As part of his fiscal year 2017 budget, President Obama has proposed to spend “nearly $6 billion in new funding to help more than 1 million young people gain the work experience, skills, and networks that come from having a first job.” There’s no question that this is a good idea and Congress should fund it. The New York Times editorial board said essentially the same, calling on the Republicans in Congress who oppose it to “consider the desperation that young unemployed people are facing in this country and the civic costs of standing idly by and doing nothing to help them.” If you’re feeling déjà vu, it’s because last year President Obama also asked Congress for appropriations to fund youth employment programs, to the tune of $3 billion. But Congress didn’t fund the president’s proposal last year, and they’re unlikely to fund it this year either. In consideration of this political reality, President Obama should do what he can through executive action. To start with, he could open up 100,000 jobs for young Americans today for free by simply eliminating the State Department’s J-1 visa Summer Work Travel (SWT) program.

SWT is one of many “cultural exchange” programs in State’s larger overall J-1 visa Exchange Visitor Program, which brings over 300,000 foreign researchers, students, and workers into the country every year through a variety of programs, along with 30,000 to 40,000 of their spouses and children who can come with J-2 visas. In the J-1 SWT program alone, approximately 100,000 foreign college students from around the world come to the United States to work for four months in hotels, beach resorts, restaurants, ice cream shops, and various other seasonal businesses, in a variety of low-paying, lesser-skill jobs. Reports like EPI’s Guestworker Diplomacy and the Southern Poverty Law Center’s Culture Shock have explained in detail how SWT is a temporary foreign worker program disguised as an exchange program, and is administered by an agency with zero expertise in enforcing labor and employment laws. Numerous worker abuses and even human trafficking have been facilitated by this temporary work visa program, and the basic structure of the program, which allows such abuses to occur, has not changed.

The legal authority for SWT originally came from the Fulbright-Hays Act of 1961, which created the overarching Exchange Visitor Program to facilitate educational and cultural exchanges with persons from abroad by allowing them to visit the United States temporarily. But most of the individual programs were created entirely by the executive branch, and their regulatory frameworks are outlined mainly in State Department regulations. This is in fact the case with SWT, which operated for decades without any specific congressional authorization, despite the fact that it arguably contains no educational or cultural component. In 1998, Congress did weigh in on SWT, by including one sentence in an omnibus appropriations bill that authorizes the State Department to “administer summer travel and work programs without regard to preplacement requirements.” This authorizing language, however, does not require the State Department to continue to run the SWT program, it simply permits it.

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Senators Patty Murray and Sherrod Brown, together with Rep. Rosa DeLauro, are tackling one of the most important employment issues of the 21st century—wage theft, the failure of employers to pay employees what they are legally owed. This is a serious social and economic problem, which I have estimated could amount to more than $20 billion a year in stolen or underpaid wages, including non-payment of overtime pay, failure to pay the federal, state or local minimum wage, failure to pay statutorily required prevailing wages, forcing employees to work “off-the-clock,” taking illegal deductions from the paychecks of drivers misclassified as independent contractors, and even failure to pay anything at all. A study by the U.S. Department of Labor suggests that minimum wage violations alone range from $8 billion to $14 billion a year.

The consequences of these losses are serious: increased poverty, hardship for the near-poor, lost tax revenues for governments, including lost Social Security and Medicare contributions, and increasing inequality. When the employers who commit wage theft go unpunished it undermines their law-abiding competitors and generally diminishes respect for and faith in the rule of law.

Just as raising the minimum wage could save hundreds of million dollars in safety net program expenditures, failing to pay the current minimum wage causes safety net spending to increase considerably. As DOL found in its recent study of minimum wage violations, “Minimum wage violations led to $5.5 million in additional breakfast benefits in California and $3 million in New York, in FY2011. The school lunch program spent an additional $10.1 million in California and $4.8 million in New York in FY2011 due to minimum wage violations.”

