A More Progressive Budget, a More Progressive President?

Feb 15, 2012Richard Kirsch

It doesn't matter what the president's motives are for proposing better policies. What's important is that progressives hold him to it.

A time-honored but largely useless exercise is trying to divine whether the actions of politicians are motivated by their core beliefs or by "politics." For most successful politicians, the line between the two is murky. In fact, it has to be. Politics being the art of the possible, elected officials who try to exercise their power will always be navigating a circuitous course within a broad set of values.

It doesn't matter what the president's motives are for proposing better policies. What's important is that progressives hold him to it.

A time-honored but largely useless exercise is trying to divine whether the actions of politicians are motivated by their core beliefs or by "politics." For most successful politicians, the line between the two is murky. In fact, it has to be. Politics being the art of the possible, elected officials who try to exercise their power will always be navigating a circuitous course within a broad set of values.

So it is that some wonder whether the budget proposal put forth by President Obama is driven by the president's belief that we need to take a more progressive direction to address the nation's deep problems. Or is the president just deciding he needs to tack left in order to rally his base behind him for the upcoming election?

What matters is not the president's motivation; what matters is what he does and how his actions are received. Having failed to reach a "grand compromise" with Republicans in the summer of 2011, including damaging cuts to core social insurance programs, Obama had no place to go but to his left. He was pushed there by finally realizing that his faith in his own ability to be an ideological bridge between left and right had been wrecked by the capture of the Republican Party by the extreme right. He was left looking weak to independents and a disappointment -- if not a traitor -- to his core supporters.

In many of his speeches since the summer's debacle, and in many of the substantive proposals in the American Jobs Act and his new budget, President Obama has embraced a progressive view of the economy and put forth proposals that would revitalize the economy by creating middle-class jobs paid for by taxing the rich. The proposals are good policy -- the only available course that offers hope to address our long-term economic problems -- and good politics, popular with wide swaths of the public.

Check out “The 99 Percent Plan,” a new Roosevelt Institute/Salon essay series on the progressive vision for the economy.

The real challenge for progressives is to use 2012 to increase the likelihood that a reelected President Obama will keep to the new course in 2013. To do that, we will need to do four things. The most important task is to demonstrate that progressive views on the economy are winners with the public and at the ballot box. That will require running aggressive issue campaigns on core economic issues -- such as job creation, reining in Wall Street and the banks, taxing the rich and corporations, and ending corporate control of our democracy. The actions, message, and spirit of the Occupy movement need to be carried on across the country, including in battleground states and congressional districts, connected to voter registration, persuasion, and get-out-the-vote efforts.

The second key is to applaud and support the president and his allies in Congress when they do the right thing. When politicians perceive they are taking a risk, they need to hear cheers. There's no point in asking "what took you so long?" or "do you really mean it?" Instead, we should welcome and encourage words and actions that are in line with our values. If we don't, the president and other Democrats will believe those who say that you can never satisfy the left and seek more comfortable shelter with the advocates for the status quo.

However, applauding the good doesn't mean giving up on the better. The third ingredient is to keep pushing for more. For example, we can applaud the president for wanting to change the corporate tax code to punish companies that take jobs overseas, but that doesn't mean we should accept his proposal that there be no net increase in corporate tax collection. At a time when corporate taxes are at a historic low in terms of their share of federal revenues, and corporations are sitting on $2 trillion in cash, we should be raising more money from corporate income taxes, not treading water. We need to push for more progressive policies now to set the table for 2013, when Obama will again be attempting to enact legislation in the face of an onslaught from corporations and the right.

The last step is to do all of the above in a way that creates stronger coalitions, involves more activists, develops new leaders, and builds a real sense of momentum among progressives, from the large well-established infrastructure to the netroots and grassroots movements to the Occupiers. The more that we work together, both intentionally and by respecting the roles we all play, the greater our ability to actually move the nation in a progressive direction in 2013 and beyond.

Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform.

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The Marrying Kind: How Class Shapes Our Search for a Soul Mate

Feb 14, 2012June CarboneNaomi Cahn

family-150While women on the low end of the economic ladder give up on marriage, the middle class seek partners that have both compatible values and compatible job prospects.

family-150While women on the low end of the economic ladder give up on marriage, the middle class seek partners that have both compatible values and compatible job prospects.

As we celebrate Valentine's Day, we should be aware that underlying the many stories on the changing nature of marriage and relationships is a central irony: the college-educated middle class that embraced the sexual revolution is now leading the way back into marriage. And this group has more stable families because of the combination of two qualities hard for everyone else to find. The first is a flexible approach to family roles. Men who help with the children and women with six-figure incomes are very much in demand. The second is good jobs: over the last 30 years, the number of men with stable employment has stayed even with women only at the top. The result is remaking the definition of domestic success.

Sociologists call the new marriage patterns "soul mate" marriage. They observe that Americans used to marry at younger ages (in 1960, the averages were 22 for men and 20 for women) and the young couples fully entered adulthood only after they married. The secrets to making those marriages work were well-defined gender roles and lots of coercion. The couple was likely to have one child immediately and a second not too long afterwards. With two young children, even a desperately unhappy wife would have difficulty leaving a man who brought home a regular paycheck, and he was likely to be readily employed in a job with benefits, promotions, and raises. The two would be embedded in a network of friends, families, and co-workers that revolved around marriage and stigmatized divorce.

