By Les Leopold / Original to ScheerPost
When I recently learned that Senator Sherrod Brown (D, OH) had reissued his 2019 essay, called “Wall Street’s War on Workers: Stock Buybacks,” I was shocked. My new book is called Wall Street’s War on Workers, and also focuses in part on the job-destructive impact of stock buybacks.
Who stole what from whom?
Senator Brown didn’t know about my book, his essay was written before I started my book, and despite deep research I did not see his essay until two weeks ago. So, I was surprised, but I immediately understood why we both adopted the same big picture framework to understand the economy, and similar language to share our understanding with working people.
As a labor educator, I’ve found that the big-picture framework is as important, maybe even more important, than facts and figures. In our complex world, problems hit working people from all angles — job insecurity, job loss, the high costs of housing, discrimination, kids who can’t afford to move out, and on and on. To make sense of this mosaic, a framework helps hold the pieces together. In our educational program we see clearly that working people are hungry for a coherent explanation that connects the dots. And without a compelling alternative, the pressing need for frameworks can lead towards conspiracy theories.
Brown and I are using the Wall Street War on Workers big picture framework for four reasons.
- It’s flat out true. Wall Street’s insatiable desire to extract wealth via stock buybacks, leveraged buyouts, hostile takeovers, and the like, are destroying the livelihoods and the well-being of thousands of working people each day in every sector of the economy.
- The framework rings true to working people. It’s understandable. It makes sense of their reality. It explains why they, and so many others around them, have gone from one mass layoff to the other. And it explains why they feel so strongly that the system is rigged against them.
- The framework breaks through fatalism. The dominant media explanation is that mass layoffs can’t be helped because technological change and globalization are unstoppable forces akin to natural laws. Wall Street’s War on Workers highlights human agency. Laws and regulations were changed to enable Wall Street to kill jobs at will for reasons that have nothing to do with new technology or trade. In the high-tech sector, for example, more than 260,000 workers experienced mass layoffs last year, and another 50,000 are gone so far this year. Almost none of those jobs were lost either due to globalization or new technologies, AI or otherwise.
- It’s good politics. Senator Brown wouldn’t be pushing this framework in the middle of a tight reelection campaign unless he believed it could help him deepen his base of support among working people, especially in areas that became increasingly Republican over the past two presidential elections. It’s one thing for Bernie Sanders and Elizabeth Warren to take on Wall Street in their very liberal states. No one will defeat them. But Brown is using the anti-Wall Street frame to get reelected in Ohio, which has become solidly red. In our labor education courses, working people of all political persuasions find the anti-Wall Street framework very compelling.
Clearly, Brown does not believe that Ohio working people are fixated on anti-wokeness and blinded by racism, homophobia, xenophobia. He understands that working people of all shades and colors are much more interested in maintaining their livelihoods than railing against wokeism. My book provides compelling data that also shows increasing working-class liberalism, not illiberalism, on hot-button issues like immigration, gay rights, and racism. Ohio’s embrace of a constitutional amendment in 2023 that wrote abortion access into the state’s constitution confirms Brown’s intuitions and my findings.
It’s one thing, however, for a labor educator to use the “Wall Street’s War on Workers” framework. To keep my job, I don’t have to run against Wall Street’s cash. But Sherrod Brown is taking a risk, maybe a big risk. And he’s not running away from the challenge or being mealy-mouthed about how Wall Street is ripping off the working class.
His carefully documented essays show how big financial firms pressure corporations to hold down wages, please Wall Street through mass layoffs, and use stock buybacks to enrich Wall Street at the expense of working people. Recently, he has put out a statement called “Taking on Wall Street and Housing,” which has a great deal in common my February 28th newsletter, “Wall Street to Working-Class Homebuyers: Fuggeddaboutdit!”
Here are a few of Brown’s passages that highlight his (our!) big picture framework.
“Wall Street’s focus on wealth accumulation for the rich is often by explicit design and comes at the direct expense of American workers.”
“…Wall Street does not view the workers making burritos at Chipotle as real people with real families. It does not view pilots and flight attendants at American Airlines as important positions critical to the safety and functioning of our airlines. Instead, to Wall Street, all of these workers are merely a line in a company’s budget to be minimized in the short-term and the long-term.”
“Put simply, for the last several decades, companies have sought to please Wall Street so that their stock price will go up in the short-term. They know Wall Street analysts like it when…they lay off workers to show they’re serious about cutting expenses.
“These data tell us that for decades corporations were getting richer by laying off their workers. It’s still true today.”
“It’s no surprise that cost-cutting measures typically include layoffs but rarely if ever include scaling back executive compensation.”
“….They fired workers but somehow found the cash to buy back millions of dollars, sometimes billions of dollars, worth of their own shares. The coordinated timing of layoffs and buybacks isn’t a rare occurrence; it’s happening regularly throughout corporate America.”
