“The 21st Century Full Employment and Training Act”
REPRESENTATIVE JOHN CONYERS, JR.
The Full-Employment and Balanced Growth Act was signed into law by President Carter in 1978. The law was the nation’s first attempt at officially establishing a national full-employment policy for the United States. Although Senator Hubert Humphrey of Minnesota and Representative Augustus Hawkins of California were the primary sponsors of the bill, the legislation was also supported by civil rights and labor organizations who saw the bill as a way to mitigate the economic hardships being felt by low-income Americans.
The sponsors of the legislation intended that the Act would create a full-employment society brought about by direct hiring policies. If the private sector was unable to create a full-employment society through gradual economic growth after 10 years, the Act would obligate the government to step in and create “last resort jobs” to fill the employment gap.
Unfortunately, the intent of the Act’s sponsors was frustrated when the bill reached the United States Senate, where a coalition of Republicans and pro-business Democrats were able to successfully weaken the bill.
Representative Conyers has introduced legislation that is tailored to fit our current economic realities, but which also embodies the spirit of the original Humphrey-Hawkins legislation: the “21st Century Full Employment and Training Act.” The Act aims to create a full employment society over the next decade.
The bill establishes targets for unemployment:
The Act establishes of a Full Employment and Training Trust Fund” with two separate accounts. These two accounts will direct funding to job creation and training programs.
If these unemployment benchmarks are not met, 90 percent of the funds in each account will be automatically disbursed.
67 percent of all revenues deposited into the trust fund will accrue in the job creation grant program account 33 percent of the total funds will accrue in the job training trust account.
Dual Job Creation Focus: Direct Jobs Grants and WIA Training Programs
The first trust fund account will direct funds to a new innovative direct jobs program. Funds will be distributed by formula through the Department of Labor to larger cities, and to states to be passed through to smaller localities and rural areas.
The program would allocate funds based on the CDBG formula modified to consider unemployment data. Local elected officials who are closest to our communities and needs on the ground would work with community groups and labor leaders to identify critical projects and connect workers to projects right away.
Jobs could be located in the public sector, community-based not-for-profit organizations, and small businesses that provide community benefits.
The Program will adopt a two stage approach to ensure immediate job creation and allow for a longer term planning process that involves community input and a focus on education and career development.
The second trust fund will distribute funds to job training programs covered under the Workforce Investment Act.
These funds will fund innovative job training initiatives including 1-Stop Job Training Programs and the Job Corps.
Revenue: Taxing Wall Street Speculation to Pay for Main Street Jobs
Revenue for the trust fund will be raised through a tax on Wall Street financial speculation, i.e. on stock and bond transactions. The tax will cover:For additional information, please contact Michael Darner on my staff at 202.225.5126 or michael.darner@mail.house.gov.