Today, a much higher percentage of the population is single and almost 40 percent of Americans believe that marriage is outdated. Yet the vast majority will marry eventually. Before they do, however, they will spend their twenties unmarried, often on their own, experimenting with different relationships and engaged in what may be a decade-long search for the right partner. This generation will grow up before they get married and in the process they will reach more informed and (hopefully) mature decisions on what kind of partner allows them to realize the family life they wish to create. These patterns are more individualistic than the old institutional model, but while they do vary more than the breadwinner/homemaker model of the fifties, it is a mistake to think that they are based only on dewy-eyed romance.

Instead, today's marital partners select for a mate with shared values -- and they are likely to be drawn to partners who can truly share their lives and their successes. The college educated, for example, marry and bear children later than the less educated, while those with less education have become increasingly likely to bear children first. The non-marital birth rate has stayed at two percent for white college graduates over the last 25 years and risen only slightly for college-educated racial minorities. During the same period, the non-marital birth rate has reached 40 percent for the country as a whole. College graduates enter into any kind of family life significantly later than their less-educated peers and have become even more likely to marry only each other.

Check out “The 99 Percent Plan,” a new Roosevelt Institute/Salon essay series on the progressive vision for the economy.

When they do marry, today's romantic partners seek those who share compatible values and complementary employment. The new elite devotes more parental time to their children than their parents did and the ability to do so requires either one high-earning partner or two wage earners with compatible schedules. In commenting on Obama's plans to increase taxes on those with income above $250,000, a University of Chicago law professor complained that it took he and his wife that much income to raise a family in Chicago in accordance with a professional standard of living. What he emphasized less is that it also took a spouse with a six-figure income to afford the nannies, private schools, and college and graduate education that would allow their children to realize opportunities comparable to their own.

Marriage on these terms cannot work, however, for couples who do not trust their partners or who feel that their partners contribute so little that they threaten the resources necessary to provide for children. For the approximately two-thirds of the population that does not have a college degree, an increasing number of men don't have the steady, adequate-paying jobs that allow them to provide the foundation for a successful family life. Nor are working class men who feel like failures in the job market prepared to play roles backing up their wives and children. College-educated artists or faculty spouses may be willing to dote on their children while their wives take on the "breadwinning" role, but less secure men are more likely to chafe at the domestic tasks. Financially independent women who both earn the bulk of the family income and assume the majority of the domestic tasks don't want -- or need -- men who are unable to support their families, emotionally or financially. While divorce rates plummeted in the '90s for college graduates, they continued to rise among the hard-pressed working class.

The secret underlying these patterns has been the growing divergence in male job opportunities and a change in the gendered wage gap. In 1990, all women, irrespective of education, made about the same percentage of the median hourly wage of the men, with college graduate women making a slightly higher percentage of the male wage than those who did not graduate from college. Today, those figures have changed appreciably. College graduate women are now paid a smaller percentage of the median hourly wage the men earn, while all other women are earning a higher percentage of male income. During the same period, male employment stability, which remained largely unchanged for college graduate men, and improved for most women, became notably worse for working class men.

What these figures mean is that for women who graduate college, there are still lots of choices. Even though women are graduating from college in larger numbers than men, there is still a substantial number of men at the top of the income ladder. Moreover, as the wages of college graduates have stagnated over the last decade, they have done so even more for women than for men. Today's college graduates recognize that they need each other to realize the good life and they are very careful in the search for the right partner.

Women at the losing end of the economic spectrum, however, are increasingly giving up on men and marriage. Men with stable jobs are harder to find and recently laid off or semi-employed men help out less around the house than those who work full time. The mismatch between men and women has had a bigger impact on marriage than the change in values that inspired the sex revolution. It is time to recognize that the best Valentine's Day present out there is a more promising future.

June Carbone is the Edward A. Smith/Missouri Chair of Law, the Constitution and Society at the University of Missouri-Kansas City.

Naomi Cahn is the John Theodore Fey Research Professor of Law at George Washington University Law School. She is the author of numerous books and law review articles on gender and family law.

Cahn and Carbone are the co-authors of Red Families v. Blue Families.

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R.I.P. Mancession

Feb 9, 2012Bryce Covert

Now that the gender gap in unemployment has disappeared and male-heavy industries are seeing signs of life, we can finally put the buzzword to rest.

If you were one of the unfortunate few who watched ABC's failed wannabe-Tootsie comedy Work It, you wouldn't have known that the mancession has actually ended. But in fact last Friday's jobs report marked the end of the trend (and hopefully the persistent portmanteau).

Now that the gender gap in unemployment has disappeared and male-heavy industries are seeing signs of life, we can finally put the buzzword to rest.

If you were one of the unfortunate few who watched ABC's failed wannabe-Tootsie comedy Work It, you wouldn't have known that the mancession has actually ended. But in fact last Friday's jobs report marked the end of the trend (and hopefully the persistent portmanteau).

