Wikipedia

Groundwork Collaborative

Groundwork Collaborative (GWC) is an American 501(c)(3) non-profit think tank and progressive advocacy group based in Washington, D.C., that, according to its website, works to "change economic policy and narratives to build public power, curb private power, and create an economy that works for all of us."[1][2] The organization is best known for research, analysis, and media commentary on economic issues, such as inflation, student debt, housing, and the U.S. labor market.[3][4][5]

Groundwork Collaborative
AbbreviationGWC
Formation2018; 6 years ago (2018)
FounderMichael Linden
TypePublic policy think tank
Location
Executive Director
Lindsay Owens
WebsiteOfficial

Groundwork has been described as a "left-leaning think tank" and a “nonprofit that is critical of corporate behavior” by the Washington Post, and a “progressive economic policy group” in the New York Times.[6][7][8]

History

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Groundwork is led by Lindsay Owens, an economic sociologist who served as a senior economic policy advisor to Senator Elizabeth Warren and deputy chief of staff and legislative director to former Representative Keith Ellison and Progressive Caucus Chair Pramila Jayapal.[9] She was recently named to the Washingtonian's “Most Influential People Shaping Policy” list, noting that “Owens is known in media circles for her skills in communicating ways to better understand inflation and corporate profiteering.”[10] The organization was founded in 2018 by Michael Linden.[11] Linden also served as the executive associate director at the Office of Management and Budget from May 2022 - June 2023.[12][13]

In January 2021, Lindsay Owens became interim executive director and was named the organization's executive director in June 2021.[14]

Previous notable Groundwork employees include Janelle Jones, former chief economist at the Department of Labor, and Angela Hanks, former acting assistant secretary for Employment and Training Administration at the Department of Labor.[15][16][17]

Activities

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Corporate profiteering

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Groundwork offers research on "corporate profiteering" which the organization claims is a contributor to inflation sometimes called "greedflation". The organization maintains a database that tracks corporate earnings calls which news reports say "has described the CEOs as not just price gouging, but also 'bragging' about their ability to raise prices faster than costs."[18][19] The organization has referenced companies including Chevron, H.B. Fuller, 3M and Colgate-Palmolive in the media, alleging its CEOs are "using the cover of inflation to jack up prices on consumers."[20] In November 2022, Groundwork and the progressive consumer rights advocacy group Public Citizen released a report that found that large corporations opposed to anti-price gouging legislation spent $751 million on federal lobbying since 2020, nine times more than what was spent by supporters of the legislation.[21]

In early 2022, Janet Yellen,[22] Larry Summers,[23] and Jason Furman[24] criticized this approach of focusing on price gouging to combat inflation.

The organization released a report in January 2024 arguing that it had "resounding evidence" that high corporate profits were responsible for 53% of inflation in the United States during the second and third quarters of 2023.[25] Economist Isabella Weber called this phenomenon where firms do not lower prices for consumers after input prices fall a form of implicit collusion, allowing companies to reap windfall profits.[25] This followed a similar December 2023 paper published by the UK-based Institute for Public Policy Research and Common Wealth think tanks that stated that corporate profiteering played an important role in the inflation spike of 2022. Corporate profits surged while wages failed to keep pace with rising prices, resulting in the working class suffering the largest decline in disposable and discretionary income since World War II.[26]

The organization also reported in February 2024, that 30% of the rise in grocery prices in particularly vulnerable sectors like beef, chicken, fruits, vegetables and snacks and urged the Biden adminsitration to finalize rules to address the concentration in the meatpacking industry.[27]

Monetary and fiscal policy

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In 2022, Owens penned a New York Times op-ed where she criticized the hiking interest rates of interest rates to slow the economy, calling them a "a blunt policy tool with a high likelihood of throwing the country into a recession" and made a case that profiteering by corporations is a leading cause of inflation.[28] She has also appeared multiple times on The Problem with Jon Stewart as a featured guest and panelist to discuss why Groundwork believes the Federal Reserve's policies are misguided and how corporate profiteering is driving inflation.[29][30] Likewise, Mabud has been publicly critical of the Federal Reserve, arguing its actions will cause job losses and an economic recession while not addressing price gouging by corporations.[31][32]