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All eyes will be on the Federal Open Market Committee (FOMC) today as they decide whether or not to follow up December’s interest rate hike (the first since 2006) with another. A consensus seems to be firming that they will hold pat in March and instead are likely to raise in June. Holding still and not raising rates is likely the right decision for two reasons: it will help reverse past damage left over from the Great Recession and will also make the job of future FOMCs easier because it will build credibility.

Both of these benefits stem from the Fed’s inability to keep wage and price inflation from running consistently below healthy targets in recent years. The Fed’s dual mandate is to maximize job-growth and push down unemployment while maintaining stability in inflation. The Fed has adopted an inflation target of 2 percent for “core” prices (ie, excluding food and energy) in the personal consumption expenditures (PCE) deflator. Yet the PCE core deflator has seen annualized growth of less than 2 percent for years now, and there’s no sign yet in the data that it is even moving durably closer to this target.

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The American economy faces two major and interrelated problems, and contrary to what one would expect given the newly resurgent cries of deficit hawks, more spending is essential to solving both.

First and foremost, the economy has still not fully recovered from the Great Recession. Since the enactment of the Budget Control Act of 2011, ongoing austerity measures have meant that now, six and a half years after the Great Recession officially ended, the economy still has some slack and demand for workers is still too low. Indeed, if public spending growth over the current recovery had simply matched that of the early 1980s recovery, the economic recovery would already be complete. Instead, pulling away fiscal support too soon led to unnecessarily depressed output and high unemployment that has persisted throughout the recovery.

But austerity hasn’t just blocked a recovery to pre-recession trends, as bad as that would be. A growing body of research strongly suggests that the decelerating productivity growth that’s shown up in economic data recently is driven in large part by the weak aggregate demand implied by austerity.

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In my new paper on trends in wages in 2015, I discuss the resurgence of the growth in inequality. The main story of 2015 wage trends is that they were very unequal—so much so that the fastest growth in wage inequality between men happened in 2015.

Wage inequality can be measured in a number of ways. For example, there’s the growth of the top 1 percent compared to the bottom 90 percent. For that, we can look at Social Security wage data and find that from 1979 to 2014, wages at the top grew nearly 150 percent, while the bottom grew less than 17 percent. That’s a really stark difference, but we don’t have data yet that would allow us to see what happened in 2015.

Using the Current Population Survey Outgoing Rotation Group (CPS-ORG), we can look at what happened to wages in 2015 at every decile and the 95^th percentile (but no higher because of data limitations). There are two key ways gaps we can look at within those data limitations. One compares the middle to the bottom (the 50/10 wage ratio) and the other compares the top to the middle (the 95/50 wage ratio). In my paper, I show how the 50/10 wage ratio has been fairly steady for the last 15 years. In fact, for men, the 50/10 wage ratio for men was about the same in 2015 as it was in the late 1970s.

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Senator Jeff Sessions (R-Ala.), a Tea Party favorite, and Senator Dick Durbin (D-Ill.), a progressive stalwart, rarely agree on immigration policy. But last week, they did. What’s the issue they agree on? The need to reform two temporary work visas, the H-1B and L-1, because corporations use them to keep wages low and indenture foreign guestworkers—and replace U.S. workers in the technology sector with those lower-paid indentured foreign workers. This isn’t the first time this kind of bipartisan agreement has happened though: last year, 10 senators from across the political spectrum, from Bernie Sanders to James Inhofe, signed on to a letter to the Departments of Justice, Homeland Security, and Labor, asking them to investigate abuses of the H-1B program.

Sessions, who chairs the Senate Subcommittee on Immigration and the National Interest, held a hearing on February 25 to highlight H-1B abuses, especially the scandal surrounding the Walt Disney Company. Disney received much attention last year after the New York Times reported on its practice of laying off American workers and forcing them to train their own replacements on H-1B visas. The hearing was a substantive discussion about what’s wrong with the H-1B program and how to fix it. (The L-1 visa, which is also abused by the same companies and for the same occupations as the H-1B, but has fewer rules and virtually no enforcement, did not get nearly as much attention.) For anyone interested in U.S. immigration policy relating to skilled workers, the hearing is well worth watching in its entirety, but a few moments are worth highlighting.

