US Economy
The dismantling of Pontiac, Michigan
A dress rehearsal for Detroit
By Esther Galen, 17 June 2013
Of 21 Michigan cities under emergency managers, none has yet faced as drastic cuts in public services as Pontiac.
Pontiac residents describe social disaster left by emergency manager
By our reporters, 17 June 2013
Workers in Pontiac spoke about their experiences under emergency management.
Global stock sell-off amidst signs of deepening slump
By Andre Damon, 6 June 2013
The volatility in financial markets reflects the artificial and unsustainable character of the rise in asset prices in the midst of stagnation and slump in the real economy.
Major credit lenders investigated for debt collection practices
By Nick Barrickman, 5 June 2013
Federal regulators announced plans last month to expand an investigation into widespread allegations of illegal credit card debt collection practices by major banking institutions
The 2008 crisis and the restructuring of class relations in America
By Andre Damon, 4 June 2013
The 2008 crisis was seized upon to restructure class relations in the United States, throwing millions into poverty and slashing wages and living standards to enrich the financial oligarchy.
Connecticut legislature nears passage of austerity budget
By Dorian Griscom, 4 June 2013
Connecticut’s Democratic governor and state legislature are in the final stages of drafting a state budget that will cut nearly $2 billion in social spending over the next two years.
Chicago Sun-Times fires all staff photographers
By Alexander Fangmann, 3 June 2013
The Sun-Times photographers were informed of their layoffs in a profoundly hostile manner despite years, in some cases decades, of work for the newspaper.
Obama, Congress prepare to hike interest on student loans
By Leon Gutierrez and Trent Novak, 1 June 2013
On Friday, US President Barack Obama unveiled his administration’s proposal for student loan borrowers.
Furloughs of civilian defense department workers begin in the US
By Andre Damon, 31 May 2013
About 750,000 civilian Defense Department employees began receiving furlough notices Tuesday and will take up to 11 unpaid furlough days starting July 8, amounting to a 20 percent pay cut.
US banks post record profits in first quarter
By Nick Barrickman, 30 May 2013
US banks posted a record $40.3 billion in the first quarter of 2013, according to a report by the Federal Deposit Insurance Corporation.
Trillions hidden in tax havens by super-rich, corporations
By Julien Kiemle, 30 May 2013
The ultra-wealthy, banks and corporations have some $32 trillion of wealth hidden in off-shore tax havens, according to a leaked cache of information.
Job seekers camp out for applications in New York
By Dan Brennan, 29 May 2013
Hundreds of desperate job seekers queued on the street in New York City for up to six days for the chance to file applications for elevator service and repair apprenticeships.
Train derails, explodes outside Baltimore, Maryland
Third transportation disaster this month underscores US infrastructure crisis
By Marcus Day, 29 May 2013
A train carrying chemicals derailed outside Baltimore, Maryland yesterday afternoon, causing a massive explosion and damaging several surrounding buildings.
US farm bill proposals include huge cuts to food assistance
By Ruby Rankin, 27 May 2013
The House farm bill includes almost $21 billion in cuts to the Supplemental Nutrition Assistance Program program over the next ten years.
Government of, by, and for the banks
By Andre Damon, 25 May 2013
Not content to merely buy off politicians, banks in the US are increasingly writing the laws that are supposed to regulate them.
The Skagit River Bridge collapse: Another example of decaying infrastructure
By Christine Schofelt, 25 May 2013
A truss bridge built in 1955, the Skagit River Bridge, had been evaluated as “Somewhat better than minimum adequacy to tolerate being left in place as is.”
Poverty skyrockets in US suburbs
By Marcus Day, 23 May 2013
According to a new report by the Brookings Institution, poverty rose more than 64 percent in US suburbs from 2000 to 2011.
Apple CEO defends multi-billion-dollar tax dodge
By Andre Damon, 22 May 2013
Apple CEO Tim Cook used his appearance before the Senate Permanent Subcommittee on Investigations to call for a sharp reduction in corporate taxes.
More Michigan schools on the brink of insolvency
By Naomi Spencer, 20 May 2013
Nearly 50 Michigan school districts are operating with a deficit.
Pew report shows decline in retirement security for most Americans
By Ed Hightower, 18 May 2013
The study predicted increasing wealth inequality for each of five successive age groups as they approach retirement.
