic that has greatly harmed the economy.

Honestly? All they can think about is control of the narrative. The Trump campaign still isn’t taking this seriously. No one wears masks? And that includes Trump’s followers, like Lee Zeldin, who attended the Tulsa rally and then returned on Airforce 1 with other Trump loyalists (no masks in sight) – see picture.

Mass gatherings and rallies? Still OK. The Republican convention in Florida? Or wherever they can find a compliant governor? OK. Parties and mass gatherings for July 4th? OK. And now, we are starting to see an uptick of new cases of Covid-19 including in Suffolk County NY.

It’s unavoidable. The virus doesn’t care about politics. By-passing the CDC for political control of the numbers of new cases and the reports from the hospitals? Still, the virus doesn’t care.

It is stunning that these people think they can out-maneuver SARS CoV-2. And as long as we don’t control the pandemic there is no hope of rescuing the economy.

It might be useful to read some history books. The plague easily triumphed over competing European superpowers of the time:

Lowe’s or Home Depot? Your call.

David Posnett — Wed, 10 Jun 2020 01:59:22 +0000

Marvin Ellison, is the CEO of Lowe’s

Lowe’s announced Wednesday that it would assist minority-owned businesses with $25 million in grants to support efforts to relaunch the American economy.

Lowe’s is dishing out the funds to help small businesses, especially home improvement professionals, in need of masks, personal protective equipment and other supplies to operate safely. The new funds follow $340 million of support the home improvement retailer provided for Covid-19 response activities in the first quarter.

By contrast in regard to Home Depot (this from 2019):

Home Depot sought to distance itself from billionaire co-founder Bernie Marcus after he pledged to back President Trump’s bid for re-election in 2020.

Calls to boycott the retailer took off as news spread that Marcus told The Atlanta Journal-Constitution that he plans to support Trump’s bid for another term.

“If you plan on buying a hammer, wood, or ANY home improvement items from Home Depot, you may as well send donations DIRECTLY to trump’s 2020 campaign,” read one tweet under the hashtag #BoycottHomeDepot.

By Betsy Cagan | President| Bargaining Power Inc., New York, NY 10011, bargainingpower.com

Protest in Commack drawing criticism

David Posnett — Sun, 31 May 2020 20:29:29 +0000

Some insightful letters to Newsday:

The behavior of a few unruly demonstrators at the recent Commack protest was shameful [“Trump cheers LI protesters,” News, May 17]. If these few were, say, 4% of the
demonstrators, the other 96% could have and should have shouted them down. That
small group was aggressive, inconsiderate of others, and shameful. They think guns
and shouting and flags and MAGA hats combine to show they are correct. Where were the others with similar opinions who could discredit the shameful actions of those few? Why aren’t President Donald Trump and Fox News condemning what those few did? I hope other readers will react the same way, and I hope Newsday publishes their condemnation of those few.
Jan Huml, Bohemia

Friends from out of state were calling me and asking what’s wrong with the people here who harassed a TV reporter at a rally in Commack. I’m embarrassed by the sheer ignorance and arrogance of these people who don’t care about the coronavirus or who dies from it. Salons, gyms and nonessential business closings were the only thing that kept this virus from even more tragic consequences. These screaming people need to get a clue. As for me, I don’t care if you’re not smart enough to do the right thing. Go catch
the virus but keep it in your own circle. You shouldn’t be allowed to spread it to those
of us who abide by the state mandates.
Carol Galati, Ridge

We read how President Donald Trump worked his magic and people who had apologized for their appalling behavior were suddenly not at all sorry. That’s the president’s special sauce -— bring out the worst in people. On May 15, Trump tweeted, “Fake news is not essential,” with a video retweet of the ‘Setauket Patriots’ protest. The next day, he
tweeted that the TV reporter was an “enemy of the people.” Although the group had
apologized two days before, blaming a “few idiots” and “outsiders unaffiliated with the group” for harassing him, once they got the presidential nod, they reverted back to form, tweeting, “Thank You President Trump.” In November, it’s up to us to send Trump and his enablers packing.
Carol Deistler, Springs