Sessions and Durbin agreed that the system is being abused, and used primarily in ways that were not originally intended. Namely, most H-1B visas are not used to fill labor shortages or to bring in the best and brightest workers from abroad, or to put them on a path to lawful permanent residence. Instead, they are mainly used by temporary employment agencies that have an offshore outsourcing business model. This means that the H-1B workers who come to work in the United States are rented out to third-party companies, learn their job, and then transfer as much of the work as they can to the foreign offices of their staffing company. These outsourcing companies get about half of the 85,000 H-1B visas that are allotted each year to for-profit firms, and data show they apply for permanent residence for only a minuscule share of their workers. That means their H-1B workers aren’t on a path to permanently benefit U.S. labor market, but instead are being used as temporary, cheap labor and constantly rotated back to their home countries.

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This November, voters in several states will consider ballot measures to raise their state minimum wages. Because all of the proposals would incrementally phase in the higher minimum wages over a period of several years, it is important to look beyond the headline dollar amounts proposed, and consider what the new minimum wages would equal for someone in today’s economy. In other words, voters should evaluate proposed minimum wages after accounting for the inflation that will likely occur as the increases are gradually implemented.

Of course, it’s impossible to know what future inflation is going to be, but a variety of forecasters in both the public and private sector do make an attempt. The table at the bottom of this post shows the schedule of proposed minimum wage changes in California (under two possible ballot initiatives), Colorado, the District of Columbia, Maine, and Washington. It also shows the value of each proposed minimum wage in constant 2016 dollars1 using three different forecasts for consumer inflation—projections for the Consumer Price Index (CPI-U) from the Office of Management and Budget (OMB), the Congressional Budget Office (CBO), and Moody’s Analytics.2

As the table shows, a $12 minimum wage in 2020—proposed in Colorado and Maine—would have a current dollar value between roughly $11 and $10.75, depending on whose projections for inflation you believe. In Colorado, where the minimum wage is currently $8.31, this amounts to a real (inflation-adjusted) increase of between 29 and 32.5 percent over the current minimum. In Maine, where the minimum wage is currently $7.50, the proposed hike amounts to an increase of roughly 43 to 47 percent after inflation.

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This post originally appeared on TalkPoverty.org.

Note to conservatives: Want to know the best way to find savings in government assistance programs? Here’s a hint—it’s not by cutting nutrition assistance to working people who are struggling.

It’s by paying them fairly for their labor.

A new report from the Economic Policy Institute indicates that raising the federal minimum wage to $12 by 2020 would lift wages for more than 35 million workers nationwide and generate about $17 billion annually in savings to government assistance programs.

This report shouldn’t come as a surprise. In contrast to the stereotypes and lies about people with low incomes, the reality is that a majority of public assistance recipients either have a job or have an immediate family member who is working. In fact, 41.2 million working Americans—or 30 percent of the workforce—receive means-tested public assistance. Nearly half of them work full-time.

Not surprisingly, workers who receive public assistance are concentrated in jobs that pay low hourly wages, like the retail, food services, and leisure and hospitality industries. A majority (53 percent) of workers earning $12.16 per hour or less—or the bottom 30 percent of wage earners—rely on public assistance. As wages go down, the percentage of workers relying on public assistance gets higher: 60 percent of workers earning less than $7.42—only slightly higher than the $7.25 federal minimum wage—receive some form of means-tested public assistance. Overall, 70 percent of the benefits in programs meant to aid non-elderly low-income households—programs like food stamps, Medicaid, and the Earned Income Tax Credits—go to working families.

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