In-House Counsel Peer Community

Corporate Governance and Workers: Why Today’s Economy Fails Working Families—and What To Do About It

The economic headlines are chock full of soaring corporate profits, booming CEO pay, and record share buybacks. Yet, America’s working families and communities are struggling to get by since wages and family wealth have barely budged after decades of stagnation. This is a dangerous situation, as the deep imbalances in how the U.S. economy works—and whom it fails to work well for—increasingly expose America to social and political division. This issue brief explores why companies share their benefits overwhelmingly with those at the top, leaving little for working families. It discusses why this is the case and what can be done to shift corporate accountability and governance so that economic growth is genuine, lasting, and more equitably shared with working families.

Harassment, Accountability, and the Erosion of Judicial Legitimacy

In order to counter the diminishing perception of its legitimacy, the judiciary must address issues of sexual harassment in the workplace and repair its reputation of impartiality. Effectively tackling sexual harassment requires expanding and mandating training for all judicial actors—including judges, clerks, and judicial staff—as well as establishing a confidential system that allows individuals to report sexual harassment anonymously. Prioritizing increased diversity of judges, establishing mandatory reporting mechanisms for judicial staff and judges who learn about issues of sexual harassment, and strengthening judicial ethics requirements and enforcement mechanisms in order to hold judges accountable for their misconduct are all also critical to improving the situation. Ultimately, enhancing public confidence in the judicial branch and redeeming judicial legitimacy is an ongoing process, but taking the necessary steps to combat the lack of accountability is imperative to the successful function of America’s courts.

Bold Democracy Reforms That Build on H.R. 1

This page will be updated with new policy proposals. This page was last updated on April 10, 2019. The health of our democracy is at a critical inflection point. Americans are demanding far-reaching solutions to return power to the people—and federal lawmakers are beginning to act to do so. Americans believe that political corruption in Washington, D.C., is widespread; that elected officials are not responsive to their needs; and that their voting rights are under concerted attack. With trust in government near all-time lows, Americans want anti-corruption and clean election reforms that will make democracy more accountable to everyday people instead of wealthy special interests and corporations. In response to voters’ demands for reform, on March 8, 2019, the House of Representatives passed the historic “For the People Act” (H.R. 1), and the Senate, shortly thereafter, filed its companion bill. This once-in-a-generation legislation is replete with solutions to help curb the culture of corruption and empower voters. But there are additional game-changing policies—beyond H.R. 1—that merit action from lawmakers.

Dream/TPS: Cities and Counties Stand to Benefit From the American Dream and Promise Act

While the Trump administration works to restrict immigration to the United States, local elected leaders have stepped up in support of immigrant residents and their families. From setting up legal defense funds that provide representation to immigrants in deportation proceedings to creating immigrant affairs offices that serve as resources to foreign-born residents, they are addressing the on-the-ground reality of governing for all their constituents. Recognizing immigrants’ importance to their communities, more than 175 local elected officials, representing cities and counties of all sizes, have joined the Cities for Action coalition. In its work, the coalition advocates for the federal government to adopt policies supporting immigrants and their families at the national level. H.R. 6, the American Dream and Promise Act, is an example of such a policy. The bill would put certain immigrants—Dreamers, including Deferred Action for Childhood Arrivals (DACA) recipients, as well as those eligible for Temporary Protected Status (TPS) and Deferred Enforced Departure (DED)—on a pathway to citizenship. Many of these immigrants have lived a large proportion of their lives in the United States under some sort of protected status before the Trump administration took office. Dreamers, for example, about one-third of whom remain protected under the DACA program, came to the United States when they were 8 years old, on average, while those eligible for TPS and DED have, on average, lived in the United States since 1997. This column highlights data from the 25 cities and counties with the largest numbers of immigrants eligible for protection under H.R. 6.

Excess Administrative Costs Burden the U.S. Health Care System

This issue brief provides an overview of administrative expenditures in the U.S. health care system. It first explains the components of administrative costs and then presents estimates of the administrative costs borne by payers and providers. Finally, the issue brief describes how the United States can lower administrative costs through comprehensive reforms and incremental changes to its health care system. Many of the universal health care plans being discussed to expand coverage and lower costs would lower administrative costs through rate regulation, global budgeting, or simplifying the number of payers. Each of these financing changes deserves consideration—even in the absence of major systemwide reform.

Equal Pay Is Fundamental for Women’s Success in the New Economy

In recent months, opponents of strengthening equal pay protections have parroted a common refrain from the Trump administration and its supporters by focusing on the fact that women gained 58 percent—or roughly 1.5 million—of all new private sector jobs created in 2018. They tout this singular piece of data as evidence that the economy must be working well for women and their wages. However, this talking point obscures and oversimplifies the diverse experiences of working women—particularly women of color—and ignores why equal pay is so critical to women’s economic progress. Women’s full participation in the economy is indeed vital to U.S. economic growth and gender equality. Yet women must also have access to quality, well-paying jobs in which they have a fair chance in order to succeed and maximize their contributions to their families and the economy.

Budgeting the Future

This report seeks to lay out guideposts for fiscal policy to help Congress and future administrations evaluate the choices they make going forward and better accomplish the goals of meeting today’s national challenges in a financially responsible way for the future. Findings include: (1) Different choices on spending and taxes than those made in the past can substantially increase the chances for faster growth and less inequality. The evidence shows that a country’s ability to manage deficits and debt are greater when the money is spent on things that will reliably and sustainably boost economic growth, such as more infrastructure spending, education, and social insurance to reduce inequality. (2) Current debt levels largely reflect wasted resources in the past and, to that extent, pose drag on the economy, because tax cuts in recent decades predictably did not translate into faster growth and higher wages. In fact, long-term growth did not accelerate while income inequality remained high because of the tax cuts. Existing debt levels simply as a stand-alone matter pose manageable challenges. The government has the room to increase spending and reform taxes while putting a lower priority on deficit reduction, provided those investments are made in the smart way outlined herein. The bottom line is that addressing this country’s national challenges today and securing its fiscal future tomorrow can be done through a coordinated approach to spending, tax revenue, and borrowing that ensures a more competitive, inclusive economy in the most expedient and effective way possible. The economic research, summarized in this report, shows how this is doable.