Sharp increase in US jobless benefit claims
By Andre Damon, 17 May 2013
Negative economic figures released this week point to continuing stagnation in the US amidst a worsening slump internationally.
US Defense Department to furlough 650,000 civilian workers
By Naomi Spencer, 16 May 2013
US Defense Secretary Chuck Hagel on Tuesday announced plans to impose 11 days of unpaid leave for most of the Pentagon’s 800,000 civilian employees beginning in July.
Divisions between major powers dominate G-7 meeting
By Nick Beams, 13 May 2013
Differences within the G-7 over economic policy are fuelled by the fact that almost five years since the global financial crisis erupted, the world economy is marked by deepening recessionary trends.
The 15,000 Dow
By Barry Grey, 9 May 2013
In the midst of the worst economic crisis since the Great Depression, the Dow has gained over 8,500 points, surging nearly 130 percent since it bottomed out in March of 2009.
US surpasses other industrialized countries in infant death rate
By Naomi Spencer, 9 May 2013
More than 11,000 American babies die on the day of birth, a number 50 percent higher than all other industrialized countries combined.
Obama’s budget calls for restrictions on public housing recipients
By Nick Barrickman, 9 May 2013
The expansion of the “Moving to Work” program will allow states to enact stringent restrictions on eligibility for housing benefits.
Anemic US jobs report points to ongoing slump
By Andre Damon, 8 May 2013
The US Labor Department said Friday that the economy added 175,000 jobs in May, barely enough to keep up with the increase in population.
Patriot Coal bankruptcy threatens thousands of US miners, retirees
By Clement Daly, 8 May 2013
Patriot is attempting to use the bankruptcy court to rid itself of obligations owed to more than 1,650 active union miners and 13,000 retirees.
Obama nominates billionaire backer as commerce secretary
By Kristina Betinis, 6 May 2013
Penny Pritzker, Obama’s nominee for commerce secretary, would be the wealthiest person in US history to serve in the cabinet.
Caterpillar announces more layoffs in Illinois and Canada
By Marcus Day, 6 May 2013
Heavy-equipment manufacturer Caterpillar has announced more layoffs at its facility in Decatur, Illinois, and the shuttering of an entire plant in Toronto.
Low-wage, part-time jobs dominate tepid rise in US payrolls
By Barry Grey, 4 May 2013
The vast bulk of new jobs are in low-wage service industries or in temporary or part-time positions.
The social crisis in America
By Andre Damon, 4 May 2013
The official silence on the growth of poverty and social misery stands in stark contrast to the daily struggle of the majority of the US population just to make ends meet.
Detroit residents speak out against mass evictions
By a campaign team, 1 May 2013
Residents of the Henry Street apartments, located in Detroit’s Cass Corridor, held a tenants meeting on Sunday to fight the eviction from their homes on May 20.
Massachusetts budget debate: More economic distress for workers
By John Marion, 1 May 2013
Unemployment figures in the state paint a familiar picture: fewer jobs but a lower official jobless rate because a growing number of workers have given up looking.
Pennsylvania plans sell-off of state liquor stores
By Douglas Lyons, 29 April 2013
The privatization of state-owned liquor stores will result in the layoff of up to 5,000 workers.
Report on US economic growth points to continuing stagnation
By Barry Grey, 27 April 2013
A growth rate of 2.5 percent in the country’s GDP is too weak to significantly impact the jobs crisis.
Average US student debt tops $20,000
By Zac Corrigan, 27 April 2013
The percentage of 25-year-olds with student debt has grown by nearly one third, and the average amount owed has risen by 91 percent.
Detroit residents face eviction as officials gentrify downtown region
By Lawrence Porter, 27 April 2013
Elderly and handicapped residents of a apartment complex near downtown have been told to leave within a month, and police have begun transporting the homeless outside of city limits.
The Detroit crisis and the municipal bond racket
Timeline of Detroit debt crisis
By Jerry White, 26 April 2013
Detroit is one of many US cities that have taken on crushing levels of debt in response to the Crash of 2008 and to offset cuts in federal aid and state revenue.
New report finds increase in social inequality during US “recovery”
By Ed Hightower, 25 April 2013
A Pew report found that the poorest 93 percent of US households saw a four percent decline in net worth between 2009 and 2011, while the wealthiest seven percent saw a 28 percent increase.
US sequester furloughs delay flights, threaten airport safety
By Kate Randall, 23 April 2013
Unpaid furloughs imposed on air traffic controllers will result in flight delays and cancellations at airports across the US.
