The statistics are pathetic. Women still make 75¢ to a equal male worker in pay. Supposedly Obama wants to take this on after a new study, Women in America: Indicators of Social and Economic Well-Being, shows women are still getting the financial shaft across the economic board.

Note: this is a cross-post from The Realignment Project. Follow us on Facebook!

Introduction:

As the third year of recession ends, the scale of the task of undoing the social and economic damage of the recession is now made plain. It is already well-known that 15 million Americans are officially unemployed, with another 15 million unofficially unemployed. But the scope of the recession goes far beyond their ranks  - more than half of the U.S. labor force (55 percent) has “suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers” since the recession began in December 2007.

The widespread nature of workers' declining fortunes, even if they have not suffered unemployment, explains why it is that one-third of U.S working families are now low-income (i.e, under 200% of poverty), one lost paycheck, one illness, or one accident away from disaster. But as I have noted before, the underlying illness of stagnant wages and a weak labor market have existed before - the one-third figure discussed above is only 7% higher than before the recession, and during the previous recovery in '02-05 we saw that figure increase, never falling below its 2007 level.

A rescue is deeply needed.

Note: this is a cross-post from The Realignment Project.

Introduction:

Recently, the Senate attempted for the second time to pass a small jobs bill. The American Jobs and Closing Tax Loopholes Act of 2010 – which would provide for an extension of Unemployment Insurance, COBRA health insurance subsidies, $24 billion in aid to states’ Medicaid programs to prevent deficit-driven layoffs, partially paid for through closing loopholes that benefit the wealthy – already passed the House three months ago, but is stalled in the Senate. The fact that the bill failed with 56 senators voting in the affirmative not only sharpens the ironies of the anti-democratic nature of the Senate, but also shows that we’re stuck in the middle of a full-blown austerity craze.

Hence Senator Hatch’s call for the unemployed to be drugs tested - for Unemployment Insurance that they have paid for through years and years of contributions – and even supposedly liberal Senators like Dianne Feinstein suggesting that “people just don’t go back to work at all” if UI eligibility is extended beyond 99 weeks. On the simplest level, this is insanity – there are about thirty million unemployed (including both official and unofficial) and only three million job openings. Drugs tested or not, the 27 million left over don’t have a choice of whether to go back to work.

Unfortunately, to paraphrase Keynes, politics can stay irrational longer than the unemployed can stay solvent. Austerity is in full political swing, and unlikely to improve, except in the improbable scenario that Congress remains Democratic in the midterm elections and the Senate Democratic Caucus follows through on their threats to reform the filibuster. A public policy that can only work in optimal circumstances isn’t worth much, though, and there are still ways to move forward on jobs despite being lumbered by irrational budget-neutral burdens.

Note: this is a cross-post from The Realignment Project.

Introduction:

Even under the relatively optimistic economic forecast included in the 2011 Federal Budget, unemployment will remain at the 9.8% rate through the end of this year, dropping to 8.9% in 2011 and 7.9% in 2012.  In other words, after four years since the first stimulus, unemployment will remain at recessionary levels. To be fair, the passage of a jobs bill – and the promised efforts to pass further stimulative elements (aid to states, highway money, public works, etc.) – lends some slight hope that this catastrophe might be averted.

However, as we’ve seen with the jobs bill, it’s incredibly hard and slow to get even the smallest elements of a jobs bill through Congress; this makes it highly unlikely that sufficient actions will be taken to bring down the unemployment. However, I do think that it is possible to push through more aggressive jobs measures at the state level in heavily Democratic states that aren’t hamstrung by the Senate’s rules and the Blue Dog Caucus. As I’ve discussed in my 50-State Keynesianism and Job Insurance series, I believe that it’s possible to reform state governments to be successful anti-recession institutions, complementing Congressional action.

Today, I’ll take California and New York as two heavily Democratic states that are also large enough to have a significant impact on the national economy.