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Article Artículo

Health and Social Programs

No Time for Retirement

Last month, CEPR’s David Rosnick wrote a blog post critiquing a study by the American Enterprise Institute on workers’ retirement incomes. David talked about how middle-income households are increasingly financially unprepared for retirement.

This may be having an effect on the job market. When my colleague Kevin Cashman and I were putting together an age-adjusted employment-to-population (EPOP) ratio to track recovery in the labor market, we split employment amongst six different age groups: Americans aged 16 to 24, 25 to 34, 35 to 44, 45 to 54, 55 to 64, and 65 and over. We found that while employment rates had fallen significantly during the recession for Americans under 65, employment had actually gone up for those 65 and over. One possible explanation for this rise is that insufficient pensions and savings are forcing many Americans to work longer than they would otherwise prefer.

CEPR and Nicolas Buffie / May 11, 2015

Article Artículo

Globalization and Trade

Latin America and the Caribbean

Mexico

World

Mexican Farmworkers Strike for Better Pay and an End to Abuses on the Job

On January 21, Mexican President Enrique Peña Nieto announced the beginning of a national program called “Mexico with Decent Work” (México con Trabajo Digno), with the stated mission to “promote the respect, protection and guarantee of human rights for workers in Mexico, as well as to ensure decent work is fully in force.” However, only two months later, as Secretary of Labor Alfonso Navarrete boasted that the program was rescuing people working practically in slave conditions, thousands of farmworkers in the San Quintín Valley in the Northeastern state of Baja California went on strike, demanding higher wages and better working conditions from the government and multinational corporations.

Negotiations have yet to move forward. The Mexican government seems unable to respond, perhaps because the organized farmworkers are challenging an alliance between multinational corporations, public officials who also have business in the valley, and corporate unionism– a system that protects the interests of employers.

San Quintín Valley is one of Mexico’s largest export regions, employing tens of thousands of farmworkers, many of them first or second generation indigenous migrants [PDF] originally from Southern Mexico. Each year the region generates more than six billion pesos (about $410 million) worth of agricultural products. It is estimated that there are 80 thousand farmworkers in the San Quintín Valley, and yet in the municipality of Ensenada, which encompasses all of San Quintín, there are less than 24 thousand farm workers registered with the Mexican Institute of Social Security (IMSS). The most important good produced is strawberries, but only a small portion of these are consumed in Mexico. Most are exported to the U.S. market to be sold by fast food chains, or in supermarkets like Wal-Mart, Safeway, or Whole Foods. Around 84 percent of U.S. imports of fresh strawberries come from Mexico, and Baja California leads Mexico’s production and export of strawberries.

Luis Hernández Navarro, Mexican journalist and coordinator of the opinion section of La Jornada, referred to the working conditions this way:

San Quintín’s day farmworkers labour in humiliating conditions on farms that grow produce for export: tomatoes, strawberries, blackberries. In exchange for starvation wages, they work up to 14- hour days without a weekly day of rest, let alone holidays or social security. Foremen sexually abuse the women, and they are forced to take their children to the premises to perform work.

… Many [workers] are indigenous migrants from Oaxaca (Mixtec and Triqui), Guerrero, Puebla and Veracruz, who have made San Quintín into another of their communities. Three generations of Oaxacalifornianos live there. They suffer constant police harassment. They rely on a single hospital [run by the] Mexican Social Security Institute [IMSS].

CEPR and Mateo Crossa / May 11, 2015

Article Artículo

NYT Pushes for Trans-Pacific Partnership In News Article

The NYT appeared to be pushing for approval of the Trans-Pacific Partnership (TPP) in a news article that massively misrepresented the pact's importance as a mechanism for reducing trade barriers and completely ignored the ways in which it would increase trade barriers. It also failed to mention the issue of currency rules or the extra-judicial system of investor-state dispute settlement mechanisms, both of which are main reasons given for opposition to the TPP.

The first paragraph describes the TPP as:

"a massive trade accord with 11 nations across the Pacific Rim."

Later it refers to it as:

"an accord that would reach 40 percent of the global economy."

It continues:

"The accord would reduce tariffs on a vast array of goods and services, and would affect about 40 percent of America’s exports and imports."

In fact, the vast majority of "40 percent of the global economy" and the "40 percent of America's exports and imports" are already covered by trade agreements with the United States. Of the eleven countries other than the United States in the TPP, six (Australia, Canada, Chile, Mexico, Peru, and Singapore) already have trade deals with the United States. That leaves Brunei, Japan, Malaysia, New Zealand, and Vietnam as countries being brought into a deal for the first time.

Dean Baker / May 10, 2015