FacebookTwitterRedditEmail

How Guaranteed Paid Sick Days Could Boost U.S. Job Growth

After President Obama’s State of the Union Address, the discussion has largely focused on his tax proposals. While these are important measures, two other areas he addressed raise issues that will have at least as many consequences.

Starting with the positive, Obama called on Congress to pass legislation for paid sick days, guaranteeing that all workers have the option to take at least seven days a year off from work due to illness or the need to care for an ill family member. This one should be pretty straightforward.

As two-income households are now the norm for couples, and single parents raise close to 40% of U.S. kids, many workers will need time off from their jobs to take care of sick family members, in addition to the occasions where their own illness keeps them from working. In these situations, workers shouldn’t have to worry about missing a day of pay or possibly losing their job.

Paid sick days is hardly an alien concept. Every other wealthy country has required employers to provide paid sick days for decades. Several state and local governments now do the same. In fact, more than half of the work force (largely the better-paid half) already has paid sick days.

Employers have learned to live with allowing their workers paid sick days. Invariably, they report that the cases of abuse are rare. Most people don’t take half the days to which they are entitled. And, as a practical matter, what employer wants someone running around the office sneezing on their co-workers? Or better yet, on their customers’ food? This one is just common sense.

There is another aspect to paid sick days or any paid time off that is generally overlooked. With unemployment still holding back the economy (or “secular stagnation” to use the now fashionable term), reducing the average hours of those with jobs can increase the number of jobs.

To take some simple arithmetic, if paid sick days or other forms of leave reduced average hours by 2%, this should open the door for 2%, or 2.8 million, more workers to be hired. In reality, the relationship will never be this simple, but the basic point holds. Germany has full employment not because its economy grew more than America’s, but partly because its workers put in 20% fewer hours.

If paid sick days are the good part of the State of the Union, President Obama’s renewed calls for fast-track trade authority is the bad part. The trade deals that are on the table now are not about reducing trade barriers and expanding trade. With few exceptions, tariffs have already been reduced to near zero and most other formal trade barriers have already been eliminated.

Rather than being about trade, these “trade” deals are a mechanism through which our largest corporations can get business-friendly regulations that would never have a chance in Congress. For example, three years ago the Stop On-line Piracy Act (SOPA) got beaten back due to massive grassroots opposition. Since the entertainment industry knows they may never get SOPA through Congress, they will try to get key parts of it in these trade deals.

The same is true of Pharma’s push for higher drug prices here and elsewhere; the financial industry’s efforts to evade Dodd-Frank and similar regulation, and the oil industry’s efforts to stop fracking bans and other environmental regulation.

Studies have shown that trade deals like the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Pact would have a minuscule impact on growth or jobs and are simply backdoor tools for allowing business to get special interest rules that they could not get approved otherwise.

Trade deals like the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Pact are simply backdoor tools for allowing business to get special interest rules that they could not get approved otherwise.

It is unfortunate that President Obama had to ruin his State of the Union Address with his appeal for these pacts.

Dean Baker is a macroeconomist and co-director of the Center for Economic and Policy Research in Washington, DC. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University.

This article originally appeared in Fortune.

More articles by:

Dean Baker is the senior economist at the Center for Economic and Policy Research in Washington, DC. 

bernie-the-sandernistas-cover-344x550
April 09, 2020
Vincent Emanuele
The New Normal: Cascading and Multilayered Crises
Jeffrey St. Clair
Bernie’s Last Tape
John O'Kane
Remove the Boomer Virus and What Virus Remains?
Kevin Bixby – Daryl T. Smith
The Border Wall Risks Us All
Nick Pemberton
Could COVID-19 Count Fox News Among Its Victims?
Howard Lisnoff
American Exceptionalism in the Face of Covid-19
Charles Pierson
We Are Living (And Dying) in Poe’s “Masque of the Red Death”
Sam Husseini
Sanders Suspends: What Happened? What Now?
Binoy Kampmark
Banal Terrors: Pandemics and the Ordinary Business of War
Ted Rall
Why We Need a New Progressive Party and How We Can Create It
Walden Bello
Martin Khor: the Making of a Global Activist
Ariel Dorfman
COVID-19 and the Lessons of Life in Exile
Merriam Ansara
John Lennon in Quarantine: a Letter From Havana
George Wuerthner
Politics and Corruption at Grand Canyon
Eugene Schulman
Lost in the Pandemic: the Forever Wars
Dean Baker
Basic Economics for Economic Columnists: a Depression is a Process, Not an Event
George Ochenski
The Dishonest Mr. Daines
Mike Ferner
Love in a Dangerous Time
Brian Horejsi
Beware Government Secrecy in Times of Pandemic
Sam Pizzigati
No Fennel in the Sausage, No $600 for the Jobless
Jason Christensen – John Carter
Conservation Groups Oppose the Nature Conservancy’s Cattle Grazing Development Project on the Border of Canyonlands National Park
April 08, 2020
Melvin Goodman
The Impact of COVID-19 on the Body Politic
Eve Ottenberg
Amid Plague, Sanctions are Genocide
Vijay Prashad, Du Xiaojun – Weiyan Zhu
How China Learned About SARS-CoV-2 in the Weeks Before the Global Pandemic
Bill Quigley
Seven Disturbing Facts About COVID-19 in Louisiana
Joyce Nelson
BlackRock Takes Command
Geoff Dutton
Coronavirus as Metaphor: It’s Not Peanuts
Richard Moser
From Strike Wave to General Strike
Gary Leupp
Could COVID-19 Kill Capitalism?
Thomas Klikauer – Nadine Campbell
Corona, Capital and Class in Germany
Tom Crofton
Aspirational vs Pragmatic: Why My Radicalness is Getting More Radical
Steve Kelly
Montana Ballot Access Decision Suppresses Green Party Voters
Jacob Hornberger
Muhammad Ali’s Fight Against the Pentagon
Phil Mattera
The Rap Sheets of the Big Ventilator Producers
Manuel García, Jr.
Why Remdesivir and Hydroxychloroquine for COVID-19?
Rick Baum
When “Moderate” Democrats Lead the Ticket and Win, Down-Ballot Candidates Soon Suffer Losses
Jake Johnston
Tens of Millions Will Be Pushed into Poverty Amid COVID-Induced Recession
Kim C. Domenico
Healthy and Unhealthy Fear in the Age of Coronavirus
John W. Whitehead
Draconian Lockdown Powers and Civil Liberties
Binoy Kampmark
University Bailouts, Funding and Coronavirus
Luke Ruediger
BLM Timber Sale Increases Fire Risk, Reduces Climate Resilience and Harms Recreation
John Kendall Hawkins
Slavoj Žižek’s Virulent Polemic Against Covid-19, and Stuff!
Nyla Ali Khan
Finding Meaning and Purpose in Adversity
April 07, 2020
Joel McCleary – Mark Medish
Paradigm Shift by Pandemic
Matt Smith
Amazon Retaliation: Workers Striking Back
FacebookTwitterRedditEmail