Obama administration seeks to sell off Tennessee Valley Authority
By E.P. Bannon, 22 April 2013
In addition to unprecedented cuts in Social Security and Medicare, the White House budget targets the Tennessee Valley Authority (TVA), the electrification project created under the New Deal, for sale to private energy firms.
GE Transportation announces 950 layoffs in Erie, Pennsylvania
By Jeff Lusanne, 20 April 2013
After record 2012 profits, GE Transportation has announced the layoff of 20 percent of its workforce at its facility in Erie, Pennsylvania.
California’s alarming demographic trends
By Allison Smith and Marc Wells, 19 April 2013
The demographic trends of the past eight years point to a staggering level of social distress in California.
IMF slashes world growth outlook
By Andre Damon, 18 April 2013
The International Monetary Fund downgraded its 2013 outlook for the world economy Tuesday amid mounting signs that the global slump is intensifying.
Sequestration cuts hit Michigan
By Lawrence Porter, 18 April 2013
As a result of the sequester cuts signed by President Obama, $150 million will be cut from programs that particularly affect the poor in Michigan.
Mass layoffs in Illinois
By Shane Feratu and Jeff Lusanne, 18 April 2013
A large number of companies in Illinois have announced closures and job cuts.
Another bumper year for hedge fund billionaires
By Andre Damon, 17 April 2013
Amid mass unemployment, swelling poverty rates and falling wages, Wall Street hedge fund operators once again raked in astronomical pay packages last year.
More than 10 million Americans among the working poor
By Kate Randall, 17 April 2013
Nearly a quarter of all those living in poverty in the US are working, but low wages keep them below the federal poverty threshold.
Emergency manager to select former law firm as Detroit’s “restructuring counsel”
By Bryan Dyne, 17 April 2013
Emergency manager Kevyn Orr is set to select his old law firm, Jones Day, to oversee the restructuring of Detroit’s debt on behalf of the bondholders and banks.
The great unmentionable: Mass unemployment in America
By Andre Damon, 15 April 2013
There is no reflection in what passes for the “news” or the discussions that dominate the political establishment of the concerns of the broad masses of the population.
Washington state nuclear workers face layoffs after sequester cuts
By J.W. Noeli and Hector Cordon, 13 April 2013
Hundreds of workers involved in the critical cleanup of the Hanford Nuclear Reservation have been laid off, with thousands more to be furloughed.
Detroit workers, youth denounce emergency manager
By Bryan Dyne, 12 April 2013
Detroit city workers and youth are deeply concerned that they will be targeted by the cuts to social services and public works to be carried out by the emergency manager.
Obama budget slashes Social Security, Medicare
By Andre Damon, 11 April 2013
US President Barack Obama unveiled his budget proposal Wednesday, calling for a historic attack on Medicare and Social Security.
Obama defends plan to cut Medicare and Social Security
By Andre Damon, 9 April 2013
After media reports that the Obama administration plans to slash Medicare and Social Security in its latest budget proposal due to be released Wednesday, government officials have been seeking to diffuse popular opposition to the cuts.
Communities across US feel impact of sequestration cuts
By Kate Randall, 9 April 2013
The effects of the sequestration order signed by President Obama on March 1 began to be felt in earnest beginning April 1.
Thousands of scientists protest US cuts to medical research
By Nick Barrickman, 9 April 2013
Up to 15,000 scientists from around the country attended Monday’s rally, which was called by the American Association for Cancer Research.
Steubenville, Ohio: Portrait of a rust belt city
By Phyllis Scherrer and Samuel Davidson, 8 April 2013
Steubenville recently gained notoriety because of a tragedy last August which resulted in the conviction of two teenage boys for sexually assaulting a 16-year-old girl.
US infrastructure dilapidated, underfunded
By Clement Daly, 8 April 2013
The American Society of Civil Engineers assessed US infrastructure as “poor” and “at risk.”
A Call to Action
Oppose the bankers’ dictatorship in Detroit!
By the Socialist Equality Party, 8 April 2013
For an indefinite period of time, Detroit’s emergency manager, Kevyn Orr, can enact laws, replace all elected officials, deploy the police, rip up contracts and assume all the powers of government.
Obama attacks Medicare and Social Security
By Kate Randall, 6 April 2013
The new Obama budget will cut hundreds of billions of dollars from vital programs on which millions of retired and disabled people depend.
