Working Families Need Economic Help Now

President's Column-Rocky Mountain Teamster

It has taken Washington a long time to realize that the U.S. economy will not survive without immediate government help in creating jobs.

Although national unemployment was down a fraction last month, the fact is that bailing out banks and insurance companies with billions of dollars in stimulus money has done little to put unemployed U.S. citizens back to work.

And that is the message that was clearly conveyed to government officials by a group of the nation's labor leaders on behalf of America's working families at President Obama's recent Jobs Summit in Washington, D.C.

The union leaders - including James Hoffa, president of the Teamsters - were from Change to Win unions representing more than 5.5 million working men and women.  They outlined an agressive and innovative set of ideas to confront the continuing job crisis directly, offering solutions to start putting paychecks back into the hands of America's workers immediately.  Ideas were presented that would save and expand jobs with investment in building and maintaining our state and local infrastructure from public safety to health and education, from roads and bridges to water and sewage systems; stimulate investment in emerging industries from weatherization to the development of new energy sources; generate additional jobs through addressing the growing hunger crisis across America with broadened food stamp eligibility as well as continued unemployment and health care benefits; and direct job creation with investment in public service jobs.

Hoffa emphasized the importance of trade policy in rebuilding the economy.  "Our challenge is twofold:  design an action plan to create new export-driven jobs, and make sure we don't lose more existing jobs.  We must do no further harm."  Hoffa pointed to the recently introduced Senate bill - the TRADE Act - as a new beginning for U.S. trade policy.

U.S. trade policy must address the erosion of America's manufactuing base, much of which has occurred since the North American Free Trade was passed in 1993.  As a share of total U.S. jobs, manufacturing has declined since its peak of 40 percent just after World War II to 27 percent in 1981 and now stands at about 10 percent. The United States has lost four million manufacturing jobs in the  past eight years.

This is an amazing loss of good paying jobs.  The decline in manufacturing has diminished the quality of life in all states.

A survey by the Economic Policy Institute (EPI) shows the number of low-paying service jobs is growing in 47 of the 50 states, while the number of better-paying industrial jobs, mostly in manufacturing, is shrinking.  The study found the average annual pay in industries where jobs are declining, such as manufacturing and information technology, is $44,570, while jobs in expanding industries such as leisure and hospitality pay an average $35,410 a year.

Early last year, as a global economic meltdown loomed, Congress worked fast to bail out Wall Street, the banks and insurance companies.  Meanwhile, lawmakers failed to do much for working families who are now suffering a nearly 11 percent jobsless rate.  Homes have been lost to foreclosure, and many Americans can't afford health insurance.  The number of food stamp recipients is at an all-time high as wages remain stagnant.

The loss of the nation's manufacturing base has resulted in fewer dollars in the pockets of the most powerful group of consumers - working men and women - which, in turn, has meant reduced profits for businesses, both large and small.

President Obama said government resources must now be pointed away from Wall Street and toward Main Street's working families.  One of the best ways to do that is for American corporations to rediscover the art of building things here in the United States - durable goods such as automobiles, washers and driers, among many others.

The concern now should be that shifting the economic focus from Wall Street to Main Street might be too little, too late.