Resources on H.R. 6, the Dream and Promise Act

On March 12, Reps. Lucille Roybal-Allard (D-CA), Nydia Velázquez (D-NY), and Yvette Clarke (D-NY), alongside House Democratic leadership, introduced H.R. 6, or the Dream and Promise Act. H.R. 6 provides permanent status and a pathway to citizenship for Dreamers, Temporary Protected Status (TPS) holders, and Deferred Enforced Departure (DED) recipients who have had their lives thrown into limbo because of the actions of the Trump administration. The average TPS recipient has lived in the United States for 22 years, the vast majority of that time in lawful status, while the average Dreamer potentially eligible for protection came to the United States at age 8. It is well past time for Congress to pass permanent protections for these individuals, as well as for their families and communities. The webpage includes the Center for American Progress’ top resources on the demographics of Dreamers and DACA recipients, TPS holders, and DED beneficiaries who could be eligible for permanent legal status and a pathway to citizenship under the Dream and Promise Act.

Bernhardt Is Making It Harder for Environmental Watchdogs to Hold Interior Accountable

Interior Secretary Bernhardt appears to be following in former EPA Administrator Pruitt’s footsteps by catering to conservatives who don’t want citizens and public interest groups to act as an effective government watchdog. Congress shouldn’t be swayed by Bernhardt’s false narrative and should uphold the EAJA—a key law that continues to demonstrate its many benefits, which include empowering Americans to get the government to do the job that the law requires it to do.

Advancing Racial Equity in Career and Technical Education Enrollment

On July 31, 2018, the Strengthening Career and Technical Education for the 21st Century Act (Perkins V) was signed into law, giving state leaders a new opportunity to improve career and technical education (CTE) programs. High-quality CTE programs offer rigorous academic content alongside technical courses in specific occupations as well as hands-on learning experiences. However, these programs cannot only be available in the best-resourced schools. They must be available in schools that serve primarily historically disadvantaged students, designed so that these students have the skills and experience to participate in the high-wage jobs that comprise the future of the workforce. In doing so, they help prepare students for the future, allowing them greater flexibility to pursue career opportunities after high school. CTE courses are considered electives in most schools. Thus, racial disparities and opportunity gaps in access to and completion of these programs show the need for CTE programs that reflect the demands of their communities and align with fast-growing and high-paying careers of the future. Perkins V adds flexibility for states to address the specific needs of students, schools, and employers by requiring applicants to create program performance objectives and local needs assessments and by encouraging states to better align CTE programs with local employment needs. In order to take full advantage of CTE programs, however, states must create objectives that address racial inequities in access and participation. High-quality CTE programs should address this alignment and be designed with equity in access and opportunity as a central goal.

How to Create a Durable U.S.-South Korea Alliance: Finding Common Ground Among Progressives

The United States and South Korea have a close, long-standing alliance. However, as with many alliances, there exist inherent tensions and various ups and downs. More often than not, the most contentious disagreements between the two countries are heightened when progressives are in power in Seoul, no matter which political party is in power in Washington, D.C. Understanding why this is the case and whether more can be done to improve the United States’ relationship with South Korean progressives is an important step toward building an alliance that can weather political changes and policy disagreements. There is space for progressives in both countries to find common ground so that the alliance can more effectively deal with pressing political issues. This report focuses on issues in the foreign policy sphere, including North Korea’s nuclear weapons program and a rising China, as well as the issue of trade between South Korea and the United States.

States Must Act to Protect Workers From Exploitative Noncompete and No-Poach Agreements

Despite years of economic growth, many Americans’ pay has not improved. Since the Great Recession, overall wage growth has only slightly outpaced inflation, and the earnings of African Americans have still not recovered. Meanwhile, business startup rates are falling across all industries, and many economists argue that this decline is dragging down U.S. innovation and productivity growth. As a result, policymakers across the United States are interested in reforms to boost worker pay, increase job mobility, and enable Americans to start their own companies. In particular, state lawmakers are debating actions to protect workers from restrictive employment contracts that keep them locked in jobs they do not want but cannot leave.

3 of Trump’s Regulatory Rollbacks Could Cost People Almost $42 Billion a Year

This piece is an update to a column released earlier this year. Every economy has rules of the road that help determine who benefits and who does not. Through its regulatory and lawmaking powers, the federal government has the ability to set those rules. Unfortunately, the Trump administration has used this power to further bias the system against everyday Americans, making it that much harder for them to get ahead. Since coming to office, the administration has attacked commonsense regulations that ensure that workers get paid for the hours they work; that their retirement is secure; and that the costs of the goods upon which they rely are affordable.

Harnessing State Child Tax Credits Will Dramatically Reduce Child Poverty

When it comes to a child’s formative years of life, research shows that every dollar counts—and modest assistance pays dividends far into the child’s future. State CTCs have the potential to dramatically increase economic security, reduce child poverty, and help families afford the rising costs of raising children. At the same time, states CTCs can reduce the tendency of many states’ tax systems to exacerbate inequality and offset the unequal and even damaging effects that the 2017 federal tax law had on low- and middle-income families. States can take action now—and they don’t need to wait for Congress.