US jobs growth slows to a crawl
Hundreds of thousands drop out of the workforce
By Andre Damon, 6 April 2013
The US economy created 88,000 jobs in March, far less than had been expected, as $1.2 trillion in sequester cuts began to take effect.
Disney shuts down video game developer LucasArts, lays off 150 staff
By Kevin Martinez, 6 April 2013
Following the $4 billion acquisition of the parent company Lucasfilm by the Walt Disney Company, all current projects and staff at Lucas Arts have been suspended.
Multi-billionaire Dan Gilbert seeks to cash in on Detroit’s financial dictatorship
By Lawrence Porter, 6 April 2013
Dan Gilbert, the multi-billionaire owner of Quicken Loans, has unveiled a plan to gentrify downtown Detroit with the aid of the newly installed emergency manager.
US sequester cuts treatment for thousands of cancer patients
By Kate Randall, 5 April 2013
Medicare patients are being told to seek cancer treatment at hospitals, where it will be more expensive and accessibility is not assured.
The terrible cost of Washington’s wars
By Bill Van Auken, 3 April 2013
The report that the wars in Iraq and Afghanistan will end up costing as much as $6 trillion is another indication of the terrible price paid by working people the world over for the crimes of imperialism.
Emergency manager’s ex-law firm hired to oversee Detroit restructuring
By Bryan Dyne, 3 April 2013
Jones Day, the law firm where Kevyn Orr worked before becoming Detroit’s emergency financial manager, has been retained by the city of Detroit as its “re-structuring counsel.”
T-Mobile lays off several hundred workers in Washington State
By Hector Cordon, 3 April 2013
The communications company, owned by global giant Deutsche Telekom, is currently preparing for a merger with Dallas-based MetroPCS.
Approval of Stockton, California bankruptcy paves way for new assault on workers’ pensions
By Gabriel Black, 2 April 2013
A federal bankruptcy judge ruled on Monday that the city of Stockton, California could proceed with the largest municipal bankruptcy in US history.
Augusta, Georgia: Police hold back crowd in near-food riot
By Eric London, 1 April 2013
The crowd of 300 watched in anger as the large pile of fresh groceries was thrown into dumpsters and carted away to rot in a nearby landfill.
Fire kills five near Sherrard, Illinois
By George Marlowe, 1 April 2013
A deadly fire in Sherrard, Illinois killed five people in a double-wide mobile home.
Convicted Ponzi schemer Madoff accuses US government of stonewalling on bank prosecutions
By Andre Damon, 30 March 2013
Bernard Madoff, who admitted in 2009 to running a multibillion-dollar Ponzi scheme, has charged that the government-appointed trustee for his firm’s investors is ignoring evidence of major banks’ complicity in his activities.
US food stamp use swells to a record 47.8 million
By Kate Randall, 29 March 2013
Enrollment in the food assistance program has increased by 70 percent since 2008, driven by a stagnating job market and rising poverty levels.
New law granting Detroit emergency manager sweeping authority goes into effect
By Jerry White, 29 March 2013
Powerful financial interests are using Detroit as a test case for imposing deeply unpopular measures in line with what is occurring in Cyprus, Greece and other European countries.
Protest against school closures in Chicago
Teachers union seeks to channel opposition behind Democratic Party
By Jeff Lusanne and Shane Feratu, 29 March 2013
The school closure plan—one of the largest in US history—is the direct outcome of the CTU's betrayal of the teachers strike.
US sequester cuts and the fraud of “political gridlock”
By Andre Damon, 27 March 2013
The Democrats’ passage of a bill that makes the US sequester cuts permanent this year underscores their support for slashing social spending.
Increasing number of US seniors living in poverty
By Niles Williamson, 26 March 2013
Many elderly Americans are being forced out of retirement or are working well into their retirement years to cover their debts, living expenses, and health care needs.
US Senate budget proposes $975 billion in spending cuts
By Kate Randall, 25 March 2013
The Democratic proposal contains $975 billion in spending cuts, including $275 billion in new cuts to Medicare and Medicaid.
US “sequester” cuts shut 149 air traffic control towers
By David Brown, 25 March 2013
Sequester cuts are forcing the closure of 149 air traffic control towers in mid-sized airports.
Detroit Democratic politicans promote racial politics over emergency manager
By Larry Porter and Bryan Dyne, 25 March 2013
Detroit’s City Council and union bureaucrats declared that the financial takeover of the city was racist, even though the emergency manager himself is black.
