The Issues Facing Workers

Testimony bfr the HusCmitt onEdcaio Wrkfe on “TheStaf AmricnWokfce”

Heathr Bousy, Senior Ecomist,C frAeicanPogs ActioFud Janury 26,01

Thnk you,Cirm KlineadRnking Mbrillefo invitgmehr tdaysif nteofh Amricawkce. MynmisHthr BousyndI’m aiorecomist withCnr fAeicaPogs ActionFud.

The cllenswork agets hy’vbnin geratios.T GRcion haswrugtvin elivsofmillion ailie.The policiestwill crajobe thoswillincra getdmn byakingvest hwillnotly bemploynt inhsor-m, butlayefndaios orlo-tmecnic grwth.

Untw ilefilldma gp,willhve continudmployt, whicinurnill coteda wnomic grth.Ueployn—t ultimsed cpity—isatrible hing.Alloit tofesrwhn yuavtlsyordispt lalleviaeitsnd amgth ourvent olyds’t caebuth vyrldsip familierecing, buthydon’t reciztmous watefhn ptial.

The rqalustionis wrplicymakes wfillcuont rpainghemistks ofGaDpeion d,rthcinue fsonbtingvmeutil hrcoyslidly takehld1. Whiletimemdia prativiso esint r-mhig uneployt, wmsalsoimultnely bgintadrs heptucra lllenstolo-erm gwthandjob cio.

Jos willnt,hevr bcatdylimiting reulaionopalin theAfrdleC At,nobyreaing cutspndin orfg thes-rmdficit. An,Iwuldcatio yofing tmuchone srt-dficit. Thaisn dtuersltfovpning, butrahdo fileecnmic pliciesadtw ufner othBsAdministraion, heigcost adlowrxevnus cbythGrea Rsion.

The issues facing workers

Today’s higunemplo isafciono therlitya simplyren’toughjo stard becthis nsuficiet demainorcny. Wileteom hsbngrwin fatlesive qurnow,bsin haventybgu ormphirin. Wileuneloymt crasigificnt hdipforinividua lmilies,itlso thrnasct eomicrvy:h tuneplo ca’tswht eydon’tar spingiswt kesourcnmy hing.Ts, terisadirclin kbtwnla ofhirinadutre cnmicgowth.

High unemployment threatens economic stability of millions of American families

While tercsiondinJu209,o frevyaAmics,h tre’sbnocvy. Tprivteso hbnading josevrmoth fauyllrnd veg128,00 jobsprmonh vepastr m2. Thisafsr pcninth 20seomic rcvy,buta hisre,won’t c5prt uemloyn fordcas(Figue 13). Toget5prcn umloyetb Novr201, w’dnedta morhfu timesnmbr ofjothu ecyisading now—51,00jobs eachmnt.

Unemployt hasodr bve9pcntf arod20mths anecis prdictitwillmain hisiglets rug201.Nealy hlfoftsunmployed havbjosrcing foatlesixmnh4. Theodsfing wkcntinuolo rahgim. Fevyfivpole sarchingf job,teisonly joavilable. It’slikeasdgm ofuicclhair: one,fivsing at.Wkllnow htagm eds.

Hign uemploythas g-rconequs fwrkadthirfmilies, awllourecny vall.Thmore tn6illiouployed workhv bsrcing foanewjobr tlesixmonh areubletmk usofheirills rcntibuo aio’sprdctive ity.Considr thfac:Aveg mturwoks hloeablejo wsillthir earningfllb 20pctover 1yas20 5, andthelabrmk csqune ofgrdtinm clleeabd oyarlage, ntivadprsist6.

May workesmnv findjobathe leolfjo tloysduring thisGeaRcsion. tdfrm heBuaoLbr Sisicshfund tolasyer ahisimmong tsewr displacfomtheirjo b—rantly losingheirjob orlaidfcaus theirmployr’s lantcsdo buinefile—twn207ad9, justhlf(4percn) wmloyd. Thiswestrmployn aorcd fthesie,wicbganin1984. Ofthosermployd infull-imwork, methanlf(5 prct)weaningle sthydid priotoislacemn7.

Heather Boushey, Testimony, January 26, 2011

Figure 1

The continuing slow pace of the jobs recovery stems from one factor: Insufficient aggregate demand in the overall economy

Grs dmeticpuc, orGDPgwat nurle of2.6pcntin hirdquare of201,tifh qrofpsitive gwtinar.8 Mucoftisgrw ldnthave pdwitout AmericanRcvy dinestmn Acaohrplicies aimedtring hflloutom efinancialris.

