Pocket Political Education Slides & Handouts
The Nation in Crisis H Growing Insecurity Unstable employment Stagnant wages Insecure pensions Roller-coaster stock market H Greater Burdens Longer work hours Loss of family time Rising costs of housing, health care, education, utilities, and food H Stress, Isolation & Scapegoating Anger at immigrants Criminalization Environmental crisis Endless war 2
Median Adjusted Household Income by Race, 1967-2016 Racial income inequality persists $90,000 $80,000 Asian $81,431 $70,000 $60,000 $50,000 $40,000 White Latino $65,041 $47,675 $39,490 $30,000 $20,000 Black $10,000 1967 1977 1987 1997 2007 2016 *Data on Asian Americans can be mis-leading. Many data sets group together populations of Asian immigrants that have very different civic, economic and cultural characteristics. Source: Pew Research Center s Tabulations of 1968-2016 Current Population Survey Annual Social and Economic Supplement. 3
Median Annual Earnings for Women & Men, 1960-2015 The gender wage gap continues $50,000 $45,000 Men $51,212 $40,000 $35,000 $37,608 $40,742 $30,000 $25,000 $20,000 $15,000 $22,819 Women 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Notes: Annual earnings data include self-employed workers; weekly data are for wage and salary workers only. Annual earnings are for people 15 years old and older beginning in 1980 and people 14 years old and older as of the following year for previous years. Before 1989 annual earnings are for civilian workers only. Weekly earnings are for full-time civilian workers aged 16 and older in and are not restricted to full-year workers. Full-time is work for at least 35 hours per week, full-year for at least 50 weeks per year. Annual median earnings data are typically released in September by the U.S. Census Bureau. The annual average of weekly median earnings is usually released in February by the U.S. Bureau of Labor Statistics. Both data series are derived from the Current Population Survey. Adjustments for data from earlier years to 2015 dollars are computed on the basis of the Consumer Price Index Research Series (CPI-U-RS); U.S. Bureau of Labor Statistics <http://www.bls.gov/cpi/cpiursai1977-2015.pdf> (accessed September 2016). Source: Institute for Women s Policy Research, IWPR Fact Sheet #C446, updated September 2016. 4
Median Annual Earnings by Race and Gender, 2014 Race and gender disparities intersect $1.00 Men Women $0.75 $0.50 $0.25 White Latina/o Amerindian or Alaskan Native African American / Black Native Hawaiian & Pacific Islander Asian American* *Data on Asian Americans can be mis-leading. Many data sets group together populations of Asian immigrants that have very different civic, economic and cultural characteristics. Source: American Association of University Women (AAUW) http://www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/ 5
80% 70% 60% 50% 40% 30% 20% 10% 0% 12% Real Family Income Growth by Quintile & for Top 5% & Top 1%, 1979-2014 The income gap has expanded +3% +12% +26% +54% +78% $29,101 - $52,698 - $82,033 - $129,007 $230,030 Up to $29,100 $52,697 $82,032 $129,006 and up and up Bottom 20% Second 20% Middle 20% Fourth 20% Top 20% Top 5% +185% $423,090 and up Top 1% Source: For quintiles and top 5%: US Census Bureau Historical Income Tables, Table F-1 (Income Limits 1947-2014) and Table F-3 (Mean Income 1947-2014). For income threshold for top 1%: Income Inequality in the United States, 1913-1998 Emanuel Saez with Thomas Piketty, Quarterly Journal of Economics, updated to 2014 in Excel format, June 2015 (TabFig2014prel.xls). For percent growth: of top 1% Growing Together Growing Apart - Real Income Growth 1979-2012 by Colin Gordon <http://scalar.usc.edu/works/growing-apart-a-political-history-of-american-inequality/index>. 6
