Easing Downward Mobility

Ross Eisenbrey and Maurice Emsellem

March 08, 2007

Ross Eisenbrey is the vice president and policy director of the Economic Policy Institute (EPI). Maurice Emsellem is the director of public policy for the National Employment Law Project (NELP).

Congress will soon debate whether to renew President Bush’s fast track authority to negotiate trade deals, and lawmakers—and even corporate America—will talk about the fate of U.S. workers hurt by increased imports or offshoring exacerbated by past deals.

Several Democrats are proposing the idea of “wage insurance,” giving laid-off workers up to $10,000 a year for two years—but only if they lost their job due to offshoring and only if they take a job with a big pay cut, unlike traditional unemployment benefits that are given to all workers that lose their jobs. What’s wrong with helping out workers who are having a hard time finding a good job? Even with the new Congress, this push for wage insurance could do more harm than good to laid off workers and the programs that they and their families rely on to get back on their feet.