Debt ceiling

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During the 2023 United States debt-ceiling crisis, Owens urged President Biden to "not give into hostage-taking," called for more tax increases and for Biden to invoke the Fourteenth Amendment as a strategy to avoid default.[33][34] After negotiators struck a deal to raise the debt ceiling and cap discretionary spending, Owens criticized the compromise saying it "represents the worst of conservative budget ideology," citing the effects flat spending may have on programs like Head Start and rental assistance.[35][36]

Fighting Chance for Families

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In June 2021, Groundwork and liberal polling firm Data for Progress launched a 'war room' called Fighting Chance for Families to advocate for extending the temporary expanded child tax credit that was included in the American Rescue Plan Act of 2021.[37] In July 2021, the group released a poll from Data for Progress and Mayors for a Guaranteed Income that found a majority of voters supported making the expanded child tax credit permanent, which contradicted polling by Morning Consult and Politico that found the opposite.[38] Reports of the group's survey data suggested that President Joe Biden's approval ratings increased 4 percentage points among parents who received monthly checks.[39] The program expired at the end of 2021.[40]

EconCon

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Along with other liberal organizations including the Economic Policy Institute, Demos, Center for Economic and Policy Research, and the Roosevelt Institute, Groundwork hosts EconCon, a yearly economic policy convention for left-leaning economists, advocates and policymakers.[41] Recent keynote speakers have included Office of Management and Budget director Shalanda Young, Rep. Delia Ramirez, and Minnesota lieutenant governor Peggy Flanagan.[42]

In 2022, Senator Elizabeth Warren delivered a keynote speech at the convention calling on Congress to eliminate the debt ceiling during the lame duck session of the 117th United States Congress and criticized the Federal Reserve's policies on inflation.[43][44]

ProsperUS

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In 2021, Groundwork Collaborative formed ProsperUS, a coalition of more than 70 progressive organizations pushing the Biden administration and Congress for increased public investment in the economy.[45][46] The group supported the Build Back Better Plan and later, the Inflation Reduction Act.[47][48]

During the September 2023 government shutdown crisis, the coalition called on leaders in Congress to reject spending cuts proposed by Congressional Republicans to keep the government funded and avoid shutdown.[49][additional citation(s) needed]

Congressional testimony

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During the 117th United States Congress, members of Groundwork's staff testified before various congressional committees on the topics of corporate profiteering, supply chain bottlenecks, inflation, workers' rights, and corporate consolidation. Owens testified before the Senate Budget Committee regarding the links between corporate profiteering and inflation.[50] Dr. Rakeen Mabud, Groundwork's chief economist, testified before the House Antitrust Subcommittee, the House Consumer Protection Subcommittee, the House Financial Services Committee, and the House Oversight Committee regarding inflation, profiteering and supply chain bottlenecks.[51][52][53][54] Mike Mitchell, Groundwork's former director of policy and research, testified before the House Fair Growth Committee regarding corporate consolidation and the imbalance of power between workers and companies.[55]

