What Will Obamacare Mean for the Low-Wage Work Crisis?

Jun 18, 2013Richard Kirsch

New health insurance marketplaces will make affordable care accessible to millions, but low-wage employees of big businesses may be left out.

One of the biggest issues that the Affordable Care Act (ACA) is meant to tackle is the lack of health coverage among low-wage workers. While there is good news for many low-wage workers in the new law, many others will still find themselves locked out of access to affordable coverage. Solving their concerns will be one more part of the huge challenge of confronting the power of mammoth low-wage employers in the new economy.

New health insurance marketplaces will make affordable care accessible to millions, but low-wage employees of big businesses may be left out.

One of the biggest issues that the Affordable Care Act (ACA) is meant to tackle is the lack of health coverage among low-wage workers. While there is good news for many low-wage workers in the new law, many others will still find themselves locked out of access to affordable coverage. Solving their concerns will be one more part of the huge challenge of confronting the power of mammoth low-wage employers in the new economy.

There has been a lot of coverage about the potential for fast food chains and other employers to cut the hours of some of their employees to under 30 a week in order to avoid having to offer them health coverage. To the extent that employers do cut back hours, it will accelerate a long-trend toward part-time low wage work; part-timers increased from 17 percent to 22 percent of the workforce just from 2007 to 2011.

The surge in part-time work is one aspect of the broader increase in low-wage work. Most of the jobs coming out of the recession are low-wage, which has hastened a trend going back 30 years of a growing number of low-wage jobs with no health benefits. The powerful eroding of good jobs is the greatest threat to broadly-shared economic prosperity. It destroys any promise of people living a middle-class life style, creates a two-tiered society, and undercuts the consumer buying power needed to move the economy forward.

The low-wage economy means more than just low wages. Post-World War II jobs, which came with employer-provided health coverage and a pension, are fast disappearing. Now more than four-in-ten workers do not get health coverage on the job. This includes many employees of small businesses, which do not offer any health coverage. It also includes millions of employees of large businesses, who either are not offered health coverage or can't afford the premiums.

Enter Obamacare. The good news in the ACA for low-wage workers who work for small employers (those with fewer than 50 full-time workers) is that many will have access to affordable health coverage for the first time through the new health insurance marketplaces. They will be able to sign up for subsidies that limit how much they pay in premiums to a percentage of their income and get plans with good benefits and moderate out-of-pocket costs. Those with incomes below 133 percent of the federal poverty level (about $15,000 for an individual) will be eligible for Medicaid in states that agree to expand coverage.

But for those who work for bigger employers – and some two-thirds of minimum wage jobs are at employers of 100 or more – it is not clear whether the ACA will deliver on its promise of affordable coverage. Ironically, part-time workers may come out ahead, with a much better chance of affordable coverage, while full-time low-wage workers may find coverage out of their financial reach.

Millions of people who don’t work more than 29 hours a week for any one employer will be eligible for affordable subsidized coverage through the new marketplaces. And even if employers trim back some workers' hours to get below the 30-hour mark, those workers may end up better financially and gain affordable coverage for the first time.

There will also be some employers who increase the hours of part-time workers to above 30 a week, as the Cumberland Farms stores, which employ 4,500 full-time workers and 2,700 part-timers, plan to do. Noting that  full-time workers stay with the business three to four times longer than part-timers, the Cumberland Farms CEO explains, ““Longer-tenured workers deliver a better experience for the customer.” According to the payroll-processing firm ADP, other businesses are also likely to encourage more workers to become eligible for employer coverage.

But it is not at all clear that full-time low wage workers for bigger employers will be able to get affordable coverage. That is because the big business lobby exercised its muscle in shaping the ACA in the Senate Finance Committee. All the law requires is that employers offer individual employee health coverage that does not cost more than 9.5 percent of an employee’s income in order for the business to escape paying a $2,000-to-$3,000 penalty. In addition, the ACA allows employers to offer plans with very high out-of-pocket costs.

