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Robert Reich

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Why Washington Isn't Doing Squat About Jobs and Wages

Posted: 06/05/11 09:28 PM ET

The silence is deafening. While the rest of the nation is heading back toward a double-dip, Washington continues to obsess about future budget deficits. Why?

Republicans don't want to do anything about jobs and wages. They're so intent on unseating Obama they'd like the economy to remain in the dumps through Election Day. They also see the lousy economy as an opportunity to sell Americans their big lie that government spending is the culprit -- and jobs will return if spending is cut and government shrinks.

Democrats, meanwhile, don't want to admit the recovery has stalled. They worry such talk will further undermine consumer confidence or spook the bond market. They don't want to head into the election year sounding downbeat. And they don't think they have the votes for anything that will have much effect before Election Day anyway.

But there's a third reason for Washington's inaction. It's not being talked about -- which is itself evidence of the problem.

The unemployed are politically invisible. They don't make major campaign donations. They don't lobby Congress. There's no National Association of Unemployed People.

Their ranks are filled with women who had been public employees, single mothers, minorities, young people trying to enter the labor force, and middle-aged men who have been out of work for longer than six months. You couldn't find a collection of people with less political clout.

Women who had been teachers, public health professionals and social workers have been hit hard. These jobs continue to be slashed by state and local governments. Public schools alone accounted for nearly 40% of the nation's total public sector job losses in the last year. From March 2010 to March 2011, women lost 214,000 public sector jobs, compared with a loss of 115,000 public jobs by men.

Unmarried mothers are having a particularly difficult time getting back jobs because their work was heavily concentrated in the retail, restaurant and hotel sectors. Many of these jobs disappeared when consumers reduced their discretionary spending, and they won't come back in force until consumers start spending more again.

According to a new report by the California Budget Project, the recession erased more than half the jobs single mothers in California had gained from 1992 to 2002. The result has been a drop in the share of unmarried mothers in jobs, from 69.2% in 2007 to 58.8% in 2010. Unmarried mothers who still have jobs are working fewer hours per week than before.

Blacks also continue to be hard hit. Their unemployment rate here in California reached 20% this past March, up 5% from a year ago. That's more than double their rate before the downturn. Some of this is because of the comparatively low education levels of many blacks, and their weak connections to the labor market. Some is due to employer discrimination. Blacks were among the last hired before the recession and therefore among the first to be let go in the downturn. That means they'll be among the last hired as the economy recovers.

Many young people who have never been in the job market are unable to land a first job. Employers with a pick of applicants see no reason to hire someone without a track record, particularly those without much education. Unemployment among high school dropouts is hovering around 30%. Even recent college graduates are having a much harder time than usual finding a job. Many are settling for jobs that don't ordinarily require college degrees, which pushes those with less education even further back in the line.

Older workers who have lost their jobs are at the greatest risk of continued unemployment. Employers assume they aren't as qualified or reliable as those who are younger and have been working more recently. According to research by the Urban Institute, once you're laid off, your chance of finding another job within a year is 36% if you're under the age of 34. But your odds drop the older you get. If you're jobless and in your 50s, your chance of landing another job within the year is only 24%. Over 62, you've got only an 18% chance.

What do these jobless have in common? They lack the political connections and organizations to get the ears of politicians, and demand policies to spur job growth.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 
 
 

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The silence is deafening. While the rest of the nation is heading back toward a double-dip, Washington continues to obsess about future budget deficits. Why? Republicans don't want to do anything abo...
The silence is deafening. While the rest of the nation is heading back toward a double-dip, Washington continues to obsess about future budget deficits. Why? Republicans don't want to do anything abo...
 
 
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HUFFPOST SUPER USER
politicky
just follow the $$$
01:15 PM on 07/15/2011
Oh Puleeeeeeze, DC CAN'T do anything about jobs. The Int'l banksters took the money and ran --

QE2's disappearing act
http://www.atimes.com/atimes/Global_Economy/MG14Dj01.html

Why Banks aren't lending: the silent liquidity squeeze
http://www.truthout.com/silent-liquidity-squeeze/1310652572
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choctawwritergirl
Screenwriter & Futurist
04:25 PM on 06/08/2011
Robert, I'm 58 with three college degrees, and I've been unemployed since December 10, 2008 -- you do the math. No more UI benefits and have only worked temp approximately 3 times, with no permanent job, much less a career, in sight.
barrada nicto
Optimism is necessary.
04:55 AM on 06/08/2011
Good article, Robert. Thank you.
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ruleoflaw66
And I'd opt out of 'fans' too if I could.
06:15 PM on 06/07/2011
By "Washington" do you really mean our President?
barrada nicto
Optimism is necessary.
04:48 AM on 06/08/2011
Since the president runs everything by himself?

