NEW in the NYT from @BharatRamamurti and me: unless Congress acts, millions will take a paycut as they return to work. Our Fair Wage Guarantee would parlay the $600 UI boost into a wage hike, increasing demand and helping low-wage workers most. 1/9 nytimes.com/2020/07/05/opi…
The $600 has been a lifeline for unemployed Americans during the pandemic. It’s kept poverty rates from spiking and the bottom from falling out of our economy. Because many laid-off workers have low wages, 68% of unemployed workers have actually seen their incomes increase. 2/9
The UI boost expires this month & Congress must #savethe600. [Expiring eviction moratoria should also be extended. We need #RentReliefNow.]
But we shouldn’t miss the opportunity to raise wages & capture the macroeconomic benefits of the $600 on the other side too. 3/9
But we shouldn’t miss the opportunity to raise wages & capture the macroeconomic benefits of the $600 on the other side too. 3/9
Even if Congress saves the $600, many will lose the bump when they return to work (~5 million did in June).
Why? Because the law forces unemployed workers to take “suitable” work at wages comparable to their last job, not their new income level, or LOSE UI benefits. 4/9
Why? Because the law forces unemployed workers to take “suitable” work at wages comparable to their last job, not their new income level, or LOSE UI benefits. 4/9
For example: in a typical state, someone who was making $480/week (or $12/hour) at their last job is now making $840/week (or $21/hour) on UI. If they get a $12/hour job offer, they must take the job (and the pay cut) or lose UI benefits altogether.
Let’s flip the script. 5/9
Let’s flip the script. 5/9
How? It’s simple: Our Fair Wage Guarantee would change the definition of suitable work to mean work with weekly earnings comparable to your current weekly UI benefit. Laid-off workers can bargain for an offer at their new, higher income level. Then we subsidize the delta. 6/9 
Workers have lost too much power. Let’s get some back & raise wages for millions as they come off unemployment, producing BIG long-term gains for workers and for our economy. We can use “sticky” wages to our advantage, creating a more resilient economy for the long-term. 7/9
The FWG is especially good for Black and Hispanic workers, who are overrepresented in the lowest-wage jobs and are seeing the biggest income gains from UI now. Our plan can reverse some of the racial inequities in the labor market. 8/9 cbo.gov/system/files/2…
We waited a decade for wage gains after the Great Recession. This time can be different. Congress should act now to #savethe600 and give millions of workers a raise with the Fair Wage Guarantee, speeding up our economic recovery along the way. 9/9
