February, 14 2023, 01:38pm EDT
Groundwork Reacts to January CPI Report
Today’s Consumer Price Index (CPI) report shows inflation is at 6.4% year-over-year in January – down slightly from 6.5% in December. Prices for housing and shelter remain stubbornly high, accounting for nearly half of monthly inflation.
Groundwork’s Chief Economist Dr. Rakeen Mabud responded to today’s inflation report with the following statement:
“Inflation has fallen for seven straight months and the labor market continues to be relatively strong. It’s increasingly clear that we don’t have to manufacture mass joblessness and economic devastation to bring down prices. The Fed should stop trying to do just that.”
The Groundwork Collaborative is dedicated to advancing a coherent and persuasive progressive economic worldview and narrative capable of delivering meaningful opportunity and prosperity for everyone. Our work is driven by a core guiding principle: We are the economy. Groundwork Collaborative envisions an economic system that produces strong, broadly shared prosperity and power for all people, not just a wealthy few.
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Report Sounds Alarm Over Growing Role of Big Tech in US Military-Industrial Complex
The paper's author found that the five largest military contracts to major tech firms between 2018 and 2022 "had contract ceilings totaling at least $53 billion combined."
Apr 17, 2024
The center of the U.S. military-industrial complex has been shifting over the past decade from the Washington, D.C. metropolitan area to Northern California—a shift that is accelerating with the rise of artificial intelligence-based systems, according to a report published Wednesday.
The report—entitledHow Big Tech and Silicon Valley Are Transforming the Military-Industrial Complex—was authored by Roberto J. González, a professor of cultural anthropology at San José State University, for the Costs of War Project at Brown University's Watson Institute for International & Public Affairs.
The new paper comes amid the contentious rise of AI-powered lethal autonomous weapons systems, or killer robots; increasing reliance upon AI on battlefields from Gaza to Ukraine; and growing backlash from tech workers opposed to their companies' products and services being used to commit or enable war crimes.
"Although much of the Pentagon's $886 billion budget is spent on conventional weapon systems and goes to well-established
defense giants such as Lockheed Martin, RTX, Northrop Grumman, General Dynamics, Boeing, and BAE Systems, a new political economy is emerging, driven by the imperatives of big tech companies, venture capital (VC), and private equity firms," González wrote.
"As Defense Department officials have sought to adopt AI-enabled systems and secure cloud computing services, they have awarded large multibillion-dollar contracts to Microsoft, Amazon, Google, and Oracle," he added. "At the same time, the Pentagon has increased funding for smaller defense tech startups seeking to 'disrupt' existing markets and 'move fast and break things.'"
The report highlights the rise of a new class of billion-dollar military contractors, "a combination of gargantuan tech firms like Microsoft, Amazon, and Google, and hundreds of smaller, pre-IPO startup companies supported by VC firms."
"The use of drones and AI-enabled weapons systems in Ukraine and Gaza, and a feared AI arms race with China, have fueled the
Pentagon's heavy investment in advanced digital tech," González wrote.
A lack of transparency is obscuring the true value of some of the largest military contracts to tech companies.
"One estimate indicates that U.S. military and intelligence agencies awarded at least $28 billion to Microsoft, Amazon, and Alphabet (Google's parent company) between 2018 and 2022," the report states. "The actual value of these contracts is likely much higher, because many of the largest known contracts with U.S. tech companies are classified and withheld from public procurement databases."
González found that the five largest military contracts to major tech firms between 2018 and 2022 "had contract ceilings totaling at least $53 billion combined."
"Major tech firms are also awarded large subcontracts from relatively obscure intermediaries or 'passthrough' companies that are granted primary contracts from the Pentagon—evading scrutiny and analysis," the paper adds.
González said that multi-year software-as-a-service contracts "could make the Pentagon and CIA more dependent than ever on the expertise of technical experts from the private sector."
The risk of conflicts of interest increases as military-dependent tech companies go public.
"As just one example, since going public, more than half of Palantir Technologies' revenue has come from the federal government," the report states. "Recent Palantir contracts with the U.S. Army Special Operations Command and the Air Force are worth more than $900 million. Palantir stock rose more than 170% in 2023."