It's clearly all his fault ...

Jeez.
earth4all
Hillary 2016
04:08 PM on 06/07/2011
Reich is one I would like to see Obama bring into his fold. Whether that be in a formal position or as an advisor. He is brilliant and, yes, he has published many ways to get the economy going and jobs created.
barrada nicto
Optimism is necessary.
04:49 AM on 06/08/2011
You can tell him yourself:

http://whitehouse.gov/contact
HUFFPOST SUPER USER
Mark Knudsen
03:18 PM on 06/07/2011
come on man don't be so simplistake...unless you want the government to employ us all like a comunest country..the government cn do nothing...it is just a pipe dream....but the government can crete asn atmospher which all the Ivory Tower boys haventgot a clu of...to incourage progress...but we must fce the relity we cant long term grow our way out of anything.....that is just phyphics 101... the old viking
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HUFFPOST SUPER USER
nyjjc
Dark Lord of the Facts
06:01 PM on 06/07/2011
I see by your horrendous spelling and lack of anything resembling a coherent sentence you are the target audience of the GOP...
HUFFPOST SUPER USER
Mark Knudsen
11:30 AM on 06/08/2011
no I am neither gop or dem but I am for some common sense and some entegrity by all as for my spelling an lack of cohearness...I feel the same toward those who can spell and speel with skiils beyound reproche who have such fuzzy thinking and lack of will to use their unreprocable skill to get anything done but sit at their computer and plead ther case and beg fr some one else to do their work to bring about change..like I said you disagree there is space below in the reply to show mew the errors of my ways and the progrees y our ways have brought about...please fell free to reply as we do need progress inplavce of all this talk...the old viking
Citizen54
Conservatism is a con job!
12:23 PM on 06/07/2011
The other day my 83-year-old mother, a lifelong Democrat, said, "Back during the last Depression, FDR had a program that created a lot of jobs for people. Why doesn't Obama do something like that?"
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05:33 PM on 06/07/2011
Because the Republicans won't let him.
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HUFFPOST SUPER USER
nyjjc
Dark Lord of the Facts
06:02 PM on 06/07/2011
Bingo
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Footwarrior
Progressive Apparatchik
06:03 PM on 06/09/2011
Something similar happened during the Great Depression. The economic recovery that started when FDR took office was interrupted in early 1937 when a coalition of Republicans and conservative Democrats rolled back some of the New Deal programs. The 1937 drop in GDP would have been called a recession if we were not already in a depression.
12:00 PM on 06/08/2011
The Obama administration has poured billions into the economy to stimulate job growth. The $787 Billion stimulus package was suppose to create jobs by stimulating the economy. Also, according to a recent GAO report, there are 47 different employment and training programs across 9 federal agencies at a cost of $18 Billion annually that are suppose to stimulate job opportunites. We've spent a lot of money, but little has been shown in return.
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Transit
"Hunger is the best pickle"
11:30 AM on 06/07/2011
It's a recession when your neighbor loses his job; it's a depression when you lose your own. - Harry S Truman
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11:21 AM on 06/07/2011
Reich just loves to blame the GOP - hey - Obama had plenty of time to focus on jobs. the problem is he's been busy villifying business & saddling them with added costs via Obamacare & EPA regs. Pleeaase! you want to dictate your emotion based Utopia to the people who you then expect to take the risk and fork over any gain to the Feds so they can redistribute it. Enough already. Atlas is Shrugging! Who is John Galt?
Butquestioning
Searching for truth
12:31 PM on 06/07/2011
Eight years of Bush tax cuts...Trickle Down economics for most of the last three Republican Administrations and we have had 5 recession, no job creation and have a debt that has grown to the point you now think it is a problem... Bush increased the debt by over $6.1 trillion during his term and now suddenly, the debt is a problem and must be dealth with while unemployment is still out of control and the Republicans in Congress want to make more spending cuts that will only increase the jobless.

