Another step toward first U.S. debt crisis in history

San José, CA – Today, Oct. 15, right-wing Republicans in the House of Representatives stopped the House Republican leadership from trying to pass a compromise measure to re-open the federal government and raise its debt ceiling. This marks another step towards the first U.S. debt crisis in history.

San José, CA – Four years after the Great Recession of 2007-2009 officially ended, millions of working people are being left behind by the expansion of the economy. While the stock market and corporate profits reached new highs, there are still millions of fewer jobs than before the recession began, and the official unemployment rate is closer to its recession high than the low before the recession. Things are bad.

San José, CA – At midnight on Oct. 1, the federal government began a partial shutdown. Later that morning, hundreds of thousands of federal workers showed up to wind up work – putting up closed signs at national parks and monuments across the country and updating web pages saying that many functions were no longer available. Then they went home for an indefinite furlough without pay.

San José, CA — On Sept. 29, the House Republicans passed a temporary spending bill for ten weeks, starting Oct. 1 if the Affordable Care Act (often called Obamacare) is delayed for a year. With the Democrat-controlled Senate already having turned down similar measures and a veto promise from President Obama, the federal government is headed for its first shut down since 1996.

Labor Force Participation Rate drops to 35 year low

San José, CA – On Sept. 6, the Labor Department announced that the official unemployment rate dropped to 7.3% in August, down from 7.4% in July. But even though 110,000 fewer people were working in August than July, 310,000 people gave up looking for work and were no longer counted as unemployed. The Labor Force Participation Rate, or the fraction of the adult population who are either working or looking for work, fell to 63.2%, the lowest since August 1978.

San José, CA – On July 1, interest rates for federally subsidized student loans to pay for college are set to double, rising from 3.4% to 6.8%. This will affect almost 10 million students who will be taking out new loans this coming year. Over the life of their loans, this rise in interest rates could add about $4000 to the cost of college for a student entering college in the fall of 2013.

Newark, NJ – The People’s Organization for Progress (POP) put a Hands off Social Security picket line in front of the Essex County Social Security building, April 16. Hundreds of drivers blew horns. Passersby stop to talk and show solidarity. Other participating organizations included the International Action Center, One People One Nation, Veterans for Peace and the Coalition to Save Our Homes.

Provo, UT – Students and community members protested in front of the Wells Fargo building on April 6 to voice their opposition to Wells Fargo’s hypocritical marketing. Wells Fargo deeply invests in privately owned prisons through firms like Corrections Corporation of America (CCA), the largest private prison company in the U.S.

Gainesville, FL – The Alachua County Wage Theft Task Force has been working to stop wage theft in Alachua Coutny, Florida for the past year. Wage theft, or the stealing of earned wages, has increased during the economic downturn. Wage theft is responsible for stealing at least $30 billion a year from American workers. This crisis affects poor and immigrant communities the most, with over 60% of low-wage workers reporting theft of their wages each week. As a result, low-wage workers lose about 15% of their earnings each year to the bosses.

_Economic expansion continues...for now _

San José, CA – On Jan. 30, the Commerce Department reported that Gross Domestic Product, or GDP, fell by a very small amount (0.1% at an annual rate) in the last three months of 2012. The drop in GDP was largely because of a big drop in federal government purchases of goods and services, in addition to a drop in inventories (meaning that stores sold goods that were sitting on their shelves instead of having more produced) and a drop in exports.