by Annette Berhardt & Christine Owens
The American Recovery and Reinvestment Act has finally been signed into law, and a full menu of implementation work is on the table. Even this milestone achievement, however, won’t be enough to support the full agenda for working families. Jump-starting our economy is critical, but this alone will not solve the deep crisis of inequality that has been building in this country for decades.
Long before this recession set in, working families were already struggling to survive in a brave new world of stagnant wages, disappearing benefits and little job security. Government has retreated from intervention in all things economic, and it’s our workers who bear the costs. Americans are more productive than ever, but a shrinking share of corporate profits is going to their wages. They are working harder and for longer hours, but their upward mobility is stunted.
And every day, millions of workers clean our hotel rooms, serve our food, ring up our sales, care for our grandparents and in general keep our economy running–but for low wages, anemic benefits and a dead-end career. In fact, according to the Bureau of Labor Statistics, eight of the top ten occupations projected to generate the most jobs by 2016 are low-wage jobs in the service sector.
This is the biggest unspoken challenge for our recovery: low-wage jobs have become a key growth engine of our economy. Policies focused only on job growth will simply put us back on the path toward greater inequality. If we truly want to rebuild a good jobs economy–to “create jobs that sustain families and sustain dreams,” as President Obama recently put it–we have to act now to lay down the institutional and regulatory framework. Read the rest of this entry »