Alison Channon, Program Assistant

Over the past few years, we’ve all heard a lot of people blame a lot of different things for high unemployment. Is it high taxes? Burdensome regulations? An angry jobs monster?

This week, Dylan Matthews of the Washington Post reviewed economic evidence which reveals that the biggest driver of high unemployment is low demand. Over 8 percent of Americans are unemployed, and lower-income and middle-class Americans have seen their income and wealth decrease over the last decade. So as you might imagine, many are pinching their pennies and spending less on goods and services. The end result is that businesses don’t have enough money or confidence to hire more workers.

The key, then, to really chipping into high unemployment numbers is creating more demand for goods and services. Matthews suggests looser monetary policy and fiscal stimulus. Here’s another idea: increase the minimum wage.

Wednesday, I attended a rally organized by the NDD Summit, a group that the National Women’s Law Center has joined that is working to protect important domestic programs that would face across-the-board cuts starting in January. These are programs that educate our children, support our elderly citizens, and help low-income women afford child care so they can work and their children can get a strong start in school. At the rally, I listened to a mother share how the Child Care and Development Block Grant (CCDBG) helped her achieve self-sufficiency when she was struggling.

Three years ago, after the dissolution of her marriage, Rita Ngabo found herself jobless and homeless with a 9-month old baby. With the help of temporary cash assistance and a child care subsidy through CCDBG, Rita was able to attend classes to develop work skills and go on interviews to secure a job. As Rita says, it was hard work, but it paid off. She is now a child care case worker in Maryland who helps other parents who were in her shoes, and her daughter is thriving.