Make no mistake about it; 9.5 percent of wages is a lot for anyone to pay for health insurance, and it is a huge amount for low-wage workers. By comparison, an employee who makes $12 an hour and works a 35-hour week would pay about 6 percent of his or her income on health insurance in the new marketplaces, for coverage which is almost certain to have better benefits and lower deductibles and co-payments.

And here’s the kicker: as long as a worker is offered the less-than-9.5-percent-of-income coverage at work, that worker is not eligible for the much better coverage in the marketplace. And if the worker decides that she can’t afford the premiums, she will be have to pay a penalty for not being insured.

The big outstanding question is, what will the bigger low-wage employers do? They could choose to offer affordable coverage to their employees. But the big fast food chains, retail giants, and box stores have a history of offering several levels of coverage to their employees, including bare-bones plans targeted at their lowest paid workers.  

Putting this all together, here is what health coverage for low-wage workers may look like after a couple of years of implementation of Obamacare: good coverage for those who work for smaller businesses and who don’t work more than 29 hours a week for any one employer, but either no coverage or coverage that is costly to buy and to use for many people who work more than 30 hours a week for the biggest low-wage employers in the country.

Seen in this light, Obamacare is one more step toward both improving and exacerbating the low-wage work crisis in the nation. The movement away from employer-provided health coverage is a huge step forward in creating a more just health care coverage system. But justice for low-wage workers at big businesses will mean confronting the power of companies like WalMart, McDonald's, and Bank of America (with its low-wage tellers). This is the same challenge we face in taking the other steps needed to modernize labor standards for the 21st Century: a higher minimum wage indexed to inflation, paid sick days and family leave, and overhauling labor laws so that workers’ rights to form unions is restored. It is fast becoming central to the fight for a new economy that works for all Americans.

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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Daily Digest - June 18: The Hunt for Good Jobs Continues

Jun 18, 2013Rachel Goldfarb

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“This was really eye-opening for me”: Fed’s Raskin Shocked at Low Quality of Work at Local Job Fair (Reuters)

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“This was really eye-opening for me”: Fed’s Raskin Shocked at Low Quality of Work at Local Job Fair (Reuters)

Pedro da Costa notes that Sarah Bloom Raskin's comments at A Bold Approach to the Jobs Emergency on June 4th were surprisingly personal. Raskin's trip to the job fair helped her to understand just how difficult things are in today's job market.

Minimum Wage: Catching up to Productivity (Democracy)

John Schmitt suggests plans to increase the minimum wage so that low-wage workers get a piece of the pie from our massive productivity gains. Linking the minimum wage to CPI isn’t the solution, because that would just maintain the status quo.

  • Roosevelt Take: Watch John with Brink Lindsey, Ai-jen Poo, and Roosevelt Institute CEO and President Felicia Wong on the panel "Is Education the Answer?" at A Bold Approach to the Jobs Emergency.

Dems Rebrand Minimum Wage, Sick Leave As Women's Issues To Pressure GOP (HuffPo)

Laura Bassett and Dave Jamieson see these efforts as an intentional push against the GOP, since the Democrats have such large margins with women voters. By making economic issues into gender issues, they are already in the lead for voter approval.

Florida’s Governor Signs Business-Backed Bill Banning Paid Sick Leave (ThinkProgress)

Bryce Covert reports that Rick Scott has signed a bill that bans local governments from implementing paid sick leave legislation. Apparently Floridians are best served by bringing their infectious diseases to work.

Walmart Bill Vote Bumped to Next Week; Cue the Lobbyists (Washington City Paper)

Aaron Wiener writes on a D.C. City Council bill that would require large retailers whose workers are not unionized to pay a living wage of $12.50 per hour. Unsurprisingly, a Walmart spokesman doesn't like the exemption for organized labor.

Volunteering Lifts Job Prospects of the Jobless (WaPo)

Michael Fletcher reports on a federal study that provides data for something many have assumed: volunteering increases an unemployed person's chance of finding a job by 27%. For those without high school diplomas, who really struggle to find work, the effect is even greater.