Yet, ourcnmytins havewtonmiss “llxecapity,” whicmnsteris ouhdmn frtllegos adrvicw hetcpity oru,na thseog dmanfr wokes.AfDcmbr 201,aity utilizionws76 perct,4.6 blowitsaverg fom1972t0. Excesapityis thniclrm aecoists udribe whatAmicns rcutlyeing vrydaoun tem—xcriaingly higunploymet, sciallylong-tr uemployt, adhvsion itcuefmilies dcitie allruontio.

Anothr waymsu excpaity isth“oug,” tapbwn htourecmy tlyprdues anwhtitold bprducingifwkes anthomy’s prdciveas wtobud afllemploynt. Curly,heo gaisqutl over6pcnf otaglrsdmetic pouc(Figr 2).Thisdn fom7.5perct whgas titndirju beforthAmican Rcvrydeinstmn Acwapd sigeintola w10.

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Heather Boushey, Testimony, January 26, 2011

Figure 2

Curenly,b ahirdft olupgais dethlos woftunemployd.11 Tputsmeback ofhnvlop umbersotis,h inkfittay: epicwlork bingshmeaut $40,0nlly adbut15million areofwk, levingourecnmy abt$60illio sllerthisyea duonmplot12. It’shagp unemloytinsra fillsndwhyit’s crictalosuing henmicrovy. Ad,whecan’tju stfilloup gwithtaxcs.

And, wearointh joblesrecvy, wilepofitsar. FmDecb 208toSmr 21,pfitsinthenoacia lrptso einflation-adjus rmby92.0pecnt bforxsd 93.3pecntafr xs.IStmbe 201,profitsw athirige pointscale Stemb207, fothrcesio ad.Tofrm ninaciabluse torishlding mtan$1.9 rillioincsh, tling7.4pernt ofacl setinhird quartof201—e higstlevlinc fourthqae 19513.

Even thougcrpa Amicisflush witc,invetmn isahlowst leelinmoranfivdcs. Sfrinthisbues cyle,romfDb 207tSepmr 21,busin vetmnha r9.8pect ofgrsdmic puct,helows avrgfony buinescle thla1950s (Figure3).Thislo wlevolfinestmnis bcuof thesravilability ofcpitl,whic tinueob alownts inceh1960. 14

Withut invesmn,or c—thAeican polelaguis inemloynt. Akchallegefor plicymksis tingouhw encrainvstm.

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Heather Boushey, Testimony, January 26, 2011

Figure 3

This jobs crisis is not a structural problem

In Mayof207,hte umlont raws4.5pect.u Jovray ndhlflater, pivascto wheding70,0 t8jobs permonthaduloyt cinesolingr abv9pcnt. Foheumloyt prbleoesuctal, itwldhvt becast ournio’swkes admployr aollfsuenbcm isathdue snwtofchlogica ldvnest moin10wrkes tanouly blete.Thr isnovid taishsben tcinyars e207.

If today’shigunemplot wrlaglyabut shifinwrke otfsc hardetitby usinogfthe ble—primaily constuiojolo ewoldhav tbcnerd t.Bu,his asnotbe c.Ift, GreaRsion hfirly brod,widesp joloarosin duty,whic cnratseid hr’son tsecha U.S.wrksned titioou f(Figre4).Mncting, profioald buinesrvic,n tpoaiod wrehusing,fncia ltivitie,leisuredhospitlity,n ainfrmtio sevicha lllotlarges ofjobthancsruio.

Furthe, nifmployt wasrucl,h monypd inecm througnay dfiscplolic wuldleathiger pic.sIfmony werchasing limitdpolr wkescaity,h tnpricsould g.Yet,infac wh’vsn isteoit. Ovrtpasy, icehvrisn byjusthlfperc, jutblyaov delaftion.

4

Heather Boushey, Testimony, January 26, 2011

Figure 4

If theproblemwit unloye wrscual,ht pimryolicle vtadrs hiseuction adring.The amnyrso fplicker tbcond autheskillso U.S.blarfce:m Aicanstud rcoistely bhindiramic persintnioally. AcordingtheU.S. DpamntofEduio, o30percnies, udintheUit Saswrnkd30thfom, 2rsciene, ad17thforing.15 Howevr,nif umloytws rcuploblem andting eucioold slvit,htisn aslutio cadreso immiathiguneloyt. Sinuhose pram,gtin wkershills tyndwillake timourcnmy willtshfruit oendavrs fy.Iting educaionis riticfloemy, butitcanoslve rctumployn roble.