References

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  1. ^ Coy, Ben; Przybyla, Heidi (2022-10-29). "Food suppliers blame inflation for price hikes. Lawmakers say they're padding the bill". NBC News. Retrieved 19 September 2022.
  2. ^ "What We Do". Groundwork Collaborative. Retrieved 14 June 2023.
  3. ^ Werschkul, Ben (2022-08-30). "Corporate profits are at a 70-year high. Will the Inflation Reduction Act change that?". Yahoo Finance. Retrieved 18 September 2022.
  4. ^ Douglas-Gabriel, Danielle; Stein, Jeff (2022-08-24). "Biden to cancel up to $10,000 in student loans, $20K for Pell recipients". The Washington Post. Retrieved 18 September 2022.
  5. ^ Changa, Anoa (2022-07-10). "Black Unemployment Declines But More Economic Policy Interventions Are Needed". NewsOne. Retrieved 18 September 2022.
  6. ^ Lynch, David (2022-04-02). "As inflation spreads, rising prices fuel charges of corporate greed". The Washington Post. Retrieved 18 September 2022.
  7. ^ Stein, Jeff; Romm, Tony (2022-07-29). "White House insists economy is strong as allies grow uneasy about Fed". The Washington Post. Retrieved 19 September 2022.
  8. ^ Miller, Claire Cain (2020-04-10). "Could the Pandemic Wind Up Fixing What's Broken About Work in America?". The New York Times. Retrieved 19 September 2022.
  9. ^ "Lindsay Owens". Business Insider. Retrieved 14 September 2022.
  10. ^ "Washington DC's 500 Most Influential People of 2023". Washingtonian Magazine. 2023-04-27. Retrieved 14 June 2023.
  11. ^ Voght, Kara (2020-10-28). "The Pandemic Forced Joe Biden to Think Bigger. Meet the Economists Who Got Him There". Mother Jones. Retrieved 19 September 2022.
  12. ^ "Michael Linden". Legistorm. Retrieved 18 September 2022.
  13. ^ Coy, Peter (2022-10-29). "The 10 People Most Likely to Influence the Economic Policy of a President Biden". Bloomberg. Retrieved 18 September 2022.
  14. ^ "Groundwork Collaborative names Lindsay Owens, PhD, new executive director". Groundwork Collaborative. 2021-06-21. Retrieved 14 September 2022.
  15. ^ Dmitrieva, Katia (2021-02-21). "Biden's 36-Year-Old Economist Has Her Eye on an Equal Recovery". Bloomberg. Retrieved 18 September 2022.
  16. ^ Stewart, Emily (2021-01-14). "Joe Biden's $1.9 trillion Covid-19 stimulus plan, explained". Vox. Retrieved 18 September 2022.
  17. ^ "Angela N Hanks". National Economic Association. Retrieved 18 September 2022.
  18. ^ Werschkul, Ben (2022-08-30). "Corporate profits are at a 70-year high. Will the Inflation Reduction Act change that?". Yahoo Finance. Retrieved 20 October 2022.
  19. ^ "End Corporate Profiteering". Groundwork Collaborative. Retrieved 14 June 2023.
  20. ^ Finney, Michael; Yip, Randall (2022-08-26). "Inflation or profiteering? Advocacy group says companies raising prices under cover of inflation". ABC 7 News. Retrieved 20 October 2022.
  21. ^ Evers-Hillstrom, Karl (2022-11-03). "Corporations dominated lobbying on anti-price gouging bills: analysis". The Hill. Retrieved 10 January 2023.
  22. ^ Condon, Christopher (2022-06-09). "Janet Yellen Rejects Idea Corporate Greed Is to Blame for Inflation". Bloomberg. Retrieved 1 November 2022.
  23. ^ Anstey, Christopher (2022-05-13). "Summers Compares Price-Gouging Bill to Trump's Bleach Injections". Bloomberg Law. Retrieved 1 November 2022.
  24. ^ Zeballos-Roig, Joseph (2022-01-16). "A former top Obama economist throws cold water on the Biden administration's favorite inflation argument: 'Corporate greed is a bad theory'". Business Insider. Retrieved 1 November 2022.
  25. ^ a b Perkins, Tom (2024-01-19). "Half of recent US inflation due to high corporate profits, report finds". The Guardian. ISSN 0261-3077. Retrieved 2024-08-17.
  26. ^ Inman, Phillip (December 7, 2023). "Greedflation: corporate profiteering 'significantly' boosted global prices, study shows". The Guardian. Retrieved January 6, 2024.
  27. ^ Bhattarai, Abha; Stein, Jeff (2024-02-03). "Inflation has fallen. Why are groceries still so expensive?". Washington Post. ISSN 0190-8286. Retrieved 2024-08-17.
  28. ^ Owens, Lindsay (2022-05-05). "I Listened In on Big Business. It's Profiting From Inflation, and You're Paying for It". The New York Times. Retrieved 14 June 2023.