Real Family Income Growth by Quintile & for Top 5%, 1947-1979 This gap wasn t as large before 120% 100% +116% +100% +111% +114% +99% +86% 80% 60% 40% 20% 0% In 1979: up to $9,861 Bottom 20% $9,861 - $16,215 Second 20% $16,215 - $22,972 Middle 20% $22,972 - $31,632 Fourth 20% $31,632 - and up Top 20% $50,746 - and up Top 5% Sources: Analysis of Census Bureau data from The State of Working America 1994-95, Mishel, Lawrence and Bernstein, Jared, p. 37. Income ranges in 1979 dollars, from March 2000 Census Current Population Survey, Table F-1. 7
What s the Difference Between Income & Wealth? Think of a running stream that flows through a lake. Income is the money & assets that flow into the lake. Expenses are the money & assets that flow out. If there s anything left over, that s your Net Wealth. 8
Household Median Net Worth by Race, 2016 Net Worth is ASSETS minus DEBTS (What You OWN minus What You OWE) $171,000 $64,800 $17,600 $20,700 Black Latino All Other White Source: https://www.federalreserve.gov/econres/notes/feds-notes/recent-trends-in-wealth-holding-by-race-and-ethnicity-evidence-from-the-survey-ofconsumer-finances-20170927.htm 9
Median Wealth for Single Women by Race/Ethnicity & Single White Men, 2013 Gender- and race-based disparities limit women s ability to build wealth. $30,000 $28,900 $20,000 $15,640 $10,000 $0 $200 Black Women $100 Latina Women White Women White Men Source: Center for Global Policy Solutions <http://globalpolicysolutions.org/resources/wealth-gap-women-color/>. 10
Ownership of Household Wealth in the U.S., 2016 Top 1% 39.7% The total net worth of the top 1% = $33.4 Trillion 60.3% Bottom 99% Source: Billionaire Bonanza: The Forbes 400 and the Rest of Us by Chuck Collins and Josh Hoxie 11
Ownership of Global Wealth, est. 2014 Top 1% 48.2% 51.8% Bottom 99% Source: Global Wealth Report 2014. Credit Suisse Research Institute, October 2014. 12
The Power Shift Since the 1970s On the Rise Big Campaign Contributors Corporate Lobbyists Corporations Big Asset Owners CEOs Wall Street In Decline Popular Political Movements Voters Labor Unions Wage Earners Employees Main Street 13
Rule Changes Since the 1970s Policy changes reflect and reinforce the power shift. Minimum Wage: Unions: Trade: Taxes: Budget: Not raised to keep up with inflation & increased cost of living. Anti-union climate weakens the power & voice of workers. Global treaties benefit corporations, not workers or communities. Taxes descreased for the corporate elite and increased for workers. Public services cut. Corporate subsidies expand. Privatization: Government outsourcing plus no-bid contracts hurts taxpayers, workers, and public safety. Criminalization: People of color targeted, keeping racial divide in place. 14
The Minimum Wage and the Poverty Line, 1968-2015 The federal minimum wage does not keep pace with the rising cost of living. $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0 Minimum Wage $1.60 Poverty Line $1.71 94% of the poverty wage 1968 Minimum Wage $2.90 Poverty Line $3.56 81% of the poverty wage 1979 Minimum Wage $7.25 Sources: Living wage is calculated by dividing that year s poverty threshhold for a family of four by 2080 hours (52 weeks x 40 hours). Poverty threshholds for 1968 and 1979 from U.S. Census Bureau, Historical Poverty Tables, Table 1. Poverty threshholds for 2015 from the U.S. Census Bureau, Poverty thresholds by Size of Family and Number of Children. Poverty Line $11.60 63% of the poverty wage 2015 15
Percentage of the Workforce in a Union, 1930-2017 Anti-union policies weaken the power & voice of workers. 35% 30% 25% 20% 15% 10% 5% 1937: Wagner Act 1936: Sit-Down Strike in Flint, MI 1947: Taft-Hartley Act Manufacturing Declines in U.S. 1981: Reagan Breaks PATCO Right-to-work rules Expand to 25 states 2017: 10.7% Unionized 0% 1930 1940 1950 1960 1970 1980 1990 2000 2010 2017 Source: Bureau of Labor Statistics 16
