CONTINUED
Stabilizing and strengthening our work force requires an all-out blitz that will take every magic trick we’ve got. Therefore, since this is truly a multi-dimensional challenge, both the private sector and the federal government must be part of the solution.
The contribution of the private sector to job creation is beyond significant. Startup funding in 2024 reached almost $314 billion. Analysis by the Congressional Research Service found that even though “high-impact” businesses (defined as “having sales that have doubled over the most recent four-year period and have an employment growth quantifier of two of more over the same time period”) only account for between 5-6 percent of all businesses, they “account for ‘almost all net job creation in the economy.’” That’s crazy!
Small businesses are also key. There are 36.2 million small businesses in the United States. They account for almost 46 percent of private sector employment and create roughly 9 out of every 10 net new jobs.
The federal government must also play a significant role. We can practically hear the splash from Tea Partiers jumping into Boston Harbor. No doubt the term “federal jobs program” will completely freak some conservatives out. They will probably argue that we don’t need some big government, “Socialist” program because our jobs and wage issues will eventually be fully corrected by market forces.
… which would be a strange reaction because U.S. Works is actually a very conservative-minded approach. After all, it replaces a no-strings-attached check with actual jobs – and we all know how much Republicans hate handing out checks to people! : )
And don’t forget! We need to design smart programs that make sense because we’re spending the money anyway.
In 1996, Temporary Assistance for Needy Families (TANF) replaced Aid to Families with Dependent Children (AFDC), which provided cash assistance to families with children experiencing poverty. TANF is specifically intended (supposedly) to help low-income Americans find and keep jobs. The United States of America has paid $16.5 billion every year since 1996 to fund Temporary Assistance for Needy Families (TANF) state block grants, which translates to $462 BILLION. States spend another $15 billion every year. Setting aside that the $16.5 billion has never been adjusted for inflation – which has caused its real value to fall by 40 percent – as usual, there is a super swampy side to the story. In a nutshell, the states have egregiously abused the TANF program.
After analyzing state and federal TANF data from 2018, the Pew Research Center released a brief titled States Raid Fund Meant for Needy Families to Pay for Other Programs. They found that states use only roughly 11 percent of TANF funds for work-related activities, including education and training (17 states spend less than 5 percent). Some states even spend the funds on programs that benefit people who aren’t in poverty, like preschool programs and college scholarships for middle-class kids. At the end of the day, only 1 in 4 TANF cases close because people actually find jobs.
The Government Accountability Office (GAO) reports this: After conducting state audits, “auditors reported 50 findings that were ‘severe,’ meaning they involved a material weakness, and 89 that had significant deficiencies.” These infractions are “considered serious, as they can indicate severe, longstanding, and uncorrected risks and issues in a federal program. GAO identified TANF fraud risks – such as billing fraud – in its preliminary review of repeat single audit findings. For example, audits spanning seven fiscal years found that a state agency did not require TANF subrecipients to include supporting documentation for reimbursement requests. For example, in 2018, a federal court found that some employees of a TANF subrecipient submitted inflated payroll expenses, including for nonexistent personnel, and inflated invoices with false mileage information. They spent the funds on real estate, resort vacations, and cosmetic surgery, among other things.”
Guys, this is ridiculous. We have to at least try to start doing things that make sense.
Clients must be physically present at an Empower Society location to receive credit (the program will have solutions in place for childcare, transportation, and other access issues). Special arrangements will be made for participants who do not live within 30 miles of a Center.
Empower Society clients first meet with highly qualified case managers who assess their skills, then help them create an in-depth profile for potential employers. The profile includes information like work history, education and life skills, plus provides an opportunity for the client to share his or her professional goals, a personal statement, and even an introductory video.
A dedicated website, facilitated by the U.S. Department of Labor, will serve as a clearinghouse of job listings, searchable by category, skill set, and location. This already exists but needs to be modernized. Two new categories will be added to the existing site. The first includes jobs generated by the projects funded by the newly established National Infrastructure Bank. The United States doesn’t currently have a National Infrastructure Bank but should. In fact, it was a majorly lost opportunity – and, quite frankly, irresponsible – that the Biden administration and Congress didn’t create one when they passed the $1.2 trillion-dollar Infrastructure Investment and Jobs Act in 2021.
The National Infrastructure Bank is a financial institution – funded with seed capital from the government, then leveraged by our capital markets – that can provide low-interest loans, issue bonds, provide insurance for the bonds of state and local governments, streamline the construction process, and coordinate and prioritize the rebuilding efforts. It’s a no-brainer, which is, of course, why Congress didn’t do it.
The other new category on the website is the cornerstone of U.S. Works. One of the main criticisms of the Civil Works Administration – a work-relief program established by President Franklin Roosevelt’s New Deal to provide temporary jobs for over 4 million Americans – was that people were just on the government payroll and not really doing anything... just “pushing leaves around” if you will. That won’t be the case here. These are real jobs.
Although many infrastructure projects are vast in scope and require mid-skill and/or experienced labor, this country has tons of projects that can benefit from unskilled labor as well. U.S. Works will create these jobs – construction, landscaping, street maintenance, pressure washing, litter removal, trash/recycle collection, graffiti removal, hospitality, warehousing, retail, janitorial services, etc. – and will offer these services at a discounted rate to the public, from individuals to cities to businesses.
The revenue U.S. Works receives by charging for these services will reduce the overall cost of the program, and the services offered will provide an excellent way for businesses and communities to receive low-cost, quality labor while making a positive impact in their community.
Organize high-quality, highly accountable registered mentor and apprenticeship opportunities.
Implement a federal policy that guarantees workers paid time off to care for their new babies or for a sick family member.
Fully support new small business owners and entrepreneurs.
Provide significant transitional assistance to workers displaced by advances in technology and/or globalization.
Protect low‑income workers from monopsony and collusion.
Modernize labor laws through waivers from federal law to allow state experimentation.
Call on state and local governments to dismantle unjustified barriers to upward mobility caused by occupational licensing.