Leave it to socialists to mismanage money as badly as they mismanage countries. Now, the Democratic Socialists of America, an American socialist group affiliated with numerous members of “The Squad,” a hyper-progressive group of Democrat members of Congress, facing a financial crisis that could lead to a large number of layoffs for the group.
The group, of which AOC is a member, announced the matter in a resolution promoted by The Call, in which it declared that it is in “a financial crisis” and needs to slash staff costs to help it make massive budget cuts and avoid disaster. The proposal called on staff members to volunteer to lose their paid positions, but warned that layoffs would be coming if enough people did not volunteer.
The resolution states, “Whereas: Staff play an essential role in our organization. DSA would not function without their expertise and dedication. Whereas: DSA is in a financial crisis and staff-related costs account for 58% of our total expenditures and 72% of our projected income. Whereas: The current deficit will force us to make a 7-figure budget cuts. This will require us to make painful decisions that will impact all levels of the organization. Whereas: Given our current financial state, we do not believe we can have a healthy, democratic, and effective organization while spending the amount we currently do on staff.”
Continuing, it added, “Be it Resolved: We will cut $500,000 from staff-related expenses. Be it Resolved: We will first ask for volunteers from both director-level and bargaining unit staff to have their position cut and receive severance. If necessary, we will then explore initiating lay-offs according to the DSA union’s contract. Be it Resolved: The Personnel Committee will be responsible for determining the quantity and type of positions to be eligible for buy-out or layoff, and they will assist with logistics and a staff transition plan.”
The Call, describing what happened that led to the need for drastic cuts, wrote, “top directors mismanaged our dues by withholding essential information from elected leaders for years and imposed their own political objectives that would keep DSA in the model of a progressive non-profit rather than a mass party that is capable of getting us closer to a rupture with capitalism. As a result, we are now left holding the bag and tasked with cutting expenses just to keep the organization afloat.”
A canary in the coal mine for the group’s finances came in late December 2023, when it issued a desperate plea for those with financial skills to help out, writing, “Applications for very limited slots for people with directly applicable financial skills are open for the national Budget and Finance Committee. If you have both directly applicable fiscal skills and experience and the ability to attend all meetings, consider applying to assist with the ongoing budget process for the upcoming fiscal year, as well as the process for next year.”
The DSA has mainly been known for its stance on the Israel-Palestine conflict since the Hamas attack on Israel. The group quickly took a stand in favor of Palestine and against Israel’s punitive military action. That was nothing new for the group, however, as it had long supported the Boycott, Divest, and Sanction (BDS) movement as a way of pressuring Israel.
However, it’s stance after the Hamas attack did cause some prominent members to leave. Founding member, Maurice Isserman, for example, left and announced, “I left to protest the DSA leadership’s politically and morally bankrupt response to the horrific Hamas October 7 anti-Jewish pogrom that took the lives of 1,400 people, mostly civilians, and saw over 200 hostages carried off to Gaza, both groups of victims including children and infants,”
Watch AOC get heckled by her “fed-up neighbors” here:
HECKLING AOC: Fed up neighbors unload on Rep. Alexandria Ocasio Cortez in New York pic.twitter.com/eczg3qgoZf
— Lorrie Ann 🇺🇲🇺🇲🇺🇸 (@LorrieAnn25) January 10, 2024
"*" indicates required fields