As the dust begins to settle from chaos in the capital markets and we continue to debate remedies for Wall Street firms, we should also consider what these developments mean for American workers and their families.

It is, of course, necessary to calm the financial markets. But, even with the federal bailout, the financial crisis will likely intensify job losses around the country over the next several months. Indeed, this already has showed up in the new employment numbers released Friday by the Labor Department. Credit markets will remain very tight and both consumer and business spending will slow. Ironically, millions of American workers will end up paying a high price for the reckless behavior of Wall Street financiers.

But, even more disturbingly, the crisis will likely distract us from the very real longer-term problems of the U.S. labor market, and drain critical resources from efforts that might have been made to address these problems. For these reasons, the financial meltdown threatens to obscure what remains be the key economic issue of our time -- namely, the rising inequality and insecurity felt by American workers.

Amid the financial turmoil, let's remember some other key facts:

• In the past eight years, while American productivity has grown by nearly 20 percent and executive pay has skyrocketed, the earnings of the average American (adjusting for inflation) have actually declined;

• In the past 30 years, the incomes going to the top 1 percent of households (those now earning over $400,000 a year) have much more than doubled, while the earnings of men with only high school diplomas have steadily fallen;

• In a volatile economy, the number of Americans without basic supports like health insurance -- especially during periods of joblessness -- steadily rises, and is now at about 46 million.

In short, we have generated a new "Gilded Age" in the past several years, and a volatile one at that -- one where the earnings of the wealthy have soared while those of the American middle class have stagnated and basic benefits have become more precarious. And now those middle class Americans will be further punished while Wall Street executives are protected from the consequences of their folly.

What can be done about all this? In the short term, steps should be taken to bolster the U.S. economy, and limit the downside risks for American workers. This means another stimulus package, but one better targeted than the last one to the needs of lower-to-middle income families. It should focus on extensions of unemployment insurance, food stamps to the needy and aid to states that have been particularly hard hit (such as Pennsylvania).

But over the longer term we must still find ways to invest resources in ways that will improve the earnings prospects of workers and repair the badly frayed safety net that protects them. Sensible and cost-effective investments in education and job training -- from pre-kindergarten programs to higher education -- must remain a top priority, so more workers can share in the prosperity generated by the "New Economy." Offering affordable health insurance to all American families, and extending basic protections such as pension coverage, child care and parental leave remain critical as well, so that working parents and their families are protected during times of personal upheaval and when they age.

And where do our presidential candidates stand on these issues? With growing pressure on the federal budget, both candidates may need to rethink parts of their proposed agendas. But Sen. John McCain's economics package -- which has placed top priority on locking in the Bush tax cuts for the wealthy and generating new ones for corporations -- is now hopelessly out-of-date.

In contrast, Sen. Barack Obama's call for a new stimulus package, which is better targeted than the last one to those in need, is clearly on the mark. And many of his proposals on education, health care and other benefits remain sensible investments in our economic future and are sorely needed by American families as well.

As difficult choices must be made over the weeks and months ahead, it is important that we not lose sight of exactly who has won and lost in the recent American economy, and what our greatest needs continue to be. It would be tragic if America's working families are further hurt while those who have already profited enormously are largely protected from the negative consequences of their actions.