Before we can declare it over, let's review what it actually was. The term itself was coined by AEI scholar Mark Perry. He was the first to give a name to a striking phenomenon during the recession (officially from 2007-2009): not only did employment tank in male-heavy industries, and not only did they therefore have elevated unemployment rates, but the gap between their unemployment rate and women's was the largest in post-War record-keeping. This was particularly striking because before the recession -- in the months from 2004 to 2007 -- unemployment rates were about equal for the two sexes, and women's even rose higher than men's for some months. This gap between the two rates hit a peak in August of 2009 at 2.7 percent -- men at that point had an 11 percent jobless rate, and women had 8.3. (The gap started closing after that point even as male unemployment rose -- women just started catching up with them in the unemployment department.) To sum up, as Perry puts it, "the impact of job losses was considerably greater for men, since almost 6 million men lost their jobs, compared to only 2.64 million job losses for women. More than two out of every three jobs lost in 2008 and 2009 were held by men (68.5%), or alternatively it was also the case that 217 men lost their jobs for every 100 women who became unemployed in 2008 and 2009."

He points out that much of this was related to the industries most affected by the recession. Construction and manufacturing went into freefall. He calculates that the largest job losses during the recession were in manufacturing -- down by 14 percent -- and construction -- down by 20.2 percent. Men make up 71.2 and 87.5 percent of those industries, respectively. On the other hand, some industries where women dominate were doing well. Education and health services was up 4 percent, 74 percent female, and government jobs were up 2.25 percent, 57 percent female.

Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

So that's what Work It was trying to channel: this notion that the economy had so changed that the only job prospects are in female-dominated industries. Where are we now? It turns out the recovery period, officially from 2009 until now (even if it hasn't really felt like one), has created a very different world. While recovery should mean a good bump in jobs for men if they lost so many in the recession, women have surprisingly lost ground. Their unemployment rate has been rising as men's has been falling, in many ways because government jobs are now the ones to suffer overwhelmingly.

But there was still a gender gap in unemployment -- that is, until Friday. Analysis by the National Women's Law Center shows that men and women are now on par for unemployment rates, both standing at 7.7 percent. Mark it: the gender gap that had Perry, the media, and manhood so worried has completely evaporated.

On top of that, the supposedly recession proof, female-dominated industries are not faring as well. And the male dominated ones are starting to show signs of life. Construction is up 2.1 percent; manufacturing is up 2. Yet government jobs are down 1.2 percent, and that's across the board -- 1.5 percent at the federal level, 1.4 at state level, and 1.1 at the local level. Those government job losses are driving our current womancession. Job losses, which skewed male, have now turned into skewed job gains. Men had lost 6 million jobs to women's 2.64 million during the recession, but now women have gained just eight percent of the 1.9 million jobs added in the recovery.

This painful economic period, even if it's showing signs of improvement, is likely far from over. Men and women are both still hurting in huge numbers. But at least one thing has changed: we can stop calling this a mancession.

Bryce Covert is Editor of New Deal 2.0.

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The Economy Sucks for Those Who Have Jobs, Too

Feb 7, 2012Mike Konczal

New JOLTS data show that people are quitting their jobs less and less and getting hired at a similarly slow rate.

Last week's job numbers were generally positive. Now if those numbers pick up steam, if the housing market begins to recover, if Europe doesn't sink the U.S. economy, if the situation in the Middle East and especially Iran doesn't cause oil prices to spike, and if we don't immediately disrupt government spending through premature austerity, we could see some major job growth in 2012.

New JOLTS data show that people are quitting their jobs less and less and getting hired at a similarly slow rate.

Last week's job numbers were generally positive. Now if those numbers pick up steam, if the housing market begins to recover, if Europe doesn't sink the U.S. economy, if the situation in the Middle East and especially Iran doesn't cause oil prices to spike, and if we don't immediately disrupt government spending through premature austerity, we could see some major job growth in 2012.

What about those who still have a job? We focus on the unemployed for many good reasons. Economists do this because of it is so miserable to be unemployed in this country and because they function as a good barometer for the health of the economy. We "see" changes in unemployed in the data much quicker than movements in GDP and other aggregates.

But the economy also has major problems for those with jobs. Be honest: how many of you spent the past two months thinking, "I'm going to quit this job I have now"? Personally, many friends of mine have discussed how they want to move on and quit their current jobs and were putting in the energy to find new ones. They've mostly failed and are taking it as a personal failure.

Except it's less a personal failure than a macroeconomic one.

Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

This morning the Bureau of Labor Statistics put out their Job Openings and Labor Turnover Survey (JOLTS) data for December 2010. The "quit rate" -- how many people are walking out of their jobs -- was flat for the month at the very low 1.5 percent rate, and still significantly lower than it's been over the past decade. The quit rate for those with jobs plummeted during the the recession and it's never recovered. And it's remained stagnant even as there's been some encouraging signs for the unemployed. Here is how the rate looks historically:

I also have a few friends -- both employed and unemployed -- who have been strung along by potential new jobs, and I imagine this is happening to many people. They hear a lot of "we'll let you know soon" over the course of several months with no actual offer or hiring on the horizon. Again, think macroeconomics -- the job hire rate also plummeted and has stayed flat recently.

The problem isn't just that there are so many people who have been unemployed for over 99 weeks -- the problems exist for everyone, even those with jobs.

Mike Konczal is a Fellow at the Roosevelt Institute.

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What $100 Million Could Do for Out of Work, Underpaid Teachers

Feb 7, 2012Bryce Covert

Instead of spending the money to train new teachers, we could focus on putting laid off teachers back to work and keeping them there by paying them better.