The Current U.S. Economy: Text and Subtext (NYT)

Jared Bernstein thinks that the relatively positive IMF assessment of the U.S. economy requires annotation, which reveals the underlying struggles of the middle and lower classes and the problems with our current economic policy.

Will the Robots Steal Your Paycheck? BREAKING: They Already Have (The Atlantic)

Jordan Weissmann examines a study that shows that in countries where the cost of doing business has dropped, worker share of GDP fell as well. He argues that we need to consider how this change affects workers who are being replaced by technology.

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The U.S. Lacks Good Jobs, Not Good Ideas

Jun 17, 2013Jeff Madrick

A Bold Approach to the Jobs Emergency brought together leading policymakers, thinkers, and activists to discuss how we can get the U.S. to full employment and create more good jobs, but that was only the beginning of the conversation.

A Bold Approach to the Jobs Emergency brought together leading policymakers, thinkers, and activists to discuss how we can get the U.S. to full employment and create more good jobs, but that was only the beginning of the conversation.

Our jobs conference in early June covered a wide variety of potential solutions to what we call the jobs emergency, from major macro policies to local activist ones. Given how little is done in Washington to solve the problem, it is stunning how many good ideas are out there.      

Senator Tom Harkin, who has sponsored the most comprehensive jobs bill in Congress, set the stage with a keynote address that made no bones about it: we are not creating enough good jobs in America -- not by a long shot. Perhaps his key point of many was that we don’t have to choose between closing the budget deficit and making goods jobs. “Smart policies designed to reduce unemployment will also act to reduce the deficit,” he said. If we grow, create goods jobs that pay high wages, and encourage investment, the deficit will also fall, as it always has before when economies recovery strongly. It’s a win-win.

But Washington is stymying progress. That's why, he said, we must end the filibuster.

Alan Blinder, former vice chairman of the Federal Reserve, assured us there is no deficit problem for the next 10 years, so we shouldn’t be focusing on it. Several of our macroeconomists called for much more fiscal stimulus.

One cause of job deficits may well be Wall Street itself. Damon Silvers of the AFL-CIO talked about how Wall Street has misdirected investment from productive uses. Rosemary Batt of Cornell University discussed how privatization puts downward pressure on wages and jobs. Bill Lazonick of the University of Massachusetts Lowell stressed how cash-rich companies use money to buy back shares rather than invest in America.

Participants in the conference talked about creating jobs through infrastructure investment, community investments, and outright job creation by the federal government a la FDR. Others discussed the need to raise labor standards and enforce the existing labor laws.

Local activists offered refreshing perspective. Maya Wiley of the Center for Social Inclusion said we must not think that one-size-fits-all solutions are good enough. We have to bore down to the particulars. Ai Jen Poo wondered why we have so many unemployed when we have so many needs. For example, there is a desperate need for adequately paid care workers. Why can’t we get supply and demand to come together?

And Federal Reserve Governor Sarah Bloom Raskin told us of her disappointing experience at a local jobs fair, where she saw the poor quality of jobs being offered. She asked the room why so many poor jobs were being created, and how long will this go on.

Congresswoman Jan Schakowsky, who also had a job creation bill before Congress, summed up the issue. “This is the seminal battle of our time," she told the conference. “A battle for our economy, a battle for fairness, a battle for the heart and soul of our country. This is a battle that has to be waged all around the country.”     

We at Rediscovering Government will make the jobs emergency our number one priority. Videos of the conference panels and keynotes are now available on our web site. We will also publish transcripts and eventually produce a book on the best jobs ideas in the country. We will provide background papers on policy proposals we make. Everyone in the nation should have a decent job if he or she wants one. As far as we are concerned, it’s one of our inalienable rights.

Roosevelt Institute Senior Fellow Jeff Madrick is the Director of the Roosevelt Institute’s Rediscovering Government initiative and author of Age of Greed.