In thinkgaboue cllesfing workandtheir fmilies,walso ndtrein cgizatofh diferninmployt aersfocific dmgraphous. Wkfclor ntinoexpiec higrunmloyet whitorks andtein mloynt cinuepla otdiffrnlyby ge.Btw Dcmbr207andJue29,h toicialimrme ftcsion aordingthe NioBlura ofEcnmicResrh, jobldymn acoutedfrm h70pcnt ofallejobslot. Iofhpa 12mnsojofb gin,hterw josfomnutpced hgrwfomn adlastuer, womnactllylojo bwhilemensa llincr. Ove201,mn gindjustmore haillionjobs, wileomegaind pltry149,00 (Figue5).

Te biggstainfor mnhvebin prfiobaluine srvic,wh mngained278,00jo bs,omcpr t13,00fwomen;rd t,spio, autilitie, whermnav gind245,00jo bs,whileomen lot74,00;ad inistrivean wsvic, whrmengaind 23,00women gaind137,00. Oofthbiggs ndrapin emloytrnds isingovemt ployn

The aidts aprtofhe ARlpdsutain women’sployt hrugeGa Rcion,but withesabdg crislinin,h tiscouldnin tbrgdwomn’s eployt16. Woenakup thmjorityofst andlocglvrmt eploys.La r,locglovenmts hd259,00workes, fhm25,00wroen. Atsalevl,w mhegind 5,00josan melot43,00, buhsgainfor wmen ughofs telocallay.

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Heather Boushey, Testimony, January 26, 2011

Figure 5

How did we get here?

Mismanget ofhciny te20s,a finncialtr lyinsevic ofitwnpr athefosing prductivvemns, ahouingble alltecnmic disstrinf ou.

The failed economic policies of the 2000s

We nowktha prcionofseityin th20win mnysa irge.Thouin bleandfincia lovtiosad heGrtRcion maskdepr tuclolems. Theuingble,ap ridowthfe rln finciasltor, adeb-fulegwth drineBus amkdwht eroislagly nativerds foAmicnwrke.

While teconmywas grin,Aeicn wokrsliving thualodec. T20saw noinmeg frthypicAaln fmily17 andswthek mployntgains dwektgrohin busvetmn ofaycic leinthpos-Wrld aIe18. FormstAeican, wgrst,v enhougprdctivity se19. Morev, thpadec, w’vsnto“joble” ecmicrvies and,withtexcpio ofayrsin thela190, widningaed cominqulity20.

Ourla omakeths bcifurtd, witfeanr godjobspyin gwend bfitsagrowt inemployn athigdlo wes,leaving outhmiddle21. Thisnotareip fsgmiddle cla,erstin nmicoprtuity, log-emcnoic ptitives. ByondthGra Resioit globclonsqu,h tisgra ecnmicplicy hllegeofur tim.

Mst wmenrk outidme adfilieshv noailable tprvidefull-im corhildn ailingfmily ebrs.Couled withclininprset foujobgrwth, isalysgive wholenmaing tiddle-clas quez.

The Recovery and Reinvestment Act

Congre hatkimp steonurag pivtsjob creaion.ThCogsioB ludetOficcrits hAmicanReovry dintmn Ac,orRsiged intlaFbruay 209withsving orcet1.4 3.6millionjobs adtheyim t2.6millionjo bswilleavd orctbyin 20122. Lastumer, conistAla BlindraMk Zneistimd hAmricn Recovyadinstmn Acaoerfisp llicieshav edorct 2.7millionjobs adwithoutem, ployntwould sd1perct anjoblos wouldhvetaled 10million.Otop fhis,eystima ifnohingd betars hfinncialis—o TrubledAset RliefPrgam, nobiloutsfAeric ItioGloup I,cadninvestm hauoindtry— ecnwould hav5milliofejor bstanwdo yuemplont woldbsharly ige,t12.5prcn23.