There's also the danger of a "revolving door" between Silicon Valley and the Pentagon as many senior government officials "are now gravitating towards defense-related VC or private equity firms as executives or advisers after they retire from public service."
"The traditional 'revolving door' meant that a former defense official might accept an executive position with traditional weapons manufacturers; there are more lucrative options now," González wrote. "At least 50 former defense officials are working in VC and private equity, leveraging their connections with current officials or members of Congress to advance beneficial legislation for defense tech firms in their firms' investment portfolios."
"The implications are significant: The new 'revolving door' will accelerate military and intelligence agency funding for early-stage defense tech startups," the report states.
González details how "overblown, inaccurate, ideological talking points are driving defense funding for Big Tech," including "grandiose claims about the effectiveness of artificial intelligence; the overestimation of China's military and technological capabilities; the idea that America has the ability and duty to protect the world's democratic societies; and a steadfast belief that the best way to preserve U.S. dominance is through a free market that prioritizes corporate needs."
"These perspectives boost demand for military AI, and are promoted by a network of tech executives, venture capitalists, think tank analysts, academic researchers, journalists, and Pentagon leaders," he wrote.
Finally, the report warns that "aggressive Big Tech business models" can rush the development of weapons, endangering both combatants and civilians.
"Members of the armed services and civilians are in danger of being harmed by inadequately tested—or algorithmically flawed—AI-enabled technologies," the paper states. "By nature, VC firms seek rapid returns on investment by quickly bringing a product to market, and then 'cashing out' by either selling the startup or going public. This means that VC-funded defense tech companies are under pressure to produce prototypes quickly and then move to production before adequate testing has occurred."
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'A Big, Big Deal': Chattanooga Volkswagen Workers Begin Voting in Key Union Election
"Looking back, you could see this being the first domino in something that changes the entire South," said one labor journalist.
Apr 17, 2024
Volkswagen workers in Chattanooga, Tennessee began voting Wednesday on whether to join the United Auto Workers, a closely watched election seen as a critical test for the emboldened union's ability to organize in the U.S. South.
The election kicked off a month after workers at the Chattanooga plant filed a petition with the National Labor Relations Board (NLRB) formally requesting an election to join the UAW, which secured record-breaking contracts at the Big Three U.S. automakers last year after a historic six-week strike.
Following the hard-fought contract victories, the UAW launched what's been described as the largest union organizing drive in modern U.S. history, targeting nonunion car manufacturers such as Tesla, Toyota, and Volkswagen.
The Chattanooga election marks the third time in a decade that the UAW has tried to organize the Volkswagen plant, which currently has around 4,300 workers. Voting concludes on Friday.
"This election is a big, big deal—probably the most important union election that this country has seen in years," labor journalist Hamilton Nolan said in a Democracy Now! appearance on Wednesday. "Looking back, you could see this being the first domino in something that changes the entire South."
About 4,000 Volkswagen workers in Tennessee are voting on whether to unionize with the United Auto Workers. Labor journalist @hamiltonnolan says it's the most important union vote in years and could be the "first domino" in a wider push to organize the auto industry in the South. pic.twitter.com/RWFnO5KznI
— Democracy Now! (@democracynow) April 17, 2024
Chattanooga workers voiced confidence that this election will be different than 2014 and 2019, when Volkswagen employees voted against joining the UAW by narrow margins.
"We're going to win," Lisa Elliott, a quality control worker at Volkswagen, toldThe Guardian's Steven Greenhouse. "We have the momentum. I know this will be a historic event."
In addition to the Chattanooga effort, the UAW is trying to organize Mercedes-Benz workers in Vance, Alabama. Earlier this month, a supermajority of Mercedes workers in Vance submitted a petition to the NLRB requesting an election to join the UAW.
UAW's organizing efforts have drawn national attention—and ire from anti-union politicians, including the Republican governors of Tennessee, Alabama, Mississippi, and other states in the U.S. South.
Joseph McCartin, a labor historian at Georgetown University, told Greenhouse that "a victory at Volkswagen would make a victory at Mercedes much more likely."
