Kevin Drum

Wage Rules for Foreign Workers -- A Followup

| Sun Mar. 24, 2013 4:02 PM PDT

Yesterday I wrote about a dispute over wage rules for foreign workers that's delaying the Gang of 8 from producing a draft immigration bill. I've now learned a bit more about this, thanks to Daniel Costa of EPI, and wanted to pass along a few further details.

This wasn't clear to me from the original LA Times article I read, but apparently this dispute is over an expansion of the current H-2B visa program for seasonal guest workers. These workers are already required to be paid the local prevailing wage, and one option for calculating this is a four-tier wage structure tied to skill levels. For example, here are the rates for landscapers in Baltimore:

  • Level 1 Wage: $9.01 hour
  • Level 2 Wage: $10.60 hour
  • Level 3 Wage: $12.20 hour
  • Level 4 Wage: $13.79 hour

The AFL-CIO has long wanted to ditch the four-tier structure and move to a single wage based on the local average. Employers have opposed this for just as long. A couple of years ago, in response to a court order, the Department of Labor issued a new rule that eliminated the four-tier structure and instead relied on a single mean wage (usually equivalent to the Level 3 wage), but Congress has blocked it from being implemented.

So the current dispute is really nothing new. Employers are eager for the H2-B program to be expanded to include nonseasonal jobs. However, there's little evidence of a labor shortage in the occupations likely to be most affected, which means an influx of new workers would probably drive down wages. As its price for going along with this, the AFL-CIO wants to set the prevailing wage at the mean level once and for all. The Chamber of Commerce is opposed because most guest workers are currently certified at the Level 1 wage, so the new rule would mean they'd have to start paying higher wages.

When I wrote about this yesterday, I suggested that the AFL-CIO proposal represented a "complicated new set of wage rules for the private sector," and obviously that's not the case. It would actually be simpler than the current rule.

I also suggested that the politics of this was difficult because it requires all guest workers be paid the average prevailing wage. Since some American workers are obviously paid less than average, this would, in effect, mean mandating higher wages for foreign workers than for (some) U.S. citizens. This is still arguably the case, though the political dynamics are obviously a little complicated.

So that's that. This isn't a topic I'm likely to spend a ton of time on, but since I wrote about it yesterday I wanted to follow up today now that I know more about it.

Advertise on MotherJones.com

Judge Limits Fair Use, But Only Slightly

| Sun Mar. 24, 2013 2:31 PM PDT

Last week AP won a court case against Meltwater, a company that allows organizations to keep track of where and how they're mentioned in the press. Meltwater provides its clients with the headline and a few snippets from each article that mentions them, and contends that this is fair use. AP argued that it isn't, and asked Meltwater to pay a license fee for using AP's content. James Joyner isn't impressed:

Now, this strikes me as silly. Meltwater is in no ways a rival news service. It’s not a news service at all. It’s a way for an organization to keep track of its coverage in the world press.

The think tank that employs me tried out Meltwater’s service some time back. I don’t know whether we ultimately signed up as a client; the rates were exorbitant. But it was a way, far more efficiently than possible through Google News or even Lexus-Nexis, to keep track of the mentions of the organization, its CEO, and other key stakeholders. In addition to the snippets, which I doubt we used all that much, there were various analytics and graphing packages.

While AP and NYT content was certainly included, this is in no way competitive with what they do....That is, unless the only reason you would read AP content was to find out what AP was saying about you or your business, Meltwater was not competition for AP.

Actually, this isn't as silly as it sounds. What James is describing is a clipping service, and organizations have used clipping services for decades to keep track of who's mentioning them. But here's the thing: clipping services pay a license fee to the news organizations they clip articles from. These days, it's mostly done via a central clearinghouse, but the fees are paid. Meltwater doesn't do this.

On the other hand, unlike a traditional clipping service, Meltwater isn't giving its clients full clips. Just a headline and a few paragraphs.

On the third hand, Meltwater describes itself as a clipping service. In court, Meltwater tried to argue that they're really a search engine that provides a "transformative function" on the clips in question, but the judge didn't buy it:

Just as a news clipping service should do, Meltwater systematically provides its subscribers with what in most instances will be the essence of the AP article relevant to that reader. And again, despite the obvious point of comparison given its characterization of itself as a search engine, Meltwater does not attempt to show that the extent of its taking from the copyrighted articles is no greater than that customarily done by search engines. AP, in contrast, has offered evidence that Google News Alerts do not systematically include an article’s lede and are — on average — half the length of Meltwater’s excerpts.