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Daily Digest - June 14: When Labor Laws are Applied

Jun 14, 2013Rachel Goldfarb

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New York Aims to Treat Underage Models as Child Performers (NYT)

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New York Aims to Treat Underage Models as Child Performers (NYT)

Eric Wilson reports that the New York State Legislature has approved a measure that changes labor laws affecting fashion. It's possible that this could force an aesthetic change on the industry, which produces clothes for women and shows them on girls.

Congress Turns Its Back on Rural America (Bill Moyers)

Greg Kaufmann continues to examine the effect of sequestration across the country, this time with an emphasis on rural areas. If the only Head Start center in a small town in Kansas is closed, the nearest option will be many miles away.

The Student Debt Crisis Is Everyone's Problem (The Nation)

Robert Applebaum reminds us that higher education is not a product to be sold but a public good and an investment in the country's future. The entire economy is dragged down when graduates lack disposable income due to their loan payments.

The Two Centers of Unaccountable Power in America, and Their Consequences (Robert Reich)

Robert Reich compares the powers of the intelligence community to that of Wall Street and the big banks. He doesn't trust either of these groups with the power they have, but the law provides little accountability for any of their actions.

Fortress Unionism (Democracy)

Rich Yeselson lays out a history of private-sector unions in the United States, with suggestions for what unions can do today to maintain their work despite an unfriendly legal climate and low union participation.

Are unpaid internships illegal? (WaPo)

Dylan Matthews discusses this week's ruling that Fox Searchlight violated minimum wage and overtime laws with its interns, and questions how it will affect for-profit versus non-profit sectors. Media coverage of current cases already has many companies reviewing their internship programs.

Sympathy for the Luddites (NYT)

Paul Krugman argues that as disruptive technologies eliminate jobs at all levels of skills and education, we must question whether education is still a solution to inequality. He says no, and that a stronger social safety net is needed to maintain the middle class.

Court: Human genes cannot be patented (CNN)

Bill Mears reports on yesterday's Supreme Court ruling, which concerned one of the ultimate cases of patent trolling: a company patenting a human gene. In this case, it was the breast cancer gene, which Myriad developed the first test for but certainly did not create.

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Daily Digest - June 11: Selling You Cracker Jack For Peanuts

Jun 11, 2013Rachel Goldfarb

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Take Me Out to the Ball Game — But Pay Me a Living Wage (Bill Moyers)

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Take Me Out to the Ball Game — But Pay Me a Living Wage (Bill Moyers)

Michael Winship writes on the side of America's pastime that isn't making the big bucks: concession workers. The company contracted by the San Francisco Giants pays their staff only $11,000 per year and puts impossible limits on obtaining benefits.

Why a Romney economic adviser wants the government to just hire people (WaPo)

Dylan Matthews spoke to Kevin Hassett, economic advisor to Republican candidates in the past four presidential elections, who has come to realize that unless the government intervenes, the long term unemployed are going to stay that way.

America Just Loves Firing Government Workers (The Atlantic)

Jordan Weissman is tired of watching Washington sabotage the economy by laying off federal employees. For every ten jobs we've added in the last three months, the government has shed one.

No, Public Sector Jobs Do Not Crowd Out Private Sector Ones (On The Economy)

Jared Bernstein has run the numbers, and there's no proof that creating more government jobs would reduce growth in the private sector. That raises the question: why aren't we creating more government jobs so that more people are employed?

Unemployment Benefits and Actual Unemployment: An Analogy (NYT)

Paul Krugman makes an excellent analogy between unemployment benefits and speed limits. We would not expect less rush hour traffic if the speed limit were raised from 55 to 65, so why do people think cutting benefits will reduce unemployment?

I Would Desire That You Pay the Ladies (TAP)

E.J. Graff wonders how we are still dealing with the wage gap, fifty years after the passage of the Equal Pay Act. One option she suggests is that our real societal taboo is money, and perhaps by not discussing it women don't notice that it's missing.