The protesters who want to rush into opening Long Island with no precautions are like Typhoid Mary, who argued she should be free to live her life even if she infected others because she wasn’t sick herself [“We’re all Typhoid Mary now,” News, May 17]. We all want to resume a normal life, but most of us want to proceed with caution to lower the risk for the vulnerable. You can’t do that if you have a herd of people who don’t care if they are infected or if they infect others. Some, egged on by the Rush Limbaughs of the world, think it is no big deal if we cull the herd of the elderly, the sick and the poor. I am
most appalled by those protesters who call themselves Christians. Jesus did not tell his followers to turn their backs on the vulnerable. It is the exact opposite of what he said.
Bill Bence, East Meadow

Newsday’s editorial about the protesters who harassed that News 12 reporter got me
angry all over again [“Protesters behaving badly,” May 19]. To me, this small band of
haters in no way represents the larger majority of Long Islanders, and yet we now
seem to be singled out by President Donald Trump as being his supporters. I’m even
more upset by my local Republican representatives who now choose to just stand by
and do nothing to admonish the president or the protesters for their actions. I need to
remind them that we, the voting public, have very long memories and come November
will hold them accountable for their actions. I was and had been a conservative
Republican for 50 years — but not anymore.
Frank Socci, West Babylon

Suffolk County Executive Steve Bellone said in “Trump cheers LI protesters” [News,
May 17], responding to the president’s tweets, that he did not want “to get into any
kind of back and forth on what the president may be saying.” We understand Bellone’s
position as a politician in a county hard hit by COVID-19. President Donald Trump’s remarks aren’t overtly subversive, but I see them that way. He is really calling those who harassed News 12 Long Island reporter Kevin Vesey “great people,” showing Trump supports a fanatical base, the more fanatical the better. When he tweets, “Fake news is not essential,” he shows he understands the power of a free press and will actively undermine it at every turn. We must conclude that his concept of governing is antithetical to our representative, democratic ideals. I have only one question: President Trump, have you read the First Amendment, which guarantees the right to peaceably assemble — and a free press? It’s only 45 words, Mr. President, and it’s a good read.
Katherine Curcio-Payne, Seaford

Visiting New York City

David Posnett — Sun, 03 May 2020 03:13:07 +0000

I have not been in the city since late February 2020. Much has changed. It is now a ghost town. Nobody rides the subway and there are no cabs. On the bright side, there are plenty of parking spaces and little traffic.

A walk down East 86th street was depressing. Over 3-4 blocks, there were numerous store closures, some temporary and others for good. There was retail space for rent or lease. There was a plea for donations via a Go-Fund-Me website from a restaurant called “Little Frog” addressed to it’s loyal customers. Here are pictures taken on the evening of May 1st:

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You have to ask how long it will take to recover? How many stores will go under? What will happen to real estate prices? What will happen to jobs?

The city is definitely schizophrenic. Less than 24 hours later on a beautiful spring Saturday, everyone it seems was out in Central Park. Not much social distancing here. With or without masks, there were picnics, frisbees, pick up basketball, and couples kissing! Cyclists and joggers crowded the Central Park loop road. Your usual spring weekend in the park. There were so many people that 2 of them actually bumped into me by accident! I have a sneaky feeling that the Coronavirus will be happy to spread again. And I wonder how many of these folks will visit the beaches in the Hamptons on a hot summer weekend.

When the Forgotten Remain Forgotten, no one is Secure

David Posnett — Sun, 26 Apr 2020 20:05:48 +0000

The Covid-19 pandemic is putting the deepening class divide in America into stark relief.

Four new classes are emerging.

The Remotes: These are professional, managerial, and technical workers – an estimated 35% of the workforce – who are putting in long hours at their laptops, Zooming into conferences, scanning electronic documents, and collecting about the same pay as before the crisis. Many are bored or anxious, but they’re well off compared to the three other classes.

