interviews
Labor and the White House
by Dave Weigel
March 31, 2021
This interview with Dave Weigel, national reporter covering politics for the Washington Post, was conducted and condensed by franknews and Payday Report.
DW | The White House's involvement in the Amazon union drive was a big surprise. I mean, we know where it could have originated, the union talked to the White House; they have kind of an open door with Biden that they didn't have with Trump. We know that Faiz Shakir, Bernie Sanders’ campaign chairman, and his group, Perfect Union, got involved. So, there was public pressure.
The fact that the White House and the president released that video was a big deal to people. And, he made this decision to get involved very early on in his presidency. It was within his first 50 days. He decided to do what hadn't been done before and give a message in support of the union. It was a very careful message. The new labor secretary, Marty Walsh, when asked specifically about Amazon, responded in more general tones.
But, no matter what happens, if you are in for a penny, you are in for a pound.
A lot of previous presidents, including Barack Obama, said a lot less about these union drives and, in doing so, limited their own exposure. If the drive didn't work, people didn't say that the president supported something that didn't work. The fact that Biden made a statement, early on, when it wasn't clear how this was going to go, is a real political statement of what they thought was important.
frank | How do you think his background plays a role in this?
He's always leaned in really hard and identified with workers in the same way he's tried to identify with different civil rights movements. Joe Biden has always wanted to be seen as the kind of person who is coming from Scranton, who has lived through the sixties, and who wants to jump to the front of the march if there is a struggle happening.
He frames everything in terms of fairness. He's not as natural as other members of the party in talking about this. When Bernie Sanders talks about this, for example, he talks about greed, he names CEOs, he says nobody deserves that much money, he talks about a maximum wage and how there should be no billionaires at all. Biden doesn't go that far. Biden has never gone after Jeff Bezos. He's never gone after individual heads of companies the way that Sanders does. He does this sort of a "Hey man, these guys are under assault, somebody needs to stick up for them."
That is something that he has always wanted to be part of his brand. Even when he was voting for trade deals like NAFTA as a Senator, he was never really comfortable. He had the same ideological mindset as a lot of the Democrats in the eighties and the nineties. He did it because he saw that that was the way things were moving and he voted strategically. But, the stuff that fired him up was when he could side with workers. It is the same thing with the projects he took on under Obama when he was Vice President.
During the Democratic primary, he didn't get the same amount of labor support that Hillary Clinton did, but, Sanders didn't get it either. There wasn't the same sort of a landslide of labor to get in early and say, this is our candidate. Instead, they were demanding more of the candidates.
I would cover presidential primary events with the Teamsters in Cedar Rapids or the Building Trades in DC and you would kind of look to the level of applause as an indicator. The interesting thing is that at those events Sanders would lay out the things he did and what he wanted to pass. Biden would go on at length about non-compete clauses and about wage theft and things like that. It was less, "I have studied all of the papers on this and I've decided this is my policy," and more of "this seems unfair and I'm against this thing."
I think the Democratic Party is increasingly understanding what labor can mean for them strategically.
Republicans have gotten kind of tangled up on labor. They have done better with union households, but they are basically the party of deregulation still. They've never really moved on the labor part of their messaging. That makes it easier for Biden to compete for these workers. When it comes down to it, Republicans want “right-to-work." Josh Hawley, who branded himself as a working-class candidate, for example, supports a national right-to-work.
Biden was very concerned with winning back more union households. Union workers were saying, “Democrats had the presidency for 16 years. What do they do for us?” Biden didn't have all the answers that labor wanted, but he was making a lot of specific promises about how he was going to act. He talked about infrastructure spending and about how he was going to run the NLRB and how he was going to approach employers. It was less than Sanders did, but that's way more than Democrats had done in the past.
I mean, the McCain/Romney era Republicans had no appeal to the sort of voters who voted for Obama twice and then voted for Trump. Biden only peeled back maybe 10% of them depending on where you're talking about, but it has made life easier for Democrats.
This fight has in large part been framed in the context of continuing a battle for civil rights. Do you see Biden lean into that messaging?
Biden did not really lean to the racial justice aspect or the civil rights legacy aspect of this labor fight. When the congressional delegation here came down a couple of weeks before the vote, they were much more explicit. Someone like Jamal Bowman or Cori Bush is much more comfortable saying that than Biden. That is the thing about Biden. He basically sets boundaries. He says what his position is and backs off and lets the action happen without his constant commentary. It's very different than Trump in that way too. And that's different than the Sanders position. And it's different than what Warren said her position would be as president.