Free Trade Treaties Help Corporations, Not Workers or Communities The aim of treaties such as NAFTA is to reduce barriers to trade. The worldwide result: Jobs shifted to low-wage countries Lower wages and living standards Weakened worker rights Environmental damage New trade & investment agreements, such as the Trans-Pacific Partnership (TPP)... permit foreign corporations operating in the U.S. to ignore U.S. laws that protect the environment and workers rights; threaten laws that protect community lending, health and safety, pay equity, pro-human rights government purchasing rules, public control of water & education, etc. Weakened economies in developing nations Cuts in social safety nets Rise in poverty FOR SALE 17
Structural Adjustment Restricts credit - no loans to small farmers Lowers tariffs & opens markets - cheap imports flood the marketplace Reduces government spending to pay back foreign debt - cuts welfare, education, health care, etc. - but continues support for the military Lowers wages & cuts price subsidies Privatizes state industries Deregulates financial markets 18
90% Top Marginal Income Tax Rates for the Top 1% and the Median Family, 1947-2018 Big tax breaks for the wealthy - No tax relief for working families 91% 80% 70% Top 1% 70% 60% 50% 50% 40% 40% 35% 37% 30% Median Family 31% 20% 10% 22% 19% 25% 28% 25% 22% 0% 1947 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2018 Source: Tax Foundation <http://www.taxfoundation.org/files/federalindividualratehistory-200901021.pdf>. & <https://taxfoundation.org/2018-tax-brackets/> 19
80% 70% 60% 50% 40% 77% Percent of Federal Tax Collections from Individuals & Corporations Taxes have shifted from corporations to individuals. 80% 84% 87% 87% 81% 84% 30% 20% 10% 21% 17% 12% 9% 10% 11% 7% 0% 1962 1970 1980 1990 2000 Corporations Individuals 2015 2018 Source: Congressional Budget Office, Revenues by Major Source, 1962 to 2018. (Note: 2018 projected April, 2018) 20
Privatizing Public Services Helps Investors, Hurts Consumers and Workers BAD IDEAS 21
1,600,000 U.S. State and Federal Prison Population, 1925-2015 Incarceration has increased substantially... 1,400,000 1,476, 847 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1925 1932 1942 1950 1958 1966 1974 1982 1990 1998 2006 2015 Source: The Sentencing Project. Fact Sheet: Trends in U.S. Corrections < http://sentencingproject.org/wp-content/uploads/2016/01/trends-in-us-corrections.pdf> 22
U.S. Incarceration Rates by Race, 2016 2000 1,608 People of Color are 26% of the U.S. population yet are roughly 60% of those in prison! 1000 856 324 0 African American Latino White Number of people incarcerated per 100,000 Sources: U.S. Department of Justice Note: In 2010 American Indian and Alaskan Native were at 895 per 100,000 people. 23
Deportations from the U.S., 1900-2013 Thousands 419.3 400 350 387.2 368.6 300 250 246.4 200 188.4 150 100 50 0 4.6 14.5 12.2 7.2 18.0 30.0 50.9 1900 1920 1940 1960 1980 1990 1995 2000 2005 2010 2012 2013 Source: Department of Homeland Security 24
Boosts on the Escalator to the Middle Class Home Mortgage Interest Deduction G.I. Bill: Free College FHA Loans Social Security Homesteading Laws 25
Blocks on the Escalator to the Middle Class Predatory Lending Home Mortgage Redlining Interest Deduction Immigration Quotas G.I. Bill: Free College Racist Images FHA Loans Bracero Program Social Security Jim Crow Laws Homesteading Laws Slavery Loss of Land 26
Our Economy Devalues Women s Work When women are employed doing work performed largely by men they EARN LESS than their male counterparts. The work of child-rearing, care for the elderly and work in the home is often UNPAID WORK and is performed largely by women. Women are concentrated in the LOW-WAGE WORKFORCE. Source: Race, Gender and Work by Julie Matthaei & Teresa Amott, 1999 27