The Essentials: They’re about 30% of workers, including nurses, homecare and childcare workers, farm workers, food processors, truck drivers, warehouse and transit workers, drugstore employees, sanitation workers, police officers, firefighters, and the military. Too many Essentials lack adequate protective gear, paid sick leave, health insurance, and childcare, which is especially important now that schools are shuttered. They also deserve hazard pay. Their vulnerability is generating a wave of worker activism at businesses such as Instacart, Amazon, Walmart, and Whole Foods. Mass-transit workers are organizing work stoppages. Trump’s Occupational Safety and Health Administration has the legal authority to require private employers provide essential workers with protective gear. Don’t hold your breath.

The Unpaid: They’re an even larger group than the unemployed – whose ranks could soon reach 25%, the same as in the Great Depression. Some of the unpaid are furloughed or have used up their paid leave. So far in this crisis, 43% of adults report they or someone in their household has lost jobs or pay, according to the Pew Research Center. An estimated 9.2 million have lost their employer-provided health insurance. Many of these jobs had been in personal services that can’t be done remotely, such as retail, restaurant, and hospitality work. But as consumers rein in spending, layoffs are spreading to news organizations, tech companies, and consumer-goods manufacturers. The unpaid most need cash to feed their families and pay the rent. Fewer than half say they have enough emergency funds to cover three months of expenses, according to a survey conducted this month by Pew. So far, government has failed them, too. Checks mailed out by the Treasury last week are a pittance. Extra benefits could help, but unemployment offices are so overwhelmed with claims that they can’t get money out the door. Loans to small businesses have gone largely to big, well-connected businesses, with banks collecting fat fees. On Wednesday, Republican Senate majority leader Mitch McConnell said he is opposed to any further federal aid to state and local governments, suggesting states declare bankruptcy instead. Which means even less money for unemployment insurance, Medicaid, and everything else the unpaid need. The resulting desperation is fueling demands to “reopen the economy” long before it’s safe. If it comes down to a choice between risking one’s health and putting food on the table, many will take the latter.

The Forgotten: This group includes everyone for whom social distancing is nearly impossible because they’re packed tightly into places most Americans don’t see: prisons, jails for undocumented immigrants, camps for migrant farmworkers, Native American reservations, homeless shelters, and nursing homes. While much of New York City is sheltering at home, for example, more than 17,000 men and women, many already in poor health, are sleeping in roughly 100 shelters for single adults. All such places are becoming hotspots for the virus. These people need safe spaces with proper medical care, adequate social distancing, testing for the virus and isolation of those who have contracted it. Few are getting any of this. Not surprisingly, the Essentials, the Unpaid, and the Forgotten are disproportionately poor, black, and Latino and they are disproportionately becoming infected. An Associated Press breakdown of available state and local data showed close to 33% of those who have died from Covid-19 are African American, despite representing only 14% of the total population in areas surveyed. The Navajo Nation already has lost more people to coronavirus than have 13 states. Four of the 10 largest-known sources of infection in the United States have been correctional facilities. These three groups aren’t getting what they need to survive this crisis because they don’t have lobbyists and political action committees to do their bidding in Washington or state capitals.

The Remotes among us should be concerned, and not just because of the unfairness of the Covid-19 class divide. If the Essentials aren’t sufficiently protected, the Unpaid are forced back to work earlier than is safe, and if the Forgotten remain forgotten, no one is secure. Covid-19 will continue to spread sickness and death for months, if not years to come.

This Tuesday, April 28 at 11 a.m. Pacific Time/2 p.m. Eastern Time, I’ll be having a live discussion with Stacey Abrams about the future of the Democratic Party and voting rights in the age of coronavirus. You can tune in here.

Stay Safe, Robert Reich, Inequality Media P.S.

D. Posnett: Note for D. Trump and L. Zeldin: best to consider all of these 4 groups when attempting to rebuild the economy. Just one sick group with rampant COVID-19 will bring us all down. Viruses don’t really care about who you are. Celebrity or a jailbird, homeless or a billionaire, it’s all the same to them.