Can you give us context on how or why you started covering this story?
I started covering the Amazon drive because of the president and members of Congress intervening. I mean, labor decided to get involved months before, but the fact that Democrats were getting involved was new. It has been interesting to monitor their investment in this over other Democratic Party causes.
There's a little bit of intervention from the Democrats, but not, I'd say equal to what Amazon is doing. They are not the advertisements on TV. We all know the Democratic party is kind of involved, but it is not the same political project that I've seen in other places.
There are two stories that kind of were happening at the same time; they have merged, but not completely. One is this labor drive, which is smaller than most drives that have succeeded. It is not overwhelming. You don't see labor signs everywhere you go. But, on the other hand, the level of national involvement is kind of new.
Had Biden said nothing, there would have been a story, but it wouldn't involve the White House, it wouldn't involve the Democratic Party, and it might not involve the PRO Act.
And I think that's going to change because of this.
New interview w/ @daveweigel @PaydayReport
— frank news (@FrankNewsUS) April 6, 2021
"The White House's involvement with the Amazon drive was a big surprise ... Previous presidents, Obama comes to mind, said a lot less. The fact that Biden did that early on is a political statement of what they thought was important." pic.twitter.com/MwYlmqE4xQ
That was a big decision Biden made to be a part of this.
Right. And that political story is interesting. The story here is much more independent. A lot of the people who've come in to help canvas are from smaller groups. You have Black Lives Matter and DSA groups from the area, but you don't have the Democratic Party getting involved in a huge way. I think that is something that people will revisit after the vote.
Should the Democratic Party, like most left parties in the world, be very involved with labor? Should they always take the side of labor?
Most social democratic parties are labor parties and they build up from there. Their coalition includes labor unions. In the British Labour Party, for example, labor has a role in electing the leadership. That is not the case here. That's the conversation I think they're going to start having when this votes over. For example, if there are, and the union says there are, hundreds of people around the country calling them saying, "Hey, I have some questions about what I can do at my fulfillment center in my town," that will be a question for Democrats.
And if Amazon wins, do you get spooked? Amazon has been very punchy in their PR. They might say that a bunch of elite Democrats stood with the union and the workers stood with Amazon. That is very comfortable turf for Amazon to be on, and that leaves a big question open for Democrats. If the union succeeds, throw all of that out the window. I think the lesson that everyone would take in that case would be that if it takes less than a three-minute video from the president to get momentum for something like this, then we should keep doing that. As we talk, I don't know the answer to that question. I think that is something that is going to be answered when the votes are in.
interviews
Student Debt on HBCU Campuses
by Lodriguez Murray
September 29, 2020
This interview with Lodriguez Murray, the Senior Vice President for Government Affairs at UNCF, was conducted and condensed by franknews.
Lodriguez | UNCF is an organization, started in 1944, dedicated to supporting historically Black colleges and universities (HBCUs) — both the students and the schools. We provide financial support to our 37 member schools, we do a lot of work to benefit the whole of HBCUs, and every year, we award upwards of $100 million scholarship to 10,000 students at 1,100 different colleges and universities.
frank | There is a student loan debt crisis. What does the crisis look like for HBCU students in particular?
We know that HBCU students carry more debt, but many people stop the explanation there. When we stop the conversation there, it makes it seem like these schools are more expensive or more onerous for the students that choose to attend.
Students at HBCUs carry more debt because those students come from statistically lower socioeconomic backgrounds than students at other schools. 75% of our student population is Pell Grant eligible. That is 20 percentage points more than at a predominantly white institution (PWI). At some of our schools upwards of 90% of our students are Pell-eligible.
Is the disparity solely within the amount that HBCU students carry, or are there differences in the interest rates and the types of loans they have?
81% of HBCU students receive some type of loan assistance to go to school. And the types of loans do really matter.
A study came out earlier this year that compared HBCU graduates with PWI graduates of the same age, same job, same income, and the same amount of loans. The students attending HBCUs were charged a higher interest rate on their loans.
What explains the difference in interest rates?
To explain that, you have to look at the systematic racism in our country. Black people have a harder time accessing capital. That's a statistical fact. And when Black people access capital, it often happens at the worst rates terms and conditions.
