Biden: Strong Unions Needed to Build Middle Class
The nation cannot rebuild its middle class without strong unions, Vice President Joe Biden said today. Biden said he and President Obama believe it is impossible to grow the middle class without growing unions.
Biden, who chairs the White House Task Force on Middle Class Families, met with a panel of scholars assembled by the Center for American Progress (CAP) and Economic Policy Institute (EPI) to discuss the challenges facing America’s middle class in the 21st century economy.
At the live webcast event, EPI President Lawrence Mishel said unions set standards in the workplace. Decent standards help ensure “employers are not competing to see who can make the jobs worst, but who can make the products better,” Mishel said.
‘Economy Track’ Tells Story Behind the Numbers
The nonprofit Economic Policy Institute (EPI) has launched an interactive tool for anyone interested in looking beneath current economic data to find out what’s really happening with jobs and the economy. The new online feature, “Economy Track,” offers easy-to-understand charts built on government statistics and enhanced with exclusive EPI data.
For example, Economy Track illustrates how unemployment is higher for African Americans and Hispanics than for whites, higher for men than for women, and much higher for blue-collar workers than for those with white-collar jobs.
Users can focus on unemployment and underemployment trends by state, race/ethnic group, gender, occupation and education level.
Today’s Health Care News
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Here’s the latest news from the battle for health care reform:
• While much of the media focuses on the Senate, the House bill is expected to be released tomorrow, with a vote coming soon. Call your members of Congress and ask them to support real reform.
• In the Washington Post, Harold Meyerson writes that a health care excise tax could hurt middle-class families because companies
have the power to impose health care costs and cutbacks on workers, who have little or no power to resist. if employers opt for cheaper policies to avoid the excise taxes on more expensive plans, their savings may not be passed on to workers as higher wages but simply kept by the employers. Out-of-pocket health costs for workers would rise, but into-pocket wage increases to cover those costs might not be forthcoming.
The senators’ version of health care finance assumes that workers will pocket the benefits of a cost-conscious system. The senators assume wrong.
Report: Unbalanced Immigration Enforcement Hurts All Workers’ Rights
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When Josue Diaz, an immigrant worker and his co-workers protested the inhumane and illegal working conditions at a construction site in Texas, their employer called local police and the Immigration and Customs Enforcement (ICE), a division of the Department of Homeland Security. But the law enforcement officials didn’t enforce the workers’ rights or penalize the employer. They arrested the workers.
Diaz’s experience is not unusual. According to a new report released today, the federal government’s immigration enforcement in recent years—including a heavy reliance on raids and often inadequately trained enforcement agents—has severely undermined efforts to protect workers’ rights, which in turn harms both immigrant and native-born workers alike.
The comprehensive report, “ICED OUT: How Immigration Enforcement Has Interfered with Workers’ Rights,” was prepared by the AFL-CIO, American Rights at Work and the National Employment Law Project (NELP). Drawing on case studies like Diaz’s from across the country, the report examines a series of alarming incidents between 2005 and 2008.
Taxing Benefits: The Wrong Way to Pay for Health Care
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One of the principles that must be at the heart of health care reform is making sure it’s paid for fairly. Unfortunately, some members of Congress are trying to fund it in the wrong way—by taxing working families’ health benefits.
The Senate Finance Committee’s bill, unlike the bills passed by committees in the U.S. House, relies on an excise tax on health coverage, starting in 2013, to fund health reform. That’s a short-sighted policy that could hurt millions of people that health care reform is supposed to help.
A new report by the Economic Policy Institute (EPI) shows that, under the current Senate Finance Committee proposal, the excise tax would hit about one-third of health insurance plans within the next decade. This could cause millions of middle-class families to suffer a tax increase or to get their benefits pared back, the report says.