“So next time you or someone you know loses a job at a profitable, publicly traded company, it’s possible the layoff was part of a cost-cutting measure to please Wall Street and to make CEO paychecks bigger.”
“Stock buybacks are one way publicly-traded corporations redirect money from workers to their shareholders.”
“Proponents of stock buybacks argue that companies purchase their own shares only after considering other value-creating investment options. That’s ridiculous. Are we truly out of good ideas? Are all of our factories as updated as they can be? Are all workers getting family-supporting wages and being fairly compensated for the profits they create?”
Why aren’t the Democrats learning more from Brown?
It seems like a no-brainer for the Democrats to use the Wall Street framework to reconnect to the working-class folks they have lost and are losing, In the research for my book, it became clear that about 15-20 million Republican and Republican-leaning white working-class voters are socially liberal. It is political malpractice to write them off.
A major part of the problem is that many Democrats believe there’s nothing much that can be done about mass layoffs – that layoffs are the inevitable result of the unstoppable forces of new technologies and global trade. It’s as if even liberal politicians don’t want to look too closely at how the deregulation of Wall Street, aided and abetted by both political parties since the 1980s, has enriched Wall Street at the expense of working people, and especially at the expense of job stability. It’s far easier to blame AI and the like.
Clearly, the effort to create new jobs via infrastructure bills is far less controversial. In those bills, the government provides major subsidies for corporations while opening up new job possibilities for working people. Win-win!
But those investments won’t stop the Wall Street-induced mass layoffs that are ripping through the economy each and every day. Nor are there any real brakes being placed on Wall Street’s use of job-destructive stock buybacks and leveraged buyouts to enrich the wealthy. Win-lose!
Unfortunately, there may also be baser motives at play. The richer Wall Street becomes, the more it can influence politics through donations and lobbying. Some politicians, it seems, also have their eyes out for lucrative jobs after leaving office as a Wall Street lobbyists or private equity/hedge fund operatives.
Upton Sinclair identified this problem as he ran for the governor of California in 1934. In his book, “I, Candidate for Governor: And How I Got Licked,” he famously wrote:
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
It’s hard for any of us to buck the conventional wisdom that downplays mass layoffs and extols billionaires. But Sherrod Brown is doing just that. If he beats the odds again in 2024 and wins, the Democratic Party should follow his lead.
For working people to gain the stable jobs and decent incomes they truly deserve, Wall Street needs to be reined in…and soon.
Les Leopold is the executive director of the Labor Institute and author of the new book, “Wall Street’s War on Workers: How Mass Layoffs and Greed Are Destroying the Working Class and What to Do About It.” (2024). Read more of his work on his Substack here.
By Zehra Imam / Mondoweiss
As Palestinians are slaughtered by the thousands in Gaza and violently attacked during night prayers in the al-Aqsa Mosque by Israel, the West Bank endures massacres that at times go unnoticed during this holy month. I have spent my Ramadan in conversation with a friend from Jenin.
Much has changed since I visited Aseel (not her real name) in August 2023. There are things I saw in Jenin that no longer exist. One of them is my friend’s smile and her spark.
Usually, they say Jenin is a small Gaza. During Ramadan, because the attacks generally happen at night, people are an easy target because they are on the streets late at night. In the past, it was rare for the IOF to enter during the day. Now, they attack during the day; their special forces enter, and after people discover them, their soldiers come within minutes.
Every 2-3 days, there is a new attack in Jenin. In our minds, there is a constant ringing that the IOF may come. We don’t know at what time we will be targeted or when they will enter. There is no stability in our lives.
Even when we plan for something, we hedge it with our inshallahs and laugh. There are a lot of ifs. If they don’t enter the camp. If there are no martyrs. If there is no strike.
On the second day of Ramadan, they attacked my neighborhood again. We thought it was a bombing because it started with an explosion, but the house was shaking. We were praying fajr, and everyone was screaming outside. The sound of the drone was in our ears. “No, these are missiles,” we realized.
There was panic in the streets. Women fainted. People had been walking back from praying at the mosque, and some were still in the street. Alhamdulillah, no one was hurt, we say.
The balcony to the room at my uncle’s house where we slept had fallen. It no longer had any glass, and a bullet entered my uncle’s bedroom and reached the kitchen. The drone hit the trees in front of our house. The missiles destroyed the ceiling, and the rockets reached my neighbor’s house on the first floor, exactly in front of our house.
Since October 7, Jenin has become a target. There is a clear escalation in the camp and the city. The IOF has used many different weapons to kill us here. They have even been aggressive toward the infrastructure, as though every inch of our city was resisting them.