"Victories at both Volkswagen and Mercedes would be nothing less than an earthquake," McCartin added. "This would be the biggest breakthrough in private-sector organizing in decades. It would mean that the anti-union citadel [in the South] that has repulsed effort after organizing effort has been breached."
University of California, Berkeley professor Harley Shaiken echoed that assessment in an interview with The New York Times.
"It would be a revolution for the UAW and for the auto industry," Shaiken said of a UAW win. "It would break the glass ceiling for unions in the South, and would mean more purchasing power for working-class people in that region."
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Montanans Launch Push to Get Abortion Rights on November Ballot
"With 2024 shaping up to be the biggest year ever for abortion on the ballot, it is critical that Montanans can make their voices heard on this issue."
Apr 17, 2024
As abortion continues to dominate this year's state and federal political contests, Montanans Securing Reproductive Rights on Tuesday launched a signature collection drive to get a citizen-initiated state constitutional amendment on the November ballot.
Since the right-wing U.S. Supreme Court reversedRoe v. Wade with Dobbs v. Jackson Women's Health Organization nearly two years ago, Republican state lawmakers have ramped up efforts to further restrict abortion care—and voters, including residents of red states, have responded by protecting reproductive freedom when weighing in on related ballot measures.
With little hope that the divided Congress will restore nationwide abortion rights, ballot initiatives for the 2024 cycle are ongoing in various states, from Arizona and Florida to Montana, where "a yes vote on Ballot Issue #14 will keep the government out of our personal lives," as the Montanans Securing Reproductive Rights website states.
"This is an exciting opportunity to secure our rights for generations to come. Now is the time to ensure power remains in the hands of the people of Montana, so everyone has the freedom to prevent, continue, or end a pregnancy should they choose," the site adds. "Politicians have no business controlling our bodies and our futures."
After a legal battle with Republican state Attorney General Austin Knudsen, the ballot language is:
CI-128 would amend the Montana Constitution to expressly provide a right to make and carry out decisions about one's own pregnancy, including the right to abortion. It would prohibit the government from denying or burdening the right to abortion before fetal viability. It would also prohibit the government from denying or burdening access to an abortion when a treating healthcare professional determines it is medically indicated to protect the pregnant patient's life or health. CI-128 prevents the government from penalizing patients, healthcare providers, or anyone who assists someone in exercising their right to make and carry out voluntary decisions about their pregnancy.
Montana currently allows abortion care up until fetal viability. In response to a legal challenge from Planned Parenthood of Montana (PPMT), a trial judge in February struck down three laws passed by the Republican-controlled state Legislature in 2021: a 20-week ban, restrictions on medication abortions, and a rule that providers must offer patients an ultrasound.
"We are relieved that Montanans will no longer live with the threat of these harmful restrictions taking effect. But make no mistake, our fight continues," PPMT president and CEO Martha Fuller said at the time. "For years anti-abortion politicians at all levels of government have made banning abortion their number one priority, despite the current protection held in our state constitution."
"During the 2023 Montana legislative session, an onslaught of anti-abortion bills was introduced, passed, and signed into law, and PPMT is working hard to beat back these attacks and more," Fuller continued. "We will never stop working to ensure that all Montanans and those who are forced to travel here for care can access the care they need."
In addition to Planned Parenthood, Montanans Securing Reproductive Rights is a campaign by the ACLU of Montana, the Fairness Project, and Forward Montana. The coalition now needs to collect 60,000 signatures by June 21.
"Anti-abortion extremists have tried to interfere in Montanans' personal healthcare choices again and again. That's totally unacceptable—Montanans deserve to make their own decisions about reproductive care, not have politicians decide for them," the Fairness Project executive director Kelly Hall said Tuesday.
"The Fairness Project is proud and excited to be supporting Montanans Securing Reproductive Rights in their campaign to pass CI-128, especially at a time when abortion rights are under attack," Hall added. "With 2024 shaping up to be the biggest year ever for abortion on the ballot, it is critical that Montanans can make their voices heard on this issue."
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