....Based on the undisputed facts in this record, Meltwater provides the online equivalent to the traditional news clipping service. Indeed, Meltwater has described itself as adding “game-changing technology for the traditional press clipping market.” There is nothing transformative about that function.

If Meltwater is a specialized search engine, it doesn't need to pay licensing fees. If it's a clipping service—even an electronic one—it does, just like clipping services have always done. That's mainly what this case is about. If this ruling stands up, it will indeed narrow the scope of fair use, but it's a pretty small and specialized bit of narrowing, applied solely to a for-profit enterprise in a very specific niche market. It probably doesn't mean much to the rest of us.

Bonus Sunday Catblogging - 24 March 2013

| Sun Mar. 24, 2013 6:45 AM PDT

On Friday I showed you a picture of my mother's cat, Tillamook. But a funny thing happened while I was snapping his picture: he suddenly got shy and decided to go hide under a car. I followed him, zoomed in, and took a few pictures, not figuring they'd be worth anything. Oddly enough, though, they turned out quite spectacularly. And one of them in particular reminded me of a very famous picture. Enjoy.

Actually, the Iraq War Has Had a Surprisingly Small Effect on American Politics

| Sat Mar. 23, 2013 9:38 PM PDT

Ross Douthat argues that the Iraq War was the undoing of the Republican Party.

The Bush White House’s “compassionate conservatism” was the last major Republican attempt to claim the political center — to balance traditional conservative goals on taxes and entitlement reform with more bipartisan appeals on education, health care, immigration and poverty.

....But once Bush’s foreign policy credibility collapsed, his domestic political capital collapsed as well: moderates stopped working with him, conservatives rebelled, and the White House’s planned second-term agenda — Social Security reform, tax and health care reform, immigration overhaul — never happened.

Boy, I sure don't see this. Social Security reform was never going to happen, period. Democrats were unwaveringly opposed from the start, and would have been under any circumstances. Likewise, although it's true that immigration reform was sabotaged by a conservative rebellion, there's little reason to think it had anything to do with the war. It was a grassroots revolt from a party base that had always hated the idea. As for tax and healthcare reform, I don't remember those even being on the table. There was never any serious push for healthcare reform—or any expression of interest from the Bush administration—and tax reform was more a vague wish than a serious proposal.

The mundane truth is that presidents rarely accomplish big things domestically in their second terms. And to the extent they have, they've done it under worse circumstances than Bush: LBJ had Vietnam, Nixon had Watergate, Reagan had Iran-Contra, and Clinton had Monica Lewinsky. The Iraq War may have played a part in Bush's second-term collapse, but his domestic failures were due far more to scandal, political miscalculation, and garden variety weariness than to the war—and Obama's win in 2008 was due to all those things plus an epic financial collapse. His margin of victory was pretty much exactly what you'd expect given a lousy economy and eight years of his party being out of office.

Douthat's followup is even harder to credit:

This collapse, and the Republican Party’s failure to recover from it, enabled the Democrats to not only seize the center but push it leftward....Nor is it a coincidence that these liberal policy victories have been accompanied by liberal gains in the culture wars. True, there’s no necessary connection between the Bush administration’s Iraq floundering and, say, the right’s setbacks in the gay-marriage debate. But cultural change is a complicated thing, built on narratives and symbols and intuitive leaps.

As The American Conservative’s Dan McCarthy noted in a shrewd essay, the Vietnam War helped entrench a narrative in which liberal social movements were associated with defeat in Indochina — and this association didn’t have to be perfectly fair to be politically and culturally potent.

In a similar way, even though Donald Rumsfeld and Dick Cheney weren’t culture warriors or evangelical Christians, in the popular imagination their legacy of incompetence has become a reason to reject social conservatism as well.

I don't get this at all. Social liberalism proceeded apace all through the 70s, 80s, and 90s. The failure in Vietnam did nothing to slow it down at all. And the aughts were a mixed bag. Abortion and gun rights, for example, stayed stuck in the same rut they'd been in for years. Gay rights advanced, but that was just the continuation of a long-term trend. I'm hard put to give Iraq credit for any of this.

