Jobs
America is in the midst of an unprecedented unemployment crisis. As many as 16 million Americans are out of work, and as many as one-third have been jobless for over six months. Moreover, another 9.3 million Americans are only able to work in part-time positions because they are unable to find full-time jobs. Here’s what the Congress has done to alleviate unemployment:
ECONOMIC RECOVERY ACT:
- State Budget Relief – the Economic Recovery Act included $144 billion in relief to state budgets mostly in the form of Medicaid and education funds. Estimates indicate that the $52 billion spent so far has generated $73 billion in economic activity and is responsible for 360,000 to 500,000 jobs that otherwise would not exist.[1]
- Other Benefits –The Economic Recovery Act, along with other initiatives, has worked to stabilize economic conditions and help those harmed by the economic crisis:[2]
- 95% of working families are already seeing benefits of the Making Work Pay tax credit in their paychecks;
- Families relying on COBRA health insurance are paying 65% less for their health coverage;
- Families qualifying for food assistance through the Supplemental Nutrition Assistance Program (SNAP) have seen their benefits increase by over 13%;
- Over 51 million seniors, as well as veterans and other high-need groups, have received $250 relief payments in the mail;
- More than 7 million low and moderate-income students will receive a 15% increase in their Pell Grant awards to help pay for college;
- State governments have received over $23 billion in additional Medicaid funds at a time when they are facing record budget shortfalls;
- Tens of thousands of teachers, law enforcement officials and firefighters are staying on the job at our schools, police stations and firehouses because of the billions of dollars in Economic Recovery Act assistance to state and local governments.
JOB CREATION:
Although there are signs of recovery, job growth continues to remain stagnant. I do not believe that cutting taxes on the wealthy, deregulating industries, nor signing trade agreements will create more jobs. Rather, as Kansas’ next U.S. Senator, I will advocate the following job creation strategies:[3]
- Strengthen the Safety Net – America can create as many as one million jobs by extending unemployment benefits and COBRA health coverage for one year. I believe that extending these benefits is an effective way to create jobs because it puts cash in the hands of people who will spend it, thus improving demand for goods and services in communities all over America and Kansas.
- Fiscal Relief for State and Local Governments – as we know all too well in Kansas, state and local governments are facing catastrophic budget shortfalls caused by substantial losses in revenue. The federal government should step in to provide increased assistance to aid the budgets of state and local governments to stop public sector layoffs. Laying off teachers, firefighters, police officers, and bus drivers does more than simply put people out of work. Cutting these crucial public sector jobs deprives individuals of needed public services that ensure the public’s safety, educate our children, and provide us with transportation. Following recommendations by the Economic Policy Institute, I will support efforts to extend the state and local budget relief provided in the Economic Recovery Act by $150 billion through fiscal year 2011. This additional relief is estimated to save between one million and 1.4 million jobs.
- Invest in Transportation and Schools – Maintaining and repairing America’s infrastructure, including repairing its public schools, are labor intensive projects that make America safer, educate our children and create jobs. This is why I will support investing money in repairing and modernizing schools. By investing $30 billion dollars to repair, maintain and renew our schools, economists estimate that America could provide employment to nearly a quarter of a million workers in the private and public sector.[4]
- Public Service Jobs - I believe that if the private sector can’t put Americans back to work than the public sector must. The government should target the communities most severely afflicted by unemployment by allocating funding to local governments that could design public sector programs or select projects proposed by nonprofit organizations and encourage public-private partnerships to quickly put residents of target communities back to work delivering valuable services. Economists estimate that a $40 billion dollar investment per year for three years could put one million people back to work.[5]
- Job Creation Tax Credit – America should offer employers a tax credit for hiring as a compliment to the efforts outlined above. Employers need to see an increased demand for goods and services before they begin to hire again. A broad based, temporary tax credit equal to 15% of the company’s net payroll increase in the first year followed by a 10% increase in later years could create an additional 1.4 to 2.8 million new jobs, according to economists estimates.[6]
- Paying for the Plan – these essential job creating tools could be paid for using a modest 0.5% Emergency Financial Transaction Fee.[7] This proposed fee would have a definite sunset (ending) period corresponding to the end of the current unemployment crisis as determined by the president of the United States. A financial transaction fee would levy a small fee on the transfer of ownership of stocks, bonds, and other similar financial instruments. Personal and commercial banking transactions would not be subject to the fee. Such a fee would have the added benefit of discouraging speculative, rapid and volatile transactions. Such a transaction fee would be paid primarily by the wealthiest 10% of households, who hold 45 times the mean holdings of the bottom 75% of households. Economists estimate that a 0.5% transaction fee could generate between $30 billion to $85 billion per year.[8]
COLLECTIVE BARGAINING:
Kansans have the right to a satisfying job and a fair wage, whether they work for themselves or others. They also have the right to organize unions and collectively bargain. An array of research demonstrates that union and organized labor benefits the economy by raising living standards for union and non-union workers alike, making companies more efficient and productive, and by balancing the interests of ownership and investors with the interests of the hardworking men and women that make these companies thrive.[9] As Kansas’ next U.S. Senator I will support legislation like the Employee Free Choice Act, which would impose real penalties on employers who harass or fire union sympathizers, or otherwise try to scare workers away from a union. Under the Employee Free Choice Act, if a majority of employees at a workplace sign cards favoring a union, the act would require an employer to recognize the union, avoiding long and destructive battles.[10]
[1] Economic Policy Institute, “Benefits of State and Local Budget Relief.”
[2] Joan Wagnon, Kansas State Revenue Director.
[4] Economic Policy Institute, “Investments in Transportation and Schools.”
[5] Economic Policy Institute, “Public Service Jobs.”
[6] Economic Policy Institute, “Job Creation Tax Credit.”
[7] Economic Policy Institute, "Paying for the Plan."