Instead of spending the money to train new teachers, we could focus on putting laid off teachers back to work and keeping them there by paying them better.

News came out today that President Obama is announcing a new plan to spend $100 million on training 100,000 new teachers over the next decade. Responding to a call from American businesses to provide more high-skilled workers, Obama's plan will focus on training more STEM teachers -- aka those teaching science, technology, engineering, and math.

Spending more money on education is a healthy priority, but is this the right tactic? The plan seems to presuppose that there is a dearth of teachers right now. Yet the opposite is true -- we've been laying them off in droves in response to tight state and local budgets. So there is a whole pool of people that we could put back to work doing what they already want to do. The number of jobs in "local government education" -- in other words, elementary school teachers -- has been falling steadily since February 2008, according to the BLS. We've lost 217,900 of those jobs since then, and things aren't getting much better, even with seemingly good signs in the latest jobs report. Those education jobs were down 9.6 percent since December.

So rather than enticing and training a new army of teachers, perhaps we could start by putting the ones we've already got back to work. It would likely be a lighter lift to retrain them. And it would help ease the ongoing womancession.

Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

But this plan also misses a larger problem: that we lose teaching talent because we don't value the profession enough. If you're educated in STEM, which some report pays 87 percent higher than the average private sector job, why would you go into teaching, an under-paid and under-appreciated field?

This is a serious problem for our education system. A report from McGraw-Hill lays out some recommendations on how the U.S. can take on the fact that its butt is being kicked on global test scores. The numbers are pretty embarrassing: on average, American students came in 15th in reading, 19th in science, and 27th in math. So what was the report's number one recommendation for changing those figures? Raise the status of the teaching profession. The report notes that the countries with the top scores are also those that typically pay teachers better. In fact, our high school teachers work longer than other countries, yet we spend less on teacher salaries than the average OECD country. This is a big reason that nearly 50 percent of new teachers leave the profession within the first five years, according to a 2005 NEA report. Their reasons for leaving were poor pay and poor working conditions.

I applaud the idea of spending $100 million on education, particularly in a "recovery" period still taking a heavy toll on those working in that sector. But there may be much better uses for the money, and in all reality we need a much larger sum to make real change in our education system. We do need to recruit more people to the teaching profession. If we help people stay in those jobs by firstly employing them and then paying them what they deserve, we may take care of the problem.

Bryce Covert is Editor of New Deal 2.0.

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How to Fix the Gender Wage Gap: Going Far Beyond an App

Feb 2, 2012Bryce Covert

To change the wage gap, we have to change systemic problems like unionization, work-family policies, and gender segregation.

To change the wage gap, we have to change systemic problems like unionization, work-family policies, and gender segregation.

The first piece of legislation that President Obama signed into law after being elected was the Lilly Ledbetter Fair Pay Act. The Act expanded the statute of limitations for cases alleging pay discrimination based on gender. Yet three years after the signing, the gender wage gap has barely budged. It remained statistically unchanged, with women earning 77.4 percent of what men make.

Obama mentioned this gap briefly in his State of the Union and followed up with a video message about the necessity of ensuring that women make the same as men for equal work. The White House also has an Equal Pay Enforcement Task Force, whose mission is to address loopholes in existing legislation, coordinate the many offices and efforts to enforce current laws, and seek more information on the gap for the public and the government to take more action.

The Task Force announced an Equal Pay App Challenge this week asking for "help in building innovative tools to educate the public about the pay gap and promote equal pay for women." To help with the challenge, Salary.com is releasing its collection of salary data for more than 4,000 jobs for the first time in its history for use in the app. "Knowing what your job pays is an integral part of negotiating a fair wage," said general manager Abby Euler.

According to IWPR, nearly half of all U.S. workers are either contractually forbidden or strongly discouraged from discussing their pay with coworkers. While there isn't a direct link between pay secrecy and the wage gap, the gap persists despite the fact that the Equal Pay Act of 1963 prohibits employers from paying women less than men (and vice versa). As IWPR writes, this is in many ways because "in practice, employer policies regarding pay secrecy, including threats of retaliation, make it difficult for workers to discover pay discrimination and effectively use these rights."

So an app that better allows employees to find out salary information could have an impact on closing the gap. But unfortunately, solutions like these won't address the entire problem, because its roots are systemic. To seriously take action that changes the wage gap, President Obama and Congress would have to look at a variety of solutions, many of which are politically unpalatable.

For starters, unionization is associated with a lower pay gap. The gap starts to close among men and women who belong to a union compared to those who don't -- unionized women earn 87.8 percent of men's wages versus their non-union counterparts who earn 79.9 percent. IWPR's research shows that unions also help to reduce pay secrecy: half as many unionized workers as nonunion workers are discouraged or prohibited from sharing that information with coworkers. But unionization rates have been flat in recent years and have fallen significantly in recent decades. And more men than women are unionized. That gap has been shrinking since the 1980s, but mostly due to a falloff for men. Increased unionization could be a powerful tool for women to use against employers who discriminate in pay, but the trend in the country is going in the opposite direction.

Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

At a more fundamental level, our policies to support mothers in the workforce are pitiful compared to other developed countries, yet they have a huge impact on the wage gap. Three-quarters of the women entering the work force will get pregnant on the job, but family leave and childcare policies barely exist.

