March 14 Presentation to the CA Labor Federation

1. We’re In This Together
Jared Bernstein
Center on Budget and Policy Priorities
Presentation to CA Labor Federation
Unemployed in America: Causes,
Consequences, Solutions
3/14/12
bernstein@cbpp.org

2. Source: Inclusive Fitness in Evolution, Ferriere and Michod, 2011.

3. Does This Map Onto Economic Policy?
• Growing Together, Growing Apart
• Do American Corporations need American
Consumers?
• Exports/Profits
• Jobless Recoveries
• Fiscal Policy, Public Infrastructure, Education
• Political Dysfunction!

5. 5

6. The Lower Your Income, the More Full
Employment Helps You

8. CA

9. Dependent Var: Change in State Unemp Rates
Coef t-stat R-Sq
Neg Eq Sh 0.10 6.33 0.49
Union Cov 0.00 0.03 0.49

10. How Do We Get Back on Track, 1?
• Emphasize “Relatedness,” Not YOYO’ism
• Implications:
--insourcing
--stronger fiscal positions (new revenue)
--collective bargaining
--full employment
--commitment to public infrastructure and
education
• Opportunity for all!

12. Dif=0.45
Dif=0.31
From Baily, Dynarski, Chapter 6, Whither Opportunity 12

13. Back on Track, #2
• Campaign finance reform
• Efficient gov’t sector (inefficient gov’t also reinforces cycle)
• Clear-eyed look at what’s coming and how that relates to
role of gov’t (demographics, climate, innovation, global
connectedness)
• Much more intensive research and outreach agenda re
trickle down, deregulatory failures
• Political dysfunction should scare people (debt ceiling)
• Remember compromise?
• Research is important but equally important is how we
explain, disseminate it
• Fairness, common sense, YOYOs vs WITTs
13