Faced with the prospect of an economy that will still be circling the drain in November, and probably recognizing that the intellectual firepower of such luminaries as Vice President Joe Biden, Harry Reid and certain Super PACs are not necessarily assets to the cause, Labor Secretary Hilda Solis stepped up to the plate on Monday to pinch hit for Team Obama.
And she hit a home run.
The Department of Labor announced that it would hand out almost $100 million in grants to states for “work sharing programs.”
“Work sharing” in this case is government-speak for covering salaries.
The program will presumably prevent layoffs in the private sector by letting businesses have employees work as part-timers, with the Federal Government picking up some of the slack for the balance of full-time wages.
The press release from the DOL says in part: “Work sharing allows employees to keep their jobs and helps employers to avoid laying off their trained workforces during economic downturns by reducing the hours of work for an entire group of affected workers. Workers affected by reduced hours can have their wages compensated with a portion of their weekly unemployment compensation payments.”
The program gives $99,750,000 to 27 states.
The program was passed in the House in February of this year under House Resolution 3630 which interestingly enough has as one of its miscellaneous provisions: “Prohibits the budgetary effects of this Act from being entered on either PAYGO scorecard maintained pursuant to the Statutory Pay-As-You-Go Act of 2010.”
Ergo, the effects of these “grants” on the deficit will not be entered on to the Pay-As-You-Go Scorecard.
It also passed resoundingly in the Senate 89-10 (with Rand Paul of Kentucky not voting) as Amendment 1465 to the House bill.
And, believe it or not, this was a Republican effort; the House Bill contains an extension of the payroll tax reduction and was given the title: “Middle Class Tax Relief and Job Creation Act of 2012”
It would have been better for Congress to fight tooth and nail for tax cuts and to remain solidly behind business.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 30th, 2014 | John Ransom
In Other News: Pro-Palestinian Rally in Tel Aviv Broken Up by Rocket Fire from Palestine | Michael Schaus
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 29th, 2014 | John Ransom