For instance, a recent Census Bureau analysis found that about half of working first-time mothers got no paid leave to have their babies. The share of women given time off for pregnancy, birth, and childcare has leveled off. Yet a recent Rutgers study shows, "Paid family leave increases wages for women with children." Women who take leave lasting for a month or more are 54 percent more likely to have wage increases the following year than those who don't take any leave.

Along similar lines, a UC Berkley study of California's childcare support system found that early care and education systems have much to do with the ongoing wage gap. It says:

Better pay and benefits are correlated with a continuous work history. Workers' careers are disrupted because of child care failure -- care that is unreliable, unaffordable, or just unavailable -- and these workers are usually women (Hofferth & Collins 2000). Periods of non-employment lead to lower wages because of "skill depreciation," loss of seniority, and sometimes being less likely to receive further training or mentoring due to questions of commitment (Kimmel 2006, p.79).

In other words, childcare allows mothers to keep showing up at work and not have to leave jobs to care for their children. That means their wages won't be damaged for the theoretical loss of skills during those gaps.

The wage gap is also perpetuated by occupational segregation by gender. IWPR's research shows that "irrespective of the level of qualification, jobs predominantly done by women pay less on average than jobs predominantly done by men." In fact, female-dominated occupations make only 66.9 percent of the wages in male-dominated ones at high-skill level, 79.8 percent at the medium-skilled level, and 73.8 percent at the low-skill level. Yet while there was a steady trend toward better integration of women into men's fields (and vice versa) during the 1970s and 80s, there hasn't been any progress since the mid 1990s.

It would be nice if we could just enforce existing laws, get better informed, and therefore make the gap disappear. But the wage gap is far too entrenched for that. It will take addressing underlying issues women face in the workforce -- like union representation, work-family policies, and gender segregation -- to make progress on the pay gap.

Bryce Covert is Editor of New Deal 2.0.

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How Government Decides Which Workers Deserve Rights

Feb 1, 2012Mike Konczal

It used to be that white men had steady employment and all the government protection that came with it while minorities and women were stuck with precarious jobs. Now we're all vulnerable.

It used to be that white men had steady employment and all the government protection that came with it while minorities and women were stuck with precarious jobs. Now we're all vulnerable.

Malcolm Harris has a New Inquiry essay on the movie Sleeping Beauty (2011) and the feminization of precarious labor. A lot has been written on precarious labor recently, including both John Schmitt's book review in Dissent and Bhaskar Sunkara's critical response. I want to elaborate on this, since looking at gender and precarious work leads to an examination of a favorite topic -- the relationship between pity-charity liberalism and unconditional, universal programs related to economic security. A perfect example is how labor in the New Deal was treated differently by gender. The wedge between the two groups illuminates the difficulty in bringing economic justice to the 21st century. Precarious, vulnerable work was once relegated solely to women, but in this day and age more and more of us will fall into that category.

For Harris, the precarious worker is "indebted, insecure, vulnerable." If the classic notion of a worker "relies on having a bargaining place at the table with the boss," then precarious workers aren't workers (even though all they do is work or try to cobble work together).

How is the work gendered? Harris focuses on gendered affect: "passivity and her eagerness to please, her vulnerability and blank demeanor would look incredibly strange on a young man. Her willingness to keep treading water without the promise of anything better to come, her ability to communicate nonthreateningly and stay quiet at the right times are parts of what Nina Power describes in the chapter 'The Feminization of Labor.'"

But there's an institutional way to think about how the precarious nature of gender and work is both reflected in and amplified by governmental regulatory regimes, and how the future looks bleak in terms of bending those regimes toward just ends. Suzanne Mettler's Dividing Citizens: Gender and Federalism in New Deal Public Policy (1998) is useful for this conversation. (Mettler, a political scientist and recent author of The Submerged State, is a favorite around here -- III, -- and recently joined our think-tank neighbors at the Century Foundation as a fellow.)

To set up the problem, Seth Ackerman has recently discussed universal programs in the context of the Tea Party's war against the state:

...[I]t’s indisputable that Tea Partiers make some kind of conceptual distinction between universal programs like Social Security and Medicare and other government programs. But this says less about the Tea Party than it does about universal social programs. It is easy for liberals to point to the Tea Partiers and call them bigots because they make a distinction between 'people on welfare' and 'normal people.' But in fact it’s the state that made the distinction first. When the state operates a means-tested or other conditional program, it inspects each citizen and stamps him or her as belonging to one category or the other... Political scientists have long known that something almost alchemical happens to public opinion when a universal, as opposed to a mean-tested, welfare program is established.

Mettler argues that this distinction comes out of the dual administrative nature of the New Deal. Part of the New Deal was to be administered by newly created federal government programs, while another part was to be administered by local and state authorities. It just so happened that the federal government's role regulated the work and lives of white men, while the state and local role retained authority over women and minorites. Keeping part of the New Deal's welfare state and floor of economic security administered at the state and local level was predicated intellectually on Brandeis' notion of the states as laboratories of democracy and politically on getting Southern white supremacists to endorse the New Deal. This meant that how people realize economic freedom could be maintained and expanded through illiberal means.