There's no question that the Iraq War debacle was one entry on the bill of particulars against the Republican Party in 2008. But take a look at what's happened since then. Obama has all but adopted Bush's foreign policy as his own: he launched a war against Libya; escalated the war in Afghanistan; enormously expanded the use of drone attacks; and embraced virtually all of the worst aspects of Bush's national security policy. But on the domestic side, he passed a big stimulus bill; repealed DADT; passed financial reform; and enacted a historic healthcare reform bill.

To believe that Iraq was responsible for this, you have to adopt the perverse view that a huge foreign policy failure was responsible for (a) a continuation of that very foreign policy, but (b) a repudiation of Bush's completely unrelated domestic policy. That doesn't strike me as very plausible. Unfortunately the evidence suggests just the opposite: on a wide variety of measures, the effect of the Iraq War has actually been startlingly modest. It played no more than a bit role in ushering us into the Obama Era.

Wage Rules Are Delaying Immigration Reform

| Sat Mar. 23, 2013 12:38 PM PDT

The LA Times summarizes one of the disputes that's delaying the Gang of 8 from producing a draft immigration bill:

One rough patch this week was a disagreement over how much immigrants should be paid under a proposed new visa category for entry-level jobs such as dishwashers, housekeepers and janitors. Negotiators for the AFL-CIO and the U.S. Chamber of Commerce [...] couldn't agree whether foreign workers should be paid the same wages as Americans.

The chamber argued that foreign workers should be subject to federal minimum wage law and that they should not be paid more than Americans. The AFL-CIO wanted the minimum wage for different job categories to be indexed off the median wage, saying that would produce more competitive wages for American workers.

I get why the AFL-CIO is doing this. They're afraid that higher immigration quotas will increase the supply of low-wage workers and therefore reduce overall pay in low-wage industries. So they want a complicated system designed to insure that immigrant workers will be paid as much as existing workers.

But I'm having a hard time taking the union's side of this. First, simpler is better. If you want to create a complicated new set of wage rules for the private sector, you'd better have a really good reason. I'm not sure what it is in this case, since the bulk of the evidence suggests that immigrants don't compete for the same jobs as native workers. Second, the politics of this is just impossible. The AFL-CIO wants members of Congress to vote for a bill that mandates higher wages for immigrants than for U.S. citizens? The attack ads practically write themselves.

If you think that higher immigration quotas will drive down wages in low-paid industries, that's a good reason to oppose immigration reform. But if you're basically in favor of immigration reform, trying to micromanage the wage effects seems (a) impractical and (b) politically toxic. It would encourage massive cheating and game playing, increase paperwork and enforcement, and be wildly unpopular. I just don't see how this works.

But maybe I'm missing something. Comments?

Advertise on MotherJones.com

Friday Cat Blogging - 22 March 2013

| Fri Mar. 22, 2013 11:58 AM PDT

Happy vernal equinox! Sure, I'm a couple of days late, but that's cat time for you. They live on their own clock.

Today, I'm giving Domino a break from the rigors of weekly catblogging and highlighting my mother's cats instead. On the left is Ditto (named, as you might recall, because when he was a kitten he looked just like one of my mother's other cats). On the right is his brother Tillamook, whose naming origin should be fairly obvious. These pictures were taken last weekend, but obviously both of them were looking forward to spring even then.

The Republican Party Might Not Be Quite Dead Yet

| Fri Mar. 22, 2013 11:50 AM PDT

Andrew Kohut, former president of the Pew Research Center, says the Republican Party is in deep trouble:

In my decades of polling, I recall only one moment when a party had been driven as far from the center as the Republican Party has been today....The Republican Party’s ratings now stand at a 20-year low, with just 33 percent of the public holding a favorable view of the party and 58 percent judging it unfavorably.

....While members of the Republican and Democratic parties have become more conservative and liberal, respectively, a bloc of doctrinaire, across-the-board conservatives has become a dominant force on the right....The party’s base is increasingly dominated by a highly energized bloc of voters with extremely conservative positions on nearly all issues.

