Chapel Hill, NC – Chanting “They say cut back, we say fight back!” a group of 50 students, campus workers and faculty marched on the Board of Trustees meeting March 26. The main theme of the protest was “No budget cuts on the backs of students and workers.” After rallying on campus, the demonstrators marched over to the Carolina Inn, a luxurious hotel that was hosting the Board of Trustees meeting.

San Jose, CA – On Monday, March 30, President Obama took a tough line with General Motors and Chrysler, which had asked for billions more in aid from the government. GM CEO Wagner was forced to resign, and GM has 60 days to submit a new business plan with more cost cutting. Chrysler was given 30 days to sell a stake to Italy’s Fiat. Otherwise, said Obama, the car companies will go into bankruptcy. To help the companies through this restructuring, the government will be guaranteeing car warrantees and payments to parts suppliers.

As effects of the economic crisis ripple across the U.S., budget shortfalls have sparked crises in nearly every educational system. Public school systems are seeing layoffs of teachers which will mean bigger class sizes, declining quality in education and more stresses on already strained public school systems. Universities have seen their endowments shrink substantially, prompting a crisis of how to continue with slashed operating budgets.

Demonstrators say, “Moratorium now on foreclosures and evictions!”

Minneapolis, MN – About 100 demonstrators gathered outside the Minneapolis Convention Center to protest a massive auction of foreclosed homes, March 28. The protest was initiated by the Minnesota Coalition for a People’s Bailout.

St. Paul, MN – The first legislative hearing on the Minnesota People’s Bail Out Act (House File 626) was held in the Minnesota House Labor and Consumer Protection Division Committee, March 20.

Fed to Inject $1.15 Trillion More into Credit Markets

San José, CA – On March 18, the Federal Reserve announced that it would inject an additional $1.15 trillion into credit markets. With short-term interest rates already close to zero percent, the Federal Reserve will try to lower long-term interest rates in an effort to boost the economy. The Fed will buy another $750 billion in bonds backed by mortgages guaranteed by Fannie Mae and Freddie Mac, $300 billion in long-term U.S. government treasury bonds and another $100 billion in bonds issued by Fannie Mae and Freddie Mac.

Recently the media has been abuzz with talk of the possible ‘nationalization’ of ailing big banks such as Citigroup. Both Democrat and Republican senators, as well as the former chair of the Federal Reserve, Alan Greenspan, have raised the possibility of a temporary ‘nationalization’ or government takeover of big banks.

Minneapolis, MN – More than 40 protesters gathered here March 14 at the foreclosed home of Rosemary Williams, to demand that Williams be allowed to stay in her home and an end to foreclosures.

650,000 More Jobs Lost in February

San José, CA – On March 6, the Labor Department reported that the economy lost 650,000 more jobs in February. The report also said that the number of jobs lost in December and January was revised upwards by 150,000. This brought the total job losses since the recession began to 4.4 million, more than half lost in the last four months alone. The total number of jobs has shrunk by 3.2% since the recession began, the most in more than 50 years.

Minnesota – A broad coalition has formed to demand that the Minnesota legislature take concrete steps to protect low-income and working Minnesotans from the effects of the snowballing economic crisis. The Minnesota Coalition for a People’s Bail Out brings together union members, welfare rights organizations and others.

More than Half a Million Jobs Lost in November, Most since 1974

San Jose, CA – On Friday, Dec. 5, the Department of Labor reported that 533,000 jobs were lost in November, the worst one-month decline since 1974. The job losses cut across the economy, with only health care showing any sizable increase in employment. In addition the report revised upward the job losses in September and October, showing that the economy has lost a total of almost 2 million jobs in 2008. The official unemployment rate increased two-tenths of one percent to 6.7%. This figure would have been much higher except for the fact that more than 400,000 people stopped looking for work and were not counted in the official unemployment report. A broader measure of unemployment that includes people working part-time but wanting full-time work, and those jobless who had given up looking for work, rose to 12.5%, or one out of every eight people in the labor force.

St. Paul, MN – While state officials announced a record $5.2 billion dollar budget deficit at the State Capitol here, Dec. 4 , about 25 members of the Minnesota Coalition for a People’s Bailout were outside the room chanting, “Hey politicians, here’s the fix! Tax the rich! Tax the rich!”

San José, CA – In late September massive popular opposition to the Bush administration’s bank bailout plan led to its defeat in Congress on Sept. 29. But behind the backs of the American people, the Federal Reserve and the Treasury, with the cooperation of leading Democrats in Congress, were orchestrating an even larger bailout. Between mid-September when the investment bank Lehman Brothers failed, and the end of October the Federal Reserve quietly lent out more than $1 trillion (one thousand billion) dollars, or almost 40% more than the ‘public’ $700 billion bank bailout.

San Jose, CA – On Friday, Nov. 6, the Department of Labor gave a dismal report on the labor market in October, with the unemployment rate jumping to 6.5% from 6.1% in September, the highest rate in 14 years. At the same time businesses cut 240,000 jobs in October, pushing the total job losses to 1.2 million this year. Even worse, the report made corrections to August and September’s figures – both almost doubled the job losses, from 73,000 to 127,00 in August and from 159,000 to 284,000 in September. A day earlier, a report on unemployment insurance claims showed that the number of people receiving benefits jumped by 122,000 in one week to highest level since 1983. This report suggests that the October job loss figure could be revised even higher.

Yes, I haven’t heard, much less said “capitalist pig” for more than 30 years. But I couldn’t help thinking it when I heard that Goldman Sachs, Morgan Stanley and Merrill Lynch (three former Wall Street investment banks; Merrill Lynch has been taken over by Bank of America) are planning to pay $20 billion in bonuses. To make matters worse, Goldman Sachs and Morgan Stanley are receiving $10 billion each in bank bailout money, while Bank of America will receive $25 billion.

St. Paul, MN – Standing in front of banner reading, “Bail out poor and working people – not billionaires!” leaders of the Welfare Rights Committee announced a campaign to combat the impact of the growing economic crisis at a press conference here, Oct. 29. They were joined by members of AFSCME Local 3800, the Anti-War Committee, Women Against Military Madness and other peace and justice groups.

One year after the current financial crisis began, the situation has gone from bad to worse. What began with the failure of small mortgage lenders has toppled Wall Street investment banks, the largest mortgage company in the world, and a trillion-dollar insurance firm. Depositors are starting to flee banks and money market funds, putting businesses in danger of not being able to get loans. Banks don’t want to lend to each other and the stock market can’t find buyers. The economy continues to get worse month by month. As job losses mount, companies declare bankruptcy, foreclosures rise and consumers cut back on spending.

San Jose, CA – On Friday, Oct. 3, the House of Representatives voted to approve Secretary of Treasury Henry Paulson’s $700 billion bailout plan and then left town to campaign for the election. Despite government reports showing that almost half a million people applied for unemployment insurance benefits in one week alone in September and that the economy had lost 159,000 jobs, Congress did not extend unemployment insurance benefits for the long-term unemployed. This inaction will cause almost 800,000 jobless workers to lose their benefits this month.

Keep the heat on Congress!

Commentary by the editor of Fight Back!

A Fight Back! Editorial