Remember that just three years after the Lochner case, with a Supreme Court hostile to all economic regulations, it made an exception to maximum hours regulations for women. Why? In 1908, the Court ruled in Muller v. Oregon, "That woman's physical structure and the performance of maternal functions place her at a disadvantage in the struggle for subsistence is obvious...as healthy mothers are essential to vigorous offspring, the physical well-being of woman becomes an object of public interest and care in order to preserve the strength and vigor of the race." These are the terms on which economic regulation could exist -- protecting essentialist visions of a women's place.

Mettler argues that "programs geared toward men became nationally administered programs and those aimed toward women retained state-level authority." This welfare state led to citizens becoming "divided by gender between two different sovereignties that govern in very different ways." As she says:

Click here to buy Senior Fellow Richard Kirsch’s new book on the epic health care reform battle, Fighting for Our Health.

What it meant to be an "American citizen" meant very different things to the retired male breadwinner, who came to expect his monthly social security check from the national government, and to the poor mother who hoped that the social worker assigned to evaluate her eligibility for a meager welfare check would find her child-rearing and housekeeping efforts worthy. The first was treated with dignity and respect, as an entitled person; the latter, with suspicion and scrutiny.

Mettler maps out a 2X2 grid, dividing out New Deal programs:

The crucial point is that liberal inclusion was based on long-term, full-time work for a single employer. If you had a job along those lines --and these jobs were held by white men at that time -- then you were included in a regime of universal economic security. Short-term, part-time work for multiple employers -- work done by women and minorities -- falls through the cracks into a patchwork of state and local governance. That governance bases inclusion on hierarchical ideals invoking republican notions of where a person stood in his or her community. The notion of the "deserving poor" comes out of this relationship. Aid to Dependent Children (ADC), for instance, was predicated on single mothers being able to retain their "natural" work as housewives and child-raisers. ADC's spot inspections of single mothers for "male callers" gives you a sense of how this played out -- as Mettler notes, "officials monitored and regulated women's moral character."

Progress was made on these New Deal programs up through the 1970s. But there's been significant rollback over the past 30 years. The call to "means-test" social insurance programs, Ending Welfare as We Know It by block-granting welfare's administrative role back to the states, the battles over block-granting Medicaid and privatizing Social Security and Medicare -- all have shifted the momentum in the opposite direction. But where does this leave us now, especially in regard to precarious labor?

I asked Dorian Warren, Columbia political scientist, Roosevelt Institute Fellow, and union expert, about where this stands. As he puts it:

Add up the Mettler argument with Hacker's notion of "policy drift," and most New Deal social policies (especially the FLSA and the NLRA) are outdated and obsolete. They were crafted with assumptions about work and the nature of the economy in mind: an agricultural and industrial economy, where workers had long-term attachments to one employer. That's no longer the case, and labor and employment laws haven't caught up to the new employment relationship. Long story short, we don't have the adequate legal structures to deal with this new employment environment.

The battle to move the welfare state to the federal level, where it could be administered inclusively and universally, was an intellectual and political battle waged within the New Deal. How is this playing out in the Obama administration? I'll eventually build a full case against the "nudge" theory of the administrative state, but for now a theory of using subtle and unconscious government techniques to help people work better within "choice architectures" isn't up to the challenge of recreating a regulatory environment for a new age.

For insight into how the current administration's approach is playing out in this model, take a look at the administration of health care reform. I asked Richard Kirsch, recent author of Fighting for Our Health and Roosevelt Institute Senior Fellow, about the federal/local administration of health care reform. He responded:

The House bill set up a strong federal exchange and let the states do their own only if their exchanges had stronger consumer protections. However with the Senate bill -- the law we have now -- states can set up very weak exchanges. And the insurance industry has lots of clout at the state level. The best hope is that there will be a strong federal exchange for states that don’t set up their own. But that will only be true if HHS creates one.

So we have an outdated regulatory regime, an intellectual climate geared towards local, illiberal control, and the application of economic freedoms designed to keep women yoked to essentialist and moralistic discoures. A "polarizing" workforce means that the labor market, without significant reform, will take on an exaggerated version of the split we saw in the New Deal, with the precarious work falling into a patchwork administration system of moralizing and without opportunities to organize.

Mike Konczal is a Fellow at the Roosevelt Institute.

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Jeff Madrick and Tom Ferguson Sound Off on Real Messages of the SOTU

Jan 27, 2012Bryce Covert

After Obama's State of the Union on Tuesday, Roosevelt Institute Senior Fellows Jeff Madrick and Tom Ferguson took to the airwaves to dissect it. Was there substance behind the soaring rhetoric? Can the proposed policies really solve our economic ills?

Jeff Madrick joined Eliot Spitzer on Keith Olbermann's Countdown, and his analysis could be summed up as: "It was a tougher speech than I expected."

After Obama's State of the Union on Tuesday, Roosevelt Institute Senior Fellows Jeff Madrick and Tom Ferguson took to the airwaves to dissect it. Was there substance behind the soaring rhetoric? Can the proposed policies really solve our economic ills?

Jeff Madrick joined Eliot Spitzer on Keith Olbermann's Countdown, and his analysis could be summed up as: "It was a tougher speech than I expected."

Despite what some naysaying economic advisers may be telling President Obama, "he said forget about all those constraints," Jeff pointed out. "Let me go after the Chinese, let me develop some tax breaks, let me develop some tax penalties." Those FDR fans among us may remember his famous welcoming of Wall Street's hatred, a stance Obama has mostly shied away from. Yet, as Jeff notes, not only did he go after Republicans in Congress and big oil, "he said some pretty nasty things about Wall Street."