The Quiet Closing of Washington (Robert Reich)

Robert Reich argues that as partisan conflict halts Congress, partisan control in the states is creating a deepening policy divide between red states and blue states. He's worried that this split will make it hard to see "one nation."

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Bored by the Jobs Numbers? We Need a Bold Solution.

Jun 7, 2013

This morning's new jobs numbers contained few surprises, and given the mediocre, low-wage recovery the U.S. has experienced for the last few years, that's a problem. On Tuesday, the Roosevelt Institute's Rediscovering Government initiative hosted "A Bold Approach to the Jobs Emergency," a daylong conference that discussed how this crisis of prolonged unemployment and underemployment came about and how we might fix it.

This morning's new jobs numbers contained few surprises, and given the mediocre, low-wage recovery the U.S. has experienced for the last few years, that's a problem. On Tuesday, the Roosevelt Institute's Rediscovering Government initiative hosted "A Bold Approach to the Jobs Emergency," a daylong conference that discussed how this crisis of prolonged unemployment and underemployment came about and how we might fix it. Roosevelt Institute Senior Fellow and Rediscovering Government Director Jeff Madrick gave Next New Deal readers a preview of the discussion earlier this week, and Senior Fellow Richard Kirsch noted that the focus was not just on more jobs, but on quality jobs: “jobs that provide decent pay and benefits and the flexibility to be able to take care of one’s family.”

The conference was covered on the Campaign for America’s Future blog, where Derek Pugh provided a comprehensive summary of the day. MarketWatch also published dueling op-eds in response to the conference, with panelist Diana Furchtgott-Roth of the Manhattan Institute arguing that too much emphasis was placed on government and journalist Rex Nutting contending that the structural impediments to hiring that Furchtgott-Roth highlights have been around for ages -- and that in the end, we need government stimulus to create new jobs and increase demand.

Federal Reserve Governor Sarah Bloom Raskin’s comments proved to be a highlight of the conference. Governor Raskin spoke on the lunch plenary, “Paving the Way for Good Jobs,” moderated by Roosevelt Institute | Pipeline Fellow Nona Willis Aronowitz. She discussed how she realized that most of the jobs being added to the economy are terrible after a visit to a local job fair. Reuters, the Wall Street Journal, and Huffington Post all covered Raskin’s presence, and Reuters also noted that the stock market was jittery about what Raskin might say – perhaps more evidence of the “Jurassic Park problem” with Fed policy that Roosevelt Institute Mike Konczal recently pointed out.

Stay tuned for video from the event coming soon, and keep following the #jobsemergency conversation on Twitter!

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Daily Digest - June 7: Seeking Job Growth, Fair Wages and Benefits Included

Jun 7, 2013Rachel Goldfarb

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Why the Right is Wrong About Jobs (Market Watch)

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Why the Right is Wrong About Jobs (Market Watch)

Rex Nutting argues that the structural difficulties in hiring, like cost of labor, taxes, and (according to its detractors) Obamacare, don't explain the lack of job growth right now. The Keynesian model seems to make more sense: lack of demand, lack of new jobs.

Fix Bankrupt Student Loan Proposals (WaPo)

Katrina vanden Heuvel doesn't understand how legislators could fail to take action to prevent student loan interest rates from doubling. While the Fed gives discounted loans to the big banks, Congress can't seem to get around to helping students.

Fed Reports American Households Have Regained Ground Lost in the Recession (NYT)

Nelson Schwartz notes that things are looking up according to a new Fed report that shows the net worth of American households is higher than before the recession. But once those numbers are adjusted for inflation, the good news shrinks along with Americans' bank accounts.

When Patents Attack (NPR)

Ira Glass and the "This American Life" team look into the world of patent lawsuits, where companies use the vague language permitted by our patent system to make millions. The defendants include businesses like coffee shops, because offering wifi is patented.