Eastern Kentucky hospital workers authorize strike
By Naomi Spencer, 25 March 2013
Some 2,200 health care workers at hospitals in the Appalachian region could strike by April 1.
Detroit Water and Sewerage Workers denounce contract
By a WSWS reporting team, 23 March 2013
The six-year sellout agreement is aimed at locking in place the automatic deduction of union dues from workers’ paychecks.
US retailer J.C. Penney cut 43,000 jobs last year
By Naomi Spencer, 23 March 2013
A financial filing revealed that the department store chain quietly cut 27 percent of its workforce last year.
US corporate executives cash in
By Andre Damon, 22 March 2013
As the US government prepares to furlough one million federal workers and slash tens of billions in social spending, corporate executives in the United States are taking some of the highest payouts in history.
US Senate budget bill makes sequester cuts permanent
By Andre Damon, 21 March 2013
The US Senate passed a “continuing resolution” bill to fund the US government through September, while paving the way for the implementation of furloughs for about 1 million federal government employees.
D.C. Fire Department investigation highlights underfunding
By Adam Sagitov and Nick Barrickman, 21 March 2013
An audit by the emergency worker’s union exposed yet another attempt by the city government to undercut safety funding.
US retirement confidence at 23-year low
By Kate Randall, 20 March 2013
Confidence in a secure retirement is at a 23-year low in the US, as workers struggling to pay for basic necessities are unable to put aside adequate savings.
Massachusetts: One state through the sequester lens
By John Marion, 20 March 2013
The sequester cuts will hit research jobs as well as a wide range of social welfare programs.
Kodak ends retiree benefits to emerge from bankruptcy
By Steve Filips, 20 March 2013
For nearly 63,000 people covered under the Kodak pension plan, the company's plan to survive bankruptcy means an uncertain future.
US funding bill to make sequester cuts permanent
Hundreds of thousands face unpaid furloughs
By Andre Damon, 19 March 2013
As the US government prepares to furlough hundreds of thousands of federal employees, Congress is moving to make $1.2 trillion in spending cuts implemented under the sequester process permanent.
JPMorgan and the criminalization of the US ruling class
By Barry Grey, 18 March 2013
The financial malefactors have been rewarded with ever greater public funds to subsidize record profits, executive bonuses and stock prices
Detroit’s emergency manager: Who is Kevyn Orr?
By Shannon Jones, 16 March 2013
Detroit’s new emergency manager is a ruthless defender of corporate interests
Obama renews calls for slashing Medicare, Social Security
By Andre Damon, 16 March 2013
President Obama continued his closed-door meetings with congressional leaders, calling for deep cuts to the core social programs, Medicare and Social Security.
Senate report documents fraud and lawbreaking by JPMorgan Chase
By Barry Grey, 16 March 2013
The report demonstrates that nothing has changed on Wall Street since the financial meltdown that was triggered by rampant speculation and illegality on the part of the banks.
US sequester cuts target jobs, vital social services
By Kate Randall, 15 March 2013
The sequester will result in hundreds of thousands of layoffs, benefit cuts to the long-term unemployed, cuts to nutrition and mental health services, and reduced funding for research, disease prevention and national parks.
US budget debate targets Social Security and Medicare
By Andre Damon, 14 March 2013
While the media is once again seeking to create the appearance of deep and fundamental conflicts—with endless talk of congressional “gridlock” and the “partisan divide”—there has never been greater bipartisan agreement on basic policy.
Obama calls for deeper cuts as Republicans, Democrats propose budget plans
By Andre Damon, 13 March 2013
Less than two weeks after the start of $1.2 trillion in budget cuts, President Obama has pressed Democrats to agree to far deeper cuts in social programs, including Medicare and Medicaid.
Detroit workers denounce threat to impose emergency manager
By Usman Clemens, 13 March 2013
There is growing anger among workers and youth over Michigan governor Rick Snyder’s impending appointment of an emergency manager over the city
Too big to jail
By Joseph Kishore, 12 March 2013
At a Senate Judiciary Committee last week, US Attorney General Eric Holder declared that major financial institutions engaged in criminal activity are too big to prosecute.
Wall Street turns profit in student loan debt
By Nancy Hanover, 11 March 2013
Student loan debt securities are in hot demand from investors, as student debt levels reach new highs. Sequester cuts will add to the burden.
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