His policy proposals were important too, Jeff said. "Few things are as unambiguous as a need as updating the American infrastructure," and that was a big part of his "constant mention of jobs." Plus there was a heavy emphasis on bringing back manufacturing, although the question remains as to whether that's really possible.

Meanwhile, Tom Ferguson, while "intrigued" by some of the policies, was "underwhelmed" overall. He told Paul Jay of the Real News Network that "when you start to look at the details" of Obama's proposals, they're "almost meaningless."


More at The Real News

Take the plan to have a massive mortgage refinancing program. That could be "a really striking thing and it would likely have a huge effect on the economy," Tom said. But "their record in the last three years is they keep announcing programs and they all fail." Plus the taskforce on mortgage abuses "looks to me like an effort to to rein in the attorneys general" at the state level, he said.

Things were worse when it came to the "utter tameness" of the ideas around money in politics, Tom said. While banning Congress from insider trading is a good idea, "he's not really touching the essence of the money in politics problem," he points out. "He's basically punted on that one." What could he have proposed that would work? "You could do a lot by simply making the federal election commission a serious part of the civil service to get it out from under its ridiculous domination by Congress," Tom suggests. It's not just Citizens United that should be on reformers' radars.

And overall, while some of the economic policies may sound good, the underlying push from the administration for austerity and a focus on the deficit went unaddressed. "My guess is that these folks are not planning to change course on the economy," he concludes.

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Obama Rediscovers FDR's Aggressive Economic Policy

Jan 26, 2012David Woolner

By telling the story of post-War America's prosperity in the State of the Union, President Obama highlights a path we should take today: forceful government action.

By telling the story of post-War America's prosperity in the State of the Union, President Obama highlights a path we should take today: forceful government action.

In his annual State of the Union Address, President Obama spoke of the generation of Americans who "triumphed over a depression and fascism" to build "the strongest economy and middle class the world has ever known." He made reference to his grandfather, a veteran of World War II, who returned from combat and went college on the G.I. Bill. He also referenced his grandmother, who worked on a bomber assembly line as "part of a workforce that turned out the best products on earth." Together, he went on, they lived with "the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement."

This story is typical of the millions of Americans who struggled through the twin crises of the 1930s and 40s, when the United States was transformed from a country brought to its knees by fear and economic paralysis to the single most powerful nation on the planet. But contrary to popular myth, this transformation -- which included the birth of the modern middle class -- did not take place by accident or miraculously emerge as the result of the initiative of millions of "rugged individualists." It came about because, under the leadership of Franklin Roosevelt, the American government pursued policies that directly benefited working Americans.

The G.I. Bill is an excellent example of this. Under its terms, returning veterans did not just receive a better shot at a job thanks to tax credits offered to companies which might hire them, but a host of concrete benefits. They included full tuition, books, and living expense payments for those veterans wishing to pursue a higher education; support for vocational training; guaranteed unemployment insurance; and low interest loans for the purchase of a home, small business, or farm. The impact of the G.I Bill on postwar America was enormous. Within the next seven years, for example, approximately 8 million veterans would take advantage of its education benefits. As a result, millions of Americans who might never have dreamed of going to college were able to do so; and millions more would enhance their earning power and job prospects through the vocational training and other educational benefits the act provided.

And what of the president's grandmother, who worked on a bomber assembly line in Wichita? Again, there is much more to this tale than merely the story of a woman trying to help the war effort and make a living by working the night shift in a factory in Kansas. The president's grandmother was in fact part of one of the largest aviation projects in world history: the construction of the B-29 Superfortress. The B-29 was no ordinary aircraft. Aside from its enormous size, it was one of the most advanced aircraft of its day, with high performance engines, a pressurized cabin, an electronic fire control system, and remote-controlled machine gun turrets. To assist with its rapid development, the federal government poured over three billion dollars into the project. At its peak, the manufacture of the B-29 employed hundreds of thousands of workers in four major facilities, including the Wichita plant where 40,000 workers -- whose wages and benefits were secured through their union, the International Association of Machinists (IAM) -- churned out an average of four bombers a day. But even this is only part of the story. Overall, American aircraft production represented the single largest sector of the wartime economy, employing over two million workers, who turned out a staggering 125,000 aircraft at a cost of $45 billion -- roughly one fourth of the $183 billion the federal government spent on war production.

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Conservative critics of the New Deal are fond of saying that it did not work, that it was the Second World War, not Roosevelt's programs, that finally brought the Great Depression to a close. What they ignore is the fact that government spending in the Second World War represents one of the greatest federal stimulus packages in American history -- in essence, the New Deal on steroids. Nor will these same critics ever acknowledge that the postwar economic boom that followed, which built "the strongest economy and middle class the world has ever known," came right on the heels of a period of massive government spending and borrowing. Federal expenditures accounted for no less than half of the country's Gross National Product during that period. Even more shocking, from the free market fundamentalists' point of view, is the fact both the war and postwar period of economic expansion came about at a time when union membership and wages were at an all time high.

