You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Dean Baker on the President's jobs proposal [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion: Presidency Donate to DU
ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-09-11 11:02 AM
Original message
Dean Baker on the President's jobs proposal
Advertisements [?]
Statement on the American Jobs Act and Work Sharing

Washington, D.C.- Following the President's address to Congress and the announcement of the American Jobs Act, CEPR Co-Director Dean Baker released the following statement:

"It is encouraging to hear that President Obama included work sharing as part of his jobs agenda. This is a job creation measure that both has been shown to be successful and has the potential to break through partisan gridlock.

"The basic logic of work sharing is simple. Currently the government effectively pays for workers to be unemployed with unemployment insurance. Rather than just paying workers who have lost their job, work sharing allows workers to be partially compensated for shorter work hours. Instead of one worker getting half pay after losing her job, under work sharing five workers may get 10 percent of their pay cut after their hours are cut by 20 percent.

"This situation is likely to be better for both employees and employers. It allows workers to maintain their jobs and continue to upgrade their skills. It avoids a situation where workers may end up as long-term unemployed and find it difficult to get re-employed.

"This is also likely to be better from the standpoint of employers since it keeps trained workers on the job. When demand picks up, they dont need to find and train new workers, they simply must increase hours for their existing work force.

"This approach has been a proven success in many countries, most importantly Germany. The unemployment rate in Germany is half of a percentage point below its pre-recession level even though its growth has been no better than in the United States. If a work sharing program here in the United States can reduce dismissals and layoffs by just 10 percent, it would generate the equivalent of 2.4 million new jobs a year.

"As a new approach, this plan may also get around Republican opposition. Work sharing has drawn support across the political spectrum. AEI economist Kevin Hassett, who was Senator McCains chief economist in his 2000 campaign, has been a vocal proponent of work sharing. The policy in Germany is fervently embraced by Germanys conservative government.

"It is encouraging that President Obama was willing to step outside the box and try a new approach. If the Republicans cooperate, this policy could make a big difference to millions of workers and their families."

Printer Friendly | Permalink |  | Top

Home » Discuss » General Discussion: Presidency Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC