IS ECONOMIC INEQUALITY ENDING THE AMERICAN DREAM? By Anne L. Schneider (full paper available at UUJAZ.org )

Transcription

1 IS ECONOMIC INEQUALITY ENDING THE AMERICAN DREAM? By Anne L. Schneider (full paper available at UUJAZ.org )

2 This Workshop Part I. Think about Income Inequality not just talking points, but facts Part II. Feel Tell your story of economic insecurity and challenge or try to imagine yourself without your job or livelihood Part III. Act -- What can you and your congregation do, now? What are social justice actions that challenge economic inequality?

3 Escalating Inequality. The End of the American Dream? Is income inequality really escalating, or is this just political hype?

4 Top 1% of Households: 20% of Income! The graph of the year P e r c e n t (Saez and Piketty pretax data, includes capital gains 50 years of increasing EQUALITY 35 Years of

5 And If That Isn t Convincing... P e r c e n t Top 10% of Households Get 50% of the Income! (Saez and Piketty data, includes capital gains; pre-tax)

6 Axis Title How Much Money Are We Talking About? $1,200,000 Average Annual Income, Top 1% and lowest 90% (Saez and Piketty data, adjusted to 2012 CPI-U) top 1 % bottom 90 % $1,000,000 $800,000 Top 1 % $600,000 $400,000 $200,000 The Other 90% $-

7 And, if you are still not convinced 16.0% Top 0.1% Wealth, U.S.: (stocks, bonds, all assets) 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

8 Inequality in Overall WEALTH, by Race 250,000 Inequality in Wealth is &*#*%^ (obscene) 200, , ,000 Everyone white black Hispanic 50,

9 Pay Gap, Women from

10 Arizona Is an Average State 0.25 Share of all income held by top 1%, in Arizona (Mark Franks data) average arizona 0

11 Axis Title AZ and CA top 1% of Income 0.3 Top 1% of Income, AZ and CA U.S. CA AZ

12 But, What s Wrong With Income Inequality? You really don t expect a capitalist country to try to equalize incomes, do you? No, but we do have principles!!

13 The Difference Principle Income inequality can be justified if it works to the advantage of everyone, especially the MOST disadvantaged (John Rawls) wa Rawls may not have been a member, but his memorial service was held in the UU church of Lexington Mass.

14 Does a Rising Tide Raise All Boats? i n c o m e $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Average pre-tax income, bottom 90%(Saez & Piketty CPI adj ) This is 90%!

15 A Closer Look: Poorest 20% Average Income Poorest 20% (CPS, CPI adjusted to 2012)

16 The Equal Opportunity Principle (Social Mobility) Rawls also said that income inequality is justified ONLY IF stations are open to all. Economic Justice has never meant Equal Incomes; but rather, TRUE, Equal Opportunity. Differences across race, gender are not just. Rags to Riches! Horatio Alger Jr. (He was a Unitarian.)

17 Social Mobility, Not Very Good! Is it Worse? Probability of Reaching Top 20% by Birth Cohort (Chettey, et al) Q1 Q2 Q3 Q4 Q5

18 Social Mobility in Arizona Phoenix 7.5 Tucson 7.1 Flagstaff 9.5 Yuma 10.8 Northeast 4.8 Probability of moving from lowest quintile to highest. Some areas are about 20.

19 Social Mobility in California San Francisco 11.2 Los Angeles 9.6 Portola (NE) 12.3 Sacramento 10.0 San Diego 10.0 Probability of moving from lowest quintile to highest. Some areas are about 20.

20 The Need Principle: No one should have surplus income until all persons have their basic needs met Official Poverty Rate (People), U.S. (Census, Current Population Survey)

21 Meeting Basic Human Needs Supplemental Poverty Rates (People), Arizona and U.S. arizona U.S.

22 The Proportionality Principle Plato The wealthiest should make no more than four times the poorest Aristotle No, it would be okay for the wealthiest to make 5 times as much as the poorest J.P. Morgan The CEO should not make more than 20 times the workers Peter Drucker 20 times is about right In the U.S. the most egalitarian period was the 1970s and the ratio was 20:1 (top 1% to poorest 20%) and by 2012, it is now 40:1.

23 Inequality Matters! Impacts Education Health Happiness

24 What? Me Worry? Piketty says, Income inequality will continue to escalate well into the 21 st century... Unless... Other leading economists say... The current level of income inequality is damaging the economy as a whole, including the recovery; capitalism cannot survive this level of inequality Political scientists say... The infusion of money into politics means that the government is unable to reverse policy directions Others: Income inequality is damaging to your health, to social capital, to the very fiber of our communities

25 Part II. Feel American Winter Tell your story of economic insecurity and challenge or try to imagine yourself without your job or livelihood. What has happen to you or someone in your family or someone you know?

26 Your Turn: Tell your story of economic insecurity and challenge or try to imagine yourself without your job or livelihood. What has happen to you or someone in your family or someone you know?

27 Part III. Act What can we DO about Economic Inequality? What can you and your congregation do, now? What are social justice actions that challenge economic inequality?

28 Masters of the Universe would Increase the top marginal tax rate (back to 75%) Greatly increase the inheritance tax Create a global progressive tax on wealth Overturn Citizens United (and take money entirely out of politics, clean elections for everyone) Curtail lobbying; full disclosure Banking, housing and Wall Street Reform

29 What can be done by ordinary people? Escalating Inequality is our UUA Congregational Study Action Issue of 2014, and will continue for four years. There is information on the UUA site with ideas about how to educate, inform, and activate your congregation on this issue.

30 Locally we can lead the way! Economics Take on the corporations (pressure them to pay a living wage) and to get out of ALEC Take on the banks (pressure them to reduce principal on underwater loans; to refinance student loans) Create public banks Take on local government (increase the minimum wage; put local funds into community or public banks)

31 Locally we can lead the way! Politics Increase political participation, stop voter suppression Take on American Legislative Exchange Council (ALEC) Strengthen clean elections, overturn Citizens United Stop harmful state legislation

32 Locally we can lead the way! Education Make higher education more affordable K-12 funding; support public schools

33 An Example of a Congregational Project Public Banking with Mountain Vista UU Congregation, Tucson, AZ and Arizonans for a New Economy

34 Arizonans For A New Economy

35 Arizonans For A New Economy

36 Arizonans For A New Economy

37 Arizonans For A New Economy

38 10. Finance Infrastructure Projects Use public funds to fix and build infrastructure making the state more competitive and safer. State banks can lend to local governments at lower rates, saving money.

39 9. Create Good-Paying Jobs Infrastructure jobs, research jobs, banking jobs, small business jobs will be created with investments locally.

40 8. Provide Low-Cost Business Loans Through community banks, public banks can back low-cost loans to local businesses, farmers and entrepreneurs, thus growing the economy.

41 7. Strengthen Community Banks As a wholesale bank, a public bank partners with community banks to make low-cost loans.

42 6. Offer Low-Cost Student Loans Low-cost student loans would open the doors of the universities to more students, strengthen the university system, create university jobs, and build the work force of the future.

43 5. Excuse/Refinance Personal Debt Excusing or refinancing personal debt at lower rates would help graduates with high-interest student loans who can t find good jobs and homeowners whose mortgages are underwater, and eliminate the need for pay day loans and credit cards to make ends meet.

44 4. Fully Fund Public Education Business leaders and education advocates say that the state needs an educated workforce to compete. Public bank profits could improve school conditions high quality schools are something businesses look for before moving to a state.

45 3. Foster University-based Spin-off Businesses Supplying research seed grants to scientists and start-up funds to new ideas/inventions keeps high-paying jobs and research spin-offs in the state.

46 2. Protect Taxpayer Funds from Wall Street Gamblers Public banks are safer than Wall St. banks. State banks invest locally and work with community bankers who know clients. They avoid risky investments.

47 1. Nonpartisan Economic Solution to Generate Revenue Public banks can help generate revenue and strengthen the economy by funding state infrastructure projects, providing high-paying jobs, and reducing personal debt, WITHOUT RAISING TAXES!

48 MVUU & Arizonans for a New Economy Partnership: UUJAZ connects activists with congregation Education on Public Banking within the congregation and the community Minister and activists meet with local state senator Senator talks with conservative colleague Three senators propose a feasibility study for a state bank in Arizona Bill dies in committee Education continues in congregations around the state Return again to the Legislature next year!

49 Your turn: Questions, Comments, Examples Actions/projects going on in your own congregation around Economic Inequality? PowerPoint slides are available at

50 Remember Do what you can, with what you have, from where you are! Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has. Margaret Mead