So when the president calls on us to embrace the "American promise" -- that through hard work the average American can do well enough to raise a family, own a home, send his/her kids to college, and put a little away for retirement -- we should remember that it was not just "American values" that made this possible, but American law. It was the passage of the National Labor Relations Act in 1935, for example, that guaranteed the rights of workers to form unions that led the IAM drive to organize the aircraft industry and ultimately improve the wages and benefits of the B-29 workers in Kansas. It was the passage of the Social Security Act in the same year that provided a measure of support for working Americans' retirement and our first national unemployment insurance program. It was the G.I Bill that helped train the thousands of engineers, architects, technicians, and skilled workers needed to meet the demands of the expanding postwar economy. It was the passage of the Glass-Steagall Act and Securities and Exchange Act in 1933 and 34 that helped protect poor and middle class families from the vagaries and greed of the financial sector.

Taken together,  these measures transformed the basic structure of the American economy. American workers -- consumers in today's language -- did not have to go into debt to purchase the goods and services they desired. Rather, they earned a wage high enough to make it possible for them to contribute to the expansion of the economy. And with Social Security and the financial and banking sector properly regulated, these same workers could even invest a small portion of their income in the stock market or put aside a small amount of money to help pay for their children's education. It was this basic economic structure, backed not by socialism but by laws, meant to curb the excesses of unfettered capitalism, which provided the American people with the one thing they wanted more than anything else: economic security.

President Obama is right to demand that we need to return to an economy where "everyone gets a fair shot...everyone does their fair share, and everyone plays by the same rules." But as we have learned at great cost, the forces of greed and avarice that brought on the Great Recession -- like the forces that brought on the Great Depression -- will not disappear of their own volition. If he really wants to meet the urgent need to restore a sense of balance to the American economy, put the millions of unemployed back to work, and provide a better future for our children, then he should intensify his demand that Congress act quickly and forcefully to do so. He might take counsel from FDR, who, in the darks days of 1932, observed:

The millions who are in want will not stand by silently forever while the things to satisfy their needs are within easy reach. We need enthusiasm, imagination and the ability to face facts, even unpleasant ones, bravely. We need to correct, by drastic means if necessary, the faults in our economic system from which we now suffer. We need the courage of the young. Yours is not the task of making your way in the world, but the task of remaking the world which you will find before you. May every one of us be granted the courage, the faith and the vision to give the best that is in us to that remaking.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute. He is currently writing a book entitled Cordell Hull, Anthony Eden and the Search for Anglo-American Cooperation, 1933-1938.

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Was the Womancession Addressed in the SOTU?

Jan 26, 2012Bryce Covert

Beyond some symbolic gestures, keeping women employed may be fading from the president's radar.

In President Obama's speech before a joint session of Congress in September of last year, I didn't expect to hear much about the womancession. But I was pleasantly surprised. The plan he put forward had the womancession in its crosshairs: it included $30 billion to prevent up to 280,000 teacher layoffs, among other supports to keep women in the public sector in their jobs.

Beyond some symbolic gestures, keeping women employed may be fading from the president's radar.

In President Obama's speech before a joint session of Congress in September of last year, I didn't expect to hear much about the womancession. But I was pleasantly surprised. The plan he put forward had the womancession in its crosshairs: it included $30 billion to prevent up to 280,000 teacher layoffs, among other supports to keep women in the public sector in their jobs.

Government jobs are key to keeping women employed. During this weak recovery period, women have gained only three percent of the 1.4 million jobs added to the economy. And while men's unemployment rate rose dramatically during the recession, it's now fallen to a level where it may be converging with women's: men now stand at 8 percent while women are at 7.9. Public sector layoffs have had a lot to do with it: while women represent just over half of the public workforce, they lost 65 percent of the jobs cut. According to the White House itself, as of October nearly 300,000 education jobs had been lost, over half of all the job losses in local government. Women make up the overwhelming majority of teachers.

Obama's State of the Union on Tuesday took a different approach. Teachers were lauded for the difficult tasks they perform everyday, sometimes dipping into their own measly pay to buy classroom necessities. But the focus was mostly on improving education, not on helping teachers avoid getting laid off. Education is without question an issue begging to be addressed in this country. It's vital we keep investing in it in order to have a skilled workforce and spread equality of opportunity. But the issue of employment was off the docket.

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Women have also been hemorrhaging jobs in the private sector, a fact that won't be addressed by his focus on bringing manufacturing back. Those manufacturing jobs are going to men. Symbolically, however, there was a nod toward some women who have been losing a huge amount of the private sector jobs: secretaries. As of July, women had lost a total of 925,000 jobs as office and administrative support, while men had gained 204,000, even though women make up 75 percent of these jobs.

Warren Buffett's secretary was in attendance, getting a long time in the camera's spotlight, although she was there as an example of everyday Americans who pay lower tax rates than those with lots of investments. But as Addie Stan tweeted during the speech, it was poignant to have a secretary stand in as an example of working Americans. Even if the fact that they're losing jobs wasn't mentioned, we should keep them in mind when we talk about the working class.

He also mentioned the gender wage gap, an issue pressing down on women in tough economic times. Yet it only warranted a quick reference. It's not the sort of problem that can be solved just by naming it.

Obama's renewed focus on fairness is refreshing and important. Women have been waiting for economic fairness for a long time. Many of the policies put forward on Tuesday are important and, if enacted, will help the economy for men and women alike. But the womancession may be slipping off his radar.

Bryce Covert is Editor of New Deal 2.0.

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