  29. ^ "Corporate Greed Is Causing Inflation - The Problem With Jon Stewart Podcast". The Problem with Jon Stewart. 2022-10-11. Retrieved 16 December 2022.
  30. ^ "The Inflation Blame Game". The Problem with Jon Stewart. 2023-03-17. Retrieved 12 May 2023.
  31. ^ Burns, Tobias (2023-01-27). "Inflation cools further ahead of key Federal Reserve meeting". The Hill. Retrieved 14 June 2023.
  32. ^ Perkins, Tom (2022-10-16). "Latest US inflation data raises questions about Fed's interest rate hikes". The Guardian. Retrieved 14 June 2023.
  33. ^ Corbett, Jessica (2023-05-17). "Progressive Senators Tell Biden: Prepare to Invoke 14th Amendment to Prevent Default". Common Dreams. Retrieved 22 May 2023.
  34. ^ Kane, Paul; Pager, Tyler (2023-05-11). "Debt ceiling meeting between Biden, congressional leaders postponed". Washington Post. Retrieved 12 May 2023.
  35. ^ Johnson, Jake (2023-05-28). ""The worst of conservative budget ideology": Progressives condemn Biden-GOP debt ceiling deal". Salon. Retrieved 30 May 2023.
  36. ^ Tankersley, Jim (2023-05-29). "Why Spending Cuts Likely Won't Shake the Economy". The New York Times. Retrieved 30 May 2023.
  37. ^ "Liberal groups set up 'war room' to push Democrats to extend child tax credit". McClatchy Washington Bureau. 2021-06-28. Retrieved 10 October 2022.
  38. ^ Schnell, Mychael (2021-07-21). "Majority in new poll says expanded child tax credit should not be permanent". The Hill. Retrieved 19 December 2022.
  39. ^ Delaney, Arthur (2022-03-22). "Loss Of Child Tax Credit Payments May Have Hurt Joe Biden's Approval Rating". HuffPost. Retrieved 18 October 2022.
  40. ^ Matthews, Dylan (2022-04-18). "Who killed the expanded child tax credit?". Vox. Retrieved 18 October 2022.
  41. ^ "EconCon". EconCon. Retrieved 14 June 2023.
  42. ^ Bade, Rachael (2023-06-10). "Playbook: Trump dumps gas on the political fire". Politico. Retrieved 14 June 2023.
  43. ^ Sheffey, Ayelet (2022-11-17). "Elizabeth Warren slams the Fed for risking 'pushing our economy off a cliff': 'There is a big difference between landing a plane and crashing a plane'". Business Insider. Retrieved 14 June 2023.
  44. ^ Stancil, Kenny (2022-11-17). "Democrats Can Defeat GOP Extremism by 'Fighting for Working People': Warren". Common Dreams. Retrieved 14 June 2023.
  45. ^ Sargent, Greg (2021-02-02). "As a new economic consensus emerges, lefty groups seek to put muscle behind it". Washington Post. Retrieved 6 December 2022.
  46. ^ Voght, Kara (2021-03-17). "Joe Biden's Economic Recovery Has a Narrative. Now It Needs a Legacy". Mother Jones. Retrieved 19 December 2022.
  47. ^ "ProsperUS Praises House Passage of Build Back Better Bill, Calls for Speedy Senate Passage, No Additional Cuts". ProsperUS. Retrieved 6 December 2022.
  48. ^ "ProsperUS Celebrates Bold Public Investments in Inflation Reduction Act". ProsperUS. Retrieved 6 December 2022.
  49. ^ Nicholson, Jonathan (September 15, 2023). "Liberal Groups Urge Congress To Reject Spending Cuts In Fight With House GOP". Huffington Post. Retrieved 2 October 2023.
  50. ^ "Corporate Profits are Soaring as Prices Rise: Are Corporate Greed and Profiteering Fueling Inflation?". United States Senate Committee on the Budget. 4 April 2022. Retrieved 19 September 2022.
  51. ^ "Reviving Competition, Part 6: Rebuilding Americas Economic Leadership and Combatting Corporate Profiteering". U.S. House Committee On The Judiciary. 17 May 2022. Retrieved 19 September 2022.
  52. ^ "Hearing on "Pandemic Profiteers: Legislation to Stop Corporate Price Gouging"". U.S. House Committee on Energy and Commerce. 2 February 2022. Retrieved 19 September 2022.
  53. ^ "The Inflation Equation: Corporate Profiteering, Supply Chain Bottlenecks, and COVID-19". U.S. House Committee on Financial Services. 8 March 2022. Retrieved 19 September 2022.
  54. ^ "Power and Profiteering: How Certain Industries Hiked Prices, Fleeced Consumers, and Drove Inflation". U.S. House Committee on Financial Services. 22 September 2022. Retrieved 23 September 2022.
  55. ^ "Hearing on the Impact of Corporate Power on Workers and Consumers". House Select Committee on Economic Disparity and Fairness in Growth. 6 April 2022. Retrieved 19 September 2022.
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