The administration's budget for FY 2011 moves the country in the right direction.  The President has proposed the types of investments we need to get our economy back on track in a sustainable way—funding for infrastructure development, education, job training and green jobs.  And the administration "gets it" that new jobs must be good jobs. 

Its budget proposal would restore staffing for worker protection programs to their 2001 levels, with increased funding for health and safety protections; minimum wage and overtime protections; the Solicitor's Office at the Labor Department; and international workers' rights.  The budget includes a new initiative to crack down on businesses that misclassify their employees as independent contractors in order to evade their responsibilities as employers, and it establishes a new fund to help states offer workers paid family leave.

But the administration's FY 2011 budget proposal does not do enough to address the jobs deficit—which by all accounts will continue through next year and beyond.  The budget includes $100 billion for immediate job-creating investments, but this is a drop in the bucket compared to the more than $400 billion in additional investments that experts believe is necessary this year.

In Washington, too much attention is being paid to the budget deficit—most of which President Obama inherited from his predecessor.  Not enough attention is being paid to our massive "jobs deficit."  We need to create over 10 million new jobs just to get back to where we were when the recession began.  This massive jobs deficit demands bold, urgent action to create new jobs and grow the middle class.  In any case, the most effective way to reduce the budget deficit is to eliminate the jobs deficit.

To create the jobs we need, Wall Street and the super rich—who have benefited for years from the Bush economic policies—should pay their far share of the bill to rebuild the economy that they destroyed.  When Wall Street was on the brink of disaster, we bailed out the banks, but Americans are not their ATMs.  As Wall Streeters are busy cashing their bonus checks, now is the time for immediate action to stabilize the economy for working families on Main Street. 

The administration rightly proposes to reduce tax incentives for firms that move jobs overseas; reduce tax subsidies for oil and gas firms; and impose a "financial crisis responsibility fee" on large financial institutions. But Wall Street should be asked to do more—for example, a minimal tax on financial speculation could go a long way toward funding the additional investments needed to eliminate our jobs deficit.

The White House and Congress have taken many steps to address the concerns of working families, but we will continue to fight hard and ensure those concerns are fully met.  The labor movement will work with everyone who wants to help working families—and we will push through any opposition that wants to keep the status quo.

For Information: atune@aflcio.org, evale@aflcio.org, jgoldstein@aflcio.org or
202-637-5018