Obama Says Economy A Disaster For Middle Class

January 30th, 2009|Sasha James
President

“The recession is deepening and the urgency of our economic crisis is growing,” Obama said at a White House ceremony, citing Commerce Department figures showing the economy shrank 3.8 percent at an annual pace in the last three months of 2008.

The president used the event to prod Congress to continue making progress on economic stimulus legislation. The U.S. Senate is considering a package of tax cuts and spending programs of almost $900 billion after the House earlier this week approved an $819 billion stimulus plan. Obama also demonstrated his support for unions, which backed him in the presidential election.

He said he would reverse former President George W. Bushs labor policies by signing three executive orders to enhance the ability of workers to organize.

“I do not view the labor movement as part of the problem,” Obama said. “Its part of the solution. We need to level the playing field for workers and unions.”

Supporting Unions

One order cancels Bushs requirement that federal contractors post notices telling workers they can limit their financial support of unions. Obama also barred federal contractors from being reimbursed for expenses that could be used to dissuade workers from forming a union. A third order requires government contractors to post notices alerting workers of their right to unionize.

The presidents actions will help strengthen organizing efforts, said Jill Cashen, a spokeswoman for the United Food and Commercial Workers Union.

“It tells workers at federal contractors that the right to organize will be protected and that lawbreaking on the part of their employer will not be tolerated,” Cashen said.

While they only apply to federal contractors, the government as a major purchaser of goods and services sets a model “for private sector workers as well as for the direct federal workforce,” said Anna Burger, secretary-treasurer of the Service Employees International Union and director of Change to Win, a coalition of labor groups.

Biden will oversee a panel made up of Cabinet officials, business, labor and advocacy groups to ensure that policies and legislation help increase the living standards of the middle class.

Focus on Middle Class

The task force will hold its first meeting Feb. 27 in Philadelphia. Biden said it will address expanding jobs in alternative energy and environmental cleanup. Other sessions will focus on retirement, child care, workplace safety, dealing with education costs and creating future jobs, he said.

“Itll be our responsibility to offer to the president and to the nation clear and specific steps that we need to take to meet these and other concerns,” Biden said.

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