New Report Shows How Walmart Forces Its Employees to Live on the Dole (MoJo)

Thomas Stackpole reports that we finally have data backing up the claim that Walmart lets taxpayers subsidize its operating costs. Walmart's 300 Wisconsin stores cost taxpayers $67.5 million per year in benefits to employees and their families.

Striking Workers Bring Bangladesh Safety Demand to Walmart Headquarters (The Nation)

Josh Eidelson continues his coverage of the OUR Walmart strikes leading up to the company's shareholder meeting today. The strikers emphasize Walmart's unwillingness to join the union-backed safety agreement in Bangladesh despite the deaths at Rana Plaza.

Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World (Bloomberg Businessweek)

Brad Stone says that Costco is proof that even discount retailers can be profitable while providing good jobs with fair wages and benefits. As we discuss raising the minimum wage and Walmart workers strike, Costco's model becomes even more important.

Young, Black, Gifted and Underemployed (The Root)

Edward Wyckoff Williams reminds us that some things aren't changing: unemployment and underemployment are dramatically higher for young people of color. Even highly educated African American young people find it disproportionately hard to find work.

 

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Daily Digest - May 30: Your Cable Package is Free Speech

May 30, 2013Rachel Goldfarb

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Comcast and Verizon’s Phony Free-Speech Claim (Bloomberg)

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Comcast and Verizon’s Phony Free-Speech Claim (Bloomberg)

Roosevelt Institute Fellow Susan Crawford knows that it's the cable and internet providers who are trying to limit speech through their control of what's available over their wires. Business decisions aren't free speech- especially when they limit fair competition.

Why the Shareholder Rescue Never Comes (ProPublica)

Jesse Eisinger explains why shareholders aren't going to solve Too Big to Fail. Shareholders want to see big risks and big returns- and as long as they can count on federal bailouts, that means they don't mind seeing big banks, either.

People Over Politicians: Spending Less on Elections Could Strengthen Unions (The Century Foundation)

Douglas Williams argues that unions are wasting money when they donate to campaigns, because even politicians who claim to be pro-labor work against them. Instead, they could invest in local organizing and actually achieve some change.

No cause for relief—austerity will indeed drag hard on the economy in 2013 and 2014 (Working Economics)

Josh Bivens thinks that other writers are too quick to assume that rising stock and housing prices and falling gas prices mean that austerity hasn't slowed our economy. With the job market remaining "dismal," he thinks the recovery hasn't even arrived.

More and more Americans are feeling the effects of the sequester (WaPo)

Brad Plumer looks at the results of a May ABC News/Washington Post poll, which shows that 37 percent of Americans say they've been impacted negatively by the sequester. That number can only grow as spending on vital services continues to shrink.

Children of the Great Collapse (TAP)

Jared Bernstein lays out how the stimulus helped bring children out of poverty, and how the end of the Recovery Act along with sequestration will put them right back in it. Nothing helps the country's long-term economic growth quite like cutting 50,000 spots in Head Start.

Why Can’t America Be Sweden? (NYT)

Tom Edsall examines the claim that Sweden's "cuddly capitalism" would not work in the United States, where our role as supposed innovation entrepreneurs requires a more cutthroat system. This sounds like an awfully convenient excuse to abandon those in need.

The Very Low Threshold For What Conservatives Consider “Reform” (Washington Monthly)

Ed Kilgore doesn't think that policy priorities are enough to differentiate conservative reformers. When the plan for "reform" is to cut taxes and reduce the social safety net, it's hard to see how conservative reformers can claim to support the poor -- or new ideas.

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Daily Digest - May 29: No CFPB Director For You

May 29, 2013Rachel Goldfarb

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The GOP doesn’t oppose Richard Cordray. It opposes his whole agency. (WaPo)

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The GOP doesn’t oppose Richard Cordray. It opposes his whole agency. (WaPo)

Roosevelt Fellow Mike Konczal explains why Republican opposition to the Consumer Financial Protection Bureau is based on falsehoods. Unfortunately, filibusters mean that Republican temper tantrums about the power of the CFPB translate to blocking any director.

