The State of Union and Economic Justice

As the economic recovery has continued to lag, many of the most vulnerable members in American society have come under increased threat. Social safety net programs, the bulwark standing between many working families and poverty and the reason that millions of the Americans who live in poverty are able to keep afloat, are under stress and attack as has rarely been seen before. This, at a time when some 46.2 million Americans– the highest such total reported by the Census Bureau in over 50 years– are living below the poverty line, is among today’s great crises. In next week’s State of the Union, we look for President Obama to address three core issues of economic justice: unemployment insurance, the minimum wage and tax reform.

Even as the December unemployment report showed notable progress in putting Americans back to work, we are far from calm waters. President Obama should call on Congress to pass a yearlong extension of federal unemployment benefits, which are currently set to expire at the end of February, with all possible speed. Especially in the short term, unemployment benefits provide a key form of economic stimulus. Just as no doctor would advise that a patient stop a course of antibiotics at the first signs of regaining health, so, too, should we not cut off the economy from its best medicine as it climbs back to its feet.

When workers lose their jobs, unemployment benefits help ensure that those workers are able to stay on their feet and provide for
themselves and their families while looking for work. In a time when, on average, one in six Americans – and one in five children – is hungry, we should be working to fight poverty at every possible turn, rather than slamming the door on those in need.

Our focus cannot only be on the short term, important as that is. In his State of the Union speech, President Obama should also call for increases in the minimum wage. After adjusting for inflation, average hourly earnings have not increased in 50 years, but the cost of living certainly has. Keeping wages so low has forced many working Americans into a position where, despite an honest day’s work, they cannot make ends meet. Such low wages mean that many must take on second or third jobs (if they can be found), or risk sliding into poverty. Low wages in turn hinder the economy as a whole, capping the ability of the average American  consumer to support businesses. We must work to ensure that Americans at all levels of income can afford to keep roofs over their heads and bread on the table – and that requires a living minimum wage.

In addition to calling for stronger programs that stimulate the economy and help the most vulnerable, President Obama should call for an end to programs that endanger America’s long-term economic health. If allowed to continue at unsustainable levels, America’s national debt will jeopardize the future of the American economy. In the long run, the engines driving the growth in the national debt are the Bush tax cuts and the wars in Iraq and Afghanistan. If Congress and the President want to tackle seriously the long-term threats to America’s economic health, they cannot and should not do so by slashing social safety net programs that help working families stay out of poverty – rather, they should focus on the principal causes behind these problems.

President Obama knows this: He said as much in his 2011 State of the Union address, when he declared, “We simply can’t afford  a permanent extension of the [Bush] tax cuts for the wealthiest 2 percent of Americans.” We hope to see President Obama reiterate this position on Tuesday in his 2012 address.

As Reform Jews, our commitment to economic justice stems from our tradition. We are commanded in Proverbs 31:9 to “speak up, judge righteously, champion the poor and the needy.” The URJ recognizes that an unjust tax system can restrict the government’s ability to, as stated in a 2003 resolution, “address adequately important national priorities, including the eradication of poverty, or to maintain existing social programs that benefit poor people.” In the midst of the worst economic downturn since the Great Depression, we hope that President Obama will use the State of the Union to call for both of these pillars of economic justice – a strong social safety net and a fair tax system.

Watch the speech on Tuesday, January 24, at 9 p.m. ET to hear if President Obama mentions economic justice issues –particularly unemployment insurance, minimum wage and tax reform – and make sure to follow along with the RAC’s BINGO board to see what else he discusses. Also, keep checking RACblog between now and the speech for more updates on the issues we chose for our BINGO board.

Photograph courtesy DC Streets Blog