Median Earnings by Race and Gender, 2014 Race and gender disparities intersect $1.00 Men Women $0.75 $0.50 $0.25 White Latina/o Amerindian or Alaskan Native African American / Black Native Hawaiian & Pacific Islander Asian American* *Data on Asian Americans can be mis-leading. Many data sets group together populations of Asian immigrants that have very different civic, economic and cultural characteristics. Source: American Association of University Women (AAUW) http://www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/ 28
Low-Wage Workforce by Gender and Race, 2013 76% Women 37% Women of Color Women are only 46% of the total workforce but make up THREE-QUARTERS of LOW-WAGE workers. Women of color are only16% of the total workforce but make up 37% of LOW-WAGE workers. Low-Wage Workforce Source: National Women s Law Center calculations based on IPUMS-CPS (2013). The low-wage worfkforce is defined as the 10 largest low-wage occupations with median wages of less than $10.10 per hour per BLS, Occupational Employment Statistics. 29
Unpaid Work by Gender in the U.S. Average number of hours per week 21 13 Women Men Unpaid work includes: Household management Caring for and helping household members Buying goods and services Cooking Cleaning Laundry & sewing Lawn and garden care Maintenance and repair Travel related to other unpaid work activities... Source: Notes: Pew Research Center analysis of 2012 American Time Use Survey, ATUS-X Ages 16 and older Paid-work related activities include time on the job, commute time, and any other time spent on job-related activities 30
The number of foreign-born people in the U.S. reflects push and pull factors such as job loss and immigration quotas. Millions 40 Total Number of Foreign-Born in the U.S. 1870-2010 36.7 35 30 28.4 25 20 15 10 5 13.6 14.0 14.3 10.4 11.7 10.4 5.6 6.7 9.3 9.7 9.6 14.1 19.8 0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Source: U.S. Census Bureau. 31
Percent of Foreign-Born in the U.S. 1870-2010 The percentage of foreign-born people in the U.S. reflects push and pull factors such as job loss and immigration quotas. 15% 12% 14.4 13.3 14.8 13.6 14.7 13.2 11.6 10.4 12.7 9% 6% 8.8 6.9 5.4 4.7 6.2 7.9 3% 0% 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Source: U.S. Census Bureau. 32
Our Theory of Change: Social Movements 33
Principles of a Fair Economy H Equity in all dimensions (race, class, ethnicity, gender, etc.) H Solidarity and Cooperation H Political & Economic Democracy H Sustainability H Pluralism and Diversity H Accountability H Respect & Dignity for People and Planet 34
Strategies for Building a Fair Economy H Educate & Change the Conversation H Campaign to Build Power & Change the Rules H Connect the Dots and Build a Movement 35
We Need New Rules to Reduce Wealth & Income Inequality Lift the Floor for Lower Income People H Establish Living Wage standards H Raise the minimum wage H Invest in job creation & training H Increase the supply of affordable housing Level the Playing Field for Everyone H Fair taxes that treat income from investments and work the same H Postal banking services H Medicare for All H Trade policies that benefit wage-earners, consumers, & the environment H Quality education as a Constitutional right Address the Concentration of Wealth and Power H Progressive taxation of wealth and income H Reduced subsidies for excessive CEO pay H Campaign finance reform to get big money out of politics H Accountability for corporations receiving public subsidies 36
What You Can Do Today Educate Yourself and Others H Host a UFE Popular Economics Education workshop. H Learn to lead UFE workshops. H Educate yourself look at the resources on our list. Influence the Media H Write articles or letters to the editor. H Organize a writers group. H Stage a flash mob creative action. Build Power H Use your religious congregation as an organizing base. H Join or support a labor union. H Get involved in coalitions or civic groups. Support United for a Fair Economy H Make a donation and become a UFE member. H Encourage friends and colleagues to join. H Organize a fundraising house party. H Help us with outreach. Join Campaigns to Change the Rules H Support progressive tax proposals, such as the Robin Hood Tax. H Support local Living Wage campaigns and the Fight for $15. 37