Did I get the money-and-politics debate all wrong? (WaPo)

Ezra Klein responds to critiques of his own pieces on money and politics, including Roosevelt Institute Senior Fellow Mark Schmitt's take, which he mostly agrees with. Unsurprisingly, spending lots of time fundraising doesn't make for better legislators.

Walmart Workers Launch First-Ever 'Prolonged Strikes' Today (The Nation)

Josh Eidelson reports on the strikes in Miami, Massachusetts, and the Bay Area, which are the first multi-day strikes again Walmart. Worker-activist Dominic Ware's biggest fear? That his son will have to work for Walmart too.

Beware Capitalist Tools (Robert Reich)

Robert Reich doesn't understand why Forbes writers would argue that it's a bad thing for government to condition market access on the social benefits we receive from corporations. Why wouldn't we want to tell corporations to put jobs here?

Central Banks Act With a New Boldness to Revitalize Economies (NYT)

Binyamin Appelbaum, Jack Ewing, Hiroko Tabuchi, and Landon Thomas Jr. note that once-cautious central banks have become more aggressive in recent years, taking action to get their countries' economies moving while their governments are stuck on austerity.

When Sequestration Becomes Devastation (Bloomberg)

Evan Soltas wants us to look ahead to sequestration’s effect on the 2014 budget, because if we think things are bad today then we haven't seen anything yet. Next year’s cuts aren’t automatic -- the House gets to decide where to cut deeper.

Like a Bad Cough: Why Austerity Economics Lingers (HuffPo)

Steven Conn thinks the reason we can't get past austerity economics is that we're treating a set of moral propositions about wealth, self-denial, and work as hard science. But when something doesn't work in chemistry, the chemists start a new experiment.

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Creating Good Jobs is the Defining Issue of Our Time

May 21, 2013Richard Kirsch

On June 4th, the Roosevelt Institute will bring together leading thinkers, activists, and policymakers for A Bold Approach to the Jobs Emergency: Setting the Political Agenda for 2014 and 2016, a daylong conference in Washington, D.C. that will focus on America's desperate need for more and better jobs. Today, Roosevelt Institute Senior Fellow Richard Kirsch, who will take part in a panel on "Creating Momentum for More Good Jobs," explains why job quality is as important as job quantity.

On June 4th, the Roosevelt Institute will bring together leading thinkers, activists, and policymakers for A Bold Approach to the Jobs Emergency: Setting the Political Agenda for 2014 and 2016, a daylong conference in Washington, D.C. that will focus on America's desperate need for more and better jobs. Today, Roosevelt Institute Senior Fellow Richard Kirsch, who will take part in a panel on "Creating Momentum for More Good Jobs," explains why job quality is as important as job quantity.

What is the single biggest economic problem facing people early in this century? It is not the budget deficit or national debt. It is the eroding and disappearing of good jobs. People with good jobs – jobs that provide decent pay and benefits and the flexibility to be able to take care of one’s family – are the fuel of the economy and the basis for broadly shared prosperity. Good jobs, and the things that go with them – a good education, affordable health care, and a secure retirement – are the very definition of a successful economy.

The public gets it. When asked to identify “the single biggest problem facing this country today,” 40 percent answered “jobs and the economy.” Number two was “budget deficit/national debt,” at 6 percent.

Four years after the official end of the Great Recession, the real economy – not corporate profits or the stock market – remains stalled. The proportion of Americans working is the lowest in 30 years, or basically since women started entering the work force in large numbers. Most of the jobs that have been created since the recession pay low wages. Long-term unemployment also is at levels well above anything since the Great Depression. And income for all but the richest has gone down.

So why does Washington and elite discussion remain focused on the debt and deficit? And what will it take to move the politics of the nation to take on what the public correctly understands is the central economic issue?

