[Congressional Record Volume 142, Number 32 (Monday, March 11, 1996)]
[Senate]
[Pages S1781-S1782]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      WANTED: JOBS OF LAST RESORT

  Mr. SIMON. Mr. President, one of the things I have stressed 
repeatedly on the floor of the Senate is that without having a jobs 
component for people of limited skills, welfare reform is a sham. It is 
public relations for those of us who hold public office, not help for 
people on welfare and not help for the taxpayers.
  Recently, Prof. Sheldon Danziger and Peter Gottschalk had an item on 
the New York Times op-ed page, titled ``Wanted: Jobs of Last Resort.'' 
I ask that it be printed in the Record. I highly recommend it to my 
colleagues.
  The article follows:

                      Wanted: Jobs of Last Resort

               (By Sheldon Danziger and Peter Gottschalk)

       Members of the National Governors' Association were on 
     Capitol Hill yesterday, once again pressing their case for 
     welfare reform. The group has captured glowing reviews from 
     both President Clinton and Congressional Republicans for a 
     package of proposals that would favor block grants to the 
     states over a guarantee of Federal aid.
       Liberal Democrats in the House have criticized the plan, 
     saying its cuts in Federal spending are simply too hard on 
     the poor. But they have not given enough attention to

[[Page S1782]]

     what is perhaps the plan's most problematic feature: It would 
     end welfare recipients' entitlement to cash assistance--after 
     as little as 21 months in Connecticut--even for those who, 
     though diligently searching for work, cannot find anyone to 
     hire them.
       These provisions assume that anyone who really wants to 
     work can find a job. And no one would dispute that any 
     welfare reform proposal should require recipients to make a 
     serious effort to find employment. But the proposal must be 
     more realistic about the current demand for low-skilled 
     workers, which has dropped steadily over the last two 
     decades.
       To take just one small but alarming example, the number of 
     high school dropouts who are employed has steadily dropped 
     since 1970--while the number of employed college graduates 
     has risen by more than 40 percent.
       Economists of all political persuasions have documented the 
     increased extent of insecurity among American workers. 
     Moderate economic growth since the early 1980's has on 
     average raised our living standards, but low-skilled 
     workers have seen the least benefit. The lack of jobs that 
     pay adequately obviously bodes even worse for people 
     trying desperately to get off welfare. Today, 45 percent 
     of women who leave welfare find themselves back on it 
     within a year.
       The decline in demand for less-skilled workers is not so 
     much the fault of Republicans or Democrats as it is of the 
     changing economy. Real wages for low-skilled workers steadily 
     diminished under Presidents Jimmy Carter, Ronald Reagan and 
     George Bush, just as they continue to erode today. But these 
     Administrations do share responsibility for the extent of the 
     hardship. Government simply has not adapted its policies to 
     deal with an economy in which the number of industrial jobs 
     is shrinking.
       The consensus among most Democrats and Republicans that 
     welfare should be transformed from a cash-based to a work-
     based safety net is a promising development. But it will not 
     be fulfilled by the governors' compromise unless their plan 
     provides emergency help for people who have tried to find 
     work and can't. Low-wage public service jobs of last resort 
     would be the best way to provide such help.
       The governors can improve their plan, which they hope will 
     form the basis of Federal legislation, by requiring that 
     states offer unsuccessful job seekers the kind of work-based 
     safety net that Gov. John Engler has proposed for Michigan.
       His proposal allows recipients who cannot find employment 
     to perform community service in return for continued cash 
     assistance. This provision is important in an economy in 
     which the trend toward downsizing shows no sign of slowing, 
     and it will be critical during any future recession. The 
     National Governors' Association would be wise to include Mr. 
     Engler's work-for-your welfare community service idea in its 
     proposals.

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