Economy Quiz 1. How much larger is the total compensation for the McDonald s CEO than the average McDonald s worker?: a) 408 times larger b) 100 times larger c) 347 times larger 6. On average White women earn 81 cents to every dollar earned by White men. How much do Latina women earn compared to White men? a) 76 cents b) 65 cents c) 59 cents 2. How does the current income gap between White and Black families compare to the gap in 1967? a) The same b) It s slightly smaller today c) It s larger today 3. In 1990, the minimum wage was $3.80 an hour. In 2009, it increased to $7.25 an hour. If the minimum wage had gone up with productivity, what would it be now? a) $8.15 an hour b) $11.35 an hour c) $18.85 an hour 4. The successful candidates for U.S. Senate in 2016 spent an average of how much money on his or her Senate campaign? a) $1 million b) $5.2 million c) $10.4 million 7. Historically, what was the highest marginal tax rate on the top 1% in the United States? (The top marginal income tax rate is paid on just the amount of income above the cut-off for the top bracket.) a) 35% b) 92% c) 70% 8. According to the Social Security Administration how much money do undocumented immigrants pay into social security? (A benefit they are ineligible to receive.) a) $700 million b) $13 billion c) $2 billion 9. The richest eight people own as much wealth as how much of the global population? a) The poorest 20% b) The bottom third c) The bottom half 5. Net worth is one s assets (what you own) minus debts (what you owe). In 2013, the median net worth for White households was $141,900. What was the median net worth for African American households? a) $11,030 b) $35,800 c) $102,300 10. How powerful are we if we work together for a fair economy? a) Kinda powerful, I guess. b) Not very, if you think about it. c) Incredibly powerful, let s do this! A 62 Summer St., 2nd Fl., Boston, MA 02110 www.faireconomy.org info@faireconomy.org 617-423-2148
Bottom Quintile $0-29,100 B
Second Quintile $29,101-52,697 C
Middle Quintile $52,698-82,032 D
Fourth Quintile $82,033-129,006 E
Top Quintile $129,007 and up F
Top 5% $230,030 and up G
Top 1% $423,090 and up H
GOVERNMENT BOOSTS AND BLOCKS TO BUILDING WEALTH 62 Summer St., 2nd Fl., Boston MA 02110 www.faireconomy.org Boosts Pre 1776 Land Grants to Colonists Indian Land Thefts 1830 Indian Removal Act 1865, 1868 13 th and 14 th Amendments 1849 Gold Rush 1790 Land Claims 1862 Naturalization 1853 Homestead Act Preemptive Acts 1776 Acts Civil War Open Doors to European Immigration 1887 Allotment Act 1893 Hawai i Annexed 1865-69 Freedmen s Bureau 1913 Home Mortgage Interest Deduction WW I 1934 Indian Reorganization Act 1935 New Deal Federal Housing Loans Social Security 1944 Labor Rights GI Bill Colonial Early US 1840s 1850s 1860s 1870s 1880s 1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s Great Depression WW II 1952 Asian Naturalization 1953 Tribal Termination 1962 Cuban Refugee Assistance Act 1964 Civil Rights Act & Affirmative Action Vietnam W ar 1968 Tribal Taxation 1977 Community Reinvestment Act 1986 Amnesty for Immigrants 1988 Japanese Reparations 1997 Tax Cuts for Asset Owners Subprime Mortgage Bubble Election of Obama Blocks 1787 Slavery in Constitution 1824 Monroe Doctrine 1850 Fugitive Slave Law 1848 Mexican Land Loss 1845 1848 Annexation of Mexican Land Jim Crow Laws 1882 Chinese Exclusion Act & Other Asian Exclusions 1896 Plessy (Segregation Legal) 1898 Annexation of Puerto Rico 1935 FHA Redlining 1919 English Only Laws 1924 1943 US Border Bracero Patrol Program 1960 Farm Loss Due to USDA 1954 Operation Wetback 1965 Immigration Quotas 1994 NAFTA 1852 1953 Denial of Naturalization 1898 Possession of Philippines 1913 Alien Land Laws 1942-45 Japanese Internment I