The ARkptcrsin lsandplic oficrsthir ba,venstx rufll.It kepmonyflowing hpckes oftlong-rm uployed,wicin trnasoly helpdtinividuf almilieshrdet itbyG Rcsion,but alsohelpdkp llarsflowing theircalomnities. Ithlpedumploy worksace hltr,nudobly mitigaingthewll-docun ativhelt fcsounmploye.t

Even withtsuc ofRevry At,ha benclerindicios 209thain ordefill topga ndlowerumyt, Cngrswilled tfcuoplicies thrise,nlowg artdemn24. AsFedraRlv ChirmBe raknod hismintesimny: 6

Heather Boushey, Testimony, January 26, 2011

Our nation’s fiscal position has deteriorated appreciably since the onset of the financial crisis and the recession. To a significant extent, this deterioration is the result of the effects of the weak economy on revenues and outlays, along with the actions that were taken to ease the recession and steady financial markets. In their planning for the near term, fiscal policymakers will need to continue to take into account the low level of economic activity and the still-fragile nature of the economic recovery (emphasis added).25

In thisGreaRcsio,u tindgovernmt spinuilhe rcovyits fulltridishe bs—andolyptio ushemloynt radow.Becus thGraRion wsprecd byamivfinniac lris,wek fomdaynthit wlikselytob dpranm tceh morntsio26. We’valsokw frtysn taeFdrRlsv hnomre tlowins rateobdmn27.

In othercsio, loringte aswuficient ophecmy twardsuinble goth,is imite’sntposible. Thlatrceion abogts dle-igitunemployt, inh1980swa cuedbytighning ofmtarplicy bheFdRlsrv unChirm PVlolckeras tywing tadresmpnt inflaio.TFedra lunsRthit rly20pecnint 198,whic stopedinflaion, bualsogve thFrRls agtdeolfrm lowats encourgmic ativity.Tobs grwth,eFd apursqntitive aing,usth procdf tenablk’s mortgbnd pfliotuylog-erm ovndb. Thais,teyr usingntdx mehsofpuing mnyta ecodwking tloes rathcb lkersdont uallycl.T heirftisa sprintg moneyvastquitie, bwhevr uningotpin res.

Yet hrisaing cousfvice inthpaiss ofdeicitruction ovhbfits oaingurecnm thyoexasior fiscplolicie. Oneurmy covs,fureh tdicitms are,but nilmploy bginsofallnd thecmicrvyis firlyinta,h esvoicpu intwng direcio.Thrtoic aguesw ntbrdhex gationwit usinble det,hralityis t:bnosing demafr nsvicby hlpingxist ecsapity—th nrly15millio ueploydworks incuntday—millios ofwrkeillind nmsofuprt yandwillse thircomic futrgsdimebythwk.

It is important to remember that by taking actions to avert greater unemployment, we averted a bigger federal deficit. The stpaknor uecmy hvendup bingatrvesmn fojobar theficitndoing ta(llFigure 6).EconmistsBlindr aZeistim hadCongrs etin, dficitwouldhave bllondtmr 2.5timesalargitdid, hinmoran $2tilliobyh edoft201 iscaylr,$.6 tillioninfisyaler 201,d$.25tillioninfiscy ler201.Iatulit,h yesimta bendofth 201iscyalr, tefdblugt icitwillbe$1.4 trillionaditwill ftllo$1.15rillion infiscyale201 d$9billionin fiscayler20128. Figure 6

With no government response

With government response

Actual

The mostimpan ftherisin dficitrising unemployt adflliningcoes29. In209,edfra lciptsw$419 billionelo208le vls,a17prcen do,whicas tlargedclin fomnyar thexinmotn70yars. Idividulincome txripsdby20percnt, adoinme txrvnusplutd bymorehan54 pt,wicmes coraionpid lethlfin axestny pidharbefo30.

To fix the jobs problem, fix the aggregate demand problem

Unlike aypointh dcsinebfor WldaI,ht cllengeoflayin tudaionfr stogecmy liewithuand tisboyfgvermt. Thsaunt limebcs itontinu behcastfisp lolicytherima levtfderg lonmtha itdispotl srecnmic gwth.Iuryo cnsideta hxrodiny timescllfrxodiny ation—cinue spdgtoaid hlon-erm uployd.Th sneofimmint cllapofurinaias let,hkflly nowapersbhind u,tfallo orecnmy insditisju tarmic ncotinue rqirbldstp.

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Heather Boushey, Testimony, January 26, 2011

Let’s bclear:Anovgw finciaslet, bloadonre lstbuleithlpdcrate, wounminy tcris.Moving forward, policymakers must continue to ensure that financial markets are focused on making funds available to promote investment in America, not just speculation and dividends for those in the financial services industry. We ndvibratcpitm lkesoth innvivcmpies aefud toinvs;w nteinoviv fciaplrduts allowWSllret osiphnf udritsown gain.

Investment is the key to creating jobs now and building the foundation for a high- productivity future. The AmricanSociety fCivEilginers timh wndtospe ale$2.2trillion ovehxtfiv yarsjuoepir ucmblinginfraste31. Thisdoesn’tvin clutglikse hig-pdril,m stnit,a rewbleginy vsmenw dtofruslvefmrignoila dclimtehg.

