• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
CommentaryState of the Union

How guaranteed paid sick days could boost U.S. job growth

By
Dean Baker
Dean Baker
Down Arrow Button Icon
By
Dean Baker
Dean Baker
Down Arrow Button Icon
January 21, 2015, 4:12 PM ET
172601300
Chinese businessman rubbing his temples at deskPhotograph by Getty Images/Blend Images
Add Fortune on Google for similar content.

After President Obama’s State of the Union Address Tuesday night, today’s 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.

About the Author
By Dean Baker
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

nido
Commentary250 Years of Innovation
As an immigrant turned entrepreneur and college president, here is why I celebrate our nation as it turns 250
By Nido R. QubeinJune 25, 2026
45 minutes ago
Asia’s defense boom is rewiring the global arms supply chain
Commentaryarms, weapons, and defense
Asia’s defense boom is rewiring the global arms supply chain
By Chris OberoiJune 24, 2026
15 hours ago
steve
Commentary250 Years of Innovation
Steve Case: America was built by entrepreneurs. Here’s how we keep that edge for the next 250 years
By Steve CaseJune 24, 2026
24 hours ago
t
CommentaryWhite House
Trump mistakes the bully pulpit for bullying leadership — history’s villains were never heroes
By Jeffrey Sonnenfeld and Steven TianJune 24, 2026
1 day ago
mg
CommentaryHealth
The ‘tech neck’ time bomb: why 43 million young Americans could cripple U.S. health care within a generation
By Michael GerlingJune 24, 2026
1 day ago
sb
Commentaryclimate change
The climate policy triangle: why leaders can no longer choose between growth, security and sustainability
By Sebastian BuckupJune 23, 2026
2 days ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
1 day ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
21 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
23 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
Economy
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.