PUSH & PULL FACTORS OF IMMIGRATION TO THE U.S. 11M 10,400,000 10M 9M 8,795,386 9,095,417 Number of Immigrants 8M 7M 6M 5M 4M 3M 2M 1M 0 151,824 1820s 599,125 1830s 1,713,251 1840s 2,598,214 1850s 2,314,824 1860s 7,338,062 5,735,811 5,246,613 4,493,314 4,107,209 3,687,564 3,321,677 2,812,191 2,515,479 1,035,039 528,431 14.4% 13.3% 14.8% 13.6% 14.7% 13.2% 11.6% 8.8% 6.9% 5.4% 4.7% 6.2% 7.9% 10.4% 1870s 1880s 1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 12.7% PUSH Factors Trends & Events Outside the U.S Britain repeals Passenger Acts 1827 Monroe Doctrine (1823) Irish Potato Famine Mexican- American War Treaty of Guadalupe Hidalgo (1848) Industrial Revolution in Europe Pogroms in Russia and Ukraine WW I Deportations of Mexicans WW II Korean War Vietnam War Structural Adjustment Programs U.S.-lead War on Drugs in Latin America U.S. Military Intervention in Central America Free Trade Agreements Slavery WW I Great Depression WW II Free Trade Agreements PULL Factors Trends, Events, Policies & Laws Inside the U.S Indian Civil War Homestead Act (1862) 14th Amendment (1868) Industrial Revolution in the U.S. J Bracero Program Displaced Persons Act 1948 Embargo of Cuba Immigrant Act of 1965 OTHER LAWS & POLICIES AFFECTING MIGRATION TO THE U.S. Naturalization Act of 1790 Immigration Act of 1819 Chinese Exclusion Acts (1882-88) Contract Labor Law of 1885 Immigration Act of 1891 Immigration Act of 1907 Immigration Act of 1917 Emergency Quota Act of 1921 Immigration Act of 1924 Tyding- McDuffie Act 1934 McCarran- Walter Act of 1952 IndoChina Migration & Refugee Assistance Act 1975-77 Immigrant Reform & Control Act 1986 Prop. 187 1994 USA PATRIOT Act 2001 Illegal Immigration Reform & Immigrant Responsibilities Act 1996 Creation of ICE 2003 Financial Crisis & Great Recession 2008- J
Attitudes Toward Immigrants - 1 [Immigrants of this group] threaten nothing less than the possibility of a great and perilous change in the very fabric of our [Anglo-Saxon] race. If a lower race mixes with a higher in sufficient numbers, history teaches us that the lower race will prevail. K
Attitudes Toward Immigrants - 2 With respect to [these immigrants] we are committing cultural suicide. The barbarians at the gate will only need to give us a slight push, and the emancipated body of Western Civilization will collapse in a heap. L
Attitudes Toward Immigrants - 3 When the hordes of other lands are permitted to come here, as is the case daily; when ignorance, poverty, crime is allowed to land upon our shores... it is time that good men lifted their arms and sounded their voices against the abomination... Because it is every day weakening the strength, and destroying the character of the country. America can only be America by keeping it American. Americans must fill our offices, great and small... This is OUR land. We own it. M
Attitudes Toward Immigrants - 4 [Immigrants of this nationality] are a riffraff of desperate scoundrals, ex-convicts, and jailbirds. N
Attitudes Toward Immigrants - 5 [The immigrants of this nationality] are nothing but imported beggars and animals, a mongrel mass of ignorance and crime and superstition, as utterly unfit for society s duties as they are for the common courtesies and decencies of civilized life. O
Attitudes Toward Immigrants 1. Italian immigrants in New York City Senator Henry Cabor Lodge (1909) 2. Mexicans Congressman Tom Tancredo, In Mortal Danger - The Battle for America s Borders and Security (2006) 3. German and Catholic immigrants The American Crusader (1854) 4. Russians, Hungarians, Poles, Italians, Greeks, and Asians NYC Police Commissioner Theodore Bingham (1908) 5. Irish The American Standard, a New Jersey newspaper (1859) P