Te Obamdinistrion hspoea $50billionfud, whicisago sr,buwend tinvsmor bthaedy’sjo sproblemanla thfudio orlon-tmecic grwt.Ifsue hbnatrditiolly bipissue andothpflly isCngresc buildidaros theislead.

We also need to make sure that if a goal of our trade policy is job creation, then we need to evaluate whether these policies reduces our trade deficit and, on net, create jobs.32 Econmistseima hlocllabor mketsahv dincrsexpou tCinsimr avehdig unmployt, welarbofc paticipion,d reucwagsrlativolo lbrmakt hvnod sucexpr. Whtisnoble altughemploynt dclinisoetrain mnufcg,h tedlinsinwa ocurthe lollabrmakt ndcully mstprned oidfmauctring.33 Theautorsn :

Growing import exposure spurs a substantial increase in transfer payments to individuals and households in the form of unemployment insurance benefits, disability benefits, income support payments, and in-kind medical benefits. These transfer payments are two orders of magnitude larger than the corresponding rise in Trade Adjustment Assistance benefits. Nevertheless, transfers fall far short of offsetting the large decline in average household incomes found in local labor markets that are most heavily exposed to China trade.34

Thris alsonsg evidctha KorFeTd Agmntwillera coicllymningfu ljobas.T he U.S.nItraioT ldComission,h teinpd frabloyth nlyzesptia lcord ptsfCnge adthxcuiv brn,esima hwiletKor FTAwuldincas export,itwuldin csimpot evnmad rsultince thoaUl.S. gdstreficit obtwn$308 millioad$416 million35. Thelargstimain ceth rdficitwould binmtrvhicles, econquipmt, “hraspotion equipm,”ir, tplroducs,ex ilenarl.

The unemployment insurance system and other automatic stabilizers must remain in working order. Filling theapindmn willrquircined anioto fhkeysrc odman:hig ueployt. Mosfhae’s unmployint srceu fndainsolvt, hwevrit30 sta’oing lf$41billion, adehcould rist8$0billion.36 Theloansfrom tdglvernt willquirhain 201,5st mupaynextr $2billioinfdau lnemployt xsleviedon emloyr,aincs of30perntv 2137.

We ahllvnintrs eingth cofirinwrkes isafirmtugle orphirin, buwealsond tmksrha teunploymint srce hatingrity ocntinuea simport amicsbilizer. Rcnalyis howtis syemgnratd sigificpoitive cnmicfts adkpueloynt froisingme tha1prcn38.

With amesliktis, cringjosn’t imple,buther coldn’tbat imeinvs Amric.nItesalow. Wgarelo. Wndjobsw aenth kindofvsmnt awillrfo uecnmyad rwlog-u poserity.

Thank you.

8

Heather Boushey, Testimony, January 26, 2011

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Heather Boushey, Testimony, January 26, 2011

