economic crisis

 
On the eve of Mayor Nutter's budget speech, Kristin Campbell, an organizer with the Coalition to Save the Libraries, has a piece in Organizing Upgrade that reminds us what the city has learned from last year’s successful fight to keep the Nutter administration from closing 11 libraries. 
 
 

 
Democracy Now reported recent numbers that show improved profits of major corporations is not translating to the creation of jobs. Revenue across the Standard & Poor 500 (an index of major companies) have increased to a combined total of $1.18 trillion. This is up $518 million from last year, while capital expenditures, the kind of spending that can create jobs is down by 43%. In short, the market is profiting without workers.

 
With next year's budget proposals underway we are already seeing the hatchet for slashing budgets that brought about fears of government stand still last year.
 
Philadelphia is faced with a budget deficit of upwards of $100 million for fiscal year 2011. Over the five years that the city has to plan for, it's looking at a $500 to $700 million shortfall. This is a significant chunk of change to add on to the $2.4 billion already cut in the city's five-year plan last round.

The Wall Street Journal ran an article summing up some of the job losses that defined this recession - and that many of these jobs will never return. Unlike recessions past, when workers were temporarily laid off and then brought back on the job, this time around marked high rates of permanent layoffs and the disappearance of whole sectors of work. Real estate and construction took some of the hardest hits, with over 1.6 million construction jobs lost - a fifth of the 7.2 million lost since December 2007.

Philadelphia is in crisis. People across the city are feeling the effects of the global economic downturn and wondering what the future will bring for them and their families. The city has finally resolved a long, drawn out, and deeply unsettling budgeting process, and it feels now like the dust has finally settled. But even though massive service cuts and layoffs are off the table for now, this economic crisis is far from over, and we in Philadelphia now have a clear idea of the kinds of solutions our city government is willing to present.

 
In a report released today, the Fiscal Policy Institute examines the effect of the current economic downturn on New York State, finding that job loss and wage declines are hitting New Yorkers hard - with some groups experiencing staggering levels of unemployment. Joblessness in New York State has increased by almost 400,000 since early 2008. How does this extreme growth in unemployment relate to Pennslyvania?

Photos by Mariel Waloff
 
Yesterday afternoon, hundreds of Philadelphians came out in the rain to send a message to state legislators (who were meeting nearby) that Mayor Nutter's attempt to balance the city budget on the backs of city workers is unacceptable.

 
On Tuesday, public employees from four major unions in Philadelphia (TWU 234, AFSCME D.C. 33 and D.C. 47 and SEIU 32BJ), will hold a rally to demand that local and state politicians do not solve the city and state fiscal shortfall on the backs of working class families and public employees.Squeezing low-wage workers is no way to deal with the economic crisis,said Wayne MacManiman, 32BJ Mid-Atlantic Area Director. We are calling on Mayor Nutter to protect the wages of the working people who keep our City running.”The rally comes at a critical time, as workers in AFSCME DC 33 and DC 47 as well as police and firefighters have been working without a contract since June 30th. While these unions are currently in contract negotiations with the City of Philadelphia, there is speculation that it will be difficult to find compromise as the Mayor seeks to flatten workers' wages and cut contributions in healthcare and pension.
 
Check out MMP's audio and video coverage of the last public employees rallyhere