....I see little reason to believe that the staunch conservative bloc will wither away or splinter; it will remain a dominant force in the GOP and on the national stage. At the same time, however, I see no indication that its ideas about policy, governance and social issues will gain new adherents. They are far beyond the mainstream.

Any Republican efforts at reinvention face this dilemma: While staunch conservatives help keep GOP lawmakers in office, they also help keep the party out of the White House. Quite simply, the Republican Party has to appeal to a broader cross section of the electorate to succeed in presidential elections.

This has practically reached the status of conventional wisdom these days. Republicans are doomed because they don't appeal to the young, or to Hispanics, or to women, or whatever. Their core base of pissed-off white guys is shrinking, and they're inevitably going to shrink along with it. 

That makes sense to me. And yet....there's something about it that doesn't quite add up. Republicans control the House, and no one seems to think that's going to change in the near future. (And no, it's not just because of gerrymandering.) On the other side of Capitol Hill, Democrats seem genuinely concerned about holding onto the Senate next year. As for the White House, Republicans have only lost two presidential elections in a row, both times in years where the fundamentals favored Democrats. And they continue to hold outsize majorities in state legislatures and governor's mansions.

These don't seem like the markers of a party so far outside the mainstream that they're doomed to extinction. Frankly, they seem to be holding on fairly well.

I agree that the Republican Party has some long-term demographic problems that are pretty serious. Nevertheless, it's not clear to me that the American public is ready to throw them overboard. Or, perhaps more accurately, the American public has so far shown little inclination to throw them overboard when their only alternative is the Democratic Party.

This stuff deserves a little deeper look than we've been giving it. The GOP has been steadily moving right for more than 30 years now, and even though it always seems like one more step should make them electorally toxic once and for all, it never does. This time we're convinced once again that they've finally taken that final, fatal step, but have they? I feel like there's more to this story.

Is This the Quote of the Day?

| Fri Mar. 22, 2013 11:09 AM PDT

Here is John Boehner, explaining the Republican plan for negotiating over the upcoming debt ceiling:

I'm not going to risk the full faith and credit of the federal government.

Steve Benen suggests this is a "game over" moment. Sure, Boehner claims that Republicans will raise the debt ceiling only in exchange for big cuts in entitlements, but that's an empty threat if he's serious about not risking America's credit rating. So that means there won't be a big fight over the debt ceiling.

Maybe. Or maybe this is just boilerplate from Boehner and doesn't mean much of anything. I'm not sure. But I agree that Boehner can't have it both ways. Either he's going to insist on dollar-for-dollar entitlement cuts or he's going to back off from debt ceiling hostage taking. He can't do both.

And while we're on the subject, I'd still like to see just what entitlement cuts Boehner and his caucus want. They like to yak about this stuff endlessly, but they sure seem to clam up mighty quick when you ask for actual details.

Newt Gingrich Makes an Elaborate Historical Argument

| Fri Mar. 22, 2013 10:30 AM PDT

Ed Kilgore points to an intriguing Joshua Green story in BusinessWeek today: at a point during the Republican primary when Mitt Romney was struggling, Newt Gingrich and Rick Santorum had serious talks about creating a unity ticket:

The negotiations quickly intensified. “We had a series of closed-door meetings about it,” Conway says. Conway, Walker, and Randy Evans represented Team Gingrich; Brabender spoke for Santorum. “Initially, it was through staff,” Conway says. “Then Rick and Newt did talk by phone for quite awhile.”

Finally, the two candidates spoke face-to-face at an energy forum just before the [Michigan] primary. Gingrich made an elaborate historical argument that....

Hey! Why did I cut off the story? Newt Gingrich made an elaborate historical argument for what? That they should run on a platform of abolishing the Fed? Building alligator-filled moats along the Mexican border? Blasting North Korea to bits with a space-based laser? Paying off the national debt with natural gas royalties?

Not quite. It turns out that Gingrich made an elaborate historical argument for....why Newt Gingrich should head the ticket, with Santorum settling for veep. I'll bet you wish you could have been a fly on the wall for that little lecture, don't you?

This is all sort of fascinating, in a train-wreck kind of way, and I'm glad Green wrote about it. But can I just say that, no, Gingrich and Santorum never really came close to making a deal. The question of who gets to be president and who gets to be VP is the only real question in negotiations like this. If they were arguing about that, they hadn't even gotten started.