To the extent that workers choose less expensive health plans for themselves and their families to avoid the excise tax, they will be faced with higher out-of-pocket costs. All else equal, lower premiums translate into less comprehensive coverage. Less comprehensive coverage often takes the form of higher deductibles, increased co-pays, higher out-of-pocket maximums, or other increased cost-sharing.
Jobs Crisis Will Affect Young Workers for a Lifetime, More Recovery Aid Needed
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Speaking at the second and final day of the Demos conference, A Better Deal 2009, Algernon Austin, an analyst at the Economic Policy Institute (EPI), said the U.S. economy was failing young people long before the current recession was officially declared. He called the prospects for young workers “bleak” and said the nation needs additional investment in recovery.
Even before the recession, we had a very weak economy in terms of job growth, economic growth—it was one of the historically weakest periods for job growth—and now we’ve been hit with the hardest recession we’ve seen since the Great Depression. For young people, this impact has been particularly difficult.
Dorgan: Financial Regulation Not a Four-Letter Word
Congress must pass strong, effective financial regulations to prevent another economic meltdown and to protect the American consumer, a leading senator said. Speaking this morning at the New America Foundation, Sen. Byron Dorgan (D-N.D.), said the nation’s economic wreckage can be traced back to the decision a decade ago to deregulate the financial system.
Not only did deregulation open up opportunities and incentives for risky banking behavior, but federal regulators who were supposed to be watching the financial industry weren’t doing their jobs, Dorgan said.
As early as 1994, Dorgan warned of the risks posed by one of the key ingredients in the recent financial collapse: the complex financial packages known as derivatives. In a Washington Monthly magazine cover story, “Very Risky Business,” he predicted the cascading failures of large lending institutions, the collapse of Fannie Mae, taxpayer-funded bailouts.
New Trade Policies Needed to Protect Workers
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Columbia University law professor Mark Barenberg proposes new strategies to ensure that trade agreements protect and advance workers’ rights and says “we should incorporate labor rights and standards in the fundamental ground rules of the new global economy.”
Barenberg is author of a report released today, “Sustaining Workers’ Bargaining Power in an Age of Globalization.” In the report, he argues that trade pacts need rules to allow human rights organizations to constantly monitor whether U.S. trading partners actually comply with international labor rules.
The report, released by the Economic Policy Institute (EPI) as part of its Agenda for Shared Prosperity, suggests specific policies that would result in the same type of tough enforcement rules to protect workers’ rights that now exist for violations of property rights in trade agreements.
Bad Climate Change Bill Could Cost 4 Million U.S. Jobs
Industries supporting more than 4 million U.S. jobs could be at risk unless lawmakers include strong provisions in climate change legislation to keep energy-intensive, trade-sensitive manufacturers competitive.
A new report says the legislation should include a system of rebates and allowances to help U.S. companies make the transition to lower carbon emissions and a tariff system, or border adjustments, to penalize countries that fail to regulate greenhouse gases in the production of goods.
The report, “Climate Change Policy,” released today by the Economic Policy Institute (EPI), says a well-designed climate policy can support the economic recovery and green investments can support millions of new jobs, starting with the creation of more than 1 million jobs in the next two years. Click here to read the report.
Poll: Creating New Jobs Trumps Fixing Deficit
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With unemployment at the highest rate in 26 years, most Americans want the government to create more jobs before it worries about the deficit.
A new survey of public views of the economy, released today by the Economic Policy Institute (EPI), shows more than eight of 10 Americans (83 percent) see unemployment as a big problem today.
While voters have some concern about the growth of the federal deficit, job creation is far and away their top priority. In fact, by a margin of 53 percent to 42 percent, voters are more concerned about rising unemployment rates than the rising federal deficit.
The Tracking the Recovery survey was conducted among 802 registered voters nationwide from Sept. 21-23 by Hart Research Associates for EPI. The poll takes an indepth look at Americans’ experiences in this recession, their expectations for the year ahead, their views of the government’s role and degree of success so far and their priorities for further government action. Click here to download the poll results.