Business seems to be doing great, with record or near record profits and an estimated $2 trillion in cash on their books and somehow you think that is due to Obama's "vilification" of business. Maybe they need more of that if that is a "problem". And, "ObamaCare" is another problem with added costs but you seem to ignore that health care costs have more than doubled in the past 10 years...without "ObamaCare".

Seems that you have a very selective view on the problems and causes...and ignore the reality for the sake of continuing the same failed policies that perpetuated the decline of America in the world.
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HUFFPOST SUPER USER
jdcrump
Conservatism: The struggle to justify selfishness
12:49 PM on 06/07/2011
Silly Rand worshippers. They believe Obama wakes up and thinks 'Okay, what can I do to vilify business and increase their cost? No time for creating jobs. Just need to ignore that and vilify some businesses.'
No wonder most people think you're crazy. You not only conveniently assign blame somewhere else for your problems, you also imagine crazy motivations for anyone whose job is too complex for you to understand.
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HUFFPOST SUPER USER
William Dawson
Hello, Is there anyone out there?
10:53 AM on 06/07/2011
Put some certainty in what going to happen with taxes over the next 6-8 years, dump obamacare and jobs will follow.
Veritasvino
In wine there is truth, in tea, well not so much
11:13 AM on 06/07/2011
Why that makes no sense at all.
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zlohcuc
"Serving millions from atop the Allegheny"
11:38 AM on 06/07/2011
Absolutely no sense...but for these folks it does not have to.
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Trepasky
Sanity is neither free nor easy
03:11 PM on 06/07/2011
SUre it makes lots of CENTS for the insurance companies and the GOP/TP LOL
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HUFFPOST SUPER USER
Arts4u
It's better than a reality show.
11:47 AM on 06/07/2011
Uh... yea. Just like the Bush tax cuts were supposed to create jobs..... keep trying - not going to work.
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OliverTwist
Contrarian advocate for truth and justice
10:48 AM on 06/07/2011
Thanks for your good work, Robert.
10:33 AM on 06/07/2011
It's all so unfair!
alittlecynical
Part of the 92 pct that isn't tea party
10:31 AM on 06/07/2011
We need a 3rd party....fast.
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Dahveed
step softly & speak easy
11:46 AM on 06/07/2011
Yes!! Yes!! Up with the Green Party of America!
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HUFFPOST SUPER USER
nyjjc
Dark Lord of the Facts
06:02 PM on 06/07/2011
x2
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HUFFPOST SUPER USER
jdcrump
Conservatism: The struggle to justify selfishness
12:51 PM on 06/07/2011
The trouble is that everyone trying to start a third party only does it half fast.
alittlecynical
Part of the 92 pct that isn't tea party
10:31 AM on 06/07/2011
And that's, ladies and gentleman, why we need an accountable 3rd party that doesn't sell out.
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HUFFPOST SUPER USER
jdcrump
Conservatism: The struggle to justify selfishness
01:04 PM on 06/07/2011
Our nation would be so much better if the people who waste all their energy with little splinter group parties would devote their time to influencing one of the two ruling parties.
Now, that doesn't apply to those who only like to complain and blame; they would need to actually get involved and devote some time and energy, but what an improvement they could bring.
Too much of a commitment for them, I guess. Real government takes real work.
HUFFPOST SUPER USER
robert horwitz
10:23 AM on 06/07/2011
Robert what you say is true. Just one thing. How long can these people remain invisible as Tent Cities begin to spring up as weeds in these politicians political gardens. Almost everyone has at least an inexpensive digital camera or at least one that is built into their cell phones. Once the pictures are snapped and put on the Internet they have a way of appearing everywhere in the World at the speed of light. I have to say that this will not do a lot of good to not only improve the image of our country, our political leaders, or give any confidence to the financial markets. The image that I see coming are more tents than at a National Boy Scouts Jamboree spread out over the horizon line in camps all over the country. So politicians think they have an expensive and troublesome problem now. "They Ain't Seen Nothin Yet".