There are financial institutions that have seen us as risky in the past, and you can extrapolate from there to understand what financial institutions do by looking at the name of the college that a student has attended.
Can you talk about the role that Parent PLUS loans play on HBCU campuses?
About half of our students in 2020 are first-generation college students. Families are doing all they can to make college happen for their kids, but due to the economic situation of many of these families have very few options. When other financial aid options are exhausted, folks look to Parent PLUS loans.
We have a sorted history with the Parent PLUS loans at UNCF. We recognize the need for students to access capital to attend school, but we also recognize the need to improve elements of the loan to make it less predatory.
One of the things you should know about that program is that it is an option that many African American students use to access education. You should also know that the Obama administration changed the rules for Parent PLUS loans to require a nearly perfect credit score in order to obtain a Parent PLUS loan. That change completely hampered the HBCU community. It negatively impacted about 400,000 students nationwide. We saw a significant decline in enrollment at HBCUs, which was financially devastating to our community.
So, why would you punish people who, because of their historic relationship with financial institutions, have had to accept capital at the worst rates? We fought with Congress and the administration to improve their calculations around who could access the Parent PLUS loans.
With that said, certain things should be done to improve Parent PLUS loans, and all other loans, so they no longer cause such harm to students and families.
What changes do you advocate for as an organization?
We believe student and parent loan interest rates should be reduced. We believe the origination fees should be eliminated. We believe loan interest subsidies should remain for low-income students. We believe there should be streamlined loan payment options, and that income-based loan repayment should be automatic. And we believe the federal government should make it easier for students to refinance their loans to have lower interest rates.
We believe in improving and expanding the Public Service Loan Forgiveness Program. There are a lot of HBCU students that are teachers, police, officers, firefighters.
And no one has a good explanation for the program is not working well. It seems like someone's not being held accountable. There are many of students whose loans should be paid down as we speak, but they are not because that program is not working well.
Do you advocate for debt forgiveness?
We believe in debt forgiveness, but we believe it should be progressive. Why would we automatically forgive the loans of a graduate who is making $300,000 and can easily pay their loans? That makes it harder to forgive the loans of a teacher who is two years out of school making $40,000.
And when you say makes it harder — what do you mean?
It will be a bigger number and that bigger number will be harder for Congress and the American people to swallow. But if you prioritize graduates who make less money, then it is a much more attractive policymaking item.
How does the federal funding of HBCUs play into this story?
Congress invests a certain amount of money on an annual basis to help subsidize the schools. They recognize that, despite years of underfunding, HBCUs educate civilians from lower socioeconomic backgrounds and graduate them at higher rates than more well-resourced institutions.
That was especially evident when states and the federal government pulled back from investing in higher education after the Great Recession. In recent years, we have seen some reversal of that trend, but not enough to combat the chronic underinvestment in the institutions. And by chronic, I mean buildings need repairs and there are students who should have scholarships but don’t have them.
We need both the federal government and the philanthropic community to invest more in these schools. And we need to recognize that investment in our institutions yields more of a return than investment in those schools that have a billion-dollar endowment.
At the beginning of the pandemic, we were all bracing for a draconian year. After the death of George Floyd, the philanthropic community saw HBCUs and our organization as a way to right social ills. They came to us with donations, and with that money, we will be able to support more students than ever before. We've had the really largest philanthropic boom ever.
The CEO of Netflix and his wife personally gave $121 million, with $40 million going to the UNFC, $40 million going to Morehouse College, and $40 million to Spellman. Mackenzie Scott gave tens of millions of dollars to HBCUs. These kinds of moves have been terribly helpful to break the cyclical pattern.
I wonder if there are ways that you would advocate for the federal government to also fill that gap?
As a matter of fact, every major presidential candidate had policy proposals that benefited HBCUs. And we were able to educate them and convince them certain policies from four years ago were stale. For example, now all candidates, have free college proposals that include private HBCUs, as opposed to only including public institutions.
At first glance, you might say, do I even need to do a story on this small number of schools? But once you look at the actual impact of the schools it is evident these few schools are doing so much more than anyone would ever expect. These schools are only 3% of all the higher education institutions in the country, but they graduate around 10% of African-American bachelor's recipients. In the states where they are located, they educate a quarter of the Black graduates and they produce nearly 40% of all the Black STEM graduates. When you put those schools together and you have nearly a $15 billion economic impact on the country a year.