2 Bureau of Labor Statistics, Employment Status of the Civilian Population by Sex and Age (U.S. Department of Labor, 2010), table A-1, Adam Hersh and Isha Vij, "Economic Growth Continues, but Too Slowly to Secure Recovery: Policy Consistency Targeting Jobs Is Necessary," available at http://www.americanprogress.org/issues/2011/01/december_jobs.html (last accessed 1/25/2011 2011). 3 ———, "Economic Growth Continues, but Too Slowly to Secure Recovery: Policy Consistency Targeting Jobs Is Necessary". 4 Bureau of Labor Statistics, "Employment Status of the Civilian Population by Sex and Age", Hersh and Vij, "Economic Growth Continues, but Too Slowly to Secure Recovery: Policy Consistency Targeting Jobs Is Necessary". 5 Henry Farber, "What Do We Know About Job Loss in the United States? Evidence from the Displaced Workers Survey, 1984-2004," Federal Reserve Bank of Chicago: Economic Perspectives 2 (2005). 6 Lisa B Kahn, "The Long-Term Labor Market Consequence of Graduating from College in a Bad Economy," Labour Economics 17 (2010): 303-16. 7 Bureau of Labor Statistics, "Worker Displacement: 2007-2009," available at http://www.bls.gov/news.release/disp.nr0.htm). 8 Bureau of Economic Analysis, National Income and Product Accounts Table 1.1.1, (December 22, 2010). 9 Federal Reserve Statistical Release. “Industrial Production and Capacity Utilization.” Table G.17, (January 14, 2011). 10 Hersh and Vij, "Economic Growth Continues, but Too Slowly to Secure Recovery: Policy Consistency Targeting Jobs Is Necessary". 11 Bureau of Economic Analysis, National Income and Product Accounts. 12 Author’s calculations from U.S. Census Bureau and U.S. Bureau of Labor Statistics 13 Adam S. Hersh and Christian E. Weller, "Measuring Future U.S. Competitiveness: U.S. Productivity and Innovation Snapshot" (Washington, DC: Center for American Progress, 2011). 14 Ibid. 15 Holly Xie, Howard L. Fleischman, Paul J. Hopstock, Marisa P. Pelczar, and Brooke E. Shelley, ""Highlights from Pisa 2009: Performance of U.S. 15-Year-Old Students in Reading, Mathematics, and Science Literacy in an International Context" (Washington, DC: National Center for Education Statistics, 2010). 16 Boushey, Heather. “Compromising Women’s Jobs.” Center for American Progress, (February 9, 2009). 17 Karen Davenport Heather Boushey, Joy Moses, Melissa Boteach, "What the Census Tells Us About the Great Recession: New Data Reveals Decreased Income and Health Coverage" (Washington, DC: Center for American Progress, 2010). 18 U.S. Congressional Joint Economic Committee, "Stemming the Current Economic Downturn Will Require More Stimulus" (Washington, DC, 2008). 19 Lawrence Mishel, Jared Bernstein, and Heidi Shierholz, The State of Working America 2008-9 (Ithaca, NY: Cornell University Press., 2009). 20 Thomas Piketty and Emmanuel Saez, "Income Inequality in the United States, 1913-1998," Quarterly Journal of Economics 118 (1) (2003): 1-39. 21 Lawrence F. Katz David H. Autor, and Melissa S. Kearney, "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics 90 (2) (2008): 300-23. 22 U.S. Congressional Budget Office, "Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from January 2010 through March 2010" (Washington, DC, 2010). 23 Alan Blinder and Mark Zandi, "How the Great Recession Was Brought to an End" (Washington, DC: Economy.com, 2010). 24 A wide array of economists agree with this sentiment. See: US Congress, Senate Committee on Finance, Testimony of Mark Zandi on Using Unemployment Insurance to Help Americans Get Back to Work: Creating Opportunities and Overcoming Challenges,Cong., 111th Congress, 2nd session sess., 2010.; Lawrence H. Summers, “Reflections on Fiscal Policy and Economic Strategy, “Remarks at the John Hopkins University, May 2010; 25 Testimony before Committee on the Budget, U.S. Senate http://www.federalreserve.gov/newsevents/testimony/bernanke20110107a.htm 26 Carmen Reinhart and Kenneth Rogoff, "The Aftermath of Financial Crises," American Economic Review (Papers and Proceedings) 99 (2) (2009): 466-72. 27 Boushey, Heather. “Keep the Money Flowing.” The New York Times, (June 24, 2010). 28 Blinder and Zandi, "How the Great Recession Was Brought to an End". 29 Michael Linden, "Breaking Down the Deficit" (Washington, DC: Center for American Progress, 2009). 30 Ibid. 31 American Society of Civil Engineers. “America’s Infrastructure Report Card.” (March 25, 2009).

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32 As Paul Krugman wrote in a recent column: “If you want a trade policy that helps employment, it has to be a policy that induces other countries to run bigger deficits or smaller surpluses. A countervailing duty on Chinese exports would be job-creating; a deal with South Korea, not.” Paul Krugman, “Trade Does Not Equal Jobs,” The New York Times, Dec. 6, 2010. 33 David H. Autor, David Dorn, and Gordon H. Hanson, "The China Syndrome: Local Labor Market Effects of Import Competition in the U.S. ." Working Paper Cambridge, MA: UCSD and NBER, 2010). 34 Ibid. 35 U.S. International Trade Commission. “U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects.” USITC Publication 3949. September 2007, Corrected printing March 2010, at 2-14, Table 2.3, Available at: http://www.usitc.gov/publications/332/pub3949.pdf 36 Cooper, Michael and Mary Williams Walsh. “U.S. Bills States $1.3 Billion in Interest Amid Tight Budgets.” The New York Times. pg. A1 (January 15, 2011). 37 U.S. Department of Labor 38 Wayne Vroman, "The Role of Unemployment Insurance as an Automatic Stabilizer During a Recession" (Washington, DC: U.S. Department of Labor, 2010).

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