They destroyed much of the camp, and there is no entrance now. The arch is gone, and there is no sign reminding us that Jenin refugee camp is a temporary place. There is no horse. Only the street is left. You have the photographs. You were lucky. They changed the shape of the camp, and everything has been destroyed.”Aseel
The first time Aseel and I met in person was in Nablus at the Martyrs Roundabout. As we caught up, we ate a delicious concoction of ice cream, milk, nuts, and fresh fruit that was a perfect balm to the heat. She took me to some of her favorite places nestled within the old city of Nablus. A 150-year-old barber’s shop that felt like you had entered an antique store where plants reached the ceiling and where the barber was a massive fan of Angelina Jolie. A centuries-old house now called Tree House Cafe looked like a hobbit home from Lord of the Rings, where we hid away as she sipped her coffee and I drank a mint lemonade. We visited one of the oldest soap factories in the world with ingredients such as goat’s milk and olive oil, jasmine and pomegranates, even dates and Dead Sea mud.
We happened to chance upon a Sufi zawiya as we walked through a beautiful archway decorated with lanterns, light bulbs, and an assortment of potted plants, after which we saw a cobalt blue door on our left and an azul blue door with symmetrical red designs, and Quranic ayat like incantations on our right as doors upon doors greeted us.
The air was welcoming yet mingled with the memory of martyrs whose memorials took over the landscape, sometimes in the form of larger-than-life portraits surrounded by complex four-leafed magenta-white flowers; posters above a water spout next to a heart-shaped leaf; a melted motorcycle that, too, was targeted in the neighborhood that hosted the Lions’ Den. We stopped to pray at a masjid, quiet and carpeted.
After a bus ride from Nablus to Jenin, on our walk before entering Jenin camp, Aseel showed me the hospital right outside the camp. She pointed out the barricades created to keep the occupation forces from entering specific streets. This is the same hospital that the occupation forces blocked during the July 2023 attack, which now seems like a lifetime ago.
What caught my eyes again and again were the two Keys of Return on top of the entrance of Jenin Camp that symbolized so much for Palestinians.
“This is a temporary station,” Aseel read out loud to me. “That’s what it says. We are supposed to return to our homes.”
“Netanyahu said he is planning another big attack, so the resistance fighters are preparing because it can happen any day,” she had told me that evening as we shared Jenin-style knafeh, baked to perfection. Then she stopped, looked at the sky, and said humorously, “Ya Allah, hopefully not today!” And we both laughed because of its potential reality.
Dinner on the terrace at her uncle’s home was a delicious spread of hummus, laban, fries, cucumbers pickled by her aunt, and arayes — fried bread stuffed with meat. Then we moved the furniture to sleep on mattresses in a room that extended to the rooftop terrace with a breeze, overlooking Jenin Camp and the rest of Jenin City. We could hear gunshots in the distance. The drones were commonplace, and the heat did not relent. Temperatures soared, and the electricity was out when we woke up at 5 a.m. I heard her pray, and later, as we sipped on coffee and had wafters in the early morning at her home, my eyes went to a piece of tatreez, or embroidery, of a bird in flight framed on the wall. Her eyes followed mine and when I said I loved it.
“It used to be my grandfather’s,” she told me. “Of course it’s beautiful — the bird is free.”
Unexpectedly, Aseel’s mother gifted me a Sprite bottle full of olive oil beholding the sweet hues of its intact health, which I would later ship secretly from Bethlehem all the way to Boston. And then Aseel came to me with a gift, too: a necklace that spoke succinctly about the right to return and live on this earth. Mahmoud Darwish’s poetry was held together with intricate calligraphy carved in the shape of Palestine’s landscape, and I was completely overwhelmed.
“You are in Palestine, my dear,” she had smiled. “And you are now my family. This is your country, this is your second home, really.”
When I ask her about what brings her hope these days, Aseel tells me about her eight-year-old nephew.
He wanted to eat two meals. I told him that in Gaza they don’t have food. He was complaining about the food, and I told him, they don’t have water. And he heard me because he said, “today, we will only have one meal.”
I’m amazed at how mature he is. He even said, “We won’t make a special cake on Eid because of the Gazans.” For me, this is a lesson to be learned. He is only eight years old, but he knows.
We have lost a lot of people in Gaza, but here in the West Bank, we are succeeding because our new generation knows a lot. Ben Gurion would not be happy. He said of Palestinians, “the old will die and the young will forget.” No, the young ask even more questions. The new generation brings us hope. Hope is the new generation.
/sp
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Les Leopold
After graduating from Oberlin College and Princeton University’s School of Public and International Affairs, Les Leopold co-founded the Labor Institute in 1976, a nonprofit organization that designs research and educational programs on occupational safety and health, the environment, and economics for unions, worker centers, and community organizations. He continues to serve as executive director of the Labor Institute and is currently working to build a national economic educational train-the-trainer program with unions and community groups.