The fundamental reason that good jobs is not the defining issue is that an economy in which some people have a lot while more and more scrape buy is working just fine for the wealthy and huge corporations that control our politics and media. Personally, the rich are doing better than ever, as their inflated pay and corporate profits are supported by the financialization of the U.S. economy, low-wage service sector jobs here. and low-wage manufacturing and importable services abroad. The middle class in the U.S. may be getting squeezed and shrinking, but it’s still broad and big enough to fuel demand for U.S. goods and services. The disasters to come from the lack of retirement savings, high student loan debt, and long-term wage stagnation are not stopping the rich from getting richer today.

The interest of the ruling elites has been powerfully popularized by the right’s highly disciplined, focused narrative on the national debt and budget deficits. While the motivation here is ideological – to shrink those government services and activities that improve social welfare or regulate the markets – the weapon has been convincing Americans that the national debt is an unconscionable burden on our children, that government deficits are as unsustainable as household deficits, and that taxes are paid to a wasteful, corrupt government. Instead, the right insists that businesses are the “job creators” and that any effort to interfere with what business thinks is best will put people out of work.

As a result, the great public concern about the lack of good jobs doesn’t translate into support for government action – or any action, other than to do your personal best and pray that things get better. People don’t believe that there are solutions for good jobs in a global economy. They certainly don’t see that government has a role in creating jobs or that tax dollars could be spent on effective job creation. And while they support regulations to improve job quality, they are very susceptible to pro-business arguments.

What do we do about it? Here’s an overview of a strategy. One, we need to make good jobs the central, driving focus of progressive discourse, just as the right has put deficits/debt/limited government at the center of their policy, politics, and communication. That requires clearly linking every issue to the need to create good jobs that will enable working- and middle-class families to have opportunity and security. In doing that, we need to be talking about good jobs in a multi-dimensional way. Good jobs are about having enough pay to support your family, flexibility to allow you to care for your family – from children to elders – and access to good, affordable education, affordable health care, and a secure retirement.

Two, we need to center our discourse on good jobs in a powerful, values-based story about how we create an America that works for all of us. This story starts with a vision of an America that provides liberty, justice, and prosperity for all. It reinforces the notion that people believe but rarely hear: working families and the middle class are the real engines of the economy. It provides examples from American history of how decisions we have made together built the great American middle class. And it follows those with a vision and example of how we can make decisions together in the 21st century to create good jobs for everyone in America. It clearly identifies who is responsible for the mess we’re in – the super-rich and corporations who game the system at our expense and buy off our government. And finally, the story empowers people as the heroes who can take action for change.

Third, we need to champion a program of policies that will work to create good jobs. We have policies and innovative ideas that will work today, many of which will be discussed on June 4th in Washington when the Roosevelt Institute holds a daylong conference on A Bold Approach to the Jobs Emergency. Certainly, we will need to continue to develop policy solutions that address major challenges like globalization and technology. But we should be clear that it is in our power now to redirect economic policy to dramatically improve the quality of the jobs Americans now hold and to create millions of new good jobs for people who are out of work.

Fourth, we need to organize campaigns for good jobs, starting with a focus at the local and state level. Even though municipalities and states don’t have as many resources as the federal government, there are policies that can be taken locally to create a new economic paradigm. The success of those policies will be more immediately visible to people. The lessons learned in building popular support for these policies will be transferable to other places and to the federal level.

Finally, we need to make good jobs a defining issue of the 2016 election. To reach that goal, we will need to do all of the above, with a strategy that brings the work together for the 2016 election. In 2014, we should focus on a few U.S. Senate and congressional elections to experiment with the best approaches. We can take a page from specific strategies used from 2007-2008, which made health care the central issue of the 2008 election.

American’s historical optimism is being deeply challenged by the squeezing, and indeed crushing, of the middle class. Our job is to rekindle that optimism and make it a powerful force for change. We can build an America that works for all of us by building a movement to demand good jobs for everyone. 

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.

 

Lab workers image via Shutterstock.com

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